Definition: What Are Business Model Patterns?
Business Model Patterns are recurring configurations and mechanisms that can be observed in successful business models across various industries. They describe proven approaches for how companies create, deliver, and capture value.
The concept originates from the research of the University of St. Gallen, which identified over 55 fundamental patterns. These patterns form a kind of toolkit for systematic business model innovation – comparable to design patterns in software development.
Important: A business model pattern is not a ready-made solution, but a proven structure that must be adapted and applied to one’s own context. Its strength lies in the creative recombination of multiple patterns into a unique business model.
Overview of the Most Important Business Model Patterns
Among the more than 55 identified patterns, some have proven particularly effective and widespread:
Revenue Model Patterns
- Subscription Model: Recurring revenue through regular payments (e.g., Netflix, SaaS providers)
- Freemium: Free basic version, premium features for a fee (e.g., Spotify, LinkedIn)
- Razor-and-Blade: Inexpensive base product, profit from consumables (e.g., Nespresso, printers)
- Pay-per-Use: Billing based on actual usage instead of a flat rate
Value Creation Patterns
- Platform / Multi-Sided Platform: Mediation between two or more user groups (e.g., Airbnb, Uber)
- Open Innovation: Integration of external ideas and resources into the innovation process
- Crowdsourcing: Utilizing the collective intelligence of a community
- Servitization: Supplementing physical products with digital services
Distribution Channel Patterns
- Direct-to-Consumer (D2C): Direct sales without intermediaries
- White Label: Selling products under another brand
- Franchising: Scaling through licensed partners
55+ Patterns According to the St. Gallen Approach
The research group led by Oliver Gassmann at the University of St. Gallen has systematically cataloged over 55 business model patterns and published them in the Business Model Navigator. The key insight: Approximately 90% of all business model innovations are based on the recombination of these existing patterns.
The patterns are organized along four dimensions:
- Who? – The target customer (Buyer Persona, Target Group Analysis)
- What? – The Value Proposition
- How? – The Value Chain
- Why? – The Revenue Model
These four questions form the so-called “Magic Triangle” of business model innovation and help to systematically transfer each pattern to one’s own situation.
Applying Business Model Patterns in Practice
Business model patterns only unfold their value in practical application. The following approaches have proven effective:
Analogy Transfer: Transfer a pattern from a foreign industry to your own. Example: Gillette’s Razor-and-Blade pattern has been applied to coffee machines (Nespresso), printers (HP), and even software.
Pattern-Storming: In an innovation workshop, various patterns are systematically applied to the current business situation, and the most promising combinations are identified.
Prototyping with the Business Model Canvas: Visualize the new business model on a canvas and test it as a lean hypothesis with the Lean Canvas.
Advantages for SMEs and Mid-Sized Companies
Especially for small and medium-sized enterprises, business model patterns offer decisive advantages:
- Risk Reduction: Proven patterns significantly reduce innovation risk, as they are already successful in other contexts
- Faster Innovation: Instead of starting from scratch, you build on proven structures
- Systematic Approach Instead of Coincidence: Business model patterns make innovation plannable and repeatable
- Diversification: New revenue models open up additional income streams
- Competitive Advantage: Patterns from other industries bring disruptive potential to traditional markets
Combining Patterns: The Key to Success
The most successful business models emerge from the creative combination of multiple patterns. Some particularly effective combinations:
- Freemium + Subscription: Free entry with upgrade to subscription model (Spotify, Dropbox)
- Platform + Long Tail: Aggregate niche products via a platform (Amazon Marketplace, Etsy)
- Servitization + Pay-per-Use: Product as a service with usage-based billing (Rolls-Royce “Power by the Hour”)
- Direct-to-Consumer + Subscription: Direct sales in a subscription model (Dollar Shave Club, HelloFresh)
The art lies in combining patterns in such a way that they reinforce each other and result in a coherent overall model.
How to Use Business Model Patterns
- Inventory: Document your current business model in the Business Model Canvas
- Pattern Screening: Analyze the 55+ patterns and identify 5-10 relevant candidates
- Analogy Transfer: Transfer patterns from other industries to your context
- Combine and Prototype: Develop 3-5 business model prototypes by combining patterns
- Test: Validate the most promising models using Lean Startup methods
Want to use business model patterns strategically?
We help you identify the right patterns for your company and translate them into a viable business model.
Frequently Asked Questions
What is a Business Model Pattern?
A business model pattern is a recurring, proven configuration that describes how companies create, deliver, and capture value. Examples include subscription models, freemium, or platform business models. They serve as inspiration and a blueprint for one’s own business model innovation.
How many business model patterns are there?
The University of St. Gallen has identified over 55 fundamental business model patterns and described them in the Business Model Navigator. Recent research continuously expands this collection, for example, with digital and platform-based patterns.
Which business model patterns are the most successful?
Particularly successful are patterns that generate recurring revenue (subscription, freemium) or leverage network effects (platform models). The most successful business models usually combine several patterns – such as freemium with subscription or platform with long tail.
How can SMEs use business model patterns?
SMEs can use business model patterns as an innovation tool by transferring proven patterns from other industries to their own context. This reduces innovation risk and accelerates the development of new revenue streams – for example, by adding services (servitization) or building digital distribution channels.