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Unique challenges of innovation in enterprises
Summary
So many companies want to innovate in order to find new business models. But what happens when your company already has a business model? How do you disrupt your business model without destroying your business? Why would you even bother? Innovating inside an already successful company requires a new set of tools for overcoming internal resistance, not losing your current customer base, and knowing when to give up existing revenue streams. In this talk, Laura Klein, author of “Build Better Products” and “UX for Lean Startups” shares some tips for companies who want to find new business models before the old ones stop working.
Key Insights
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Big companies want innovation but often resist necessary internal organizational changes.
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Startups embrace uncertainty by 'jumping off the cliff,' whereas enterprises try to innovate mid-flight, making change more complex.
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Stakeholders with vested interests in the status quo, such as skilled employees and departments, commonly resist innovation efforts.
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Legal, HR, procurement, and marketing teams in large companies pose unique bureaucratic challenges to innovation not found in startups.
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Securing dedicated, well-managed funding tied to reasonable learning milestones is critical for sustaining innovation in enterprises.
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Executive-level buy-in, especially from the CEO, is essential to provide protection and resources for innovation efforts.
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Big companies crave certainty, often requesting unrealistic plans like Gantt charts, which don’t align with the exploratory nature of innovation.
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Involving all stakeholders early—including those likely to resist—reduces pushback and helps shape better solutions.
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Incentive structures in large organizations often conflict with the risk-taking and uncertainty inherent in innovation.
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Cultural resistance is rooted in people's identity and proven methods, not hatred for innovation; diplomacy and empathy are crucial.
Notable Quotes
"You are not the first person to try something like this, and they’re typically not looking forward to the next transformation."
"Nobody loves it when someone from another department shows up to tell people how to do their jobs better."
"Large companies demand certainty, but certainty is the opposite of innovation."
"Innovation is very much a team sport."
"Please don’t chop off that engine until the new one is built because you are not the only one on this plane."
"Lawyers, though nervous, can become some of the most reasonable people you deal with if you explain risks clearly."
"The incentive structure at a big company is set up to reward people for entirely different stuff than innovation requires."
"If you think innovation can happen without buy-in from the CEO, I would love to see that; I have not seen it work."
"People don’t actually hate innovation; they like their jobs and feel threatened by change."
"When things start to go bad, we’re going to pull the plug on it immediately—that helps build trust."
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