Business model patterns are reusable business model architectural components, which can be used in generating a new business model. [1] In the process of new business model generation, the business model innovator can use one or more of these patterns to creating a new business model. Each of these patterns has similarities in characteristics, business model building blocks arrangements and behaviors. Alexander Osterwalder call these similarities the "business model pattern". [2] [3]
"Innovation, entrepreneurship and disruption are not about creative genius",
says A. Osterwalder explaining the need for business model patterns. [4]
Given the goal of reducing costs of the complex software development, it is necessary to use ready-made unified solutions. The pattern facilitates communication between developers via referring to well-known constructions and reduces the number of errors. [5]
A design pattern is the re-usable form of a solution to a design problem. The idea was introduced by the architect Christopher Alexander and has been adapted for various other disciplines, particularly software engineering. Design patterns are commonly used to improve the flexibility of object-oriented systems.
In mathematics, a fractal is a geometric shape containing detailed structure at arbitrarily small scales, usually having a fractal dimension strictly exceeding the topological dimension. Many fractals appear similar at various scales, as illustrated in successive magnifications of the Mandelbrot set. This exhibition of similar patterns at increasingly smaller scales is called self-similarity, also known as expanding symmetry or unfolding symmetry; if this replication is exactly the same at every scale, as in the Menger sponge, the shape is called affine self-similar. Fractal geometry lies within the mathematical branch of measure theory.
Software architecture is the set of structures needed to reason about a software system and the discipline of creating such structures and systems. Each structure comprises software elements, relations among them, and properties of both elements and relations.
A startup or start-up is a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable business model. While entrepreneurship includes all new businesses, including self-employment and businesses that do not intend to go public, startups are new businesses that intend to grow large beyond the solo founder. At the beginning, startups face high uncertainty and have high rates of failure, but a minority of them do go on to become successful and influential.
A business model describes how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. The process of business model construction and modification is also called business model innovation and forms a part of business strategy.
Machine learning (ML) is a field of study in artificial intelligence concerned with the development and study of statistical algorithms that can learn from data and generalize to unseen data, and thus perform tasks without explicit instructions. Recently, generative artificial neural networks have been able to surpass many previous approaches in performance.
Social entrepreneurship is an approach by individuals, groups, start-up companies or entrepreneurs, in which they develop, fund and implement solutions to social, cultural, or environmental issues. This concept may be applied to a wide range of organizations, which vary in size, aims, and beliefs. For-profit entrepreneurs typically measure performance using business metrics like profit, revenues and increases in stock prices. Social entrepreneurs, however, are either non-profits, or they blend for-profit goals with generating a positive "return to society". Therefore, they use different metrics. Social entrepreneurship typically attempts to further broad social, cultural and environmental goals often associated with the voluntary sector in areas such as poverty alleviation, health care and community development.
Hierarchical temporal memory (HTM) is a biologically constrained machine intelligence technology developed by Numenta. Originally described in the 2004 book On Intelligence by Jeff Hawkins with Sandra Blakeslee, HTM is primarily used today for anomaly detection in streaming data. The technology is based on neuroscience and the physiology and interaction of pyramidal neurons in the neocortex of the mammalian brain.
Steve Blank is an American entrepreneur, educator, author and speaker based in Pescadero, California.
Entrepreneurship is the creation or extraction of economic value in ways that generally entail beyond the minimal amount of risk, and potentially involving values besides simply economic ones.
Innovation management is a combination of the management of innovation processes, and change management. It refers to product, business process, marketing and organizational innovation. Innovation management is the subject of ISO 56000 series standards being developed by ISO TC 279.
A minimum viable product (MVP) is a version of a product with just enough features to be usable by early customers who can then provide feedback for future product development.
Lean startup is a methodology for developing businesses and products that aims to shorten product development cycles and rapidly discover if a proposed business model is viable; this is achieved by adopting a combination of business-hypothesis-driven experimentation, iterative product releases, and validated learning. Lean startup emphasizes customer feedback over intuition and flexibility over planning. This methodology enables recovery from failures more often than traditional ways of product development.
Alexander Osterwalder is a Swiss business theorist, author, speaker, consultant, and entrepreneur, known for his work on business modeling and the development of the Business Model Canvas.
Yves Pigneur is a Belgian computer scientist, and Professor of Management Information Systems at the University of Lausanne since 1984, known for his work on the business model canvas with Alexander Osterwalder. He is considered a "mastermind" among business strategics, his canvas have been used by numerous companies such as P&G, Amazon, Lockheed Martin and Tesla.
The Business Model Canvas is a strategic management template used for developing new business models and documenting existing ones. It offers a visual chart with elements describing a firm's or product's value proposition, infrastructure, customers, and finances, assisting businesses to align their activities by illustrating potential trade-offs.
Ecopreneurship is a term coined to represent the process of principles of entrepreneurship being applied to create businesses that solve environmental problems or operate sustainably. The term began to be widely used in the 1990s, and it is otherwise referred to as "environmental entrepreneurship." In the book Merging Economic and Environmental Concerns Through Ecopreneurship, written by Gwyn Schuyler in 1998, ecopreneurs are defined as follows:
"Ecopreneurs are entrepreneurs whose business efforts are not only driven by profit, but also by a concern for the environment. Ecopreneurship, also known as environmental entrepreneurship and eco-capitalism, is becoming more widespread as a new market-based approach to identifying opportunities for improving environmental quality and capitalizing upon them in the private sector for profit. "
Lean LaunchPad is an entrepreneurship methodology created by Steve Blank to test and develop business models based on querying and learning from customers. It is said to be based on the scientific method and combines experiential learning with “The three building blocks of a successful lean startup”: Alexander Osterwalder's "Business Model Canvas", Steve Blank's "Customer Development Model", and Agile Engineering.
Customer development is a formal methodology for building startups and new corporate ventures. It is one of the three parts that make up a lean startup.
The Platform Canvas is a conceptual framework dedicated to explain the mechanisms of multi-sided platform organizations, and how value is created, captured and delivered in the platform economy. Multi-sided platforms, also called two-sided markets, like Amazon, Uber and Airbnb, create value primarily by enabling direct interactions between distinct groups of affiliated customers. The framework serves as a strategic management tool to assist academics, entrepreneurs and managers identify the essential elements in platform businesses, understand the interrelations of these element and recognize the dynamics of associated network effects. The 12 components of the canvas highlight the internal and external factors of the business model, and the orchestration of the affiliated ecosystems.