There is currently a lack of frameworks that can help start-ups evaluate their business ideas in a market context. There is a lot of data available, but how can we trust data and be sure that it is the right data that we are evaluating and basing whether an idea is competitive?
Kongsberg Innovation is one of a total of 12 partner companies that have participated in the HSEIF project over the past two years. The company is both an industry incubator and facilitator of Kongsberg Klyngen.
H-SEIF Human Systems-Engineering Innovation Framework – is a research project where several companies and academia work together to research methods and processes to make better use of data as a basis for decisions. The project’s main goal is to strengthen the industrial partners who participate through co-creation, testing and validation of processes and systems that utilize big data.
Read more about the project here.
Establishment of several new companies
In recent years, there has been significant growth in the number of startups in Norway. Unfortunately, according to Statistics Norway, only 27.6% of these survive and succeed with their idea for various reasons. There may be a lack of mapping and market research, and an absolutely decisive factor; capital. Norwegian investors tend to support mature startups in growth, rather than supporting companies in the early phase. When investors don’t show up and startups don’t get traction, this often leads to startups failing with their venture.
Through the HSEIF project, master’s student Saad Ahmed gained access to work with startups associated with the incubator.
– Saad studied what types of data are available and how this could be structured and put together in a way that would create increased value for the startup companies in the early phase, says Ottar Sundheim, Head of Accelerator & Business Developer at Kongsberg Innovation .
Mapping of new start-up companies in the early phase
A very specific challenge is how to map and evaluate startups and business ideas as early as possible when starting a new company. Entrepreneurs struggle to find correct and reliable data in the evaluation phase that can give them clearer and faster answers as to whether their idea is competitive and sustainable. Master’s student Saad Ahmed from USN has delved into this challenge at Kongsberg Innovation and looked at how some of their portfolio companies are doing this today.
Four relevant startup companies have participated and answered questions that have helped to map and put together a model that can help to evaluate startups both faster and better in the future.
It has been very instructive to work with startups and gain more insight into the different phases and what they base on when starting a new company. As it is today, an idea is evaluated through interviews and industry visits in the mapping phase to check whether the product is relevant and ready for the market, says Ahmed.
A structured process?
Startups lack a structured process for early validation, and they tend to focus on developing technology to reach the market as quickly as possible.
In his thesis, Ahmed has developed a user guide that follows flexible principles that can support startups in using data for early validation.
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There is an ocean of data out there, and in order not to drown, I have started from a methodology from Systems Engineering, says Ahmed. There is no purpose in using available data in this context. In this context, big data is time-consuming and one should rather limit the search to defined data types, he says.
One conclusion is that big data acts as a support rather than a solution for early-stage startups. The data should be made easier and more flexible to use through different steps and phases.
Incredibly rewarding to have the opportunity to follow and support Ahmed in the process of surveying some of our portfolio companies, says Sundheim. We have learned a lot and put in place a framework and a guide with which we can continue to work. This will be of great value for further evaluation of startup companies going forward, he says.
SINTEF Best Master Thesis Awards
Ahmed’s master’s thesis has received great recognition and attention, which has resulted in the SINTEF Best Master Thesis Awards for the Innovation and Technology Management Master from the University of Southeast Norway.
His task and his methodological choices are very exciting. He contributes to a research field that has a high focus, but little is understood about how companies can make decisions in an early critical phase !Thomas Brekke, Associate Professor, PhD University of Southeast Norway
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Well deserved, Ahmed! It has been very exciting to follow you during your studies here with us at USN. Good luck on your journey and with your doctorate at NTNU!Gillian Warner-Søderholm, Professor & Head of Department University of Southeast Norway
The way forward for the evaluation of startups
The model and framework for evaluation are in place, and it remains to find tools that can support the processes further.
In order to develop this further, Kongsberg Innovation through the HSEIF project has just got a new master’s student in place. The student must go more in-depth in the model and define tools that can assist the various processes.
HSEIF is a unique opportunity for us to build expertise on how to use big data, says Ottar Sundheim. Hopefully, the research study will contribute to a framework and procedures that we can use when we work with companies in the future, says Sundheim.
We are very happy to be involved in the project. It has great value for us as a company, he says.
Several publications from the project
Digital collaboration with Sporveien
Quality ensures the complex systems of the future through HSEIF
Opens up new thinking when using geodata
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Partners in the project
Kongsberg Defense and Aerospace, Kongsberg Maritime, Yeti Move, TechnipFMC, ECIT, P-plan, Kartverket, AHO, USN, Sporveien, Kongsberg Innovation and Semcon.
The project is financed by the Research Council of Norway .