Validated Innovation Process: A Framework for Managing Business Development Process Based on a Learning-Oriented Approach

The innovation process typically comprises several stages with specific objectives and a logical sequence to mitigate uncertainties inherent to stage-specific challenges. Traditional models, however, often fall short for established firms aiming to foster innovation amid significant uncertainty. This paper introduces the Validated Innovation Process, designed to facilitate the conception and development of ventures in highly regulated and high-risk environments, emphasizing validation through experiential learning. It integrates traditional business, product, and service development methods with lean innovation perspectives, incorporating abductive reasoning and effectuation principles. This hybrid approach was developed over an 18-month research initiative, grounded in Design Science Research and addressing real-world needs in a large-scale health insurance company. The resulting structured process comprises three maturity levels, progressing from abstract concepts to validated and robust business models. The findings demonstrate strong alignment with practical applications, providing a clear framework for new venture development, effective team communication, phase integration, and the maturation of innovative outcomes. This process effectively addresses the specific challenges of launching new ventures amid high uncertainty within a regulated corporate environment.