Reducing Ambiguity in the Fuzzy Front End for Internal Corporate Ventures

Abstract: Innovation is a widely known concept which has received increased importance in today's organizations. Attention has especially been directed to the initial phases of the innovation process, commonly referred to as the Fuzzy Front End (FFE). Managing the FFE effectively, has become essential in the development of innovative products, since it can reduce cycle times and costs related to product development. However, due to the fuzzy and insecure nature of this phase, it is hard for companies to successful manage the FFE. Another emerging trend, is that of many companies seeking inspiration from external startups to find new ways to be innovative. For example, corporate venturing programs have been established to drive projects like startups, internal corporate ventures (ICVs). Nonetheless, the culture, climate and context of an external startup are different from the ones of an internal corporate venture, which has an impact on the possibility of an ICV to act like a startup. The purpose of this study is to increase the understanding for how to decrease ambiguity in the FFE for ICV. As this research has been conducted as a case study, this master’s thesis furthermore aims to provide recommendations to the case organization - the Global High-Tech Company (GHTC). The theoretical background has been used to construct a conceptual framework, which constitutes the basis for the empirical data collection as well as the data analysis. The data collection consisted of a case study and a benchmarking study. The findings from these have been compared to contrast similarities and differences between the two startup-like companies, when it comes to enablers and challenges in the FFE. From the analysis, eight key enablers have been identified, which could reduce the fuzziness for ICVs in the FFE, namely: Usage of partnership, Usage of networking, Usage of pivoting to develop and refine ideas, Engagement of customers in the product development, Validation with others than customers, Usage of a proof of concept, A team with all necessary competences, An appropriate degree of formalization and Clearly defined goals.