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Business Model Pattern

The document outlines 5 common business model patterns: 1. Unbundling, which separates a company into customer relationship, product innovation, and infrastructure businesses. 2. The long tail, which focuses on selling large numbers of niche products that each sell infrequently. 3. Multi-sided platforms, which connect two or more interdependent customer groups and increase in value as more users join. 4. Free as a business model, which offers at least one substantial customer segment free access, financed by other revenue. 5. Open business models, which collaborate with external partners by exploiting outside ideas internally and providing idle assets externally.

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Yasmin Asranda
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62 views

Business Model Pattern

The document outlines 5 common business model patterns: 1. Unbundling, which separates a company into customer relationship, product innovation, and infrastructure businesses. 2. The long tail, which focuses on selling large numbers of niche products that each sell infrequently. 3. Multi-sided platforms, which connect two or more interdependent customer groups and increase in value as more users join. 4. Free as a business model, which offers at least one substantial customer segment free access, financed by other revenue. 5. Open business models, which collaborate with external partners by exploiting outside ideas internally and providing idle assets externally.

Uploaded by

Yasmin Asranda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Business Model

Pattern
Ina A. Murwani
11 January 2018
The Business Model Pattern
• Unbundling
• The long tail
• Multi sided platform
• Free as Business Model
• Open Business Model
The Business Model Pattern #1
PATTERN DEFINITION

• Unbundling Business Models • Unbundled corporations with three fundamentally


different types of businesses
– Customer Relationship Businesses
• E.g. Mobile telcom industry, private
– Product Innovation Businesses
bandking industry
– Infrastructure Businesses

• Each of type has different economic, competitive and


cultural imperatives

• And all of types may co-exist within a single


corporation.

• But ideally, they are unbundled.


The Business Model Pattern #2
PATTERN DEFINITION

• Long Tail • Selling less of more

• Focus on a large number of niche products,


each of which sells relatively infrequently.
• E.g. eBay, Lego • Aggregate sales of niche items can be
lucrative as the traditional model whereby a
small number of bestsellers account for
most revenues

• Longtail models require low inventory costs


and strong platforms to make niche content
readily available to interested buyers.
The Business Model Pattern #3
PATTERN DEFINITION

• Multi-sided Platforms • Multisided platforms bring together two or


more distinct but interdependent groups of
• e.g : Visa, Google, eBay, Microsoft customers
Windows
• Such platforms are of value to one group of
customers only if the other groups of
customer are also present

• The platform creates value by facilitating


interactions between the different groups.

• A multi-sided platform grows in value to


the extent that it attracts more users, a
phenomenon known as the network effect.
The Business Model Pattern #4
PATTERN DEFINITION

• Free as a Business Model • In the FREE Business Model at least


one substantial Customer Segment is
able to continuously benefit from a
free of charge offer
• e.g : Google, Flickr, Skype
• Different patterns make the free offer
possible.
• Non-paying customers are financed
by another part of the business
model or by another Customer
Segment
The Business Model Pattern #5
PATTERN DEFINITION

• Open Business Model • To create and capture value by


systematically collaborating with
outside partners
• E.g : P&G, GlaxoSmithKline • Outside – in :
– Exploiting external ideas within the
firm,

• Inside –out
– Providing external parties with ideas
or assets lying idle within the firm
Good Luck !

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