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Business Model Patterns

Published on Nov 06, 2015

BUSINESS MODEL PATTERNS - A SUMMARY OF FIVE COMMON BUSINESS MODEL APPROACHES

PRESENTATION OUTLINE

Business Model Patterns

5 Common Business Approaches
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Based on business model generation - Section II

slide summary by @jeremycaplan
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Business model patterns

  • UNBUNDLED
  • LONG TAIL
  • MULTI-SIDED
  • FREE
  • OPEN

Unbundled

Specialization = Separating Out Unrelated Activities
Photo by -Dreamflow-

PRIVATE BANKING

PLATFORMS/PRODUCTS/RELATIONSHIPS
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TELCO

EQUIPMENT/NETWORK/CONTENT

Long Tail

Large # of Products, Each Low-Volume
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Long Tail

  • Democratized Production
  • Democratized Distribution
  • Cheap Search

LULU

LOTS OF BOOKS, FEW BUYERS FOR EACH
Photo by Eneas

LEGO

USER-DESIGNED KITS
Photo by hatalmas

Multi-Sided platform

Working with 2 or More Interdependent Entities

METRO

READERS + ADVERTISERS
Photo by notfrancois

GOOGLE

WEB SURFERS + ADVERTISERS

XBOX

GAMERS + GAME DESIGNERS

Free!

Non-Paying Customers Are Subsidized (Often by Ads)

BUZZFEED

Freemium

Free Riders are Subsidized by Other Payers, Not Ads
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Variations on Free

Photo by kevin dooley

Open-Source

Photo by Chris_Samuel

Insurance

UPSIDE-DOWN FREEMIUM = REGA
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bait and hook

Open Business Models

Inside-Out/Outside-In
Photo by VinothChandar

INSIDE-OUT

SCANNING OUTSIDE TO SOLVE INTERNAL PROBLEMS
Photo by Jeff Kubina

OUTSIDE-IN

PATENT POOLS
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Open vs. closed innovation

  • "Let's work with outsiders" vs. "The smart people are here"
  • "We can benefit from outside research" vs. "Do it ourselves"
  • "We should profit from others' input" vs. "We need control"

Business model patterns

  • UNBUNDLED
  • LONG TAIL
  • MULTI-SIDED
  • FREE
  • OPEN
Photo by Kr. B.