Discover Lean Innovation Management and learn how to introduce innovation management in your company – WAU
Lean Innovation Management is a management methodology that aims to introduce the innovation model, common in startups, for larger companies.
Lean Innovation Management came to help solve one of the main problems of large companies that have little participation in the innovation of their markets.
Innovation in the most consolidated companies is often is restricted by the large number of processes and difficulties in getting approvals for new ideas. And what was supposed to be a breeding ground for creating and implementing new concepts, since it has more resources than small businesses, ends up becoming a place where creativity is not valued.
In the meantime, hundreds of new companies, startups or not, are managing to reshape their processes and change their culture, becoming most competitive in the market when it comes to launching new products and innovation in its niche market.
A great ally is Lean Innovation Management, which seeks to bring lean innovation and the concepts of startups to large companies.
Learn more about this model that aims to innovate through rapid learning and risk reduction, in this article.
What is Lean Innovation Management?
Lean Innovation Management, which can be translated as lean innovation, is an innovation management model aimed at companies larger than startups. His theory was published by Steve Blank in 2015, the creator of the concept of lean startups.
One of the main characteristics of lean startups is the ease of testing your business model as cheaply as possible, generating the minimum of errors.
Because they have different challenges, simple adherence to the concept of lean startups in medium and large companies it did not bring good results. The management of innovation in these places needed to be different.
Why use Lean Innovation Management?
In a constantly changing market, the processes implemented in large companies, however beneficial they may be, can be an locking agent for innovations.
The company’s operations management manages to have control, avoid waste, increase resources, etc. ensuring improved efficiency in all sectors.
But fortunately, a company cannot live solely on process management. To remain competitive in the market, you must also have a culture focused on the development of new ideas, which need to be easily tested without raising costs.
Some companies, with an eye on this need, created innovation ecosystems in partnerships with the private and public sector, such as universities. Others saw in Lean Innovation Management, the ideal model to innovate in your market while maintaining its operational management.
How does Lean Innovation Management work?
Lean Innovation Management uses two complementary concepts to work. The first is the concept of Ambidextrous Organization, created by Stanford University professors Charles O’Reilly and Michael Tushman.
This concept is ideal for those who need to keep their processes validated working while testing new ideas and new business, as if they were two different companies working together.
The second theory is that of Three Horizons of Innovation, cited in the book “The Alchemy of Growth” by Mehrdad Bagai, Stephen Coley and David White and reformulated in “Innovation Tournaments: Creating and Selecting Exceptional Opportunities”, by Christian Terwiesch and Karl Ulrich, still without translation into London.
This theory divides companies into three horizons: horizon 1, are mature businesses, while horizon 2 is the fastest growing and horizon 3 belongs to emerging companies. Each horizon has its own challenges to be overcome.
But these two concepts they just illustrated how companies should treat innovation. For this reason, Lean Innovation Management combined these theories with the tools “Hands on”, which may be the Business Model Canvas, the Customer Development or the Agile methodology, which were already part of the Lean Startup concept.
In short, Lean Innovation Management uses Lean Startup added to the Three Horizons of Innovation to create ambidextrous companies.
What are the challenges?
The biggest challenge for established companies is to face new companies that have their DNA focused on innovation. For that, Lean Innovation Management can be a great ally, but that needs to be accepted by all impacted sectors so that it can actually work.
The change in culture, especially in companies with many years in the market and with solid results, causes numerous impacts, often unpleasant. That is why, you need to have people who are really interested maintaining innovation management.
How to apply Lean Innovation Management?
Companies wishing to join Lean Innovation Management need, in addition to desire for change, have a size of employees in such a way that it can separate at least one employee just to implement lean management exclusively.
Have one dedicated team implementation of this new model, if possible, it is even better, as it contributes to the model being implemented more quickly and correctly, in addition to decrease resistances that may arise.
In addition, any another experience on previous strategic planning and management also contributes to applying lean innovation in companies, as barriers to implementing Lean Innovation Management end up being lower.
The phases for the implementation of Lean Innovation Management are usually divided into three: project implementation, dissemination and consolidation.
The key elements for implementation, in summary, are as follows:
- human Resources: at least one dedicated employee;
- Law Suit: not only for implementation, but also for review and feedback;
- documentation: documented planning.
Lean Innovation Management is an excellent model to stay current in the competitive market, because facilitates quick learning, minimizes risks and can bring numerous benefits for business management.
An good way to start thinking on how to implement Lean Innovation Management in your company is to make a matrix of effort x impact, which will help prioritize tasks in order to maximize results.
To help, we’ve separated this article that will explain how to make the matrix, good reading!