We help founder teams gain clarity & confidence in the chaos of product development.
As a Venture Builder, we co-create software-driven devices with you that delight customers & generate profit.
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“Achieve significant accelerations and overcome outdated habits.”
—SMA Solar Technology AG
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“Immediately grasp difficult situations and quickly find the right solutions.”
—Marelli Automotive Lighting Reutlingen GmbH
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“Introduced new ideas and concepts.”
—Eeins Embedded Experts GmbH
Start with a pilot and measure real impact in just 30 days.
The Problem
Burning Through All Cash Before Your First Customer Even Sees the Product
The real milestone isn’t launch day. Success is measured not by what gets built, but by how people use what’s been created.
9 out of 10 founder teams never reach Product-Market Fit. Not because they lack talent or drive, but pulled off course as speed, scope, and cost compete for attention.
"There is no silver bullet. The very nature of software makes it unlikely that there will ever be one—no invention that will do for software productivity, reliability, and simplicity what electronics and large-scale integration did for hardware. The hard part of building software is this conceptual construct's specification, design, and testing. Building software will always be hard."
— Joel Spolsky, Lego Programming, 2006
A Founder's Resource by the Embedded Business Innovation Center | 2025
Have you ever questioned if your roadmap was too cautious or too ambitious?
Do you ever stay up late, wondering if you made the right call for the day? Or you struggle to balance the pressure from your stakeholders while the team suffers a technical breakdown? You’re not alone.
At OrganisationsDiplomaten, we understand that creating embedded products is never a linear process. Because smooth product development is crucial for any business success, it’s a journey of trade-offs, late nights, and those unnoticed successes and quiet victories that few outside our world ever truly recognize. So, how can you ensure you're making the right decisions at the right time?
First, this has been a hairy problem for a long time. Ever since 1968, the software industry has been confronted with the "software crisis". This was identified as projects frequently exceeding budgets, deadlines being missed, and delivered quality being disappointing or outright failure. Acclaimed computer scientist Dr. Winston W. Royce proposed a solution but cautioned: "I believe in this concept, but the implementation described in the waterfall model is risky and invites failure".
The Agile Manifesto, introduced in the 1990s, democratized software development forever by emphasizing people, collaboration, and adaptability. Yes, this has led to greater use of stakeholder engagement, iterative development, modern risk management, and continuous deployment. But at the cost of adding dozens of new voices to the mix.
But is this enough?
Second, once product development falters and decision-making slows, the impact spreads far beyond missed deadlines. It can lead to long-lasting reputational damage. As Peter Robison noted in The Boeing Tragedy and the Fall of Boeing, "Some of the very people who ran McDonnell Douglas into the ground resurrected the same penny-pinching policies that sank their old company." Meaning, that poor quality control that plagued McDonnell Douglas did not disappear after the merger in 1997. Instead, it continued to haunt Boeing in the years that followed, drawing negative attention even to this day.
At OrganisationsDiplomaten, we often find product teams unclear about why customers and stakeholders would use their products or how the product could also delight them. Product development involves trade-offs, especially for embedded systems where power, memory, and processing capabilities are limited. Meeting increasingly stringent compliance, governance, and risk standards compels people to forsake this very balance between efficiency, features, and reliability.
Consequently, many A-Teams linger for way too long in the "trough of sorrow" phase. Where building the product feels more like a grind than a breakthrough. Despite all those changes, the story of how successful products are built has remained remarkably consistent since the earliest days of the industry. As Henry Ford famously stated, "Coming together is a beginning. Keeping together is progress. Working together is success."
Success means far more than simply making a device that functions. There is barely a product on the market today that customers can’t buy from someone else.
Still, most companies don’t really understand why their products are chosen in the first place.
But when your team truly knows why they’re creating what they’re creating, that’s when the device starts to make a real difference in someone’s life.
When we speak about success, what exactly are we talking about?
Success isn't just about turning ideas into market-ready solutions; it's also about delivering them effectively. It's about seeing your team grow closer, feel prouder, and embrace the next challenge. People who inspire others and achieve great things understand how and why they do so. Their experiences encourage others to spread the word and create a lasting impact:
"There are leaders and there are those who lead.
Leaders hold a position of power or influence.
Those who lead inspire us.
We follow those who lead not for them,
but for ourselves."
—Start with Why, Simon Sinek, 2009
Yes, success is seeing your product thrive on the market and being valued by users. But it also includes the dedicated collaborators who grew alongside you, sharing laughter and building trust. This lasting success transforms acquaintances into a strong team, united by shared challenges and victories.
Once you know why you do what you do, the question of how you do it will manifest itself in the product creation function and the various processes within your business and your people's culture. When you have successfully written your product story, something remarkable happens:
Achievements shine brighter than the challenges faced.
Long nights and moments of frustration transform into pride as you witness how your creation improves someone's day.
Pride is one of the most intense experiences in work life. Experience of pride in achievement can be empathized by others in social interaction at work and thereby contribute to psychological empowerment and promote future successes." Design for Pride (psychological emotion) in the Workplace" (Aalto University, 2016)
Seeing your vision come to life offers immense satisfaction, whether it stems from innovation, making a difference, or achieving financial success. This fulfillment drives you to pursue bigger dreams with each new idea.
Shared experiences, such as setbacks or high-pressure launches, bond the team and motivate everyone. As a manager, you are a reassuring presence, turning chaos into order and enhancing individual strengths while fostering a sense of community.
What began as a collection of talents evolved into a cohesive and dynamic team with a shared purpose and trust.
To outpace failure, you must write your own product story. Success requires finding a balance: harmonizing customer needs with regulatory demands and knowing when to act, pause, or pivot in the face of uncertainty.
Unfortunately, this is neither the default product journey for anyone in the industry nor has it ever been.
Did you notice that all too often, competent teams are overwhelmed by chaos? Forced to prioritize urgent tasks, and buried in compliance demands, as well as shifting stakeholder input? At OrganisationsDiplomaten, we have seen this happen again and again over the past twenty years: Even the most talented teams eventually feel overwhelmed and exhausted, trapped in a cycle of firefighting rather than building.
Why is that?
Let's be honest: this is not a mystery in the industry. In complex embedded environments, such as IoT, medical devices, or automotive systems, the pressure to move quickly often collides with the need for rigor. And without clear decision-making frameworks, even great teams are left guessing when and how to act. As ambiguity grows, goals and its requirements, or processes are getting vague or become subject to interpretation. Priorities shift. Communication in your business starts to break down.
As Eric Ries warned in 2011 and as every serious product leader has echoed since: "Too many products or features end up gathering dust on shelves, and too many talented people have wasted years of their lives building something nobody wanted."
To begin with, it is unfortunate that many organizations still struggle to create environments that foster team success. It's a danger to the organisation if, each time a new product is kicked off, people are forced to relearn the same painful project truths: priorities evolve, uncertainty spreads. Momentum shall fade. Talent will be exhausted. The project will stall.
The result? A toxic cycle that has taken root.
First, people's uninformed enthusiasm for projects fades prematurely, leading to the collapse of speed. Worse still, the confidence of all people within the organization starts to erode. As a result, managers experience burnout and sometimes resentment.
Sadly, this has become the standard operating reality for many organizations and is now considered normal in the industry:
Nearly 75% of IoT projects fail to launch or scale due to unclear requirements and shifting priorities (McKinsey, The Internet of Things – Value beyond the hype, 2015).
Seventy-five percent of organizations experience slower decision-making, and 78% face customer service disruptions (Software AG, Reality Check Report 2023).
Teams in chaotic environments experience 40% higher employee churn and 35% lower productivity (Forrester Research, A Change Leader's Guide to Communicating Through Chaotic Disruption, 2023 /2025).
Second, if this is the typical product journey in the embedded industry, it comes with considerable risks for you and your team. Regulatory constraints, system dependencies, and lengthy planning cycles introduce friction at every stage. The real problem isn't a lack of skill. It's the absence of structure when pressure hits.
Because as this ambiguity creeps into product development, and even your A-Teams lose momentum. Without structure, decisions become reactive. Without flexibility, innovation stalls. Critical details get overlooked, misunderstandings arise, and burnout becomes a common occurrence.
Even if your embedded product gains market traction - against the odds, internal alignment and clarity often fall behind. This can leave teams and leaders questioning for years why success remains out of reach.
A competence center retains organizational knowledge, which is vital for maintaining structure and adaptability throughout the product creation journey.
However, establishing a competence center for the product creation function requires significant time, money, and effort.
Warning: the constant cycle of change initiatives reflects both the urgent need for improvement and the difficulty of achieving lasting results. If your business is not adequately prepared, you could encounter unexpected budget overrun and confusion. It is essential to ensure your business is ready before moving forward for any initiative.
* KPMG Global Transformation Study, 2016
Let's celebrate! Your A-team has successfully launched your product. It's an impressive achievement!
First, after achieving initial success, you will need to bring in experts within your product creation function and establish new offices, including Technical Account Management, a Technology and Methods Office (TAM), a Project Management Office (PMO), and DevOps teams.
Governance and compliance will require you to implement necessary requirements, configuration processes, risk management, and a legal function. Additionally, hiring specialists in quality assurance, IT security, and Sustainability is crucial to ensure that your products are safe and socially responsible.
This outlines the origin story for many management teams we at OrganisationsDiplomaten have worked with, and often leads to a sobering conclusion: “As teams grow in size, the number of links that need to be managed increases exponentially, making coordination and communication much more difficult.” Why Teams Still Matter, 2016. With every additional function, the number of interfaces increases. And with each new expert role, the complexity of compliance dependencies grows.
And with each layer added, your development momentum slows.
The predictable answer you will get: Build yet another center of something.
As a second point, many consultants and business books suggest establishing a competence center. Or a Center of Excellence, Expertise Hub, Knowledge Center, Innovation Lab, or Capability Center. To be fair, there are genuine and meaningful benefits to this approach.
A competence center and its offices, like TaM or project management, bring together all the right experts, tools, and best practices from across your business. It helps everyone work together throughout the product journey. Cutting red tape is making sure your product development stays strong and can adapt when things change. Having a competence center is really important if you want long-term success.
But there’s no such thing as a free lunch. In fact, there are three main things every organisation should think about before setting up a competence center:
People
Attracting and retaining senior talent with deep expertise in embedded systems, business constraints, and systems engineering is increasingly difficult. The competition for skilled professionals is intense, and businesses must invest in building strong relationships and offering compelling opportunities to secure the right team.
Money
Developing and sustaining internal capabilities for continuous improvement can require substantial investment, often exceeding 500,000 euros annually. For many organisations, this level of financial commitment is a major hurdle, making it essential to explore creative funding strategies or strategic partnerships to ensure long-term viability.
Time
Building a cohesive and effective competence center is a gradual process that can take years, even with the right hires. In today’s fast-paced market, organisations simply cannot afford to delay. Fostering a culture of continuous improvement and agility is crucial to adapting quickly and staying ahead of the competition.
In the end, no team, leader, or management escapes the weight of its own system. Regardless of resources, structure, or good intentions, no company is immune to the inertia of its own organization. To prove this point, just look at Apple's - the biggest company in the world - missteps with the Apple Intelligence rollout.
Notes about our research:
Nearly three-quarters of cross-functional teams fail on at least three of five basic success measures: budget, schedule, specifications, customer expectations, or strategic alignment (Harvard Business Review, 2015). The impact is felt across the organization: 86% of employees and managers blame workplace failures on poor collaboration or communication (Fierce Inc., 2011). Within your projects, statistically 63% of people say wasted time is the worst consequence of poor communication (Pumble, 2025), and 43% spend more than three hours every week just scheduling meetings (Archie, 2025).
Setting up and managing a competence center may seem easy, but it comes with significant challenges. The statistics reveal why: 42% of IT leaders identify business understanding as their greatest concern that's more than technical capabilities (Cisco, 2024). This skills gap creates a foundation problem that undermines even well-intentioned initiatives.
Getting everyone aligned and maintaining organizational momentum requires substantial management effort. The evidence is stark: 87.5% of transformations fail to meet their objectives (Harvard Business Review, 2024), while nearly 70% of money spent on digital transformation is wasted (Harvard Business Review, 2024). These failures aren't isolated.
Even quality assurance initiatives, which appear more straightforward, demonstrate this challenge. Over 1 million organizations are ISO 9001 certified across 170 countries with 15% annual growth (Fact.MR, 2024). Yet the reality behind these numbers reveals the complexity: while 84% of surveyed organizations believe their implemented system is effective, only 21% are fully convinced (Fact.MR, 2024). This gap between perception and confidence illustrates why even process-oriented improvements remain organizationally demanding.
A business model should guide why and how new products are developed. Innovation and execution need to work together, not against each other.
The key is knowing when to explore, when to execute, and how to shift confidently between both.
This balance is called ambidexterity. It means your organization can explore new opportunities while making the most of what already works.
To stay efficient and resilient, product teams must focus on the critical path. These are the essential steps that create real customer delight and drive business growth.
Anything outside that path is a distraction.
Why do some companies succeed in product innovation while others do not? After two decades of research, we at Organisationsdiplomaten have discovered that success is not determined by the strength of the idea or the size of the budget, but rather by the ambidexterity within the product creation function.
In industries such as IoT, medical devices, and automotive systems, the pressure intensifies due to tight timelines and high risks. The key to business success lies in finding a balance between exploration and structure.
The cost of failure before launch means...
Burned Runway. Team setbacks arising from avoidable issues that slowed development.
Delayed Insights. The product lacks features that are essential for achieving product-market fit.
Missed Learning. Missed opportunities to validate product benefits throughout the development cycle.
The cost of failure at launch means...
Cash Flow Hit. Underperforming product launches disrupt cash flow, development, and slow down growth.
Delivery Abdication. Unclear responsibilities and missed handoffs create bottlenecks, delaying milestones and undermining customer confidence.
Talent Shortage. Gaps in essential roles limit team growth, increase development cycles, and make it much more difficult to scale with increasing demand.
Ambidexterity allows teams to identify the critical path. Meaning the most effective ways to delight their customers.
First, when this balance is consistently maintained, product teams can innovate efficiently while achieving reliable results. It fosters creative breakthroughs without leading to unproductive experimentation and ensures that processes support meaningful progress.
As a result, management must align the product, marketing, and finance functions to refine the business model.
Second, by planning for growth from the beginning, product development becomes a powerful force that is focused, scalable, and aligned with long-term success. When goals, requirements, and methods are clearly defined and stable - for each phase of the journey - product teams can act with unwavering enthusiasm, leading to swift and impactful decisions.
This commitment delivers meaningful results, embodying the essence of acting confidently.
We call that success based on self-reliance.
Lastly, we refer to this balance as "Product Creation Ambidexterity." Every decision, step, activity, and compliance in product creation must support this critical path to success. If it doesn't contribute to this goal, it's best not to pursue it. This focused approach is what sets successful companies apart from those that struggle.
You now understand the complexity behind creating embedded products. You've seen what works and what doesn't.
Founder teams face now a choice:
keep hoping on a breakthrough before the runway ends, or accept that they can’t afford to learn product the Hard-Way.
The Solution
Discover What Makes Embedded Devices that Delight Customers & Generate a Profit
We know what the day-to-day feels like inside embedded product organizations. That’s why we bring to the table the Reliance Framework™.
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Co-Creation: Our Competence Center
Our Competence Center brings hands-on expertise into your product creation function, supporting your team across the full lifecycle — from early prototypes to market validation and growth.
Through this collaboration, we align processes, tools, and decisions so that every move drives measurable progress. -
Co-Steering: The ReFrame Workspace™
The ReFrame Workspace™ keeps your entire product creation visible and aligned in one shared environment.
✓ Roadmaps built on real customer insights
✓ Market-validated backlogs with continuous user feedback
✓ Cross-functional teams, right-sized and optimized for their true capabilities -
Strategic Foundation: The Reliance Framework™
At OrganisationsDiplomaten, we break the cycle of misalignment, stalled decisions, and constant firefighting in product creation.
The Reliance Framework™ provides the structure, rhythm, and clarity founders need to build with confidence from concept to scale.
At Organisationsdiplomate we break the cycle of misalignment, stalled decisions, and constant firefighting in product creation with the Reliance Framework™.
As your venture-building partner, we work side by side with founders and teams who face the same challenges you do. For years, we have focused on discovering what truly drives successful product creation.
Every founder must find the right fit between team, market, and product to stay on the critical path. Each journey is unique, but lasting momentum always depends on solving five core dilemmas that decide whether a product reaches the market or stalls along the way.
Our approach brings structure to this journey, co-creating with you from the first concept through market validation and into full-scale growth.
Build Capital Effective with the Toolbox Behind the Reliance Framework™
We’ve put our best methods and tools into the Toolbox . A practical resource that helps founders bring structure and speed to product creation. The Insight-to-Backlog Interface connects customer feedback to engineering, keeping your team aligned and your roadmap focused. It is the foundation of the Reliance Framework™, an end-to-end venture system built to turn insight into real market traction.
We operate along the Danube River in leading 30 entrepreneurial Communities of the EU 13 states.
Partnering with accelerators, business hubs, angel investors, and specialized consulting firms to rebuild Europe’s resilience.
Your Benefits
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Why our Reliance Framework™ is budget-neutral.
Do your product experts stand by clear plan for on time production, or are you constantly dealing with last-minute emergencies?
With the Reliance Framework™, the integrated Competence Center ensures your experts are accountable and focused on the critical path to success.
By eliminating unnecessary features, determined by committee and inappropriate compliance, you reduce rework and risk.
Your product reaches the market faster, with higher quality and greater impact.
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How our Reliance Framework™ is appropriate in your daily business.
Does your team get the urge to tear everything down and start fresh? We understand. We get it. We've been there and done that.
But that constant need for resets drains energy, waste time, and erodes culture.
With the Reliance Framework™ , you retain methods that work, improve on existing processes, and move on with your product.
Using what's already there. No heroics. No unintentional damage.
A development system that remains explainable as you grow.
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What our Reliance Framework™ does stop feeding in your function.
No more chasing updates, coordinating teams, or untangling priorities for hours each week. No more status guessing.
The Competence Center brings structure to the day-to-day. So you can step off this relentless Alice meetings treadmill.
Keep in control of product creation without being pulled into every operative detail.
As your product matures and your company scales, the Reliance Framework™ adapts with it.
Clearer priorities, better decisions, and more time to shape what’s next.
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Strategic Project Transformation and Excellence
“Through expert guidance in project management, team development, and process optimization, complex software initiatives were delivered with efficiency and quality. The implementation of targeted coaching, best practices, and business case development significantly improved internal workflows.”
— Executive Management, Technology Client
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Provided both strategic and tactical leadership
“Comprehensive oversight of project planning, milestone tracking, stakeholder coordination, and budget management ensured successful outcomes. The ability to step in for critical client projects demonstrated exceptional flexibility and dedication to our objectives.”
— Medium Embedded Systems Company
★★★★★
Coordination and alignment with stakeholders
“Smooth coordination between internal and external stakeholders, as well as the close integration of software and <specific> technology, significantly accelerated our development cycles.”
— Automotive Software Company
Disclaimer: Due to strict non-disclosure agreements (NDAs) in place with our clients, we do not disclose employee names, client names, or any other details that could identify the companies or individuals involved in our projects. This is standard practice for a Knowledge Process Outsourcing (KPO) partner operating in highly sensitive industries where information security and protection against industrial espionage are paramount.
Discover the benefits you’ll enjoy beginning with the pilot and see the real impact of your efforts in just 30 days!
Valuable Research into Real-World Applications
Let's review your results together and define what it means to integrate a functional competence center run by the Reliance Framework™.
Next Steps
Clear Steps. Predictable Outcomes.
Are You Ready to Stop Gambling with Your Product's Future? Gain the Confidence to Deliver Software-Driven Devices with Excellence.
Launching software-driven devices is complex, but it doesn’t need to be chaotic. Our three-step approach gives you the structure to move forward with clarity, so progress is measurable and success is repeatable.
1. Product Story Discovery
✔︎ Self-Assessment Phase
Identifies a critical dilemma blocking daily progress
✔︎ 45-Minute Demo
Provides clear lifecycle positioning & Office overview
2. 30-Day Competence-Center-Pilot
✔︎ 4-Hour Strategic Workshop: Common Ground
Expert-facilitated product discovery
Product strategy alignment with market trends
✔︎ Business-Aligned Integration & Office Preview
3. Launch the Competence Center
✔︎ Risk-Free 90-Day Change Project
Strategic office activation aligned with business priorities
Expert team deployment according to the strategic roadmap
More about our Value Protection Guarantee: Built deliverables remain with the client regardless of the outcome
Ready to Take the First Step?
Your journey begins with a pilot phase: after signing a Service Management Agreement (SMA), we’ll work together to solve one high-impact issue—delivering real results fast and setting the stage for a fully integrated Competence Center.
★★★★★
Transformational Leadership in Project Management
“By providing strong leadership and targeted development for the project management team, we significantly improved both team performance and project outcomes.”
— CEO, Automotive Software Company
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Driving Strategic Innovation and Process Improvement
“Implementing innovative organizational models and processes enabled us to optimize our project environment and internal workflows. These initiatives laid the foundation for scalable growth and ensured that our teams could consistently deliver high-quality solutions.”
— Head of Product Development
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Agile Transformation and Team Acceleration
“By introducing and shaping agile team characteristics, they helped us build a self-organizing and self-managing team. Their targeted interventions broke through stagnation and led to lasting improvements in our workflow and team dynamics.”
— Leading Solar Technology Company
Disclaimer: Due to strict non-disclosure agreements (NDAs) in place with our clients, we do not disclose employee names, client names, or any other details that could identify the companies or individuals involved in our projects. This is standard practice for a Knowledge Process Outsourcing (KPO) partner operating in highly sensitive industries where information security and protection against industrial espionage are paramount.
Connecting You to the Entrepreneurial Ecosystem
Developing new embedded products is always challenging, especially for small and medium-sized enterprises, where every investment can stretch resources and put cash flow at risk. Innovating in a dynamic environment presents several challenges, including the complexity of collaboration, adaptability, resource management, and, most notably, uncertainty.
Entrepreneurial Community
By connecting with the entrepreneurial ecosystem, you gain immediate access to essential resources—people, capital, and expertise—that can help turn your ideas into market-ready products. This allows your team to concentrate on what it does best: building the product.
How to choose?
Your selection of a service provider directly influences your product's market success and roadmap execution. Therefore, the service provider should:
Demonstrate a comprehensive understanding of your product architecture, scalability, and the specific challenges of your industry.
Align closely with your product vision and deliver consistently, even in demanding conditions.
Bring proven expertise in safety, compliance, and quality standards relevant to your sector.
Operate with transparent and state-of-the-art processes for documentation, compliance, and intellectual property protection.
Foster open communication, agile collaboration, and a culture of continuous improvement.
Provide scalable resources and support knowledge transfer to enhance your internal capabilities.
Proactively minimize risks without hindering your team
Entrepreneurial Community
How we compare to the Entrepereurial Community
Set your criteria, evaluate your options carefully, and select a partner who fits your objectives and culture. In the ecosystem, your choice matters. Make it a deliberate one. It impacts your results.
| Embedded Business Innovation Center (EBIC) | Service Provider | Service Provider | |
|---|---|---|---|
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OrganisationsDiplomaten operates as the Embedded Business Innovation Center (EBIC), a full-spectrum KPO partner dedicated to turning complex embedded ideas into market-ready products. By leveraging state-of-the-art standards and fixed-price work-and-materials contracts, we keep costs predictable while maintaining rigorous quality and compliance. We embed a fully functional Competence Center inside your product creation function, aligning Marketing, Sales, Controlling, and Product Development around one goal: shipping innovative products that delight customers. Based near Stuttgart, our team blends more than a decade of research with twenty years of combined hands-on experience. |
Joining an accelerator program can significantly enhance the success of your embedded product by providing a structured environment to transition quickly from concept to market. They function like an intensive school for product development, guiding startups through a defined track, providing mentorship, and granting access to a network that speeds up growth and market entry. A notable advantage is the pitch event, where you can connect with investors and potential partners. To maximize the benefits, your product idea should still be flexible, and your team should be open to guidance. |
A consulting agency provides crucial expertise and support for embedded product development. To maximize benefits, engage proactively, monitor progress, and define clear goals. These agencies quickly access specialized knowledge and skilled professionals for coordination and supplier management, keeping projects on track. Many agencies charge by the hour, which can affect cost efficiency if expectations shift. When used correctly, a consulting agency can enhance project momentum while you maintain control. |