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The Business Model Navigator

A strong business model is the bedrock to business success. But all too often we fail to adapt, clinging to outdated models that are no longer delivering the results we need. The brains behind The Business Model Navigator have discovered that just 55 business models are responsible for 90% of the world's most successful businesses. These 55 models - from the Add-On model used by Ryanair to the Subscription model used by Spotify - provide the blueprints you need to revolutionise your business and drive powerful change. As well as providing a practical framework for adapting and innovating your business model, this book also includes each of the 55 models in a quick-read format that covers: * What it is * Who invented it and who uses it now * When and how to apply it "An excellent toolkit for developing your business model." Dr Heinz Derenbach, CEO, Bosch Software Innovations
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Table of Contents

PART I 1. The Business Model NavigatorThe logic of business modelsThe age of business model innovationsElements of a business modelChallenging industry thinking 2. Business Model Navigation PrinciplesKnow this: Creative imitation and the role of recombinationInitiation: Analyze your environmentIdeation: adapting patternsIntegration: Shaping your business modelImplementation: Realizing your plan 3. Change ManagementPromoting changeDefining your line of attackDefining structures, processes, and goalsBuilding competenciesCulture as a change-driver PART II: The 55 Business Model Innovation Patterns 1 ADD-ON - Charge for Extras2 AFFILIATION - Partner Success = Own Success3 AIKIDO - Convert Competitors' Strengths to Weaknesses4 AUCTION - Going once, going twice... sold!5 BARTER - By-Products as a Bonus6 CASH MACHINE - "Coining" Money with Negative Working Capital7 CROSS SELLING - Two Birds with One Stone8 CROWDFUNDING - Swarm Financing9 CROWDSOURCING - Outsourcing to Swarms10 CUSTOMER LOYALTY - Rewards for Enduring Loyalty11 DIGITIZATION - Digitizing Physical Products12 DIRECT SELLING - Skipping Middlemen13 E-COMMERCE - Online Transparency and Cost Reductions14 EXPERIENCE SELLING - Emotionalizing Products15 FLAT RATE - Unlimited Consumption at a Fixed Price16 FRACTIONAL OWNERSHIP - Share Ownership and Use Efficiently17 FRANCHISING - One for All and All for One18 FREEMIUM - Free Basic and Paid Premium Versions19 FROM PUSH-TO-PULL - Customers Create a Maelstrom to Attract Value20 GUARANTEED AVAILABILITY - Product Access is a Certainty 21 HIDDEN REVENUE - Separating Revenues from Customers22 INGREDIENT BRANDING - Brand-in-Brand23 INTEGRATOR - Value Added Through Integration24 LAYER PLAYER - Layer Specialist25 LEVERAGE CUSTOMER DATA - Varied Use of Customer Data26 LICENSE - Commercializing Intellectual Property27 LOCK-IN - High Switching Costs Force Loyalty28 LONG TAIL - Little and Often Fills the Purse29 MAKE MORE OF IT - Multiply Competencies outside Your Core Business30 MASS CUSTOMIZATION - Off the Rack Individualism31 NO FRILLS - Everything, Except Expensive32 OPEN BUSINESS MODEL - Leverage Collaborative Value Creation33 OPEN SOURCE - Creating a Free Solution Together34 ORCHESTRATOR - Direct the Value Chain35 PAY PER USE - Consumption-Based Fees36 PAY WHAT YOU WANT - What is its Worth to You?37 PEER-TO-PEER - From Person to Person38 PERFORMANCE-BASED CONTRACTING - Results-Based Fees39 RAZOR AND BLADE - Bait and Hook40 RENT INSTEAD OF BUY - Purchase a Temporary Right to Use41 REVENUE SHARING - Split Symbiotic Returns42 REVERSE ENGINEERING - Quickly Learn from Competitors43 REVERSE INNOVATION - Learn from Quick and Dirty Solutions44 ROBIN HOOD - Take from the Rich and Give to the Poor45 SELF-SERVICE - Working Customers46 SHOP-IN-SHOP - Piggy-Backing47 SOLUTION PROVIDER - One Stop Shop48 SUBSCRIPTION - Subscribe to Services49 SUPERMARKET - Huge Selection, Tiny Prices50 TARGET THE POOR - Customers at the Base of the Earnings Pyramid51 TRASH-TO-CASH - Monetize Garbage52 TWO-SIDED MARKET - Attract Indirect Network Effects53 ULTIMATE LUXURY - More for More Strategy54 USER DESIGNED - Customers Become Inventive Entrepreneurs55 WHITE LABEL - Own Brand Strategy PART III: AppendixGlossaryAll business model patterns at a glanceFurther reading

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90% of the world's strongest business innovations spring from just 55 different business models - here they are in one book.

About the Author

Prof. Dr. Oliver Gassmann is professor of Technology Management at the University of St. Gallen, Switzerland, and Managing Director of the organisation. He is ranked one of the 5 top-most cited professors by the German Academic Association for Business Research and is one of the most influential economists in Germany, as well as one of IAMOT's top 45 researchers worldwide. Dr. Karolin Frankenberger is an assistant professor at the Institute of Technology Management, University of St.Gallen, Switzerland. Before joining the institute, she was a consultant at McKinsey & Company for several years, helping various clients in topics such as business model innovation and strategic change. Michaela Csik works as an Innovation Manager at Hocim Technology Ltd, Switzerland. Previously, she was a Senior Consultant at the BMI-lab as well as a Research Associate at the Institute of Technology Management and at the Center for Design Research at Stanford University.

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