The Business Model Navigator : 55 Models That Will Revolutionise Your Business
55 Models That Will Revolutionise Your Business

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 But all too often, we fail to adapt, clinging to outdated business models that are no longer delivering the results we need.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:
- What it is
- Who invented it and who uses it now
- When and how to apply it
“An excellent toolkit for developing your business model.”

Dr Heinz Derenbach, CEO, Bosch Software Innovations

PART I

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

Promoting change

Defining your line of attack

Defining structures, processes, and goals

Building competencies

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

Glossary

All business model patterns at a glance

Further reading

Back Cover

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 and drive powerful change.

As well as providing a practical framework for adapting and innovating your business model, each of the 55 models are in a quick-read format, covering:

• What it is
• Who invented it and who uses it now
• When and how to apply it

'An excellent toolkit for developing your business model.'

Dr Heinz Derenbach, CEO, Bosch Software Innovations

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.