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Unbundling Business Models
Osterwalder und Pigneur discuss the idea of business model patterns in Business Model Generation (p. 53 ff). These patterns describe business models with similar characteristics, similar arrangements of the building blocks or similar behaviours. The authors discuss five patterns:
For the purposes of a sample workshop within this Capstone Project, we will focus on the Unbundling pattern.
The concept of the “unbundled” corporation holds that there are three fundamentally different types of businesses: customer relationship business, product innovation businesses and infrastructure businesses. Each type has different economic, competitive and cultural imperatives. The three types may co-exist within a single corporation, but ideally they are “unbundled” into separate entities in order to avoid conflicts or undesirable trade-offs.
4 Types of Business
Version
Economics
Customer Relationship Management
High cost of customer acquisition makes it imperative to gain large wallet share, economies of scope are key.
Product Innovation
Early market entry enables charging premium price and acquiring large market share; speed is key.
Infrastructure Management
High fixed costs make large volumes essential to achieve low unit costs; economies of scale are key.
Bundled Telco
Covers differences between the content of Osterwalder’s and Pigneur’s bundled and unbundled Telco Models [[should be filtered to only display when Industry = Telco]]
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Note, that although Osterwalder and Pigneur refer to business model types, our table shows the heading Version. This a hint to the way in which we will support workshop interaction, but more on that later.
We will borrow the two examples from the book to provide sensible content for our exercises.
2 Business Models
Business Model
Description of Business Model
Private Banking
Private Banking model, as described by Osterwalder and Pigneur in their discussion of unbundling (p. 60 ff)
Telcos
Telecommunications companies, as described in Business Model Generation (p. 62 ff.)
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The interested reader is referred to or to to properly understand the concept of unbundling business models. For our purposes, we have enough information to start.
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