Business Model Design and Innovation process (Case studies of four IT Start-ups within Kathmandu valley, Nepal)

Abstract

The business model design has not been highly researched in the Nepalese start-ups. As start-ups face the threat of failure due to a lack of suitable business model, this thesis is intended to examine the business model design and innovation process in IT start-ups within Kathmandu valley of Nepal. The finding shows that most of the start-ups are partially aware about business model design. Start-ups are yet to focus on all the 9 elements of the business model. The finding further supports that business model of start-ups have evolved in a way like trial and error, structured effort using renowned methods and copying of other’s business model. All the four start-ups taken in this study have mainly focused on value proposition and given it the highest priority; also, 3 out of 4 start-ups have given second priority to customer segment of business model canvas. While financial aspects are regarded as the least important aspects of business model. The study revealed that the changes occur 3-4 times within the first year of business model innovation process with iterative process is characterized by a stronger changes in the beginning, including 20 building blocks per change and a slight declination in the following changes. During the first year of business model innovation process customer feedback plays a vital role to change the customer segments. Similarities between the start-ups, the frequency of business model changed and finally antecedents that cause the change in business model were observed during the first year of business model design and innovation process. This study advances the research of business model design for start-ups by adding new findings to existing literature. Moreover it creates framework for further studying and made recommendation on how the process can be improved by pointing out important task in the process of business model design and its innovation.