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Method Kit

Module 5: Business Modeling

Business Model Navigator

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Why should you use this Business Model Navigator?

  • Can be used understand the drivers of business model success and how they can be applied to your business model
  • Examples can serve as inspiration in your own business model innovation process
  • By looking to these patterns, you can find a business model from a different industry or company that you can apply to your own business in an innovative way
  • Helps you understand your competitors and the leading innovators in your industry.

What is the Business Model Navigator?

The Business Model Navigator is a typology of 55 business models derived by researchers Oliver Gassmann and Karolin Frankenberger from four key elements: the customer, the customer value proposition, the main business activities, and the financial model. The Business Model Navigator includes descriptions of 55 types of business models as well as case studies of successful companies who have utilized the model.

You can find the descriptions of all 55 business models on the business model navigator website.

How to use the Business Model Navigator?

The Business Model Navigator can be used as part of a business model innovation process. This is a team exercise that helps you explore and incorporate the Business Model Navigator in designing or reconfiguring your business model can be in a collaborative workshop with your team.

1. Articulate Your Current Business Model Idea

If you have not already, articulate your business model to your team. On a large piece of paper, projector, or central screen, write down the current customer base, value proposition, and method for capturing value. If you have already filled in a Business Model Canvas, this model could also be used.

2. Discuss Failure Modes with Your Team
  1. Talk with your team about the existing business model.
  2. Brainstorm with your team why it may fail and write down these reasons below the articulated business model. Talking about reasons your business model could fail helps you overcome mental blocks and see your business model from an objective standpoint.
3. Business Model Research
  1. Break your team into pairs or trios and give them each a large piece of paper or section of a virtual white board.
  2. Split the 55 business model patterns evenly between the number of subgroups you have given them their models on notecards or sticky notes.
  3. Tell each team to spend 10 minutes investigating the patterns they were assigned on the Business Model Navigator website and choose at least three they would like to focus on.
4. Ideation Breakouts

In a 30-minute breakout, tell each team to discuss and take notes on how each business model they chose could be applied to your business or a particular problem.

5. Sharing and Takeaways

Each team returns and shares their favorite ideas with the larger group. One person documents each group’s work and takes note of the favorite ideas.

What’s up next?

Having used the Business Model Navigator to generate a range of new solutions for your business model, you can begin or re-do a Business Model Canvas or identify aspects of your business model to prototype and test.

Resources

Materials Needed:

Business Model Canvas / pitch / poster, Business Model Navigator Website, 55 notecards or with the names of business models, poster-size sheets of paper

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Module Methods
  • Business Model Innovation
  • Business Model Framework
  • Business Model Zoo™
  • Business Model Navigator
  • Business Model Canvas
  • Lean Startup For Corporates
  • Overcome Corporate Challenges
  • Business Model Health Check
  • Managing Platform BMs
  • Managing 2+ BMs
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