The Lean Enterprise: How Corporations Can Innovate Like Startups
#1 Amazon Bestseller in Lean ManagementDiscover the methods of lean startups that can revolutionize large organizations and their products
Even in a tough economic climate, the startup business community has found a way to create innovative, game-changing products in shockingly short timeframes. So why should larger, more established companies take notice? Because they have everything to gain when they examine and adopt the strategies, tools, and attitudes of these smaller competitors. The Lean Enterprise presents a groundbreaking design for revolutionizing larger organizations, one that draws on the ingenious tenets and practices espoused by the startup community. The guidelines in this book will help companies shake the lethargy, bureaucracy, and power struggles that plague large organizations and hold them back from true innovation.
At the heart of this resource is a comprehensive, practical approach based on methods, timetables, compensation, financial investment, and case studies that reveal the startup mentality. Respected thought leaders in lean startup methodologies, the authors cover successful enterprise development, development innovation labs, corporate venture arms, and acquisition and integration of startups.
- Essential reading for entrepreneurs, product managers, executives and directors in Forbes 2000 organizations, and board members
- Presents the tools and methodologies large businesses need to compete with a new generation of highly-empowered entrepreneurs
- Covers lean startup culture and principles and identifies the behaviors that arestunting growth at large enterprises
- Offers a comprehensive, practical approach for developing exciting products and services and opening vast new markets
Don't be mystified by the success of startups. Master the methods of this new generation of entrepreneurs and compete on a level playing field.
Chapter 1 Roadmap: Introducing the Lean Enterprise 1
Chapter 2 Strategy 19
Chapter 3 Corporate Structure 39
Chapter 4 Compensation 59
Chapter 5 Vision: The Innovation Thesis 71
Chapter 6 Lean Enterprise Process 83
Chapter 7 Experimental Methods 109
Chapter 8 Innovation Accounting 131
Chapter 9 Incubate Internally 149
Chapter 10 Acquire Early 167
Chapter 11 Invest When You Can’t Acquire 185
Chapter 12 Innovation Flow 201
About the Author 221
OBIE FERNANDEZ is an avid writer and technology
enthusiast. He works with Owens as the Co-Founder and CTO of
Javelin.com. Fernandez is also author of the best selling
technology book The Rails Way and the founder of multiple
successful companies, including one of the world’s best known
Ruby on Rails web design and development agencies,
“Owens and Fernandez show us how corporations can leverage
lean startup methods and drive innovation through internal
incubation, acqui-hires, and strategic investment. The Lean
Enterprise provides savvy insights on the organizational
structures, systems, and processes that will maximize success odds
with corporate entrepreneurship."
—Thomas Eisenmann, Harvard Business School, Howard H. Stevenson Professor of Business Administration
Opportunities and new markets appear unpredictably, and reacting to them quickly and aggressively is more important than ever for large enterprises. But the monolithic nature of the enterprise is often directly at odds with the notions of innovation. If large companies want to ensure they don’t become the next Blockbuster, Kodak or Yellow Pages, then they need a complete strategic overhaul.
In THE LEAN ENTERPRISE: How Corporations Can Innovate Like Startups (WILEY; March 2014; Hardcover & eBook; $40.00), authors, entrepreneurs, and Lean Startup experts Trevor Owens and Obie Fernandez present a groundbreaking design for revolutionizing larger organizations using the Lean Startup methodology—a scientific approach for building successful businesses developed and made popular by Eric Ries—to activate latent entrepreneurial talents that transform stodgy organizations into energetic factories of new and disruptive products and services. Owens and Fernandez have implemented their Lean Startup approach with such clients as Google, GE, ESPN, American Express and other major corporations.
“The book provides enterprise leaders with a detailed examination of the motivations that drive innovative individuals and the support structures they need to deliver breakthrough products and services within an enterprise context,” says Trevor Owens. “The guidelines in this book will help companies shake the lethargy, bureaucracy, and power struggles that hold them back from true innovation and instead will teach them how to compete and prosper by embracing the startup culture along with mastering the methods of the new generation of entrepreneurs.”
To help disruptive innovators build world-changing products and companies, the Lean Startup method requires a three-step scientific process: Build-Measure-Learn.
- Identify a problem that needs to be solved and build a minimum viable product (MVP)—a version of a new product that allows a startup team to collect the maximum amount of information with the least amount of effort—to provide a hypothetical solution to that problem.
- To test your hypothesis, present the MVP to the market and measure how customers respond, using both quantitative and qualitative metrics.
- Analyze the results and then learn whether to pivot and test a new hypothesis, or to persevere and continue building the business.
This feedback loop allows startups to cycle through an infinite number of hypotheses without committing excessive resources to any one idea before it is proven to be economically viable. This way a large enterprise can confidently expect a return on its investment and avoid the pitfalls of a stagnant business.
The Lean Enterprise points out examples of the many failures of corporate leadership to empower the very innovators within their walls. Spectacularly successful startups, such as Twitter, Pinterest, and Instagram were founded after corporate employees became fed up with the stifling nature of corporate bureaucracy and decided it was easier, and more profitable, to venture out on their own.
This book is essential reading for corporate executives, entrepreneurs, product managers, board members and anyone responsible for innovation or business growth. Every enterprise is harboring billion-dollar ideas within their own workforce, and The Lean Enterprise gives business leaders a scientifically proven method to access and seize potentially wildly lucrative opportunities.