The biggest share of all start-ups is IT start-ups, states Christian Wodon, head of start-up services in the Vienna Economic Chamber. The IT specific topology of low investment and every growing area of applications make creating an IT start-up easier then in every other sector.
The Success Factors Research offers founder, investors and other stake-holders facts on which the probability of a company’s Success and starting points for improvements for the founder(s). Even though the IT specific topology indicates that there are distinctive success factors for that sector, there is yet little literature about success factors of IT start-ups available.
The IT sector is more then any other sector (with the exception of construction) determined by projects. The implementation of new Software, creating IT infrastructure, developing new hardware, migration towards a new ERP-System, all these are projects.
I am going to take a closer look at project management for start-up IT companies, and the road to implement such a system using a case study.
The Case examined is an IT-Start-up Company which is working in the new E-Sports segment. The gained insights about Critical Success Factors will be used to create recommendations for the case company. Furthermore a plan for a Project Management System is created for the company.
Table of contents
1 Introduction
1.1 Purpose and target audience of Critical Success Factor research
1.2 Definitions
1.3 Problems
2 Hypothesis
3 Approaches
3.1 Sources in existing Literature
3.2 Expert interview(s)
3.3 Founder interviews and questionnaires
4 Existing Literature
4.1 Definition of Success in various Sources
4.2 Books
4.3 Periodicals
4.4 Other sources
5 Classification of Success Factors
5.1 Hard Factors vs. Soft Factors
5.2 Endogenous Factors vs. Exogenous Factors
5.3 Generic vs. Specific Factors
5.4 Functional Categorization
5.5 Critical Success Factors in general companies
5.6 Success Factors especially for IT start-up companies
6 Empirical Part
6.1 Overview
6.2 Goals
6.3 Questionnaire design
6.4 Questionnaire ‘distribution’ and feedback rate
6.5 Problems
6.6 Expected results
6.7 Results
6.8 Result summary
7 Planning a Project Management System for an IT Start up company
7.1 Introduction
7.2 Definitions
7.3 Case Company: a game publishing company
7.4 Requirements on the Project Management System
7.5 Procedure
7.6 Components of the Project Management System
7.7 Methods
7.8 Planning the „Project Management System” project
7.9 Summary
8 End
8.1 Conclusion
8.2 Findings on the 7 Hypothesis
8.3 Ranking the Success Factors
8.4 Outlook
Research Objectives and Key Topics
This thesis aims to identify and analyze the Critical Success Factors (CSFs) specifically for IT start-up companies. It investigates the commonalities and hierarchical structures of these factors and examines how they vary by company size, age, and individual business functions. Additionally, the work provides a practical guide for implementing a project management system within a newly founded IT company.
- Identification of common Critical Success Factors for IT start-ups.
- Categorization and hierarchy of success factors within the IT sector.
- Evaluation of the impact of organizational culture and team dynamics.
- Empirical analysis through expert interviews and online questionnaires.
- Practical framework for developing an IT project management system.
Auszug aus dem Buch
1.2.1 Success
According to Woywode (2004)8, there is discordance amongst researchers in how Success is measured. He names a number of different measure factors: Profit development, Turnover development, Market share, Return on Investment (ROI), Shareholder Value, Profit margin, Return on Equity (ROE) and more.
Woywode (2004) further states that (from Almus 2000, Vanderwerf/Mahon 1997) these differences as well as the different methods to measure this key data lead to inconsistent results in Success Factor Research.
In Decision Theory Model for Entrepreneurial Acts (Müller, 2003 from Campbell, 1992) the Goal of the entrepreneur is the economical aspect of a company foundation. Campbell calls this Goal Net Present Value of Entrepreneurship, and defines it as expected profit of a Start up compared to wage as an employee.
According to March (1990, p. 384ff, from Woywode, 2004) multiple empirical studies proved that key data of balancing and cost accounting are insufficient to reflect the economical situation of a company.
Success, not strictly economical speaking, is the grade of achievement of a Goal, and thus the degree of success depends on the Goal the management has set for that company.9 These Goals can be individual from company to company and change within the lifecycle of a company.
Summary of Chapters
1 Introduction: Provides an overview of the IT start-up landscape and defines the scope, audience, and central problems of success factor research.
2 Hypothesis: Outlines seven central working hypotheses regarding the nature, hierarchy, and variability of success factors in IT start-ups.
3 Approaches: Describes the methodology, including the use of existing literature, expert interviews, and founder surveys to gather data.
4 Existing Literature: Reviews previous research on success definitions and critical factors in various business and technology-focused studies.
5 Classification of Success Factors: Proposes a functional framework for categorizing success factors, grouping them into areas like Founder, Team, Environment, Marketing, Product, and Finances.
6 Empirical Part: Presents the findings from the online questionnaire, analyzing feedback from IT start-up founders and employees regarding their perceptions of success.
7 Planning a Project Management System for an IT Start up company: Offers a roadmap for setting up a project management system, using a game publishing company as a case study.
8 End: Summarizes the conclusions, discusses the findings related to the initial hypotheses, and provides an outlook for future research.
Keywords
IT Start-ups, Critical Success Factors, Project Management, Entrepreneurship, Business Foundation, Market Strategy, Product Development, Financial Planning, Founder Personality, Empirical Research, Organizational Structure, Innovation, Knowledge Management, Success Indicators, Virtual Organizations.
Frequently Asked Questions
What is the core focus of this research?
The research focuses on identifying and evaluating the Critical Success Factors (CSFs) that determine the viability and growth of IT start-up companies.
What are the primary themes covered in this work?
The main themes include founder personality, marketing strategies, product differentiation, financial sustainability, and the practical implementation of project management systems.
What is the primary objective of the study?
The objective is to provide a structured understanding of what makes IT start-ups succeed and to offer a functional framework that founders can use to evaluate their own companies.
Which scientific methods were employed?
The author used a three-tier approach: a comprehensive literature review, in-depth expert interviews, and a wide-reaching quantitative online survey of founders and employees.
What is discussed in the main part of the thesis?
The main part covers the classification of success factors, detailed empirical analysis of survey data, and a practical guide to building an IT-specific project management system.
Which keywords characterize this thesis?
Key terms include IT Start-ups, Critical Success Factors, Project Management, Founder Personality, and Organizational Structure.
How do IT start-ups differ from traditional companies according to the text?
IT start-ups often benefit from low initial investment, high scalability, and the ability to operate across borderless, digital markets, though they face unique challenges in rapid market entry.
What role does the "Founder Personality" play?
The literature and empirical data consistently rank founder personality as the number one success factor, as it drives the fundamental early decisions and organizational culture of the company.
What does the case study on a game publisher reveal?
The case study illustrates the necessity of specific project management standards and knowledge management systems (like Wikis) to handle distributed virtual teams and development outsourcing.
- Quote paper
- Benedikt Dellmour (Author), 2006, Critical success factors it-start-up companies, Munich, GRIN Verlag, https://www.grin.com/document/170391
