Lean Start-up in Established Companies: Potentials and Challenges

Abstract

Lean start-up is an emergent perspective on how entrepreneurs can bring new products and services to the market. This approach challenges the dominant role of lengthy business plans, linear product development processes, and seeking complete overview of the potential of the new products/services before market launch. Instead it suggests that start-ups could benefit from a ‘minimum-viable product’ approach where products and services are launched when they contain critical features. The emphasis in the lean start-up approach is on business models rather than the elaborate business plan. This chapter is based on the in-depth case studies from three established companies that have all sought to employ a minimum-viable product approach to developing and launching new products. The data will consist of rich interview data from the three companies and observations from various events at the companies (strategy meetings, development workshops etc.). The aim is to shed light on the implications for companies that seek to employ lean start-up. These implications will be aimed at aspects like innovation management, organizational structure, customer relations etc.