The “St. Gallen Business Model Navigator” is a tool set that can be used to develop business models. Key principles of this tool set are free thinking (“There are no sacred cows.”), extensive use of creativity techniques, including recombination of possibilities, an iterative solution approach, and consistency. Consistency between actual internal capabilities and realistic assumptions about competitive opportunities and customer perceptions of value is particularly important.
This navigator focuses on four dimensions: Who, What, How, and Value. The “who” stands for the definition and delineation of customer segments. The “What” stands for the definition of the offer and the customer benefit. The “How” stands for the value creation processes to create and market the service. “Value” stands for the proof of profitable feasibility of the business idea. According to the St. Gallen Business Model Navigator, these four dimensions should always be considered and developed together.
In St. Gallen, 55 patterns for business models have been developed, which are components of the St. Gallen Business Model Navigator. These patterns can be combined in a suitable way to form a coherent business model. These patterns are classified here according to the primary goal. But it is important to know that the decision for a pattern from the “pricing” area has implications for all other areas if it is to be implemented successfully. This is why an iterative approach and continuous fine-tuning of the chosen approaches are essential for a business model.