Had you heard of agentic AI in 2023? Did you guess that retail media networks would grow to a $50B+ industry in 2020? A quick look around shows how unpredictable the experience landscape is, how quickly things change, and why agility is critical.

Fifty-nine percent of CMOs project that within five years, more than half their revenue will come from products or services that don’t currently exist. Yet, just 48% of large organizations make decisions quickly. How will enterprise companies capitalize when new revenue opportunities emerge? 

That level of adaptability lives exclusively within startups… or so you thought.

There are tools and resources hidden inside your large organization to help you replicate the agility of the small guys – and we’re here to unearth them. But first, let’s lay out the startup advantage so we can see what we’re competing with.

The Startup Advantage (What Helps Small Companies Win)

Startups are agile by design, scaling 5x faster than a decade ago, for a few clear reasons.

They often have flat organizations, without silos or legacy systems to slow down the flow of information. There aren’t layers of people and processes between the customer and the folks designing for them. Everyone in the organization is tuned in to what’s happening on the ground.

That customer connection creates direct feedback loops that fuel iteration based on user input rather than assumptions made in conference rooms — building a minimum lovable product instead of a minimum viable one. Companies making data-driven decisions are 23x more likely to outperform competitors, and startups excel at this rapid feedback integration.

And thanks to the culture of startups, everyone has a strong (often vested) interest in the company’s success. Employees act like owners, committed to the company’s core value proposition and making every dollar count. A bootstrap mentality drives efficiency and leads to creative problem-solving.

There’s also a preference for action over perfection, knowing that failing fast means learning faster – and that if they need to pivot quickly, they can. Operational agility means that startups can change their entire business model in weeks and bring new technology to market with relative speed.

The Hidden Big-Company Advantage

Enterprise companies have their own distinct advantages that help fuel innovation – namely resources and relationships.

In the human capital department, large companies have access to top-tier talent and expertise, cross-functional teams with diverse skills, and C-level experience in scaling operations. They also have established training and development programs to help employees grow their knowledge and skills in a dynamic environment.

When it comes to technical infrastructure, enterprise companies often have a leg up with world-class research and development facilities. They also have data from millions of customers, along with advanced analytics, AI capabilities, and mature technology platforms to turn that data into company value.

As established players, large companies also benefit from market intelligence. Enterprises have deep industry knowledge, an understanding of the regulatory landscape, competitive intelligence, and a long-term strategic vision.

That tenure translates into strong relationships: with partners and distribution channels; with legal and compliance experts; and with their customer base for immediate market validation. Established companies have brand credibility that opens doors that may be closed for new market entrants.

Despite these advantages, there’s a stark reality: 94% of executives are dissatisfied with their firm's innovation performance, and 95% of product innovations fail in large companies.

Why this disconnect? Most large organizations are trapped by the very complexity that should (and can) be their strength.

Creating the Perfect Mix: Acting Small While Being Big

With their resources and relationships, enterprise companies that replicate the agility of a startup can leave competitors in the dust. How? By building small innovation pods within the larger organization.

The Strategic Incubation Approach

The solution isn't just another innovation lab – 55% of Fortune 500 companies already have dedicated ones with mixed results. Instead, successful companies create modular innovation pods designed to address specific challenges, using startup-style stages to reduce the cost of experimentation with disciplined evaluation at each step.

• Strategic Fit: Align innovation efforts with core business strategy and long-term vision.
• Market Interest: Validate demand and interest through rapid customer feedback loops.
• Market Fit: Prove the solution addresses real market needs with measurable traction.
• Minimum-Lovable-Product Ready: Develop a Minimum Lovable Product that customers actually want to use.

These pods must operate with startup methodologies but leverage big-company strategic assets. The key is to create an internal venture capital model with clear ROI expectations, aiming for outsized returns rather than incremental improvements. That level of stretch goal inspires radical innovation instead of just tweaks on what’s already working.

The Merkle Co-Lab Solution

This approach to innovation is exactly what Merkle Co-Lab brings. By combining startup agility with big-company resources, Co-Lab provides a proven methodology for moving from concept to Minimum Lovable Product. With a track record of helping large organizations innovate at startup speed, Co-Lab offers the external perspective and approaches needed to reduce timelines from years to weeks.

The Future Belongs to Agile Giants

Tomorrow’s winners will be enterprises that combine scale with speed, moving as decisively as a startup while using the reach, resources, and relationships only big companies possess. 

That transformation doesn’t happen by accident. It takes intentional structures, empowered teams, and a bias for action.

Small-company advantages already live within your organization. The challenge is unearthing and activating them for bold, market-shaping moves before your competitors do. Reach out to us if you’d like to learn more about how Merkle can help.