| Model number | Business model pattern | Innovated business model components | Exemplary companies | Pattern description |
| 1 | Add-On | What Value | Ryanair (1985), SAP (1992), Sega (1998), Bosch (1999), Tesla (2003) | The core offering is priced competitively, but there are numerous extras that drive the final price up. In the end, the customer pays more than he or she initially assumed. Customers benefit from a variable offer, which they can adapt to their specific needs. |
| 2 | Affiliation | How Value | Cybererotica (1994), Amazon Store (1995), Pinterest (2010), Wirecutter (2011) | The focus lies on supporting others to sell products and directly benefiting from successful transactions. Affiliates usually profit from some kind of pay-per-sale or pay-per-display compensation. The company, on the other side, is able to gain access to a more diverse potential customer base, without additional active sales or marketing efforts. |
| 3 | Aikido | What Value | Six Flags (1961), The Body Shop (1976), Swatch (1983), Cirque du Soleil (1984), Nintendo (2006) | Aikido is a Japanese martial art in which the strength of an attacker is used against him. As a business model, Aikido allows a company to offer something diametrically opposed to the image and mind-set of the competition. This new value proposition attracts customers who prefer ideas or concepts opposed to the mainstream. |
| 4 | Auction | What Value | eBay (1995), WineBid (1996), Priceline (1997), Google (1998), Zopa (2005), MyHammer (2005), Elance (2006), Google AdWords (2003), Auctionmaxx (2012) | Auctioning means selling a product or service to the highest bidder. The final price is achieved when a particular end time of the auction is reached or when no higher offers are received. This allows the company to sell to those customers who are willing to pay the highest price. The customer benefits from the opportunity to influence the price of a product and pay its value. |
| 5 | Barter | What Value | Procter & Gamble (1970), PepsiCo (1972), Lufthansa (1993), Magnolia Hotels (2007), Pay with a Tweet (2010) | Barter is a method of exchange in which goods are given away to customers without the transaction of actual money. In return, they provide something of value to the sponsoring organisation. The exchange does not have to show any direct connection and is valued differently by each party. |
| 6 | Cash Machine | How Value | American Express (1891), Dell (1984), Amazon Store (1994), PayPal (1998), Blacksocks (1999), MyFab (2008), Groupon (2008) | In the Cash Machine concept, the customer pays upfront for the products sold to the customer before the company is able to cover the associated expenses. This results in increased liquidity, which can be used to amortise debt or to fund investments in other areas. |
| 7 | Cross-Selling | What How Value | Shell (1930), IKEA (1956), Tchibo (1973), Aldi (1986), Booking.com (1996), SANIFAIR (2003), Zalando (2008) | In this model, services or products from a formerly excluded branch are added to the offerings, thus leveraging existing key skills and resources. In retail, especially, companies can easily provide additional products and offerings that are not linked to the main branch on which they were previously focused. Thus, additional revenue can be generated with relatively few changes to the existing infrastructure and assets, since more potential customer needs are met. |
| 8 | Crowdfunding | How Value | Marillion (1997), Cassava Films (1998), Diaspora (2010), Brainpool (2011), Sono Motors (2016), Modern Dayfarer (2018) | A product, project or entire start-up is financed by a crowd of investors who wish to support the underlying idea, typically via the Internet. If a critical mass is achieved, the idea will be realised and investors receive special benefits, usually proportionate to the amount of money they provided. |
| 9 | Crowdsourcing | How Value | Threadless (2000), Procter & Gamble (2001), InnoCentive (2001), Cisco (2007), MyFab (2008), McDonald’s (2014), Airbnb (2015) | The solution of a task or problem is adopted by an anonymous crowd, typically via the Internet. Contributors receive a small reward or have the chance to win a prize if their solution is chosen for production or sale. Customer interaction and inclusion can foster a positive relationship with a company, and subsequently increase sales. |
| 10 | Customer Loyalty | What Value | Sperry & Hutchinson (1897), American Airlines (1981), Safeway Club Card (1995), Payback (2000), Starbucks (2010) | Customers and their loyalty are retained by providing them value beyond the actual product or service itself, i.e. through incentive-based programmes. The goal is to increase loyalty by creating an emotional relationship, or simply rewarding it with special offers. Customers are voluntarily bound to the company, which protects future revenue. |
| 11 | Digitalisation | What How Who Value | WXYC (1994), Hotmail (1996), Jones International University (1996), CEWE (1997), SurveyMonkey (1998), Napster (1999), Wikipedia (2001), Facebook (2004), Dropbox (2007), Amazon Kindle (2007), Netflix (2008), Next Issue Media (2011) | This pattern relies on the ability to turn existing products or services into digital variants, thus offering advantages over tangible products, such as easier and faster distribution. Ideally, the Digitalisation of a product or service is realised without harnessing the value proposition, which is offered to the customer. |
| 12 | Direct Selling | What How Value | Vorwerk (1930), Tupperware (1946), Amway (1959), The Body Shop (1976), Dell (1984), Nestlé Nespresso (1986), First Direct (1989), Nestlé Special.T (2010), Dollar Shave Club (2012), Nestlé BabyNes (2012) | Direct Selling is where a company’s products are not sold through intermediary channels but are available directly from the manufacturer or service provider. This way, the company skips the retail margin and any additional costs associated with the intermediates. These savings can be forwarded to the customer, while a standardised sales experience can be established. Additionally, the close contact can intensify the relationship with the customer base. |
| 13 | E-commerce | What How Value | Dell (1984), Zappos (1999), Amazon Store (1995), FLYERALARM (2002), Blacksocks (1999), Dollar Shave Club (2012), WineBid (1996), Alibaba (1999), Asos (2000), Zopa (2005), Otto (2018) | Traditional products or services are delivered through online channels only, thus removing costs associated with running a physical branch infrastructure. Customers benefit from higher availability and convenience, while the company is able to integrate its sales and distribution with other internal processes. |
| 14 | Experience Selling | What How Value | Harley-Davidson (1903), IKEA (1956), Trader Joe’s (1958), Starbucks (1971), Swatch (1983), Nestlé Nespresso (1986), Red Bull (1987), Barnes & Noble (1993), Nestlé Special.T (2010), NIO (2014), Amazon Go (2018) | The value of a product or service is increased by the customer experience offered with it. This opens the door for higher customer demand and commensurate increase in prices charged. This means that the customer experience must be adapted accordingly – by attuning promotion, shop, etc. |
| 15 | Flat Rate | What Value | SBB (1898), Buckaroo Buffet (1946), Sandals Resorts (1981), Netflix (1999), Next Issue Media (2011), PlayStation Now (2014), Apple Arcade (2019) | In this model, a single fixed fee is charged for a product or service, regardless of actual usage or time restrictions of the consumption. The user benefits from a simple cost structure while the company benefits from a constant revenue stream. |
| 16 | Fractional Ownership | What How Value Who | Hapimag (1963), NetJets (1964), Mobility Carsharing (1997), écurie25 (2005), HomeBuy (2009), Crowdhouse (2015), Masterworks (2017) | Fractional Ownership describes the sharing of a certain asset class among a group of owners. Typically, the asset is rather capital intensive but only needed on an occasional basis. While the customer does benefit from the rights he has as an owner, he does not have to provide the entire capital alone. |
| 17 | Franchising | What How Value | Singer Sewing Machine (1860), McDonald’s (1948), Marriott International (1967), Starbucks (1971), Subway (1974), Fressnapf (1992), Natur House (1992), McFIT (1997), BackWerk (2001) | The franchisor owns the brand name, products and corporate identity, and these are licensed to independent franchisees who carry the risk of local operations. Revenue is generated as part of the franchisees’ revenue and orders. The franchisees benefit from the usage of well-known brands, their know-how and support. |
| 18 | Freemium | What Value | Hotmail (1996), SurveyMonkey (1998), LinkedIn (2003), Skype (2003), Spotify (2006), Dropbox (2007), Sega (2012), YouTube Premium (2018) | The basic version of an offering is given away for free, with the hope of eventually persuading the customers to pay for the premium version at a later date. The free offering is able to attract the highest number of customers possible for the company. The generally smaller number of paying, ‘premium’ customers generate the revenue, which also cross-finances the free offering. |
| 19 | From Push to Pull | What How | Toyota (1975), Zara (1975), Dell (1984), Geberit (2000), Amazon Kindle (2007) | This pattern describes the strategy of a company to decentralise, which adds flexibility to the company’s processes in order to be more customer focused. To quickly and flexibly respond to new customer needs, any part of the value chain – including production or even research and development – can be affected. |
| 20 | Guaranteed Availability | What How Value | NetJets (1964), PHH Corporation (1986), IBM (1995), Hilti (2000), MachineryLink (2000), ABB Turbo Systems (2010) | Within this model, the availability of a product or service is guaranteed, resulting in almost zero downtime. The customer can use the offering as required, which minimises losses resulting from downtime. The company uses expertise and economies of scale to lower operation costs and achieve these availability levels. |
| 21 | Hidden Revenue | What How Value Who | JCDecaux (1964), Sat.1 (1984), Metro Newspapers (1995), Google (1998), Facebook (2004), Spotify (2006), Zattoo (2007), Instagram (2010), Snapchat (2011), TikTok (2017) | The logic that the user is responsible for the income of the business is abandoned. Instead, the main source of revenue comes from a third party, which cross-finances whatever free or low-priced offering attracts the users. A very common case of this model is financing through advertisement, where the attracted customers are valuable to the advertisers who fund the offering. This concept facilitates the idea of ‘separation between revenue and customer’. |
| 22 | Ingredient Branding | What How | DuPont Teflon (1964), W.L. Gore & Associates (1976), Intel (1991), Carl Zeiss (1995), Shimano (1995), Bosch (2000), IKEA (2019) | Ingredient Branding describes the specific selection of an ingredient, component and brand originating from a specific supplier, which will be included in another product. This product is then additionally branded and advertised with the ingredient product, collectively adding value for the customer. This additionally projects the positive brand associations and properties onto the product, and can increase the attractiveness of the end product. |
| 23 | Integrator | Value How | Carnegie Steel (1870), Ford (1908), Zara (1975), BYD Auto (1995), Tencent (1998), Exxon Mobil (1999) | An Integrator is in command of the bulk of steps in the value-adding process. The control of all resources and capabilities in terms of value creation lies with the company. Efficiency gains, economies of scope and low dependencies from suppliers result in a decrease of costs and can increase the stability of the value creation. |
| 24 | Layer Player | What How | Dennemeyer (1962), DHL (1969), Wipro Technologies (1980), TRUSTe (1997), PayPal (1998), Amazon Web Services (2002), Alipay (2004), Apple Pay (2014) | A Layer Player is a specialised company limited to the provision of one value-adding step for different value chains. This step is typically offered within a variety of independent markets and branches. The company benefits from economies of scale and often produces more efficiently. Further, the established special expertise can result in a higher-quality process. |
| 25 | Leverage Customer Data | How Value | Amazon Store (1995), Google (1998), Payback (2000), Facebook (2004), PatientsLikeMe (2004), 23andMe (2006), Twitter (2006), Verizon Communications (2011), ADA Health (2016) | New value is created by collecting customer data and preparing it in beneficial ways for internal usage or for interested third parties. Revenues are generated by either selling this data directly to others or leveraging it for own purposes, e.g. to increase the effectiveness of advertisements. |
| 26 | Licensing | How Value | Anheuser-Busch (1870), IBM (1920), DIC2 (1973), ARM (1989), Duales System Deutschland (1991), Max Havelaar (1992), FIFA (2006), UEFA (2008) | Efforts are focused on developing intellectual property that can be licensed to other manufacturers. This model, therefore, does not rely on the realisation and utilisation of knowledge in the form of products, but attempts to transform these intangible goods into money. This allows a company to focus on research and development. It also allows the provision of knowledge, which would otherwise be left unused and could potentially be valuable to third parties. |
| 27 | Lock-In | How Value | Gillette (1904), LEGO (1949), Microsoft (1975), Apple (1976), Hewlett-Packard (1984), Nestlé Nespresso (1986), Nestlé Special.T (2010), Nestlé BabyNes (2012) | Customers are locked into a vendor’s world of products and services. Using another vendor is impossible without incurring substantial switching costs, thus protecting the company from losing customers. This Lock-In is generated either by technological mechanisms or substantial interdependencies of products or services. |
| 28 | Long Tail | What How Value | Grameen Bank (1983), Amazon Store (1995), eBay (1995), Netflix (1999), Apple iPod/iTunes (2003), YouTube (2005) | Instead of concentrating on blockbusters, the main bulk of revenues is generated through a Long Tail of niche products. Individually, these neither demand high volumes, nor allow for a high margin. If a vast variety of these products are offered in sufficient amounts, the small-scale profits can add up to a significant amount. |
| 29 | Make More of It | What How Value | Porsche (1931), Festo Didactic (1970), Siemens Management Consulting (1996), BASF (1998), Amazon Web Services (2002), Sennheiser Sound Academy (2009) | Know-how and other available assets existing in the company are not only used to build own products, but are also offered to other companies. Slack resources, therefore, can be used to create additional revenue besides that which is generated directly from the core value proposition in the company. |
| 30 | Mass Customisation | What How Value | Dell (1984), Levi’s (1990), Miadidas (2000), Nike By You (2000), PersonalNOVEL (2003), Factory121 (2006), mymuesli (2007), My Unique Bag (2010) | Customising products through mass production once seemed to be an impossible endeavour. The approach of modular products and production systems has enabled the efficient individualisation of products. As a consequence, individual customer needs can be met within mass production circumstances and at competitive prices. |
| 31 | No Frills | What How Value Who | Ford (1908), Aldi (1913), McDonald’s (1948), Southwest Airlines (1971), Aravind Eye Care System (1976), AccorHotels (1985), McFIT (1997), Dow Corning (2002), Xiaomi (2010) | Value creation focuses on what is necessary to deliver the core value proposition of a product or service, typically as basic as possible. Cost savings are shared with the customer, usually resulting in a customer base with lower purchasing power or purchasing willingness. |
| 32 | Open Business | How Value | Valve Corporation (1998), ABRIL MODA (2008), Holcim (2010), Trumpf (2015) | In Open Business models, collaboration with partners in the ecosystem becomes a central source of value creation. Companies pursuing an open business model actively search for novel ways of working together with suppliers, customers or complementors to open and extend their business. |
| 33 | Open Source | What How Value | IBM (1955), Mozilla (1992), Red Hat (1993), Mondobiotech (2000), Wikipedia (2001), Local Motors (2008), Hyperledger (2015), Ethereum (2015) | In software engineering, the source code of a software product is not kept proprietary but is freely accessible for anyone. Generally, this could be applied for any technology details of any product. Others can contribute to the product, but also use it for free as a sole user. Money is typically earned with services that are complementary to the product, such as consulting and support. |
| 34 | Orchestrator | How Value | Richelieu Foods (1862), Procter & Gamble (1970), Li & Fung (1971), Nike (1978), Airtel (1995) | Within this model, the company’s focus is on the core competencies in the value chain. The other value chain segments are outsourced and actively coordinated. This allows the company to reduce costs and benefit from the supplier’s economies of scale. Also, the focus on core competencies can increase performance. |
| 35 | Pay Per Use | What How | Hot Choice (1988), Google (1998), Ally Financial (2004), Car2Go (2008), Homie (2016) | In this model, the actual usage of a service or product is metered. The customer pays on the basis of what he or she effectively consumes. The company is able to attract customers that want to benefit from the additional flexibility, for which they are willing to pay higher prices. |
| 36 | Pay What You Want | What Value | One World Everybody Eats (2003), NoiseTrade (2006), Radiohead (2007), Humble Bundle (2010), Panera Bread Bakery (2010) | The buyer pays any desired amount for a given commodity, sometimes even zero. In some cases, a minimum floor price may be set, and/or a suggested price may be indicated as guidance for the buyer. The customer is allowed to influence the price, while the seller benefits from higher numbers of attracted customers, since the individual’s willingness to pay is met. Based on the existence of social norms and morals, this is only rarely exploited, which makes it suitable to attract new customers. |
| 37 | Peer to Peer | What How Value | eBay (1995), Craigslist (1996), Napster (1999), Couchsurfing (2003), LinkedIn (2003), Skype (2003), Zopa (2005), SlideShare (2006), Twitter (2006), Dropbox (2007), Airbnb (2008), TaskRabbit (2008), Uber (2009), RelayRides (2010), Gidsy (2011), Quartierstrom (2018) | This model is based on a cooperation that specialises in mediating between individuals belonging to a homogeneous group. It is often abbreviated as P2P. The company offers a meeting point, i.e. an online database and communication service that connects these individuals. The offerings could include personal objects for rent, providing certain products or services, or the sharing of information and experiences. |
| 38 | Performance-Based Contracting | What How Value | Rolls-Royce (1980), Smartville (1997), BASF (1998), Xerox (2002) | A product’s price is not based upon its physical value, but on the performance or valuable outcome it delivers, in the form of a service. Special expertise and economies of scale result in lower production and maintenance costs of a product, which can be forwarded to the customer. Extreme variants of this model are represented by different operation schemes in which the product remains the property of, and is operated by, the company. |
| 39 | Razor and Blade | What How Value | Standard Oil Company (1870), Vorwerk (1883), Gillette (1904), Hewlett-Packard (1984), Nestlé Nespresso (1986), Sony PlayStation (1994), Apple iPod/iTunes (2003), Microsoft Xbox (2001), Amazon Kindle (2007), Nestlé Special.T (2010), Nestlé BabyNes (2012) | The basic product is cheap or given away for free. The consumables that are needed to use or operate it, on the other hand, are expensive and sold at high margins. The initial product’s price lowers the customers’ barriers to purchase, while the following recurring sales cross-finance it. Usually, these products are technologically bound to each other to further enhance this effect. |
| 40 | Rent Instead of Buy | What Value | Saunders System (1916), Xerox (1959), Blockbuster (1985), Rent a Bike (1987), Mobility Carsharing (1997), MachineryLink (2000), CWS-boco (2001), Luxusbabe (2006), SolarCity (2006), FlexPetz (2007), Car2Go (2008), SolarCity (2016) | The customer does not buy a product, but instead rents it. This lowers the capital typically needed to gain access to the product. The company itself benefits from higher profits on each product, as it is paid for the duration of the rental period. Both parties benefit from higher efficiency in product utilisation as time of non-usage, which unnecessarily binds capital, is reduced on each product. |
| 41 | Revenue Sharing | What Value | Sanifair (1994), CDnow (1994), HubPages (2006), Apple iPhone/App Store (2008), Groupon (2008) | Revenue Sharing refers to firms’ practice of sharing revenues with their stakeholders, such as complementors or even rivals. Thus, in this business model, advantageous properties are merged to create symbiotic effects in which additional profits are shared with partners participating in the extended value creation. One party is able to obtain a share of revenue from another that benefits from increased value for its customer base. |
| 42 | Reverse Engineering | What How Value | Bayer (1897), Pelikan (1994), Brilliance China Auto (2003), Rocket Internet (2007), Denner (2010), Xiaomi (2010) | This pattern refers to obtaining a competitor’s product, taking it apart and using this information to produce a similar or compatible product. Because no huge investment in research or development is necessary, these products can be offered at a lower price than the original product. |
| 43 | Reverse Innovation | What How | Logitech (1981), Haier (1999), Nokia (2003), Renault (2004), General Electric (2007) | Simple and inexpensive products that were developed in and for emerging markets are also sold in industrial countries. The term ‘reverse’ refers to the fact that, in this model, new products are typically developed in industrial countries and are then adapted to fit emerging market needs. |
| 44 | Robin Hood | What Value Who | Aravind Eye Care System (1976), One Laptop Per Child (2005), TOMS Shoes (2006), Warby Parker (2008), Lemonaid (2008) | The same product or service is provided to ‘the rich’ at a much higher price than to ‘the poor’. Thus, the main bulk of profits are generated from the rich customer base. Serving ‘the poor’ is not profitable per se, but creates economies of scale that other providers cannot achieve. Additionally, it has a positive effect on the company’s image. |
| 45 | Self-Service | What How Value | McDonald’s (1948), IKEA (1956), Migros (1965), AccorHotels (1985), Mobility Carsharing (1997), BackWerk (2001), Car2Go (2008), Amazon Go (2018) | A part of the value creation is handed over to the customer in exchange for a lower price of the service or product. This is particularly suited for process steps that add relatively low perceived value for the customer but cause high costs. Customers benefit from efficiency and time savings, while putting in their own effort. This can also increase efficiency, because in some cases the customer can execute a value-adding step quicker and more effectively than the company. |
| 46 | Shop in Shop | What How Value | Tim Hortons (1964), DHL (1969), Tchibo (1987), Deutsche Post (1995), Bosch (2000), MinuteClinic (2000), Zalando (2008) | Instead of opening new branches, a partner is chosen whose branches can profit from integrating the company’s offerings in a way that imitates a small shop within another shop (a win–win situation). The hosting store can benefit from more attracted customers and is able to gain constant revenue from the hosted shop in the form of rent. The hosted company gains access to cheaper resources such as space, location or workforce. |
| 47 | Solution Provider | What How Value | Lantal Textiles (1954), Heidelberger Druckmaschinen (1980), Tetra Pak (1993), Geek Squad (1994), CWS-boco (2001), Apple iPod/iTunes (2003), Amazon Web Services (2006), 3M Services (2010) | A service provider offers total coverage of products and services in a particular domain, consolidated via a single point of contact. Special know-how is given to the customer in order to increase his or her performance. By becoming a full-service provider, a company can prevent revenue losses by extending its service and adding it to the product. Additionally, close contact with the customer allows great insight into customer habits and needs, which can be used to improve the products and services. |
| 48 | Subscription | What Value | Blacksocks (1999), Netflix (1999), Salesforce (1999), Jamba (2004), Amazon Prime (2005), Spotify (2006), Next Issue Media (2011), Dollar Shave Club (2012), Apple Music (2015), Disney+ (2019) | The customer pays a regular fee, typically on a monthly or an annual basis, in order to gain access to a product or service. While customers usually benefit from lower usage costs and general service availability, the company generates a steadier income stream. |
| 49 | Supermarket | What How Value | King Kullen Grocery Company (1930), Merrill Lynch (1930), Toys R Us (1948), The Home Depot (1978), Best Buy (1983), Fressnapf (1985), Staples (1986), Original Unverpackt (2014) | A company sells a large variety of readily available products and accessories under one roof. Generally, the assortment of products is large but the prices are kept low. More customers are drawn in due to the great range on offer, while economies of scope yield advantages for the company. |
| 50 | Target the Poor | What How Value Who | Grameen Bank (1983), Arvind (1995), Airtel (1995), Hindustan Unilever (2000), Tata Nano (2009), Square (2009), Walmart (2012) | The product or service offering does not target the premium customer, but rather the customer positioned at the base of the pyramid. Customers with lower purchasing power benefit from affordable products. The company generates small profits with each product sold, but benefits from the higher sales numbers that usually come with the scale of the customer base. |
| 51 | Trash to Cash | What How Value | Dual System Germany (1991), Freitag lab.ag (1993), Greenwire (2001), Emeco (2010), H&M (2012), Adidas x Parley (2015) | Used products are collected and either sold in other parts of the world or transformed into new products. The profit scheme is mainly based on low to no purchase prices. Resource costs for the company are almost eliminated and, at the same time, the supplier’s waste disposal is actually provided, or associated costs are reduced. This also addresses potential environmental-awareness ideals that customers might have. |
| 52 | Two-Sided Market | What How Value Who | Diners Club (1950), JCDecaux (1964), Sat.1 (1984), Amazon Store (1995), eBay (1995), Metro Newspapers (1995), Priceline (1997), Google (1998), Facebook (2004), MyHammer (2005), Elance (2006), Zattoo (2007), Groupon (2008), Airbnb (2008), Uber (2009), XOM Materials (2017) | A Two-Sided Market facilitates interactions between multiple interdependent groups of customers. The value of the platform increases as more groups or individual members use it. The two sides usually come from distinguished groups, e.g. businesses and private interest. |
| 53 | Ultimate Luxury | What How Value Who | Lamborghini (1962), Jumeirah Group (1994), Mir Corporation (2000), The World (2002), SpaceX (2002), Abbot Downing (2011) | This pattern describes the strategy of a company to offer customers high-end solutions in return for maximum purchasing prices. Companies use high standards of quality or exclusive privileges in order to distinguish themselves from others and to attract customers willing to pay for the ‘ultimate premium’. The necessary investments for these differentiations are met by the relatively high prices that can be achieved – which usually allows for very high margins. |
| 54 | User Design | What How Value Who | Spreadshirt (2001), Lulu (2002), LEGO Factory (2005), Amazon Kindle (2007), Ponoko (2007), Apple iPhone/App Store (2008), Create My Tattoo (2009), Quirky (2009) | Within user manufacturing, a customer is both the manufacturer and the consumer. As an example, an online platform provides the customer with the necessary support in order to design and merchandise the product, e.g. product design software, manufacturing services, or an online shop to sell the product. The customer benefits from the potential to realise entrepreneurial ideas without having to provide the required infrastructure. Revenue is then generated as part of the actual sales. |
| 55 | White Label | What How Who | Foxconn (1974), Richelieu Foods (1994), CEWE (1997), Printing In A Box (2005) | A White Label producer allows other companies to distribute its goods under their own brands, so that it appears as if they are made by them. The same product or service is often sold by multiple marketers and under different brands. This way, the various customer segments can be satisfied with the same product. |
| 56 | Sensor as a Service | What How Who Value | Procter & Gamble (1997), Streetline (2005), Google Nest (2011) | The use of sensors permits additional services for physical offerings, or wholly new independent services. It is not the sensor that generates the primary revenue, but the analysis of the data that the sensor creates. Possibilities for real-time information can further strengthen the value proposition. |
| 57 | Virtualisation | How What | Amazon Web Services (2006), Dropbox (2007), DUFL (2015) | This pattern describes the imitation of a traditionally physical process in a virtual environment, e.g. a virtual workspace. The advantage for the customer is the ability to interact with the process from any location or device. In exchange, the customer pays for access to the virtual service. |
| 58 | Object Self-Service | How What Value | Würth iBin (2013), FELFEL (2013), HP Instant Ink (2013) | Through the use of sensors and inclusion in an IT structure, an object can generate orders by itself. This makes fully-automated processes such as replenishment possible and increases the speed of interaction with the object. The customer is locked in, giving rise to recurrent revenue. |
| 59 | Object as Point of Sale | How | Ubitricity (2008), Google Glasses (2013), Amazon Echo Frames (2019) | The point of sale of consumables moves to the point of consumption. This generates a stronger lock-in and results in higher customer retention. When the point of sale is shifted away from competing products, the customer becomes less sensitive to price. |
| 60 | Prosumer | How What Value | Facebook (2004), YouTube (2005), Instagram (2010) | Companies enable customers to become producers themselves. The customer is integrated into the value chain and can profit from the resulting product, while the company has fewer investment costs for production and overheads. Since the consumer has a hand in production, the perceived value of the product increases. |
..................Content has been hidden....................
You can't read the all page of ebook, please click here login for view all page.