M. Fritz, et al. / International Food and Agribusiness Management Review Volume 7, Issue 1, 2004
infrastructure net for all platforms as standards are the connecting element for
transaction transmission.
Consequences from Platform Improvement Initiatives
Initiatives for the improvement of platforms concern the areas
■ gaining support by major market participants, the
■ improvement of trading functionalities, and the
■ expansion of value-added services.
All these initiatives focus on adjusting and tailoring the platforms to the
requirements of the agri-food sector and its companies. Gaining support by major
market participants enlarges the platform user group and adds to the platform
value (see above). Improving and adapting trade mechanisms and expanding value
added services according to sector requirements are prerequisites for the utilization
of platforms by agri-food companies. As all platform models follow these platform
improvement initiatives, these initiatives may be considered as basic platform
development approaches and evolvement strategies. The improvement initiatives
are also pursued by “Large consortia” platforms. As they realize their members’
interests, the exact tailoring of platform technology and features to agri-food
companies’ requirements resulting in an increased utilization of platform services is
even more likely.
A large number of participants on a platform as well as adapted trading features
and value-added services are prerequisites for the integration of platforms into the
agri-food sector. Consequently, platform improvement activities in these areas may
activate an embedding of tailored and adapted platforms into the sector. The fact
that “Large consortia” platforms standing for e-commerce initiatives of important
agri-food players follow these initiatives contributes that an intensified use of the
adapted platform infrastructure by agri-food industry players may be anticipated.
They in turn attract potential business partners to the platforms what enlarges the
integration of e-commerce in the entire agri-food sector.
Implications for Agri-food Sector Organization
Platform cooperation initiatives direct towards the emergence of an interconnected
e-commerce infrastructure or mega-hub. Platform improvement initiatives point
towards an integration of tailored trade platforms into the agri-food sector. Both
groups of development strategies will lead to an agri-food sector with an embedded
and integrated e-commerce infrastructure. This infrastructure will be a platform
network or mega-hub allowing for transaction transmissions across the interwoven
platform network (see fig. 4). As the platform network is backed by important and
powerful agri-food players, it will emerge as an integral infrastructure element of
the sector.
17
© 2004 International Food and Agribusiness Management Association (IAMA). All rights reserved.
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