  Product innovation is a risky activity, but when successful, it enables large
software companies accrue high profits and leapfrog the competition. Internal
startups have been promoted as one way to foster product innovation in large
companies, which allows them to innovate as startups do. However, internal
startups in large companies are challenging endeavours despite of the promised
benefits. How large software companies can leverage internal startups in
software product innovation is not fully understood due to the scarcity of the
relevant studies. Based on a conceptual framework that combines the elements
from the Lean startup approach and an internal corporate venturing model, we
conducted a case study of a large software company to examine how a new product
was developed through the internal startup effort and struggled to achieve the
desired outcomes set by the management. As a result, the conceptual framework
was further developed into a Lean startup-enabled new product development model
for large software companies.
