St. Gallen Business Model Navigator
A systematic approach to business model innovation based on 55+ recurring patterns of successful companies.
PURPOSE
Most business model innovations are not entirely new inventions but creative recombinations of known patterns. The St. Gallen Business Model Navigator makes these patterns systematically usable and reduces innovation risk. It helps companies look beyond their own industry and transfer proven business logics to new contexts.
HOW TO USE
You first analyze your own business model using the Magic Triangle (Who, What, How, Why). Then the 55+ business model patterns are used as inspiration to develop new combinations and adaptations. Promising patterns are transferred to your own situation and tested in prototypes.
WHAT IT IS
The St. Gallen Business Model Navigator is a framework for systematic business model innovation developed at the University of St. Gallen by Gassmann, Frankenberger, and Csik. It is based on the finding that over 90% of all business model innovations are recombinations of 55+ recurring patterns. The framework consists of the Magic Triangle (Who-What-How-Why), the pattern cards, and a structured innovation process.
EXAMPLE
Example: Your mid-sized manufacturing company currently only sells hardware and is looking for new business model approaches. Using the St. Gallen Business Model Navigator, you analyze 55+ proven patterns and discover that 'Razor and Blade' (cheap machine, expensive consumables) and 'Pay per Use' could be a fit. You develop a service platform as a complement.