Beyond the lean startup : applying the lean startup methodology in established firms

Abstract

The lean startup methodology has been successfully applied to product development at startup companies, however many of its principles may also be of benefit to established firms. The purpose of this research was to explore the benefits of the lean startup methodology in established organizations. An electronic survey was administered to product managers and engineers at 44 established companies from diverse industries as well as posted on relevant online community groups. Follow-up up interviews were conducted with select respondents for further in-depth analysis. A total of 44 individuals completed the survey and 5 follow-up interviews were conducted. Overall, 11 respondents (25%) reported use of the lean startup methodology at established firms. Success with the methodology was reported in 6 cases. A high proportion of respondents (66%) were not familiar with the method; however, did report use of specific principles aligned with the lean startup method. Results also suggested that use of the methodology was more frequent in environments with high uncertainty and in companies less than 20 years old. Interview results corroborated survey findings and highlighted barriers to implementation. The findings of this work suggest that the lean startup methodology may provide benefit to established firms, however the application of this method in this context is in its infancy. Implications for best practice and directions for future research are also discussed.