The aim of this master thesis is to propose a methodological framework that facilitates the development of innovative products within large enterprises. The agile innovation model is designed to increase the speed of product development while at the same time allowing for enough flexibility to adapt products according to feedback from the market. Agile innovation does not only deal with the product development itself but also provides a comprehensive framework that encompasses the facilitating factors which are necessary to create an environment that is conducive to innovation. However, large firms struggle with transforming their product development efforts towards an agile innovation model due to hierarchical structures and processes that focus on stability and predictability. Therefore, this thesis develops an approach that describes the transition of large organizations from traditional product development towards the agile innovation model. It draws on findings from the field of change management to describe the necessary steps and develops a set of recommendations for organizations that attempt this transformation. The research questions focus on the agile innovation model itself and the description of the transformation process. Both are developed based on a review of extant literature and are empirically validated by conducting a qualitative case study in an Austrian telecommunications company. Based on the findings of a series of in-depth interviews, the agile innovation model is amended. The empirical findings confirm the validity of the agile innovation model and support the need for a structured approach to transformation. This thesis contributes to the discourse on agile product development by providing a better understanding of its holistic nature, the interplay of existing agile methods from various fields and the importance of enabling factors within an enterprise. It proposes a pragmatic yet systematic approach to innovation and transformation that can be applied in an enterprise context.