1. General framework
Business Impact Challenge is an initiative promoted by the company SA DAMM (hereinafter referred to as DAMM) (more information available by clicking here).
This initiative is focused on innovation as a lever of transformation for the food industry. Through open innovation, it seeks the cooperation of the international startup ecosystem with the company DAMM to solve the main challenges facing the business within the Spanish food industry.
2. Approach
The needs analysis and the challenges that arise from it focus on problems related to the sustainability of DAMM's business. The challenges are formulated by DAMM's digital transformation and innovation team and are launched through the LAB1876 initiative, the company's open innovation program. This seeks to promote the generation of creative and disruptive solutions with the help of external agents such as startups and entrepreneurs.
3. Challenges
The two challenges posed in this call are challenges that seek to strengthen the sustainability of DAMM's business and, in particular, its supply chain, procurement and energy self-sufficiency.
3.1. How to improve the ability to trace and measure key information in the supply chain of Raw Materials, Materials and Consumables procurement in the food industry? The Covid-19 crisis, the subsequent increase in demand and the consequences of the Ukrainian war have put the food supply chain in check, causing:
- Closures and contraction of industrial production worldwide.
- Lack of supply of raw materials and materials
- Unprecedented energy and transportation costs
- Shortage of domestic and international transportation supply
- Lack of workers in their jobs
- Widespread price increases
In this context, companies have also responded by adapting their supply chains to the new situation, urgently seeking alternative sources of supply and new means of meeting demand, in most cases forcing them to reduce their margins. Thus, the supply chain model that has prevailed in recent years has been profoundly disrupted. DAMM and the food industry as a whole face an important supply chain efficiency challenge, in which startups can play a relevant role. LAB1876 is committed to seeking new ideas and technological solutions to improve the efficiency of the food supply chain (including Tier 2 and 3) to have real-time information.
- Increasing transparency and visibility of product availability, mmpp and materials, transportation and delivery.
- Being better able to measure supply chain risk, according to product type and geography.
We are looking for digital solutions that can improve transparency, traceability, measurement, and instantaneousness of information related to supply chain and sourcing.
3.2. How can we boost the energy self-sufficiency of Damm's food industry through low environmental impact energies? the food industry is one of the productive sectors with the highest energy demand in Spain. It ranks second in energy consumption and is responsible for 14% of the industry's total energy consumption.
In addition, rising energy prices threaten the profitability of Spanish companies in the sector. In recent years, measures have already been taken to improve energy efficiency in the food industry and energy intensity has been reduced considerably.
Energy management in the sector, which is highly dependent on gas and electricity, has become a fundamental challenge for two basic and complementary reasons: sustainability and economic savings.
We are in a time of economic and environmental emergency, which makes it necessary to focus on maximum efficiency in energy consumption, for the benefit of the competitiveness of companies and care for the environment.
The sector, and DAMM in particular in its strategic plan and through innovation with LAB1876, seeks to promote the energy transition, whose goal is a supply based on energies with low environmental impact, moving towards self-sufficiency and energy autonomy.
Lab1876 is committed to finding technological solutions that help the industry to reduce its consumption, especially of:
- Gas
- Electricity
- Water
- Co2
The ultimate vision is to achieve self-sufficiency of the company and the sector, so that we achieve a neutral effect on the planet derived from the activities of the sector.
4. What type of organization is the call aimed at?
Damm is looking for international startups that are validly constituted as a legal entity and are operational and actively developing their activity. These companies must justify in their application why their solution could be the ideal one to respond to one of the challenges. Each startup may only apply for one challenge. In the event that they are able to respond to both challenges, the startup must choose only one and state this in its registration.
The pilots will be limited to the Spanish national territory and the aspiring startups must justify their capacity to deploy them in that national territory. Likewise, if in a second phase and after the presentation of the results of these pilots, the startups obtain funds from investors to scale their solutions, the startups commit to apply them as a priority to the Spanish market, without the expansion to other markets being an impediment.
5. Evaluation of applications and criteria to be used
The following criteria will be considered to select the finalists for each challenge:
5.1. Focus on the challenge by the candidate startup.
Adequacy of its value proposition to the challenge.
- Does your solution respond clearly, directly and effectively to the problem set out in the chosen challenge?
- Does it organize its processes and operations towards the effective resolution of the challenge?
- Does it solve the challenge efficiently by using fewer resources, achieving a better outcome, using less time, or achieving greater scale in doing so?
- How relevant is the proposed solution when compared to all other competitors who are candidates to solve the same challenge?
- Is the startup capable (currently or potentially) of deploying not only the pilot of the challenge but also a solution that scales to the entire market at a later stage?
Previous experience:
- Has it already solved problems similar to the one posed in the chosen challenge?
- If you have not solved challenges exactly like the one chosen, do you have valid tools and capabilities for solving the challenge?
- How much time did you need in the past to deploy similar solutions?
5.2. Team of the candidate startup.
- Complementarity of the team, capabilities of its members, adequate and sufficient size to be able to successfully meet the challenge.
- Full dedication of the team members to the activity.
- Knowledge of the Spanish food sector and the issues surrounding energy efficiency and supply chain efficiency.
5.3. Economic model.
- Is the proposed solution, in addition to being valid in time and place, relevant, effective and efficient, economically sustainable? That is, will the startup be able to develop a viable economic activity from it?
- Is an acceptable, desirable and assumable integration by the Damm company foreseen?
- Will the startup's activity generate a win-win model with the company?
5.4. Capacity and feasibility of carrying out the pilot in Spain - The startup has the capacity and feasibility to carry out the pilot in one of DAMM's Spanish headquarters. - The startup can justify its operability in Spain not only to carry out the pilot, but also for its continuity.
5.5. Technology and certifications.
- Is the technology on which the proposed solution is based, is it proven?
- Are there any certifications that ensure the security of its provision, financial solvency, quality, etc., depending on the case and the challenge?
5.6. Presentation.
- Attractiveness, clarity and adjustment of the argumentation of the candidacy for its challenge.
- Adjustment to the time available.
- Availability of the presentation materials so that they can make a more in-depth and consensual evaluation later on.
- Use of technical, graphic and visual means to provide a better presentation.
6. Application process
Startups wishing to apply to one of the two challenges must do so through the registration link that will be found in the URL www.f6s.com/damm-business-impact-challenge, which in turn will lead to a space attached to the F6S platform. The candidate startups must create a public profile (or have one previously created) that will be associated with the initiative *BUSSINESS IMPACT CHALLENGE BY LAB1876*.
All candidates must accept the legal terms, privacy policy and other clauses of the URLwww.f6s.com/damm-business-impact-challenge and the F6S platform to be eligible to be selected as semifinalists or winners of this initiative.
7. Calendar
The milestones of the Business Impact Challenge are as follows and will take place on the following dates:
7.1. Launch event of the Call for Startups, public presentation and start receiving applications: January 25, 2023.
Launch of the challenges on the F6 platform as well as the Landing Page www.lab1876.com to disseminate the value proposition of the Challenge in a public event at Pier01.
7.1.1. Startup Scouting: until March 19, 2023.
DAMM will identify the best startups in terms of business efficiency and sustainability, and that can address the challenges posed.
7.1.2. End of receipt of applications: March 20, 2023.
Applications received after this deadline (23:59 pm on March 19, 2023) will not be considered or evaluated by the organizers.
7.2. Announcement of the semi-finalist startups in each challenge: March 30, 2023.
The 3 semi-finalist startups in each challenge will be announced on that date. The organization reserves the right to declare one or more of these finalist places in each of the two challenges as vacant if it considers that the quality of the proposals received does not justify the nomination of 3 candidates for each of them. The selected startups will be contacted through the email address indicated in their registration to the F6s platform. In this contact each of them will be informed of the date, time and details related to the presentation of their candidace in the private pitch session.
7.3. Pitch preparation session with the semifinalist startups: April 14,2023.
The startups will be invited to participate in a session with the organizing team to learn about the points to be included in their pitches and what is expected of them in the session.
7.4. Private Pitch Session of the semi-finalist startups: April 24, 2023.
On Thursday, April 13, 2023, a private pitch session will be held between the semifinalist startups and the DAMM evaluation committee. Each startup will have 10 min to make its pitch and 5 min to answer questions. It is essential that the startup has scheduled this day because if they cannot attend and make their pitch they will be disqualified.
7.5. Announcement of the 2 winning startups (one per challenge): April 28, 2023. - THIS DATE IS A DEADLINE
After listening to the pitches of the 6 finalist startups (or those that qualify if there are vacancies), a jury made up of high-level professionals from DAMM will deliberate to make their decision on which are the 2 winning startups and communicate it to the organizing team. This decision will be published on the lab's website 1876 www.lab1876.com and by email. The organization reserves the right to leave one or more of the categories deserted in the event that the quality of the finalist applications is not considered sufficient.
7.6. Start of the pilots of the winning startups of each challenge: June.
DAMM reserves the right not to carry out the pilot if the winning startup does not meet all the criteria to carry out the collaboration.
From the communication of the 2 winning startups and until the start of the pilot of each challenge, the organizing team will agree on the details and planning of the pilot with each of them.
7.6.1. End of the pilots of the winning startups of each challenge: August 31, 2023. After 3 months from the start, the 3 pilots will come to an end on August 31, 2023. During that period of time, each of the winning startups commits to hold biweekly follow-up meetings with the established team. At these meetings, the startups will report on the progress of their pilots and will seek all possible support to ensure the success of the pilots. Once the pilot has been completed, the 2 winning startups commit to prepare a report that includes the results observed in the pilot, as well as the lines that should regulate its scaling in the event of obtaining funding.
*Note. The dates and the different phases established in this call may be modified and/or adjusted by the organizers if necessary, in case of force majeure or for reasons that motivate a better functioning of the program. In case of any modification, they will be published in the landing located at www.lab1876.com.
7.6.2. Financing of the pilot
DAMM commits to fund each winning startup up toa maximum of €15,000, which will be released in the following installments:
- €3,000 upon announcement of the two winning startups on April 21, 2023.
If the pilot is confirmed:
- €6,000 after 6 weeks from the start of the pilot.
- €6,000 at the end of the pilot.
The payment of these amounts is conditioned to the effective fulfillment by the 2 winning startups of their commitment of dedication to the challenge object of the collaboration. Failure to report periodically on the progress of the pilots, their results, the data obtained in their execution or the lack of participation in the follow-up meetings may be grounds for termination of the relationship and, therefore, of the delivery of the committed funds. Likewise, DAMM reserves the right to claim the return of such amounts if bad faith or fraudulent behavior on the part of the startup is demonstrated, for example by falsifying data, hiding relevant information or failing in its duty to execute each of the pilots.
The winning startups commit to regulate their relationship with DAMM in a specific contract whose signature will be necessary for the execution of the pilot. This contract will regulate all the aspects expressed in these bases and others that may be related (without excluding others) with their adequate dedication to the object of the pilot, their subsequent scaling in case of receiving investment, etc.
If the projects are delayed to the initially established maximum payment deadline for each milestone will be delayed by the same amount of time that the project has been delayed. The 2 finalist startups must keep the strictest confidentiality of the entire project and may not disseminate or share the project until expressly authorized by DAMM.
8. Preferential right of Damm
DAMM as the organizer of the Business Impact Challenge for one year from the end of the pilot, reserves the preferential right to advertise and disseminate the project among its customers, as well as in the event that the winning startup would like to sell or transfer the rights to the project, DAMM may purchase such rights on a preferential basis.
9. Personal Data Protection
The personal data of the participants in these rules will only be used for the management of the entire participation process and subsequent development of the various winning solutions.
The data controller will be DAMM. In compliance with the provisions of Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on Data Protection, the Companies expressly state that:
- The personal data of the participating individuals, on their own behalf or as representatives of the corresponding legal entities, as well as the persons from their respective organizations who are designated as "contact person", will be processed by the DAMM organizing team for the sole purpose of managing the Business Impact Challenge, and in order to be able to direct through them as many communications as may be necessary.
- Unless legally required, the data of such persons will not be communicated to any other company, nor will they be used for any other purpose.
- Such data will be kept as long as the 2 winners have not been chosen, plus an additional period of 3 years to attend possible claims for the use that may have been made of them and as regards the 2 winners, their data will be kept as long as there is communication between them related to the winning solution.
- Individuals may exercise their rights of access, rectification, cancellation, opposition, limitation of treatment and all those provided by law by writing, including your request and accompanying copy of your ID card addressed to privacidad@damm.es