Open Innovation Challenges increase your chances of being selected for a Proof of Concept with a Brazilian Corporate

Sandra Sakugawa Alice Fumiko Elias Baumann Marjaana Karjalainen Cynthia Dearin GAICD Jeremy Hutcherson Jeremy Cronier Sam Cassels Monika Heringer Amirul Azman Ahmad Meilian Higa Lee Priscila Sotana Claudia Kakunaka Cristina Hori Yi T. Milind Yedkar Daniel Baracho Michael Tan Kim Seng Alexandre Guellec Cristina Mieko Costa Bando Rommel Guerra , MBA Wael Jarous I?aki A. Gambus Kn?rr Tatiana Chinen Nagamine Vania Zulatto

In Brazil, the Proof-of-Concept process managed by Corporate Innovation Teams embraces every tech company: 1) maturity stage (startups, scale-ups, or big techs), 2) global headquarters location and team, and 3) type of technology involved.

The typical POC selection acceptance rate has a typical selectivity of less than 10%, especially because it is competitive, inclusive, and transparent.

Participation eligibility requires a few must-haves regarding Brazilian local experience in sales, administration, and technology. It is fundamental to show commitment and capacity to understand and adapt to the client’s challenge. Follow a few requirements & tips:

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1)????? Corporate ID: ?

When applying for an Open Innovation Challenge, you must provide a Corporate ID from Brazil (pro forma) for registration purposes. Tips: Later in the process, when a Proof of Concept is agreed upon, this contract may be negotiated to be signed directly between the local Brazilian Corporation and an international entity – direct sales.

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2)????? Brazilian Team Member:?

A small percentage of Brazilian corporate executives can communicate in English, so you must have a Brazilian facilitator for your client's meetings. This person can be anyone who speaks Portuguese fluently (E.g. business partner, representative, hourly consultant, or a native Brazilian in your country).

Tips: Important facilitator skills: understand how your offering will create unique value for your client, manage enterprise stakeholders' agenda, and facilitate cultural differences for technology adoption.

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3)????? POC revenue:?

A typical POC ticket in Brazil can reach up to US$ 15k, so be prepared to negotiate and share differentiations on your solution to maximize your initial revenue.

Tips: if a Brazilian enterprise client pays the POC cost to an international entity, then the taxation cost for the corporation should range from 45% to 100% (depending on local and technology). In typical local transactions between two Brazilian entities taxation ranges between 15% to 30%.

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4)????? POC ROI:

Before signing the POC contract, the Corporation and Tech may need to invest 3 full days regarding KPIs and deliverables alignment. Corporations may hire a specialized consulting firm to go through every commercial and delivery detail, later this consulting firm will also be responsible for the POC PMO. Tips: These teams are extremely experienced in sourcing tech, so be prepared to go through a business and technical case process.

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5)????? Investment provisioning:?

POC length may take up to 6 months to 1 year, this means that the POC revenue may not be enough to cover the number of hours invested by your team.

Finally, if your end-user has an interface with the platform, then localization is mandatory.

Tips: We typically recommend provisioning US$ 100k for product and delivery until it gets traction in the country.

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A Proof-of-Concept (POC) process in Brazil is highly competitive and requires a deep understanding of the local market. Success hinges on meeting specific requirements such as having a Brazilian Corporate ID, a Portuguese-speaking facilitator, and a strong local presence. Companies must be prepared for the financial and time investment involved, as POCs can be lengthy and may not immediately cover costs. Strategic preparation, including alignment on KPIs and careful financial planning, is crucial to navigate the complexities of the Brazilian market and achieve long-term success.

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