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4by4 Business Model Patterns (ver1.0, english edition)

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The 4by4 Business Model Patterns is a framework to use more than 38 business patterns for empowering and tweaking prior business model to new one.
It applies the four arithmetical operations to business model components like Customer, Product, Channel, Profit Model.

Published in: Business

4by4 Business Model Patterns (ver1.0, english edition)

  1. 1. 4By4 Business Model Patterns (38 patterns to leverage your business model) 2014.8.30 (ver1.0) (since 2013.07.30 - ver0.8) Brad Cho VisionArena Co.,Ltd All Right Reserved http://Visionarena.co.kr
  2. 2. Create Different ‘4by4 Business Model Patterns’ can be used under the CCL’ You are free : to Share — to copy, distribute and transmit the work to Remix — to adapt the work to make Non commercial use of the work Under the following conditions: Attribution — You must attribute the work in the manner specified by the author or licensor (but not in any way that suggests that they endorse you or your use of the work). Share Alike — If you alter, transform, or build upon this work, you may distribute the resulting work only under the same or similar license to this one. Let me know your public URL of altered work. ( bmzen@visionarena.co.kr) This work is licensed under the Creative Commons Attribution-Non Commercial-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-sa/3.0/ . Thanks for inspiration. You can reference these books. - Business Model Generation by Alexander Osterwalder & Yves Pigneur - Seizing the White Space by A.G. Lafley and Mark W. Johnson - The Profit Zone by Adrian J. Slywotzky - Free by Chris Anderson - Not for Free by Saul J. Berman VisionArena Co.,Ltd All Right Reserved http://Visionarena.co.kr
  3. 3. How to empower prior Business Models with 38 business model patterns? VisionArena Co.,Ltd All Right Reserved http://Visionarena.co.kr
  4. 4. 4by4 Business Model Patterns What it is BM approach to leverage your business components with +,-,*,%. 1. Select business core component to leverage Customer Product Channel Profit Model 2. Arithmetical Operation applied to selected business component. + - X % VisionArena Co.,Ltd All Right Reserved http://Visionarena.co.kr
  5. 5. 4by4 Business Model Patterns 38 BM Patterns to Change Your Biz. Customer Product Channel Profit Model ver 1.0 + - X % Low Touch De-marketing Micro Segmentation Acquiring Non customers Bundling Unbundling Fractionalization Two-sided Market Brokerage Community Collaborative Consumption Mass Customization Collaborative Production De-composition Time-Space Sharing Right Sharing Complements Feature Composition Channel Aggregation Disintermediation Referral Channel per Installment Crowd Deal Purpose De-profit source Franchise Brand Expansion 3rd party Sponsored Cross-Subsidiary Membership Asset Fluidization Cost Minimization Licensing Freemium Time value Optimization Subscription Lease Financing This work is licensed under the Creative Commons Attribution-Non Commercial-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-sa/3.0/ . http://businessmodelzen.com VisionArena Co.,Ltd All Right Reserved http://Visionarena.co.kr
  6. 6. 4by4 Business Model Patterns When to use on idea exploration stage - use this framework to make new way of business not similar to industry average BM on product validation stage - use this framework to make initial BM (focusing on customer value) working & pivoting on business growth stage - use this framework to make proven BM to be optimized and growth-friendly Industry Average Model Business not Validated Yet Business with Low Growth Industry Divergent Model Validated Business Business with High Growth VisionArena Co.,Ltd All Right Reserved http://Visionarena.co.kr
  7. 7. 4by4 Business Model Patterns Customer + - X % Low Touch Acquiring Non customers These descriptions contain some of 38 BM Patterns only. Description Cases Using low-cost technologies or appropriate technology that are targeted at many customers with low-income Acquiring non customers who traditionally did not seem to be target of customer value proposition Kodak, Tata Motors De-marketing Precluding existing customers with low profitability or with low fitness with corporate values Sole de Circus, Yellow Tale Credit Card Companies Two-sided Market While at the same time to attract different customer groups, each group with each other to attract customers by taking advantage of the network effect of business seeking to enable Night Club, Alibaba, App Store, Game Console Collaborative Consumption Brokerage Mutual cooperation and respect between customers, evaluation takes place consumed by individuals falling in a shared economic services and social networks broadly based conceptual model may include joint purchasing Looking at each other in the middle of those models that connect to the brokerage and the broker is typically matched with the most information available for AirBnB, WhipCar, SideCar, SideTour Dating Service, Real Estate Brokerage Micro Segmentation A closer look at the existing customer base and customer issues, customer behavior, demography, and persona differentiated products to meet marketing approach Netflix, Amazon, Pandora, Hyundai Card VisionArena Co.,Ltd All Right Reserved http://Visionarena.co.kr
  8. 8. 4by4 Business Model Patterns Product + - X % Bundling De-composition Description Cases Bunched together more than one product or service to increase the value. It is not 1 +1 type temporary event, but ongoing competitiveness through structural coupling Nokia CWM, iPod-iTunes, Kindle Making differentiation by removing usual features or processes related with existing products or services. The user interface and experience in the design area are important. Nintendo Wii, MS Kinect, Square Mass Customization Simplifying several different types of products within the product group or product groups. Customer's own products or services, customized according to his/her preference to provide a tailored result Single Menu Diner Shop 4Foods, Chocri, MyMuesli, NikeID Collaborative Production Unbundling Dividing the process in a manner that provides usually it was not Fractionalization Making products with consumers based on community planning and design ideas, feedback, naming, pricing, pre-purchase and product R & D. provided separately. Units or size of a product or service are broken / modified for the way to market. (Unit or granular product configurations, single album, a variety of billing per page) Quirky, Local Motors, OpenIDEO, KickStarter Amazon CreateSpace, MVNO TotalBoox, Ala Carte, Cup-Meal VisionArena Co.,Ltd All Right Reserved http://Visionarena.co.kr
  9. 9. 4by4 Business Model Patterns Channel + - X % Channel Aggregation Description Cases Combining multiple distribution channels into one to enjoy better economy of scale and brand/user experience. Amazon Fresh, QookTV Skylife, Apple Store, Google Play Making the purchase price down by bypassing intermediaries for supply margins gaining a win-win effect. In recent years, it is used for the purpose of obtaining customer information, and also take advantage of the reaction. Disintermediation Dell, H&M, Uniqlo, Direct-to-Sell Co-op Referral Brokerage sales through partnerships. As a result, sales and revenue compensation occurred for the contracted program. Amazon A-Store, Google AdSense Channel per Purpose Dividing channels to sell or buy existing products and services which were not distinctive of distribution channels classified according to the different brands, offerings for sale. Dow Corning Xiameter VisionArena Co.,Ltd All Right Reserved http://Visionarena.co.kr
  10. 10. 4by4 Business Model Patterns Profit Model + X % Crowd Deal Description Cases Many customers as a group of more than a certain level of participation or disclose purchasing a single transaction method is being created (ex, crowdsourcing, crowd-funding) KickStarter, Kiva, Prosper, Quirky Cross-Subsidiary 3rd party Sponsored Products and goods, products and services, combined with each other become subsidiary side and money side to maximize the total revenue effect. 3rd party pays the costs of activities from other users’. It is usually seen at ad-based business. Gillette, Game Console, Mobile Subscription News Paper, Radio, Portal, Google Search, Youtube Freemium Products, Services feature set (Feature) split from various angles until a certain functions provided free of charge, and you pay through the payment induces separate function to use. Subscription The product that was being sold in a manner of monthly / yearly subscription form. Lease The product that was being sold turns into the form of hourly / daily / monthly / yearly rent method. Spotify, LinkedIn, DropBox, EverNote Netflix, Spotify, GameTap AirBnB, RedBox, Coway, Car Rental VisionArena Co.,Ltd All Right Reserved http://Visionarena.co.kr
  11. 11. One More Thing VisionArena Co.,Ltd All Right Reserved http://Visionarena.co.kr
  12. 12. Brand New Innovation Toolbox For creating shared value, These tools are opened to public since June 2013 http://businessmodelzen.com http://softideation.com VisionArena Co.,Ltd All Right Reserved http://Visionarena.co.kr
  13. 13. You may also like Business Pattern Game (Card) 1. Business Pattern Workshop (5hrs) 2. BPG (Business Pattern Game) Facilitator Course (1day) VisionArena Co.,Ltd All Right Reserved http://Visionarena.co.kr
  14. 14. http://visionarena.co.kr brad.cho@visionarena.co.kr Contact Us Homepage e-Mail skype brad.cho VisionArena Co.,Ltd All Right Reserved http://Visionarena.co.kr

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