Technology-based business model: A startup perspective

Abstract

This paper examines how a startup can develop its business model for using virtual reality in the healthcare education sector. Due to the detail of the study, which is required to show the mechanisms of business model modification, a single case study was conducted for a startup located in the Czech Republic. The studied company develops virtual reality technology and solutions in industries such as healthcare, education, social services, engineering, and government sector. The study provides empirical evidence on the main mechanisms shaping the elements of a business model and shows the expansion of virtual reality implementation. The study shows also how the digital capabilities and the information technologies can impact the external and internal business processes that respond to the three approaches of BM development: service-oriented approach, network-oriented approach, and user-driven approach. Business model development is required in today’s market, typically due to the fourth industrial revolution, which leads to automation and digitization of business processes.