A 5 Point Checklist: Tech Company Value

A checklist to determine company value in transportation, logistics, and mobility (TLM)

In our last blog, we discussed the importance of focusing first on customer value. Here is a checklist that I use to see if a tech company – especially one in TLM – is meeting the value hurdle before looking into the company’s financials.   

1.     Does it focus on customer value? Does your technology solve a meaningful problem for the customers you serve? Companies should focus on specific value to the customer, or use-case of the technology – why the technology was created and what the technology hopes to achieve, not on how it’s made or how it works.

2.     Can it demonstrate measurable value? Can your tech company measure value to your customers, but more importantly do customers acknowledge the value and can they actually measure this value themselves? For example, does your technology measurably increase revenue, reduce costs, or reduce CO2? Do you have clear and unambiguous proof statements? Is your company providing your customers the tools to estimate and actually measure those improvements once your technology is deployed? One very successful technologist, innovator, and investor considers this his essential element (i.e., the means and specific management tools to measure and assess practical, real-world operating improvements) as he evaluates technology companies.

3.     Is it unique? Are you providing unique value or are there many others who can provide the same capability? Are you providing a differentiated service? Many in the drone and unmanned aerial vehicle (UAV) industry have addressed #1 and #2 on the checklist, but #3 is a higher hurdle as there are so many competitors flooding the market. Some companies have focused on delivering a unique service to targeted markets, e.g., in health care logistics and delivery. Great idea – what a rich area of innovation and need!

4.     Is it proven with customers and respected by industry leaders? Of the dozens of companies I review, identifying companies that have actually deployed their technology successfully (i.e., via verifiable revenue and user base growth) are the ones who stand out among the vast sea of technology offerings in the market. Proven results, real data, and strong customer testimonials improve credibility “proof statements.” I also like to ask industry leaders in TLM about their impressions of the target technology and/or the company. The leaders’ responses provide valuable insights on whether or not the technology has staying power (vs. a one time hit), the technology addresses meaningful issues or customer use-cases (which gives it staying power), the company leaders have strong industry reputations, and whether or not the technology has the ability to tap large pools of money within the industry or within the government because of the customer value or use-case the technology addresses (a contributor to a large market opportunity).

5.     Does it respect safety? A respect for safety is critical when companies claim to be providing data, products, and services in TLM. Claims to improve safety must be completely supported by data, actual experiences, and ideally by industry experts, to be used as a value claim for technology companies – especially if safety improvement is core to the technology. Finally, in current and future air or ground transportation, and especially when dealing safety-of-flight or safety-of-operation, technology companies must anticipate and respect the requirements of those organizations responsible for our superior safety results (e.g., the FAA).

Saving time evaluating a potential TLM investment

Utilize this 5-point checklist as the fundamental, primary yardstick and tool for assessing a company and its technology—it will undoubtedly save you time and effort in evaluating a potential TLM investment.