Advertisement

Changing and Pivoting the Business Model in Software Startups

  • João M. Fernandes
  • Paulo Afonso
Conference paper
Part of the Lecture Notes in Business Information Processing book series (LNBIP, volume 336)

Abstract

In a company, its business strategy and business model undergo changes throughout its life. These changes can be induced or forced externally or they can result from a deliberate strategy to improve the business performance and to achieve success. Certain changes can lead to a major change in the business model of the company (i.e., a pivot). Such change or innovation in the business model can occur in various of its dimensions. According to Osterwalder and Pigneur, there are four epicenters of change and innovation to be taken into consideration. In this manuscript, fifteen Portuguese software startups were studied using essentially semi-structured interviews to gather the information. The data was processed with a software application for qualitative data analysis. The main results are related to a dynamic process of evolution and change of the business model in software startups. In particular, we have identified that the changes in the business elements that support the production of the value proposition (left-hand side of the Business Model Canvas) affect the elements that explain the strategy of delivering the value proposition to customers (right-hand side of the Business Model Canvas).

Keywords

Software companies Startups Business model Strategic innovation 

Notes

Acknowledgements

This work was supported by COMPETE: POCI-01-0145-FEDER-007043 and FCT Fundação para a Ciência e a Tecnologia within the Project Scope: UID/CEC/00319/2013.

References

  1. 1.
    Ries, E.: The Lean Startup: How Today’s Entrepreneurs Use Continuous innovation to Create Radically Successful Businesses. Crown Publishing Group (2011)Google Scholar
  2. 2.
    Terho, H., Suonsyrjä, S., Karisalo, A., Mikkonen, T.: Ways to cross the rubicon: pivoting in software startups. In: Abrahamsson, P., Corral, L., Oivo, M., Russo, B. (eds.) PROFES 2015. LNCS, vol. 9459, pp. 555–568. Springer, Cham (2015).  https://doi.org/10.1007/978-3-319-26844-6_41CrossRefGoogle Scholar
  3. 3.
    Bajwa, S.S., Wang, X., Duc, A.N., Abrahamsson, P.: How do software startups pivot? Empirical results from a multiple case study. In: Maglyas, A., Lamprecht, A.-L. (eds.) ICSOB 2016. LNBIP, vol. 240, pp. 169–176. Springer, Cham (2016).  https://doi.org/10.1007/978-3-319-40515-5_14CrossRefGoogle Scholar
  4. 4.
    Osterwalder, A., Pigneur, Y.: Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Wiley, Hoboken (2010)Google Scholar
  5. 5.
    Voelpel, S.C., Leibold, M., Tekie, E.B.: The wheel of business model reinvention: how to reshape your business model to leapfrog competitors. J. Chang. Manag. 4(3), 259–276 (2004).  https://doi.org/10.1080/1469701042000212669CrossRefGoogle Scholar
  6. 6.
    Abell, D.F.: Defining the Business: The Starting Point of Strategic Planning. Prentice-Hall, Englewood Cliffs (1980)Google Scholar
  7. 7.
    Markides, C.: Strategic innovation. MIT Sloan Manag. Rev., 9–23 (1997). (Spring). https://sloanreview.mit.edu/article/strategic-innovation/
  8. 8.
    Osterwalder, A., Pigneur, Y.: Modeling value propositions in e-business. In: 5th International Conference on Electronic Commerce (ICEC 2003), pp. 429–436. ACM (2003).  https://doi.org/10.1145/948005.948061
  9. 9.
    Stähler, P.: Business models as an unit of analysis for strategizing. In: International Workshop on Business Models, Lausanne, Switzerland, pp. 4–5 (2002)Google Scholar
  10. 10.
    Alt, R., Zimmermann, H.-D.: Preface: introduction to special section – business models. Electron. Mark. 11(1), 3–9 (2001).  https://doi.org/10.1080/713765630CrossRefGoogle Scholar
  11. 11.
    van Cann, R., Jansen, S., Brinkkemper, S.: Software Business Start-up Memories: Key Decisions in Success Stories. Palgrave Macmillan, Basingstoke (2013)Google Scholar
  12. 12.
    Linder, J., Cantrell, S.: Changing business models: Surveying the landscape. Technical report, Accenture - Institute for Strategic Change, May 2000Google Scholar
  13. 13.
    Wright, P., Kroll, M.J., Parnell, J.A.: Strategic Management: Concepts and Cases, 4th edn. Prentice Hall, Upper Saddle River (1998)Google Scholar
  14. 14.
    Oliveira. D.: Planejamento estratégico: Conceitos, metodologia e práticas, 26th edn. Atlas, São Paulo, Brazil (2009). In PortugueseGoogle Scholar
  15. 15.
    Fernandes, J.M., Machado, R.J.: Requirements in Engineering Projects. LNMIE. Springer, Cham (2016).  https://doi.org/10.1007/978-3-319-18597-2CrossRefGoogle Scholar
  16. 16.
    Edwards, R., Holland, J.: What is qualitative interviewing? The ‘What is?’ Research Methods Series. Bloomsbury Publishing (2013)Google Scholar
  17. 17.
    Maurya, A.: Running Lean: Iterate from Plan A to a Plan That Works. O’Reilly Media, Sebastopol (2012)Google Scholar
  18. 18.
    Coleman, G., O’Connor, R.: An investigation into software development process formation in software start-ups. J. Enterp. Inf. Manag. 21(6), 633–648 (2008).  https://doi.org/10.1108/17410390810911221CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  1. 1.Dept. Informática and Dept. Produção e Sistemas/Centro ALGORITMIUniversidade do MinhoBragaPortugal

Personalised recommendations