Platform Business Model

Systematic and repeatable errors in an AI system's outputs that create unfair outcomes for particular groups, typically arising from biased training data, flawed model design, or unrepresentative sampling. Algorithmic bias poses significant reputational, legal, and regulatory risks, and its identification and mitigation are core components of responsible AI governance.

The framework through which an organisation creates, delivers, and captures value. A business model defines the logic of how a company generates revenue, serves customers, and sustains competitive advantage.

The process of creating, refining, or transforming the fundamental way an organisation creates and captures value. Unlike product or process innovation, business model innovation changes the underlying logic of value creation — potentially disrupting entire industries.

A network of interconnected organisations, individuals, and resources that interact to create and distribute value collectively. Business ecosystems — comprising suppliers, distributors, customers, competitors, technology partners, and regulatory bodies — function as dynamic systems where the success of each participant depends on the health and performance of the whole.

Firms that provide specialist knowledge-based services such as consulting, engineering, IT services, legal advisory, and financial analysis. KIBS firms are characterised by high intangible asset intensity, with the majority of their enterprise value derived from human capital, client relationships, proprietary methodologies, and reputation.

The initial acquisition made by a private equity fund in a particular sector or sub-sector, intended to serve as the foundation for a buy-and-build strategy through subsequent add-on acquisitions. Platform companies are typically larger, more established businesses with strong management teams, scalable infrastructure, and a proven operating model.

An economic model in which businesses generate recurring revenue by providing ongoing access to products or services rather than one-time sales. The subscription economy elevates the importance of intangible assets such as customer relationships, brand trust, and product stickiness, which together determine retention and lifetime value.

A cybersecurity framework based on the principle that no user, device, or system should be automatically trusted, whether inside or outside the network perimeter. Zero trust requires continuous verification of identity and access rights for every request, micro-segmentation of network resources, and least-privilege access controls.

AI Valuation Methods for M&A and Due Diligence