Entrepreneurship, Innovation and Start-ups: Omega Tech Business Report

This report presents a business plan for Omega Tech, an IT startup designed to assist businesses in improving their IT infrastructure. The report begins with an executive summary and an introduction that highlights the importance of technology in business operations and identifies a gap in the market for IT consultancy services, particularly for small businesses. It then details the need for the venture, outlining how Omega Tech aims to address the underutilization of technological advancements. The proposed business model is described using the Business Model Canvas, including key partners, activities, value propositions, customer relationships, customer segments, key resources, distribution channels, cost structure, and revenue streams. The report further aligns the business plan components with the overall objectives of Omega Tech, including the application of the business plan structure and components, a project plan for the launch of the new venture, and associated critical risks, problems, and mitigation strategies. The report concludes with a summary of the key findings and provides references to support the analysis.

Running Head: ENTREPRENEURSHIP, INNOVATION AND START-UPS 1
Entrepreneurship, innovation and start-ups

ENTREPRENEURSHIP, INNOVATION AND START-UPS 2
Table of Contents
Introduction......................................................................................................................................3
Need for the new venture.................................................................................................................3
Proposed business model.................................................................................................................4
Alignment with business plan components.....................................................................................7
Application of business plan structure and components..................................................................9
Project Plan for launch of new venture............................................................................................9
Associated critical risks, problems and mitigation........................................................................10
Conclusion.....................................................................................................................................13
Appendix........................................................................................................................................14
References......................................................................................................................................16

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Executive Summary
The generation of business ideas is undertaken with the help of opportunities of business
which are provided by the external business environment. The rapid technological growth and
the need to employ the right technology at the right time helps in mitigating the risks involved
with the IT infrastructure of any company. The ability to gain control and continuous
improvement in IT processes depicts the IT maturity of a company. Although a company is
aware of the importance of technological advancements in their operations, lack of skills and
insufficient IT knowledge leads to their downfall. Companies failing to adopt technological
changes are unable to bring operational efficiency and remain competitive in the market.

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Introduction
As suggested by Read, Sarasvathy, Dew and Wiltbank (2016), starting a new business
venture is a big step for entrepreneurs as it requires them to leave the comfort and security of
their regular jobs to deal with an uncertain future. The concept of entrepreneurship aims in
developing the economies of a country by creating various job opportunities and bringing
financial stability (Parker, 2018). But, a small business idea requires first identifying the problem
and then finding a relevant solution to it. A failure to identify the problem becomes the main
reason for the downfall of many start-ups. One of the most important factors for the success of
any company in the current business environment is the effect of technology on business
operations. Regardless of the size of the business, technology has both intangible and tangible
benefits that help the business to generate revenues and produce the desired results. Information
Technology drives innovation leading to business success. The purpose of the report identify the
issues faced by companies due to underutilization of technological advancements in their
business operations.
Need for the new venture
Omega Tech is a new tech start-up which aims at providing IT infrastructure planning to
business firms having loopholes in their IT operations by acting as their consultants. As opined
by Orna (2017), the integration of information technology is highly recommended into any
business to sustain the competition since it provides with business tools to solve complex
problems, a better decision making power, customer support and improved resource
management. However, a majority of businesses fail to utilize IT services in a number of
contexts which is where the role of Omega Tech comes into place. Omega Tech will help in

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defining the goals and aligning the IT initiatives with the strategic business plans of any
company. The rapid technological growth and the need to employ the right technology at the
right time helps in mitigating the risks involved with the IT infrastructure of any company. The
ability to gain control and continuous improvement in IT processes depicts the IT maturity of a
company. Although a company is aware of the importance of technological advancements in
their operations, lack of skills and insufficient IT knowledge leads to their downfall (Nguyen,
Newby & Macaulay, 2015). Therefore, it can be said that companies failing to adopt
technological changes are unable to bring operational efficiency and remain competitive in the
market. This underlying problem has paved a way for Omega Tech to build weak IT
infrastructure companies to stand a chance in the competition. This will be a greater opportunity
for Omega Tech to enter into the IT consultancy industry by targeting right clients and providing
best and optimum IT infrastructure solutions to them.
Proposed business model
Key partners According to Joyce and Paquin (2016), key partners
are those, on which an organisation will rely upon for
running a business. The companies, whose IT
infrastructure is not so good and updated, Omega Tech
aims to provide them the utmost IT infrastructure
planning, so that the firms will be able to able to
improve their performance as well as the organisations
will be capable to survive in the competitive market
place. More specifically, the small sized firms, whose
IT infrastructure is very low, are identified as the key
partners of Omega Tech.
Key activities The prime activity of Omega Tech is to provide the
best and optimum services in the informational
technology background to its clients.
Value proposition It is noted that value proposition is referred as the

ENTREPRENEURSHIP, INNOVATION AND START-UPS 6
collection of products and services, which are offered
by the organisation for meeting the needs of the
clients. In order to meet the needs of the customers,
Omega Tech will rely upon a deep business
understanding of the client firms.
Customer relationship Customer relationship shows the interaction procedure
of the organisation with its customers (Osterwalder,
Pigneur, Oliveira & Ferreira, 2011). The organisation
will offer the small sized firms to interact directly with
it. As a result, the small sized client firms will be able
to make the organisation understand about their needs.
Customer segment Customer segment is the source of increasing revenues
of the business (Trimi & Berbegal-Mirabent, 2012).
Omega Tech will follow the niche market strategy.
Key resource In order to improve the IT infrastructural
development, Omega Tech will mainly focus on the IT
staffing solution technique apart from improving the
accounting staffing and the creative marketing
process.
Distribution channel Omega Tech will take the help of multiple channels in
order to communicate with the customers.
Cost structure In order to attract the small sized firms for taking the
services as well as for improving the IT infrastructure
of the company, Omega Tech will mainly rely upon
the mobile advertisement strategy.
Revenue stream It is the prime stream of generating cash for the
business. It will be generated for selling of the services
of the company to the clients.
Interdependencies of business canvas model
Key partners: In order to deliver the value proposition, Omega Tech aims to interact with its
customers. In this context, it can be stated that for providing the greater IT infrastructure to the
client firms, Omega Tech would also rely upon the raw material suppliers and try to maintain a
strong relationship with them, so that the IT firm would be able to satisfy its customers by
delivering the utmost services.

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Key activities: Omega Tech helps the small sized firms in improving the activities like IT
planning process, IT designing segmentation. Apart from this, the organization also aims at
enhancing the computer aided software engineering processes, so that the operational efficiency
of these firms would be improved.
Value proposition: In order to maintain the quality in the works and to achieve the needs of the
customers, Omega Tech will mainly focus on the IP protection as well as on the data security
process, which will in turn improve the IT infrastructural development process.
Customer relationship: In order to satisfy the client firms, Omega Tech will offer them the
automated customise service through the procedure of automated workflow. As a result, the
client firms will be able to build their own profiles and will communicate with themanagement
of company through it directly (Barquet, de Oliveira, Amigo, Cunha &Rozenfeld, 2013).
Distribution channel: Omega Tech will communicate with different channels such as mobile
advertisement, social networking site, and official email as well as also through the client profile
in the organisational website.
Customer segmentation: In the opinion of Osterwalder and Pigneur (2010), niche market
strategy is dependent upon the specialized demand and characteristics of the customers. For
instance, Omega Tech will help its clients only in their IT infrastructure development process.
Key resources: In order to improve the organizational planning and staffing process of the client
firms, Omega Tech will mainly rely upon the physical resources apart from the financial
resources.
Cost structure: In order to afford the cost structure of the mobile advertisement strategy, Omega
Tech will try to increase the contribution of the investors. Apart from the advertising strategy,
investment will be beneficial for purchasing of raw materials.
Revenue stream: The satisfied consumers will like to purchase the services of Omega Tech
more in the future and it will increase the sales. Consequently, the organization will generate
more revenue.

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Alignment with business plan components
Carayannis, Sindakis and Walter (2015) have suggested that the success of a new venture
is dependent on a well-structured business plan by dedicating time to create them and then
successfully implementing them. Business plans provides a framework for any company and sets
a benchmark to achieve the desired results. Considering all the variables and testing the
assumptions is important task for any entrepreneur and their new business ventures. The scope of
a business plan depends on its specific goals and how they should be accomplished. A business
plan outlines the description of the company, the services it provides to the target audience, a
market analysis, a competitor analysis, a description of its organizational structure, a marketing
plan, sales strategy, funding and its financial projections. Therefore, it is important for a business
to align these plans with its preset objectives.
Omega Tech is a new IT venture which aims at providing utmost IT infrastructural
planning for companies unable to apply technological changes in their operations. More
specifically, companies operating in a smaller scale are in need of technology to grow in their
sectors and gain a competitive edge in the market. The key partners identified for this new
venture are the suppliers and clients who would directly operate with the Omega Tech. Omega
Tech will constantly focus on improving its services by customizing their solutions according to
the requirements of its clients. The objective of providing an enhanced customer service will be
achieved by improving the key activities such as IT planning process and relevant software to
improve the operations of the client company. The objective of maintaining a quality service,
Omega Tech will focus more on security of the systems of the client companies. This will result
in an improved solution based recommendations that would suffice the needs of IT infrastructure
of the client companies. In order to facilitate the needs of the customers and communicate with

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them, the use of right medium will be identified. The effective utilization of social media, and
mobile advertisement will be an added advantage for Omega Tech for creating a wider customer
base. The appropriate customer segmentation will be help in focusing on specific services
initially rather than providing every possible service. As the company would grow in terms of its
size and operational activities, it can seek to provide a more varied range of services to its
clients. This would enable Omega Tech to achieve its short term goals as well plan as for its long
term goals such as expanding the business or diversifying its operations. The availability of right
resources is important for the successful running of any business. Omega Tech will rely upon its
human resources for communicating with clients and discussing on their specific requirements.
The financial resources will be managed by keeping a track of the funding, budget allocated,
expenses and outstanding expenses. The efficient use of marketing and promotional strategies
will help in improving the brand name of Omega Tech and create awareness among the people.
The ultimate motive of any organization is to generate revenues and Omega Tech will aim at
improving its services in order to build its brand name and increase its sales. Consequently, the
above mentioned activities and strategies would help Omega Tech to achieve its objectives in the
predetermined timeframe.
Application of business plan structure and components
Tech startup ventures are becoming more and more diverse every day. Diverse sectors are
spanned by them with the products and services which are IT oriented. These products and
services are related to trade, commerce and industry, teaching or administrative, research areas,
service sectors, etc. The business plan includes introducing the product or service idea which is
important for technological solutions. The marketing plans and client description would describe
the users of the product, service and development and the marketing strategy as well (Burns,

ENTREPRENEURSHIP, INNOVATION AND START-UPS 10
2016). The competition description would include details of the market positioning, market
penetration and pricing of the products and services of the product. The present production and
purchasing plan includes methods of acquisition and purchase, clarification of the production
methods and the current cost. Finally, the business plan would include location and legal
information and financial planning of the venture.
Project Plan for launch of new venture
For launching the tech startup, a significant project plan is required which would detail
the key activities and resources that are required. The success of every startup business is
dependent upon its marketing approach. However, majority of the startup owners and
entrepreneurs have seldom experience in managing marketing of a business. The important
activities in the project plan of the venture include three phases. The first phase includes strategic
positioning, development of the brand and web presence (Smith, Smith, Smith & Bliss, 2011).
The second phase blogging strategy, public relations partnering, guerilla marketing and video
advertising, search engine optimization and link building. The third phase consists of online
advertisement, strategic public relations, crowd sourcing, briefing and speaking, and finally
launching the innovation. The first step is positioning the product properly in the market. The
category of the products or services should be defined and then the same should be mapped to its
value proposition, competitor benchmarking and product benefits (Trimi & Berbegal-Mirabent,
2012). Next, necessary actions should be taken towards building the brand, name, logo, etc.
Before the launch of the product, getting web presence is very important. In the age of digital
marketing and social media, web presence is important as well as complicated. A sophisticated
website which performs various roles is required rather than a functional one. The next step is
phase two, here blogging, public relations, video marketing and search engine optimization

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would be undertaken. A successful blog helps in enhancing the strategic positioning of a new
tech venture, promoting the category of its services, defining its benefits and driving a successful
framework of leadership (Breuer & Mahdjour, 2012). A digital PR and partnering program helps
in supporting and driving the activities of web presence and social media marketing of a
company. In the final phase, advertisement efforts and programs should be developed for
enhancing the position of the product and creating a brand image. Strategic PR and crowd
sourcing should be implemented for strategically driving events, high profile awareness
campaigns with high impact media and events.
Associated critical risks, problems and mitigation
In the contemporary business era, the technological industry is the most chosen one by
most of the aspiring businessmen and entrepreneurs. It is a rapidly growing and broad sector
which attracts venture capitalists and investors. Success in such a field results in yield of large
payout potentials. The basic appeal of a technology start-up venture is simple to be understood,
however, entrepreneurs often fail in considering the critical risks and challenges which they
might face in the highly competitive technological environment. There are various issues and
challenges associated with starting a technology company. The most critical and common ones
are constant change, inability of accomplishing the initial objective, challenges related to
partnership decisions, issues related to hiring and cyber risks (Salamzadeh & Kawamorita
Kesim, 2015).
The technological sector is primarily characterized by rapid and constant changes. The
general environment of technological field is highly dynamic in nature. These changes are
known to be more than in any other industry. As such, any start-up can fail and never succeed, if

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necessary actions are not taken towards such changes. Entrepreneurs are aware of the fact that
there is a high amount of pressure in moving rapidly and beating the competition for a significant
solution (Davidsson & Gordon, 2012). If a business is not agile enough and is unable to execute
quickly on a concept or idea, the opportunity of launching the new products or services might
close even before the same are ready for the market.
The next issue is the inability of reaching the initial objective. There is a high possibility
that a tech start-up venture might not be able to complete and achieve its initially planned
objectives, which is mainly due to the rapid changes in technology (Rae & Wang, 2015).
Entrepreneurs often keep their business operations stagnant instead of simply accepting the
changing directions of the business and its failure. As a result, they end up being in the ‘zombie’
state. Entrepreneurs have an attitude of never giving up and feel embarrassed in conceding
defeat. So they keep going with their milestones, but never really are able to achieve them.
In a tech start-up, hiring employees can be a challenging experience. IT start-ups often
hire many employees before they are even ready. Being available with resources does not
necessarily mean to stretch them right away as it could become a massive problem. Such
businesses have a rapid growth and attract huge amounts of financing; however it is difficult for
accommodating such growth significantly. Another issue of hiring faced by the new IT
businesses is the inability of drawing the best talents into an environment of startup.
Finally, tech startups are exposed to cyber risks and threats since their operations are
completely online and web based. In most of the cases, the B2B market is served by such
startups. This means other companies and businesses are dependent upon such startups in order