March 2021 agricultural “platforms” in a digital era

THE EMERGENCE OF 
DIGITAL SOLUTIONS
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can be positive, if the value increases as users 
increase, or negative if the inverse is true— 
for instance, when too many users on the 
Platform increases searching costs or
decreases average quality of interactions.
3. They are digitally enabled. While some 
physical business models, like shopping malls, 
can have both of the characteristics listed above, 
they do not have the key differentiator of digital 
technology. This technology is a key driver of the 
transformative potential of Platforms because it 
allows them to aggregate high numbers of users 
and enable high volumes of interactions. Digital 
technologies enhance the positive network 
effects of these Platforms by enabling scale.
While all Digital Platforms enable interactions, 
academic and business literature further 
distinguishes between two primary types of 
Platforms. Transaction Platforms act as 
intermediaries for direct exchange of goods or 
services. These Platforms can facilitate different 
types of transactions—from product and service 
marketplaces to social networks to payment or 
investment Platforms. Innovation Platforms, 
on the other hand, provide the technological 
foundation on which third parties can develop their 
own digital products and services. Building on the 
literature available, we use the following taxonomy 
of Digital Platforms as a basis for this report. 
Figure 5: Types of Digital Platforms 
Notes: 
1. Platform serves as intermediary for direct exchange or transactions. Value driven by interactions; 
2. Platform serves as technological foundation upon which other firms develop complementary innovations
Sources: Cusumano, M., Gawer, A. and Yoffie, D. (2019). The Business Of Platforms; Fernandez Vidal, Maria (2019). Platform business models. 
CGAP.; ISF Advisors and RAF Learning Lab analysis