Two Approaches to Monetizing External Developer Platforms
Name
2025_0701_MonetizingExDPs_MockerSebastian.pdf
Size
308.4 KB
Format
Adobe PDF
Checksum (MD5)
dc0cd15bf3c851df82f55333be0e8bec
Author(s)
Mocker, Martin
Sebastian, Ina M.
Date Issued
July 17, 2025
Publisher
Cambridge, Mass.: Center for Information Systems Research, Sloan School of Management, Massachusetts Institute of Technology
Citation
Mocker, Martin and Ina M. Sebastian. “Two Approaches to Monetizing External Developer Platforms.” MIT CISR Research Briefing Volume XXV, no. 7 (July 2025). https://dspace.mit.edu/handle/1721.1/174847.
Series/Report no.
MIT CISR Research Briefing, Vol. XXV, No. 7
Abstract
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.
Subjects
Business Models
Ecosystems
Information Businesses
Partnering
Information Technologies
Platforms
Organizational Structure and Agility
Enterprise Architecture
Terms of Use
CC BY-NC 4.0 (Attribution-NonCommercial 4.0 International)
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