Realizing Platform Business Model Composability - An Object-based Approach

Originally published in February 2020 on the GrowthHQ Blog (now discontinued), this article is republished here as part of Bizcloud's open-source initiative, providing additional insights and context to the Bizcloud framework.

As technology continues to reshape industries, traditional business models face disruption from innovative approaches that harness new tools to create value. Three concepts leading this transformation are platform business models, composable business, and object-based composability. When combined, these ideas form a powerful framework for organizations aiming to excel in the modern economy, especially when leveraging cloud technology.

Understanding Platform Business Models

Platform business models have revolutionized the way companies create and capture value. Unlike traditional linear businesses that create value through a step-by-step process from raw materials to finished products, platforms facilitate value exchange between two or more interdependent groups, typically consumers and producers.

The core of a platform business model is its ability to create a network effect. As more users join the platform, its value increases for all participants. This self-reinforcing cycle can lead to rapid growth and market dominance. Examples of successful platform businesses include Uber, connecting drivers with riders, and Airbnb, linking property owners with travelers.

Key characteristics of platform business models include:

• Facilitation of exchanges between producers and consumers

• Network effects that increase value as more users join

• Scalability with minimal marginal costs

• A core transaction process consisting of connect, engage, commit, fulfill/consume, and compensate

The Concept of Composable Business

Composable business is an architectural approach that enables organizations to quickly adapt to changing market conditions by assembling and reassembling business capabilities. This concept is built on the idea that business components should be modular, flexible, and interoperable.

In a composable business, various elements of the organization - from technology systems to business processes - are treated as building blocks that can be easily rearranged to create new capabilities or respond to market changes. This approach allows for greater agility and resilience in the face of disruption.

Object-Based Composability: Enhancing Composable Business

Object-based composability takes the concept of composable business a step further by focusing on business objects rather than larger, pre-built components. This approach aligns closely with how businesses think about their operations and data, representing real-world entities like customers, orders, or products as digital objects with properties, behaviors, and relationships.

Key aspects of object-based composability include:

• Granular representation of business concepts

• Flexible combination and configuration of objects

• Alignment with business domain modeling

• Rapid adaptation to changing business needs without extensive recoding

Bringing It Together: Composable Platform Business Models

The fusion of platform business models, composable business, and object-based composability creates a powerful synergy. Composable platform business models leverage the network effects and scalability of platforms while incorporating the flexibility and adaptability of composable architecture and the granularity of object-based approaches.

This combination is particularly well-suited for utilizing cloud technology. Cloud platforms provide the necessary infrastructure to support the scalability and flexibility required by these advanced business models.

Key advantages of composable platform business models include:

• Rapid innovation through modular design and object-based composition

• Flexibility to adapt quickly to changing market conditions or customer needs

• Scalability supported by cloud-based infrastructure

• Resilience due to decoupled components and granular object-based architecture

The Role of Cloud Technology

Cloud technology plays a crucial role in enabling composable platform business models. It provides the necessary infrastructure to support the scalability, flexibility, and interconnectedness required by these models. Cloud platforms offer several benefits:

• Elasticity to scale resources based on demand

• Global accessibility supporting distributed operations

• Cost-efficiency through pay-as-you-go models

• Advanced capabilities like AI and machine learning as services

The Bizcloud Framework: Implementing Object-Based Composable Platform Models

The Bizcloud framework exemplifies how these concepts can be implemented in practice. It is a comprehensive, ontology-first, no-code application development and cloud service platform designed specifically for building enterprise-level blockchain-enabled business platforms.

Bizcloud is composed of a technology stack consisting of tools, intellectual property, template libraries, patterns, and methodologies. While each component of the stack has broader utility, the framework as a whole is specifically assembled for the purpose of creating platform business models using an object-based composable approach.

Key features of the Bizcloud framework include:

• No-code development environment leveraging object-based composability

• Ontology-first approach (MONJO) for accurate modeling of real-world business objects

• Automatic rendering of user interfaces based on metadata templates

• Support for blockchain-enabled business models

• Flexible composition of applications using business objects rather than pre-built components

By using Bizcloud's object-based approach, organizations can implement composable platform business models more effectively. This approach allows for more granular control over business logic, faster adaptation to changing requirements, and a closer alignment between technical implementation and business concepts.

As businesses continue to evolve in the digital age, composable platform business models, enhanced by object-based composability, offer a promising approach for creating value and achieving competitive advantage. By combining the network effects of platforms with the flexibility of composable architecture, the granularity of object-based approaches, and the power of cloud technology, organizations can build agile, scalable, and resilient businesses capable of thriving in an increasingly dynamic marketplace.

The shift towards these models represents not just a technological change, but a fundamental reimagining of how businesses operate and create value. As more organizations adopt this approach, we can expect to see continued innovation and disruption across various industries, driven by the power of object-based composable platform business models.

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Hi there!
I'm Jan Posthumus, co-founder of Bizcloud - an open-source framework revolutionizing platform business development. Together with Franco Benedetti, we're simplifying the complex world of data integration and platform architecture. Through The Data Utilitarian, I share insights from our decade-long journey, exploring the intersection of business models, technology, and data governance.

We are eager to engage with fellow technologists, architects, platform innovators, and business model designers to build a vibrant community for our open-sourced framework. Whether you're a seasoned developer, data practitioner, a business strategist, or simply curious about the future of platform development, we invite you to learn what we're about. And if our vision resonates with you, please join us in revolutionizing how platform businesses are built.

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