1 Manufacturing Industry Innovation CRC Industry Engagement Workshop
2 How and why Welcome and introduction Then Industry and Innovation Minister requested AiG to design a CRC to provide strategic research outputs to directly support future manufacturing Industry-led and a driver for implementation of manufacturing policy initiatives Not expected to be affected by federal election. Timelines June: initial bid submitted for a Manufacturing Industry Innovation CRC (MIICRC) August: MIICRC selected to compete in second round September: Selected research project proposals (greater detail) for second round assessment and peer review November: presentation to CRC Committee. Must include companies Decision: end 2013 CRC commences: 1 July 2014.
3 Who is involved? The AiG, CSIRO, University of Melbourne, Queensland University of Technology, University of Technology Sydney, Royal Melbourne Institute of Technology, Swinburne University of Technology, the University of Adelaide, and the Association of Superannuation Funds of Aust. Only bid supported by Ai Group.
4 Why Manufacturing? Critical to advanced economies Driver of productivity and innovation Biggest spender on R&D and knowledge intensive services Largest component of world trade Driver of jobs across economy Strong links to agriculture, resources and services Underpins higher net incomes and employment Builds social cohesion Key to the knowledge economy Manufacturing and services: interdependent not independent
5 Manufacturing today Manufacturing is just as important to developed countries Post GFC re-evaluation internationally Post mining boom re-evaluation in Australia Direct manufacturing employment declines common to all OECD countries In successful ones, the manufacturing share of value added has been maintained or declined by much less than jobs This = productivity gain But in countries like the UK, USA and Australia manufacturing s share of GDP has fallen sharply
6 Why the MIICRC? How can the CRC make a difference to you? The CRC value proposition Access to new market opportunities and innovations Taking costs out Rapidity to market New technologies and business models Anticipating and exploiting opportunities for short-run flexible production Critical information (markets, technologies, investor relationships), reducing transactions costs and risk Flexible approach to collaboration and clustering reinforces agility, rapidity and accelerated capability development Access to shared infrastructure and strong research capability - targeted at solving problems.
7 What is a CRC, and what makes an effective one? Run for 5-7 years User-driven, collaborative model, requiring industry partnerships 38 CRCs operating currently Diverse: Seafood, dairy, wound management, water, cancer therapeutics, deep exploration technologies for mining. What does good look like? Clear objectives and targets; strong communication between partners; business-like management (=accountability and milestones); leveraging bright people
8 The MIICRC Bid The MIICRC bid is for 7 years commencing July 2014 Substantial resources are sought over the life of the project, comprising cash and in-kind contributions from: Commonwealth CRC Program Research Organisations Industry
9 At a glance, the MIICRC is.. Four Programs, 13 Projects 1. Foresights on sector disruptions 2. Agile manufacturing 3. Rapid productisation 4. Driving sector sustainability Industry driven and demand-led to support effective economic development Not only technology, but also business models, building collaboration in high growth industries and value chains, investment and innovation Multi-disciplinary, integrating technological excellence with industry development expertise Around 65% of funds go to the technical programs (2&3); 35% to business model programs (1&4) Contrasts with Advanced Manufacturing CRC (competitor, rebid).
10 Fit with other initiatives Industry Innovation Precincts CRC complements the national industry statement, including Industry Innovation Precincts (defence, food, medical devices), and Local industry participation in major projects. CRC will provide research outputs to help make the IIPs effective. Alignment to SA programs Strong strategic fit with Manufacturing Works, e.g., value chain and industry capability mapping, clustering, additive manufacturing, upgrading manufacturing leadership, design, simulation and prototyping, building innovation precincts (Tonsley Park and Techport), building defence and resources value chains, the transition of the automotive supplier base.. The future CRC could become a permanent high-calibre, internationally networked industry extension institution, Australia s Fraunhofer, VTT or Economic Development Board (Singapore).
11 Objectives of today s workshop
12 Workshop objectives Information on MIICRC programs and projects, and the value proposition (next session, 4) Build industry support Identify common problems or opportunities for CRC action and research (session 5, Industry Plenary) Refine and calibrate CRC approaches for maximum industry benefit (session 5, Industry Plenary) Feedback on governance and membership (session 6) Recruit participants and active industry champions (session 7) Provide high value industry leads for potential follow-up and further engagement; next steps (session 7) Are there others? What else would you like to come away from the workshop with?
13 MIICRC Pathways
14 MIICRC Pathways Maximum industry involvement critical Industry must see value in participating CRC s value proposition must grow over time Flexible ways in to the CRC - companies can start small, and increase commitment, as the CRC demonstrates and delivers value Access to spectrum of CRC programs and projects according to their needs A spectrum of flexible collaborations ranging from networking, to Communities of Interest, to clusters in some instances Your financial support is vital, but so is your moral support.
15 Programs and Projects
16 MIICRC Programs and Projects Four Programs, 13 Projects - described in the Project on a Page sheets High interdependency and integration between and across the programs and projects Interdisciplinary economic and industry development project Contrasts with Advanced Manufacturing CRC (competitor, rebid)
17 Foresights on Sector Disruptions Instead of being its victim, how do we benefit from technological disruptions? Sector transitions and expansion opportunities (targeting high growth value chains) Analyse international manufacturing trends to 2040 Understand and leverage opportunities in Australia in assistive technologies, medical devices, defence, resources and energy, clean tech, etc. Reduce information asymmetries, transactions costs and risk Benefiting from disruptive innovation Assist early adoption by reducing risk through a decision support tool Design Led innovation Build agility into business models to meet changing market needs and technological disruption through design led innovation
18 Agile manufacturing High performance worker (assistive devices) ICT enabled technology to assist workers with lightweight guidance, support, and robotics. Real time and remote problem solving, reduced set-up times, better supply chain management. Agile production systems Moving additive manufacturing and other flexible technologies from prototyping into production. Accelerated diffusion through key value chains. On-line analytics and digital fingerprints for compliance.
19 Rapid productisation Plug and play for manufacturing systems Introduce new products and processes rapidly without disruption to existing production Manufacturing in the cloud Track and test rapid productisation processes, monitor performance of flexibly manufactured items Cloud-enabled manufacturing facilities - design despatch and simultaneous production across sites Critical components and platforms Implantable bionic devices Testing and compliance Reduce standards compliance costs and time to market through digital fingerprinting Collaboration with Standards Aust.
20 Driving sector sustainability Building industrial competiveness Identifying competiveness gaps and barriers for SMEs Enablers for performance improvement and dynamic capability Addressing challenges of SMEs through cooperation Effective collaboration to build competitive advantage (scale with agility), with cluster formation tool Making change for productive workplaces Focus on skills, leadership and culture for agility and absorptive capacity of firms, trialling in sectors targeted in Agile and Foresight. Investing in sustainable industrial futures New investment models drawing on international experience, to recalibrate risk and reward for investors (links to Foresight ).
21 Spectrum of Collaborations CRC will facilitate a flexible range of collaborations Collaboration can accelerate learning and innovation But one size does not fit all Spectrum of collaborations from Informal networking To intensive project based and specialised collaboration To communities of interest To sector based and formal clusters MIICRC will facilitate fit for purpose industry-led collaboration Focus on practical problem-solving and commercial opportunities along defined value chains benefits to all involved
22 Spectrum of Collaborations (example) Aust. Mathematical Sciences Institute Intern Program PhD and Masters into industry research internships fulltime, 4-5 months, mentored by senior academic Builds collaboration around high value mission oriented projects Mature program that solves problems All IP remains with company
23 Industry Plenary your say
24 Industry Plenary CRC value proposition: New market opportunities and innovations Taking costs out Rapidity to market New technologies and business models Anticipating and exploiting opportunities for short-run flexible production Critical information (markets, technologies, investor relationships), reducing transactions costs and risk Flexible approach to collaboration and clustering to reinforce agility, rapidity and accelerated capability development Infrastructure and strong research capability.
25 Industry Plenary Critical Questions: Which projects could be of most use to you? Could they solve a problem (or realise an opportunity) for you? Which problems, which opportunities? If you fixed this problem, or captured that opportunity, what would the impact be, for you, for the sector? Are there broader economic development opportunities (spin-offs)? Do any help solve a problem for any of your customers, or any of your suppliers? Are any the basis, potentially, for collaborative and clustering arrangements? Which ones? What are the top three problem/opportunity areas the CRC could address for you?
26 Industry Plenary (cont.) Breakout groups Plenary Groups report Summary of key issues for further development More on problems and opportunities Distilled priorities Summary
27 Membership Structure And Governance
28 Membership Structure TIER 3 ($10k+ p.a.) TIER 2 ($50k+ p.a.) TIER 1 ($250k p.a.) TIER 1 Product/Service focus Intensive collaboration in research projects focused on leveraging CRC IP to deliver competitive advantage to an individual or small group of companies Join projects individually or as part of a cluster Share in Open Access and relevant Project IP Direct representation on the Participants Forum Committee Direct input into strategic CRC Project identification Invitation to key MIICRC events including board room dinners and the annual conference TIER 2 Market /cluster focus Collective collaboration in research projects focused on leveraging CRC IP to deliver competitive advantage to a cluster of organisations with common interest or challenges Join projects as part of a cluster Share in Open Access and relevant Project IP Cluster representation on the Participants Forum Committee Invitation to selected MIICRC events such as the annual MIICRC conference All membership levels receive: Access to newsletters, technical reports and whitepapers Invitations to seminars and networking events TIER 3 Open/Sector wide Broad participation in projects focused on solutions to industry-wide challenges Knowledge transfer from CRC projects Access to Open Access IP with sector wide relevance 2-4 representatives on Participants Forum Committee act as voice on behalf of all Tier 3 members
29 Governance (simplified) Manufacturing Industry Innovation Australia Pty Ltd (company limited by guarantee) Skills-based Board Independent chair Ai Group Representative ASFA Representative University of Melbourne Representative CSIRO Representative Independent CEO MIICRC (ex-officio) CEO Participants Forum Committee Research, Skills, and Education Committee Research Director Program Leaders: 1. Foresights 2. Agile Manufacturing 3. Rapid Productisation 4. Sustainability
30 NEXT STEPS
31 From now to November Want this workshop to build momentum and recruitment of companies Sign up of companies Further definition of project opportunities Recruit champions to promote the CRC publicly and in industry recruitment drive; some to present to CRC Committee in November Interim Board and Chair (Robin Batterham) being established Report on proceedings and outcomes to you in a week AiG and MIICRC Coordinator will handle follow up communications with individual companies and with the group Any questions or comments?
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