A NOVEL BUSINESS MODEL FRAME FOR INNOVATIVE STARTUPS

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,

PDF

___

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.

Research Journal of Business and Management-Cover

Yayın Aralığı: Yılda 4 Sayı
Başlangıç: 2014
Yayıncı: PressAcademia

Arşiv