Description

According to Gassmann et al., (2014), BMN is the power of recombination and creative replication by means of 55 business model patterns, which can serve as blueprints for any business model innovation efforts. The University of St. Gallen developed this Magic Triangle, which has four dimensions (Who-What-How-Why). The goal is to get clarity on the type of client segmentation, value proposition, value chain, and profit mechanism, as well as to make the business model understandable, all while setting the groundwork for future innovation. As adjusting one corner entails adjusting the other two, the triangle is known as a ‘magic’ triangle. In summary, a BMN defines who your customers are, what you are selling, how you produce your offering, and why your business is profitable. Who-what- how-why describes a business model of which the first two (who and what) address its external aspects and the second two (how and why) address its internal dimensions?