Clean Futures panel urges greater sharing of trial outcomes

Asking small-to medium-sized enterprises (SMEs) to conduct repeated trials of their innovative solutions for slightly different applications must be discouraged, delegates to a Clean Futures Demonstration Day heard in Dudley.

Ben Kattenhorn of Advanced Hydrogen Technologies Group – one of last year’s cohort on the accelerator programme, led by Connected Places Catapult – told a panel session: “In the UK, we often hear ‘let’s do a test’ and you have to smile sweetly and go along with it.

“But how much more do I have to do, to prove that my system does exactly what it says on the tin?”

He told the event at the Very Light Rail National Innovation Centre – hosted by programme partner BCIMO – that his company had developed technology for the automotive sector before he looked to apply it to rail.

His innovation of cleaning engines is applicable, he explained, to all manner of vehicles – from cars to trucks and trains – and suggested that if one testing facility proves that a technology works well, clients in other sectors should be willing to accept the results; as is sometimes the case in other countries.

“We have been approached by companies in Turkey and America and they accepted that we did automotive testing at Millbrook and rail testing here at BCIMO, and they said: ‘let’s install it’.

“When I stepped into rail, I hadn’t considered the sector before: an offer was put to us by another company wanting to showcase our technology. But once we got past being asked for more tests and we moved towards adoption, people realised how good the solution is. Within two years, rail will be our largest sector.”

Chris Kearns of systems contractor K2C Rail – which is working with Advanced Hydrogen Technologies Group – added: “Ultimately the challenge with innovation is how do we embed change? Hopefully more amenable clients will accept the testing that has been undertaken elsewhere.”

He added that shrinking rail sector budgets may persuade more clients to accept that repeated testing is expensive, and that independent testing – such as that offered through Clean Futures – will help to “speed the process of embedding innovation”.

Innovation is all about change

Chris was asked for his thoughts about what it means to innovate in rail. “Innovation is about change, but that is seen as both challenging and risky,” he replied. “Not everyone wants risk; people want assurance, particularly in the rail industry which is a high-risk environment, so we have to make that change as palatable as possible.

“It’s about making small incremental changes; getting early adopters and enough people on board to positively affect and embed the innovation into business as usual.”

Chris Kearns of systems contractor K2C Rail

HS2’s senior innovation manager Robert Cairns told the session that SMEs are at the cutting edge of creating new opportunities, but noted that those selling new products and services need to articulate their offer well to commercial teams “who are putting hands in their pockets, buying and taking the risk”.

Accelerator programmes can help to de-risk the process of bringing innovations to market, but he also noted that SMEs pitching their products need to hear difficult feedback sooner rather than later.

“I receive messages on LinkedIn from SMEs saying they have this great widget, but I’ve been on HS2 long enough to quickly get to the point,” he explained. “If it’s a ‘no’, tell them ‘no’, so they can move on. It is important for SMEs to get an answer quickly so we don’t waste their time.”

Breaking down barriers with investors

Connected Places Catapult’s Accelerator Programme Manager, Harriet Muscroft told the event that Clean Futures helps to bridge a gap between industry and investors.

“Traditionally to get to market, you will try to get trials and deals, then go to investors and try to convince them; but the process can be very siloed,” she said.

“With Clean Futures, we break down those barriers by having industry and investor boards talking to each other; de-risking the process on both sides and allowing SMEs to show investors where the value is and why they need the money.”

Harriet Muscroft, Connected Places Catapult’s Accelerator Programme Manager

Panel chair Martin Little of the BCIMO asked panellist Andy Green of Frontier Capital Investment what he seeks as an investor, and what a good SME looks like to him.

Andy said that SMEs should ensure they fully understand “who they are pitching to, get their message across clearly, make sure they know their numbers and convince investors that they are right for them – and when they can realistically expect a return.

“Sell the benefits of what you are bringing, the problem you are solving, and know your numbers,” he added. “That is what we are looking for.” Some lenders may not be very technically minded, he continued, “so speak slowly – and shout!”

Andy also noted that it is “very rare a project delivers ahead of target or time” and that the “journey from a to b is not always direct” so SMEs should always ensure they are aware that “the outcomes you are looking for might not be those you get to, so be flexible and open when dealing with investors”.

Exploring multiple routes to market

Also on the panel was Andy Lawrence, head of business development at rail sector specialist TVS Supply Chain Solutions. He recognised it can be difficult for small businesses to get their products to market in rail, and there are lots of hurdles to overcome.

He advised innovators to be open to bringing forward products that are not necessarily aimed at one sector. “Have multiple routes to market, as some might be slightly easier,” he said. “Once you get into a marketplace and show some success, hopefully other people will look to you as a successful business to work with, and will try to bring your product to rail.”

Martin Little of BCIMO asked whether rail buyers need to get better at communicating to the supply chain what it doesn’t need – as much as what it does need.

He also noted there are many accelerator programmes in rail, and wondered if the sector has reached a point where more of a “cohesive” approach is needed in the UK for development schemes that take companies through the Technology Readiness Levels.

“Are we in a position now as an industry to start to accelerate the accelerators,” he asked, “and ensure they don’t operate in silos?”

Harriet Muscroft of Connected Places Catapult agreed, and said many accelerators are focused on getting companies to TRL 7. But helping them to achieve TRL 8 or 9 – where they are commercially ready for market – can be “long and pretty arduous.”

Catapult reveals Clean Futures impact

Delegates also heard from Connected Places Catapult's Executive Director of SME Development and Academic Engagement, Alex Weedon, who revealed that the Clean Futures programme has so far accelerated 39 SMEs, seen 30 trials complete, and helped facilitate over 80 formal business and investor introductions.

He said that Clean Futures provides a great platform for innovation to be accelerated in the West Midlands, and its impact is being felt further afield. “Transport is a sector that suffers many challenges for innovation,” he added.

“Despite the imperative to transition to net zero, it remains a highly regulated sector which makes it difficult for SMEs to hit the market. We still see innovators struggling to commercialise their solutions, and the Catapult plays a vital role in bridging the gap.

“Accelerator programmes like Clean Futures provide mentorship and industry connections to help companies to scale successfully and hopefully ensure there is long-term success at the end of it. The trick is often curating the connections.

“Clean Futures represents a co-ordinated effort to bring challenge owners together with innovators to create long term growth and job opportunities.”

Introducing the 19 companies involved in cohort two of the Clean Futures Accelerator. Find out more about Composite Braiding which is taking part in the programme.

Clean Futures is being led by Connected Places Catapult in collaboration with BCIMO, Coventry University and CU Services Limited. It is part of the wider West Midlands Innovation Accelerator, funded by UK Government and delivered by Innovate UK, which is designed to bolster the region’s innovation and R&D capability and spark commercial growth and investment.