Demonstration Site of the WUMM Social Network

Business Model Patterns

The following Business Model Patterns are derived from the St. Gallen Business Model Navigator and partly enriched from other sources.

AddOn

de: Zugabe
en: Add-On

Note

de: Das Kernangebot ist preislich wettbewerbsfähig, aber es gibt zahlreiche Extras, die den Endpreis in die Höhe treiben. Am Ende zahlt der Kunde mehr, als er ursprünglich angenommen hat. Die Kunden profitieren von einem variablen Angebot, das sie an ihre spezifischen Bedürfnisse anpassen können.
en: 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. Customers benefit from a variable offer, which they can adapt to their specific needs.
ru: Основное предложение имеет конкурентоспособную цену, но существует множество дополнительных услуг, которые увеличивают конечную цену. В итоге потребитель платит больше, чем предполагал изначально. Клиенты выигрывают от переменного предложения, которое они могут адаптировать к своим конкретным потребностям.

Affected BM Components: Value, What

Affiliation

de: Zugehörigkeit
en: Affiliation
ru: Аффилиация

Note

de: Der Schwerpunkt liegt darin, andere dabei zu unterstützen, Produkte erfolgreich zu verkaufen und direkt von erfolgreichen Transaktionen zu profitieren. Die Affiliates profitieren in der Regel von einer Art Pay-per-Sale- oder Pay-per-Display-Vergütung. Das Unternehmen wiederum erhält Zugang zu einem breiteren potenziellen Kundenstamm ohne zusätzliche aktive Verkaufs- oder Marketinganstrengungen.
en: 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.
ru: Основное внимание уделяется поддержке других людей в успешной продаже товаров и непосредственной выгоде от успешных сделок. Аффилированные лица обычно получают прибыль в виде вознаграждения за продажу или за показ. С другой стороны, компания получает доступ к более разнообразной потенциальной клиентской базе без дополнительных активных продаж или маркетинговых усилий.

Affected BM Components: How, Value

Aikido

de: Aikido
en: Aikido
ru: Айкидо

Note

de: Aikido ist eine japanische Kampfsportart, bei der die Kraft des Angreifers gegen ihn eingesetzt wird. Als Geschäftsmodell ermöglicht es Aikido einem Unternehmen, etwas anzubieten, das dem Image und der Denkweise der Konkurrenz diametral entgegengesetzt ist. Dieses neue Wertversprechen zieht Kunden an, die Ideen oder Konzepte bevorzugen, die sich vom Mainstream abheben.
en: 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.

Affected BM Components: Value, What, Who

Auction

de: Versteigerung
en: Auction
ru: Аукцион

Note

en: Auctioning means selling a product or service to the highest 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.

Affected BM Components: Value, What

Barter

de: Tauschhandel
en: Barter
ru: Бартер

Note

en: 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 sponsoring organisation. The exchange does not have to show any direct connection and is valued differently by each party.

Affected BM Components: Value, What

CashMachine

de: Geldautomat
en: Cash Machine

Note

en: 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 increased liquidity which can be used to amortise debt or to fund investments in other areas.

Affected BM Components: Value, How

CrossSelling

de: Cross Selling
en: Cross Selling
ru: Перекрестные продажи

Note

en: In this model, services or products from a formerly excluded industry are added to the offerings, thus leveraging existing key skills and resources. In retail especially, companies 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 generated with relatively few changes to the existing infrastructure and assets, since more potential customer needs are met.

Affected BM Components: Value, How, What

CrowdFunding

de: Crowd-Funding
en: Crowd-Funding

Note

en: A product, project or entire start-up is financed by a crowd of investors who wish to support the underlying idea, typically 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 provided.

Affected BM Components: Value, How

CrowdSourcing

de: Crowd-Sourcing
en: Crowd-Sourcing

Note

en: The solution of a task or problem is adopted by an anonymous 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 interaction and inclusion can foster a positive relationship with a company, and subsequently increase sales and revenue.

Affected BM Components: Value, How

CustomerLoyalty

de: Kundentreue
en: Customer Loyalty
ru: Лояльность клиентов

Note

en: 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.

Affected BM Components: Value, What

Digitisation

de: Digitalisierung
en: Digitisation

Note

en: 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 multiplication by means of digitization does not reduce the perceived customer value.

Affected BM Components: How, What

DirectSelling

de: Direktvertrieb
en: Direct Selling
ru: Прямые продажи

Note

en: 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.

Affected BM Components: How, Value, What

ECommerce

de: Elektronischer Handel
en: E-Commerce
ru: Электронная коммерция

Note

en: 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 convenience, while the company is able to integrate its sales and distribution with other internal processes.

Affected BM Components: How, Value, What

ExperienceSelling

de: Erlebnis Verkaufen
en: Experience Selling

Note

en: 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.

Affected BM Components: Value, What, Who

FlatRate

de: Pauschalpreis
en: Flat Rate

Note

en: 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.

Affected BM Components: Value, What

FractionalOwnership

de: Bruchteilseigentum
en: Fractional Ownership
ru: Дробное владение

Note

en: 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.

Affected BM Components: How, Value, What

Franchising

de: Franchising
en: Franchising
ru: Франчайзинг

Note

en: The franchisor owns the brand name, products, and corporate identity, and these are licensed to independent franchisees 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.

Affected BM Components: How, Value, What

Freemium

de: Freemium
en: Freemium

Note

en: 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.

Affected BM Components: Value, What

FromPushToPull

de: Von Push zu Pull
en: From Push to Pull

Note

en: This pattern describes the strategy of a company to decentralize 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.

Affected BM Components: How, What

GuaranteedAvailability

de: Garantierte Verfügbarkeit
en: Guarateed Availability
ru: Гарантированная доступность

Note

en: Within this model, the availability of a product or service is guaranteed, resulting in almost zero downtime. The customer can use the offering as required, which minimizes losses resulting from downtime. The company uses expertise and economies of scale to lower operation costs and achieve these availability levels.

Affected BM Components: Value, How, What

HiddenRevenue

de: Versteckte Einnahmen
en: Hidden revenue
ru: Скрытый доход

Note

en: 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 common 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'.

Affected BM Components: Value, How, What

IngredientBranding

de: Werbung mit Inhalt
en: Ingredient Branding
ru: Брендинг ингредиентов

Note

en: Ingredient branding describes the specific selection of an ingredient, component, and brand originating from a specific 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 customer. This projects the positive brand associations and properties on the product, and can increase the attractiveness of the end product.

Affected BM Components: Value, How, What

Integrator

de: Integrator
en: Integrator
ru: Интегратор

Note

en: 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 company. Efficiency gains, economies of scope, and lower dependencies from suppliers result in a decrease in costs and can increase the stability of value creation.

Affected BM Components: How, What

LayerPlayer

de: Layer Player
en: Layer Player

Note

en: 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 efficiently. Further, the established special expertise can result in a higher quality process.

Affected BM Components: Value, How

LeverageCustomerData

de: Kundendaten nutzen
en: Leverage Customer Data
ru: Использовать данные клиента

Note

en: New value is created by collecting customer data and preparing 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.

Affected BM Components: How, What

License

de: Lizenz
en: License
ru: Лицензия

Note

en: Efforts are focused on developing intellectual property that can be licensed to other manufacturers. This model, therefore, relies not on the realization and utilization of knowledge in the form of products, but attempts to transform 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.

Affected BM Components: Value, How

LockIn

de: Lock-In
en: Lock-In

Note

en: Customers are locked into a vendor's world of products and services. Using another vendor is impossible without incurring 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.

Affected BM Components: What, How, Value

LongTail

de: Langer Schwanz
en: Long Tail

Note

en: Instead of concentrating on blockbusters, the main bulk of revenues is generated through a 'long tail' of niche products. 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.

Affected BM Components: How, Value

MakeMoreOfIt

de: Mehr daraus machen
en: Make More of It

Note

en: Know-how and other available assets existing in the company 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 generated directly from the core value proposition of the company.

Affected BM Components: What, Who, How, Value

MassCustomisation

de: Personalisierung von Massenware
en: Mass Customisation
ru: Массовая персонализация

Note

en: 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 production circumstances and at competitive prices.

Affected BM Components: What, Value

NoFrills

de: Ohne Schnickschnack
en: No Frills
ru: Без излишеств

Note

en: 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 customer, usually resulting in a customer base with lower purchasing power or purchasing willingness.

Affected BM Components: What, How, Value

ObjectSelfService

de: Objekt Selbstbedienung
en: Object Self Service
ru: Самообслуживание объектов

Comment

additional in (Wagner 2021)

OpenBusinessModel

de: Offenes Geschäftsmodell
en: Open Business Model
ru: Открытая бизнес-модель

Note

en: 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.

Affected BM Components: What, Who, Value

OpenSource

de: Open Source
en: Open Source

Note

en: 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.

Affected BM Components: What, Who, How, Value

Orchestrator

de: Orchestrator
en: Orchestrator

Note

en: 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.

Affected BM Components: Value, How

PayPerUse

de: Bezahlen pro Nutzung
en: Pay per Use
ru: Оплата за использование

Note

en: 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 customers who wish to benefit from the additional flexibility, which might be priced higher.

Affected BM Components: What, Value, How

PayWhatYouWant

de: Zahlen Sie, was Sie wollen
en: Pay What You Want
ru: Платить по желанию

Note

en: 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 influence the price, while the seller benefits from higher numbers 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 suitable to attract new customers.

Affected BM Components: Value, How

PeerToPeer

de: Peer-to-Peer
en: Peer-to-Peer

Note

en: This model is based on a cooperation that specializes in mediating between individuals belonging to an homogeneous group. It is often abbreviated as P2P. The company offers a meeting point, i.e., an online database and communication 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).

Affected BM Components: What, Value

PerformanceBasedContracting

de: Leistungsabhängige Vertragsgestaltung
en: Performance-Based Contracting
ru: Контрактация на основе результатов деятельности

Note

en: 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.

Affected BM Components: What, Value

Prosumer

de: Prosumer
en: Prosumer

Comment

additional in (Wagner 2021)

RazorBlade

de: Rasiermesser und Klinge
en: Razor and Blade
ru: Бритва и лезвие

Note

en: 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 purchase, while the subsequent recurring sales cross-finance it. Usually, these products are technologically bound to each other to further enhance this effect.

Affected BM Components: What, Who, How

RentNotBuy

de: Mieten statt Kaufen
en: Rent instead of Buy
ru: Аренда вместо покупки

Note

en: 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 profits 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 unnecessarily binds capital, is reduced on each product.

Affected BM Components: What, Value, How

Comment

not used in (Wagner 2022)

RevenueSharing

de: Beteiligung am Erlös
en: Revenue Sharing
ru: Разделение доходов

Note

en: Revenue sharing refers to firms’ practice of sharing revenues 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.

Affected BM Components: What, How, Value

ReverseEngineering

de: Reverse Engineering
en: Reverse Engineering
ru: Обратный инжиниринг

Note

en: 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.

Affected BM Components: What, Value

ReverseInnovation

de: Reverse Innovation
en: Reverse Innovation
ru: Обратная инновация

Note

en: 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.

Affected BM Components: What, Value

RobinHood

de: Robin Hood
en: Robin Hood
ru: Робин Гуд

Note

en: 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 economies of scale, which other providers cannot achieve. Additionally, it has a positive effect on the company's image.

Affected BM Components: What, How

SelfService

de: Selbstbedienung
en: Self-Service
ru: Самообслуживание

Note

en: 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 efficiency, since in some cases, the customer can execute a valueadding step more quickly and in a more target-oriented manner than the company.

Affected BM Components: What, How

SensorAsService

de: Sensor als Dienstleistung
en: Sensor as Service
ru: Сенсор как услуга

Comment

additional in (Wagner 2021)

ShopInShop

de: Shop im Shop
en: Shop-In-Shop
ru: Магазин в магазине

Note

en: Instead of opening new branches, a partner is chosen whose branches can profit from integrating the company's offerings 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 revenue from the hosted shop in the form of rent. The hosted company gains access to cheaper resources such as space, location, or workforce.

Affected BM Components: Who, Value

SolutionProvider

de: Anbieter von Lösungen
en: Solution Provider
ru: Поставщик решений

Note

en: 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 company 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.

Affected BM Components: What, How

Subscription

de: Abonnement
en: Subscription
ru: Подписка

Note

en: 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 generates a more steady income stream.

Affected BM Components: What, How

Supermarket

de: Supermarkt
en: Supermarket
ru: Супермаркет

Note

en: A company sells a large variety of readily available products and accessories under one roof. Generally, the assortment 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 company.

Affected BM Components: What, Value

TargetThePoor

de: Die Armen als Zielgruppe
en: Target the Poor

Note

en: 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.

Affected BM Components: What, Value, How

TrashToCash

de: Altes zu Bargeld
en: Trash-to-Cash

Note

en: 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 customers’ potential environmental awareness ideals.

Affected BM Components: What, Who, Value, How

TwoSidedMarket

de: Zweiseitiger Markt
en: Two-Sided Market
ru: Двусторонний рынок

Note

en: A two-sided market facilitates interactions between multiple 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.

Affected BM Components: What, Value, How

UltimateLuxury

de: Ultimativer Luxus
en: Ultimate Luxury
ru: Предельная роскошь

Note

en: This pattern describes the strategy of a company to focus on the upper side of society's pyramid. This allows a company 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.

Affected BM Components: What, Value

UserDesigned

de: Vom Nutzer entworfen
en: User Designed
ru: Пользовательский дизайн

Note

en: Within user manufacturing, a customer is both the manufacturer and the consumer. As an example, an online platform 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.

Affected BM Components: What, Value, How

Virtualisation

de: Virtualisierung
en: Virtualisation
ru: Виртуализация

Comment

additional in (Wagner 2021)

WhiteLabel

de: Produkt ohne Marke
en: White Label

Note

en: 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.

Affected BM Components: How, Value, What, Who