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In early January 2019, the founders of STMNT (pronounced "statement") a Canadian peer-to-peer clothing rental platform, were reviewing the performance of their venture. The sisters had formally launched STMNT in November 2018 and wondered whether they had implemented the right business model for their venture or if they needed to pivot. The rental transaction process was taking too long for customers and required too much of the founders' time to make scaling up a possibility. The sisters needed to take stock of their progress to date and chart the next steps for their venture.

This article examines the "multiunit back-end problem" of open innovation based on a case study of the Banque Populaire Caisse d'Epargne (BPCE) Group, a large French bank with two business units. The multiunit back-end problem occurs when internal business units who consider themselves rivals are asked to collaborate for the success of an open innovation initiative. BPCE failed several times to use external startups to accelerate its digital transformation due to rivalry between its internal business units. This article presents guidelines that firms with rival business units can use to align their front-end and back-end when working with startups to accelerate their digital transformation program.

In 2007, Braeden Ruud was a sophomore in high school when the United States faced one of its worst pet food contaminations in history. In an effort to protect the family pets, his mom, Mary Ann, began preparing home-cooked pet food using ingredients sourced from the family ranch. It wasn't long after that family and friends began requesting this farm-to-table pet food for their own pets. Braeden entered the Master in Science in Entrepreneurial Leadership program at Babson College in 2015 with the goal of graduating with a full-fledged business. He founded Raised Right, a human-grade pet food company. Over the course of five years, Braeden worked on building Raised Right, launching its first product in 2018, and scaling to over 750 retail locations as of February 2020. With so much success, Braeden was soon challenged with sustaining growth and building Raised Right's market presence in a highly competitive environment.

In early 2020, the co-founders of DOUGH T.O, an entrepreneurial venture launched in Toronto, Canada, were evaluating several expansion options. Since its founding in 2017, the brand had expanded its edible cookie dough business from its original pop-up model to one that included online sales and a catering business. The co-founders were considering five options: opening a permanent flagship location, offering franchise rights, distributing product through grocery stores, entering into strategic partnerships, or pursuing a unique, creative option by “thinking outside the box.” Regardless of the decision they pursued, the co-founders wanted to pave the way for their company to become a sustainable business.

In April 2018, the two co-founders of SafeMotos, a motorcycle taxi service in Rwanda, in Central Africa, were examining their expansion plan. Their start-up had not yet become profitable, but they were already making plans to expand into the neighbouring Democratic Republic of the Congo. They were also driven by the larger goals of replicating their tried and tested growth model in other cities on the African continent and moving quickly into the underserved city transportation markets of Asia and the Far East. As they reviewed their four-year experience of working in Africa, they were facing a singular question: What should be the roadmap for scaling up their ride hailing service?

Onward Technologies Limited was an engineering services outsourcing company based in India with divisions and branch offices around the world. Founded in 1991, the company was an early entrant in the services outsourcing sector and had performed moderately well. Over time, the company had moved from providing banking services support to providing engineering services. Competitors, however, showed greater growth, and new companies were commanding an increasing share of the market. In 2006, Onward Technologies Limited underwent a significant restructuring process and sharply reduced its clientele with the goal of establishing a long-term but narrow focus. Still, the company had not been growing at the rate envisioned by its founder. It had secured a significant and prestigious order from a well-known US company and was wondering which path to pursue. Should the company continue doing business in the developed economies and working with new Fortune 500 companies, or should it pursue new opportunities in the emerging Asian markets.

In April 2018, the two co-founders of SafeMotos, a motorcycle taxi service in Rwanda, in Central Africa, were examining their expansion plan. Their start-up had not yet become profitable, but they were already making plans to expand into the neighbouring Democratic Republic of the Congo. They were also driven by the larger goals of replicating their tried and tested growth model in other cities on the African continent and moving quickly into the underserved city transportation markets of Asia and the Far East. As they reviewed their four-year experience of working in Africa, they were facing a singular question: What should be the roadmap for scaling up their ride hailing service?

In early 2020, the founder and operator of Ramon Film Productions—known familiarly as Wakaliwood—needed to manage the tensions of operating as an informal movie production company in a slum in Uganda's capital of Kampala. Although Ramon Film Productions had received much international acclaim for its ultra-low-budget action movies, the company was under increasing pressure from the local authorities to formalize, by obtaining new operating licences and complying with stricter regulations. The founder needed to weigh the costs and benefits of continuing to operate informally, compared with formalizing his business.

In February 2017, the chief executive officer of Conexus Credit Union, a local credit union headquartered in Regina, Saskatchewan, was preparing to meet with the board of directors. He would be pitching his plan to build, staff, and operate a start-up venture program to be called the Cultivator. The Cultivator would create a stream of new regional high-technology businesses that would be well-placed, both for Conexus to serve and its members and the wider community to benefit from. The real question was how to operationalize this model: Should Conexus use the template of existing for-profit start-up accelerator programs to launch companies quickly and optimally to fail or scale? Or considering its community mandate, should Conexus take a different route?

AfreecaTV Co. Ltd. (AfreecaTV) was a pioneer in the business of live video streaming, as well as in using voluntary donations as a monetization strategy. In August 2020, AfreecaTV’s co-chief executive officer (CEO) and its largest shareholder, was facing a strategic crossroads. After battling global live-streaming giant and Amazon subsidiary Twitch to a standstill in AfreecaTV’s domestic Korean market, the co-CEO had to decide whether to pursue several risky strategic initiatives, including moving into foreign markets like the United States, further developing the company’s video-on-demand service, expanding advertising on the platform, and generating new, proprietary content (e.g., the company’s own K-pop group). He wondered which would be the best direction to take AfreecaTV in the coming years.

In February 2017, the chief executive officer of Conexus Credit Union, a local credit union headquartered in Regina, Saskatchewan, was preparing to meet with the board of directors. He would be pitching his plan to build, staff, and operate a start-up venture program to be called the Cultivator. The Cultivator would create a stream of new regional high-technology businesses that would be well-placed, both for Conexus to serve and its members and the wider community to benefit from. The real question was how to operationalize this model: Should Conexus use the template of existing for-profit start-up accelerator programs to launch companies quickly and optimally to fail or scale? Or considering its community mandate, should Conexus take a different route?

Ken Edwards, founder and chief executive officer (CEO) of Tristar Hotel Group (Tristar), was reviewing the financial performance for his bustling hotel portfolio. In the spirit of the risk-taking and experimental mindset that Edwards brought to Tristar, adopting automated robotic service delivery was top of his mind. Earlier in the year, he had authorized a pilot project to evaluate the costs and benefits of using a robot named ARCHIE; now he needed to determine whether to proceed and implement ARCHIE for room service delivery on a full-scale basis at one of Tristar’s hotel properties.

On a cold Monday morning in January 2018, the founder and chief executive officer of dcs plus was sitting in a taxi on his way to catch a plane to Dubai, United Arab Emirates. In Dubai, he would be visiting the Middle East subsidiary of his company, a Romanian technology start-up focused on business-critical enterprise software for the travel industry. The one-year-old subsidiary, which was responsible for marketing, sales, and customer support in the Middle East region, had experienced performance problems and managerial issues since the start, leading to major changes in the local management team. The Romanian company was planning to open two new subsidiaries in São Paulo, Brazil and in Singapore, so it was important to avoid similar problems to those incurred in Dubai. The founder was reflecting on the dcs plus approach to internationalization for the overall organization, as well as how to manage a subsidiary.

Twiga is a leading agricultural produce supplier in Kenya offering services to mostly informal retailers. Under Peter Njonjo, a co-founder and Twiga's new CEO, the company is considering multiple options for expanding its business, including offering packaged foods and services like insurance. Njonjo must also decide the ideal team and organizational structure for supporting Twiga's growth plans.

This case describes the evolution of MHFC, a player in the Indian informal housing sector. As a new entrant offering micro home loans to the financially excluded lower income families of urban India in 2008, MHFC had grown to an annual number of 18,000 loans worth INR 8 billion with an average ticket size of INR 0.43 million (USD 6,000). With a 53.5% purchasable equity stake in MHFC, Chopra and his team were left with certain decisions to make. Should the company on-board a new social investor? Or should it bring on the more readily available and capital-rich private equity investors interested in the lucrative prospects of the microfinance housing sector?

To achieve faster organic growth, firms need to change their prevailing narrative about innovation from growth denying to growth enabling. This requires changing the system through which the work of innovation gets done. This article describes the work systems model of organizational change and shows how a leadership team can select the most influential elements of the system to make a desired narrative a reality. Four elements of the work system are especially effective at encouraging a growth-affirming narrative: leadership commitment to innovation talent, prudent risk-taking, customer-centric innovation, and aligning metrics and incentives.

Iloof Technology Co. Ltd. was a Chinese start-up high-technology company at the forefront of the smart water bottle market, one of the newest sectors in the reusable water bottle industry. Smart bottles or cups, also known as interactive water bottles, were technologically advanced devices that had wireless communication capabilities to connect with electronic devices, such as smart phones. They also helped record and optimize the user’s water intake and develop healthy drinking habits. In 2016, after two years of research and development, Iloof Technology Co. Ltd. released its first smart water cup, the HeyDo S1, to great success. However, after three quarters of growth, sales slowed and the company’s founder considered expanding to traditional or offline channels to sustain growth. Could the company operate in both online and offline markets? What potential challenges would the company face in its sales channel expansion?

In early 2020, a recent graduate from a prestigious masters of business administration program was working as a financial accountant for a renowned private equity firm in Glasgow, Scotland. For her father’s retirement, she was considering a gift from Highland Malt Inc.. The company’s Scotch whisky was offered in a limited quantity and promoted as an investment opportunity. Unlike ordinary bottled whiskies, Highland Malt Inc. sold this new line solely by the barrel. Collectors had to pay the full amount of CA$10,000 upfront, but could request a full refund within 180 days if unsatisfied with the product. The refund period allowed the collector to visit the distillery and inspect the purchase to ensure it met all expectations. The accountant was wondering if she should proceed with her plan to buy a barrel of Highland whisky as an investment and collector’s item for her father.