This article has been translated with DeepL.
NEW RESEARCH PROJECT | Helping tech companies in Norrland to scale up
- Published: 5 Apr 2024,
- 2:01 PM
- Updated: 5 Apr 2024,
- 9:36 AM
Advanced technologies and digital innovations, from which the mining industry, for example, can benefit greatly, already exist. Now researchers at Norrlandsnavet will help smaller tech companies find customers and scale up their business.
How do we make sure that human and machine do not get in each other’s way down in the mine? How can healthcare providers reduce patient injuries by anticipating falls? These are examples of issues for which Swedish innovators have pondered and developed technical solutions. But it is not so easy for smaller companies to bring their technology to market, or to scale up their operations. In northern Sweden, a newly launched research project, within the framework of Norrlandsnavet at Luleå University of Technology, will help small and medium-sized enterprises with this.
– We are working on two different tracks to support businesses. We help companies with strategies for scaling up, and we also organize workshops where companies can analyze their unique situation and find a way forward. Here, the exchange of experience is also a very important component, says Patricia Garcia, postdoc at Luleå University of Technology.
Stuck in “pilot hell”
The reason for starting the project is that the researchers have identified a number of companies in northern Sweden that have exciting technology, but find it difficult to get a real deal.
– Many companies, especially in digitalization and AI, are stuck – in what they call – “pilot hell”, says David Sjödin, Professor of Entrepreneurship and Innovation, Luleå University of Technology.
– Again and again they end up in pilot projects to test a technology in small steps somewhere. But rarely do they get as far as implementing the technology in its entirety, for example in all the mines of a mining group, he continues.
Salesmanship at all levels
The smaller companies in the study focus on “business to business” and mainly target larger industrial companies. But getting big companies to buy the technology solution means working on all fronts in organizations.
– Contractors need to get down to the nuts and bolts of convincing those who will use the technical solution. At the same time, you still have to get to the top to sell the innovation to management. This is one of the things we will help within the project, says David Sjödin.
Not everyone has time to scale up
At the other end of the problem is the ‘ketchup effect’. Some companies known to the researchers have successfully pitched their technology, sometimes gaining so many customers that they do not have time to adapt and grow their business accordingly.
– When you get a deal after a long period of hard work, it can sometimes move a little fast. One day, entrepreneurs may find that they don’t even have time to answer the phone. They simply haven’t been able to scale their organization at the same pace as the business, says Patricia Garcia.
Making the right choices
The overall aim of the project is to support tech companies with their business models and innovations, and to help them scale up their operations. In the latter work, entrepreneurs need to make some choices. During the project, the researchers want to develop a framework for different scaling-up processes.
– In a small business there are limited resources, so they need to make a choice. One strategy is to work very closely with your customers and thus manage to sell more and more. Another approach is to work in partnership, with partners handling the customer contact and sales work. And that you then focus on back-end development and internal scaling up. And this is what we want to find processes for, says Patricia Garcia.
The business landscape in northern Sweden is changing with the green transition. A development that she feels is exciting to be part of.
– I am really looking forward to learning from the vast expertise of small innovative companies in northern Sweden. And to be part of the needed change in the market, says Patricia Garcia.
Contact
patricia.garcia@ltu.se
david.sjodin@ltu.se
This article is produced in collaboration with Norrlandsnavet.
More about the project
The research project called Supporting Business Model Innovation for SMEs: Scaling and international growth through digital servitization started in January 2024 and runs for two years. It is part of Norrlandsnavet, at Luleå University of Technology, which works with the development of business activities in northern Sweden and is financed by the Kamprad Family Foundation. More about the initiative.
Read more articles on Norrlandsnavet:
NEW RESEARCH PROJECT | The role of small businesses in the green transition
Three years of Kamprad’s 100 million investment in small businesses in northern Sweden
3 barriers (and solutions) to capturing the value of new technologies
Green initiatives and skills management are the future of the tourism industry
Hello there! Tim Foster – ‘Growing green’ research leader
