Meet your innovation machine: The 9 Diamond Framework at a glance
Based on a recent report from McKinsey, “80% of CEOs think that their business models are being disrupted.” In fact, we believe that the remaining 20% are just not aware of this fact yet.
So why exactly should you spend precious time reading this lengthy post about the 9 Diamond Framework? What is in it for you? Here are some reasons, my friend.
1. Avoid innovation creep, with a well-thought transformation vision
Let’s be honest, the thrive for radical and disruptive innovations within corporates is sometimes a FOMO syndrome, rather than a well-thought commitment. Well, starting an innovation game without a strategic vision won’t lead you anywhere nice. And that is the first thing we do when implementing the 9 Diamond Framework at big companies — define the role of innovations for business through a clear and focused vision.
2. Think about your innovation portfolio in a strategic way
The accelerator program and venture fund 500 Startups, has surveyed 100 corporate executives overseeing innovation in different industries. They’ve discovered that the vast majority of corporates see less than a quarter of their initial pilots scaling into solutions that can be taken to market. The usual reason mentioned for such a low rate is that corporate processes are meant to serve existing successful business models, rather than searching for new ones. For example, on average there are 10 departments involved in startup deals, which slows down the search process tremendously. On top of that, corporations are working with an insufficient number of startups, which lowers the chances of successful deals.
Both of the issues described above, speed and portfolio-thinking, are solvable and beatable within the 9 Diamond Framework.
3. Fast start with innovation processes, avoiding months of consultations
We’ve made sure that the framework is actionable, so that you can get started with it pretty much straight away. Avoiding months of standby and expensive consultancy. Here is how strategic vision, speed, portfolio-thinking, and action-plan are conceptualized in one diagram with the 9 Diamond Framework:
Corporate structuring side
We start with a diamond that represents Core company (Core Co.). Core Co. runs and exploits all of the proven business models. According to Alexander Osterwalder, in order for a corporate to innovate in a radical and disruptive way, you need to add venture forces. Thus, the next diamond to the right represents a venture structure (New Co.). New Co. is busy with the exploration of new business models.
Core Co. is logically led by a CEO and New Co. is ideally led by a Chief Entrepreneur. It is important to grant a high level of independence to New Co., in order to avoid mixing its agenda with the one from Core Co. Both Core Co. and New Co. report to the Board, which assesses potential profitability of existing and future business models using the tools and frameworks provided by oneUp.