St. Galler Business Model Navigator

Type of record:
  • Strategy method
  • Macro method
  • Tool
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Ideal innovation phases for this method:
  1. Innovation Phase
  2. 1
  3. 2
  4. 3
  5. 4
  6. 5
  7. 6
  8. 7
  9. 8
  10. 9
  11. 10


On the basis of many years of work and experience with companies on the subject of business model development, the bmi_lab in St. Gallen has developed a simple yet holistic model to describe business models.
developed. This fits very well for the interactive sketching of business models in innovation workshops and trainings.

The model consists of four dimensions and is represented in a magic triangle.
1. the customer - who are the target customers?
2. the benefit promise - what do you offer the customers?
3. the value chain - how do you produce the service?
4. the yield mechanics - how is value achieved?

By answering these four questions and specifying the dimensions of the customer segments, the value proposition, the value chain and the earnings mechanics, the business model becomes tangible and provides a basis for innovation.

It is a magic triangle, because the optimization/change at one of the key points (e.g. yield optimization) automatically requires adjustments of the other two sides (benefit promise or value chain). If you change at least two of the four dimensions of a known business model, a good opportunity for a new business model arises.
  • Effective for disruptive innovations
  • Effective for highly complex challenges
  • Effective for incremental innovations and improvements
  • Effective for medium complex challenges
  • Effective for new business models
  • Effective for product innovations
  • Effective for radical innovations
  • Effective for service innovations
  • P1 Understanding (identify innovation fields - problem solving)
  • P4 Synthesize (create leading questions - take a stand)
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