What are the different types of business models? A successful business model is one that creates and, over time, builds on a competitive advantage. In their book Business Model Generation, authors Osterwalder and Pigneur discuss five different types of business models: 1 unbundled, 2 long tail, 3 multi-sided platform, 4 free. The open business model is the integration of open innovation with a business model. It is an important bridge between innovation and organizational performance in the public and private sector.