Novice innovators and entrepreneurs face the risk of designing naive business models. In fact, lack of realism and failing to envision contextual constraints is one of the main threats to start-up success. Both the literature and the responses we gathered from experts in incubation confirm this problem. Capability Driven Development (CDD) is an integrated approach consisting of a method, tools, and best practices. It has proved to be successful when applied to mature enterprises that intend to become context-aware and adaptive. In this paper we report on the application of CDD to two start-up projects and how, despite being useful in making the entrepreneurs aware of dynamic business environments and constraints, a trade-off analysis showed that a simpler version of the method was necessary. Therefore, we present LightCDD, a context-aware enterprise modelling method that is tailored for business model generation. It reduces the set of modelling constructs and guidelines to facilitate its adoption by entrepreneurs, yet keeping it expressive enough for their purposes and, at the same time, compatible with CDD methodology. We also discuss what implications this simplification has with regard to the CDD tool environment

1. Hasan Koç1, Marcela Ruiz2, Sergio España3
1University of Rostock, Germany
2 PROS Research Centre, Universitat Politècnica de València, Spain
3 Utrecht University, The Netherlands

2. Motivation
Problem Investigation
Applying Capability-driven Development in Startups
Use Cases
Lessons Learnt
Designing LightCDD
Conclusion
2

3. 3

4. Lack of
realism
Neglecting
user needs
Missing
real world
context
4

5. 5
How methods and techniques for
enterprise modelling can help on the
development process of new ventures?

6. A business model describes the rationale of how an organization creates, delivers
and captures value (Osterwalder & Pigneur 2010)
6

7. A business model describes the rationale of how an organization creates, delivers
and captures value (Osterwalder & Pigneur 2010)
We explore the Capability-driven development
(CDD)
We use the CDD as the rationale to help start-ups to perform:
Context modelling
Goal modelling
Business process modelling
Integrity of modelling methods
7
Flexibility and
integrity of
modelling methods
Challange the
dynamicity of the
enterprises

8. T2. TREATMENT DESIGN (Section 3)
- Explore available solutions by reviewing the
SOTA
- Select modelling method to support business
modelling for start-ups (selection of CDD)
- Perform an analysis of CDD and select
adequate modelling methodologies for
business modelling of start-ups
T1. PROBLEM INVESTIGATION (Section 2)
- Investigate the lack of realism when modelling
start-ups as a fact of failure on the creation of new
ventures
- Investigate the need for integrated modelling
methods for entrepreneurship
- Explore the literature, establish research questions
and conduct interviews to gather knowledge on the
problem
- Define the criteria to judge solution success
T3. TREATMENT VALIDATION (Section 3 & 4)
- Validate the feasibility to apply CDD for
entrepreneurship
- Perform an exploratory application of CDD to
two case studies of start-ups: UpLite and Let’s
Get Better
- Anlyse the perceptions of the entrepreneurs on
the application of CDD
REPRISE OF TASK 2 (Section 5)
- Design LightCDD
DESIGN AN ENTERPRISE MODELLING METHOD FOR START-UPS
The high start-up birth rates go
hand in hand with a great risk of
failure
Nine out of 10 start-ups fail
Customers, business model,
product, financials and team are
dimensions to support
Team commitment, team expertise,
marketing, customer relationships,
core team expertise and
management, strategy, R&D and
idea have high effect factors on
start-ups success 8

9. T2. TREATMENT DESIGN (Section 3)
- Explore available solutions by reviewing the
SOTA
- Select modelling method to support business
modelling for start-ups (selection of CDD)
- Perform an analysis of CDD and select
adequate modelling methodologies for
business modelling of start-ups
T1. PROBLEM INVESTIGATION (Section 2)
- Investigate the lack of realism when modelling
start-ups as a fact of failure on the creation of new
ventures
- Investigate the need for integrated modelling
methods for entrepreneurship
- Explore the literature, establish research questions
and conduct interviews to gather knowledge on the
problem
- Define the criteria to judge solution success
T3. TREATMENT VALIDATION (Section 3 & 4)
- Validate the feasibility to apply CDD for
entrepreneurship
- Perform an exploratory application of CDD to
two case studies of start-ups: UpLite and Let’s
Get Better
- Anlyse the perceptions of the entrepreneurs on
the application of CDD
REPRISE OF TASK 2 (Section 5)
- Design LightCDD
DESIGN AN ENTERPRISE MODELLING METHOD FOR START-UPS
Why do start-ups fail?
Many start-ups focus too much on
product, and not enough on the end
user needs.
The entrepreneurs underestimate the
importance of planning, before
entering the market.
Different scenarios are neglected; the
activities are captured in a single high-
level process and the processes are not
specified.
Moreover, the objectives motivating
the ideas and wishes are not captured
9

10. T2. TREATMENT DESIGN (Section 3)
- Explore available solutions by reviewing the
SOTA
- Select modelling method to support business
modelling for start-ups (selection of CDD)
- Perform an analysis of CDD and select
adequate modelling methodologies for
business modelling of start-ups
T1. PROBLEM INVESTIGATION (Section 2)
- Investigate the lack of realism when modelling
start-ups as a fact of failure on the creation of new
ventures
- Investigate the need for integrated modelling
methods for entrepreneurship
- Explore the literature, establish research questions
and conduct interviews to gather knowledge on the
problem
- Define the criteria to judge solution success
T3. TREATMENT VALIDATION (Section 3 & 4)
- Validate the feasibility to apply CDD for
entrepreneurship
- Perform an exploratory application of CDD to
two case studies of start-ups: UpLite and Let’s
Get Better
- Anlyse the perceptions of the entrepreneurs on
the application of CDD
REPRISE OF TASK 2 (Section 5)
- Design LightCDD
DESIGN AN ENTERPRISE MODELLING METHOD FOR START-UPS
Structured interview
Current methods do not allow the
entrepreneurs have an integral view of
their goals, activities and contextual
constraints
Providing mechanisms to represent
contextual constraints and to reason
about goals and processes would help
entrepreneurs to anticipate and
mitigate risks.
Modelling methods for entrepreneurs
should be graphical, technical and
lightweight.
Different perspectives should be
supported
10

11. 11

12. 12

13. T2. TREATMENT DESIGN (Section 3)
- Explore available solutions by reviewing the
SOTA
- Select modelling method to support business
modelling for start-ups (selection of CDD)
- Perform an analysis of CDD and select
adequate modelling methodologies for
business modelling of start-ups
T1. PROBLEM INVESTIGATION (Section 2)
- Investigate the lack of realism when modelling
start-ups as a fact of failure on the creation of new
ventures
- Investigate the need for integrated modelling
methods for entrepreneurship
- Explore the literature, establish research questions
and conduct interviews to gather knowledge on the
problem
- Define the criteria to judge solution success
T3. TREATMENT VALIDATION (Section 3 & 4)
- Validate the feasibility to apply CDD for
entrepreneurship
- Perform an exploratory application of CDD to
two case studies of start-ups: UpLite and Let’s
Get Better
- Anlyse the perceptions of the entrepreneurs on
the application of CDD
REPRISE OF TASK 2 (Section 5)
- Design LightCDD
DESIGN AN ENTERPRISE MODELLING METHOD FOR START-UPS
ENTREPRENEURS
ENTREPRENEURS +
RESEARCHERS
RESEARCHERS
1.
KICK OFF
2. PREPARATION OF
PROJECTS
SPECIFICATION
INTRODUCTION
TO THE CDD
EXPERIENCE
3. ANALYSE
PROJECTS
GUIDELINES FOR
TEXTUAL PROJECTS’
SPECIFICATION
TEXTUAL
PROJECTS’
SPECIFICATION
5. DESIGN OF
BPM V1
BPM V1
REPORT ABOUT
ENTREPRENEURS’
PROJECTS
6. MEETING TO ANALYSE
BUSINESS PROCESS
MODELS V1
REPORT WITH IMPROVEMENTS
FOR BPM V1 AND INFORMATION
FOR THE DESIGN OF CDD MODELS
7. DESIGN OF CDD
MODELS
9. MEETING TO ANALYSE
CDD MODELS AND SPECIFY
A STABLE VERSION
CDD
MODELS
V1
CDD MODELS
STABLE
VERSION
LESSONS
LEARNT ON THE
USE OF CDD
LEGEND
ACTOR/S PROCEDURE INPUT/OUTPUT
INPUT/OUTPUT
RELATIONSHIP
PRECEDENCE
RELATIONSHIP
8. CREATE A
GLOSSARY OF TERMS
GLOSSARY OF
TERMS
4. SELECT
METHOD
COMPONENTS
13

14. ENTREPRENEURS
ENTREPRENEURS +
RESEARCHERS
RESEARCHERS
1.
KICK OFF
2. PREPARATION OF
PROJECTS
SPECIFICATION
INTRODUCTION
TO THE CDD
EXPERIENCE
3. ANALYSE
PROJECTS
GUIDELINES FOR
TEXTUAL PROJECTS’
SPECIFICATION
TEXTUAL
PROJECTS’
SPECIFICATION
5. DESIGN OF
BPM V1
BPM V1
REPORT ABOUT
ENTREPRENEURS’
PROJECTS
6. MEETING TO ANALYSE
BUSINESS PROCESS
MODELS V1
REPORT WITH IMPROVEMENTS
FOR BPM V1 AND INFORMATION
FOR THE DESIGN OF CDD MODELS
7. DESIGN OF CDD
MODELS
9. MEETING TO ANALYSE
CDD MODELS AND SPECIFY
A STABLE VERSION
CDD
MODELS
V1
CDD MODELS
STABLE
VERSION
LESSONS
LEARNT ON THE
USE OF CDD
LEGEND
ACTOR/S PROCEDURE INPUT/OUTPUT
INPUT/OUTPUT
RELATIONSHIP
PRECEDENCE
RELATIONSHIP
8. CREATE A
GLOSSARY OF TERMS
GLOSSARY OF
TERMS
4. SELECT
METHOD
COMPONENTS
14

15. 15

16. T2. TREATMENT DESIGN (Section 3)
- Explore available solutions by reviewing the
SOTA
- Select modelling method to support business
modelling for start-ups (selection of CDD)
- Perform an analysis of CDD and select
adequate modelling methodologies for
business modelling of start-ups
T1. PROBLEM INVESTIGATION (Section 2)
- Investigate the lack of realism when modelling
start-ups as a fact of failure on the creation of new
ventures
- Investigate the need for integrated modelling
methods for entrepreneurship
- Explore the literature, establish research questions
and conduct interviews to gather knowledge on the
problem
- Define the criteria to judge solution success
T3. TREATMENT VALIDATION (Section 3 & 4)
- Validate the feasibility to apply CDD for
entrepreneurship
- Perform an exploratory application of CDD to
two case studies of start-ups: UpLite and Let’s
Get Better
- Anlyse the perceptions of the entrepreneurs on
the application of CDD
REPRISE OF TASK 2 (Section 5)
- Design LightCDD
DESIGN AN ENTERPRISE MODELLING METHOD FOR START-UPS
16
Lack of proportion between analysis
and design is a cause of failure.
Analysis methods are needed!
Support graphical representation of
business ideas
Be lightweight
Be Simple
Provide mechanisms to represent
contextual constraints

17. LEGEND
PREPARATION
PHASE
ANALYSIS PHASE DESIGN PHASE
LightCDD
GUIDE
PHASE PROCEDURE INPUT/OUTPUT
INPUT/OUTPUT
RELATIONSHIP
PRECEDENCE
RELATIONSHIP
ANALYSIS OF
APPLICABILITY
OF LightCDD
SPECIFY THE
CORE
CAPABILITIES
REPORT ON THE
ACTIVITIES, GOALS,
AND CONTEXTUAL
FACTORS
CAPABILITY
MODEL
REPORT WITH
ACTIVITIES, GOALS,
AND CONTEXTUAL
FACTORS
BPM
GOAL
MODEL
CONTEXT
MODEL
REPORT WITH
DECISIONS TO
APPLY
LightCDD
PROJECT
DESCRIPTION
SPECIFY BPM,
GOALS, KPIs, AND
CONTEXT MODELS
17

18. The high start-up birth rates go hand in hand with a great risk of failure
How can methods and techniques for enterprise modelling can help on
the development process of new ventures?
Exploratory application of CDD in two start-ups project + structured
interview
CDD is a feasible method for start-ups support with some drawbacks
We propose a Lightweight method (Light CDD) 18

19. Principles of Light CDD
The users of LightCDD should be supplied with the information of what
enterprise modelling in general is and how this could help to improve their
case.
The LightCDD should focus on the goals, context and processes. The pattern
modelling and adjustment modeling method components are excluded.
From the CDD tool suite, CDT seems to be the only one that the entrepreneurs
can use.
The prerequisites for the method application are not taken into consideration
Stakeholder types that participate to the different phases of the CDD were
excluded (start-up teams include smaller number of individuals) 19

20. 20
Further Work
Guidelines and best practices for BPM are going to be improved and
incorporated
CDD concepts are going to be refined and simplified
Important aspects such as the revenue models, channels, key
resources, and team expertise is going to be addressed

21.
lruiz@pros.upv.es
21