Digital twins, machine learning, augmented reality, artificial intelligence and the IoT are just a few of the buzzwords that start-ups use to market their innovations. At first, a lot of these sound like technical jargon. However, depending on the usage case, these forms of technology offer real counter value. This isn’t only measured in terms of financial gain but also by the level of employee satisfaction or in time savings, dependent on the company.

According to a study carried out by the VDMA, 71 percent of the machine engineering companies that have already cooperated with start-ups are happy or very happy with their joint work. In particular, the agile, fast working processes that dispense with hierarchies and rely on quick check-ins are highlighted here. The new knowledge is also an innovation driver. This means that the area that the start-ups are applied in doesn’t really matter.

While one young company may concentrate completely on software solutions and thus, in advance, creates exact digital copies of a production line to test the efficiency and work out the maximum output of the system before the first machine is even installed, another might be more interested in making maintenance quicker and easier - the key word here is predictive maintenance. Start-ups generally specialise in a small area and can thus extrapolate their knowledge far better here than, for example, your in-house IT department could.

Software isn’t the only trick that start-ups have up their sleeve. Machine engineers and product developers are tired of established structures and prefer to choose a path that enables them to evolve personally. Start-ups offer aid when introducing additive manufacturing, new materials and creating experimental manufacturing systems.

How innovation looks within companies varies on a case-by-case basis. Thus, there are start-up divisions and companies that fall back on knowledge obtained by several start-ups. Think tanks collect feedback from many geniuses that think out of the box. The gap between the start-up and the group ensures independence in the thinking and procurement processes. Simultaneously, they are perceived as just another external service provider that does not have great value, in some cases.

Other companies build up their knowledge themselves with in-house start-ups. The SMS Group, for example, decided to do just this. This ensures a constant flow of innovation and ensures good employee loyalty, which means that the innovation boost doesn’t end after a short cooperation. Nevertheless, this requires a lot of patience and a big pot of money. Finally, companies reach out to all types of experts that have decided against corporate structures, and for good reasons.

The most important element in ensuring a successful cooperation is, ultimately, supporting fresh blood which can and must shake up the processes. If there is no desire to change within a company, it will go through many of these cooperations without obtaining any impact.

The relevant cooperations with the start-ups also have to be accepted and, in the best case scenario, supported by the board of management and all employees involved alike. New ideas must not be blocked internally; otherwise, success will remain elusive.