Business Model Generation was written by Alexander Osterwalder and Yves Pigneur, with contributions from some 470 practitioners. Of the business books I’ve read, this is one of my all time favourites. Practical, implementable, really nicely written and presented with lots of images. It’s an easy read and a great way to start disrupting business models. I recommend it.
I posted on the Business Model Canvas a while back. This week, I’ll be looking through their application of the canvas across a number of different business model patterns. As with my other posts, I’ll try to present my thinking as simply, and clearly as I can along with some insights as to how the patterns work and a little exploration of how we might apply these patterns in the name of creative thinking.
Business Model generation talk about 5 key business model patterns. I’ll walk through them in the following three groups:
- Unbundled: some business models are a bit of a mish mash of competing entities with different core business, employee motivation and interactions with the market. These business models can be unbundled to clear up this focal problem, illustrated with the splitting up of banks into transaction processing houses, customer relationship businesses and banking product creators
- Multi-sided and free: business models with multiple, complementary value propositions and consumer segments used to support each other. Illustrated with the example of free services to end users subsidised through advertising
- Open and collaborative: business model which reach outside of company boundaries to help define product and service offerings, illustrated with a range of businesses from fashion boutiques offering ‘design your own’ services to detergent manufacturers seeking new formulas from the open research community