A novel business model frame for innovative startups - (article)

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.