Business Model Navigator

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.

• 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 Glossary All business model patterns at a glance Further reading