This the value proposition number of users who

This research was done to find ways to develop multi sided
business models from the existing business models which can be adopted by the
small and medium size enterprises which are now unable to adopt such a model due
to the lack of recourses they have. Their final objectives are to work with
managers about the influence of multi sided strategy to the growth and
profitability of the organization and help them to create a multi sided model
from their existing one sided model.

According to the research multi sided models and multi sided
platforms are linked because the multi sided models define and organize values
gained by the users of the multi sided platforms. A multi sided platform is a
technological system which creates a virtual market space for people engaged in
transactions. The value of a product is depended on direct network effects and
indirect network effects of the same sides. They suggest six steps to develop a
multi sided model from an existing one sided model. those are

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·        
setting up the platform- develop the information
infrastructure

·        
reformulating the value proportion- revising the
value proposition in order to target a new and wider customer group

·        
structuring and linking groups of complementary
customers- create several complimentary value proportions for user groups which
are interdependent

·        
opening the business model- creating and
capturing value to external actors 

·        
multiplying the niches- creating several value
propositions that target a large number of profitable market segments.

·        
structuring prices- free apart from the value
proposition number of users who by their number constitute a source of value.

 

They have introduced three phases to
implement the redesign of business models as multi sided models.

Phase 1: creating a technological
architecture to test the relationship between users and the platform.

Phase 2: reformulating the basic value
proposition and multiplying the niche market segments to expand the target user
groups that will be interested by the offer and opening product offerings to
attract new group of users.

Phase 3:  linking user groups and structuring the
revenue model

 

This research shows that using multi sided
platform to redesign a business model, having a multi sided perspective to reformulate,
extent and create a new complimentary value proposition and using the connection
of user groups to ?ll complementary expectations and de?nition of an
appropriate price structure are effective in this process.