What is the Business Model Navigator?
The Business Model Navigator (BMN) was developed by Prof. Oliver Gassmann, Karolin Frankenberger, and Michaela Csik at the University of St. Gallen and published in 2014. The key insight from their research: Around 90% of all business model innovations are based on recombining just 55 recurring patterns.
This means you do not have to reinvent the wheel. The world’s most successful business models—from Apple and Amazon to Airbnb—are based on established patterns that have been creatively transferred to new contexts. The Business Model Navigator makes this process systematic and accessible.
Compared to the Business Model Canvas, which describes an existing business model, the BMN is a generative tool: it actively helps invent new business model patterns.
The 55 business model patterns
The 55 patterns cover the full spectrum of known business model innovations. Some of the best known include:
| Pattern | Description | Example |
|---|---|---|
| Freemium | Basic version free, premium for a fee | Spotify, LinkedIn |
| Subscription | Regular payments instead of a one-time purchase | Netflix, SaaS |
| Two-Sided Market | Platform connects two user groups | Airbnb, Uber |
| Razor and Blade | Inexpensive base product, expensive consumables | Nespresso, Printers |
| Pay Per Use | Payment only for actual use | Car Sharing, Cloud |
| Open Business | Value creation through external contributions | Wikipedia, Linux |
| Long Tail | Many niche products instead of a few bestsellers | Amazon, Netflix |
| White Label | Product sold under another brand | Private labels in retail |
The Magic Triangle of business model innovation
The BMN structures every business model across four central dimensions – the “Magic Triangle”:
- Who? (Customer): Who are the target customers? Which buyer personas are addressed?
- What? (Value proposition): What is offered to the customer? Which value proposition is delivered?
- How? (Value chain): How is the offering created and delivered? Which value chain and partners are required?
- Why? (Revenue mechanics): Why is the business model profitable? Which revenue model and cost structure underpin it?
Innovation emerges when at least two of these four dimensions are changed. This distinguishes true business model innovation from mere product improvement.
BMN methodology: A new business model in 4 steps
- Initiation: Describe the current business model using the Magic Triangle. Identify dominant industry logic – which assumptions are considered “laws of nature” in your industry?
- Ideation: Use the 55 patterns as inspiration: Which patterns from other industries could be transferred to your context? Systematically explore them in innovation workshops.
- Integration: Combine promising pattern combinations into a coherent business model. Detail it with the Business Model Canvas.
- Implementation: Validate the new model using Lean Startup methodology, seek product-market fit, and implement it step by step.
Pattern transfer in practice
The power of the BMN lies in cross-industry transfer:
- Rolls Royce → Software: “Power by the Hour” (Pay per Use for aircraft engines) → SaaS subscription models
- Gillette → Printers: “Razor and Blade” (inexpensive razor, expensive blades) → inexpensive printer, expensive ink cartridges
- Airbnb → Machinery: “Two-Sided Market” (apartment rental) → machine-sharing platforms for Industry 4.0
- Spotify → Mechanical Engineering: “Freemium + Subscription” (music streaming) → Equipment-as-a-Service (Servitization)
Business Model Navigator vs. Business Model Canvas
| Criterion | Business Model Canvas | Business Model Navigator |
|---|---|---|
| Function | Description | Generation/Inspiration |
| Question | What does our BM look like? | Which BM could we use? |
| Approach | Fill in 9 building blocks | 55 patterns as inspiration |
| Application | Analysis, Communication | Ideation, Innovation |
In practice, both tools complement each other ideally: the BMN generates ideas, and the BMC structures and details them.
Business Model Navigator for SMEs
For Austrian SMEs, the BMN offers a particularly low-threshold entry into business model innovation:
- Inspiration instead of invention: You do not have to invent something radically new—you can combine and transfer intelligently.
- Workshop format: In a half-day innovation workshop, you can apply 10–15 patterns to your industry and generate 5–10 new business model ideas.
- Industry transfer: What is revolutionary in one industry can be standard in yours—and vice versa. Looking beyond your own horizon is key.
- Validation: Test promising pattern combinations in the market using Lean Startup methodology.
Innovation consulting and innovation coaching help facilitate the BMN process and translate the results into actionable strategies.
Develop new business models systematically
With the Business Model Navigator and 55 proven patterns, we work with you to develop innovative business model ideas for your company—in a compact workshop format.