Summary of Oliver Gassmann & Karolin Frankenberger's The Business Model Navigator
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#1 The Business Model Navigator is a structured methodology that helps you innovate your business model. It consists of 55 patterns that help you change at least two of your business model’s dimensions.
#2 A business’s long-term competitive success depends on its ability to create an innovative business model. There are very few European firms that have been able to do so successfully.
#3 Business model innovation is the process of changing the way a business operates, and it is a major factor in driving growth and competitiveness. It is no longer sufficient to focus on product or process innovation, as increasing competitive pressure, globalisation, and competitors in the East all erode formerly prominent positions.
#4 Empirical research has shown that business model innovation carries a greater potential for success than product or process innovation. A company’s fate increasingly depends on its ability to apply the appropriate innovative business model that differentiates it from its competitors.
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Summary of Oliver Gassmann & Karolin Frankenberger's The Business Model Navigator - IRB Media
Insights on Oliver Gassmann & Karolin Frankenberger's The Business Model Navigator
Contents
Insights from Chapter 1
Insights from Chapter 2
Insights from Chapter 3
Insights from Chapter 1
#1
The Business Model Navigator is a structured methodology that helps you innovate your business model. It consists of 55 patterns that help you change at least two of your business model’s dimensions.
#2
A business’s long-term competitive success depends on its ability to create an innovative business model. There are very few European firms that have been able to do so successfully.
#3
Business model innovation is the process of changing the way a business operates, and it is a major factor in driving growth and competitiveness. It is no longer sufficient to focus on product or process innovation, as increasing competitive pressure, globalisation, and competitors in the East all erode formerly prominent positions.
#4
Empirical research has shown that business model innovation carries a greater potential for success than product or process innovation. A company’s fate increasingly depends on its ability to apply the appropriate innovative business model that differentiates it from its competitors.
#5
Many successful companies have been able to innovate their business models rather than their products. Amazon, for example, is the biggest bookseller in the world even though it doesn’t own any brick-and-mortar stores.
#6
The term business model has become a buzzword in every boardroom. It is used to describe a company’s current activities or to signal a break, as in We need to change our business model if we want to remain successful.
#7
Innovation of a business model requires modifying at least two of these four dimensions: value proposition, how the product is produced, distribution, and customer service. The effort of solely innovating the value proposition would merely result in a product innovation.
#8
The goal of every business model is to both create and capture value. Many business model innovators are good at creating value for their customers, but many fail to capture it for themselves.
#9
The Five Forces approach to business is outdated. In 2005, Kim and Mauborgne used their Blue Ocean Strategy approach to think outside Porter’s box for the first time. Their main message was that if you want to innovate your business model successfully, you must leave the competitive red ocean and create a new, uncontested market space.
#10
The company’s past successes can easily block new ideas. The memory of the company’s past successes can easily block new ideas. The questions new recruits ask their employers are the sorts of questions only a newcomer would think of.
#11
The music industry’s big five companies failed to break with their dominant industry logic in a timely manner. Instead of acknowledging that MP3 technology was revolutionising the music industry, they got involved in legal wrangles with new market entrants.
#12
The parking space industry, which is worth 25 billion dollars, has seen little innovation. Streetline, behind which was the discreet presence of IBM, equipped thousands of parking spaces with ultra-low-powered sensors that indicated whether a parking space was free or a car was present.
#13
The Pay As You Drive principle in the insurance industry is a good example of how a new technology can be used to create a new business model. It is vital to apply the technology in the framework of the right business model, however.
#14
The business model of the Crash Recorder is similar to that of the helpline box. It helps to ensure greater legal certainty, and it does not store data permanently. The company Progessive brought the Snapshot