Two approaches to monetizing external developer platforms
- To gain additional value from their digital platforms, some companies open them to external developers via APIs, thereby creating external developer platforms (ExDPs). Many companies struggle to monetize ExDPs, though. This briefing compares two distinct approaches to monetizing ExDPs: build-on, in which external developers create complementary solutions on top of the company’s platform; and build-in, in which external developers integrate capabilities from the company’s platform into their own freestanding applications, often combined with data from other companies’ ExDPs. Using case studies of Salesforce and Schneider Electric, this briefing explores the distinct value, requirements, and outcomes of each approach to guide companies in selecting their ExDP monetization strategy.
| Author of HS Reutlingen | Mocker, Martin |
|---|---|
| URL: | https://cisr.mit.edu/publication/2025_0701_MonetizingExDPs_MockerSebastian |
| Published in: | CISR research briefing |
| Publisher: | MIT Center for Information Systems Research |
| Place of publication: | Cambridge, MA |
| Document Type: | Working Paper |
| Language: | English |
| Publication year: | 2025 |
| Tag: | business models; information technologies; organizational Structure and Agility |
| Volume: | 25 |
| Issue: | 7 |
| Page Number: | 4 |
| DDC classes: | 650 Management |
| Open access?: | Nein |
| Licence (German): |  In Copyright - Urheberrechtlich geschützt |
