Tampere University of Technology

TUTCRIS Research Portal

Ways to Cross the Rubicon: Pivoting in Software Startups

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review

Details

Original languageEnglish
Title of host publicationProduct-Focused Software Process Improvement
Subtitle of host publication16th International Conference, PROFES 2015 Bolzano, Italy, December 2–4, 2015, Proceedings
PublisherSpringer
Pages555-568
Number of pages14
ISBN (Electronic)978-3-319-26844-6
ISBN (Print)978-3-319-26843-9
DOIs
Publication statusPublished - 2015
Publication typeA4 Article in a conference publication
EventInternational Conference on Product-Focused Software Process Improvement -
Duration: 1 Jan 2000 → …

Publication series

NameLecture Notes in Computer Science
Volume9459
ISSN (Print)0302-9743

Conference

ConferenceInternational Conference on Product-Focused Software Process Improvement
Period1/01/00 → …

Abstract

Startup, or a potential company looking for form and repeatable, scalable business model, has become an advocated mechanism for embracing high ambition, innovativeness, and growth. The success of a startup is often related to the time it takes the startup to develop their business model. When the entire business is based on extreme uncertainty the main business hypothesis of the business model must be continuously tested and improved. This main business hypothesis can be split into smaller business hypotheses and when one of these business hypotheses proves to be false, a change in the direction of the company – so-called pivot – must be considered. Readily made approaches exist to accomplish this, including in particular the Lean Startup framework, that aims at iteratively developing, experimenting, and validating business hypotheses. In this paper study how pivots can change business hypotheses shown as a segments in Lean Model Canvas, a strategic management tool for developing nbusiness models. As an empirical contribution, we describe this definition of pivots with three case companies – all small software startups from Tampere region, Finland – and map the pivot effects on the business hypotheses. We found out that the pivots can be identified by changes in the Lean Model Canvas, that pivots typically take place in groups, and that comprehensive pivots happen early in the startup’s life, whereas once the business model is clarified, fine-tuning is more likely to take place.

Publication forum classification

Field of science, Statistics Finland