Page - 68 - in Digital Entrepreneurship - Impact on Business and Society

BusinessModel Development andValidation inDigital Entrepreneurship Lutz Göcke and RobinWeninger Abstract Everyventure isdevelopedunderhighuncertaintyandcausal ambiguity.Alarge majority of digital startups leverage the lean startup approach to validate the attractiveness of their venture, to reduce avoidable investments of scarce resources, and to structure theventuringprocess.Digital entrepreneurs highlight that prioritization and the definition of MVPs are two challenges that entrepreneurs face when applying the lean startup approach. We provide support on these particular challenges through a structured approach—the venture pyramid—to (in)validate digital business models in the face of high uncertainty.Furthermore,wemapdifferent typesofdigital businessmodelswith patterns of minimum viable products to inspire digital entrepreneurs and scientists alike.To illustrateour thoughts,wehavedeveloped twocasestudiesof German startups that applied aprocess of rigorous iteration and learning to their venturing processes. 1 Introduction A recent study shows that 93%of digital startups use the lean startup approach to find product-market fit fast, to avoid unnecessary resource investment, or to structure the development process of the venture (Ghezzi 2019). The same study L.Göcke (&) Chair ofDigitalManagement,NordhausenUniversityofAppliedSciences,Nordhausen,Germany e-mail: lutz.goecke@hs-nordhausen.de R.Weninger Global Institute of Leadership and Technology (GILT), Eschborn, Germany ©TheAuthor(s) 2021 M.Soltanifar et al. (eds.),DigitalEntrepreneurship, FutureofBusiness andFinance, https://doi.org/10.1007/978-3-030-53914-6_4 71