In this paper we present a set of factors contributing to develop software systems within universities. We discuss; how to initiate a university project that has a commercial value, how to develop a complete software solution and the requirements to implement the system. To find the answers, case study research methodology was used. According to the results, problem identification, team, interested community, development skills and resources and sustainability. Specific success and failure factors in each of those aspects are discussed according to the Sri Lankan context. Our findings will be especially useful for academics who would like to contribute useful software systems to the nation as outcomes of their research intelligence. These factors can also be used to propose sustainable systems development methodologies for entrepreneurial universities.