An empirical evaluation of business model canvas in software startups : a team perspective

Abstract

Business model canvas is a commonly used tool among software startups. The tool aims to help companies develop business models and new strategies. Even though the model has been widely adapted among software startups a lack of scientific research regarding the topic can be found. This thesis evaluates how the business model canvas should be further devel- oped when it comes to early stage software startups. This is done with a team perspective. First, an understanding of software startups is created. Secondly, based on the literature the Team Component is presented including the con- structs of resources, networks, self-organization and way of working. After this, the scope is widened to business model canvas, and the lack of a team construct in it. The theoretical Team Component is compared to the empirical data. The prima- ry data consists of interviews conducted to startup teams and secondary data is based on external student observations. The data was collected in qualitative means and analyzed with a thematic analysis. The empirical data validates two of the constructs included in the Team Component, resources and networks. The two other constructs are not seen important in the context of early stage software startups. Based on the empirical results a further developed version of business model canvas is presented, with the team playing as a core construct. The study claims, that early stage software startups should see the team as a front thought and concentrate on acquiring as versatile resources and wide networks for their team in comparison to strategic planning at early stages. The study confirms, that resources and networks are the most determinate factors to affect an early stage startups success or failure.