Intro
In Brazil, any tech Company may participate in the Proof-of-Concept process managed by the Corporate Innovation Team:
1) maturity stage (startups, scale-ups, or big techs),
2) global headquarters location and team,
3) type of technology involved.
Follow a few requirements & tips:
Expectation
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
"A successful POC with a Corporate opens doors with all other Corporations or internal CVC because the process is transparent and highly competitive"
Tips: Corporations also invest significant time and financial resources for the project success. Team execution consistency is very important
Management planning
1) Corporate ID:
When applying for an Open Innovation Challenge, you must provide a Corporate ID from Brazil (pro forma) for registration purposes.
Tips: A temporary local corporate ID in Brazil should enable Techs with few months to evaluate the deal feasibility and plan an optimal operating model for Brazil
2) Brazilian Team Member:
A small percentage of Brazilian corporate executives can communicate effectively in English, so it is highly advised to 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.
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. Techs that provide clients with consistent delivery and innovation always yield higher value
Tips: Taxation in Brazil is complex, corporations may prefer to pay to a Brazilian entity (distributor, System integrator) or a temporary local office
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: Innovation teams are extremely experienced in sourcing tech (thousands every year), so be prepared to go through a rigorous business and technical process
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 you to adjust your first Minimum Viable Product, meanwhile working on a pipeline backlog is vital to assess business viability
Conclusion
A Proof-of-Concept (POC) process in Brazil is highly competitive and requires a deep understanding of the local market
Initial 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, so engaging with broader market is very strategic
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.
Open Innovation POC success is the business card to engage and become the reference to scale in Brazil with other Corporations