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Introduction

Background of the research

Business theoretical account choice is one of the most ambitious undertakings for any company. The endeavor ‘ hereafter is purely dependent on that pick and a incorrect determination might do smaller net incomes or even entire failure for the concern.

This research stresses attending on the concern theoretical account choice for an advanced company. Bringing an innovation, a new merchandise or service is ever non so easy to take a proper theoretical account of operating. The clearest and the easiest determination might be incorrect and would n’t suit the start-up best. Invention is ever something new, from merchandises to procedures and here, the determination to copy the bing concern theoretical account is non a 100 % success. The difference and the involvement in this state of affairs here is that cipher have done that before. The paper describes possible determinations of concern theoretical account choice on the seed phase and besides provides a theoretical model for that. The seed phase is a really early phase of the advanced company, which is besides pre-launch and even pre-prototype phase. There phase has a maximal uncertainness index during the whole undertaking ‘s life-cycle. From one side – it gives a model for work, creative activity but from the other – it may set an discoverer into a incorrect, long, and a difficult procedure.

The maestro thesis is created in order to systematise the cognition of how to take the best theoretical account for reassigning the invention or “ know-how ” engineering to the successful concern and how to make it “ every bit shortly as possible ” , on the seed phase. In add-on to that the paper takes into consideration the real-life instance of “ InTech ” company. This is a little IT company, based in St. Petersburg, Russia, which has developed an advanced engineering of in-door pilotage for nomadic devices ‘ users. The instance of “ InTech ” would be an illustration to show the practical facet of the chosen subject and will exemplify how the theoretical results fit the real-world state of affairs.

Research scene: research inquiries and sub inquiries

As we might see the concluding subject states “ Business theoretical account choice for advanced company on the seed phase ” I assume the chief research inquiries are:

Question 1: What is the “ user-guide ” for a start-up to choose a best-fit concern theoretical account to run during the seed phase of the ongoing undertaking?

The related sub-question, which have to be taken into history while treating the research are:

Sub-question 1.1: What ‘s the difference of taking a concern theoretical account on the seed phase in comparing to that procedure on the other phases of start-up development?

Sub-question 1.2: What are the hazards of failure during that procedure?

Sub-question 1.3: What are the prosodies to measure the determination?

Sub-question 1.4: The difference in concern theoretical account choice when utilizing venture capital or the investor ‘s money?

Sub-question 1.5: What ‘s the function of “ invention ” in that procedure?

Sub-question 1.6: Are at that place any “ points of no return ” during the concern theoretical account choice procedure for an advanced company on the seed phase?

In add-on to that the concluding subject has “ InTech ” Co. Ltd. instance. That portion would add some practical issues for the research in order to give an illustration of execution for the developed theoretical “ user-guide ” .

Question 2: What is the best concern theoretical account would suit the “ InTech Co. Ltd. ” in-door pilotage undertaking?

And the related sub-questions to this chief one would be the followers:

Sub-question 2.1: How does the “ InTech ” advanced engineering affect the procedure of concern theoretical account choice?

Sub-question 2.2: What are the possibilities for the investing?

Sub-question 2.3: What are the best theoretical accounts, harmonizing to the “ user-guide ” developed in the theoretical portion?

Sub-question 2.4: What are the hazards for the company?

Sub-question 2.5: What is the consequence of company ‘s direction reappraisal of the developed solution?

LITERATURE REVIEW

This subdivision provides the bill of exchange of maestro thesis literature reappraisal. It will be edited several times. Besides some information would be added here, for certain. The first portion would give the cardinal constructs definition harmonizing to the well-known academic literature. The 2nd portion would be more stressed on the exact thesis subject and would give relevant information of the constructs to be used and what is already done harmonizing to the connected subjects.

2.1 Key constructs definition

2.1.1 Business theoretical account

2.1.1.1 Business theoretical account definition

During the last decennary, the growing of the publications harmonizing to the concern theoretical accounts subject was exponential ( A. Osterwalder, 2005 ) . That could be described as an increasing involvement in direction, economic sciences and concern planning.

When treating one of the relevant studies, 62 respondents gave 54 different definitions of what is “ concern theoretical account ” ( A. J. Sooljattje, 2009, finexpert.ru ) . Mr. Sooljattje divides all the given replies into two chief classs:

Value / Client oriented ( external type )

Procedures / Roles oriented ( internal type )

There are two illustrations provided by Sooljattje:

E.g. 1: Harmonizing to A. Slywotzky ( 2006 ) The theoretical account of concern is the manner the company is taking the client, formulates and diferentiates its supply, operates it ‘s resources, defines which tasks it can continue itself and which undertakings need specializers to be hired, goes to the market, creates the value for the client and gets net income from that. Companies might bring forth merchandises, services or engineerings, but the supply is based on a complex system of actions and relationships, which is fundamentally represented by a concern theoretical account of a company.

E.g. 2: Business theoretical account of a company is the manner the company utilizes in order to make value and generate net income. ( H. Chesbrough, 2006 ) .

In add-on to given illustrations, it would be relevant to advert concern theoretical account is non a scheme. Sometimes scheme is assumed as a portion of concern theoretical account, but the ground of that sort of errors is that the concern theoretical account and scheme are really closely related. M. Levy presented an “ equation of value ” , which states V=MS. Here V means value, M – theoretical account and S – scheme. The result is that the company has to presume the best concern theoretical accounts for realisation its scheme and based on those theoretical accounts, the company has to deploy and implement its scheme for making value to clients and other stakeholders.

2.1.1.2 Business theoretical account categorization

Harmonizing to the reviewed literature, I will supply a reappraisal of concern theoretical account categorization made in MIT Sloan School of Management – a alleged Business Model Archetypes.

Figure 1. The four Basic Business Model Archetypes

( c. hypertext transfer protocol: //ccs.mit.edu/papers/pdf/wp226.pdf )

Figure 2. The 16 elaborate Business Model Archetypes.

( c. hypertext transfer protocol: //ccs.mit.edu/papers/pdf/wp226.pdf )

The BMA is based on the two cardinal prosodies of the concern. The first 1 is – types of licences for assets, which are sold by the company. These dimensions give us four basic concern theoretical accounts: Creator, Distributor, Landlord and Broker. The 2nd dimension – which assets are integrated into concern. This dimension gives four chief types of assets: Financial, Physical, Intangible and Human. As we might see on the Figure 2, we get 16 concern types of concern theoretical accounts. The MIT research by P. Weill, T. Malone, etc. provinces there are merely seven of presented concern theoretical accounts are spread within big companies in the US. ( Figure 3. )

Figure 3. ( c. hypertext transfer protocol: //ccs.mit.edu/papers/pdf/wp226.pdf )

The 2nd categorization I would wish to advert here was presented by H. Chesborough ( 2009 ) .

Figure 4. Business Model Framework by H. Chesborough ( 2006 )

( c. hypertext transfer protocol: //alexandria.tue.nl/extra1/afstversl/tm/leung2007.pdf )

H. Chesborough, while making concern theoretical account categorization ( Business Model Framework BMF ) used two parametric quantities, on which the difference of theoretical accounts is based. They are: the volume of investing produced to back up the concern theoretical account and the degree of “ openness ” of concern theoretical account.

The analysis of development and deployment of concern theoretical accounts patterns show, that concern theoretical accounts may be created for:

A merchandise or service ( a group of merchandises and services )

The company in general

The group of companies or keeping

Besides we might province concern theoretical accounts are utilized on pattern for:

to measure and analyse the efficiency of concern in comparing to other similar companies

to asses the potency of investing attraction of company ‘s concern in future

to optimise the concern of the company, from the point of scheme and the point of maximization and arrested development of value, which is created by company for clients and other stakeholders.

2.1.2 Invention

2.1.2.1 Innovation definition

There are several definitions of invention, which could be found in literature and on-line beginnings. I would advert a figure of them here in order to exemplify the chief points of “ innovativeness ” .

Harmonizing to P. Drucker, Innovation is “ alteration that creates a new dimension of public presentation ” . Besides we assume “ invention is a new component introduced in the web which alterations, even if momently, the costs of minutess between at least two histrions, elements or nodes, in the web ” ( R. Cabral ) . J. Shcumpeter views the invention as an debut of new methods, goods and “ conquest of new beginnings of supply ” . In add-on to that, the writer references that invention carries the new organisation of any industry.

Here are some extra definitions, which could be found from different beginnings:

“ The act of presenting something new ” ( the American heritage lexicon )

“ A new thought, method or device ” ( Webster online )

“ The ability to present new value to a client ” ( Jose Campos )

“ Invention does non associate merely to a new merchandise that would come into the market place. Invention can happen in procedures and attacks to the market place ” ( David Schmittlen )

“ The three phases in the procedure of invention: innovation, interlingual rendition and commercialisation ” ( Bruce D. Merrifield )

“ Invention is the manner of transforming the resources of an endeavor through the creativeness of people into new resources and wealth ” ( Paul Schumann )

2.1.2.2 Types of invention

( A wide Universe of Innovations type, Covering with Darwin Stanford PDF cource ) ( hypertext transfer protocol: //scpd.stanford.edu/dtu/pdf_courses/Dealing % 20With % 20Darwin/CHAPTER4.pdf )

The image is put here to demo the assortment and the range of different invention types. As we might see the all those types are connected, but might hold different nature.

( likely to be deleted in the concluding version )

In add-on to that I would wish to add the categorization of those envisioned types:

( hypertext transfer protocol: //scpd.stanford.edu/dtu/pdf_courses/Dealing % 20With % 20Darwin/CHAPTER4.pdf )

One of the widely-spread invention categorizations was made by Marquis ( 1969 ) and nowadayss three following types: practical ( systems ) , extremist and incremental. Further research by Gaynor ( 1996 ) proposed four types:

Extremist constituent inventions

Incremental inventions to bing engineerings

Extremist system inventions

Next-generation engineering inventions

2.1.2.3 Technological invention

From the point of position of engineering – invention is new and original, non holding linear merchandise ( engineering ) on the market. This merchandise suppose to hold an improved quality in comparing to old merchandise ( paradigm ) and / or say to hold a higher technological degree, new consumer merchandise quality harmonizing to old parallels.

Here, invention within the endeavor is a procedure of making something technologically new, which leads to commercial success on the market. At least that ‘s the ground for establishing the “ advanced ” merchandise or service on the market. For certain there is a chance of failure.

In the detecting context the technological invention is related to innovation and rationalisation. Here the work on inventions is frequently connected to rational belongings, patents.

Besides the technological invention is classified on commercialization-able and non-commercialization-able. One of the ends of this paper is to bring forth a “ user-guide ” in order to minimise hazards while taking a concern theoretical account for an endeavor, bring forthing a technological innovation. In other words it is created to be the usher to better commercialization-ability.

— — — — — — — — — — — –

( Further literature reappraisal harmonizing to invention has to be done )

— — — — — — — — — — —

2.1.3 The start-up seed phase

2.1.3.1 The start-up phases review

The most frequently categorization of start-up phases, which can be found in literature, has five degrees harmonizing to the undertaking life-cycle: the seed phase, the startup phase, the growing phase, the enlargement phase and the issue phase.

The more elaborate categorization of start-up development phases:

Pre-startup phase

Pre-seed phase

Seed phase

Prototype

Working paradigm

Alpha-version of the undertaking and merchandise

Private beta ( closed beta-version )

Public beta ( unfastened beta-version )

The launch of the undertaking

Launch or early-startup phase

Startup phase

First clients or late startup phase

Post startup phase

Growth phase

Expansion phase

Exit phase

Pre-IPO ( Initial Public Offering )

Initial public offering

— — — — — —

The beginning = Russian Wikipedia. The beginning has to be changed in farther versions.

— — — — — —

2.1.3.1 The seed phase

Basically, there is no definition for the “ seed-stage ” but normally, when spoken or mentioned it is agreed that:

“ 1. It is entrepreneurial, as opposed to being a division of a larger company.

2. It has the theoretical potency for significant growing. In many instances this means the concern is focused on the development or application of cutting-edge engineerings ( the authoritative “ tech ” startup ) , but engineering is n’t a demand. What this standard excludes, though, are concerns such as non-chain stores and lone trades, where the owner may gain a good life but is non taking to make the grade of value that would involvement investors and policy-makers.

3. It has non yet taken meaningful stairss toward turning its thought into a world. This may intend it ‘s nil more than a little squad that ‘s still hashing out the rudimentss over a pint, but it besides covers concerns that are get downing to do advancement on a prototype/minimum feasible merchandise and hold even taken a small spot of initial support. A Once the concern is in a place to bring forth grosss or seek important investing from the VC universe, it is no longer at seed-stage and becomes alternatively a “ later-stage startup. ” “ ( The seed of idea web log – hypertext transfer protocol: //seedsofthought.net/ )

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