Advanced Manufacturing in AustraliaTowards increased Competitiveness and Growth

Overview of our Growth Centre Operating Model

• Every manufacturer can, and should, become advanced through changes to mindset, value chain scope and processes.

• Common characteristics include: – High value products and associated services,– Short runs/ high customisation – mass customisation– Full scope value chain – Specialised manufacture – high quality, narrow tolerance– Export oriented – integrated into global supply chains – Customer and value focus – design led and compete on

value not price

• Advanced Manufacturing is a way of operating rather than an industry classification.

Advanced Manufacturing = Competitive

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Manufacturing is changing…and quickly

Competitive manufacturers focus on pre and post production (intangible) activities

Pre-production intangible

Production tangible activities

Post-production intangi

ble

MANUFACTURING ACTIVITIES

VALUE ADDED

1970s

2000sR&D

R&D

Logistics: purchase

Production

Marketing

Logistics

Pre – or after – sales servi

ce

Source: Veugelers 2013 3

Our industry consultation confirmed this manufacturing value add profile

The overarching objectives of the Growth Centre programme were ranked by the enterprises consulted:

1.Improving engagement with international markets and access to (almost universally digital) global supply chains

2.Improving the management and workforce skills

3.Improving engagement between research and industry, and within industry, to achieve commercialisation outcomes

4.Reducing unnecessary and over burdensome regulations4

1. Industry led – emphasis on engaged enterprises (not observers)

2. Focus on engaging Australian companies with global supply chains and (therefore) markets

3. Engagement and collaboration on projects and programmes

4. Achieving all Growth Centre objectives by bridging the commercialisation “valley of death”

5. Public : Private funding gives way to Private : Public funding over 4 years to enable sustainability

Our Growth Centre operating model has 5 key elements

5

Bridging the commercialisation “valley of death” is at the heart of our model

Our Growth Centre will operate in TRLs 4-7 and balance the traditional funding and priority vector

6 Research Development Commercialisation

TECHNOLOGY & MANUFACTURING READINESS LEVEL

INV

ES

TM

EN

T

Government & Universities

TRL & MRL 1-3

Private SectorTRL & MRL 8-9

Gap

TRL & MRL 4 – 7

Traditional vector Growth Centre vector

The Growth Centres initiative provides the impetus and national scale for the Growth Centre vector

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Our members will engage on projects and build our footprint in global supply chains

1. Innovation session

To ensure relevancy and market demand for product

2. Project calls drafted

Using member insight

3. RFPs published

To membership

4. Proposal submitted

By members

5. Proposals vetted

Member-led review team & funding recommended

6. Winners announced

Funding awarded

7. Projects conducted

With regular updates to full membership

8. Final outcomeProject output

pre-competitive IP accessible to membership

Member driven

FINISH

START

Member driven

Member driven

Member drivenMember driven

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Our Advanced Manufacturing Governance model will target the Growth Centre vector

Board Members

Chief Executive Officer

Members, Partners and other industry participants

Chief Financial Officer

Marketing & communications

Programmes Human resources

Connections for Growth

Hubs for Growth

Future Jobs for

Growth

Commercialisation for

Growth

Risk and audit committee

Reforms for Growth

Compete for Growth

Innovation and Technology Advisory Group

Membership and engageme

nt

9

The Value proposition of Growth Centre membership is strong

Tier Contribution Benefits, involvement and IP access TargetTier 1:

Large multi-national organisations

$100,000 Able to appoint 1 member of Innovation and Technology Advisory Group (capped at 10)

Full access to all IP for both R&D and Commercialisation without royalty/ license fee payable

Option to, depending on relevance, lead and staff key Growth Centre projects

Target of 20 members to raise $2m per annum

Tier 2:

Research organisations /Universities

$50,000 Able to appoint 1 member of Innovation and Technology Advisory Group (capped at 10)

Full access to all IP for R&D purposes (only) without royalty/license fee payable.

Option to, depending on relevance, staff key Growth Centre projects. Access to IP for Commercialisation with royalty payment.

Target of 20 members to raise $1m per annum

Tier 3: Mid-sized organisations

$10,000 Collectively able to appoint at least 3 members of the Innovation and Technology Advisory Group.

First and last right to staff Growth Centre projects and collaborate first hand with Tier 1 and Tier 2 Members.

Access to IP for R&D and Commercialisation on payment of royalty/ license fee.

Target of 50 members to raise $500,000 per annum

Tier 4: Small organisations

$1,000 Collectively able to appoint at least 2 members of the Innovation and Technology Advisory Group

First right to staff Growth Centre projects and collaborate with Tiers 1, 2 and 3 members on these projects

Target of 100 members to raise $100,000 per annum

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• Manufacturing Export intensity increases

• Manufactured Products/ Services value (and associated margins) increase

• Manufacturing industry growth rate stabilizes and then grows

• Demand for STEM skill-based jobs increases

• IP Relevance and sharing increases

• National psyche on manufacturing industry increases

What does Advanced Manufacturing Growth Centre success look like

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Advanced Manufacturing in AustraliaTowards increased Competitiveness and Growth

Overview of our Growth Centre Operating Model