Work on three horizons
McKinsey consultants have shown that high success businesses set objectives, create innovations, and act, over three time horizons. Concurrently. And collaboratively…
- Horizon one – your managers and operators initiate and grow your core business
- Horizon two – your intra-preneurs and business builders build your new emerging businesses
- Horizon three – your visionaries create viable options for your future.
Collaborate to fast-track your innovations
Why innovate incrementally and radically? Well, there’s growing evidence, any business that remains the same over the next five years, will not be here.
For example, the prestigious Committee of Economic Development of Australia, CEDA, predicts the high likelihood that over the coming decade, technological innovation, automation and global competition, will wipe away almost 40% of all existing Australian jobs
– necessitating the creation of quite new ones. And quite new businesses!
And, IbisWorld predicts
by 2050, 13 of Australia's 19 industry sectors will be either transformed or gain significant benefit from information and communications technology.
Why innovate over three different time horizons concurrently?
Because research and organization practice clearly validates this three-horizon approach is vital to keep your corporation vital and growing
and adding new value in the global market place.
As an innovator or CEO of a small to medium-sized corporation, you accept you need to keep innovating to survive and thrive. And you want to… But it’s not easy. And so far, maybe your innovations are not gaining internal commitment. Or getting to market fast enough. Or even at all.
Time to collaborate with a team who can assist get you there. Faster.
Specialist venture bank - New Enterprise Services – partners with you to uncover, create, develop, and get your new innovations, opportunities and businesses successfully to market – over each of horizon one, two and three.
You gotta have both soul and gold mines
Our starting point is to find your company’s essence or ‘soul’: What drives your company? What’s your BIG Purpose? What are your real strengths? What gives you stand out? And what is you vision for creating a new future?
Next we uncover the hidden gold mines of talent and potential
as yet unrecognized within your business.
Then we use a method of ‘adjacent possibilities’
to tease out a list of possible ventures and adventures that have strong appeal to select markets. Before acting to implement the top 2-3.
See also: Neville Christie: How we create far more innovation – part two – the adjacent possible.
Partnering with you as fellow innovators
As an inventor, innovator, or small business entrepreneur, you’ve already kick-started your market-focused ideas into software, information products, smart machines, transformative technologies, digital products, or whatever. But, somehow, you’ve got stuck on the way to market.
Maybe you’ve run out of money, or time, or know-how, or resources. Monetizing your innovation seems too hard, too complex, too multi-faceted.
So…at your invitation, we join with you to provide all that’s needed. Even together, we don’t go it alone. We collaborate. To fund, resource and develop the monetizing of your new opportunities, we link with other existing corporations. These provide needed resources, scarce talent, a network of customers, and a sales team.
In this way, we fast track your innovation to market. And we share the risks and returns of getting your core, Horizon One, business established, growing, and profitable.
See: Do you sit in our sweet spot?
Partnering with Medium-sized Corporations
Horizons Two and Three.
As the CEO of an established medium-sized corporation, you know guaranteed growth, guaranteed profits and a sustainable competitive advantage are now rare commodities in an ever-changing business world. So you set out to innovate in all three time horizons – concurrently.
You continue to innovate and expand your current business. But you know to survive and thrive, you must also build horizon two - emerging business opportunities
. Plus create viable future options
- for time horizon three.
Research into diffusion of innovation suggests that around 2.5% of most communities are innovators.
And that innovation is strongly enhanced by a change agent!
Yet, in Australia, we appear to be more a nation of idea creators and inventors
, than innovators. That is we are far better at dreaming up ideas, and tinkering with inventions, than we are at getting them profitably to market… Instead we are very rapid first adaptors
of technologies invented overseas.
Partly this is because, until very recently, we have lacked the start-up and innovative eco-systems of places like London, Silicon Valley, and Tel Aviv. But this is rapidly changing with Melbourne and Sydney listed in top 20 cities with an effective start-up ecology
Partly it’s been because of our small population. Australia is roughly the size of continental USA, or twice the size of the European Union. But with a domestic market at February 2016, of just over 24 million
, only the size of Greater New York, or 4.7% the size of the EU.
But now in the digital age, we have far easier access to global markets.
Partly it’s been because most Australian industries are dominated by two or three major players. With most other businesses being relatively small.
As at June 2014,
of the 2.1 million tax-paying businesses and trusts in Australia, 61% had no employees. 27% had 1-4. 10% had 5-19. 2% had 20-199. And less than 1% had 200 or more.
However, there is increasing evidence that Australia’s oligopoly structure is breaking down.
Caught in a squeeze
Size does impact. And the 88% of small team inventors and innovators often lack all the money, resources, know-how and Talent to get their ideas profitably to global market.
And many of the 12% of medium-sized businesses – with 5-199 team members - are also caught in a squeeze: Too big to have the flexibility and innovative capacity of their smaller competitor; too small to have the resources and market grunt of the Big Boys.
So, from necessity, your company Talent gravitates towards Horizon One – defending and extending your Core Business. With perhaps a nod to building a few emerging business opportunities.
Together we change the equation
“Only 10% of 1% of the intellectual property [‘gold’] of medium to large corporations is ever mined…”
So here’s where the Venture Bank steps in to become your innovation arm
. With you we set up the embryo of a joint venture, and a Strategic Innovation Board
. We examine your internal ‘gold’. With you, we mine it and turn it into ‘nuggets’. Then together we create the added value ‘jewelry’ that specific markets really want.
How we work together is always tailored to your Purposes and needs. We focus on actively adding value.
Apart from a retainer, we get paid only from outcomes actually achieved,
And we use processes where after an initial seed investment, your innovations are largely self-funded, or developed within your existing Talent and resources.
Best of all, we initially share the risk and returns with you. And after the innovation is proven in the market place, we sell our share back to you, too early, and too cheap. Or we go to a trade sale, or an IPO.
An example: Keaz
See as one example, Keaz
, a ground-breaking technology for both b2b markets and for the rapidly-growing sharing economy.
Incremental and big jump innovations
As a growth-oriented company you innovate at every phase of your evolution – building a staircase
of measurable and actionable steps within your core business: This staircase is made up of operational, management and product-service innovations that make you more effective, efficient, productive and profitable.
Plus, to avoid the incremental innovation trap, every now and then, you take a new big jump forward – by creating strategic and revolutionary innovations like new business models, new value chain architecture, disruptive technologies, new allied businesses that enhance your position in the Australian and global marketplaces.
To make sure your internal and external innovations don’t bog down, you need a facilitator-change agent in the form of a committed innovation arm
– made up of internal and external talent.
Create your innovation arm
At your invitation, the Venture Bank team works collaboratively with you, as this innovation arm.
Initially through a Strategic Innovation Board
made up of your key talent and ours. And eventually through alliances, collaborative entrepreneuring, co-operative innovating, and joint ventures.
Together we focus on uncovering, then enhancing, the hidden ‘gold’ within your core business, as we rapidly grow your second horizon emerging businesses. And as we create viable opportunities, innovations and businesses as part of your third horizon. Along the way, we see a surge in your horizon one core business.
In essence, collaboratively, we take the best route to predicting your future – by creating it, and making it happen!
The gold we collectively mine
For examples of the gold we collectively mine to form much needed market innovations, click here
What are innovations?
For more on the many different types of innovation, click here