A lot of startups and established companies are trying to compete on superior technology, products, services and price. They are stuck in a rat race. Yet, the world's most successful companies compete on superior business models. These business models build on patterns, i.e. repeatable configurations of different business model building blocks to strengthen an organization’s overall business model. This is the secret formula behind their success. Understanding those patterns helps entrepreneurs and business leaders create better, more resilient businesses.
A pattern is an arrangement of various elements to create a certain outcome. Architects, for instance, use a pattern when they associate large windows facing south in a living area to bring in lots of light. In mountainous areas, they might build on a different pattern, with larger walls and smaller windows to better conserve heat in winter. Architects use certain patterns over and over again because they lead to superior outcomes.
The same thinking can be applied to the business world. Yet, business model patterns are still underused today. A lot of companies focus on one or two elements of a business model, and not on all the building blocks and their potential configurations. The most popular elements they focus on are product, service, technology or price.
Many companies struggle with business model thinking. It will remain difficult for them to design superior business models. Unless they can access a good collection of business model patterns. That’s why we have developed a library of business model patterns. Entrepreneurs and business leaders can draw inspiration from those patterns, and build on them.
INVENT patterns help entrepreneurs and corporate innovation teams design better business models for their new ventures. For example, the business model blocks are configured to radically change how a company can reach and acquire a large number of customers in the Channel Kings pattern displayed below.
In The Invincible Company, we codify 9 different INVENT patterns and 27 flavors. We show each pattern as a repeatable configuration of different business model building blocks that strengthen an organization’s overall business model. Each pattern helps you go beyond the traditional means of competition on product, service, technology or price. Each pattern helps you focus on a different way to achieve a superior business model.
In a next blog post we will introduce the SHIFT patterns that help established companies shift from an outdated to a more competitive business model.
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