For this newsletter, we inquired Ernst and Young about the process of adapting the Korean Kibo Technology Rating System (KTRS) into the InnoRate Technology Rating System (ITRS), based on which the platform assesses companies.
How did you find the process of adapting KTRS into the ITRS?
The process designed by KTRS is a benchmark recognized internationally. The modelling of the data and the abundance of available information make this tool unique in its kind. The process of changing the approach of the KTRS to the ITRS required some adaptations of the rating methodology based on the applicability of the KTRS in the European Market. Based on these adaptations, ITRS now includes a fully-fledged, automatic assessment of a company on the basis of several assessment indicators.
How does the ITRS work in practice?
The ITRS works thanks to the implementation of a multi-criteria analysis methodology called “Analytic Hierarchy Process” (AHP). Starting from this it is possible to build a comparison between different elements, in our case the characteristics of a startup, which are weighed through algebraic calculations and then used to create a ranking. The methodology is widely cited in the literature and represents a best practice in evaluation exercises.
What makes the ITRS stand out?
The added value of the ITRS also lies in the fact that the construction of the weights is based not only on AHP, but also on the knowledge of the startup world of the various international experts involved in the project.