AVL

[Sector]

How Corporate Co-Creation Helps Startups Bring Disruptive Ideas to Market

Sebastian Jagsch / Global Head, Creators Expedition at AVL Viktoria Ilger / Team Lead, Creators Expedition at AVL

Automotive, mobility

Sebastian Jagsch and Viktoria Ilger are no strangers to bridging the startup-corporate divide. A serial entrepreneur and corporate advisor in the automotive and energy fields, Sebastian’s relationship with AVL began when he sold his startup, qpunkt, to the automotive giant. For her part, Viktoria is an innovation and business consultant with experience in developing alternative business models for new markets. Together, they head up AVL’s startup initiative, Creators Expedition.

The automotive industry is currently one of the most exciting playgrounds for innovative startups, with autonomous vehicles (AVs) and alternative drive trains (electrification and alternative fuels) driving seismic change. As with any high-tech field, however, getting innovations to market comes with some serious challenges. First among them, accessing the necessary know-how and resources to set up, validate and test innovations against benchmarks, use cases and standards. In the automotive field, for example, developing alternative drive trains requires costly virtual simulations or complex hardware such as prototype vehicles. Similarly, the AI and digital products needed for AVs demand high computing power and huge amounts of data, which are often only accessible to corporates or academia. Plus there’s the conceptual challenge of overcoming public fears about surrendering control to machines.

Corporate partnerships can help startups to overcome or de-risk challenges like these. They may provide resources and testing facilities; help find market applications for innovations; introduce startups to international networks of suppliers, customers and collaborators; and help them build a name and reputation.

Sebastian is a firm believer in the power of co-creation but cautions there are certain requirements for success. “Corporate-startup partnerships are successful if there’s someone who can speak both languages, bridge both worlds, and if there are processes that facilitate the collaboration. It must be in line with both parties’ core strategy and have a direct business-technology interest, and people with decision-making power must be on board. Such collaborations aren’t successful in an innovation-bubble environment.”

Most important tips for startups:

Know who you’re dealing with. Successful startup-corporate collaborations rely on mutual understanding of each other’s strategy and vision. Always do your homework before pitching or approaching potential partners to make sure they’re a good fit.

Have your strategy, vision and objectives clear. It’s hard to collaborate or stay focused when you don’t know where you’re going.

Establish mutual benefit and take joint decisions. Long-lasting, fruitful partnerships should never be one-sided.

Have clear metrics to measure outcomes. This allows you to track progress and know exactly what’s driving results.

Be ready to adapt and pivot along the way. The ability to change direction is crucial for high-tech startups aiming to bring disruptive ideas to developing markets.

Have a good pitch deck. Programs like Creators Expedition get lots of applications so they need to be able to understand your business model at a glance.

That’s why Creators Expedition pairs AVL experts and business departments with innovative startups in the fields of e-mobility and alternative fuels, automated and connected mobility, AI and big data. As well as access to AVL’s full industry stack, participants in the six-month program get financial and business support as well as exposure to AVL’s global network of customer OEMs (original equipment manufacturers). The aim is to jointly pioneer the development of innovations in mobility and to develop lasting, mutually beneficial partnerships.

A successful Expedition starts, says Viktoria, with setting a clear vision and goals that lead to a win-win situation for both sides. “An individualized approach enables us to conduct initial projects together with startups so that we can decide at the end what a future partnership can look like in order to drive further innovations.” If an ongoing partnership develops, the startup and AVL may team up to approach new customers together. Or AVL may become the customer, as with Expedition graduate Batemo, whose modeling and simulation solution is now part of AVL’s electric-battery development stack.

Creators Expedition primarily works with early-stage startups with a strong team, a minimum viable product and some experience. If the tech is ready but the market isn’t, AVL experts help figure out more immediate applications. For example, incorporating AV tech into the more accepted field of assisted driving (think cruise control). By providing know-how, resources and options, Creators Expedition frees up startups to focus on developing their product instead of putting all their efforts and funds into building up resources and facilities. It also allows them to stay faithful to their vision and strategy instead of having to adapt to those of investors. And because AVL isn’t beholden to shareholders, startups are under no obligation to close down other avenues of cooperation or opportunity.

Every project is different and a learning experience for all involved, especially in such fast-developing markets. The program got its name, explains Viktoria, because “an expedition means you have a clear vision, a clear goal, but don’t know exactly how, or even if, you will get there. And it’s the same when we work with startups. In the beginning, we try to develop a clear vision so everyone’s on the same page and sees a clear benefit. Then, we can embark on the journey together.”

About

AVL is the world’s largest independent company for development, simulation and testing in the automotive industry, among other sectors. As a global technology leader, AVL provides concepts, solutions and methodologies in the fields of e-mobility, advanced driver-assistance systems (ADAS) and autonomous driving, vehicle integration, digitalization, virtualization, Big Data and much more. With AVL’s passion for innovation, the company partners with high-tech startups to bring disruptive ideas to international markets and drive sustainable mobility trends.

[Contact] Email: guide@creators-expedition.com