Venture Clienting #12: From Pain to Gain: Optimizing Startup Scouting to digitalize and automate our Business Solutions

Since 2016, our Venture Client Unit DB SCHENKER | STARTup terminal [·] has developed a deep expertise in sourcing solutions and collaborating with startups. One of the key disciplines in this process is startup scouting — the critical task of finding innovative solutions that address business pain points. However, this isn't a one-size-fits-all exercise. To get the most out of scouting, the business must understand what a venture client unit is designed to do, what our value proposition is, and how to best leverage the scouting process.

So - imagine you're a treasure hunter, but instead of gold and gems, you’re searching for breakthrough solutions. Your treasure map? It’s the business pain points that need solving. The startups you discover along the way? They’re the innovative tools that could potentially unlock a world of value. The code to the map is understanding your business operations, our products, and services in the different regions, the values and beliefs, timing (!!), and the underlying (technical) processes. As much as understanding who has the capacity, resources, resilience, power, and willingness to solve an existing problem with a new solution - and where does it actually makes sense. Because, again, we do not do pilots for the sake of doing pilots; our aim is to create impact by implementing cutting, preferably safe resources on our end.

Ready: "There are no new Problems"

Scouting starts with identifying a pain point in the business. A thorough understanding of this pain point is essential because the more precise the existing problem, the more efficiently we can search for startup solutions that address it. Thus, next to the business and technical requirements, we must also check if the startup is available in all relevant regions, and respective languages, if they have enough capacity to operate at our high-quality level for our customers, and whether it is sufficiently funded. It’s equally necessary for the business to understand which pain points are well-suited to venture client scouting and the kind of information required to trigger a search via our STARTup terminal.

As with any new process, it takes time to run smoothly, and once you think it is running smoothly, things are changing again and again. In the early stages, much of the scouting process leans on establishing an internal network — a critical component of venture clienting. Initially, you’ll likely adopt the “Push” approach, where your venture client unit suggests startup solutions to business units. This is an exploratory phase, where business contacts become familiar with startup pilots, gaining insights into their potential impact. It’s during this period that we lay the groundwork for future collaborations.

Things shift once a strong network is in place, and your venture client unit becomes known within the organization. If done well, the respective business units start approaching you with their pain points and use cases - DB Schenker's business units are Air & Ocean Freight, Land Transport, and Contract Logistics. That’s when the “Pull“? approach takes over, and scouting becomes more targeted and efficient.

Laura Baumg?rtner et. al. from WHU – Otto Beisheim School of Management recently published an academic paper about this exact dynamic: "Harnessing the innovative potential of start-ups for corporate entrepreneurship in incumbent firms: a study of asymmetric buyer-supplier relationships" - free access. This is a true gem, too.

Set: - Leveraging on Strong Partners, Blueprints & Tools

Having the right internal network is essential, but access to a vast pool of startups is equally important. We use various resources to ensure that we are connected to the best startup solutions globally — databases, industry events, recommendations, and even direct inquiries from startups. To strengthen this process, in the beginning, we partnered with Plug and Play Tech Center , one of the largest innovation platforms in the world, which specializes in structured, methodical scouting.

This collaboration has brought several benefits:

Broadening Internal Access: Through events and startup pitches, our internal stakeholders gain direct exposure to the vast Plug and Play startup ecosystem and beyond. Having a professional partner onboard helps to get a proper positioning internally.

Structured Scouting: They organized scouting initiatives around business pain points, and we’ve been able to adopt many of their tools, methods, and frameworks into our own in-house scouting process.

Intelligent Tools and Systems for organizing and documenting knowledge about startups and their solutions. For instance, we integrate4d tools like ITONICS - The Innovation OS have helped streamline our process, ensuring we manage and track scouting activities more effectively. Tracxn is an important puzzle piece for quick desk-sourcing, background checks, benchmarking, and profile establishments in our innovation platform.

Go: Our Scouting Process

Our scouting journey begins with a thorough understanding of the use case. Collaboration with the pain point owners is critical to align priorities and ensure clarity on the specific needs of the business.

Internal Solutions First: Before launching full-scale external scouting, we always check if there are internal solutions or developments that could address the problem. This can save time and streamline the process, especially in the long run.

Scouting Plan: Once it’s determined that an external solution is needed and it makes sense to grab one from the shelf (make, buy, or co-create decisions), we create a scouting plan. This often involves a mix of internal and external resources — databases, service providers, and network recommendations.

Execution: Scouting templates and collaboration with pain point owners are used to compile a list of potential solutions. It's vital to ensure alignment between the solutions being scouted and the business needs. Business commitment, along with clarity on available resources, is essential at this stage.

Introducing Solutions to the Business: Once the scouting phase is complete, the shortlisted startups are introduced to the internal stakeholders via well-organized introductory calls. These meetings are an opportunity for the pain point owner to explain the business context while the startup presents its solution. If there’s alignment and a potential match, the next step is initiating pilot preparations.

Building a Scalable Ecosystem: Over the years, we have developed a robust internal network of stakeholders and solution owners, which has enabled us to scale our scouting process across various business units and use cases. This network ensures that the process remains repeatable and efficient, regardless of the scope or complexity of the pain point being addressed.

Key Learnings from Our Scouting Journey

Starting with the Push Approach: In the beginning, it’s beneficial to take the push approach to build internal awareness and generate success stories. This also helps in optimizing and standardizing the scouting process.

Value of External Providers: Collaborating with external providers, such as innovation platforms, gives access to broader startup ecosystems. Involving business stakeholders in events and startup pitches is crucial to embedding this process in the organization.

Not All Pain Points Are Suitable: It's important to recognize that not every pain point can be solved through startup scouting. Also, clear business commitment and understanding of the use case are essential for a successful search.

Global Perspective for Greater Impact: Evaluating pain points on a global scale not only ensures broader commitment but also enhances the scalability of the solutions, leading to more impactful results.

By continuously refining our methods, leveraging advanced tools, and fostering an internal network of champions, we’ve made scouting an efficient and valuable part of our venture clienting unit.

As we look into the bright, exciting logistic future, it is our duty to keep pushing the boundaries of what’s possible for STARTup terminal - please rest assured - our relentless ambition is to create lasting value for both our business and the startups we partner with for 德铁信可 and beyond.

Thanks to Arthur Gottfried and Wilhelmine Schlosser for contributing to this article.

Thank you for reading. We hope this article provides you with relevant insights or fresh thoughts. You do you.

Enjoy your day.

Ronja