Large corporations must become far more agile in implementing new products and new business models. The pace of technology change, the blurring of industry boundaries, and the agility and resources of startups in almost every industry segment demand it.
Many companies have begun to adopt the principles of Lean startup but have had limited success in doing so. The principles seem intuitive and straightforward, but there are challenges to using them inside an existing company, especially in a manufacturing environment. The biggest requirements, beyond those espoused for startups, are:
- Developing a business model that fits the assets and constraints of the corporation, in addition to achieving product-market fit.
- Managing the conflicts that inevitably arise with the "performance engine," that is, with the current operating business; every business that has operated over decades has well-established ways of doing things that may not fit the required pace of a new venture.
- Managing the risk of investing in a venture in a new area for a company used to investing where the risks are more clearly understood.
- Conducting Lean iterate-and-test cycles with physical goods as well as software offerings (for manufacturing firms)
This book describes a systematic approach to implementing Lean Startup in large organizations. It builds on the principles of Lean startup and adds additional practices required to manage the realities of the corporate context. This book essentially describes how it is done. It is based on elements of practice developed by leading academics and practitioners in the corporate world, and it brings together the pieces in a practical and integrated way. It includes a case study of the approach in practice at Goodyear Tire & Rubber company, which has used it to launch businesses on three continents.
The model for Lean startup in Large organizations is organized around the six more or less distinct stages required to move from a new concept to a new business inside a large organization.
Author(s): James A. Euchner
Publisher: Routledge
Year: 2022
Language: English
Pages: 136
City: London
Cover
Endorsement Page
Half Title
Title Page
Copyright Page
Dedication
Table of Contents
Preface: Why This Book
Acknowledgments
About the Author
Chapter 1 Introduction
Chapter 2 Lean Startup in a Nutshell: What Every Executive Should Know about Lean Startup
The First Three Principles: How to Learn
Lean Learning Loops
Minimum Viable Product
Pivot or Persist
The Integrative Principle: Innovation Accounting
The Last Three Principles: What to Learn
The Value Hypothesis
The Business Model Hypothesis
The Growth Hypothesis
Chapter 3 What’s Different in Large Organizations: Why Lean Startup Is Not Enough
Yes … And
1. The Need to Contain the Chaos
2. The Need to Manage Disruptions to Operations
3. The Need for Strategic Alignment
4. The Need to Introduce a New Business Model
5. The Need to Protect the NewCo
6. The Need to Bet to Win
Summary
Chapter 4 Containing the Chaos: An Innovation Stage-Gate
Lean Learning Loops and a Perception of Chaos
The Innovation Stage-Gate
Staffing the Innovation Stage-Gate
Key Insights
Chapter 5 Working with the Performance Engine: Graduated Engagement
The Problem: Where You Stand Depends on Where You Sit
Contracts 101
The “Other” Category in Procurement
The Root Causes of Resistance
The Role of Game Theory
The Samaritan Game
The Watchdog Game
Summary: Managing Resistance to Innovation
Key Insights
Chapter 6 Achieving Strategic Alignment: Asset-Based Opportunity Spaces
Why Us?
Asset-Based Opportunity Spaces
John Rossman on Innovation the Amazon Way
Key Insights
Chapter 7 Introducing a New Business Model: The Business Model Pyramid
The Problem: Business Model Inertia
What Is a Business Model?
How Do You Do Business Model Innovation?
1. Start with a Clear Understanding of Customer Value
2. Identify Business Model Options
3. Study Business Model Risks Broadly
4. Model the Risks to the Core Business
5. Reduce the Risks Using Business Experiments
6. Incubate the Business at Small Scale
Key Insights
Chapter 8 Organizing for Growth: The Separate-but-Connected Model
The Separate-but-Connected Organizational Model for New Ventures
Overcoming Resistance
Vijay Govindarajan on Making Strategic Innovation Work
Key Insights
Chapter 9 Making the Bet to Win: Ambidextrous Leadership
Michael Tushman on Ambidextrous Leadership
Key Insights
Chapter 10 Yes … And: Making Lean Startup Work in Large Organizations
Complementary Practices for Lean Startup in Large Organizations
1. Innovation Stage-Gates: Reconciling Lean Learning Loops with the Need to Demonstrate Discipline
2. Graduated Engagement: Developing MVPs in the Context of the Performance Engine
3. Opportunity Spaces: The Value Hypothesis and the Need to Create Strategic Alignment
4. The Business Model Pyramid: The Business Model Hypothesis and the Need to Manage Internal Risks
5. Organizing for Growth: The Growth Hypothesis and the Separate-but-Connected Organizational Model
6. Making the Bet to Win: Ambidextrous Leadership
Conclusion
References
Index
