Abstract from the paper we discuss with the author during the episode:
Digital platforms have disrupted many sectors but have not yet visibly transformed highly regulated industries. This study of Big Tech entry in healthcare and education explores how platforms have begun to enter highly regulated industries systematically and effectively. We present a 4-stage process model of platform entry, which we term as “digital colonization”: (1) provision of data infrastructure services to regulated incumbents; (2) data capture in the highly regulated industry; (3) provision of data-driven insights; (4) design and commercialization of new products and services. We clarify platforms’ sources of competitive advantage in highly regulated industries and conclude with managerial and policy recommendations.
