Unlocking lean innovation at large

Abstract

Today’s market environment is characterized by increasing competition. This competition forces incumbents to innovate if they want to sustain their competitive advantage. Large enterprises start to adopt methodologies pioneered within the startup world, like the lean startup methodology, the innovate. The adoption of this methodology has proven to be difficult, and incumbents face a lack of control with regards to these ventures.

The practical objective of this thesis is to enable large enterprises to control and steer internal lean ventures (ventures following the lean startup methodology) effectively. The theoretical objective is to bridge the knowledge gap concerning the understanding of internal venturing and the application of the lean startup methodology in large enterprises.

To reach the objective, a case study within a large enterprise was conducted to answer the research question and reach the research objective. 16 in-depth interviews with relevant stakeholders were conducted to collect data. Finally, the results were validated through relevant literature and by comparison to the results of six additional interviews, conducted with two other large enterprises.

The study found that two elements influence the success of the venturing process: First, the implementation of the venturing process itself (Section 5.1). Especially the alignment and coordination of different stakeholders as well as the quality of the employed metrics. Secondly, a set of additional factors arising from the context in which the process is embedded (Section 5.2). This context is made up of the mindset and culture of the company, the organizational environment as well as the quality of its adoption of the lean startup methodology. The analysis of resulted in the identification of the five recommendations to improve internal lean venturing within large enterprises. Details can be found in Section 5.4.

In conclusion, implementing the lean startup methodology can help navigate this uncertainty surrounding innovation. This implementation requires reliable metrics, company-wide alignment, and the commitment to the methodology. Additional to the implementation, company and industry specific factors mediate the success of a venturing initiative. Large enterprises are advised to take an honest self-assessment and follow a searching and learning approach to iteratively and successfully optimize their process for maximal venturing success.