Strategizing software development: strategic management of internet service development

This paper explores a theoretical linkage between software engineering and strategic management. Software engineering is now faced with two dynamic innovation streams: technological innovation and market innovation. Harshly shook by rapid technological development and highly volatile market environments, today's software development is under the constant necessity for swift and reliable development practices and market launch in appropriate timing. In short, software development has to be more and more strategic. Based on a brief review of the existing strategic management frameworks, the paper suggests that Eisenhardt's framework of 'Strategy as Simple Rules' is highly applicable to software development practices. Through a short case study of internet service development in Japan, the paper also suggests that dual roles of beta versions, as a product and media, would play a critical role in making strategic decisions in internet service development.