Mowing into the unknown - A Study of How a Newly Established FEI Department Within a Structured and Linear Environment Can Manage Venture Prioritisation

Abstract: In order to stay ahead of competition, pursuing radical innovation is highly important for companies with mature technology. The front end is the first phase of developing radical innovation. The front end is characterised by high uncertainty and a different working process compared to that of incremental innovation. Large mature product companies with mature technology pursuing radical innovation can do so by establishing a FEI department. In order for a newly established FEI department to choose the right ideas for radical innovation, they need to Figure out how an appropriate prioritisation method for their environment can be designed. The purpose of the study is to create a framework describing a prioritisation method for newly established FEI departments within large product companies with mature technology. A single case study was carried out using an abductive approach and a qualitative research strategy. A pre-study was carried out including both a literature review and interviews. The empirical findings were coded through a comparative analysis with the theoretical framework, created in the main literature study. This led to a summary of findings being created. The summary of findings and the prioritisation models, presented in the literature review, were then analysed in order for a recommended prioritisation method to be described. This study contributes with a categorisation of front end theory using: Process, Uncertainty, Decision, Leadership and Teams. Through a comparative analysis, characteristics of newly established FEI departments at large product companies with mature technology were identified; this is the second contribution of this study. The final contribution is the recommended method, which includes the Hierarchical fuzzy TOPSIS model. The method will give the FEI department the initial structure and planning needed in order for the employees to feel comfortable with a more chaotic work process. It includes fuzzy linguistic that will help them handle uncertainty and improve their communication. Through better communication opportunistic behaviour will be reduced. Defining criteria and sub-criteria in the prioritisation model will increase awareness and the understanding of strategic value, feasibility and attractiveness. The method is designed to be simple to use in order to prevent old behaviour to come back.