ISM Professor Publishes Study on Commodity Traps and Platform Economies in Commodities

Professor Bernhard Koelmel, Chair of Strategic Technology and Innovation Management at ISM, has co-authored a paper in the Commodities journal titled "Navigating the Challenges of Commodity Traps and Platform Economies: An Assessment in the Context of the Northern Black Forest Region and Future Directions." Published in the September 2024 issue, this paper explores the challenges faced by automotive suppliers in the Northern Black Forest region due to the shift towards battery electric vehicles (BEVs). Using a VUCA (volatility, uncertainty, complexity, and ambiguity) framework, the paper analyzes the risks posed by platform economies, particularly the Mobility in Harmony (MIH) Consortium’s open platform approach. The findings suggest that while modularization and standardization efforts reduce costs, they also intensify competition and threaten the profitability of smaller suppliers. The paper concludes with strategic recommendations for suppliers to innovate and remain agile in this rapidly evolving market.

Read the full paper here.