The Business Model Navigator: 55 Models That Will Revolutionise Your Business
©2015 |FT Publishing International |
Oliver Gassmann, St Gallen University
Karolin Frankenberger, St Gallen University
Michaela Csik, St Gallen University
©2015 |FT Publishing International |
A strong business model is the bedrock to business success. But all too often, we fail to adapt, clinging to outdated business models that are no longer delivering the results we need.
The brains behind The Business Model Navigator have discovered that just 55 business models are responsible for 90% of our most successful businesses. These 55 models – from the Add-On model used by Ryanair to the Subscription model used by Spotify – provide the blueprints you need to revolutionise your business, spark innovation and drive powerful change.
As well as providing a practical framework for adapting and innovating your business model, this book also includes each of the 55 models in a quick-read format that covers:
“An excellent toolkit for developing your business model.”
Dr Heinz Derenbach, CEO, Bosch Software Innovations
1. The Business Model Navigator
The logic of business models
The age of business model innovations
Elements of a business model
Challenging industry thinking
2. Business Model Navigation Principles
Know this: Creative imitation and the role of recombination
Initiation: Analyze your environment
Ideation: adapting patterns
Integration: Shaping your business model
Implementation: Realizing your plan
3. Change Management
Defining your line of attack
Defining structures, processes, and goals
Culture as a change-driver
PART II: The 55 Business Model Innovation Patterns
1 ADD-ON – Charge for Extras
2 AFFILIATION – Partner Success = Own Success
3 AIKIDO – Convert Competitors’ Strengths to Weaknesses
4 AUCTION – Going once, going twice… sold!
5 BARTER – By-Products as a Bonus
6 CASH MACHINE – “Coining” Money with Negative Working Capital
7 CROSS SELLING – Two Birds with One Stone
8 CROWDFUNDING – Swarm Financing
9 CROWDSOURCING – Outsourcing to Swarms
10 CUSTOMER LOYALTY – Rewards for Enduring Loyalty
11 DIGITIZATION – Digitizing Physical Products
12 DIRECT SELLING – Skipping Middlemen
13 E-COMMERCE – Online Transparency and Cost Reductions
14 EXPERIENCE SELLING – Emotionalizing Products
15 FLAT RATE – Unlimited Consumption at a Fixed Price
16 FRACTIONAL OWNERSHIP – Share Ownership and Use Efficiently
17 FRANCHISING – One for All and All for One
18 FREEMIUM – Free Basic and Paid Premium Versions
19 FROM PUSH-TO-PULL – Customers Create a Maelstrom to Attract Value
20 GUARANTEED AVAILABILITY – Product Access is a Certainty
21 HIDDEN REVENUE – Separating Revenues from Customers
22 INGREDIENT BRANDING – Brand-in-Brand
23 INTEGRATOR – Value Added Through Integration
24 LAYER PLAYER – Layer Specialist
25 LEVERAGE CUSTOMER DATA – Varied Use of Customer Data
26 LICENSE – Commercializing Intellectual Property
27 LOCK-IN – High Switching Costs Force Loyalty
28 LONG TAIL – Little and Often Fills the Purse
29 MAKE MORE OF IT – Multiply Competencies outside Your Core Business
30 MASS CUSTOMIZATION – Off the Rack Individualism
31 NO FRILLS – Everything, Except Expensive
32 OPEN BUSINESS MODEL – Leverage Collaborative Value Creation
33 OPEN SOURCE – Creating a Free Solution Together
34 ORCHESTRATOR – Direct the Value Chain
35 PAY PER USE – Consumption-Based Fees
36 PAY WHAT YOU WANT – What is its Worth to You?
37 PEER-TO-PEER – From Person to Person
38 PERFORMANCE-BASED CONTRACTING – Results-Based Fees
39 RAZOR AND BLADE – Bait and Hook
40 RENT INSTEAD OF BUY – Purchase a Temporary Right to Use
41 REVENUE SHARING – Split Symbiotic Returns
42 REVERSE ENGINEERING – Quickly Learn from Competitors
43 REVERSE INNOVATION – Learn from Quick and Dirty Solutions
44 ROBIN HOOD – Take from the Rich and Give to the Poor
45 SELF-SERVICE – Working Customers
46 SHOP-IN-SHOP – Piggy-Backing
47 SOLUTION PROVIDER – One Stop Shop
48 SUBSCRIPTION – Subscribe to Services
49 SUPERMARKET – Huge Selection, Tiny Prices
50 TARGET THE POOR – Customers at the Base of the Earnings Pyramid
51 TRASH-TO-CASH – Monetize Garbage
52 TWO-SIDED MARKET – Attract Indirect Network Effects
53 ULTIMATE LUXURY – More for More Strategy
54 USER DESIGNED – Customers Become Inventive Entrepreneurs
55 WHITE LABEL – Own Brand Strategy
PART III: Appendix
All business model patterns at a glance
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Prof. Dr. Oliver Gassmann is professor of Technology Management at the University of St. Gallen, Switzerland, and Managing Director of the organisation. He is ranked one of the 5 top-most cited professors by the German Academic Association for Business Research and is one of the most influential economists in Germany, as well as one of IAMOT’s top 45 researchers worldwide.
Dr. Karolin Frankenberger is an assistant professor at the Institute of Technology Management, University of St.Gallen, Switzerland. Before joining the institute, she was a consultant at McKinsey & Company for several years, helping various clients in topics such as business model innovation and strategic change.
Michaela Csik works as an Innovation Manager at Hocim Technology Ltd, Switzerland. Previously, she was a Senior Consultant at the BMI-lab as well as a Research Associate at the Institute of Technology Management and at the Center for Design Research at Stanford University.
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