Software Innovation and Business Modeling

Currently I am writing my master thesis as a Software engineer. The subject I am working on is Software Innovation and Business Modeling.
We choose to call the project Software as a Business.
In this thesis Essence, by Ivan Aaen, a software innovation methodology is used as well as Business Model Generation coined by Alexander Ostewalder & Yves Pigneur.
The project looks into the intertwinements of these two methodologies and also with the look at works from Saras Sarasvathy in form of her work in Effectuaion and Causation, and the Blue Ocean Strategy.

The usage of the Business Model Canvas combination with Essence is really inspiring and makes it more clear what innovation is and is all about – creating new products which can produce revenues.
I think that the last is often forgot by innovative developers.
Mostly articals talks about inventions but there are more things to innovation that just an invention; it also needs exploitation and diffusion.
This definition is subject to discussion and I recon that it will soon see a change, my guess is that an innovation can be said to be; invention and diffusion.

Nevertheless diffusion is an important part and can, from my perspective, be helped by using the Business Model Canvas.
Software as a Business tries looking at the diffusion part from an entrepreneur perspective, in our case with software educations, by doing a case study in a new started business in need of an innovative electronic payment solution.

This case study have showed me and my partner that innovative software is no trip to candyland and is a lot of hard work. Within the iterations for finding a design for the technical solution the business model also needs to be assessed to secure that a profitable business can be created from the technical solution.
I think that this approach is valuable for other developers making innovative software which needs to generate funds but also for software entrepenuers wanting their solution see the sunlight.
Also for developers to have some knowledge about business models will help the communication with “business people” as they often are called in developer terms.

This project is still ongoing and as of now the team are working on implementing the business and technical design which was the fruit from the first half of the thesis.