Requirement Engineering in Startups
Shatadru Shikta, Sowvik Kanti Das, Somania Nur Mahal, H. M. Mahir Shahriyar,
Kazi Bushra Al Jannat and Mahady Hasan
Software Engineering, Independent University, Dhaka, Bangladesh
Keywords: Requirement Engineering, Software Engineering, Startups, Innovation Diffusion, Entrepreneurship.
Abstract: Startup companies are usually negligent when it comes to formal requirement engineering or proper
collection of requirements required for their projects which leads to their early demise before gaining
enough traction in the market. This paper tries to explore the reasons as to why startups fail in context to
requirement engineering and gather experiences from the industry to try and propose a framework that can
help startups work with a feasible and cost-effective method towards implementation of formal requirement
engineering processes to ensure a long and successful tenure in the software industry.
1 INTRODUCTION
Innovation and startups are quite often used hand-in-
hand in the current software industry mainly due to
the fact that startups have a knack of innovating new
ideas to pin-point pain points of a current system to
propose new solutions to minimize difficulties and
increase efficiency in terms of cost, time or effort
from the perspective of end-users.
OECD (2016) proposes the fact that tech-based
startups will eventually be gamechanger in opening
new entrants in the industry in the next 15 years and
therefore the importance of focusing on startups to
bring about a sustainable business model through
innovation is unavoidable (Viki, 2016). However,
around 42% of startups failure can be attributed to
their product which no one wants (Patel, 2015)
which in turn can be directly attributed to the fact
that the requirements for the product were not
feasible to start with.
Moreover, just because an idea is creative does
not make it innovative since one can easily point out
to the huge array of patents found that have found no
commercial success whatsoever (Viki, 2016).
Therefore, it is important to understand the concept
sustainability of innovation, innovation diffusion of
products as well as having a competitive advantage
of requirement engineering (RE) in startups (Autio,
Nambisan, Thomas, & Wright, 2018).
2 BACKGROUND STUDY
RE is an integral part of any software project
management and has been a cornerstone of new
research and development to maximize fulfilled
projects. However, since all tech-based startups have
any of the common constraints of time, pressure,
lack of funds, lack of resources, dependency, etc.,
startups have an affinity to remove processes or
activities they consider to be bulky in nature such as
RE and quality assurance (QA) leading to ultimate
product failures or face the harsh reality of adopting
it later on, leading to massive investment of time and
resource for reworking projects.
All startups set a goal for fulfilling user needs
into account, but the challenge is introducing them
to the future issues ahead of time. Innovative
startups are usually started on overnight ideas;
therefore, it is extremely hard for them to consider
RE as the process is not broadcasted enough to be in
the insight of any entrepreneur (Paternoster,
Giardino, Unterkalmsteiner, Gorschek &
Abrahamsson, 2014).
Tech start-ups have recently become the subject
of intensive research by the software and
requirements engineering communities (Alves,
Cunha, & Araujo, 2020) (Unterkalmsteiner, 2016)
(Nirnaya Tripathi, 2018) and although previous
research sought to understand how innovative
products are created by start-ups, relatively little is
known about start-ups operating within ecosystems
and to what degree ecosystem actors influence the
Shikta, S., Das, S., Mahal, S., Shahriyar, H., Al Jannat, K. and Hasan, M.
Requirement Engineering in Startups.
DOI: 10.5220/0010561002070214
In Proceedings of the 16th International Conference on Software Technologies (ICSOFT 2021), pages 207-214
ISBN: 978-989-758-523-4
Copyright
c
2021 by SCITEPRESS Science and Technology Publications, Lda. All rights reserved
207
acceptance of particular practices and ultimately
affect the effective production of start-ups.
According to Berg, Birkeland, Nguyen-Duc,
Pappas & Jaccheri (2018), tech startups are now
major drivers of economic growth, innovation, and
competitiveness. As said by Blank & Dorf (2012), a
start-up is a temporary organization that is looking
for a viable and repeatable business model. A startup
lifecycle composed of three stages, as proposed by
Crowne (2002) where the first stage begins before
the first sale of the product, the start-up stage begins
with the idea conception, second comes the
stabilization stage begins when the first buyer
acquires the product and finishes when the product
is delivered to new customers, and third, the growth
stage involves the timeline when the product is
mature and stable enough to be commissioned to an
increasing customer base. It is considered a mature
business if the start-up has survived these phases.
This indicates that the business has introduced a
successful product on the market and has a steady
stream of revenue from sales. Startups have adopted
agile and lean concepts to deal with volatile external
factors (Bosch, Holmstm Olsson, Björk, &
Ljungblad, 2013) and need to look carefully at the
business and product dimensions of sustainable
growth to ensure success in their endeavor (Nguyen-
Duc, Shah, & Ambrahamsson, 2016).
Since startups offer innovative solutions under
intense resource constraints, startup team's
expectations about the potential of an innovative
product to capture a good portion of the market, being
suppliers of innovative products in either the same
market or an entirely new market, is guided by actual
market facts gathered through ongoing experiences
(or experiments) with consumers (Levinthal, 2017).
The experimentation improves validated business
learning, which allows the startup team to strengthen
their market assumptions and obtain better market
experience and gain greater faith in them before the
product is introduced to the market.
When the startups started gaining confidence in
the needs of the consumer they began with delivery of
the Minimal Viable Product (MVP) to further
experiment with the real market by supplying early
adopters with the "minimum functionality" (Gupta,
Fernandez-Crehuet, Hanne, & Telesko). (Souza et al.,
2019) conducted a preliminary case study on how RE
processes were completed by startups in Brazil. The
case study revealed that there are four key structures
startups make and execute accordingly.
The first key structure, Customer-Driven
Development was the core source of requirements
for the software development teams. Customers
would actively participate in prototype definition,
prototype feature prioritization and validation. This
showed collaboration within consumers to finalize
construction of the project that improved
development speed as well as the acceptance of the
finished product.
The second key structure, Fast, Light-weight and
Inexpensive Agile Practices were used during the
development of the software. On one hand, this sped
up the development and made management easy due
to less documentation but on the other hand the lack
of documentation meant transition of team members
created knowledge gaps which slowed down
development.
The third key structure, prototyping based
Development with the help of inexpensive
prototyping tools to gain user feedback. This
resulted in assuring the startups of the confidence in
their proposal idea from consumers. Consequently, it
sped up the development and simplified their
development process. The fourth key structure,
Hacking Culture of the startups initiated
collaborative effort among startups. The startups
were hacking off their competition’s processes,
knowledge, tools, and methodologies to get an edge
ahead without spending additional resources.
Effectively, they were able to build off of failed
strategies including the understanding of why they
failed and starting with an alternative solution from
the start.
An alternative study was conducted by Morales-
Trujillo & García-Mireles (2019) on a startup over a
31-month period in New Zealand. The startup was
established to complete a certain contract within a
fixed period of time. During the first 2 months of the
project, the RE process consisted of requirement
gathering from the sponsors and users with ad-hoc
implementation. Later on, the startup went from
being more development specific to implementing a
few agile practices such as user acceptance testing
and use of wireframes. During the ad-hoc
implementation, the startup used planning tools to
evaluate values provided to the customer whereas
the users kept increasing the feature list. Haphazard
implementation and frequent feature release were
followed with poor quality that resulted in a negative
impact on the startup. After a 12-month period, the
startup switched to automated testing tools and
project management tools. This was due to
inadequate quality control in their releases as well as
improper planning of the deliverables.
Implementation of these changes helped the startup
in realizing the customer values achieved from the
features in their releases.
ICSOFT 2021 - 16th International Conference on Software Technologies
208
Since Startups have an informal organizational
structure with vaguely defined roles and
responsibilities, team members usually play multiple
roles. All these limitations impact the project
timeline, so it takes longer than planned timeline and
thus consequences of poor requirements engineering
practice is startups leads to a bunch of reworks
which include changes to the requirements and thus
a major part of the system must be updated to reflect
the changes in the requirements (Quispe, 2010).
Moreover, communication and coordination
problems occur as the requirements elicitation
process does not follow formalized methods and
lastly poor visibility of the project status occurs
pushing the project manager to make decisions
based on uncertainty. Another issue is that
requirements are mainly elicited and prioritized by
startup founder’s assumptions and interpretations of
the market. This can create misinterpretation of the
requirements (Alves, Cunha, & Araujo, 2020).
3 RESEARCH METHODOLOGY
In order to understand the current market trend, we
opted to survey startups to gather data for our
research. Initially, our thought was to have an
interview session with startup stakeholders or
project managers, but we decided to opt for online-
based surveys with objective questions that would
allow us to capture the essence of requirement
management of the startups in the present industry.
The survey was intended to collect data which
we could use for further quantitative and qualitative
analysis. Many phases of startups can be identified
within the industry, but our target was to engage
with startups who are past their ideation phase and
have some form of a team, occupied in building or
developing the product, or is operating in the
market. For our survey, we selected 4 companies
who have recently launched into the market i.e.,
Operating below 6 months, 7 companies who are
operating in the market for at least 1 year and more
and 2 companies who are operating in the market for
at least more than 2 years.
3.1 Course of Action
3.1.1 Organization Classification
Our survey started with some basic classifications
and we have followed the industry standard in
classifying organization size with the help of
employee capacity as the primary classification
factor. A company will be classified as micro for up
to 19 employees, small for 20 to 99 employees,
medium for 100 to 499 employees.
3.1.2 RE Factor Correlation
We focused on how requirement engineering is
performed at a market level will become the tipping
point to show the efficacy of any given requirements
for a project. Secondly, we tried locating any
interconnection between the requirement
engineering and the culture of an organization.
In this regard, we are looking for the
combinational metric from good requirement
engineering practices, satisfactory and engaging
customer base, effective product with remarkable
quality and the organization that hosts employees.
On a statistical level, we are comparing the number
of requirement engineers with the number of total
employees in a project. This will provide us with the
importance the organization places on requirement
engineering as a whole.
3.1.3 Responsibility Association
In this stage we are ensuring the success rate of a
software startup in terms of startup team knowledge,
allocated resources, and implementing RE processes
and their contribution to project success. In a startup
ecosystem, employees are used to taking on multiple
job roles at a time when a developer also works as a
requirement engineer or system analyst.
In order to ensure if the requirement engineering
process is prioritizing in startups, we have looked at
their team structure, RE practices, allocated
resources for RE process and how these factors
influence a project’s success rate in terms of
financial profitability and number of user reach. In a
standard business scenario, the return of investment
is projected over a number of years which the
expected return on investment for a number of years
provides a strong indicator of the business's success
rate. We have used the indicator for attained
profitability in comparison to number of customer
usage, which would reflect the current ROI of the
project and also gives us the prediction for future
comparisons.
3.1.4 RE Progression
In order to understand their project status and
condition we needed to observe the RE challenges
they are facing and how are they related to project
failure. We have analysed the RE factors that are
impacting on project success by taking into
Requirement Engineering in Startups
209
consideration the amount of rework that needed to
be done due to failure in collecting the right
requirements.
3.2 Data Collection
The data has been collected via online surveys due
to covid related complications as well as online
interviews when required. Open-source online
survey tools were used to obtain the data and then
collected via spreadsheets to analyze the data, which
has been described in the next section. Moreover,
the survey was designed in such a way that included
all aspects of the organization in order to have a
comprehensive overview of the organization.
4 RESULTS
4.1 Company Attributes
Since the data includes PII (personally identifiable
information), the data was filtered out and derivation
were made on the filtered-out data. We could
classify 3 as small companies while the rest 12 were
classified as micro companies and the business
domain variation of the startups are described in
Figure 1.
Figure 1: Business Domain Variation.
4.2 Data Analysis
Our main focus was to derive values concerning RE,
product and organization valuation and determine
successes and failures of the startups.
Figure 2 shows the tread line created based with
Project Health percentage as the dependent value
and ratio of requirement engineer to developers
available on each team. The project health
percentage was derived by calculating an average of
the two factors, one being the ratio of number of
current customers to projected customers and the
other being the ratio between current revenue and
projected revenue for the startups. The graph shows
a steady increment of project health with the
increase of ratio of requirement engineer to
developers.
Figure 2: Project Health % vs RE:Dev.
Figure 3 shows the tread line created based with
Change percentage to MVP compared to the current
product as the dependent value and ratio of
requirement engineer to developers available on
each team. The change percentage was gathered by
the percentage amount given by the personnel
working on the project. The graph shows a steady
decrease of change percentage to MVP compared to
the current product with the increase of ratio of
requirement engineer to developers.
Figure 3: Change % to MVP vs RE:Dev.
Figure 4: Project Health % vs Change % to MVP.
ICSOFT 2021 - 16th International Conference on Software Technologies
210
Figure 4 shows the tread line created with
Project Health percentage as the dependent value
and Change percentage to MVP compared to the
current product. The graph shows a steady decrease
of Project Health percentage with the increase of
MVP compared to the current product.
5 PROPOSED FRAMEWORK
Based on our market research, we could clearly
understand that most of the startups that have failed
or are failing have the lack of requirement
engineering processes involved while organization
that have members of the team working as
requirement engineers or is involved in some form
of requirement engineering are better off in terms of
project health.
Gralha, Damian, Wasserman, Goulão & Araújo
(2018) state the importance of requirement
engineering factors for a startup company by
focusing on feedback from customers, insights from
the employers which will be the founders and upper
management in this case, competitive issues,
demands of the market and ongoing changes in the
frameworks and platforms used within the product’s
market ecosystem which keeps the company and the
product reactive and evolutionary.
Thongsukh, Ayuthaya & Kiattisin (2017) on the
other hand proposed the need for employees of a
startup to collaborate and mitigate conflicts amongst
themselves which extends to their views on the
product. Syed, Barqawi & Mathiassen (2019) ask us
the need to focus on release cycle management by
ensuring identification and application of requisite
changes to development and management activities
to make the release cycle continuous and less
chaotic.
The need for customer driven product
development is considered to be a key success factor
for any startup (Lorenz, Lorentzen, Stricker &
Lanza, 2018) while Mattson & Sorensen (2020) state
the need for a custom plan based on the
requirements and available resources for any
organization for success.
Since our market research is consistent with our
findings from our literature review, and based on the
startup study finding mentioned above, we have
come up with a comprehensive yet easily
implementable and feasible framework to mitigate
issues related to RE for startups. For the framework,
our first focus will be towards a list of objectives
related to RE for the startups, given in Table 1
below.
Table 1: List of Objectives for Startups.
Ob
j
ective Priorit
y
Problem and
p
roduct Identification Hi
g
h
Ensurin
g
on-time Releases Hi
g
h
Improve release Processes Mediu
m
Build a basic RE infrastructure Mediu
m
Build team confidence in the product Low
Ensure customer satisfaction Low
Im
p
lement continuous de
p
lo
y
ment Low
The priorities listed are based on a phase-by-
phase manner and each consequent objective must
be completed before the next objective can be
started. In this way, the team can organize their
focus based on the resource and time at hand and
can easily distribute the workload amongst the team.
Based on these 7 objectives, 7 phases are designed
in order to implement the objectives and each phase
will have multiple sub-objectives in order to
complete the final objective. Before going into the
phases, a few things must be considered. Firstly, the
startup team would consist of a founder and a co-
founder. The founder is considered to be the brain of
the project, based on whose vision the whole product
will be built. Secondly, the team must consist of a
technical consultant who will be either the founder
or the co-founder who can analyze the technical
feasibility of the vision of the founder at hand.
Based on this two-man team, the project will start.
5.1 Phase 1
The first phase is based on the objective of problem
and product identification. Based on the outline of
the main problem the founder has focused on, the
problem has to be broken down to assess each
component of the problem and solutions, both
operational and technical, must be sought out. Next
the technical consultant must do a feasibility
analysis of the technical solutions at hand and
propose a basic estimation of the resource and time
required to build technical solutions to each sub-
problem.
Based on the estimation provided, the founder
and co-founder must both elicit and prioritize the list
of sub-problems and consider the sub-problems to be
available on the first release of the software product.
Finally, the founder and co-founder will set the
requirements for the MVP.
5.2 Phase 2
Next the required technical resources must be hired
based on the requirements of the MVP, and a
Requirement Engineering in Startups
211
detailed technical scope with functional and non-
functional requirements must be prepared by the
technical consultant of the project parallelly. During
this stage, the technical consultant will be
considered to be the head of RE and will be
responsible for all RE related processes. Once the
developers are hired, the technical consultant must
handover the MVP scope document to the developer
with an estimated deadline. The technical consultant
(who is also the RE head) will oversee the
development of the MVP and make sure that the
MVP is released on time.
5.3 Phase 3
Once the MVP is released, stage 3 starts, whereby
the RE head must take analyze the current status of
the product based on market feedback from the
customers. The RE head must take into account the
bugs found in the initial release by performing
testing as well as the imminent requirements based
on customer feedback. Based on the bugs and the
requirements, the RE head has to again to elicit and
prioritize the requirements and bug fixes and create
and lock the scope for at least 3-5 releases of the
product and push it into development.
5.4 Phase 4
Once the development is ongoing, the technical
consultant must hire a dedicated tester for the team
and gather all the bugs in the system. As the RE
head, the technical consultant then must elicit and
prioritize the bugs found in the system by the
dedicated tester and push these bug fixes into the
next releases.
Additionally, the RE head must appoint a
dedicated Requirement Analyst who will be
responsible in During phase 4, no new functionality
development must be pushed into the locked scope
from phase 3 but high priority bug fixes must be
prioritized and put into the scope of work. Phase 4
will end once all the releases planned in phase 3 is
completed.
5.5 Phase 5
Once phase 4 has ended, phase 5 will start by
analyzing the market value of the product by the RE
head. This can be done through the valuation
considered under the Software value pyramid and
the SIG maintainability Model. (de Groot, Nugroho,
Back, & Visser, 2012) This can help the team,
especially the RE head as well as the founder
understand the viability of the requirements that are
in pipeline as well as the manintaibility of the
project. This in turn will help the organization move
in the right direction and also give visibility of the
current and ensuing probable progress and of the
software, helping build team confidence on the
product itself.
Moveover, a dedicated requirement engineer
should be hired under the RE head, who will
facilitate the analysis of the RE and project metrics
as well as take handover of all the exisiting RE
processes performed by the RE head. However, the
final elicitation and prioritization of the
requirements must be approved by the existing RE
head.
5.6 Phase 6
Once the metrics are put into place and the team has
confidence on the product, customer confidence
needs to be achieved. The role of a customer
excellence officer has to be assigned to the dedicated
requirement engineer who would know about the
existing bugs of the system, the ins and outs of the
product as well as look at the product from the
perspective of the customer/end-user. The customer
excellence officer can list down the requirements as
well as the bugs from the customer perspective, then
elicit and prioritize the requirements and bug fixes
required and push it to the RE lead for final
prioritization and the RE lead will push the
prioritized list to the development team for release.
This will in turn help build the confidence on the
product from a customer’s point of view and help
grow a steady and loyal customer base.
5.7 Phase 7
With both the team and the customers having
confidence on the product, continuous deployment
must be achieved. In order to do so, the RE
processes must be automated using tools like
Modern Requirements or Jama Software which can
be integrated with project management tools like
JIRA for elicitation, prioritization and pushing
requirements to the developers seamless to ensure
continuous development of the product. The
dedicated requirement engineer will, under this
phase, become the RE lead and implement the tools
required for the automation of the RE management.
A summary of the entire framework is given below
in Table 2.
ICSOFT 2021 - 16th International Conference on Software Technologies
212
Table 2: Framework Summary.
P# Important Actions Achievements
1 Breakdown of the problem
into subproblems,
brainstorm to find the
solution to the
subproblems, resource and
timeline estimation for
development of solution
for each subproblem and
based on the estimation,
elicit and prioritize
requirements for the MVP.
Technical
Feasibility study of
the MVP with high
level scope.
2 Hire resources based on
the estimations, create low
level technical scope and
start developing the
project.
Technical consultant
will become RE
head, low level
scope for MVP and
delivery of MVP.
3 Take market feedback of
MVP and prepare and lock
scope for the next 3-5
releases.
Release processes
are improved and
scope ready and
locked for next 3-5
releases.
4
Hire dedicated tester to
analyze bug fixes required
and elicit and prioritize
these bug fixes under the
planned releases.
Better understanding
of technical issues in
the system and
product stability
increases.
5 Implement metrics on
product to understand
maintainability and ROI
while hiring a dedicated
requirement engineer.
Team has visibility
on the market
viability on the
product, which in
turn gives the team
confidence and
direction.
6 Role of customer
excellence officer is given
to the dedicated
requirement engineer who
will continuously collect
market feedback from
customers and based on
feedback, new
requirements and bug fixes
are put into scope.
Ensure higher
customer
satisfaction.
7 Automate requirement
management through tools
and push requirements
continually for
development.
Continuous
development and
deployment are
achieved.
The state of requirement engineering practices in
startups has still been largely unexplored. In the
proposed framework the whole process is divided
into 7 phases and these combinations and
achievements are designed in such way that it could
be easily adapted by any startups despite having
resource shortages. The framework considered the
common limitations faced by startups in the
requirement engineering process.
6 CONCLUSION
As much as we would like to propose a framework
for startups at every stage, our proposed model will
only help the startups which are still in their early
stages. The primary limitation of the proposed
model is the startup's maturity level. Mature startups
beyond the development phase cannot really use it.
They may also need to adapt the framework model
based on their targeted industry.
The study concludes the inclusion of RE
practices in the startup ecosystem promotes
customer loyalty, overall revenue whereas reducing
rework which translates to project cost reduction.
Later we will evolve the framework in such a way
that it can be adapted by mature startups.
Furthermore, future prospects of requirement
management can be looked into through research
and development and machine learning algorithms
can be implemented for automated requirement
elicitation (Darwish, N. R., Mohamed, A. A., &
Abdelghany, A. S., 2016).
Since proper implementation of requirements
engineering processes help in ensuring innovation
diffusion easily for the products (Autio, Nambisan,
Thomas, & Wright, 2018) and can help encourage
the team into exploring further innovations
regarding their products (Rajapathirana & Hui,
2018). So, in our future work we will work on more
unexplored requirements engineering practices and
case studies in startups around the world.
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