How Do Software Startups Pivot? Empirical Results from a Multiple Case Study

In order to handle intense time pressure and survive in dynamic market, software startups have to make crucial decisions constantly on whether to change directions or stay on chosen courses, or in the terms of Lean Startup, to pivot or to persevere. The existing research and knowledge on software startup pivots are very limited. In this study, we focused on understanding the pivoting processes of software startups, and identified the triggering factors and pivot types. To achieve this, we employed a multiple case study approach, and analyzed the data obtained from four software startups. The initial findings show that different software startups make different types of pivots related to business and technology during their product development life cycle. The pivots are triggered by various factors including negative customer feedback.Comment: Conference publication, International Conference on Software Business (ICSOB'16), Sloveni

are software startups applying agile practices the state of the practice from a large survey

Software startups operate under various uncertainties and the demand on their ability to deal with change is high. Agile methods are considered a suitable and viable development approach for them. However, the competing needs for speed and quality may render certain agile practices less suitable than others in the startup context. The adoption of agile practices can be further complicated in software startups that adopt the Lean Startup approach. To make the best of agile practices, it is necessary to first understand whether and how they are used in software startups. This study targets at a better understanding of the use of agile practices in software startups, with a particular focus on lean startups. Based on a large survey of 1526 software startups, we examined the use of five agile practices, including quality related (regular refactoring and test first), speed related (frequent release and agile planning) and communication practice (daily standup meeting). The findings show that speed related agile practices are used to a greater extent in comparison to quality practices. Daily standup meeting is least used. Software startups who adopt the Lean Startup approach do not sacrifice quality for speed more than other startups do

Customer Discovery and Customer Validation in Lean Software Startups

The traditional business models and the traditionally successful development methods that have been distinctive to the industrial era, do not satisfy the needs of modern IT companies. Due to the rapid nature of IT markets, the uncertainty of new innovations‟ success and the overwhelming competition with established companies, startups need to make quick decisions and eliminate wasted resources more effectively than ever before. There is a need for an empirical basis on which to build business models, as well as evaluate the presumptions regarding value and profit. Less than ten years ago, the Lean software development principles and practices became widely well-known in the academic circles. Those practices help startup entrepreneurs to validate their learning, test their assumptions and be more and more dynamical and flexible. What is special about today‟s software startups is that they are increasingly individual. There are quantitative research studies available regarding the details of Lean startups. Broad research with hundreds of companies presented in a few charts is informative, but a detailed study of fewer examples gives an insight to the way software entrepreneurs see Lean startup philosophy and how they describe it in their own words. This thesis focuses on Lean software startups‟ early phases, namely Customer Discovery (discovering a valuable solution to a real problem) and Customer Validation (being in a good market with a product which satisfies that market). The thesis first offers a sufficiently compact insight into the Lean software startup concept to a reader who is not previously familiar with the term. The Lean startup philosophy is then put into a real-life test, based on interviews with four Finnish Lean software startup entrepreneurs. The interviews reveal 1) whether the Lean startup philosophy is actually valuable for them, 2) how can the theory be practically implemented in real life and 3) does theoretical Lean startup knowledge compensate a lack of entrepreneurship experience. A reader gets familiar with the key elements and tools of Lean startups, as well as their mutual connections. The thesis explains why Lean startups waste less time and money than many other startups. The thesis, especially its research sections, aims at providing data and analysis simultaneously.Siirretty Doriast

Software Startups -- A Research Agenda

Software startup companies develop innovative, software-intensive products within limited time frames and with few resources, searching for sustainable and scalable business models. Software startups are quite distinct from traditional mature software companies, but also from micro-, small-, and medium-sized enterprises, introducing new challenges relevant for software engineering research. This paper's research agenda focuses on software engineering in startups, identifying, in particular, 70+ research questions in the areas of supporting startup engineering activities, startup evolution models and patterns, ecosystems and innovation hubs, human aspects in software startups, applying startup concepts in non-startup environments, and methodologies and theories for startup research. We connect and motivate this research agenda with past studies in software startup research, while pointing out possible future directions. While all authors of this research agenda have their main background in Software Engineering or Computer Science, their interest in software startups broadens the perspective to the challenges, but also to the opportunities that emerge from multi-disciplinary research. Our audience is therefore primarily software engineering researchers, even though we aim at stimulating collaborations and research that crosses disciplinary boundaries. We believe that with this research agenda we cover a wide spectrum of the software startup industry current needs

Case Survey Studies in Software Engineering Research

Background: Given the social aspects of Software Engineering (SE), in the last twenty years, researchers from the field started using research methods common in social sciences such as case study, ethnography, and grounded theory. More recently, case survey, another imported research method, has seen its increasing use in SE studies. It is based on existing case studies reported in the literature and intends to harness the generalizability of survey and the depth of case study. However, little is known on how case survey has been applied in SE research, let alone guidelines on how to employ it properly. Aims: This article aims to provide a better understanding of how case survey has been applied in Software Engineering research. Method: To address this knowledge gap, we performed a systematic mapping study and analyzed 12 Software Engineering studies that used the case survey method. Results: Our findings show that these studies presented a heterogeneous understanding of the approach ranging from secondary studies to primary inquiries focused on a large number of instances of a research phenomenon. They have not applied the case survey method consistently as defined in the seminal methodological papers. Conclusions: We conclude that a set of clearly defined guidelines are needed on how to use case survey in SE research, to ensure the quality of the studies employing this approach and to provide a set of clearly defined criteria to evaluate such work.Comment: Accepted for presentation at ACM / IEEE International Symposium on Empirical Software Engineering and Measurement (ESEM) (ESEM '20

Does maturity level influence the use of agile UX methods by digital startups? Evaluating design thinking, lean startup, and lean user experience

Context: Agile UX methods such as Design Thinking, Lean Startup, and Lean User Experience have been employed to deliver customer value and improve organizational performance. However, there is a lack of studies that assess how these tools are used at different stages of maturity of digital startups. Objective: The present study aims to compare the knowledge of graduated, incubated, and pre-incubated digital startups at university incubators concerning the use of Agile UX methods so that weaknesses and opportunities can be identified to provide co founders and scholars with new strategic insights. Method: Six reduced focus groups were conducted with 14 members of the six selected startups via multiple case studies. Answers were registered by researchers and then analyzed using an inductive process and codification. Results: The results indicated that digital startups had contact with consumers through market research, viability analysis, and product discontinuity. However, except for one startup, deficiencies in co-founders’ participation throughout developing products and services projects were identified. As far as the multiple case studies are concerned, Design Thinking and Lean Startup were employed by four of the startups, while two of them used the Lean User Experience method due to its higher maturity level. Conclusion: Although all Agile UX methods were employed, all six digital startups reported having made adaptations to the methods or to have used them only partially. Finally, it was concluded that the maturity level influences the Agile UX methods of each digital startup according to its nature and its stage of development in the market.Campus Lima Centr

Understanding how high-tech entrepreneurs successfully pivot as part of the entrepreneurial journey

Purpose: In their entrepreneurial journey, high-tech entrepreneurs continuously face a need to devise a competitive value proposition for the startup company and leverage emerging technology to strengthen the proposition. Entrepreneurial pivoting addresses this challenge by allowing startups to validate and refine both their strategy and business model. Therefore, the research study has investigated two theories: the Lean Startup Approach and Technology Entrepreneurship. Consequently, the study has provided an empirical investigation of the pivoting concept examined in the context of the Lean Startup approach (LSA) and Technology Entrepreneurship to improve the understanding of the entrepreneurial journey for high-tech entrepreneurs. The research also focused on understanding how the life cycle stage of an emerging technology impacts the high-tech entrepreneurs’ entrepreneurial journey. The Lean Startup Approach, the technology S-curve, and the technology readiness level (TRL) framework were investigated to address the above question. The study has provided an empirical investigation of the pivoting concept, which has been explained in the context of the lean startup approach (LSA), the technology S-curve and the technology readiness level to improve the understanding of the entrepreneurial journey for high-tech entrepreneurs leading tech startups. Apart from investigating how high-tech entrepreneurs develop competitive value propositions and how emerging technologies impact their entrepreneurial journey, the research study also investigated leadership styles and their influence on tech entrepreneurs. For this, the study has empirically investigated pivoting from the Lean Startup Approach and six different leadership styles. Due to studying pivoting from the Lean Startup Approach and investigating technology entrepreneurship, technology S-curve and technology readiness levels, this research study is titled ‘Understanding how high-tech entrepreneurs successfully pivot their startups as part of the entrepreneurial journey’. Methodological Approach: A qualitative research method was adopted by interviewing hightech entrepreneurs across the United Kingdom to validate the theories associated with the LSA and identify new insights on entrepreneurial pivoting. The interviews are divided into two stages. Firstly, thirty primary interviews were conducted to understand pivoting and the factors that trigger pivoting; the influence of the phases of technology entrepreneurship on pivoting; and the impact of stages of technology maturity in the technology S-curve on pivoting. Secondly, longitudinal interviews were conducted in three phases with nine high-tech entrepreneurs who were also involved in the thirty primary interviews. The purpose of the longitudinal interviews was to collect further data on the above-mentioned topics and understand in more detail and build up a richer picture on how high-tech startups successfully pivot as part of the entrepreneurial journey. Findings: The research study has validated the existing types of pivots and identified two new pivots (giving 16 in total). The study has validated 11 factors that trigger a tech startup to change direction and identified three new factors (giving 14 in total). The research study also determined that there can be a domino effect in pivoting, and the value proposition can be created and sustained through pivoting. The study has established the influence of the phases of technology entrepreneurship on pivoting and the impact of the stages of technology maturity in the technology S-curve on pivoting. Originality: The study provides empirical evidence on pivots and the factors associated with pivots. Moreover, the study significantly helps to improve the understanding of the influence of the phases of technology entrepreneurship on pivoting. The study has developed a new conceptual framework for TE. Furthermore, the study helped in understanding the impact of the stage of technology in the technology S-curve and technology readiness level on pivoting. The study also discusses the challenges faced by tech startups while pursuing pivots; the domino effect in pivoting; and has found evidence that pivoting leads to achieving the desired results