Empowering SMEs to Tackle City Challenges

On Tuesday, 5^th November 2024, the Smart City Expo World Congress in Barcelona hosted an inspiring DIATOMIC session titled “Empowering SMEs to Tackle the City’s Challenges.” Aline Bressan Martins from Connected Places Catapult moderated the discussion, featuring insights from Raj Mack of Birmingham City Council, and two companies that participated in the UK accelerator project as service suppliers helping the city to solve its housing-related challenges: Ben Roberts of Tenants Hub AI, and Louis Daillencourt of Novoville.

The session began with an overview of the innovation accelerator programmes in three UK regions, financed by UK Research and Innovation fund. The West Midlands is delivering five accelerator projects of which DIATOMIC is one. These innovation accelerators are designed to fast-track the adoption of new, disruptive products and services.

Raj Mack shared how Birmingham City Council is   embracing challenge-led innovation. Traditionally the Council relies on purchasing established solutions from larger, trusted organisations often within big framework contracts DIATOMIC has provided an opportunity to supplement this traditional approach and focus on agile, co-designed solutions that prioritise citizen needs. This shift involves Council services participating in design-led thinking workshops to identify departments’ most pressing challenges and then go on to work with SMEs to collaboratively develop impactful solutions.

Mack highlighted two main areas where this challenge-led innovation brought value to the city administration. First, citizen engagement was integral to the process, ensuring their perspectives were at the heart of the transformation. Living labs and consultations were launched to gather feedback from citizens once the solution had been deployed to gain further insight from the user experience which could be used to inform further product development. Second, the initiative allowed the Council to reflect on how to improve their procurement processes. Departments developed intrapreneurship, taking the first steps toward innovative product development. The council now supports departments in identifying challenges through a systematic, design led thinking approach.

Ben Roberts introduced Tenants Hub AI, emphasising the importance of engaging with Birmingham City Council and understanding its complex structure and range of services. He highlighted the potential of AI to solve real-world problems, especially in Birmingham’s social housing sector. Louis Daillencourt discussed Novoville’s experience with accelerator programmes and their work in the West Midlands. He appreciated the open-ended way the challenges were presented (ie there was not a specification with a detailed set of requirements) which allowed SMES to come forward with diverse technological solutions. Working directly with end users, which in this instance was homeowners? Helped to ensure the development of practical and useful solutions.

Both speakers shared how the DIATOMIC accelerator learning experience changed their approach to innovation. For Novoville, the accelerator reinforced the value of co-constructing solutions with clients, fostering a symbiotic relationship that bridges the gap between risk-averse public authorities and risk-taking SMEs. For Tenants Hub, the experience highlighted the importance of catering to a wide range of stakeholders, from elderly and disabled users to social care teams. The trial data helped improve homes and social care, and the ongoing relationship with BCC has opened doors to other councils and investors.

Both company speakers praised the support from the accelerator programme. Novoville benefited from business planning, fundraising guidance, and promotional opportunities, while Tenants Hub AI refined their messaging and financial models through stakeholder meetings and collaborations with other companies.

The accelerator programme had a significant impact, with six additional full-time employees hired by businesses involved, £180,000 extra invested in R&D, 39 collaborations with external organizations, £71,000 in private sector investment, and £47,000 in additional public sector funding. Six out of eight businesses reported an increased understanding of public sector procurement.

The programme had a profound impact on the participating companies too. Novoville gained two new clients, including the Council, and launched a new service projected to generate £500,000 in the next 12 months. They also invested an additional £130,000 in R&D and dedicated three full-time employees to the project. Tenants Hub established an ongoing relationship with Birmingham Council, proposed further trials, and raised awareness among other UK councils. They believe their work can significantly benefit the people and the UK economy.

The key takeaways from the session included the importance of efficiency, innovation, and user engagement. The speakers highlighted the benefits of the accelerator being more resource efficiency (cheaper solutions) by engaging with SMEs to come forward with a solution to the challenge set and using the accelerator as a way to gain end user feedback.  The insights shared during the DIATOMIC session highlighted the crucial role of SMEs in driving forward-thinking solutions for cities.