A preliminary study on Information Technology Startup Challenges and their Plausible Solutions from Lean-Agile Methodology

This empirical study discusses the challenges faced by start-ups operating in the Information Technology (IT) sector. This paper proposes three objectives. First, to collate all the challenges faced by the Indian startup companies, especially in the IT sector within the Bangalore region. Second, to analyze how the startup founders tried to overcome these challenges. Third, this paper presents plausible solutions for IT-based start-ups to overcome these challenges through a Lean-Agile mindset, principles, and practices. This research also comprises information from secondary sources. A tailored SHELL methodology [1] was used to identify the start-ups' challenges in seven real-life Indian Startups. Findings reveal major challenges such as poor product/market fit, lack of customer centricity, ineffective leadership, and too many competitors. The following were cited by founders as the solutions – a) By re-inventing and moving to some other product b) Branding, delivering quality, and customer education c) Process changes and appointing a Project Manager d) By implementing an agile approach, customer involvement at each stage of the development was possible. To minimize the effect of these challenges, the primary solutions suggested in this paper were related to the use of design thinking tools during the continuous exploration phase of product development. Emphasis is also given to the Lean-Agile mindset that enables leaders or founders towards successful business outcomes.