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A NOVEL BUSINESS MODEL FRAME FOR INNOVATIVE STARTUPS

Year 2017, Volume: 4 Issue: 2, 126 - 137, 30.06.2017
https://doi.org/10.17261/Pressacademia.2017.467

Abstract

Purpose-  This paper presents a novel
business model frame that is meant to explicitly include several approaches of
the Theory of Inventive Problem Solving, disruptive strategies, business
metrics, problem statement and opportunity formulation, as well as improvements
on the profit formula.

Methodology-
The analysis first addresses the business model canvas, sketching and
framing key points behind the development of startups. The analysis on existing
business models covers the firm’s value proposition, partners, resources,
activities, customer relationships, distribution channels, customers, revenue
streams and cost structure. When it comes to innovative startups, the author
emphasizes that existing template do not explicitly include innovation
measures, no problem/opportunity formulation, intellectual property, or even
basic business model concepts as the profit formula. Hence, an innovative frame
is developed primarily using the Theory of Inventive Problem Solving technique
applied to business and management such as multi-screen analysis of
value-conflict mapping, trends of ideality of business system evolution
positioning, among others; but also, intellectual property, disruptive
strategies, and open innovation, as well as startup metrics.

Findings- A novel
frame is proposed, providing general guidelines for each of the sections. Any
entrepreneur designing his/her own startup should be able to justify, if not
all, most of the items to be able to demonstrate the idea strengths. Regarding
the specific building blocks: “Product Formulation and Inventive Problem
Solving” and “Disruption Strategy”, certain short training should be necessary.







Conclusion- The proposed
business model frame visually and concisely sketches, besides accurately
stating traditional business concepts, the key innovation concepts that any
startup should integrate to be a game-changer in a competitive market. The
developed frame is a helpful mapping and evaluation tool to accurately describe
the business differentiation and innovation attractiveness to potential
investors, incubators and accelerators.

References

  • Altman, S., 2014, “Sam Altman on Start-ups, Venture Capital, and the Y Combinator”, EconTalk Episode with Sam Altman. Hosted by Russ Roberts, July 28, 2014. http://www.econtalk.org/archives/2014/07/sam_altman_on_s.html
  • Altshuller, G. 1988, "Creativity as an Exact Science", Gordon & Breach, New York.
  • Altshuller, G., Vertkin, I. 1994, "How to Become a Genius: Life strategy of creative personality", Minsk, Belarus (In Russian)
  • Bevis, M. 2014, “Half of U.S. Working Adults Own or Want to Own Their Own Businesses, Finds University of Phoenix Survey”, University of Phoenix Press Release, August 4, 2014 http://www.phoenix.edu/news/releases/2014/08/university-of-phoenix-survey-finds-half-of-adultswant-own-business.html
  • Chesbrough, H.W. 2003, “Open Innovation: The New Imperative for Creating and Profiting from Technology”, Harvard Business School Press, Boston.
  • Chesbrough, H.W., Vanhaverbeke, W., West, J. (Eds.), 2006. Oxford University Press, London.
  • Crichton, D. 2014, “The Complete Quantitative Guide To Judging Your Startup”, techcrunch.com, Jan 31, 2014, http://techcrunch.com/2014/01/31/the-complete-quantitative-guide-to-judging-your-startup/
  • Dorantes-Gonzalez, D.J., Küçükaydın, H., Özlem, Ş., Bulgan, G., Aydın, U., Son Turan, S., Karamollaoğlu, N., Teixeira, F.F. 2015, “Improved Business Model Representation of Innovation Concepts”, Proceedings of the 2015 World Conference on Technology, Innovation and Entrepreneurship, Istanbul, Turkey, May 28-30.
  • Gomila, J. 2009, "Prospecting New Business Models with TRIZ", in Proceedings of TRIZCON-2009, March 16- 18, California, USA.
  • Huizingh, E.K.R.E. 2011, “Open innovation: State of the art and future perspectives”, Technovation 31 (1), pp. 2–9.
  • Huston, L., Sakkab, N. 2006, “Connect and develop: inside Procter & Gamble's new model for innovation” Harvard Business Review 84, pp. 58–66.
  • Ishida, A. 2003, "UsingTRIZtoCreateInnovativeBusiness Models and Products", in Proceedings of ETRIA TRIZ Future 2003, November 12-14, 2003, Aachen, Germany.
  • Johnson, M.W., Christensen, C.M., Kagermann, H. 2008, “Reinventing Your Business Model”, Harvard Business Review, December 2008. https://hbr.org/2008/12/reinventing-your-business-model/ar/1x
  • Lord, J. 2014, “Want to Stand Out From the Crowd? Know Your Unique Value Proposition”, Entrepreneur, April 09, 2014. http://www.entrepreneur.com/article/232893
  • Mann, D., Domb, E. 1999, "40 Inventive (Management) Principles With Examples," The TRIZ Journal, September, www.triz-journal.com Mann D. 2004, "Hands-on Systematic Innovation for Business and Management", Lazarus Press.
  • Maurya, A. 2010, “Practice Trumps Theory, How to Document Your Business Model On 1 Page”, August 11, 2010. http://practicetrumpstheory.com/businessmodelcanvas/
  • Maurya, A. 2012, “Practice Trumps Theory, Why Lean Canvas vs Business Model Canvas?” February 27, 2012. http://practicetrumpstheory.com/why-lean-canvas/
  • Merrill, C. 2015, “Business Plans. Skip the Boring Business Plan. Focus on This Strategy Instead”, Entrepreneur, February 06, 2015. http://www.entrepreneur.com/article/242452?utm_source=pocket&utm_medium=email&utm_campaign=pockethits
  • Murashkovsky, Y. 2007, "Biography of Arts", Scandinavia, Petrozavodsk (In Russian)
  • Murphy, J. 2013, “Why Do You Do What You Do?” 09/06/2013. http://www.huffingtonpost.com/john-murphy/why-do-you-do-what-youdo_b_3873650.html
  • Oppong, T. 2015, “Bill Gross (Founder of Idealab) Reveals The Single Biggest Reason Why Startups Succeed (Backed by Research)” http://alltopstartups.com/2015/06/11/bill-gross-on-why-startups-succeed/, Jun 11, 2015, accessed on 25.03.2017.
  • Osterwalder, A., 2004. The Business Model Ontology: A Proposition in the Design Science Approach, unpublished dissertation, University of Lausanne.
  • Osterwalder, A., Pigneur, Y. 2010, "Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers", Wiley.
  • Sinek, S. 2014, “How great leaders inspire action”, TED 2014, http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action#t-198730
  • Souchkov, V. 1998, "M-TRIZ: Application of TRIZ to Solve a Business Problem," white paper, Insytec.
  • Souchkov, V, Hoeboer, R., van Zutphen, M. 2007, "Application of Root-Conflict Analysis (RCA+) to Solve Business Problems", The TRIZ Journal, February 2007, www.triz-journal.com
  • Souchkov, V. 2009, "A Guide to TRIZ and xTRIZ Techniques and References: A Course Book for Business and Management". ICG T&C.
  • Souchkov, V. 2010, “TRIZ and Systematic Business Model Innovation”, Global ETRIA Conference ‘TRIZ Future 2010’, Bergamo, Italy, November 3-5.
  • Steiner, A. 2014, “Élaboration et Mise En Oeuvre D‘un Modèle Organisationnel Favorisant L'open Innovation: Contribution à L'innovation Collaborative”, Thesis, Université de Lorraine
  • Vikentiev, I. 2007, "Principles of Advertisement and Public Relations", TRIZ-Chance and Business Press, St. Petersburg (In Russian) von Hippel, E., von Krogh, G. 2006, “Free revealing and the private collective model for innovation incentives”, R&D Management 36 (3), pp. 295–306.
  • von Hippel, E. 2010, “Comment on "Is open innovation a field of study or a communication barrier to theory development?" Technovation 30, 555.
Year 2017, Volume: 4 Issue: 2, 126 - 137, 30.06.2017
https://doi.org/10.17261/Pressacademia.2017.467

Abstract

References

  • Altman, S., 2014, “Sam Altman on Start-ups, Venture Capital, and the Y Combinator”, EconTalk Episode with Sam Altman. Hosted by Russ Roberts, July 28, 2014. http://www.econtalk.org/archives/2014/07/sam_altman_on_s.html
  • Altshuller, G. 1988, "Creativity as an Exact Science", Gordon & Breach, New York.
  • Altshuller, G., Vertkin, I. 1994, "How to Become a Genius: Life strategy of creative personality", Minsk, Belarus (In Russian)
  • Bevis, M. 2014, “Half of U.S. Working Adults Own or Want to Own Their Own Businesses, Finds University of Phoenix Survey”, University of Phoenix Press Release, August 4, 2014 http://www.phoenix.edu/news/releases/2014/08/university-of-phoenix-survey-finds-half-of-adultswant-own-business.html
  • Chesbrough, H.W. 2003, “Open Innovation: The New Imperative for Creating and Profiting from Technology”, Harvard Business School Press, Boston.
  • Chesbrough, H.W., Vanhaverbeke, W., West, J. (Eds.), 2006. Oxford University Press, London.
  • Crichton, D. 2014, “The Complete Quantitative Guide To Judging Your Startup”, techcrunch.com, Jan 31, 2014, http://techcrunch.com/2014/01/31/the-complete-quantitative-guide-to-judging-your-startup/
  • Dorantes-Gonzalez, D.J., Küçükaydın, H., Özlem, Ş., Bulgan, G., Aydın, U., Son Turan, S., Karamollaoğlu, N., Teixeira, F.F. 2015, “Improved Business Model Representation of Innovation Concepts”, Proceedings of the 2015 World Conference on Technology, Innovation and Entrepreneurship, Istanbul, Turkey, May 28-30.
  • Gomila, J. 2009, "Prospecting New Business Models with TRIZ", in Proceedings of TRIZCON-2009, March 16- 18, California, USA.
  • Huizingh, E.K.R.E. 2011, “Open innovation: State of the art and future perspectives”, Technovation 31 (1), pp. 2–9.
  • Huston, L., Sakkab, N. 2006, “Connect and develop: inside Procter & Gamble's new model for innovation” Harvard Business Review 84, pp. 58–66.
  • Ishida, A. 2003, "UsingTRIZtoCreateInnovativeBusiness Models and Products", in Proceedings of ETRIA TRIZ Future 2003, November 12-14, 2003, Aachen, Germany.
  • Johnson, M.W., Christensen, C.M., Kagermann, H. 2008, “Reinventing Your Business Model”, Harvard Business Review, December 2008. https://hbr.org/2008/12/reinventing-your-business-model/ar/1x
  • Lord, J. 2014, “Want to Stand Out From the Crowd? Know Your Unique Value Proposition”, Entrepreneur, April 09, 2014. http://www.entrepreneur.com/article/232893
  • Mann, D., Domb, E. 1999, "40 Inventive (Management) Principles With Examples," The TRIZ Journal, September, www.triz-journal.com Mann D. 2004, "Hands-on Systematic Innovation for Business and Management", Lazarus Press.
  • Maurya, A. 2010, “Practice Trumps Theory, How to Document Your Business Model On 1 Page”, August 11, 2010. http://practicetrumpstheory.com/businessmodelcanvas/
  • Maurya, A. 2012, “Practice Trumps Theory, Why Lean Canvas vs Business Model Canvas?” February 27, 2012. http://practicetrumpstheory.com/why-lean-canvas/
  • Merrill, C. 2015, “Business Plans. Skip the Boring Business Plan. Focus on This Strategy Instead”, Entrepreneur, February 06, 2015. http://www.entrepreneur.com/article/242452?utm_source=pocket&utm_medium=email&utm_campaign=pockethits
  • Murashkovsky, Y. 2007, "Biography of Arts", Scandinavia, Petrozavodsk (In Russian)
  • Murphy, J. 2013, “Why Do You Do What You Do?” 09/06/2013. http://www.huffingtonpost.com/john-murphy/why-do-you-do-what-youdo_b_3873650.html
  • Oppong, T. 2015, “Bill Gross (Founder of Idealab) Reveals The Single Biggest Reason Why Startups Succeed (Backed by Research)” http://alltopstartups.com/2015/06/11/bill-gross-on-why-startups-succeed/, Jun 11, 2015, accessed on 25.03.2017.
  • Osterwalder, A., 2004. The Business Model Ontology: A Proposition in the Design Science Approach, unpublished dissertation, University of Lausanne.
  • Osterwalder, A., Pigneur, Y. 2010, "Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers", Wiley.
  • Sinek, S. 2014, “How great leaders inspire action”, TED 2014, http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action#t-198730
  • Souchkov, V. 1998, "M-TRIZ: Application of TRIZ to Solve a Business Problem," white paper, Insytec.
  • Souchkov, V, Hoeboer, R., van Zutphen, M. 2007, "Application of Root-Conflict Analysis (RCA+) to Solve Business Problems", The TRIZ Journal, February 2007, www.triz-journal.com
  • Souchkov, V. 2009, "A Guide to TRIZ and xTRIZ Techniques and References: A Course Book for Business and Management". ICG T&C.
  • Souchkov, V. 2010, “TRIZ and Systematic Business Model Innovation”, Global ETRIA Conference ‘TRIZ Future 2010’, Bergamo, Italy, November 3-5.
  • Steiner, A. 2014, “Élaboration et Mise En Oeuvre D‘un Modèle Organisationnel Favorisant L'open Innovation: Contribution à L'innovation Collaborative”, Thesis, Université de Lorraine
  • Vikentiev, I. 2007, "Principles of Advertisement and Public Relations", TRIZ-Chance and Business Press, St. Petersburg (In Russian) von Hippel, E., von Krogh, G. 2006, “Free revealing and the private collective model for innovation incentives”, R&D Management 36 (3), pp. 295–306.
  • von Hippel, E. 2010, “Comment on "Is open innovation a field of study or a communication barrier to theory development?" Technovation 30, 555.
There are 31 citations in total.

Details

Journal Section Articles
Authors

Dante Jorge Dorantes Gonzalez This is me

Publication Date June 30, 2017
Published in Issue Year 2017 Volume: 4 Issue: 2

Cite

APA Gonzalez, D. J. D. (2017). A NOVEL BUSINESS MODEL FRAME FOR INNOVATIVE STARTUPS. Research Journal of Business and Management, 4(2), 126-137. https://doi.org/10.17261/Pressacademia.2017.467
AMA Gonzalez DJD. A NOVEL BUSINESS MODEL FRAME FOR INNOVATIVE STARTUPS. RJBM. June 2017;4(2):126-137. doi:10.17261/Pressacademia.2017.467
Chicago Gonzalez, Dante Jorge Dorantes. “A NOVEL BUSINESS MODEL FRAME FOR INNOVATIVE STARTUPS”. Research Journal of Business and Management 4, no. 2 (June 2017): 126-37. https://doi.org/10.17261/Pressacademia.2017.467.
EndNote Gonzalez DJD (June 1, 2017) A NOVEL BUSINESS MODEL FRAME FOR INNOVATIVE STARTUPS. Research Journal of Business and Management 4 2 126–137.
IEEE D. J. D. Gonzalez, “A NOVEL BUSINESS MODEL FRAME FOR INNOVATIVE STARTUPS”, RJBM, vol. 4, no. 2, pp. 126–137, 2017, doi: 10.17261/Pressacademia.2017.467.
ISNAD Gonzalez, Dante Jorge Dorantes. “A NOVEL BUSINESS MODEL FRAME FOR INNOVATIVE STARTUPS”. Research Journal of Business and Management 4/2 (June 2017), 126-137. https://doi.org/10.17261/Pressacademia.2017.467.
JAMA Gonzalez DJD. A NOVEL BUSINESS MODEL FRAME FOR INNOVATIVE STARTUPS. RJBM. 2017;4:126–137.
MLA Gonzalez, Dante Jorge Dorantes. “A NOVEL BUSINESS MODEL FRAME FOR INNOVATIVE STARTUPS”. Research Journal of Business and Management, vol. 4, no. 2, 2017, pp. 126-37, doi:10.17261/Pressacademia.2017.467.
Vancouver Gonzalez DJD. A NOVEL BUSINESS MODEL FRAME FOR INNOVATIVE STARTUPS. RJBM. 2017;4(2):126-37.

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