According to the BBC, some big companies are forming small internal units to act more like startups:

Kassir Hussain, director of connected homes at British Gas, says Hive was founded on the “lean start-up principles” espoused by Eric Ries in his book The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses.

In practice, this means developing a product or service step by step, constantly consulting with customers so that money isn’t wasted on features they will not want. Each stage of development is tested – so-called “validated learning” – so that future success is almost built in to the process. Normal management structures don’t apply.

“We believe that job titles can actually prevent co-operation and teamwork,” says Mr Hussain. “It’s about encouraging an entrepreneurial mentality throughout the business. Hive’s product development is in days and weeks, not months and years.”

Hive’s Active Heating system, which lets you remotely control your home heating via smartphone, now has about 80,000 customers. But the service could not have come about from within British Gas’s complex corporate structure, Mr Hussain believes.

“Nearly three-quarters of Hive’s business is staffed by people with digital backgrounds from outside the group,” he says.

I see a few lessons here. First, the group has outsiders. Second, it is protected from the internal bureaucracy. Third, it has permission to take risks, which implies permission to fail. But it tries to limit the size of failures by staying in constant touch with customers. Not mentioned here is the idea that it has adequate resources, but that must be the case.

The other important question is how you would take this concept that seems to work well with consumer products and apply it to other sectors like, say, services or government.