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Rode Apps is a Romanian software development company that was established in 2011 and is in many respects a typical startup; many employees are recent software engineering graduates from the local university. At present, it mainly completes contract-based projects for clients in western Europe. The projects revenues take account of labour costs and overheads.


Rode Apps now has considerable experience in developing apps for third parties and wishes to exploit this and offer app development services via a proprietary platform. It embarked on business model innovation process to develop in-house proprietary software for developing mobile apps and charging customers for use of the platform’s services. This was also an important driver to change from a project-based to a subscription-based revenue model for a basic SDK (service development kit) and a premium fee for customised service features. The company used the STOF tool to develop and analyse a new business model. The new platform service is more scalable than the project-based approach since revenues are based on application usage. However, developing the platform and basic application will require significant upfront investment in addition to long-term investment in maintenance and customisation. Using the Business Model Stress Test tool, Rode Apps assessed the robustness of its business model based on the new service and revenue model and then developed a business plan to implement it.