Patterns

Multisided platforms

brings together two or more distinct but interdependent groups of customers. such platforms are of value to one groups of customers only if the other groups of customers are also present. the platform creates value by facilitating interactions between different groups. a multisided platform grows in value to the extent that it attracts more users, a phenomenon known as network effect

open business models

can be used by companies to create and capture value by systematically collaborating with outside partners. this may happen from the outside-in by exploiting external ideas within the firm, or from the inside-out by providing external parties with ideas or assets lying idle within the firm

free as a business model

in this model at least one substantial customer segment is able to continuously benefit from a free of charge offer. different patterns make the free offer possible. non-paying customers are financed by another part of the business model or by another customer segment

The long tail

is about selling less of more: they focus on offering a large number of niche products, each of which sells relatively infrequently. Aggregate sales of niche items an be as lucrative as the traditional model whereby a small number of bestsellers accounts for most revenues. These businesses require low inventory costs and strong platforms to make niche content readily available to interested buyers.

unbundling business models

the concept of the "unbundled" corporation holds that there are three fundamentally different types of businesses: customer relationship businesses, 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