Improving the performance of early-stage software startups: Design and creativity viewpoints

TL;DR

This paper explores how design and creativity influence the success of early-stage software startups, emphasizing the importance of innovative design skills in navigating uncertain environments and fostering competitive advantages.

Contribution

It introduces a focus on design skills within startup teams, highlighting their role in fostering creativity and success in the rapidly evolving software industry.

Findings

Design skills are crucial for startup success.

Traditional design methods may hinder innovation.

Creative design deployment can disrupt industry norms.

Abstract

Over the last 20 years, a very large number of startups have been launched, ranging from mobile application and game providers to enormous corporations that have started as tiny startups. Startups are an important topic for research and development. The fundamentals of success are the characteristics of individuals and teams, partner investors, the market, and the speed at which everything evolves. Startup's business environment is fraught with uncertainty, as actors tend to be young and inexperienced, technologies either new or rapidly evolving, and team-combined skills and knowledge either key or fatal. As over 90 per cent of software startups fail, having a capable and reliable team is crucial to survival and success. Many aspects of this topic have been extensively studied, and the results of the study on human capital are particularly important. Regarding human capital abilities, such as knowledge, experience, skills, and other cognitive abilities, this dissertation focuses on design skills and their deployment in startups. Design is widely studied in artistic and industrial contexts, but its application to startup culture and software startups follows its own method prison. In the method prison, old and conventional means are chosen instead of new techniques and demanding design studies. This means that when a software startup considers design as a foundation for creativity and generating better offerings, they can grab any industry with a disruptive agenda, making anything software-intensive.