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

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

Create Different
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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

How to empower
prior Business Models
with 38 business model patterns?

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 %

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

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
initial BM (focusing on customer
value) working & pivoting
on business growth stage
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

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

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

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

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

One More Thing

Brand New Innovation Toolbox
For creating shared value,
These tools are opened to public since June 2013
http://businessmodelzen.com
http://softideation.com

You may also like Business Pattern Game (Card)
1. Business Pattern Workshop (5hrs)
2. BPG (Business Pattern Game)
Facilitator Course (1day)

http://visionarena.co.kr
brad.cho@visionarena.co.kr
Contact Us
Homepage
e-Mail
skype brad.cho

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

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