4by4 Business Model Patterns (ver1.0, english edition)

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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)


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?


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 +,-,*,%.


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

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When to use


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


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.


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


Description Cases


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


Description Cases


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


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


One More Thing


Brand New Innovation Toolbox

For creating shared value, These tools are opened to public since June 2013

http://businessmodelzen.comhttp://softideation.com



http://softideation.com

http://softideation.com


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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4by4 Business Model Patterns (ver1.0, english edition)

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