This document introduces the St. Gallen Business Model Navigator methodology for innovating business models. It discusses how most companies fail to adapt their business models to changing environments, using examples like Kodak. The methodology is based on the idea that most new business models recombinate existing ideas and concepts.
It describes a 4-dimensional framework for analyzing business models involving the customer, value proposition, activities/resources, and financial model. The methodology involves 3 steps: 1) Analyzing the current business model 2) Generating new ideas by recombining 55 identified business model patterns 3) Evaluating and selecting new business model concepts. The methodology was tested successfully with several large companies and aims to help firms innovate their business models
Easily define & implement your Digital Transformation Strategy & Plan by leveraging this 10-step Template. Created by ex-McKinsey, Deloitte and BCG Consultants specialized in Digital Strategy, after more than 600 hours of work. Don’t reinvent the wheel. Download Now. To download the whole template, go to www.slidebooks.com.
The Road to Digital Maturity for Investment ManagersKurtosys Systems
Digital maturity is one way of gauging a company's level of success on their road to digital transformation; and there are many factors involved in assessing this. In this white paper we focus on five areas that, from our experience, play a vital role in theroad to digital maturity with investment managers in mind.
This is a preview of the Complete Business Frameworks Reference Guide/Toolkit. The full document can be downloaded here:
https://flevy.com/browse/business-document/complete-business-frameworks-reference-guide-644
The Complete Business Frameworks Reference Guide is a very comprehensive document with over 300+ slides--covering 50 common management consulting frameworks and methodologies (listed below in alphabetical order). A detailed summary is provided for each business framework. The frameworks in this deck span across Corporate Strategy, Sales, Marketing, Operations, Organization, Change Management, and Finance.
These frameworks and templates are the same used by top tier consulting firms, such as McKinsey, Bain, BCG, Booz, Monitor Group, Deloitte, Accenture, IBM, E&Y, LEK, AT Kearney, Roland Berger, Oliver Wyman, and others.
INCLUDED FRAMEWORKS & METHODOLOGIES:
1. ABC Analysis
2. Adoption Cycle
3. Ansoff Market Strategies
4. Balanced Scorecard
5. BCG Growth-Share Matrix
6. Benchmarking
7. Blue Ocean Strategy
8. Break-even Analysis
9. Business Unit Profitability
10. Economics of Scale
11. Environmental Analysis
12. Experience Curve
13. Cluster Analysis
14. Company & Competitor Analysis
15. Core Competence Analysis
16. Cost Structure Analysis
17. Customer Experience
18. Customer Satisfaction Analysis
19. Customer Value Proposition
20. Fiaccabrino Selection Process
21. Financial Ratios Analysis
22. Gap Analysis
23. Industry Attractiveness & Business Strength Assessment
24. Key Purchase Criteria
25. Key Success Factors (KSF)
26. Market Sizing & Share
27. McKinsey 7-S
28. Net Present Value
29. PEST Analysis
30. Porter Competition Strategies
31. Porter's Five Forces
32. Portfolio Strategies
33. Price Elasticity
34. Product Life Cycle
35. Product Substitution
36. Relative Cost Positioning
37. Rogers' Five Factors
38. Scenario Techniques
39. Scoring Models
40. Segment Attractiveness
41. Segmentation & Targeting
42. Six Thinking Hats
43. Stakeholder Analysis
44. Strengths & Weaknesses Analysis
45. Structure-Conduct-Performance (SCP)
46. SWOT Analysis
47. SWOT Strategies
48. Treacy / Wiersema Market Positioning
49. Value Chain Analysis
50. Venkat Matrix
The level of detail varies by framework, depending on the nature of the management model. Examples, templates, and case studies are provided.
This document provides an overview of digital transformation and its impact. It discusses how digital disruption is affecting various industries in waves. It also examines the relationship between organizations and their customers/markets as digital changes everything. Key aspects that are impacted include products/services, business models, and an organization's position in the value chain. The document outlines a framework for digital transformation, including understanding the environment, defining a vision and strategy, building the right organization, and establishing leadership and capabilities. The goal is to help organizations adapt and thrive in the digital world.
20 Business Model Innovations for SustainabilityCristóbal TeBe
This document provides an executive summary for a report on 20 business model innovations for sustainability. It begins by noting that while business model innovation has long been discussed, executing transformative changes can be difficult for companies. However, global trends are disrupting existing business models, making incremental changes insufficient. The utility industry is highlighted as facing a mounting crisis as its centralized model is disrupted by decentralized energy solutions. Some utilities are adapting by shifting from power sellers to renewable energy enablers through a product as a service model.
In this slide deck, David Skok talks through his 9 step process for B2B startups to get through product/market fit, and to then find a repeatable, scalable, and profitable growth process.
In David's experience some of the most fatal and expensive mistakes founders make is trying to skip steps. Understanding this roadmap will save you countless hours and potentially millions of wasted dollars.
Retail fulfillment—thinking local, acting local | Accentureaccenture
Discover how retailers serve customers and control costs by resetting traditional supply chain strategies to focus on fulfillment at the local level. Learn more: https://accntu.re/3hKnRDp
Easily define & implement your Digital Transformation Strategy & Plan by leveraging this 10-step Template. Created by ex-McKinsey, Deloitte and BCG Consultants specialized in Digital Strategy, after more than 600 hours of work. Don’t reinvent the wheel. Download Now. To download the whole template, go to www.slidebooks.com.
The Road to Digital Maturity for Investment ManagersKurtosys Systems
Digital maturity is one way of gauging a company's level of success on their road to digital transformation; and there are many factors involved in assessing this. In this white paper we focus on five areas that, from our experience, play a vital role in theroad to digital maturity with investment managers in mind.
This is a preview of the Complete Business Frameworks Reference Guide/Toolkit. The full document can be downloaded here:
https://flevy.com/browse/business-document/complete-business-frameworks-reference-guide-644
The Complete Business Frameworks Reference Guide is a very comprehensive document with over 300+ slides--covering 50 common management consulting frameworks and methodologies (listed below in alphabetical order). A detailed summary is provided for each business framework. The frameworks in this deck span across Corporate Strategy, Sales, Marketing, Operations, Organization, Change Management, and Finance.
These frameworks and templates are the same used by top tier consulting firms, such as McKinsey, Bain, BCG, Booz, Monitor Group, Deloitte, Accenture, IBM, E&Y, LEK, AT Kearney, Roland Berger, Oliver Wyman, and others.
INCLUDED FRAMEWORKS & METHODOLOGIES:
1. ABC Analysis
2. Adoption Cycle
3. Ansoff Market Strategies
4. Balanced Scorecard
5. BCG Growth-Share Matrix
6. Benchmarking
7. Blue Ocean Strategy
8. Break-even Analysis
9. Business Unit Profitability
10. Economics of Scale
11. Environmental Analysis
12. Experience Curve
13. Cluster Analysis
14. Company & Competitor Analysis
15. Core Competence Analysis
16. Cost Structure Analysis
17. Customer Experience
18. Customer Satisfaction Analysis
19. Customer Value Proposition
20. Fiaccabrino Selection Process
21. Financial Ratios Analysis
22. Gap Analysis
23. Industry Attractiveness & Business Strength Assessment
24. Key Purchase Criteria
25. Key Success Factors (KSF)
26. Market Sizing & Share
27. McKinsey 7-S
28. Net Present Value
29. PEST Analysis
30. Porter Competition Strategies
31. Porter's Five Forces
32. Portfolio Strategies
33. Price Elasticity
34. Product Life Cycle
35. Product Substitution
36. Relative Cost Positioning
37. Rogers' Five Factors
38. Scenario Techniques
39. Scoring Models
40. Segment Attractiveness
41. Segmentation & Targeting
42. Six Thinking Hats
43. Stakeholder Analysis
44. Strengths & Weaknesses Analysis
45. Structure-Conduct-Performance (SCP)
46. SWOT Analysis
47. SWOT Strategies
48. Treacy / Wiersema Market Positioning
49. Value Chain Analysis
50. Venkat Matrix
The level of detail varies by framework, depending on the nature of the management model. Examples, templates, and case studies are provided.
This document provides an overview of digital transformation and its impact. It discusses how digital disruption is affecting various industries in waves. It also examines the relationship between organizations and their customers/markets as digital changes everything. Key aspects that are impacted include products/services, business models, and an organization's position in the value chain. The document outlines a framework for digital transformation, including understanding the environment, defining a vision and strategy, building the right organization, and establishing leadership and capabilities. The goal is to help organizations adapt and thrive in the digital world.
20 Business Model Innovations for SustainabilityCristóbal TeBe
This document provides an executive summary for a report on 20 business model innovations for sustainability. It begins by noting that while business model innovation has long been discussed, executing transformative changes can be difficult for companies. However, global trends are disrupting existing business models, making incremental changes insufficient. The utility industry is highlighted as facing a mounting crisis as its centralized model is disrupted by decentralized energy solutions. Some utilities are adapting by shifting from power sellers to renewable energy enablers through a product as a service model.
In this slide deck, David Skok talks through his 9 step process for B2B startups to get through product/market fit, and to then find a repeatable, scalable, and profitable growth process.
In David's experience some of the most fatal and expensive mistakes founders make is trying to skip steps. Understanding this roadmap will save you countless hours and potentially millions of wasted dollars.
Retail fulfillment—thinking local, acting local | Accentureaccenture
Discover how retailers serve customers and control costs by resetting traditional supply chain strategies to focus on fulfillment at the local level. Learn more: https://accntu.re/3hKnRDp
Fundamentals of Designing, Building, & Implementing a Service Delivery CenterScottMadden, Inc.
ScottMadden recently partnered with APQC for a complimentary three-part webinar series focused on shared services.
This webinar session focused on the essential activities to plan, launch, and stabilize a new shared services operation including: critical success factors for your business case, top 10 implementation challenges, and three keys to post-launch success.
Innovation & Business Model & Business Model Canvas 2014Serdar Temiz
This document discusses business models and the business model canvas. It defines invention as a novel idea and innovation as the commercialization of that idea. The four main types of innovation are described as technology, process, product/service, and business model innovation. The business model canvas is introduced as a tool consisting of nine building blocks: customer segments, value proposition, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. The document provides examples and questions to consider for each block to help outline a business model.
Six stages of digital transformation by AltimeterRodd SL
The document outlines six stages of digital transformation that companies progress through as they adopt new technologies and adapt their business models to compete in a digital economy. Stage 1 is "Business as Usual," where companies maintain the status quo with their legacy processes and view of customers. Leadership resists change, departments work independently without collaboration, and digital literacy exists only in pockets without executive priority. The focus is on efficiency rather than customer empathy.
When you hear “digital” most people start to think about Google, Facebook or other technology companies. But now transforming into a digital company is the strategic objective for many companies across multiple sectors. We see digitisation as the driving strategy for many global business; GE’s strategy is to become the first digital industrial company and is moving its headquarters to Boston to be closer to MIT (Massachusetts Institute of Technology). Deutsche Bank wants to transform into a digital bank, and Sephora is digitising the world of beauty. The transformation is not just how these companies manage clients and deliver services through the web and smart phone apps, but back office processes, enhancing organisational agility, speeding up supply chains and recreating whole service offerings to make life easier or better for clients.
Object Oriented Business Capability Map - IIBA 2022 - Draft.pptxAustraliaChapterIIBA
Join IIBA® Melbourne as they host an online event specifically on how to develop business capability maps.
About this event
Ever wondered how to develop business capability maps? or perhaps you need a refresher?
Join Mohammad Mirkarimi Senior Business Architect at Capsifi and David Grindlay Principal Business Architect at Capsifi as they guide us through this session.
Captivated by art, science and business - Mohammad is trying to bring these three together. Moh is a drummer, a physics and biology enthusiast, and a business architect and analyst. He has studied Engineering, Business Management and Finance in academia. Also, equipped with IIBA, TOGAF and The Business Architecture Guild bodies of knowledge. Moh has worked as team member, leader and visionary in Management Consulting, Banking, Wealth, Insurance, Government, Telecom and Education industries.
With over 15 years of experience implementing software, David started his career as a business analyst in South Africa primarily in the financial services – insurance industry. In 2014 he moved over to Australia where he really started to observe the notorious gap between business strategies and project roadmaps as well as the downstream implications. More recently in his career, he gained broader exposure to other industries (Retail, Financial Services, Government and Hospitality) helping to structurally decompose business strategies, define the business landscape and help project teams (Business and Technical) realise and align on their common purpose. Today, David considers himself a Business Architect, doing whatever it takes to help companies realise their vision.
This session will contain two parts:
The first part is about learning the basics. There will also be time to review some theoretical stuff – but we promise it won’t be boring! We’ll review The Business Architecture Guild’s view by taking an Object-oriented approach to developing a business capability map
In the second part, we’ll pick a business (a simple one for this exercise, e.g. local cafe) and apply what we’ve studied to develop a business capability map for the chosen business.
At the end of the session, there will be time to share our learnings!
The Six Stages of Digital Transformation by Brian SolisBrian Solis
For companies faced with the prospect of “Digital Darwinism,” the hardest part is evaluating what need to be changed first. In Brian Solis' deepest dive into Digital Transformation yet, he created a maturity model that helps companies assess exactly where they are, and where they need to be on the road to digital transformation.
After several years of interviewing those helping to drive digital transformation, we have identified a series of patterns, components, and processes that form a strong foundation for change. We have organized these elements into six distinct stages:
Business as Usual
Present and Active
Formalized
Strategic
Converged
Innovative and Adaptive
Work with Brian to develop research, thought leadership or strategy to survive and thrive in an era of digital Darwinism. brian@briansolis.com - www.briansolis.com | Hire Brian to keynote your next event! www.briansolis.com/speaking
The 4 E's of Marketing By Christopher Graves, President & CEO, Asia Pacific, Ogilvy Public Relations Worldwide.
A keynote presentation at Ogilvy Verge Singapore
For more information, visit www.the-open-room.com and verge.ogilvy.com.sg
People Analytics: State of the Market - Top Ten ListJosh Bersin
What are the "Top Ten" trends in People Analytics? This presentation reviews the research and discusses how you should prepare for this exciting and fast growing but emerging market.
Finance and Investment Toolkit - Framework, Best Practices and TemplatesAurelien Domont, MBA
This Toolkit was created by ex-McKinsey & Deloitte Consultants, and JP Morgan Investment Bankers, after more than 1,000 hours of work. It is considered the world's best & most comprehensive Finance & Investment Toolkit. It includes all the Frameworks, Tools & Templates required to improve the capability of your organization and boost your career. You can download the entire Toolkit in Powerpoint and Excel at www.slidebooks.com
Digital Cyprus: Catalyst for Change (Volume 1)accenture
Accenture Greece in partnership with the Bank of Cyprus, Cyta and Logicom and supported by the Cyprus Employers and "Accenture Greece in partnership with the Bank of Cyprus, Cyta and Logicom and supported by the Cyprus Employers and Industrialists Federation and the Cyprus Chamber of Commerce and Industry conducted the study “Digital Cyprus: Catalyst for Change” in 2018.
In the context of this study we performed the Digital “Anatomy” of Cyprus at a national and industry level, shaped a national digital vision and designed the Action Plan for its operationalization.
Digital Cyprus: Catalyst for Change (Volume 1)
:: Digital transforms the world as we know it
:: Cyprus’s Digital Anatomy
:: A Digital Vision for Cyprus"
Digital Transformation Strategy & Framework | By ex-McKinseyAurelien Domont, MBA
Go to www.slidebooks.com to Download and Reuse Now a Digital Transformation Strategy & Framework in Powerpoint | Created By ex-McKinsey & Deloitte Strategy Consultants.
This document discusses the importance of digital business and defines key terms. It explains that a digital business incorporates digital technology to create revenue and results through innovative strategies, products, processes and experiences. It also discusses how technology and business have evolved, with technology now creating new opportunities that change businesses. It outlines several key technology trends and how they present opportunities for new players but also threats. The document discusses the changing roles of various corporate leaders in a digital business environment and some of the challenges they face. It provides a value tree for a digital business that shows how investments in new digital capabilities can drive growth and efficiency through various value levers.
The State of Digital Transformation 2018 - 2019 by Brian SolisBrian Solis
"Digital is an enterprise-wide strategic priority — but there's work to be done," according to Brian Solis and Altimeter, a Prophet company.
Now in its fifth year, our annual “State of Digital Transformation” research continues to document the constantly evolving enterprise. As disruptive technologies and their impact on organizations and markets continue to progress, our research aims to capture the shifts and trends that are shaping modern digital transformation.
In 2019, strategic digital transformation is only becoming more pervasive moving beyond IT to impact competitiveness throughout the organization. Budgets are soaring. The list of disruptive technologies on the radar of stakeholders is expanding. Ownership is moving to the C-Suite and managed by cross-functional, collaborative groups. Customer experience (CX) continues to lead digital transformation investments, but as we observed in 2017, employee experience and organizational culture are also rising in importance to empower and accelerate change, growth, and innovation.
Digital Transformation as an Enterprise-Wide Movement
This year, it’s clear that digital transformation is maturing into an enterprise-wide movement. Digital transformation is modernizing how companies work and compete and helping them effectively adapt and grow in an evolving digital economy.
What’s also evident is that there is still much work to do as companies are, by and large, prioritizing technology over grasping the disruptive trends that are influencing markets and, more specifically, customer and employee behaviors and expectations.
Learn more here: https://insights.prophet.com/the-state-of-digital-transformation-2018-2019
What industries have been digitally disrupted? What are being disrupted? What types of digital disruption are there? Where should you focus your digital disruption/transformation efforts?
Accenture Consumer Behavior Research: The value shake-upaccenture
Consumers are spending more time at home due to the pandemic, shifting the center of gravity for consumption. This has led many consumers to adapt their homes for working, learning, exercising and socializing remotely. As a result, new opportunities are emerging for consumer goods companies in areas like home improvement, home entertainment and e-commerce. To capitalize on these opportunities, companies need to innovate new products and services for the home, re-evaluate their channel strategies to prioritize local stores, and build more agile operating models and supply chains.
Salesforce.com is a global cloud computing company that provides customer relationship management software and platforms. It uses cloud computing through software as a service (SaaS) and platform as a service (PaaS) models. Some challenges it faces include increased competition from traditional companies and new entrants replicating its model, expanding its business areas, and ensuring constant system availability. Depending on costs, integration needs, and performance requirements, companies could potentially run their entire operations using Salesforce's offerings like Sales Cloud, Service Cloud, and applications on the AppExchange.
This document discusses developing an effective employer brand strategy. It covers creating an employer brand insight platform by researching what makes a company distinctive from both internal and external perspectives. It also addresses developing an employee value proposition through defining attributes, core positioning, and balancing current reality with future vision. Additionally, it touches on differentiating an employer brand through distinctive attributes and expressions, as well as tailoring an employer brand for specific regional, divisional, and functional target groups.
EY Human Capital Conference 2012: A beginners guide to global mobilityEY
How do you manage employee mobility? This presentation looks at the considerations for employers and employees including risk management, quality and effectiveness, compliance, coordination and communication. It considers relocation, HR aspects, tax, labor law, social security and immigration.
This document provides an overview of the St. Gallen Business Model Navigator methodology for innovating business models. It discusses how most new business models are recombinations of existing ideas and components, and that innovating a business model is challenging due to mental barriers around existing industry logic.
The methodology is a 3-step process: 1) Initiate by analyzing the current business model and opportunities/threats, 2) Ideate using "pattern cards" representing 55 existing successful business model patterns to spur new ideas, 3) Implement the most promising ideas. The methodology was developed based on research of 250 business models and applied successfully in workshops with various companies.
OVERVIEW Business model innovation is often the key to capturing .docxhoney690131
OVERVIEW: Business model innovation is often the key to capturing value from innovation within corporations. Developing and implementing new business models in practice, however, is difficult and fraught with risk. This paper discusses a systematic approach to developing new business models and identifies concrete steps to reduce the risks associated with them. It draws on literature on elements of the process as well as experience developing and implementing new business models at Goodyear.
FEATURE ARTICLE
KEYWORDS: Business model innovation; Adoption risks; Co-innovation risks; Business model canvas
Business model innovation has gained increased attention over the last five years, driven in large part by the tremendous returns generated by companies that have developed new business models--Netflix, Dell, and the Apple iTunes store are the most frequently noted examples. The term itself, however, has been only vaguely defined. Keeley and coauthors (2013), for example, characterize business model innovation by the number of attributes of a business that are changed, while Osterwalder and Pigneur (2010) define a business model in terms of a completed canvas. The vagueness of these representations makes it hard to study (or even to discuss) the process of developing a successful business model to harvest value from innovation.
The concept of the business model is actually simple: the business model is the means by which a firm creates and sustains margins or growth. The business model, defined in this way, is inherently embedded in a firm's competitive environment: the ability to create margins and growth is dependent on what competitors are doing to create margins and growth for themselves. The business model is not simply the means by which a firm creates and captures customer value. Focusing on creating customer value without regard to competitive advantage will leave a firm vulnerable to both margin erosion and anemic growth. Because the competitive environment is forever changing, business models require constant vigilance; they must be adapted and strengthened over time as the competitive environment evolves.
Business model innovation, in this context, is any innovation that creates a new market or disrupts the competitive advantage of key competitors. Business model innovation is confused in many discussions with building new capabilities (for instance, a new channel). This may or may not be business model innovation: while business model innovation may require new capabilities, new capabilities will constitute business model innovation only when they significantly disrupt the competitive dynamics of an industry. A few common examples of business model innovation make this distinction clear:
* Dell: Dell disrupted the cost structure of the personal computer industry with its build-to-order model by eliminating the costs of retail outlets, which radically reduced working capital, enabled customization of orders, and (riding Moore's law) .
Fundamentals of Designing, Building, & Implementing a Service Delivery CenterScottMadden, Inc.
ScottMadden recently partnered with APQC for a complimentary three-part webinar series focused on shared services.
This webinar session focused on the essential activities to plan, launch, and stabilize a new shared services operation including: critical success factors for your business case, top 10 implementation challenges, and three keys to post-launch success.
Innovation & Business Model & Business Model Canvas 2014Serdar Temiz
This document discusses business models and the business model canvas. It defines invention as a novel idea and innovation as the commercialization of that idea. The four main types of innovation are described as technology, process, product/service, and business model innovation. The business model canvas is introduced as a tool consisting of nine building blocks: customer segments, value proposition, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. The document provides examples and questions to consider for each block to help outline a business model.
Six stages of digital transformation by AltimeterRodd SL
The document outlines six stages of digital transformation that companies progress through as they adopt new technologies and adapt their business models to compete in a digital economy. Stage 1 is "Business as Usual," where companies maintain the status quo with their legacy processes and view of customers. Leadership resists change, departments work independently without collaboration, and digital literacy exists only in pockets without executive priority. The focus is on efficiency rather than customer empathy.
When you hear “digital” most people start to think about Google, Facebook or other technology companies. But now transforming into a digital company is the strategic objective for many companies across multiple sectors. We see digitisation as the driving strategy for many global business; GE’s strategy is to become the first digital industrial company and is moving its headquarters to Boston to be closer to MIT (Massachusetts Institute of Technology). Deutsche Bank wants to transform into a digital bank, and Sephora is digitising the world of beauty. The transformation is not just how these companies manage clients and deliver services through the web and smart phone apps, but back office processes, enhancing organisational agility, speeding up supply chains and recreating whole service offerings to make life easier or better for clients.
Object Oriented Business Capability Map - IIBA 2022 - Draft.pptxAustraliaChapterIIBA
Join IIBA® Melbourne as they host an online event specifically on how to develop business capability maps.
About this event
Ever wondered how to develop business capability maps? or perhaps you need a refresher?
Join Mohammad Mirkarimi Senior Business Architect at Capsifi and David Grindlay Principal Business Architect at Capsifi as they guide us through this session.
Captivated by art, science and business - Mohammad is trying to bring these three together. Moh is a drummer, a physics and biology enthusiast, and a business architect and analyst. He has studied Engineering, Business Management and Finance in academia. Also, equipped with IIBA, TOGAF and The Business Architecture Guild bodies of knowledge. Moh has worked as team member, leader and visionary in Management Consulting, Banking, Wealth, Insurance, Government, Telecom and Education industries.
With over 15 years of experience implementing software, David started his career as a business analyst in South Africa primarily in the financial services – insurance industry. In 2014 he moved over to Australia where he really started to observe the notorious gap between business strategies and project roadmaps as well as the downstream implications. More recently in his career, he gained broader exposure to other industries (Retail, Financial Services, Government and Hospitality) helping to structurally decompose business strategies, define the business landscape and help project teams (Business and Technical) realise and align on their common purpose. Today, David considers himself a Business Architect, doing whatever it takes to help companies realise their vision.
This session will contain two parts:
The first part is about learning the basics. There will also be time to review some theoretical stuff – but we promise it won’t be boring! We’ll review The Business Architecture Guild’s view by taking an Object-oriented approach to developing a business capability map
In the second part, we’ll pick a business (a simple one for this exercise, e.g. local cafe) and apply what we’ve studied to develop a business capability map for the chosen business.
At the end of the session, there will be time to share our learnings!
The Six Stages of Digital Transformation by Brian SolisBrian Solis
For companies faced with the prospect of “Digital Darwinism,” the hardest part is evaluating what need to be changed first. In Brian Solis' deepest dive into Digital Transformation yet, he created a maturity model that helps companies assess exactly where they are, and where they need to be on the road to digital transformation.
After several years of interviewing those helping to drive digital transformation, we have identified a series of patterns, components, and processes that form a strong foundation for change. We have organized these elements into six distinct stages:
Business as Usual
Present and Active
Formalized
Strategic
Converged
Innovative and Adaptive
Work with Brian to develop research, thought leadership or strategy to survive and thrive in an era of digital Darwinism. brian@briansolis.com - www.briansolis.com | Hire Brian to keynote your next event! www.briansolis.com/speaking
The 4 E's of Marketing By Christopher Graves, President & CEO, Asia Pacific, Ogilvy Public Relations Worldwide.
A keynote presentation at Ogilvy Verge Singapore
For more information, visit www.the-open-room.com and verge.ogilvy.com.sg
People Analytics: State of the Market - Top Ten ListJosh Bersin
What are the "Top Ten" trends in People Analytics? This presentation reviews the research and discusses how you should prepare for this exciting and fast growing but emerging market.
Finance and Investment Toolkit - Framework, Best Practices and TemplatesAurelien Domont, MBA
This Toolkit was created by ex-McKinsey & Deloitte Consultants, and JP Morgan Investment Bankers, after more than 1,000 hours of work. It is considered the world's best & most comprehensive Finance & Investment Toolkit. It includes all the Frameworks, Tools & Templates required to improve the capability of your organization and boost your career. You can download the entire Toolkit in Powerpoint and Excel at www.slidebooks.com
Digital Cyprus: Catalyst for Change (Volume 1)accenture
Accenture Greece in partnership with the Bank of Cyprus, Cyta and Logicom and supported by the Cyprus Employers and "Accenture Greece in partnership with the Bank of Cyprus, Cyta and Logicom and supported by the Cyprus Employers and Industrialists Federation and the Cyprus Chamber of Commerce and Industry conducted the study “Digital Cyprus: Catalyst for Change” in 2018.
In the context of this study we performed the Digital “Anatomy” of Cyprus at a national and industry level, shaped a national digital vision and designed the Action Plan for its operationalization.
Digital Cyprus: Catalyst for Change (Volume 1)
:: Digital transforms the world as we know it
:: Cyprus’s Digital Anatomy
:: A Digital Vision for Cyprus"
Digital Transformation Strategy & Framework | By ex-McKinseyAurelien Domont, MBA
Go to www.slidebooks.com to Download and Reuse Now a Digital Transformation Strategy & Framework in Powerpoint | Created By ex-McKinsey & Deloitte Strategy Consultants.
This document discusses the importance of digital business and defines key terms. It explains that a digital business incorporates digital technology to create revenue and results through innovative strategies, products, processes and experiences. It also discusses how technology and business have evolved, with technology now creating new opportunities that change businesses. It outlines several key technology trends and how they present opportunities for new players but also threats. The document discusses the changing roles of various corporate leaders in a digital business environment and some of the challenges they face. It provides a value tree for a digital business that shows how investments in new digital capabilities can drive growth and efficiency through various value levers.
The State of Digital Transformation 2018 - 2019 by Brian SolisBrian Solis
"Digital is an enterprise-wide strategic priority — but there's work to be done," according to Brian Solis and Altimeter, a Prophet company.
Now in its fifth year, our annual “State of Digital Transformation” research continues to document the constantly evolving enterprise. As disruptive technologies and their impact on organizations and markets continue to progress, our research aims to capture the shifts and trends that are shaping modern digital transformation.
In 2019, strategic digital transformation is only becoming more pervasive moving beyond IT to impact competitiveness throughout the organization. Budgets are soaring. The list of disruptive technologies on the radar of stakeholders is expanding. Ownership is moving to the C-Suite and managed by cross-functional, collaborative groups. Customer experience (CX) continues to lead digital transformation investments, but as we observed in 2017, employee experience and organizational culture are also rising in importance to empower and accelerate change, growth, and innovation.
Digital Transformation as an Enterprise-Wide Movement
This year, it’s clear that digital transformation is maturing into an enterprise-wide movement. Digital transformation is modernizing how companies work and compete and helping them effectively adapt and grow in an evolving digital economy.
What’s also evident is that there is still much work to do as companies are, by and large, prioritizing technology over grasping the disruptive trends that are influencing markets and, more specifically, customer and employee behaviors and expectations.
Learn more here: https://insights.prophet.com/the-state-of-digital-transformation-2018-2019
What industries have been digitally disrupted? What are being disrupted? What types of digital disruption are there? Where should you focus your digital disruption/transformation efforts?
Accenture Consumer Behavior Research: The value shake-upaccenture
Consumers are spending more time at home due to the pandemic, shifting the center of gravity for consumption. This has led many consumers to adapt their homes for working, learning, exercising and socializing remotely. As a result, new opportunities are emerging for consumer goods companies in areas like home improvement, home entertainment and e-commerce. To capitalize on these opportunities, companies need to innovate new products and services for the home, re-evaluate their channel strategies to prioritize local stores, and build more agile operating models and supply chains.
Salesforce.com is a global cloud computing company that provides customer relationship management software and platforms. It uses cloud computing through software as a service (SaaS) and platform as a service (PaaS) models. Some challenges it faces include increased competition from traditional companies and new entrants replicating its model, expanding its business areas, and ensuring constant system availability. Depending on costs, integration needs, and performance requirements, companies could potentially run their entire operations using Salesforce's offerings like Sales Cloud, Service Cloud, and applications on the AppExchange.
This document discusses developing an effective employer brand strategy. It covers creating an employer brand insight platform by researching what makes a company distinctive from both internal and external perspectives. It also addresses developing an employee value proposition through defining attributes, core positioning, and balancing current reality with future vision. Additionally, it touches on differentiating an employer brand through distinctive attributes and expressions, as well as tailoring an employer brand for specific regional, divisional, and functional target groups.
EY Human Capital Conference 2012: A beginners guide to global mobilityEY
How do you manage employee mobility? This presentation looks at the considerations for employers and employees including risk management, quality and effectiveness, compliance, coordination and communication. It considers relocation, HR aspects, tax, labor law, social security and immigration.
This document provides an overview of the St. Gallen Business Model Navigator methodology for innovating business models. It discusses how most new business models are recombinations of existing ideas and components, and that innovating a business model is challenging due to mental barriers around existing industry logic.
The methodology is a 3-step process: 1) Initiate by analyzing the current business model and opportunities/threats, 2) Ideate using "pattern cards" representing 55 existing successful business model patterns to spur new ideas, 3) Implement the most promising ideas. The methodology was developed based on research of 250 business models and applied successfully in workshops with various companies.
OVERVIEW Business model innovation is often the key to capturing .docxhoney690131
OVERVIEW: Business model innovation is often the key to capturing value from innovation within corporations. Developing and implementing new business models in practice, however, is difficult and fraught with risk. This paper discusses a systematic approach to developing new business models and identifies concrete steps to reduce the risks associated with them. It draws on literature on elements of the process as well as experience developing and implementing new business models at Goodyear.
FEATURE ARTICLE
KEYWORDS: Business model innovation; Adoption risks; Co-innovation risks; Business model canvas
Business model innovation has gained increased attention over the last five years, driven in large part by the tremendous returns generated by companies that have developed new business models--Netflix, Dell, and the Apple iTunes store are the most frequently noted examples. The term itself, however, has been only vaguely defined. Keeley and coauthors (2013), for example, characterize business model innovation by the number of attributes of a business that are changed, while Osterwalder and Pigneur (2010) define a business model in terms of a completed canvas. The vagueness of these representations makes it hard to study (or even to discuss) the process of developing a successful business model to harvest value from innovation.
The concept of the business model is actually simple: the business model is the means by which a firm creates and sustains margins or growth. The business model, defined in this way, is inherently embedded in a firm's competitive environment: the ability to create margins and growth is dependent on what competitors are doing to create margins and growth for themselves. The business model is not simply the means by which a firm creates and captures customer value. Focusing on creating customer value without regard to competitive advantage will leave a firm vulnerable to both margin erosion and anemic growth. Because the competitive environment is forever changing, business models require constant vigilance; they must be adapted and strengthened over time as the competitive environment evolves.
Business model innovation, in this context, is any innovation that creates a new market or disrupts the competitive advantage of key competitors. Business model innovation is confused in many discussions with building new capabilities (for instance, a new channel). This may or may not be business model innovation: while business model innovation may require new capabilities, new capabilities will constitute business model innovation only when they significantly disrupt the competitive dynamics of an industry. A few common examples of business model innovation make this distinction clear:
* Dell: Dell disrupted the cost structure of the personal computer industry with its build-to-order model by eliminating the costs of retail outlets, which radically reduced working capital, enabled customization of orders, and (riding Moore's law) .
OVERVIEW Business model innovation is often the key to capturing .docxaman341480
OVERVIEW: Business model innovation is often the key to capturing value from innovation within corporations. Developing and implementing new business models in practice, however, is difficult and fraught with risk. This paper discusses a systematic approach to developing new business models and identifies concrete steps to reduce the risks associated with them. It draws on literature on elements of the process as well as experience developing and implementing new business models at Goodyear.
FEATURE ARTICLE
A systematic approach to business model innovation can help capture value and reduce risks
KEYWORDS: Business model innovation; Adoption risks; Co-innovation risks; Business model canvas
Business model innovation has gained increased attention over the last five years, driven in large part by the tremendous returns generated by companies that have developed new business models--Netflix, Dell, and the Apple iTunes store are the most frequently noted examples. The term itself, however, has been only vaguely defined. Keeley and coauthors (2013), for example, characterize business model innovation by the number of attributes of a business that are changed, while Osterwalder and Pigneur (2010) define a business model in terms of a completed canvas. The vagueness of these representations makes it hard to study (or even to discuss) the process of developing a successful business model to harvest value from innovation.
The concept of the business model is actually simple: the business model is the means by which a firm creates and sustains margins or growth. The business model, defined in this way, is inherently embedded in a firm's competitive environment: the ability to create margins and growth is dependent on what competitors are doing to create margins and growth for themselves. The business model is not simply the means by which a firm creates and captures customer value. Focusing on creating customer value without regard to competitive advantage will leave a firm vulnerable to both margin erosion and anemic growth. Because the competitive environment is forever changing, business models require constant vigilance; they must be adapted and strengthened over time as the competitive environment evolves.
Business model innovation, in this context, is any innovation that creates a new market or disrupts the competitive advantage of key competitors. Business model innovation is confused in many discussions with building new capabilities (for instance, a new channel). This may or may not be business model innovation: while business model innovation may require new capabilities, new capabilities will constitute business model innovation only when they significantly disrupt the competitive dynamics of an industry. A few common examples of business model innovation make this distinction clear:
* Dell: Dell disrupted the cost structure of the personal computer industry with its build-to-order model by eliminating the costs of retail outlets, which rad.
FEATURE ARTICLEB u s in e s s M o d e l I n n o v a t i .docxssuser454af01
FEATURE ARTICLE
B u s in e s s M o d e l I n n o v a t i o n in P r a c t i c e
A system atic approach to business m o d e l innovation can help capture value and reduce risks.
Jim Euchner and Abhijit Ganguly
OVERVIEW: Business model innovation is often the key to capturing value from innovation within corporations. Develop
ing and implementing new business models in practice, however, is difficult and fraught with risk. This paper discusses a
systematic approach to developing new business models and identifies concrete steps to reduce the risks associated with
them. It draws on literature on elements of the process as well as experience developing and implementing new business
models at Goodyear.
KEYWORDS: Business model innovation, Adoption risks, Co-innovation risks, Business model canvas
Business model innovation has gained increased attention
over the last five years, driven in large part by the tremen
dous returns generated by companies that have developed
new business models—Netflix, Dell, and the Apple iTunes
store are the most frequently noted examples. The term it
self, however, has been only vaguely defined. Keeley and
coauthors (2013), for example, characterize business model
innovation by the number of attributes of a business that are
changed, while Osterwalder and Pigneur (2010) define a
business model in terms of a completed canvas. The vague
ness of these representations makes it hard to study (or even
to discuss) the process of developing a successful business
model to harvest value from innovation.
The concept of the business model is actually simple: the
business model is the means by which a firm creates and sus
tains margins or growth. The business model, defined in this
James Euchner is editor-in-chief o f Research-Technology Management and
vice president o f global innovation at Goodyear. He previously held senio'
management positions in the leadership of innovation at Pitney Bowes and
Bell Atlantic. He holds BS and MS degrees in mechanical and aerospace
engineering from Cornell and Princeton Universities, respectively, and an
MBA from Southern M ethodist University. This paper is adapted from his
talk at the 2014 IRI Annual Meeting in Boston in May. [email protected]
Abhijit Ganguly is manager, business m odel innovation at Goodyear.
Before jo in in g Goodyear, he was responsible fo r leading grow th in itia
tives across m ultiple geographies fo r a manufacturing company. He
holds a bachelor's degree in mechanical engineering from Jadavpur Uni
versity (India) and an MBA from the Tuck School of Business at Dartmouth.
[email protected]
DOI: 10.5437/08956308X5706013
way, is inherently embedded in a firm's competitive environ
ment: the ability to create margins and growth is dependent
on what competitors are doing to create margins and growth
for themselves. The business model is not simply the means
by which a firm creates and captures customer value. Focus
ing on creating ...
This document discusses business models and their importance. It makes three key points:
1) A business model describes how a company delivers value to customers, entices customers to pay for that value, and converts those payments to profit. It reflects management's hypothesis about customer needs and how the company can meet those needs.
2) Business models lack theoretical grounding in economics and business studies. Economic theory assumes markets will naturally form and customers will pay for value, so business models are unnecessary. In reality, entrepreneurs must design business models to create and capture value.
3) Examples show how business model innovation has disrupted industries. Containerization transformed shipping. Southwest Airlines succeeded with a low-cost model unlike major carriers.
Business models, business strategy and innovationJonh Honare
This document discusses business models and their importance. It makes three key points:
1) A business model describes how a company delivers value to customers, entices customers to pay for that value, and converts those payments to profit. It reflects management's hypothesis about customer needs and how the company can meet those needs and earn a profit.
2) Business models lack theoretical grounding in economics and business studies, which often assume markets will naturally support business activities. In reality, companies must design business models to address issues like capturing value from innovations.
3) Examples show how business model innovations, like Swift's centralized meat packing or Sea-Land's container shipping, can disrupt industries by creating new value propositions and
The document discusses comparing the business models of Skype and traditional telecommunications companies (telcos). It summarizes Skype's business model using the Business Model Ontology, which identifies nine elements including value proposition, customer segments, and revenue streams. It then compares Skype and telcos' business models, finding key differences in their value propositions, target customers, and core capabilities. The document also describes a Delphi study examining the disruption phases Skype caused to the telecom industry.
Innovation Creating Long-term Value in New Business Models an.docxdirkrplav
Innovation: Creating Long-term Value in New Business Models and
Technology
Published : February 27, 2006 in [email protected]
In their book, Making Innovation Work: How to Manage It, Measure It and Profit
from It (Wharton School Publishing), authors Tony Davila, Marc J. Epstein and
Robert Shelton make the case that innovation is not a one-time event, but a
process that must be continuously managed, measured and carried out in all a
company's products, services and business functions. Using specific companies as
examples, and drawing on existing research as well as their own experiences in
the field, the authors demonstrate what works and what doesn't, and offer advice
on how to consistently maximize the value of innovation investments. Below is an
excerpt from Chapter Two, entitled Mapping Innovation: What Is Innovation
and How Do You Leverage It?
A New Model of Strategic Innovation
One of the most common misconceptions is that innovation is primarily, if not
exclusively, about changing technology. Mention innovation to many
business-savvy CEOs, and they envision R&D labs where engineers and
scientists are developing the next new technology. However, innovation is not
just about changing technologies.
High-performing companies innovate by leveraging both new business models and improved
technologies. In Chapter 1, "Driving Success: How You Innovate Determines What You Innovate," we
described the business model innovation of Dell and the technology and business model innovations of
Apple. There are plenty of other examples. eBay developed a new online business model for auctions
using readily available, albeit fairly new, Internet technology. The retail giant Wal-Mart currently
dominates its retail space, and has used commercially available computer communication technologies to
hyper-integrate its supply chain with suppliers, thereby creating a new business model with significant
cost savings.
Nick Donofrio, lead researcher at IBM, said, "We define 'innovation' as our ability to create new value at
the intersection of business and technology. We have to have new insights. We have to do things
differently. We cannot rely just on invention or technology for success."
Even the stodgy, asset-intensive steel industry has seen innovation of this type. Nucor Steel transformed
the steel industry when it developed a production technology to turn old metal into steel, and changed its
business model to capture maximum value. Nucor's new business model focused on relatively small
volume production of high-value products, effectively reversing the heritage industry model of large-scale
production runs of commodity products. The combined effect of the technology change and the business
model shift sent ripples of change throughout the industry.
Rarely does a technology change occur without also causing a change in business processes. The reverse
is also true. Both innovations go together and have to be thought and implemented as a whole. For
in.
This document discusses the concept of "minimum viable transformations", which are lightly constructed versions of potential new business models that companies test to learn about risks and uncertainties. It provides examples of companies like Intuit that have successfully transformed their business models by applying principles from startup culture, such as building minimum viable products. The key points made are: 1) Companies are increasingly pursuing business model innovation to keep up with changing market conditions. 2) Transforming business models at scale is risky, so testing prototypes first can provide valuable learning. 3) Intuit transformed to a software-as-a-service model by "acting small" and applying minimum viable product thinking. 4) Minimum viable transformations allow companies to learn fast by failing small in a controlled
Business Model Schools of thought *UPDATED*Bruce Starcher
The document discusses the evolution of business model thinking over time. It describes several influential schools of thought on business models that emerged between 1995-2020. Each school made major contributions to understanding business models, but took different approaches. There is no single agreed upon definition or framework for business models. The Starcher Group leverages the strengths of various approaches to support clients with business model design and meaningful growth.
Business Models and Business Model InnovationMichal Hron
Warby Parker disrupted the eyewear industry by offering affordable, high-quality glasses through an online platform. Traditional retailers marked up prices significantly, limiting selection and requiring multiple store visits. Frustrated by these issues, Warby Parker simplified the purchasing process by allowing customers to "try before you buy" and eliminating brick-and-mortar stores, improving accessibility. By reimagining distribution and customer interactions, businesses can challenge industry norms.
The document discusses business models and their dynamics. It defines a business model as how a company creates and captures value. It also describes different types of business models like integrated, orchestrator, layer player and market maker models. The document emphasizes that business models need to evolve over time in response to changes in competition and conditions to remain competitive. It suggests the orchestrator model may have the greatest long-term potential due to its ability to generate high revenue while managing risk.
Why do we need business models or Mindset behind Business Model ApproachVasily Ryzhonkov
Entrepreneurship is about creating innovative ideas and transforming them into ventures that generate value. Through the years the only way how entrepreneurs documented their ideas and presented to investors was writing business plans. However, it is widely recognized that business plans immediately become obsolete after first meeting with reality. Business plans are also too long to write, they are seldom updated, almost never read by others (even investors for whom they were written). Nowadays everyone in the entrepreneurship world speaks about business model as more important issue than business plan. There are plenty of materials about what is a business model, how to use them; more than 40 different types of business models appeared since 1985 (M. Porter). However, only a few words said about why and when particular model of business model should be used for idea development and venture creation. This article is aimed at disclosure of mindset behind business model approach to entrepreneurship. Second purpose is to define main ways how business models could be applied to entrepreneurship.
This document discusses business model innovation (BMI). It defines a business model as explaining how a company's strategy will generate profits. BMI refers to reinventing the business itself, not just products/services. It involves innovating two or more elements of the business model, like customer value, revenue model, resources, or processes. Apple is cited as transforming its business model through innovations like the iPod, iTunes, iPhone, and iPad. Successful BMI often addresses new customer needs, leverages new technologies, focuses on customer "jobs to be done," responds to competition, or changes industry definitions of solutions. Examples of BMI centered around new business models include Tata Nano, Apple iTunes/iPod, Walmart, FedEx,
Doll_Eisert_Business Model Development InnovationJulia Doll
The document discusses business model innovation and provides an overview of SAP's approach to business model development and innovation (BMDI). The BMDI approach is presented as a systematic, iterative process involving four types of iterations: analyze and improve, challenge and change, test and verify, and evaluate and decide. It allows teams to develop an appropriate business model through diverging and converging ideas. Specific considerations for complex business models involving multiple customer groups are also outlined. An example use case of applying the BMDI approach to transform a cloud business is briefly mentioned but not described in detail.
Business transformation trends and smart methodologyParticipium
The document discusses business transformation trends for 2020 and beyond, focusing on three dimensions: the business environment, time horizon, and key business themes. It examines the challenge of balancing exploration and exploitation through ambidexterity at both the leadership and organizational structure levels. The document also provides questions and considerations for organizations undergoing transformation to help scope needs, model approaches, activate plans, review progress, and tweak strategies over time.
That is a PPT presentation used for a lesson about the Business Model Innovation.
The class was held in December 2014 as a part of the larger course "General Management" at the University of Rome Tor Vergata.
Main contents are: business modeling, business model innovation, blue ocean strategy, BMI as a set od key decision.
The document discusses various topics related to innovation including open innovation, business model innovation, different levels of innovation, knowledge creation and leadership, dynamic capabilities, platforms and innovation, social communities, and measuring the success of a business model. It provides examples and definitions for concepts like open innovation, dynamic capabilities, and the role of business models in connecting technical and economic domains.
From Hope to Despair The Top 10 Reasons Businesses Ditch SEO Tactics.pptxBoston SEO Services
From Hope to Despair: The Top 10 Reasons Businesses Ditch SEO Tactics
Are you tired of seeing your business's online visibility plummet from hope to despair? When it comes to SEO tactics, many businesses find themselves grappling with challenges that lead them to abandon their strategies altogether. In a digital landscape that's constantly evolving, staying on top of SEO best practices is crucial to maintaining a competitive edge.
In this blog, we delve deep into the top 10 reasons why businesses ditch SEO tactics, uncovering the pain points that may resonate with you:
1. Algorithm Changes: The ever-changing algorithms can leave businesses feeling like they're chasing a moving target. Search engines like Google frequently update their algorithms to improve user experience and provide more relevant search results. However, these updates can significantly impact your website's visibility and ranking if you're not prepared.
2. Lack of Results: Investing time and resources without seeing tangible results can be disheartening. The absence of immediate results often leads businesses to lose faith in their SEO strategies. It's important to remember that SEO is a long-term game that requires patience and consistent effort.
3. Technical Challenges: From site speed issues to complex metadata implementation, technical hurdles can be daunting. Overcoming these challenges is crucial for SEO success, as technical issues can hinder your website's performance and user experience.
4. Keyword Competition: Fierce competition for top keywords can make it hard to rank effectively. Businesses often struggle to find the right balance between targeting high-traffic keywords and finding less competitive, niche keywords that can still drive significant traffic.
5. Lack of Understanding of SEO Basics: Many businesses dive into the complex world of SEO without fully grasping the fundamental principles. This lack of understanding can lead to several issues:
Keyword Awareness: Failing to recognize the importance of keyword research and targeting the right keywords in content.
On-Page Optimization: Ignorance regarding crucial on-page elements such as meta tags, headers, and content structure.
Technical SEO Best Practices: Overlooking essential aspects like site speed, mobile responsiveness, and crawlability.
Backlinks: Not understanding the value of high-quality backlinks from reputable sources.
Analytics: Failing to track and analyze data prevents businesses from optimizing their SEO efforts effectively.
6. Unrealistic Expectations and Timeframe: Entrepreneurs often fall prey to the allure of quick fixes and overnight success. Unrealistic expectations can overshadow the reality of the time and effort needed to see tangible results in the highly competitive digital landscape. SEO is a long-term strategy, and setting realistic goals is crucial for success.
#SEO #DigitalMarketing #BusinessGrowth #OnlineVisibility #SEOChallenges #BostonSEO
The digital marketing industry is changing faster than ever and those who don’t adapt with the times are losing market share. Where should marketers be focusing their efforts? What strategies are the experts seeing get the best results? Get up-to-speed with the latest industry insights, trends and predictions for the future in this panel discussion with some leading digital marketing experts.
Breaking Silos To Break Bank: Shattering The Divide Between Search And SocialNavah Hopkins
At Mozcon 2024 I shared this deck on bridging the divide between search and social. We began by acknowledging that search-first marketers are used to different rules of engagement than social marketers. We also looked at how both channels treat creative, audiences, bidding/budgeting, and AI. We finished by going through how they can win together including UTM audits, harvesting comments from both to inform creative, and allowing for non-login forums to be part of your marketing strategy.
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In the face of the news of Google beginning to remove cookies from Chrome (30m users at the time of writing), there’s no longer time for marketers to throw their hands up and say “I didn’t know” or “They won’t go through with it”. Reality check - it has already begun - the time to take action is now. The good news is that there are solutions available and ready for adoption… but for many the race to catch up to the modern internet risks being a messy, confusing scramble to get back to "normal"
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2. St. Gallen Business Model Navigator – www.bmi-lab.ch 1
The St. Gallen Business Model NavigatorTM
1. New Products are not enough
There are many companies with excellent tech-
nological products. Especially in Europe, many
firms continuously introduce innovations to their
products and processes. Yet, many companies will
not survive in the long term despite their product
innovation capabilities. Why do prominent firms,
which have been known for their innovative prod-
ucts for years, suddenly lose their competitive ad-
vantage? Strong players such as AEG, Grundig,
Nixdorf Computers, Triumph, Brockhaus, Agfa,
Kodak, Quelle, Otto, and Schlecker are vanishing
from the business landscape one after the other.
They have lost their capabilities of marketing their
former innovative strengths. The answer is simple
and painful: these companies have failed to adapt
their business models to the changing environment.
In future, competition will take place between busi-
ness models, and not just between products and
technologies.
New business models are often based on early
weak signals: Trendsetters signal new customer
requirements; regulations are discussed broadly
before they are eventually approved. New entrants
to the industry discuss new alliances at great length;
disruptive technology developments are results of
many years of research. The insolvency of Kodak in
2012 has also a long history. The first patents for
digital cameras had already been published by Tex-
as Instruments in 1972. Kodak realized the potential
of the new technology and in the 90s initiated an
alliance on digital imaging with Microsoft in order
to conquer this new field. But – as can be observed
frequently – the disruptive move was faint-hearted.
When the first digital cameras entered the market in
1999, Kodak forecasted that ten years later digital
cameras would account for only 5 % of the market,
with analog cameras remaining strong at 95 %. In
2009, the reality was different: Only 5 % of the
market remained analog. This misjudgment was so
grave and powerful that it was too late when Kodak
physically blew up its chemical R&D center in
Rochester in order to change the corporate-
dominant logic of analog imaging. Between 1988
and 2008, Kodak reduced the number of its em-
ployees by more than 80 %, in 2012 Kodak filed for
bankruptcy protection.
It is often said that existing business models
‘don’t work anymore’. Still, the typical answers
provided by R&D engineers are new products
based on new technologies and more functionality.
By contrast, the underlying business logic is rarely
addressed despite the fact that business model in-
novators have been found to be more profitable by
an average of 6 % compared to pure product or
process innovators (BCG 2008). As a consequence,
managers consider business model innovation to be
more important for achieving competitive ad-
vantage than product or service innovation, and
over 90 % of the CEOs surveyed in a study by IBM
(2012) plan to innovate their company’s business
model over the next three years. But a plan is not
enough.
When it comes to making the phenomenon tan-
gible, people struggle. Very few managers are able
to explain their company’s business model ad-hoc,
and even fewer can define what a business model
actually is in general. The number of companies,
which have established dedicated business model
innovation units and processes is even lower. Given
the importance of the topic, this lack of corporate
institutionalization is surprising – however, consid-
ering the complexity and fuzziness of the topic, it is
to be expected.
Before discussing how to innovate a business
model, it is important to understand what it is that is
to be innovated. Historically, the business model
has its roots in the late 1990s when it emerged as a
buzzword in the popular press. Ever since, it has
raised significant attention from both practitioners
and scholars and nowadays forms a distinct feature
in multiple research streams. In general, the busi-
ness model can be defined as a unit of analysis to
describe how the business of a firm works. More
specifically, the business model is often depicted as
an overarching concept that takes notice of the
different components a business is constituted of
and puts them together as a whole (Demil and
Lecocq 2010; Osterwalder and Pigneur, 2010). In
other words, business models describe how the
magic of a business works based on its individual
bits and pieces.
Business model literature has not yet reached a
common opinion as to which components exactly
make up a business model. To describe the business
models throughout our study, we employ a concep-
tualization that consists of four central dimensions:
the Who, the What, the How, and the Value. Due to
the reduction to four dimensions the concept is easy
to use, but, at the same time, exhaustive enough to
provide a clear picture of the business model archi-
tecture.
3. St. Gallen Business Model Navigator – www.bmi-lab.ch 2
Who: Every business model serves a certain
customer group (Chesbrough and Rosenbloom
2002; Hamel 2000). Thus, it should answer the
question ´Who is the customer?´ (Magretta 2002).
Drawing on the argument from Morris et al. (2005,
p. 730) that the ´failure to adequately define the
market is a key factor associated with venture fail-
ure´, we identify the definition of the target cus-
tomer as one central dimension in designing a new
business model.
What: The second dimension describes what is
offered to the target customer, or, put differently,
what the customer values. This notion is commonly
referred to as the customer value proposition (John-
son et al. 2008), or, more simply, the value proposi-
tion (Teece 2010). It can be defined as a holistic
view of a company's bundle of products and ser-
vices that are of value to the customer (Osterwalder
2004).
How: To build and distribute the value proposi-
tion, a firm has to master several processes and
activities. These processes and activities, along with
the involved resources (Hedman and Kalling 2003)
and capabilities (Morris et al. 2005), plus their
orchestration in the focal firm’s internal value chain
form the third dimension within the design of a new
business model.
Value: The fourth dimension explains why the
business model is financially viable, thus it relates
to the revenue model. In essence, it unifies aspects
such as, for example, the cost structure and the
applied revenue mechanisms, and points to the
elementary question of any firm, namely how to
make money in the business (see Fehler! Verweis-
quelle konnte nicht gefunden werden.).
By answering the four associated questions and
explicating (1) the target customer, (2) the value
proposition towards the customer, (3) the value
chain behind the creation of this value, and (4) the
revenue model that captures the value, the business
model of a company becomes tangible and a com-
mon ground for its re-thinking is achieved. A cen-
tral virtue of the business model is that it allows for
a holistic picture of the business by combining
factors located inside and outside the firm (Teece
2010; Zott et al. 2011). For this reason, it is often
referred to as a boundary-spanning concept that
explains how the focal firm is embedded in, and
interacts with, its surrounding ecosystem (Shafer et
al. 2005; Zott and Amit 2008). The task most com-
monly attributed to the business model is that of
explaining how the focal firm creates and captures
value for itself and its various stakeholders within
this ecosystem.
Considering the vast scope that is subsumed un-
der the business model umbrella, it becomes clear
that, in the real world, a firm’s business model is a
complex system full of interdependencies and side
effects. Changing – or innovating – the business
model can hence be assumed to be a major under-
taking that can quickly become very challenging.
Generations of managers have been trained with-
in Porter’s five forces of industry analysis. Michael
Porter taught us to analyze the industry and try to
gain comparative competitive advantage due to
better positioning. Kim and Mauborgne (2005)
paved the way out of Porter’s box. ‘Beat your com-
petitor without trying to beat your competitor’ is the
credo that obliges companies to leave their highly
competitive own industry and create new uncon-
tested markets in which they can prosper. It is a
mantra for business innovators as we have seen in
our own research and coaching of companies dur-
ing the last decade. IKEA revolutionized the furni-
ture business, Apple successfully re-defined indus-
try boundaries, and Zara reinvented the European
fashion industry with high-speed cycles. Many
others revolutionized their industries in a very radi-
cal way: Mobility car sharing, Car2go, TomTom,
Wikipedia, Microinsurance, Better Place, Verizon,
and Bombardier Flexjet are only a few examples of
companies which escaped the traditional industry
logic and therefore redefined their respective indus-
tries.
So, why do not more companies just come up
with a new business model and move into a ‘blue
ocean’? It is because thinking outside the box is
hard to do – mental barriers block the road towards
innovative ideas. Managers struggle to turn around
the predominant logic of ‘their’ industry, which
they have spent their entire careers understanding.
First, many managers do not see why they should
leave the comfort zone as long as they are still mak-
ing profits. Second, it is common knowledge that
the harder you try to get away from something, the
closer you get to it. Bringing in outside ideas might
seem promising in this case – however, the ´not
invented here´ (NIH) syndrome is well known and
will soon quash any outside idea before it can take
off in a company.
In view of these barriers, a successful approach
that leads to innovative business model ideas must
Fig. 1 Business model definition – the magic triangle
4. St. Gallen Business Model Navigator – www.bmi-lab.ch 3
master the balancing act of bringing in stimuli ex-
ternal to an industry to achieve novelty while, at the
same time, enabling those within an industry to
develop their own innovative business model ideas.
Research methodology
As business innovation research is still a young
phenomenon, we used a two-step approach to ana-
lyze the basic patterns of business models.
In phase 1 we analyzed 250 business models that
had been applied in different industries within the
last 25 years. As a result we identified 55 patterns
of business models which served as the base for
new business models in the past. More than five
years of research and practice in the area of busi-
ness model innovation have culminated in a meth-
odology that helps firms structure and navigate the
process: the Business Model Innovation Map,
which guides the innovator through the many op-
portunities a company faces (see also Gassmann et
al. 2013).
In phase 2 we used that knowledge and, together
with selected companies, developed a construction
methodology which is based on two basic princi-
ples: First, 90 % of all new business models have
recombined already existing ideas, concepts and
technologies as we found in our research group.
Consequently this fact has to be used for develop-
ing new business models. Second, we applied the
iterative process of design thinking, which was
developed at the Institute of Design at Stanford
University. This action-based research approach
helped us to learn more about the practical use of
the design of new business models.
We applied the methodology with teams in the
following companies: BASF (chemicals), Bühler
(machinery), Hilti (construction tools), Holcim
(cement), Landis&Gyr (electricity metering), MTU
(turbines), SAP (software), Sennheiser (audio tech-
nology), Siemens (health care), Swisscom (telecom).
In all companies, investments have been initiated as
a result of the business model project, in some
companies up to double-digit million amounts are
invested. In addition we used the approach during
three years of teaching Executive MBA students at
the Executive School in St. Gallen and applied it in
a one-day workshop for more than 50 companies.
This experience has been built into the methodolo-
gy as well.
2. Creative Imitation and the Power
of Recombination
The phrase ´There’s no need to reinvent the
wheel´ describes the fact that, at a closer look, only
few phenomena are really new. Often, innovations
are slight variations of something that has existed
elsewhere, in other industries, or in other geograph-
ical areas. We have looked at several hundred busi-
ness model innovators and were not surprised to
find that about 90 % of the innovations turned out
to be such re-combinations of previously existing
concepts. We identified 55 repetitive patterns that
form the core of many new business models (see
Gassmann et al. 2012; Gassmann et al. 2013). The
business model innovation map (see Figure 2) de-
picts the 20 most popular patterns as lines, along
with the companies which applied them in their
new business models.
The RAZOR AND BLADE pattern, for example,
goes back to Gillette’s 1904 move to give the base
product (the razor) away for a low price and earn
money through higher-priced consumables (the
blades). The pattern, which defines the value prop-
osition and revenue logic of a business model, has
spread across many industries since then. Examples
include inkjet printers and cartridges, blood glucose
meters and test stripes, or Nespresso’s coffee ma-
chines and capsules. In the world of business mod-
els, there is really not much that is actually new –
but many powerful adaptations and applications
contexts and industries can be found.
What can we learn from this observation? Clear-
ly, the patterns of business models identified can
serve as an inspiration when innovations of busi-
ness models are considered. If they could be adopt-
ed elsewhere, why not apply them to one’s own
company? This approach brings in external stimuli
while, at the same time, allowing enough room to
prevent the NIH syndrome. Over time, we have
developed the 55 business model patterns identified
into the central ideation tool of our St. Gallen Busi-
ness Model NavigatorTM
methodology.
5. St. Gallen Business Model Navigator – www.bmi-lab.ch 4
Fig. 2 The business model innovation map: Every node represents a revolution of an industry.
6. St. Gallen Business Model Navigator – www.bmi-lab.ch 6
The St. Gallen Business Model NavigatorTM
transforms the main concept – creating business
model ideas by utilizing the power of re-
combination – into a ready-to-use methodology,
which has proven its usefulness in countless work-
shops and other formats. Three steps pave the road
to a new business model:
Step 1: Initiation – preparing the journey
Before embarking on the journey towards new
business models, it is important to define a starting
point and rough direction. Describing the current
business model, its value logic, and its interactions
with the outside world is a good exercise to get into
the logic of business model thinking. It also builds a
common understanding of why the current business
model will need an overhaul, which factors endan-
ger its future, or which opportunities cannot be
exploited due to the current way of doing business.
Explicating these woes and the predominant indus-
try logic provides a rough direction according to
which the generic business model patterns should
be interpreted in step 2.
Success factors:
Involve open-minded team members from
different functions; the involvement of industry
outsiders supports thinking outside the box.
Overcome the dominant industry logic: For-
bidden are sentences like ‘this has always
worked like that in our industry’. Instead, a fu-
neral speech for one´s own business helps to
overcome the past. Why did the company die?
This is a fascinating exercise, which McKinsey
has often used successfully in change projects
when individuals needed to overcome mental
barriers.
Use methodological support, e.g., card sets,
business model innovation software (see
www.bmi-lab.ch for our methodological ap-
proach and background information).
Step 2: Ideation – moving into new directions
Re-combining existing
concepts is a powerful tool
to break out of the box and
generate ideas for new
business models. To ease
this process, we have con-
densed the 55 patterns of
successful business models
into a handy set of pattern
cards. Each pattern card (see
Figure 3) contains the essential information that is
needed to understand the concept behind the pat-
tern: a title, a description of the general logic, and a
concrete example of a company implementing the
pattern in its business model. During the stage of
ideation, the level of information on the card is just
right to trigger the creation of innovative ideas.
The way in which we apply the cards is termed
pattern confrontation to describe the process of
adapting the pattern to one’s own initial situation.
Participants, typically divided into groups of three
to five people, ask themselves how the pattern
would change their business model if applied to
their particular situation.
At first glance the cards might seem unrelated to
the problem, however, the results are quite surpris-
ing. Often the stimuli, in the form of pattern cards,
cause innovative ideas to emerge, which inspire
discussions among the group members. In one in-
stance, for example, the task of fitting the SUB-
SCRIPTION pattern to the business model of a ma-
chine manufacturer led to the idea of training
sought-after plant operators and leasing them to
customers. The concept was implemented and now
contributes to the company’s turnover while at the
same time strengthening ties with customers –
which had been the original reason for thinking
about a new business model.
Success factors:
Try not only the close patterns, but also con-
front more distant patterns. We had very sur-
prising results when a 1st
tier automotive sup-
plier applied the question: ‘How would
McDonald´s conduct your business?’. For ex-
ample, McDonald’s front desk employees are
fully productive after a 30-minute introduction.
The automotive supplier had to learn that re-
ducing complexity would lead to totally new
business models and would also stimulate
quick learning.
Keep on trying. At first, it seems impossible to
learn something from industry outsiders. Espe-
cially individuals with a profound background
in the existing industry have difficulties in
overcoming the dominant industry logic.
Step 3: Integration – completing the picture
There is no idea that is clear enough to be imme-
diately implemented in a company. On the contrary,
promising ideas need to be gradually elaborated
into full-blown business models that describe all
four dimensions - Who-What-How-Value? - and
also consider stakeholders, new partners, and con-
sequences for the market. A set of checklists and
tools, such as the value network methodology, are
available in the St. Gallen Business Model Naviga-
Fig. 3 Pattern card set
7. St. Gallen Business Model Navigator – www.bmi-lab.ch 7
torTM
to ease the process of quickly elaborating and
explicating the business model around a promising
idea. The list of example companies on each pattern
card makes it possible to draw inspiration from
other companies which implemented the same pat-
tern.
Success factors:
Be consistent. Consistency between the internal
and the external world is necessary. There has
to be a fit between the internal core competen-
cies, the competitor’s perspective, and the per-
ceived customer value.
Try hard. Developing a business model and
implementing the idea in one´s own company
requires a lot of work.
3. Conclusions
With the St. Gallen Business Model NavigatorTM
a new methodology has been developed that struc-
tures the process of innovation of a company’s
business model and encourages outside-the-box
thinking, which is a key prerequisite for successful
business models. Well-grounded in theory, it has
proven its applicability in practical settings many
times over.
In order to achieve successful business model
innovations within a company it is important to not
only acknowledge the importance of business mod-
el innovation, but to implement an effective busi-
ness model innovation process within the firm. This
is the most difficult, but also the most important
step. Various tools have been developed to support
managers during the business model innovation
process1
:
Given the overwhelming demand for a new
business model innovation methodology, the jour-
ney of the St. Gallen Business Model NavigatorTM
will continue. The future race for comparative
competitive advantages has shifted from pure prod-
ucts and services to business models. Firms need to
get ready for that race. Identifying the opportunity
is not enough, innovators and entrepreneurs have to
capture the opportunity and start moving. Knowing
the past helps in creating the future.
The following managerial implications should
prove valuable for practitioners using this new
approach to revolutionize their business model:
1. Challenge the dominant logic by using confron-
tation techniques. The 55 patterns of business
models identified support this challenging task.
2. Use an iterative approach with many loops.
3. Use haptic cards or other devices to stimulate the
creative thinking process.
4. Carefully decide when to change between diver-
gent and convergent thinking, the management
of the balance between creativity and discipline
requires some experience.
5. Create a culture of openness: there are no holy
cows in the room.
Business model innovation
software
Interactive software al-
lows users to explore the
55 business model pat-
terns and the map interac-
tively. The software sup-
ports the construction of a
new business model based
on the St. Gallen Business
Model NavigatorTM
throughout the company
on a worldwide scale.
Online learning
The online learning course
is aimed at employees and
in an interactive way ex-
plains the logic and im-
portance of business mod-
el innovation and the
power of recombining ex-
isting business model el-
ements.
55 business model cards
The set of 55 business
model cards supports the
creative ideation process
during workshops.
www.bmi-lab.ch.
8. 4. The 55 business model patterns
No Pattern
name
Affected
BM
compo-
nents
Exemplary companies Pattern description
1 ADD-ON
What
Value
Ryanair (1985), SAP
(1992), Sega (1998)
The core offering is priced competitively, but there are
numerous extras that drive the final price up. In the end, the
costumer pays more than he or she initially assumed. Cus-
tomers benefit from a variable offer, which they can adapt
to their specific needs.
2 AFFILIATION
How
Value
Amazon Store (1995),
Cybererotica (1994),
CDnow (1994), Pinterest
(2010)
The focus lies in supporting others to successfully sell
products and directly benefit from successful transactions.
Affiliates usually profit from some kind of pay-per-sale or
pay-per-display compensation. The company, on the other
hand, is able to gain access to a more diverse potential
customer base without additional active sales or marketing
efforts.
3 AIKIDO
Who
What
Value
Six Flags (1961), The
Body Shop (1976),
Swatch (1983), Cirque du
Soleil (1984), Nintendo
(2006)
Aikido is a Japanese martial art in which the strength of an
attacker is used against him or her. As a business model,
Aikido allows a company to offer something diametrically
opposed to the image and mindset of the competition. This
new value proposition attracts customers who prefer ideas
or concepts opposed to the mainstream.
4 AUCTION
What
Value
eBay (1995), Winebid
(1996), Priceline (1997),
Google (1998), Elance
(2006), Zopa (2005),
MyHammer (2005)
Auctioning means selling a product or service to the high-
est bidder. The final price is achieved when a particular end
time of the auction is reached or when no higher offers are
received. This allows the company to sell at the highest
price acceptable to the customer. The customer benefits
from the opportunity to influence the price of a product.
5 BARTER
What
Value
Procter & Gamble (1970),
Pepsi (1972), Lufthansa
(1993), Magnolia Hotels
(2007), Pay with a Tweet
(2010)
Barter is a method of exchange in which goods are given
away to customers without the transaction of actual money.
In return, they provide something of value to the sponsor-
ing organisation. The exchange does not have to show any
direct connection and is valued differently by each party.
6 CASH MA-
CHINE
How
Value
American Express (1891),
Dell (1984), Amazon
Store (1995), PayPal
(1998), Blacksocks
(1999), MyFab (2008),
Groupon (2008)
In the Cash Machine concept, the customer pays upfront for
the products sold to the customer before the company is
able to cover the associated expenses. This results in in-
creased liquidity which can be used to amortise debt or to
fund investments in other areas.
7 CROSS
SELLING
How
What
Value
Shell (1930),
IKEA(1956), Tchibo
(1973), Aldi (1986),
SANIFAIR (2003)
In this model, services or products from a formerly exclud-
ed industry are added to the offerings, thus leveraging
existing key skills and resources. In retail especially, com-
panies can easily provide additional products and offerings
that are not linked to the main industry on which they were
previously focused. Thus, additional revenue can be gener-
ated with relatively few changes to the existing infrastruc-
ture and assets, since more potential customer needs are
met.
8 CROWD-
FUNDING
How
Value
Marillion (1997), Cassava
Films (1998), Diaspora
(2010), Brainpool (2011),
Pebble Technology
(2012)
A product, project or entire start-up is financed by a crowd
of investors who wish to support the underlying idea, typi-
cally via the Internet. If the critical mass is achieved, the
idea will be realized and investors receive special benefits,
usually proportionate to the amount of money they provid-
ed.
9. St. Gallen Business Model Navigator – www.bmi-lab.ch 6
No Pattern
name
Affected
BM
compo-
nents
Exemplary companies Pattern description
9 CROWD-
SOURCING
How
Value
Threadless (2000),
Procter & Gamble (2001),
InnoCentive (2001),
Cisco (2007), MyFab
(2008)
The solution of a task or problem is adopted by an anony-
mous crowd, typically via the Internet. Contributors receive
a small reward or have the chance to win a prize if their
solution is chosen for production or sale. Customer interac-
tion and inclusion can foster a positive relationship with a
company, and subsequently increase sales and revenue.
10 CUSTOMER
LOYALTY
What
Value
Sperry & Hutchinson
(1897), American Airlines
(1981), Safeway Club
Card (1995), Payback
(2000)
Customers are retained and loyalty assured by providing
value beyond the actual product or service itself, i.e.,
through incentive-based programs. The goal is to increase
loyalty by creating an emotional connection or simply
rewarding it with special offers. Customers are voluntarily
bound to the company, which protects future revenue.
11 DIGITIZA-
TION
What
How
Spiegel Online (1994),
WXYC (1994), Hotmail
(1996), Jones Internation-
al University (1996),
CEWE Color (1997),
SurveyMonkey (1998),
Napster (1999), Wikipe-
dia (2001), Facebook
(2004), Dropbox (2007),
Netflix (2008), Next Issue
Media (2011)
This pattern relies on the ability to turn existing products or
services into digital variants, and thus offer advantages
over tangible products, e.g., easier and faster distribution.
Ideally, the digitization of a product or service is realized
without harnessing the value proposition which is offered
to the customer. In other words: efficiency and multiplica-
tion by means of digitization does not reduce the perceived
customer value.
12 DIRECT
SELLING
What
How
Value
Vorwerk (1930), Tupper-
ware (1946), Amway
(1959), The Body Shop
(1976), Dell (1984),
Nestle Nespresso (1986),
First Direct (1989), Nestlé
Special.T (2010), Dollar
Shave Club (2012), Nestlé
BabyNes (2012)
Direct selling refers to a scenario whereby a company's
products are not sold through intermediary channels, but
are available directly from the manufacturer or service
provider. In this way, the company skips the retail margin
or any additional costs associated with the intermediates.
These savings can be forwarded to the customer and a
standardized sales experience established. Additionally,
such close contact can improve customer relationships.
13 E-
COMMERCE
What
How
Value
Dell (1984), Asos (2000),
Zappos (1999), Amazon
Store (1995), Flyeralarm
(2002), Blacksocks
(1999), Dollar Shave Club
(2012), Winebid (1996),
Zopa (2005)
Traditional products or services are delivered through
online channels only, thus removing costs associated with
running a physical branch infrastructure.
Customers benefit from higher availability and conven-
ience, while the company is able to integrate its sales and
distribution with other internal processes.
14 EXPERIENCE
SELLING
What
Who
Value
Harley Davidson (1903),
IKEA (1956), Trader
Joe's (1958), Starbucks
(1971), Swatch (1983),
Nestlé Nespresso (1986),
Red Bull (1987), Barnes
& Noble (1993), Nestlé
Special.T (2010)
The value of a product or service is increased with the
customer experience offered with it. This opens the door
for higher customer demand and commensurate increase in
prices charged. This means that the customer experience
must be adapted accordingly, e.g., by attuning promotion or
shop fittings.
15 FLAT RATE
What
Value
SBB (1898), Buckaroo
Buffet (1946), Sandals
Resorts (1981), Netflix
(1999), Next Issue Media
(2011)
In this model, a single fixed fee for a product or service is
charged, regardless of actual usage or time restrictions on
it. The user benefits from a simple cost structure while the
company benefits from a constant revenue stream.
16 FRAC-
TIONAL
OWNERSHIP
What
How
Value
Hapimag (1963), Netjets
(1964), Mobility Carshar-
ing (1997), écurie25
(2005), HomeBuy (2009)
Fractional ownership describes the sharing of a certain
asset class amongst a group of owners. Typically, the asset
is capital intensive but only required on an occasional basis.
While the customer benefits from the rights as an owner,
the entire capital does not have to be provided alone.
10. St. Gallen Business Model Navigator – www.bmi-lab.ch 7
No Pattern
name
Affected
BM
compo-
nents
Exemplary companies Pattern description
17 FRAN-
CHISING
What
How
Value
Singer Sewing Machine
(1860), McDonald's
(1948), Marriott Interna-
tional (1967), Starbucks
(1971), Subway (1974),
Fressnapf (1992),
Naturhouse (1992), McFit
(1997), BackWerk (2001)
The franchisor owns the brand name, products, and corpo-
rate identity, and these are licensed to independent fran-
chisees who carry the risk of local operations. Revenue is
generated as part of the franchisees’ revenue and orders.
The franchisees benefit from the usage of well known
brands, know-how, and support.
18 FREEMIUM
What
Value
Hotmail (1996), Survey-
Monkey (1998), LinkedIn
(2003), Skype (2003),
Spotify (2006), Dropbox
(2007)
The basic version of an offering is given away for free in
the hope of eventually persuading the customers to pay for
the premium version. The free offering is able to attract the
highest volume of customers possible for the company. The
generally smaller volume of paying ‘premium customers’
generate the revenue, which also cross-finances the free
offering.
19 FROM PUSH-
TO-PULL
What
How
Toyota (1975), Zara
(1975), Dell (1984),
Geberit (2000)
This pattern describes the strategy of a company to decen-
tralize and thus add flexibility to the company's processes
in order to be more customer focused. To quickly and
flexibly respond to new customer needs, any part of the
value chain - including production or even research and
development - can be affected.
20 GUARAN-
TEED AVAIL-
ABILITY
What
How
Value
NetJets (1964), PHH
Corporation (1986), IBM
(1995), Hilti (2000),
MachineryLink (2000),
ABB Turbo Systems
(2010)
Within this model, the availability of a product or service is
guaranteed, resulting in almost zero downtime. The cus-
tomer can use the offering as required, which minimizes
losses resulting from downtime. The company uses exper-
tise and economies of scale to lower operation costs and
achieve these availability levels.
21 HIDDEN
REVENUE
What
How
Value
JCDecaux (1964), Sat.1
(1984), Metro Newspaper
(1995), Google (1998),
Facebook (2004), Spotify
(2006), Zattoo (2007)
The logic that the user is responsible for the income of the
business is abandoned. Instead, the main source of revenue
comes from a third party, which cross-finances whatever
free or low-priced offering attracts the users. A very com-
mon case of this model is financing through advertisement,
where attracted customers are of value to the advertisers
who fund the offering. This concept facilitates the idea of
'separation between revenue and customer'.
22 INGREDIENT
BRANDING
What
How
Value
DuPont Teflon (1964),
W.L. Gore & Associates
(1976), Intel (1991), Carl
Zeiss (1995), Shimano
(1995), Bosch(2000)
Ingredient branding describes the specific selection of an
ingredient, component, and brand originating from a specif-
ic supplier, which will be included in another product. This
product is then additionally branded and advertised with the
ingredient product, collectively adding value for the cus-
tomer. This projects the positive brand associations and
properties on the product, and can increase the attractive-
ness of the end product.
23 INTEGRATOR
What
How
Carnegie Steel (1870),
Ford (1908), Zara (1975),
Exxon Mobil (1999),
BYD Auto (1995)
An integrator is in command of the bulk of the steps in a
value-adding process. The control of all resources and
capabilities in terms of value creation lies with the compa-
ny. Efficiency gains, economies of scope, and lower de-
pendencies from suppliers result in a decrease in costs and
can increase the stability of value creation.
11. St. Gallen Business Model Navigator – www.bmi-lab.ch 8
No Pattern
name
Affected
BM
compo-
nents
Exemplary companies Pattern description
24 LAYER
PLAYER
How
Value
Dennemeyer (1962),
Wipro Technologies
(1980), TRUSTe (1997),
PayPal (1998), Amazon
Web Services (2002)
A layer player is a specialized company limited to the
provision of one value-adding step for different value
chains. This step is typically offered within a variety of
independent markets and industries. The company benefits
from economies of scale and often produces more efficient-
ly. Further, the established special expertise can result in a
higher quality process.
25 LEVERAGE
CUSTOMER
DATA
What
How
Amazon Store (1995),
Google (1998), Payback
(2000), Facebook (2004),
PatientsLikeMe (2004),
23andMe (2006), Twitter
(2006), Verizon Commu-
nications (2011)
New value is created by collecting customer data and pre-
paring it in beneficial ways for internal usage or interested
third-parties. Revenues are generated by either selling this
data directly to others or leveraging it for own purposes,
i.e., to increase the effectiveness of advertising.
26 LICENSE
How
Value
BUSCH (1870), IBM
(1920), DIC 2 (1973),
ARM (1989), Duales
System Deutschland
(1991), Max Havelaar
(1992)
Efforts are focused on developing intellectual property that
can be licensed to other manufacturers. This model, there-
fore, relies not on the realization and utilization of
knowledge in the form of products, but attempts to trans-
form these intangible goods into money. This allows a
company to focus on research and development. It also
allows the provision of knowledge, which would otherwise
be left unused and potentially be valuable to third parties.
27 LOCK-IN
What
How
Value
Gillette(1904), Lego
(1949), Microsoft (1975),
Hewlett-Packard (1984),
Nestlé Nespresso (1986),
Nestlé BabyNes (2012),
Nestlé Special.T (2010)
Customers are locked into a vendor's world of products and
services. Using another vendor is impossible without incur-
ring substantial switching costs, and thus protecting the
company from losing customers. This lock-in is either
generated by technological mechanisms or substantial
interdependencies of products or services.
28 LONG TAIL
How
Value
Amazon Store (1995),
eBay (1995), Netflix
(1999), Apple
iPod/iTunes (2003),
YouTube (2005),
Instead of concentrating on blockbusters, the main bulk of
revenues is generated through a 'long tail' of niche prod-
ucts. Individually, these neither demand high volumes, nor
allow for a high margin. If a vast variety of these products
are offered in sufficient amounts, the profits from resultant
small sales can add up to a significant amount.
29 MAKE MO-
RE OF IT
Who
What
How
Value
Porsche (1931), Festo
Didactic (1970), BASF
(1998), Amazon Web
Services (2002), Senn-
heiser Sound Academy
(2009)
Know-how and other available assets existing in the com-
pany are not only used to build own products, but also
offered to other companies. Slack resources, therefore, can
be used to create additional revenue besides those generat-
ed directly from the core value proposition of the company.
30 MASS
CUSTOM-
IZATION
What
Value
Dell (1984), Levi's
(1990), Miadidas (2000),
PersonalNOVEL (2003),
Factory121 (2006),
mymuesli (2007), My
Unique Bag (2010)
Customizing products through mass production once
seemed to be an impossible endeavor. The approach of
modular products and production systems has enabled the
efficient individualization of products. As a consequence,
individual customer needs can be met within mass produc-
tion circumstances and at competitive prices.
31 NO FRILLS
How
What
Value
Ford (1908), Aldi (1913),
McDonald's (1948),
Southwest Airlines
(1971), Aravind Eye care
System (1976), Accor
(1985), McFit (1997),
Dow Corning (2002)
Value creation focuses on what is necessary to deliver the
core value proposition of a product or service, typically as
basic as possible. Cost savings are shared with the custom-
er, usually resulting in a customer base with lower purchas-
ing power or purchasing willingness.
12. St. Gallen Business Model Navigator – www.bmi-lab.ch 9
No Pattern
name
Affected
BM
compo-
nents
Exemplary companies Pattern description
32 OPEN BUSI-
NESS MODEL
What
Who
Value
Valve Corporation
(1998), Abril (2008)
In open business models, collaboration with partners in the
ecosystem becomes a central source of value creation.
Companies pursuing an open business model actively
search for novel ways of working together with suppliers,
customers, or complementors to open and extend their
business.
33 OPEN
SOURCE
Who
What
How
Value
IBM (1955), Mozilla
(1992), Red Hat (1993),
mondoBIOTECH (2000),
Wikipedia (2001), Local
Motors (2008)
In software engineering, the source code of a software
product is not kept proprietary, but is freely accessible for
anyone. Generally, this could be applied to any technology
details of any product. Others can contribute to the product,
but also use it free as a sole user. Money is typically earned
with services that are complimentary to the product, such as
consulting and support.
34 ORCHE-
STRATOR
How
Value
Procter & Gamble (1970),
Li & Fung (1971), Nike
(1978), Bharti Airtel
(1995)
Within this model, the company's focus is on the core
competencies in the value chain. The other value chain
segments are outsourced and actively coordinated. This
allows the company to reduce costs and benefit from the
suppliers' economies of scale. Furthermore, the focus on
core competencies can increase performance.
35 PAY PER
USE
What
How
Value
Hot Choice (1988),
Google (1998), Ally
Financial (2004), Better
Place (2007), Car2Go
(2008)
In this model, the actual usage of a service or product is
metered. The customer pays on the basis of what he or she
effectively consumes. The company is able to attract cus-
tomers who wish to benefit from the additional flexibility,
which might be priced higher.
36 PAY WHAT
YOU WANT
How
Value
One World Everbody Eats
(2003), NoiseTrade
(2006), Radiohead (2007),
Humble Bundle (2010),
Panera Bread Bakery
(2010)
The buyer pays any desired amount for a given commodity,
sometimes even zero. In some cases, a minimum floor price
may be set, and/or a suggested price may be indicated as
guidance for the buyer. The customer is allowed to influ-
ence the price, while the seller benefits from higher num-
bers of attracted customers, since individuals’ willingness
to pay is met. Based on the existence of social norms and
morals, this is only rarely exploited, which makes it suita-
ble to attract new customers.
37 PEER-TO-
PEER
What
Value
eBay (1995), Craigslist
(1996), Napster (1999),
Couchsurfing (2003),
LinkedIn (2003), Skype
(2003), Zopa (2005),
SlideShare (2006), Twit-
ter (2006), Dropbox
(2007), Airbnb (2008),
TaskRabbit (2008), Re-
layRides (2010), Gidsy
(2011)
This model is based on a cooperation that specializes in
mediating between individuals belonging to an homogene-
ous group. It is often abbreviated as P2P. The company
offers a meeting point, i.e., an online database and commu-
nication service that connects these individuals (these could
include offering personal objects for rent, providing certain
products or services, or the sharing of information and
experiences).
38 PERFOR-
MANCE-
BASED
CONTRAC-
TING
What
Value
Rolls-Royce (1980),
Smartville (1997), BASF
(1998), Xerox (2002)
A product's price is not based upon the physical value, but
on the performance or valuable outcome it delivers in the
form of a service. Performance based contractors are often
strongly integrated into the value creation process of their
customers. Special expertise and economies of scale result
in lower production and maintenance costs of a product,
which can be forwarded to the customer. Extreme variants
of this model are represented by different operation
schemes in which the product remains the property of the
company and is operated by it.
13. St. Gallen Business Model Navigator – www.bmi-lab.ch 10
No Pattern
name
Affected
BM
compo-
nents
Exemplary companies Pattern description
39 RAZOR AND
BLADE
What
How
Who
Standard Oil Company
(1880), Gillette (1904),
Hewlett-Packard (1984),
Nestlé Nespresso (1986),
Apple iPod/iTunes
(2003), Amazon Kindle
(2007), Better Place
(2007), Nestlé Special.T
(2010), Nestlé BabyNes
(2012)
The basic product is cheap or given away for free. The
consumables that are needed to use or operate it, on the
other hand, are expensive and sold at high margins. The
initial product's price lowers customers’ barriers to pur-
chase, while the subsequent recurring sales cross-finance it.
Usually, these products are technologically bound to each
other to further enhance this effect.
40 RENT
INSTEAD OF
BUY
What
How
Value
Saunders System (1916),
Xerox (1959), Block-
buster (1985), Rent a Bike
(1987), Mobility Carshar-
ing (1997), MachineryL-
ink (2000), CWS-boco
(2001), Luxusbabe
(2006), Flexpetz (2007),
Car2Go(2008)
The customer does not buy a product, but instead rents it.
This lowers the capital typically needed to gain access to
the product. The company itself benefits from higher prof-
its on each product, as it is paid for the duration of the
rental period. Both parties benefit from higher efficiency in
product utilization as time of non-usage, which unneces-
sarily binds capital, is reduced on each product.
41 REVENUE
SHARING
What
How
Value
CDnow (1994), HubPag-
es(2006), Apple iPh-
one/AppStore(2008),
Groupon (2008)
Revenue sharing refers to firms’ practice of sharing reve-
nues with their stakeholders, such as complementors or
even rivals. Thus, in this business model, advantageous
properties are merged to create symbiotic effects in which
additional profits are shared with partners participating in
the extended value creation. One party is able to obtain a
share of revenue from another that benefits from increased
value for its customer base.
42 REVERSE
ENGINEER-
ING
What
Value
Bayer (1897), Pelikan
(1994), Brilliance China
Auto (2003), Denner
(2010)
This pattern refers to obtaining a competitor's product,
taking it apart, and using this information to produce a
similar or compatible product. Because no huge investment
in research or development is necessary, these products can
be offered at a lower price than the original product.
43 REVERSE
INNOVATION
What
Value
Logitech (1981), Haier
(1999), Nokia (2003),
Renault (2004), General
Electric (2007)
Simple and inexpensive products, that were developed
within and for emerging markets, are also sold in industrial
countries. The term ‘reverse’ refers to the process by which
new products are typically developed in industrial countries
and then adapted to fit emerging market needs.
44 ROBIN
HOOD
How
What
Aravind Eye Care System
(1976), One Laptop per
Child (2005), TOMS
Shoes (2006), Warby
Parker (2008)
The same product or service is provided to ‘the rich’ at a
much higher price than to ‘the poor’. Thus, the main bulk
of profits are generated from the wealthy customer base.
Serving ‘the poor’ is not profitable per se, but creates econ-
omies of scale, which other providers cannot achieve.
Additionally, it has a positive effect on the company's
image.
45 SELF-
SERVICE
What
How
McDonald's (1948),
IKEA (1956), Accor
(1985), Mobility Carshar-
ing (1997), BackWerk
(2001), Car2Go (2008)
A part of the value creation is transferred to the customer in
exchange for a lower price of the service or product. This is
particularly suited for process steps that add relatively little
perceived value for the customer, but incur high costs.
Customers benefit from efficiency and time savings, while
putting in their own effort. This can also increase efficien-
cy, since in some cases, the customer can execute a value-
adding step more quickly and in a more target-oriented
manner than the company.
14. St. Gallen Business Model Navigator – www.bmi-lab.ch 11
No Pattern
name
Affected
BM
compo-
nents
Exemplary companies Pattern description
46 SHOP-IN-
SHOP
Who
Value
Tim Hortons (1964),
Tchibo (1987), Deutsche
Post (1995), Bosch
(2000), MinuteClinic
(2000)
Instead of opening new branches, a partner is chosen whose
branches can profit from integrating the company's offer-
ings in a way that imitates a small shop within another shop
(a win-win situation). The hosting store can benefit from
more attracted customers and is able to gain constant reve-
nue from the hosted shop in the form of rent. The hosted
company gains access to cheaper resources such as space,
location, or workforce.
47 SOLUTION
PROVIDER
What
How
Lantal Textiles (1954),
Heidelberger
Druckmaschinen (1980),
Tetra Pak (1993), Geek
Squad (1994), CWS-boco
(2001), Apple
iPod/iTunes (2003), 3M
Services (2010)
A full service provider offers total coverage of products
and services in a particular domain, consolidated via a
single point of contact. Special know-how is given to the
customer in order to increase his or her efficiency and
performance. By becoming a full service provider, a com-
pany can prevent revenue losses by extending their service
and adding it to the product. Additionally, close contact
with the customer allows great insight into customer habits
and needs which can be used to improve the products and
services.
48 SUB-
SCRIPTION
How
What
Blacksocks (1999), Net-
flix (1999), Salesforce
(1999), Jamba (2004),
Spotify (2006), Next Issue
Media (2011), Dollar
Shave Club (2012)
The customer pays a regular fee, typically on a monthly or
an annual basis, in order to gain access to a product or
service. While customers mostly benefit from lower usage
costs and general service availability, the company gener-
ates a more steady income stream.
49 SUPER-
MARKET
What
Value
King Kullen Grocery
Company (1930), Merrill
Lynch (1930),
Toys“R”Us (1948), The
Home Depot (1978), Best
Buy (1983), Fressnapf
(1985), Staples (1986)
A company sells a large variety of readily available prod-
ucts and accessories under one roof. Generally, the assort-
ment of products is large but the prices are kept low. More
customers are attracted due to the great range on offer,
while economies of scope yield advantages for the compa-
ny.
50 TARGET THE
POOR
What
How
Value
Grameen Bank (1983),
Arvind Mills (1995),
Bharti Airtel (1995),
Hindustan Unilever
(2000), Tata Nano (2009),
Walmart (2012)
The product or service offering does not target the premium
customer, but rather, the customer positioned at the base of
the pyramid. Customers with lower purchasing power
benefit from affordable products. The company generates
small profits with each product sold, but benefits from the
higher sales numbers that usually come with the scale of
the customer base.
51 TRASH-TO-
CASH
Who
What
How
Value
Duales System Deutsch-
land (1991), Freitag
lab.ag (1993), Greenwire
(2001), Emeco (2010),
H&M (2012)
Used products are collected and either sold in other parts of
the world or transformed into new products. The profit
scheme is essentially based on low-to-no purchase prices.
Resource costs for the company are practically eliminated,
whilst the supplier's waste disposal is either provided, or
associated costs are reduced. This also addresses custo-
mers’ potential environmental awareness ideals.
52 TWO-SIDED
MARKET
What
How
Value
Diners Club (1950),
JCDecaux (1964), Sat.1
(1984), Amazon Store
(1995), eBay (1995),
Metro Newspaper (1995),
Priceline (1997), Google
(1998), Facebook (2004),
MyHammer(2005),
Elance (2006), Zattoo
(2007), Groupon (2008)
A two-sided market facilitates interactions between multi-
ple interdependent groups of customers. The value of the
platform increases as more groups or as more individual
members of each group are using it. The two sides usually
come from disparate groups, e.g., businesses and private
interest groups.
15. St. Gallen Business Model Navigator – www.bmi-lab.ch 12
No Pattern
name
Affected
BM
compo-
nents
Exemplary companies Pattern description
53 ULTIMATE
LUXURY
What
Value
Lamborghini (1962),
Jumeirah Group (1994),
MirCorp (2000), The
World (2002), Abbot
Downing (2011)
This pattern describes the strategy of a company to focus
on the upper side of society's pyramid. This allows a com-
pany to distinguish its products or services greatly from
others. High standards of quality or exclusive privileges are
the main focus to attract these kinds of customers. The
necessary investments for these differentiations are met by
the relatively high prices that can be achieved - which
usually allow for very high margins.
54 USER DE-
SIGNED
What
How
Value
Spreadshirt (2001), Lulu
(2002), Lego Factory
(2005), Amazon Kindle
(2007), Ponoko (2007),
Apple iPhone/AppStore
(2008), Createmytattoo
(2009), Quirky (2009)
Within user manufacturing, a customer is both the manu-
facturer and the consumer. As an example, an online plat-
form provides the customer with the necessary support in
order to design and merchandise the product, e.g., product
design software, manufacturing services, or an online shop
to sell the product. Thus, the company only supports the
customers in their undertakings and benefits from their
creativity. The customer benefits from the potential to
realize entrepreneurial ideas without having to provide the
required infrastructure. Revenue is then generated as part of
the actual sales.
55 WHITE
LABEL
What
How
Foxconn (1974), Riche-
lieu Foods (1994), Print-
ing-In-A-Box (2005)
A white label producer allows other companies to distribute
its goods under their brands, so that it appears as if they are
made by them. The same product or service is often sold by
multiple marketers and under different brands. This way,
various customer segments can be satisfied with the same
product.
16. St. Gallen Business Model Navigator – www.bmi-lab.ch 13
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17. St. Gallen Business Model Navigator – www.bmi-lab.ch 14
Testimonials
The St. Gallen Business Model NavigatorTM
has been applied successfully in numerous enterprises. The following are
testimonials from individuals who have worked with our methodology:
“For Bosch it will become increasingly important to not only develop excellent products, but to also exploit new busi-
ness models. The 55 business model types that are enumerated and presented here are an excellent tool kit with which
to develop our own business models, especially in regards to the Internet of things and services.”
Dr. Heinz Derenbach, CEO of Bosch Software Innovations GmbH
“These patterns are a very powerful creativity method and a great tool to generate a ‘business model thinking’ atti-
tude.”
Dr. Angela Beckenbauer, Corporate Innovation Manager, Hilti
“The St. Gallen Business Model NavigatorTM
provides a structured approach to the fuzzy field of business model inno-
vation. The 55 patterns make it easy to think about alternative ways of running your business.”
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“Reducing the world to 55 business models? At first it seems impossible, but on closer inspection these models are a
great source of inspiration; they allow us to innovate our own business model and to bring it into the future. The book
is a must-read!”
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18. St. Gallen Business Model Navigator – www.bmi-lab.ch 15
“The St. Gallen Business Model NavigatorTM
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Thanks to the Business Model NavigatorTM
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with its tools, strategy, and visualizations are a perfect compliment to the ’Fore-
sight 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