In the context of software startups, project failure is embraced actively and considered crucial to obtain validated learning that can lead to pivots. A pivot is the strategic change of a business concept, product or the different elements of a business model. A better understanding is needed on different types of pivots and different factors that lead to failures and trigger pivots, for software entrepreneurial teams to make better decisions under chaotic and unpredictable environment. Due to the nascent nature of the topic, the existing research and knowledge on the pivots of software startups are very limited. In this study, we aimed at identifying the major types of pivots that software startups make during their startup processes, and highlighting the factors that fail software projects and trigger pivots. To achieve this, we conducted a case survey study based on the secondary data of the major pivots happened in 49 software startups. 10 pivot types and 14 triggering factors were identified. The findings show that customer need pivot is the most common among all pivot types. Together with customer segment pivot, they are common market related pivots. The major product related pivots are zoom-in and technology pivots. Several new pivot types were identified, including market zoom-in, complete and side project pivots.Our study also demonstrates that negative customer reaction and flawed business model are the most common factors that trigger pivots in software startups. Our study extends the research knowledge on software startup pivot types and pivot triggering factors. Meanwhile it provides practical knowledge to software startups, which they can utilize to guide their effective decisions on pivoting.pivots that software startups make when failures happen. To this end, the research questions that guided the study are phrased as following: RQ1: What are the factors that trigger software startups to pivot? RQ2: What are the types of pivots software startups undertake?To answer the research questions, we employed a systematic research process. We collected online materials as secondary data and analysed the major pivots in 49 software startups reported in these materials, including the well-known companies such as YouTube, Flickr, Pinterest and Twitter. The online materials allowed us to quickly obtain useful data on as many significant pivots in software startups as possible. Based on the analysis of the pivots in these 49 software startups, we extracted a list of factors that triggered them to pivot, and identified a set of major types of pivots they conducted. To better structure the triggering factors and pivot types, we categorized them into different groups respectively.The rest of this paper is organized as follows: in Section 2, the background literature and related work are reviewed. Section 3 describes the research approach employed in the study. The research findings are presented in detail in Section 4, and further discussed in Section 5. The paper is summarized in Section 6, which also outlines th...
Abstract. Software startups are challenging endeavours, with various road blocks on their path to success. The current understanding of the challenges that software startups may encounter is very limited. In this paper, we use the research framework of learning and product development stages to analyse the key challenges that software startups have to deal with at different life cycle stages, from problem definition to solution validation and from concept to mature product. Based on an analysis of the empirical data collected by a large survey of 4100 startups, we find out that what perceived as biggest challenges by software startups do vary across different life cycle stages. Building product is the biggest obstacle for software startups, even though its significance decreases when the learning focuses of the startups move from problem to solution and their products mature. Business related challenges such as customer acquisition and scaling are more noticeable at the later stages. Our study raises the awareness of these challenges and suggests to tackle right challenges at the right time.
Internet of Things applications are not only the new opportunity for digital businesses but also a major driving force for the modification and creation of software systems in all industries and businesses. Compared to other types of software-intensive products, the development of Internet of Things applications lacks a systematic approach and guidelines. This paper aims at understanding the common practices and challenges among start-up companies who are developing Internet of Things products. A qualitative research is conducted with data from twelve semi-structured interviews. A thematic analysis reveals common types of Minimum Viable Products, prototyping techniques and production concerns among early stage hardware start-ups. We found that hardware start-ups go through an incremental prototyping process toward production. The progress associates with the transition from speed-focus to quality-focus. Hardware start-ups heavily rely on third-party vendors in term of development speed and final product quality. We identified 24 challenges related to management, requirement, design, implementation and testing. Internet of Things entrepreneurs should be aware of relevant pitfalls and managing both internal and external risks.
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