2023-07-15 16:43:22
Le Lean Management is a management approach centered on the continuous improvement of business processes. It aims to maximize value for customers while relying on a culture of continuous improvement and close collaboration between employees and managers to achieve this goal. Using techniques such as Value Added, Customer Value, and Value Stream, Lean Management helps companies maximize the use of their resources and achieve their business goals.
Le Big Data, meanwhile, refers to the massive and complex amount of data generated by businesses continuously. It may include information from different sources such as online transactions, geolocation data, social data, etc. Companies can use this data to make informed decisions, improve business processes and meet the needs of their customers.
Previous studies have shown that large companies find it difficult to adapt their economic model for various reasons: the complexity of the organization, the short-term rather than long-term vision, or even the competition between managers for the distribution Resource. Often these companies fail to make the leap due to their attachment to outdated business models, with the unfounded belief that they are always right. This resistance to change is a major challenge to quickly face the new competitive models of start-ups. Although the transformation of business models is often necessary, there are not yet clear best practices on the subject. Many companies have chosen to copy the agile behavior of start-ups, but this approach is doomed to failure because it does not take into account the fundamental differences between these two types of organizations, in terms of resources, effectiveness of decision-making, strategic issues, etc.
Numerous research studies have encouraged companies to adopt the “Lean” method in terms of product innovation, suggesting that large groups might adapt quickly and thus create value. Therefore, to remain competitive, these large companies must have a certain ease. In other words, they must be able to operate in their historical markets while innovating in new markets. Large enterprises should take advantage of their competitive advantages, such as the data accumulated through Big Data, by adapting the Lean method without blindly adopting it. They benefit from the amount of data in their possession and the resources to analyze it and make decisions accordingly.
It’s not regarding the amount of data, it’s regarding what you do with it. The fundamental question can then be formulated as follows: “How can companies exploit Big Data and adapt the Lean method to transform their business model in order to foster innovation and remain competitive with startups?”
Data analysts traditionally talk regarding 3V Big Data, in reference to its volume, variety and velocity. Each of these characteristics represents a learning challenge that can be addressed through elements of the Lean method:
The volume refers to the ever-increasing amount of data available. Volume can lead to confirmation bias due to the ease of confirmation of old beliefs due to the ever-increasing amount of data. The solution offered by the Lean method is to use data analysis not to arrive at conclusions, but rather to formulate hypotheses which must then be tested through experimentation.
The variety is due to the fact that companies now have access to data from very different sources. While promising, the variety means increased complexity of the data and its analysis, which makes it more difficult to formulate observations for decision-making. The Lean method proposes the introduction of a new concept, “accounting” innovation. It requires regular reporting on the progress of an innovative project, with the possibility of stopping, continuing or changing direction at any time. The advantage of this method is that it facilitates access to feedback throughout the process.
The velocity refers to the real-time receipt of data by companies. The richness and speed of data suggests an increased ability to predict and can give the impression of being in control of the future. The solution proposed by the Lean method consists of including a “build-measure-learn” loop in the innovation process to allow continuous incrementation. Thus, the risk is minimized because each innovation is incremental in nature. Managers may have the illusion of being in control, but they cannot take big risks that might haunt them in the event of unforeseen events.
However, it is important to note that the implementation of Lean Management and Big Data requires a thorough understanding of these two approaches and their practical applications. Companies must also invest in the technologies and skills needed to collect, store, analyze and use data effectively.
As the venture capital industry booms and investments in startups are at an all-time high, large companies are under increasing pressure to maintain their leadership position in the market. Some of them have adopted the lean method recklessly, often with disappointing results. In short, a start-up is not a miniaturized version of a large company, and a large company is not an expanded version of a start-up. Therefore, large companies should adapt the Lean method rather than follow it blindly. They should harness the benefits of Big Data and combine them with their adaptation of the Lean method to adjust their business model and innovate successfully.
Author: Adil BENKADDOUR / Master 2 Electronic Commerce, Unistra/Edge, Casablanca, Morocco
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