Industrial internet reduces costs without transforming profitability, concentrating gains in platform owners
Evidence
This seems unlikely, as nothing in the industrial internet program appears to radically transform manufacturing, but rather simply to reduce costs and downtime. Rather than improving productivity or developing new markets, the industrial internet appears to drive prices still further down and to increase the competition for market share, thereby exacerbating one of the main impediments to global growth. The platform owners will simply siphon off more of the revenue generated, leaving direct manufacturers with even less. — Nick Srnicek, Platform Capitalism, 93
Categorization
- XREF: Directly speaks to the reader’s interest: a contrarian rival claim to Zuboff-style accounts, arguing value extraction concentrates in platform owners even in manufacturing IoT. — connects to: The shift to platforms concentrates ownership rather than ending it — Nick Srnicek, Platform Capitalism, 78; Network effects embed monopoly tendencies directly into platform structure — Nick Srnicek, Platform Capitalism, 80