Ruth Ann S. Basnillo

SYSANAL

O0A

Philip Greenspun

Cofounder, ArsDigita

            Philip Greenspun founded ArsDigita in 1997 together with some of his friends.

            ArsDigita was started after big companies started to like the system it offered initially as a free open source software. These companies demanded for 10 extra features which will need many programmers to do support and service.

            The particular problem this startup encountered was that Greenspun’s computer programmers don’t listen to what the customers want. Instead, they do stuffs that they like but the customers don’t want. They also had difficulty hiring great businesspeople because it is very typical that these businesspeople don’t work with companies where everything is constrained. But, as soon as they got $38 million from venture capitalists, conflict arose between the new investors and the cofounders until even Philip Greenspun and some of his cofounders were fired. While these new investors were taking control of the company, lots of money were starting got lost without them noticing it because of their inaccurate accounting.

            People used the service offered by ArsDigita because they need a software toolkit where they could build an Internet application or an online community that has more custom features. Moreover, they need somebody who could help them out with the free open source software ArsDigita offered.

            It had an impact in the history of the Internet in a way that it became an embodiment of a new model for software consulting. Moreover, it offered the idea for software toolkit that’s for building Internet application and an online community.

            What’s unique about this startup was that it tried to help each programmer develop an independent, professional reputation like any other professions wherein they could sit down face to face with the customers, finding out what they need, coming up with some suggestions or changes, and making it happen. Moreover, the company was much faster unlike others developing software because they could shortcut the long year development cycle like a 2-year development cycle down to maybe 2 months. This service offered by startup was something that was already offered and done before.

            The very popular example of the existing system before ArsDigita was SAP, which is a popular toolkit for building corporate accounting systems.

            If I were in the cofounder’s shoes, I would have also sold my company to the new investors who still wanted to take control of it even though they really can’t, instead of pursuing the legal battle with them that will only cost me a lot of expenses. But then, I would have not let them degrade me by shutting me up whenever I would give my suggestions. I knew I had the very right to decide for my own company and I should fight for it. I would not let them take me for granted.

            The startup would have not been possible in a Third World Country because the startup has great programmers and a good founder that’s MIT-trained Computer Science nerd. But, it would have applications in a Third World Country because countries here already have businesses that need systems for Internet applications.

10 THINGS I DIDN”T KNOW:

1. After reading the case study, I learned that ArsDigita was a software consulting company developing software toolkits for Internet applications or online communities. Before, I thought that ArsDigita was still a photography site.
2. After reading the case study, I learned that programmers haven’t been professionals because they haven’t really cared about quality. Before, I thought that programming is a profession that’s always making quality codes for better systems.
3. After reading the case study, I learned that Accenture’s first name was Anderson Consulting wherein they always had the people who were executing the project itself. Before, I have heard Acccenture but I didn’t know that it was also a consulting company.
4. After reading the case study, I learned that Philip Greenspun and his friends founded ArsDigita. Before, I didn’t know that they are the ones who founded it but I have already heard about ArsDigita.
5. After reading the case study, I learned that ArsDigita was started out of the photography site- photo.net- Greenspun managed. Before, I thought that ArsDigita was initially a photography shop.
6. After reading the case study, I learned that Greenspun was fired by the new investors he took. Before, I didn’t know that a founder of a company could also be fired even though he had the majority of the shares in the company.
7. After reading the case study, I learned that a constrained company would have a hard time hiring great businesspeople. Before, I didn’t know about the meaning of constrained company.
8. After reading the case study, I learned that ArsDigita got very famous in the startup world because it became the embodiment of a new model for software consulting and as an all-too-colorful example of the dangers of venture capital. Before, I didn’t know anything about software consulting startups.
9. After reading the case study, I learned that the company had more women than any other firms. Before, I thought that this is very unusual.
10. After reading the case study, I learned that programmers are very unlikable people that’s very tough and unpleasant to manage. Before, I thought that being a programmer is cool.