Modern Germany

Moments of Reflection: Germany’s Post-Premium-Auto Depression and the Business Model Innovation Remedy

Is Germany Still Great? A Nation in Search of Its Identity

There are moments when a country looks in the mirror and asks itself: “Am I still great?” France has known this feeling for a long time. The Grand Nation was once the center of the world—culturally, politically, militarily. But then came Waterloo, Indochina, and Algeria, and France had to come to terms with a new role: less empire, more joie de vivre. And England? The empire where the sun never set now glows only as a nostalgic memory on tea mugs. But at least the British have the humor to accompany their decline with dry sarcasm.

Germany’s Post-Premium-Auto Depression: A Nation in Limbo

And Germany? Germany is in the midst of its own post-premium-auto depression. Of course, Germany never had a classic world empire like France or England (colonies don’t really count when you lose them so quickly). But economically and industrially, Germany was world-class—the hidden leader of Europe. Made in Germany stood for quality, its engineering for perfection, its cars for the dream of freedom on the Autobahn. And now? Bureaucracy stifles innovation, anxious glances are cast towards China, and a creeping feeling emerges: Are the glory days over?

Paralyzed by Fear: Why Germany is Stuck in the Past

Germany, however, remains stuck in its collective depression. While other countries reinvent themselves, advanced technologies like heat pumps are labeled leftist woke tech, and only a heating system that burns something is considered a “real” heater. A real car has a combustion engine and of course, German engineers will find magical ways to manufacturer sufficent efuels by beating the laws of physics. While the world moves forward, Germany remains paralyzed by fear. But why? It’s high time Germany stops treating its past success story as a future blueprint and instead sees it as the beginning of a new chapter. Instead of nostalgically clinging to “the good old days,” we should ask ourselves: What could ‘Made in Germany’ stand for in the next 50 years?

The Key to Germany’s Future: Business Model Innovation

One answer is Business Model Innovation. Germany has always been strong in engineering, manufacturing, and process optimization. But today, that’s not enough. The real game-changer is not just making better products but creating new ways of delivering value, monetizing innovation, and structuring businesses for the digital and sustainable era. The world’s most successful companies don’t just improve—they reinvent.

Irony of History: Business Model Innovation—An Idea pioneered by German speakers Ignored by Germany

And here comes the irony: Business Model Innovation was first conceptualized by a German and Swiss. While many today associate the concept with Silicon Valley, the foundational work was actually done in Germany—by Dr. Patrick Stähler, who was the first to systematically analyze, structure, and define business models as a holistic concept. His pioneering dissertation „Geschäftsmodelle in der digitalen Ökonomie“ was published in 2001—in German. His insights laid the foundation for what later became a global megatrend.

It was Alexander Osterwalder, a Swiss-German, who later built upon this work and made it globally accessible with the Business Model Canvas, a visual tool that helped popularize the concept worldwide. His structured approach brought Business Model Innovation into boardrooms and startups alike—everywhere, except in Germany, where industrial efficiency still overshadowed business model reinvention.

But what did Germany do? Instead of embracing this revolutionary idea, German companies largely ignored it. Meanwhile, American tech giants and entrepreneurs in China took the idea and ran with it. Amazon, Google, Uber, and Airbnb—all are prime examples of companies that didn’t just build better products but redefined entire industries through new business models. The world adopted what was discovered in Germany, while German companies kept optimizing the past.

From Incrementalism to Disruption: Rethinking Value Creation

Instead of waiting for regulations to change or markets to stabilize, Germany needs to actively shape the future by rethinking how value is created and captured. That means moving beyond incremental improvements and embracing bold, disruptive ideas—whether through digital platforms, circular economy models, or entirely new approaches to industry and service. Business Model Innovation is not just an option; it’s the only way forward.

Germany’s New Mission: Reinvent, Don’t Regret

Because the world is changing—with or without Germany. Maybe it’s time for Germany to rise from its depression and stop making itself smaller than it is. What we need is not “everything was better in the past”, but “tomorrow can be even better.”

Let’s get to work—with a bit of French ease, British humor, and a solid dose of Business Model Innovation.

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