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[News] "Platform Economy and Shared Economy"
Regardless of the type, many companies expect and want to become platform companies. The 'platform' dictionary means a four-meter stand that lifts a barbell from a weightlifting angle, either on a train ride or in an athletic field, and a five to ten-meter-high stand in diving. But in reality, platform means "platform enterprise" in our lives, and we share the perception that becoming a platform company can benefit a lot. In Korea, Naver and Kakao are representative platform companies, and in the U.S., Google and Facebook can be categorized as platform companies.
So how do we connect these platform companies, or platform economies and shared economies? Before we talk about the link between a shared economy and a platform economy, let's take a closer look at the platform economy.
According to Choi Bae-geun, economics professor at Konkuk University, leading the platform economy is a result of business logic, but there is no systematic consideration for social innovation. The proliferation of platform business models, or platform economies, starts with the IT revolution and dotcom companies in the past. Choi claims that some dotcom companies have evolved into platform business models with the support of the market, and that the formation of big data and artificial intelligence and blockchain are driving further progress in recent years.
Platforms that have evolved since the IT revolution into 'de-materialization of economic and economic growth' beyond economic service have been shown to favor liquidity and bias. For example, as seen in coded ideas and content, the initial production cost of intangible goods can be buried and delivered around the world without additional production costs and additional shipping costs, resulting in lower unit costs and higher profitability as sales increase. Most importantly, the more market users, the more attractive the market is, the more companies develop into a single 'platform' and the digital ecosystem becomes, when a certain size is reached, the greater the user's experience is, the greater the user's ability to meet various needs, and the smaller the incentive for the user to leave the platform, allowing the digital ecosystem to dominate most of the user's attention, time and value.
The problem of market concentration on these platforms is that even if the value is created by co-creation (cooperative production), the monopoly's harm—the market failure—is inevitable if the market is left to the market for these created digital intangible goods. Therefore, the 'universal dilemma' can be solved by actively inducing and expanding participants in market transactions, and the best way to do so is to create demand, because there is relatively confidence among consumers who share the same goal. And at the same time, it's also possible to maximize sales in a supplier-led way, such as emphasizing corporate social responsibility.
In that sense, the 4th Industrial Revolution, based on a completely different technology, is expected to change not only in the emergence of new industries, but also in the way we distribute and produce products, as we are forced to develop a new society that adapts to new technologies. One of the characteristics of this distribution and production is the shared economy. The aforementioned 'social trust' can also address the negative effects of platform companies in a shared economy where consumers and producers are not separated.
In order for this social evolution to take place, it must be accompanied by revolution in the curriculum, new social norms, reciprocal economics, autonomous democracy, and so on. And the combination of a blockchain platform and social innovation will ensure a broad range of people with the lowest income and the least purpose. Purpose here refers to the opportunity to relate to others through work and make meaningful contributions.
We learned about platform economy and shared economy. Many people misunderstand the fragmentary phenomena of a shared economy as a whole. Shared economy is not just one economic phenomenon. The boundaries between consumers and producers can be the cornerstone of a new economic society. I think that the extent to which you can imagine depends on the shared economy and the future of society.
The above article is based on the article written by Choi Bae-geun, economics professor at Konkuk University, in the article "Meeting Shared Economy and Fair Economy, and Discussing the Promotion of Shared Platform Companies."
Regardless of the type, many companies expect and want to become platform companies. The 'platform' dictionary means a four-meter stand that lifts a barbell from a weightlifting angle, either on a train ride or in an athletic field, and a five to ten-meter-high stand in diving. But in reality, platform means "platform enterprise" in our lives, and we share the perception that becoming a platform company can benefit a lot. In Korea, Naver and Kakao are representative platform companies, and in the U.S., Google and Facebook can be categorized as platform companies.
So how do we connect these platform companies, or platform economies and shared economies? Before we talk about the link between a shared economy and a platform economy, let's take a closer look at the platform economy.
According to Choi Bae-geun, economics professor at Konkuk University, leading the platform economy is a result of business logic, but there is no systematic consideration for social innovation. The proliferation of platform business models, or platform economies, starts with the IT revolution and dotcom companies in the past. Choi claims that some dotcom companies have evolved into platform business models with the support of the market, and that the formation of big data and artificial intelligence and blockchain are driving further progress in recent years.
Platforms that have evolved since the IT revolution into 'de-materialization of economic and economic growth' beyond economic service have been shown to favor liquidity and bias. For example, as seen in coded ideas and content, the initial production cost of intangible goods can be buried and delivered around the world without additional production costs and additional shipping costs, resulting in lower unit costs and higher profitability as sales increase. Most importantly, the more market users, the more attractive the market is, the more companies develop into a single 'platform' and the digital ecosystem becomes, when a certain size is reached, the greater the user's experience is, the greater the user's ability to meet various needs, and the smaller the incentive for the user to leave the platform, allowing the digital ecosystem to dominate most of the user's attention, time and value.
The problem of market concentration on these platforms is that even if the value is created by co-creation (cooperative production), the monopoly's harm—the market failure—is inevitable if the market is left to the market for these created digital intangible goods. Therefore, the 'universal dilemma' can be solved by actively inducing and expanding participants in market transactions, and the best way to do so is to create demand, because there is relatively confidence among consumers who share the same goal. And at the same time, it's also possible to maximize sales in a supplier-led way, such as emphasizing corporate social responsibility.
In that sense, the 4th Industrial Revolution, based on a completely different technology, is expected to change not only in the emergence of new industries, but also in the way we distribute and produce products, as we are forced to develop a new society that adapts to new technologies. One of the characteristics of this distribution and production is the shared economy. The aforementioned 'social trust' can also address the negative effects of platform companies in a shared economy where consumers and producers are not separated.
In order for this social evolution to take place, it must be accompanied by revolution in the curriculum, new social norms, reciprocal economics, autonomous democracy, and so on. And the combination of a blockchain platform and social innovation will ensure a broad range of people with the lowest income and the least purpose. Purpose here refers to the opportunity to relate to others through work and make meaningful contributions.
We learned about platform economy and shared economy. Many people misunderstand the fragmentary phenomena of a shared economy as a whole. Shared economy is not just one economic phenomenon. The boundaries between consumers and producers can be the cornerstone of a new economic society. I think that the extent to which you can imagine depends on the shared economy and the future of society.
The above article is based on the article written by Choi Bae-geun, economics professor at Konkuk University, in the article "Meeting Shared Economy and Fair Economy, and Discussing the Promotion of Shared Platform Companies."