A Triple Cornerstone Framework for Software Startups

Abstract

Software startups are increasingly under high pressure to deliver successful products to survive and thrive in the modern highly competitive technology market. Larger organizations with deep pockets can replicate the same business ideas used by startups with relative ease. So how does the average startup stand a chance at succeeding at this seemingly David vs. Goliath contest? This chapter looks at the available literature and identifies factors that can affect the success of software development startups. Using causal loop constructs from the field of system dynamics, the interactions among the various identified factors are visualized to reveal the dynamics of the system. The result is as a three-dimensional view of success factors in form of time, capital, and (product) differentiation. The chapter also explores the cornerstones in the context of the product and business dimensions of software startups. This research acts as groundwork for analyzing the workings of software startups and sets the stage for a more holistic study upon which further research can be carried out.