Valuing Digital Business Designs and Platforms: An Integrated Strategic and Financial Valuation Framework (Future of Business and Finance)

This book develops an interwoven framework for the strategic and financial valuation of digital business designs and platform companies which became game changers for a multitude of ecosystems in the 21st century. But, also incumbents of traditional industries are challenged by those digital natives and have therefore either to revitalize their business design or facing the risk to be marginalized. The business design twin of innovation is resilience to create lasting competitive advantage and capture value for the post-pandemic world of the 20s. The ultimate idea of the book rests on the hypothesis that only the combination of business design analytics - 10C Business Design and the 8 strategic levers of platform strength - with intense financial modeling - Reverse DCF - enables a true understanding of the competitive advantage and value of such business designs. Based on a tailored strategic-financial conceptual framework a set of high-profile, new case studies will highlight the working principles and application of the concept. Contents 1: Digital Business Designs and Platforms 1.1 Why and How Digital Business Designs and Platforms Shape the Twenty-First Century 1.2 A First Typology of Digital Initiatives, Digital Business Designs, and Platforms 1.3 A Three-Folded Scientific Framework to Evaluate Digital Business Designs and Platforms 1.4 Strategic Patterns of Digital Business Designs and Platforms 1.5 Decoding Strategic Value of Digital Businesses and Platforms: 10C Business Design 1.5.1 Competitive Strategy (CS) 1.5.2 Core Value Proposition (CV) 1.5.3 Customers and Markets (CM) 1.5.4 Customer Relationships (CR) 1.5.5 Channels (CH) 1.5.6 Core Assets (CA) 1.5.7 Core Capabilities (CC) 1.5.8 Co-operation Ecosystem (CE) 1.5.9 Cash Flow Model (CF) 1.5.10 Corporate Organization (CO) 1.6 Platform Definition, the Four Platform Elements, and Platform Patterns 1.6.1 Platform Definition 1.6.2 The Four Platform Elements 1.6.3 Platform Patterns and Taxonomy 1.7 Decoding Platform Value: The Eight Levers of Platform Value 1.8 Financial Valuation Patterns of Digital Business Designs and Platforms 1.9 Decoding Financial Value: Reverse DCF Concept References 2: Developing a COVID-19 Vaccine to Save the World 2.1 mRNA Platform as Breakthrough Sars-CoV-2 Vaccine Innovation 2.2 Decoding Strategic Value: BioNTech ́s 10C Business Design 2.2.1 The BioNTech/Pfizer Co-operation 2.2.2 Competitive Strategy and Purpose (CS) 2.2.3 Core Value Proposition (CV) 2.2.4 Customer and Markets (CM) 2.2.5 Customer Relationship (CR) 2.2.6 Channels (CH) 2.2.7 Core Assets (CA) 2.2.8 Core Capabilities (CC) 2.2.9 Core-Ecosystem Partners (CE) 2.2.10 Corporate Organization (CO) 2.2.11 Cash Flow Model (CF) 2.2.12 10C Business Design Canvas: BioNTech 2.3 Decoding Platform Value: The Novel mRNA Platform 2.4 Decoding BioNTech ́s Financial Value: Reverse DCF 2.4.1 Picture-of-the-Future Scenario: ``The Jo-Jo Deceleration ́ ́ 2.4.2 Steady State and Continuing Value 2.4.3 Scaling Period and Free Cash Flows 2.4.4 Enterprise and Equity Value of BioNTech Embedded in the ``Jo-Jo Deceleration ́ ́ Scenario 2.4.5 Platform Bridging from COVID-19 Vaccines to an Immuno-oncology mRNA Powerhouse References 3: Ride-Hailing: Is Sharing the New Owning? 3.1 The New Alphabet of the Automotive Ecosystem 3.2 Decoding Strategic Value: Uber ́s 10C Business Designs 3.2.1 Competitive Strategy and Purpose (CS) 3.2.2 Core Value Proposition (CV) 3.2.3 Customer and Markets (CM) 3.2.4 Customer Relationship (CR) 3.2.5 Channels (CH) 3.2.6 Core Assets (CA) 3.2.7 Core Capabilities (CC) 3.2.8 Core-Ecosystem Partners (CE) 3.2.9 Corporate Organization (CO) 3.2.10 Cash Flow Model (CF) 3.2.11 10C Business Design Canvas for Uber 3.3 Decoding Platform Value: Double-Sided Ride-Hailing Platforms 3.4 Will Network Bridging to Three-Party Food-Delivery Platforms and MandAs Save Ride-Hailing? 3.4.1 Merger Endgame and IPO ́s of Food-Delivery Platforms 3.5 Decoding Uber ́s Financial Value: Reverse DCF and the Hottest Question on Wall Street 3.5.1 Financial Diagnostics: Past VC Funding, IPO, and Post-listing Capital Market Performance 3.5.2 Framing with Peer Groups and Multiples 3.5.3 Pictures-of-the-Future Scenarios for Ride-Hailing, Food-Delivery, and Freight Platforms 3.5.4 The Picture-of-the-Future Tailored Steady-State and Continuing Value Perspective 3.5.5 A Revenue Scaling and Growth Model for the B2C Ride-Hailing and Food-Delivery Platforms 3.5.6 A Revenue Scaling and Growth Model for the B2B Freight Platform 3.5.7 The Revenue to EBITDA Conversion 3.5.8 Moving from Segment EBITDA to Corporate EBITDA and Free Cash Flows 3.5.9 Invested Capital and Cost of Capital 3.5.10 The Walk from Operating to Enterprise and Equity Value 3.5.11 Value Driver Sensitivity and Valuation Canvas References 4: The Streaming Revolution in Global Media and the Down of an Epic Battle 4.1 Streaming Endgame 4.2 Game Changer MandA Within the Media Ecosystem: Disney Acquires 21st Century Fox 4.3 Decoding Strategic Value: Netflix Versus Disney+ 10C Business Designs 4.3.1 Netflix 4.3.2 Competitive Strategy and Purpose (CS) 4.3.3 Core Value Proposition (CV) 4.3.4 Customer and Markets (CM) 4.3.5 Customer Relationship (CR) 4.3.6 Channels (CH) 4.3.7 Core Assets (CA) 4.3.8 Core Capabilities (CC) 4.3.9 Core-Ecosystem Partners (CE) 4.3.10 Corporate Organization (CO) 4.3.11 Cash Flow Model (CF) 4.3.12 10C Business Design Canvas: Netflix 4.3.13 Disney and Disney+ 4.3.14 Competitive Strategy and Purpose (CS) 4.3.14.1 Joint Business Design: Impact of TFCF Acquisition and Disney+ Streaming Platform 4.3.15 Core Value Proposition (CV) 4.3.15.1 Joint Business Design: Impact of TFCF Acquisition and Disney+ Streaming Platform 4.3.16 Customer and Markets (CM) 4.3.16.1 Joint Business Design: Impact of TFCF Acquisition and Disney+ Streaming Platform 4.3.17 Customer Relationship (CR) 4.3.17.1 Joint Business Design: Impact of TFCF Acquisition and Disney+ Streaming Platform 4.3.18 Channels (CH) 4.3.18.1 Joint Business Design: Impact of TFCF Acquisition and Disney+ Streaming Platform 4.3.19 Core Assets (CA) 4.3.19.1 Joint Business Design: Impact of TFCF Acquisition and Disney+ Streaming Platform 4.3.20 Core Capabilities (CC) 4.3.20.1 Joint Business Design: Impact of TFCF Acquisition and Disney+ Streaming Platform 4.3.21 Core-Ecosystem Partners (CE) 4.3.21.1 Joint Business Design: Impact of TFCF Acquisition and Disney+ Streaming Platform 4.3.22 Corporate Organization (CO) 4.3.22.1 Joint Business Design: Impact of TFCF Acquisition and Disney+ Streaming Platform 4.3.23 Cash Flow Model (CF) 4.3.23.1 Joint Business Design: Impact of TFCF Acquisition and Disney+ Streaming Platform 4.3.24 10C Business Design Canvas Pre- Versus Post-TFCF Transaction and Disney+ Streaming Platform 4.4 Decoding Platform Value: SVoD Entertainment Streaming Platforms 4.5 Decoding Netflix ́s Financial Value: Reverse DCF 4.5.1 Picture-of-the-Future Scenario ``The Streaming Gambit ́ ́ 4.5.2 Steady State and Continuing Value 4.5.3 Scaling Period and Free Cash Flows 4.5.4 Operating, Enterprise, and Equity Value of Netflix Embedded in ``The Streaming Gambit ́ ́ PoF 4.5.5 Valuation Canvas and Framing 4.6 Summary References 5: Airbnb: From Double-Sided Accommodation to Multi-sided Experience Platform? 5.1 Airbnb ́s Revolution as Global, Double-Sided Accommodation Rentals Platform 5.2 Decoding Strategic Value: Airbnb ́s 10C Business Design 5.2.1 Competitive Strategy and Purpose (CS) 5.2.2 Core Value Proposition (CV) 5.2.3 Customer and Markets (CM) 5.2.4 Customer Relationship (CR) 5.2.5 Channels (CH) 5.2.6 Core Assets (CA) 5.2.7 Core Capabilities (CC) 5.2.8 Core-Ecosystem Partners (CE) 5.2.9 Corporate Organization (CO) 5.2.10 Cash Flow Model (CF) 5.2.11 10C Business Design Canvas: Airbnb 5.3 Airbnb ́s IPO: Sailing on Capital Market Tailwinds 5.4 Decoding Platform Value: From Double-Sided Accommodation to Multi-sided Experience Platform 5.5 Decoding Airbnb ́s Financial Value: Reverse DCF 5.5.1 Short Term: Preparing for the Travel Rebound 5.5.2 Picture-of-the-Future Scenario: ``The Age of Connecting and Belonging ́ ́ 5.5.3 Steady State and Continuing Value 5.5.4 Scaling Period and Free Cash Flows 5.5.5 Airbnb ́s Enterprise and Equity Value of ``The Age of Connecting and Belonging ́ ́ Scenario 5.5.6 Valuation Canvas, Framing, and Summary References