Why Business Model Innovation Matters to Startups
Business model innovation is a popular topic in academia and practice. This chapter examines why business model innovation should matter to Internet-enabled startups. The results stem from a qualitative research project, which was embedded in the Startup Clinics on Business Models run by the Alexander von Humboldt Institute for Internet and Society (see Chap. 3). The one-on-one sessions and workshops provided founders with a platform to address challenges around their business models. Based on the observation of three years of Startup Clinic sessions, the author derived three insights into the relationship of startups and the process of business model innovation. These insights show that startups struggle to align their business models coherently, particularly in the early phases. At the same time, their founders’ backgrounds and experiences have a critical influence on the design of the business model. The author recommends that startups employ systematic approaches to business model innovation.
KeywordsBusiness model innovation Startups Business model research Core elements of a business model Multiple case study
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