4by4 business model patterns (ver1.0, english edition)
DESCRIPTION
The 4by4 Business Model Patterns is a framework to use more than 38 business patterns for empowering and tweaking prior business model to new one. It applies the four arithmetical operations to business model components like Customer, Product, Channel, Profit Model.TRANSCRIPT
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4By4 Business Model Patterns
2014.8.30 (ver1.0)
(since 2013.07.30 - ver0.8)
Brad Cho
(38 patterns to leverage your business model)
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Create Different
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Thanks for inspiration. You can reference these books.
- Business Model Generation by Alexander Osterwalder & Yves Pigneur - Seizing the White Space by A.G. Lafley and Mark W. Johnson- The Profit Zone by Adrian J. Slywotzky
- Free by Chris Anderson- Not for Free by Saul J. Berman
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How to empower prior Business Models with 38 business model patterns?
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What it is
4by4 Business Model Patterns
1. Select business core component to leverage Customer Product Channel Profit
Model
2. Arithmetical Operation applied to selected business component.
+ - X %
BM approach to leverage your business components with +,-,*,%.
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4by4 Business Model Patterns 38 BM Patterns to Change Your Biz.
Customer
Product
Channel
Profit Model
+ - X %ver 1.0
Low Touch De-marketingMicro
Segmentation
Bundling
Crowd Deal
Channel Aggregation Disintermediation
Referral Channel per Purpose
Unbundling
Fractionalization
Mass Customization
Collaborative Production
Two-sided Market
Brokerage
Collaborative Consumption
De-composition
AcquiringNon customers
De-profit source
Time-Space Sharing
Right Sharing
Cross-Subsidiary
3rd party Sponsored
Asset FluidizationMembership
Franchise
Complements
Brand Expansion
Cost Minimization
Licensing
Community
Feature Composition
Installment
Freemium
SubscriptionLease
Financing
Time value Optimization
This work is licensed under the Creative Commons Attribution-Non Commercial-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-sa/3.0/ .
http://businessmodelzen.com
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When to use
4by4 Business Model Patterns
on idea exploration stage- use this framework to make new way of business not similar to industry average BM
on product validation stage
on business growth stage
- use this framework to make initial BM (focusing on customer value) working & pivoting
- use this framework to make proven BM to be optimized and growth-friendly
IndustryAverageModel
Businessnot Validated
YetBusinesswith LowGrowth
IndustryDivergent
Model ValidatedBusiness
Businesswith HighGrowth
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4by4 Business Model PatternsCustomer
+
-
X
%
Low Touch
AcquiringNon customers
Using low-cost technologies or appropriate technology that are targeted at many customers with low-income
Acquiring non customers who traditionally did not seem to be target of customer value proposition
Kodak, Tata Motors
De-marketing Precluding existing customers with low profitability or with low fitness with corporate values
Credit Card Companies
Two-sided Market
While at the same time to attract different customer groups, each group with each other to attract customers by taking advantage of the network effect of business seeking to enable
Night Club, Alibaba, App Store, Game Console
BrokerageLooking at each other in the middle of those models that connect to
the brokerage and the broker is typically matched with the most information available for
Dating Service, Real Estate Brokerage
Micro Segmentation
A closer look at the existing customer base and customer issues, customer behavior, demography, and persona differentiated products to meet marketing approach
Netflix, Amazon, Pandora, Hyundai Card
Collaborative Consumption
Mutual cooperation and respect between customers, evaluation takes place consumed by individuals falling in a shared economic services and social networks broadly based conceptual model may include joint
purchasing
AirBnB, WhipCar, SideCar, SideTour
Sole de Circus, Yellow Tale
Description Cases
These descriptions contain some of 38 BM Patterns only.
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Product
+
-
X
%
Bundling
De-composition
Bunched together more than one product or service to increase the value. It is not 1 +1 type temporary event, but ongoing competitiveness through structural coupling
Nokia CWM, iPod-iTunes, Kindle
Making differentiation by removing usual features or processes related with existing products or services. The user interface and experience in the design area are important.
Nintendo Wii, MS Kinect, Square
Mass Customization
Customer's own products or services, customized according to his/her preference to provide a tailored result
4Foods, Chocri, MyMuesli, NikeID
FractionalizationUnits or size of a product or service are broken / modified for the way to market. (Unit or granular product configurations, single album, a variety of billing per page)
TotalBoox, Ala Carte, Cup-Meal
Collaborative Production
Making products with consumers based on community planning and design ideas, feedback, naming, pricing, pre-purchase and product R & D.
Quirky, Local Motors, OpenIDEO, KickStarter
Simplifying several different types of products within the product group or product groups.
Single Menu Diner Shop
UnbundlingDividing the process in a manner that provides usually it was not provided separately.
Amazon CreateSpace, MVNO
4by4 Business Model Patterns
Description Cases
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Channel
+
-
X
%
Channel Aggregation
Combining multiple distribution channels into one to enjoy better economy of scale and brand/user experience.
Amazon Fresh, QookTV Skylife, Apple Store, Google Play
Making the purchase price down by bypassing intermediaries for supply margins gaining a win-win effect. In recent years, it is used for the purpose of obtaining customer information, and also take advantage of the reaction.
DisintermediationDell, H&M, Uniqlo, Direct-to-Sell Co-op
ReferralBrokerage sales through partnerships. As a result, sales and revenue compensation occurred for the contracted program.
Amazon A-Store, Google AdSense
Channel per Purpose
Dividing channels to sell or buy existing products and services which were not distinctive of distribution channels classified according to the different brands, offerings for sale.
Dow Corning Xiameter
4by4 Business Model Patterns
Description Cases
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Profit Model
+
X
%
Crowd DealMany customers as a group of more than a certain level of participation or disclose purchasing a single transaction method is being created (ex, crowdsourcing, crowd-funding)
KickStarter, Kiva, Prosper, Quirky
3rd party Sponsored
3rd party pays the costs of activities from other users’. It is usually seen at ad-based business.
News Paper, Radio, Portal, Google Search, Youtube
Lease The product that was being sold turns into the form of hourly / daily / monthly / yearly rent method.
AirBnB, RedBox, Coway, Car Rental
Subscription The product that was being sold in a manner of monthly / yearly subscription form.
Netflix, Spotify, GameTap
FreemiumProducts, Services feature set (Feature) split from various angles until a certain functions provided free of charge, and you pay through the payment induces separate function to use.
Spotify, LinkedIn, DropBox, EverNote
4by4 Business Model Patterns
Description Cases
Cross-SubsidiaryProducts and goods, products and services, combined with each other become subsidiary side and money side to maximize the total revenue effect.
Gillette, Game Console, Mobile Subscription
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One More Thing
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Brand New Innovation Toolbox
For creating shared value, These tools are opened to public since June 2013
http://businessmodelzen.comhttp://softideation.com
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1. Business Pattern Workshop (5hrs)2. BPG (Business Pattern Game) Facilitator Course (1day)
You may also like Business Pattern Game (Card)
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