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Information Technology, Platform-based Business Model (PBM) since the advent, traditional business models have become increasingly confused, transforming market reordering and business value creation. The PBM is built on an external platform. It consists of an extensible code base for software-based systems that provide. The task of the Platform Provider is to tune users and, to enable products and services, and therefore exchanges.
Traditional business models
PBM has, compared to traditional business models, the advantage to scale without high investments. Since they, in their role as intermediaries, do not produce or own the products they offer, costs such as, for instance, building and maintaining production facilities do not apply to them in the same manner as for traditional business models. Moreover, they possess advantages that as the ability to flexibly adapt to emerging trends, as well as the possibility to offer a wider range of products.
Digital contracts
From this issue, the new informs the distributed platform-based business model (DPBM) to base on blockchain technology. These business models are the indication of, new economy era, or “true” platform economy. In particular, it aims to overcome the problem of monopolies managing the platform. The idea is to replace these companies with self-contained digital contracts that can create a consensus among independent participants.
Governance Framework
The Governance Framework provides a mechanism for operational-level managers and employees to clearly understand and monitor each other’s expectations, goals, performance, risk appetite, and reporting obligations. In addition, these aspects need to be effectively communicated to stakeholders within the organization. Therefore, the Governance Framework is a “control system consisting of standard management methods within the governance framework tailored to the organization.” The corporate Governance Platform Development defines goals, guidelines, values, culture, responsibilities, and performance. Risk Management and Security Risk management is an integral part of effective corporate governance.
The security management plan
At the most senior level, the security plan should report to the board level regularly. In special cases, procedures are required to allow the Security Council to access the report to the Council.
Fair governance framework
To achieve fair governance, the framework must adhere to the following principles:
- Transparency: Despite the vast scope and potentially heterogeneous configuration of IoT systems, an open mechanism is needed to develop and enforce guidelines as part of governance.
- Proportional: At certain times, the IoT governance process will inevitably make decisions that go against the will of a particular user. Such decisions are made to maximize the overall usefulness of the system.
- Accountability: The IoT governance process is very long. Disputes over past decisions and business policies can occur at any time. Therefore, it is necessary to keep a verifiable record of the decisions and the factors that contributed to those decisions.
Final thoughts
To understand the new technology-driven form of Governance Platform Development, you need to rethink the traditional notions of platform governance. Applying the presented approach will increase your chances of better understanding and assessing platform-based governance. For asset tokenization and later, becomes even more important. Therefore, the blockchain-based platform is expected an emerging one in the future.
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