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SOFTWARE STARTUPS – FORGET THE PROCESSES? Pekka Abrahamsson Dean, professor Free University of Bozen-Bolzano, Italy Keynote address 11.12.2013 Software Statup Day, Tampere, Finland

SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

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Page 1: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

SOFTWARE STARTUPS –FORGET THE PROCESSES?

Pekka AbrahamssonDean, professor

Free University of Bozen-Bolzano, ItalyKeynote address

11.12.2013 Software Statup Day, Tampere, Finland

Page 2: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

LEAN STARTUPSPECIAL SESSION

• Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

• Patterns can be identified but they become obselete in less than 5yrs

• Predominantly, software startups face the existency problem, i.e., whether they even have the right to exist at all?

• Systemic design requires holistic understanding of the market place, the product and the problem domain but rarely plays a role in startups

Software startups and processes

Page 3: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

NEARLY ALL STARTUPS FAIL!

Page 4: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

Cheap to implement

Costly to implement

Highbusiness

value

Lowbusiness

value

Great!

Crazy!

Dangerous!

Risky!

Page 5: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

WHY THESE FAILURES?• Let’s take a look at three recent action research studies

– Libroalpini– Picteye– Bobo

• These are typical startup scenarios: Libroalpini is out of business, Picteye is going out of business (most likely) and Bobo is an ongoing (failure) startup

• The cases are particularly interesting since– The team is mostly the same (learning should

happen)– They follow (or followed) lean startup method for

business development and Scrumban for product development

Page 6: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons
Page 7: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

You CANNOTbuy photosfrom any

event

Page 8: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons
Page 9: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

Event photo platform,

photographers earn 70%

Page 10: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons
Page 11: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons
Page 12: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

QUANTITATIVE MEASURES!

Page 13: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons
Page 14: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

KNOW YOUR CUSTOMERS!

Page 15: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons
Page 16: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons
Page 17: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons
Page 18: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

OVERVIEW

Screen capturefrom ”libroalpini.it”

Page 19: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

OVERVIEW

Page 20: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

OVERVIEW

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...

http://www.libroalpini.it/overview

...

Page 23: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons
Page 24: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons
Page 25: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

ORIGINAL MISSION – THE REQS

Page 26: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

ORIGINAL MISSION – THE REQS

Page 27: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

ORIGINAL MISSION – THE REQS

Page 28: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

Sounds good, but how many sold photos you have up to date?

Page 29: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons
Page 30: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

Let’s talk about the important stuff

Page 31: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

What do your students see?

Page 32: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

Maybe even this:

Page 33: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

Imagine…• Having a cluster with hundreds of nodes• At a price that is affordable• With low energy and maintenance costs• Full access for your students

Not possible? Think again!

Page 34: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

Honey, I shrunk the data center!

Page 35: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

The Plan for MVP

Page 36: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

A collective effort! More than 20 students and staff have been involved so far.

Page 37: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons
Page 38: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

RACK V1.0 – MARCH 2013

Page 39: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

RACK V2.0 – JUNE 2013

Page 40: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

MISSION COMPLETED?

Page 41: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

DOES IT SELL?

Page 42: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

THE PUZZLE

Page 43: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

THE PUZZLE

Page 44: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

CHARACTERISTICS OF THEFUTURE OF COMPUTING

• Friendly• Functional• Solid• Economical• Natural• Modular• Accessible• Removable• Self-buildable• Modifyible• Maintainable• Transportable

• Zero-mile production

• Artistic• Personalizable• Multi-use• Timeless• Recyclable• Simple• Sympathetic• Easy• Sustainable• Fun

Page 45: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

We went back to thedrawing board!

Page 46: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

Bobo’s software

• Like Amazon, offers an infrastructure as a Service, but– Flexibility, Robustness, (enough)

performance– 100% controlled by you as it is completely

contained inside the cluster– Each Raspberry with a minimal DEBIAN

image, which offers RAM availability and CPU performance

– Focus on middleware to enable the Bobo’s use

• Global Bobo Cloud for students’ experimental projects, data, innovations and scripts

Page 47: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

Bobo’s software• Loads of self-developed software, all open-

sourced:– Auto-generating SD-card operating system– Low-level infrastructure manager (+ installer)– Centralized auto-configuration manager (+

installer)– Monitor & Control Panel of the whole cluster– Personalized OwnCloud integration (+ installer)– Shell-in-a-box integration with OwnCloud– 3G connection between cluster nodes ( in

release)• Choices of technologies .. bash scripting,

python, NFS, Django, PostgreSQL ..

Page 48: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

So, is Bobo energy cheap?

E[kWh] = P[kW] × t[h]

P[W] = V[V] × I[A]

Slim Bobo with 40 Raspberries0.8A @ 230V ≈ 180W

0.18kW @ 30kWh ≈ 167h

Single Sauna Stove ≈ 6kW@ 5h: 30kWh

It is morethan just heat!

Page 49: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

Bobo’s use cases

• While one Bobo costs less than a MacBook Pro, there are several lucrative opportunities for the use of Bobo in business and in education

Page 50: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

LEAN STARTUPSPECIAL SESSION

• Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

• Patterns can be identified but they become obselete in less than 5yrs

• Predominantly, software startups face the existency problem, i.e., whether they even have the right to exist at all?

• Systemic design requires holistic understanding of the market place, the product and the problem domain but rarely plays a role in startups

Software startups and processes

Page 51: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

Tenured full professor in Free University of Bozen-Bolzano

(Jan 2010 onwards)

Currently, on leave from University of Helsinki,Adjunct Chief Scientist, SINTEF, NO (2007-2009),

Research Professor, VTT, FIN, 2002-2009

PhD in Software Engineering, Univ. of Oulu, 2002

Software developer & quality manager, 1995-2000

Has lead several large & international projects on agile &

global software development

Currently, the academic coordinator of Cloud Software

Research Programme, 60+MEUR, 30 partners, 2010-2013

ITEA-Achiement Award (silver) winner in 2007, Nokia

Foundation Award 2007

Organized more than 15 international SW conferences

100+ scientific publications

ABRAHAMSSON’S PROFILE

Page 52: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

Tenured full professor in Free University of Bozen-Bolzano

(Jan 2010 onwards)

Currently, on leave from University of Helsinki,Adjunct Chief Scientist, SINTEF, NO (2007-2009),

Research Professor, VTT, FIN, 2002-2009

PhD in Software Engineering, Univ. of Oulu, 2002

Software developer & quality manager, 1995-2000

Has lead several large & international projects on agile &

global software development

Currently, the academic coordinator of Cloud Software

Research Programme, 60+MEUR, 30 partners, 2010-2013

ITEA-Achiement Award (silver) winner in 2007, Nokia

Foundation Award 2007

Organized more than 15 international SW conferences

100+ scientific publications

ABRAHAMSSON’S PROFILECYNEFIN FRAMEWORK

ORDERUN-ORDERED

Kautz & Snowden (

Page 53: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

Tenured full professor in Free University of Bozen-Bolzano

(Jan 2010 onwards)

Currently, on leave from University of Helsinki,Adjunct Chief Scientist, SINTEF, NO (2007-2009),

Research Professor, VTT, FIN, 2002-2009

PhD in Software Engineering, Univ. of Oulu, 2002

Software developer & quality manager, 1995-2000

Has lead several large & international projects on agile &

global software development

Currently, the academic coordinator of Cloud Software

Research Programme, 60+MEUR, 30 partners, 2010-2013

ITEA-Achiement Award (silver) winner in 2007, Nokia

Foundation Award 2007

Organized more than 15 international SW conferences

100+ scientific publications

ABRAHAMSSON’S PROFILE

Complicated

SimpleChaoti

c

ORDERUN-ORDERED

Complex

Page 54: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

Tenured full professor in Free University of Bozen-Bolzano

(Jan 2010 onwards)

Currently, on leave from University of Helsinki,Adjunct Chief Scientist, SINTEF, NO (2007-2009),

Research Professor, VTT, FIN, 2002-2009

PhD in Software Engineering, Univ. of Oulu, 2002

Software developer & quality manager, 1995-2000

Has lead several large & international projects on agile &

global software development

Currently, the academic coordinator of Cloud Software

Research Programme, 60+MEUR, 30 partners, 2010-2013

ITEA-Achiement Award (silver) winner in 2007, Nokia

Foundation Award 2007

Organized more than 15 international SW conferences

100+ scientific publications

ABRAHAMSSON’S PROFILE

C-------E

C=EC≠E

ORDERUN-ORDERED

Kautz & Snowden (

Page 55: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

Tenured full professor in Free University of Bozen-Bolzano

(Jan 2010 onwards)

Currently, on leave from University of Helsinki,Adjunct Chief Scientist, SINTEF, NO (2007-2009),

Research Professor, VTT, FIN, 2002-2009

PhD in Software Engineering, Univ. of Oulu, 2002

Software developer & quality manager, 1995-2000

Has lead several large & international projects on agile &

global software development

Currently, the academic coordinator of Cloud Software

Research Programme, 60+MEUR, 30 partners, 2010-2013

ITEA-Achiement Award (silver) winner in 2007, Nokia

Foundation Award 2007

Organized more than 15 international SW conferences

100+ scientific publications

ABRAHAMSSON’S PROFILECYNEFIN FRAMEWORK

Kautz & Snowden (

~10000 hoursto master

~1000 hto maste

~10 houto maste

~? hoursto master

Page 56: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

Tenured full professor in Free University of Bozen-Bolzano

(Jan 2010 onwards)

Currently, on leave from University of Helsinki,Adjunct Chief Scientist, SINTEF, NO (2007-2009),

Research Professor, VTT, FIN, 2002-2009

PhD in Software Engineering, Univ. of Oulu, 2002

Software developer & quality manager, 1995-2000

Has lead several large & international projects on agile &

global software development

Currently, the academic coordinator of Cloud Software

Research Programme, 60+MEUR, 30 partners, 2010-2013

ITEA-Achiement Award (silver) winner in 2007, Nokia

Foundation Award 2007

Organized more than 15 international SW conferences

100+ scientific publications

ABRAHAMSSON’S PROFILECYNEFIN FRAMEWORK

Snowden (

Page 57: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

In the complex domain..

Emerging capability

Emerging value

Emerging content

Source: Rikkilä et al (LESS 2013 conference)

Page 58: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

It’s not over yet!

• Come up with a great idea on what to do with Bobo and win one for yourself!

tinyurl.com/win-a-bobo

Page 59: SOFTWARE STARTUPS – FORGET THE PROCESSES?...LEAN STARTUP SPECIAL SESSION • Processes for today’s startups are nowhere to be found nor can can they be developed for several reasons

Thank you! Reach me at @unibz.it

tinyurl.com/win-a-bobo

tinyurl.com/ciao-bobotinyurl.com/i-want-bobo