Patterns in reverse engineering are a valuable resource when designing new things. They allow innovators to deconstruct existing products, systems, or business models to understand their core elements. Once the patterns are identified, they can be applied in new contexts to create fresh solutions. Did you know there are also patterns that focus on Business Model Design? These are called Business Model Patterns.

Business Model Patterns are the secret weapon for innovators, business leaders, and entrepreneurs, helping them create better, more resilient business models. This blog will explore the significance of Business Model Patterns and their role in reverse engineering successful business strategies. We will also provide examples to illustrate how these patterns work in practice.

What are Business Model Patterns?

Business Model Patterns, also known as “Business Model Hacks,” are recurring elements found in successful business models across industries. These patterns can be seen as the DNA of an effective business model. They provide a systematic approach to understanding the structural blueprint of an organization and can be used as inspiration to innovate, strengthen, or redesign existing business models.

By identifying and applying these patterns, businesses can reverse-engineer successful strategies and apply them in their own sectors. The reverse engineering approach focuses on studying existing successful models, breaking them down, and using their patterns to create something new. This process not only saves time but also enhances the chances of success, since you’re building on what is already proven to work.

What are the benefits of using patterns in reverse engineering business models?

Now that we’ve defined what Business Model Patterns are, it’s time to explore their advantages in reverse engineering. Business Model Patterns offer a structured method to innovate, enabling companies to:

• Design stronger business models: By reverse engineering successful models, businesses can identify patterns that lead to profitability, resilience, and scalability.
• Increase profitability and impact: Patterns reveal the components that create value, allowing organizations to focus on what works best.
• Reduce the risk of failure: Instead of starting from scratch, organizations can learn from proven patterns that have already demonstrated their effectiveness in various industries.

Research from St. Gallen University shows that 90% of successful business models from the past 50 years are not as “new” as they seem. They consist of innovative combinations of existing elements. By understanding, translating, recombining, and applying these patterns, companies can revolutionize their approach to innovation without constantly reinventing the wheel.

What are some common Business Model Patterns?

To better illustrate the concept, here are some Business Model Patterns commonly seen in successful companies:

1. Subscription model: Customers pay a recurring fee for continuous access to a product or service, such as streaming platforms or software-as-a-service (SaaS) companies.
2. Add-on model: Basic products are sold at a low price, with additional features or services offered at a premium. Think of airlines selling basic fares but charging extra for seat selection, luggage, and meals.
3. Direct selling model: By shortening the supply chain and selling directly to the customer, companies can reduce costs and enhance customer relationships. E-commerce platforms are prime examples of this pattern.
4. Buying club: Group purchasing is used to achieve lower prices, benefiting both the company and the consumer. An example is Costco, which leverages bulk purchasing for discounts.
5. Cash machine: Businesses generate cash flow before delivering the product or service. This pattern is often used in the subscription model or by crowdfunding platforms.
6. Revive a legacy: Companies can breathe new life into an old product or brand. For example, Nintendo’s revival of classic games and consoles appeals to nostalgia while modernizing the experience.

These patterns are just a few of the many options available. Each has the potential to unlock new opportunities for growth and transformation.

What resources are available to learn more about patterns in reverse engineering business models?

The concept of Business Model Patterns has been deeply researched by institutions like the St. Gallen University. Their Business Model Navigator provides an excellent starting point for companies interested in reverse engineering existing models. They suggest that patterns can help businesses create systematic innovation strategies by understanding what has worked in the past.

Some papers and resources worth reading include:

• A Review and Typology of Circular Economy Business Model Patterns
• Business Model Patterns for Disruptive Technologies
• The Business Model Pattern Database — A Tool for Systematic Business Model Innovation

But there are some disadvantages on these sources

While these sources provide valuable insights, they also have some disadvantages:

They don’t always encourage immediate action, which is critical when designing or re-engineering a business model.

They tend to be written in academic language, making them less accessible for a broader audience.

They often lack completeness, providing only a general overview without diving into practical examples or applications.

Discover Business Model Hacking

To address these gaps, I created Business Model Hacking. This practical method is designed for innovators, entrepreneurs, and business leaders who want to take immediate action by applying Business Model Patterns to their businesses. With over 200 hacks available, it offers a hands-on approach to unlocking new business model ideas or strengthening existing ones.

In my book, Business Model Hacking, you’ll find:

• A clear, actionable framework that helps you implement these patterns within your business.
• Innovation questions that guide you through the process of applying Business Model Patterns.
• Countless examples from a variety of industries to inspire your creativity and strategic thinking.

Time for action! Use patterns in reverse engineering to thrive

By now, I hope this blog has inspired you to think differently about Business Model Patterns and how they can be applied to your business. Patterns in reverse engineering are a powerful tool, allowing you to draw from the success of others while innovating in your own space.

Are you ready to boost your business with Business Model Patterns? Consider exploring our Business Growth Consulting services to guide you through the process. Don’t miss this opportunity to leverage proven business model patterns to drive innovation and success.

You’re lucky! Limited-offer: Subscribe to Business Model Hacking and get the digital version of the book and the cards for free.