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

521 Pages·2015·9.19 MB·English

by  Oliver Gassmann

The Business Model Navigator
Testimonials
The Business Model Navigator™ has been successfully applied in a number of
companies to date. Here is what people who are already acquainted with our
methodology have to say: ‘Product innovations alone won’t be enough to ensure
our company’s continuing success; we want to encourage our people to turn
more of their attention to new types of business models. The Business Model
Navigator™ helps us to foster creativity and think in other dimensions.’
Dr Volkmar Denner, CEO Robert Bosch GmbH
‘The Business Model Navigator™ with its tools, strategy, and visualizations is a
perfect complement to the “Foresight and Innovation by Design” philosophy at
Stanford. They work in practice and in theory.’
Professor Dr Larry Leifer, Founding Director of the Stanford Center for Design
Research
‘The Business Model Navigator™ demonstrates impressively that sustainable
innovation is not created by inspiration alone, but can and should be
approached systematically building on shared experience and based on data.
Identifying patterns in fast changing environments and dynamically adapting
your companies’ business model to them will be crucial for success in any
industry.’
Dr Ralf Schneider, CIO Group, Allianz
‘BASF has been working for more than five years with the Business Model
Navigator™. It has led to concrete business concepts and also created a more
open mindset. We applied the methodology described in this book in various
environments and industries – and it worked fantastically!’
Dr Petra Bachem, VP Marketing and Sales Excellence, BASF
‘An aspiring field such as New Space really benefits from the Business Model
Navigator™ because the market will be defined by a variety of innovative
business models – going through all the possibilities is a real competitive
advantage!’
Dr Henning Roedel, NASA Ames Research Center
‘The Business Model Navigator™ has opened our eyes towards business model
thinking within the overall innovation process of the company. It brings together
commercial and technical leaders and improves the success rate of innovation.’
Stefan Borgas, President and CEO, ICL Group, Tel-Aviv
‘How would Amazon’s CEO conduct my business? Which new customer
segments would Robin Hood open up if he were in my place? The Business
Model Navigator™ helps us to break out of our own industry logic and opens
the way to a dazzling display of new ideas.’
Wolfgang Rieder, Managing Partner, Head of Advisory Business Unit
Switzerland, PricewaterhouseCoopers ‘In our Entrepreneurial Clinic we use the
Business Model Navigator™ to coach start-ups in Business Model Design. This
book goes far beyond other publications regarding concrete guidelines. It is a
must for every strategic entrepreneur.’
Prof Dr Dr Thomas Schildhauer, Director Entrepreneurial Research Lab and
Clinics, Berlin
‘Well researched and easy to apply in practice! That’s exactly what an excellent
management book should be! It is inspiring, enthusiastic and rule breaking!’
Prof Dr Ellen Enkel, Editor in Chief, R&D Management
‘The Business Model Navigator™ is an exceptionally helpful book, using a clear
concept and lively examples from real businesses. It is a must-read handbook for
managers who want to revolutionize their business.’
Dr Bernd Riggers, President and CEO, Lufthansa Technik Shenzhen Co. Ltd.
‘The Business Model Navigator™ offers a great opportunity to challenge our
habitual thinking concerning business models and revenue generation.
Challenging discussions with project teams and staff are thought provoking and
trigger collaborative development.’
Dr Ian Roberts, CTO, Bühler
‘The Business Model Navigator™ is a useful tool in defining exactly how and
why a business derives revenue from customers. Many nimble start-up
companies iterate and/or pivot in their business models (whether planned or
unplanned) at different phases in their development. At Datafeel.io, our business
model will no doubt change over time and it is helpful to know that it will reflect
our evolving value proposition. This demonstrates the reality that start-up
companies must remain resilient in order to better solve stakeholder problems
and optimize value.’
Robert Schultz, CEO and Founder Datafeel, Boston
‘For us at Bosch, too, it will be increasingly important in the future that in
addition to developing first-class products we use new business models. The 55
business models identified and described here provide an excellent toolkit for
developing our own business model, especially with respect to our future
presence in the Internet of Things and Services.’
Dr Heinz Derenbach, CEO of Bosch Software Innovations GmbH
‘The Business Model Navigator™ is a very effective way to help local businesses
challenge their dominant logic and develop new business models.’
Richard Walker, Business Manager, Queen’s University Belfast
‘The Business Model Navigator™ makes it possible for us to grasp the business
model as a whole and to work within a coherent system. The St. Gallen
methodology not only brings results, but broadens the mindset.’
Daniel Sennheiser, President, Strategy and Finance, Sennheiser
‘We leverage the Business Model Navigator™ for our Business Model
Innovation approach and discovered that it is a great methodology with high
practical relevance.’
Dr Ulrich Eisert, Research Manager, SAP (Switzerland)
‘All organisations from start-up to the largest organisation need to keep their
customers and innovation in full focus – The St. Gallen team’s Business Model
Navigator provides a very clear methodology to take the next quantum leap in
business.’
John Glynn, Managing Director, ShannonFerry Ltd.
‘I found that the Business Model Navigator™ has given me a very valuable new
approach to use when working with companies helping to define their future
direction and it really supports “thinking outside the box”. The Business Model
examples provide a very useful guide from which to select one or a combination
of patterns that can help to define new business models’
Mary Donovan, CEO, Caragh Consulting, Cork
‘We applied the Business Model Navigator™ in a 3-day workshop format with a
key customer. Apart from jointly developing a promising business model option,
the common experience has also strengthened our bonds for future intensive co-
operation.’
Dr Susanne Schröder, Innovation Manager, Siemens Energy Sector
‘Business innovation requires overcoming mental barriers. This excellent book
lays out a new way to think about new business models in the 21st century.’
Reza Vaziri, Managing Director 3M Germany
‘Working with the Business Model Navigator™ helped us not only to structure
our internal approaches better, but drove us also to analyse and understand our
competitors’ business models and therefore their and our position in the market
space.’
Dr Reiner Fageth, Management Board, CEWE Color
‘These patterns are a very powerful creativity method and a great tool to
generate a “business model thinking” attitude.’
Dr Angela Beckenbauer, Corporate Innovation Manager, Hilti
‘The Business Model Navigator™ provides a structured approach to the fuzzy
field of business model innovation. The 55 patterns make it easy to think about
alternative ways of running your business.’
Dr Michael Daiber, Innovation Agent, ABB Turbo Systems
‘These business models are an important source for inspiration and best practice
to create and implement radical innovations.’
Daniel Ledermann, Head of Incubation and Portfolio, Swisscom
‘Applying the Business Model Navigator™ helps in challenging today’s business
logic, opening up the solution space and creating a new mindset. We see this as a
prerequisite for future success.’
Dr Christoph Meister, Corporate Innovation Manager, Holcim
‘I have learned from others to appreciate successful business models, but I
learned from the St. Gallen team how to develop them myself.’
Thomas Moriarty, CEO, Firecomms, Cork
‘The world in 55 business models, at first sight unimaginable, but at second
glance an incredible source of inspiration to innovate one’s own business model
and carry it successfully into the future. Compulsory reading!’
Bernhard Klein, Director of Brand, Vienna Tourist Board
‘Working with the Business Model Navigator™ provides you with a broad
portfolio of ideas and structures for business models. It helps you to create new
and individual solutions for your specific business challenge.’
Stefan Strauss, Director, Business Development Service, MTU Friedrichshafen

Contents
Acknowledgements
Introduction
PART ONE How to drive business model innovation
1 What is a business model and why should it be innovated?
The age of business model innovations
The elements of a business model
The challenge of business model innovation
2 The Business Model Navigator
Creative imitation and the importance of recombination
Initiation: Analysing your ecosystem
Ideation: Adapting patterns
Integration: Shaping your business model
Implementation: Realising your plans
3 Managing change
Drive change
Define a plan of action
Define structures and goals
Build capabilities
PART TWO 55 winning business models – and what they can do for
you
1 Add-on
2 Affiliation
3 Aikido
4 Auction
5 Barter
6 Cash Machine
7 Cross-selling
8 Crowdfunding
9 Crowdsourcing
10 Customer Loyalty
11 Digitisation
12 Direct Selling
13 E-commerce
14 Experience Selling
15 Flat Rate
16 Fractional Ownership
17 Franchising
18 Freemium
19 From Push to Pull
20 Guaranteed Availability
21 Hidden Revenue
22 Ingredient Branding
23 Integrator
24 Layer Player
25 Leverage Customer Data
26 Licensing
27 Lock-in
28 Long Tail
29 Make More of It
30 Mass Customisation
31 No Frills
32 Open Business
33 Open Source
34 Orchestrator
35 Pay Per Use
36 Pay What You Want
37 Peer to Peer
38 Performance-based Contracting
39 Razor and Blade
40 Rent Instead of Buy
41 Revenue Sharing
42 Reverse Engineering
43 Reverse Innovation
44 Robin Hood
45 Self-service
46 Shop in Shop
47 Solution Provider
48 Subscription
49 Supermarket
50 Target the Poor
51 Trash to Cash
52 Two-sided Market