A NOVEL BUSINESS MODEL FRAME FOR INNOVATIVE STARTUPS

Year 2017, Volume: 4 Issue: 2, 126 - 137, 30.06.2017

Dante Jorge Dorantes Gonzalez

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.

Keywords

: Startup, startup financing, business model, innovation management, innovation process

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