Development of Business Model Using Lean Startup Methodology

Abstract

This paper reports the study and application of the lean startup methodology, which is used by the startups in the IT industry for launching their new products into the market, to develop a new business model for commercializing an innovation to the public through a case study of the innovative leg prostheses. This new business model development is based on the value proposition and capture approach that is difficult to imitate. It starts with the processes of searching for the problems and the real value through the principal activity of the iterative build-measure-learn cycle with the principal participation of the customers to the creation and validation of the prototype and its value as required by the customers to obtain the minimum viable product (MVP). In this study, the model is simply and systematically described by nine indicating elements and their integration, the so-called business model canvas. For the case study, a business model was developed and was validated by innovative leg prostheses developers and business entrepreneurs; the results showed that results obtained by the proposed model and those by the experts agreed. Thus, the
proposed methodology can be applied to develop a new business model for any other innovative tangible products as well.