THE BUSINESS MODEL INNOVATION OF AGTECH STARTUPS

• Main Author: Talitha, Jinan
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/48994
• Institution: Institut Teknologi Bandung

Indonesian startup founders show increasing enthusiasm for agriculture and fisheries. Even though more startup founders show interest in the agriculture industry, "globally startup success rate is only 5%". To avoid such failure, It is believed that all of the successful company operates by having a useful business model as their guideline. It is noted that the innovation of business model also plays a vital role in leading higher profitability, which is one of the success parameters of Agtech startup. Despite the importance of business model, a study asserts that many Agtech startups fail to create a sustainable business model, and many of them face business model challenges. The fact that the Agtech industry is new isn't helping as well because there aren't many empirical studies about Agtech's startup to help explain the sector's underlying issues and challenges. Thus, this research study the business model innovation adopted by Agtech startups. This study is conducted in qualitative research by a semi-structured interview method because the study aims to get in-depth information. The research is conducted to six Agtech startups, which represent six categories of Agtech startups. The founded data is analyzed with thematic analysis method, word frequency analysis, and combined with a review of recent literature to give a deep insight. Addressing this problem has a practical benefit for Agtech startup in Indonesia to conduct a business model innovation and help to develop a better understanding of business model innovation in Agtech startup. The research shows that value creation aspect, which is people, asset, and partner, focus on operation and marketing area. Agtech startup also put their focus on their product, people, asset, partner, and their way of getting customers. Thus, they mostly innovate those areas. The innovation process heavily relies on people in their organization, partner, and customer. Therefore, the capabilities needed for innovating is sensing opportunity from people, partner, and customer, seizing their stakeholder, and improve continuously. Future study is recommended to explore deeply about the effect of each business model innovation on the startup's success with a quantitative study.