Propose New Business Model Patterns to Describe and Discuss

The term pattern comes from architecture and stands for the idea of capturing architectural design ideas as archetypal and reusable descriptions. In Business Model Generation we tried to do the same for business models: we described archetypal business models by using the Business Model Canvas as a shared language.


In Business Model Generation we limited ourselves to sketching out five business model patterns built on important concepts in the business literature. Of course, many more business model patterns are imaginable.


To qualify as a business model pattern a business model should have similar...

  • characteristics
  • business model building blocks (e.g. the same key activities, resources, etc.)
  • arrangements of business model building blocks (e.g. the same combination of revenue streams, customers, and value propositions)
  • behaviors

Which business model patterns should we try to describe and discuss on the Business Model Innovation Hub?

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Permalink Reply by Norbert Herman on December 16, 2011 at 3:56am

Hi Daniel, I'm came across the slideshareyou posted above and I found the simplicity of these models to be very powerful in conveying the essence / summary of the business model canvas. Is that how you also benefited from this slideshare? Does anyone else have any input on how you gather your thoughts and present them to the decision making team for funding? Its been my experience that using the canvas to talk through the proposed/derived business model is too confusing because a lot of time the senior executive team did not have the background in understanding the canvas. Any comments are greatly appreciated.

Permalink Reply by Teicko Huber on May 31, 2011 at 2:39pm

I'd like to see the description of private public business models.

More specifically, I'd like to see the canvas for selling capital equipment to government.

 

Permalink Reply by SK Jeon on August 11, 2011 at 1:44am
We may go back to the original books on design patterns by Christopher Alexander, The Timeless Way of Building(volume 1), A Pattern Language(Volume 2) of the Center for Environmental Structure series. You have IT background then the Design Patterns and Process Patterns are the similar concepts stemmed from Alexander's work. In this e-business world, more like a K-business world after Knowledge, business model is itself business process/software process model so process modeller/designer should be in the modelling process from the beginning.
Permalink Reply by Graham Meaden on October 3, 2011 at 1:43pm

Here is a pattern I encounter frequently in my travels.

 

Pattern Name: 

Location, Location, Location.

 

Summary

This business model is based upon the premise that the product or service that does not necessarily require repeat business to be sustainable.  The volume of potential customers passing by is sufficient to sustain the revenue stream(s). 

 

Characteristics

The "location-bound" business operates within a prime location that creates "captive" micro-market that thus presents no alternative to the customer within the planned purchase timeframe. The proposition probably needs to be unique within the location (primarily to secure its sub-lease).  Can lead to high-profitability.

 

Arrangements

No specific building block arrangements. See behavior.

 

Behavior

The business does not need to sell on: higher quality or service; the lowest price; just "good enough".

 

Examples

Transport Hubs (e.g. airports, railway terminals)

Tourist attractions

Entertainment events (e.g. football matches, concerts)

 

Notes

In this pattern, the business's value proposition is secondary to the customer.  The customer is "in the location" for a more compelling value proposition.  The customer's tolerance to the pain of this secondary value proposition is higher because its dis-benefits are outweighed by the benefits received from the primary value proposition.

 

Antithesis Pattern

"Off the beaten track".  

 

Characteristics

In this business model, the "location-bound" business is compelled to provide superior service because it cannot rely on "passing customers".  It must attract through reputation and other means.

 

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