Innovations do not necessarily mean to invent something that has not existed before; it can as well be defined as an adjustment to a product or service that is already in use. A development of current business model might lead to a competitive advantage and delivers new values to the customers. Analyzing contemporary business actions might be helpful to identify opportunities and future directions. Functional fixedness, a situation where corporations and employees stick to old patterns can obstruct a passage to transformation and consequential success. Therefore, a consistent look on market developments is crucial for determining the tipping point. The St. Gallen Business Model Navigator specified 55 business model patterns that companies all over the world are operate. Some of them are explained in more detail.
The 55 busines models
Add-on Affiliation Aikido Auction Barter Cash Machine Cross Selling Crowdfunding Crowdsourcing Customers Loyalty Digitization Direct Selling e-Commerce Experience Selling Flatrate fractionalized Ownership Franchising Freemium From Push to Pull Guaranteed Availability Hidden Revenue Ingredient Branding Integrator Layer Player Leverage Customer Data License Lock-in Long Tail Make more of it Mass Customization No Frills Open Business Model Open Source Orchestrator Pay per use Pay What You Want Peer-to-Peer Performance-based contracting Razor and Blade Rent Instead Buy Revenue Sharing Reverse Engineering Reverse Innovation Robin Hood Self Service Shop In Shop Solution Provider Subscription Supermarket Target the Poor Trash-to-Cash Two-sided Market Ultimate Luxury User Designed White Label
Digitization
Digitizing a business model suggests to transform analogue processes into digital workflows. Hence, the goods or service provider profits from quick and uncomplicated distribution and by this means saves resources. E.g. in auditing the employee is relieved of repetitive tasks and procedure that are often very time-consuming. The time gained allows the auditor to concentrate more on the outcome than on the task itself. More power can be allocated to strategic assessment and comprehensible presentation of the data gained. Processes become more efficient and thereby costs can be reduced in the long run. With digitization comes along integration as well. In alignment to the previously elaborated business model pattern, an integrator enables to standardize repetitive manual tasks. Furthermore, an integrator is able to homogenize business processes as well as control of all resources throughout the internal value chain. Data is created with every move you make on a digital surface. On a long-term view this data can be monitored, analyzed over time and used for the assessment of business processes. Big data enables machine learning and enhances the effectiveness of operational results. This data can either be shared with other companies or leveraged for own purpose. In a digital world, data is highly valuable. Understanding data is beneficial for business development, adaption to the market and the collection of know-how.
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