2. 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outdated models that are no longer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.
7. The challenge of business model
innovation
Challenge 1
Thinking outside of one’s own dominant industry logic
Challenge 2
Difficulty of thinking in terms of business models rather than
of technologies and products
Challenge 3
The lack of systematic tools
23. Cash Machine
Negative cash cycle
Settling debts or making new investments,
lower interest payments or speed up growth
Cash conversion cycle
Provide liquidity
65. Lock-in
Forcing loyalty with high switching costs
Customer dependent Customers are tied by making
them get worse consequences if
they use other providers
67. Lock-in
Forcing loyalty with high switching costs
Contractual agreement
Sophisticated technology
Incentives for customer loyalty
Prerequisites
68. Long Tail
Little and often fills the purse
Selling small quantities of a very
large range of products
Wide range sold in the
long run
Helping customers find the niche
products without difficulty
77. Peer to Peer
Dealing from person to person
Offering specific services or products or
sharing information and experiences
Charging transaction fees,
advertising or donations
Efficient handling of
transactions
79. Performance-based
Contracting
Basing fees on results
The price of a product is the services it renders
Customers pay at
specified amount
Integrated into customers’
value creation processes
81. Razor and Blade
Bait and hook
Basic product is at a bargain price or even for free
High-priced additional
products
Patenting the complementary
product, building a strong brand
89. Shop in Shop
Piggybacking
Establishing an independent store in
another company’s retail space
Flexible alternative and income
Integrating business in another company
91. Solution Provider
All you need at one-stop
Various products and services in a single source
Close relationship with customers Information, training, increasing
efficiency and performance
93. Subscription
Taking a season ticket to services
Products or services received regularly
In advance or at regular interval
94. Regular basis products or services
Giving additional value
Prerequisites
Subscription
Taking a season ticket to services
95. Supermarket
Large selection and small prices
under one roof
A variety of available products in one place
Satisfaction generates demand Low prices
96. Prerequisites
Economies of scale and scope come into play
A wide range of products
Supermarket
Large selection and small prices
under one roof
97. Trash to Cash
Turning old rubbish into new cash
Recycling and reusing old
materials
Cheaper materials gain more
profit
Impressions from refined products
99. Two-sided Market
Attracting indirect network effects
Mutual benefit between two groups using a platform
Advertisers or third party Customers using the platform
100. Prerequisites
Understand who your relevant stakeholders
are and how they are connected
Two-sided Market
Attracting indirect network effects
101. Ultimate Luxury
More for more
Highest quality privileges and services
Wealthy market Branding, competent and knowledgeable
sales representatives, memorable special
events for customers