What is the difference between an open commerce protocol and an open commerce platform?
Answer
An open commerce protocol defines common technical rules that different systems can use to communicate. A commerce platform provides an operating environment through which discovery, transactions or other services occur. A platform can support an open protocol while still controlling recommendation algorithms, customer access, advertising inventory or fees.
Why this matters
Brands can assume that using an open technical standard protects them from platform dependence when the strategically important control may sit elsewhere.
What management should examine
- Separate technical interoperability from customer ownership.
- Evaluate economic control.
- Evaluate ranking or recommendation control.
- Evaluate switching costs.
What good looks like
Management evaluates platform dependence independently from whether the underlying protocol is open.
Related questions and resources
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