Business Adviser – Resources Innovation Centre

Katherine May 2014

Mark Osborne

Assistance for SMEs

Safety First

METS refers to the Mining Engineering and Technology & Services sector

2013 value of the sector in Australia was estimated to be around $90 B

80% of mine lifecycle costs are in operations – SME

focus??

$27 B is estimated to be the value of exports

55% of METS firms identified themselves to be exporters

This includes the big construction and engineering

companies

The METS Sector

Entering a resources supply chain

There are NO vacant niches

• For you to win • Someone has to lose

SMEs must understand the project risk that this creates.

Your job is to mitigate project risk

Business Reviews

Resources Industry Supply Chain Index (RISCI) - Assesses operational

capability / market readiness to enter the resources sector supply chain

A pre-prequal

Resources Connect Education Program – excellent for “newbies”

1st ENGAGEMENT ELEMENTS

How can the Feds assist?

2nd ENGAGEMENT ELEMENTS

Resources Sector Supply Chain Panel - Connects SMEs with

experienced procurement and technical leaders in the local supply chain

Enterprise Learning – Themed workshops around specific topics being

addressed by the participants

Relationship Management workshops

RESOURCES INDUSTRY SUPPLY CHAIN INDEX (RISCI)

Enterprise Connect developed the RISCI diagnostic to assist businesses

assess readiness to participate in resources sector supply chains

Measures:

Management and process capability required by the resources sector

Market readiness required to enter the resources sector

RISCI Take Up:

Individuals or groups

Over 500 firms have participated in the RISCI assessment

Delivered throughout Australia

GROUP REPORT

RESOURCE INDUSTRY SUPPLY CHAIN INDEX

(RISCI)

For: Katherine Oct 2nd 2013

By: Neil Platt

Date: 25/09/2013 – summary of 5 firm workshop

92

……

…

RESOURCES CONNECT

Resources Connect has been developed by Enterprise Connect with Mt Eliza

Business School at the University of Melbourne – specifically for SMEs

To assist SME’s understand the resources sectors, the Tiers, the Project

Phases and their own business in relation to these

Consists of a half day overview and 3 x 2 day modules:

1) Pre-qualification & tendering

2) Obtaining finance & managing risk

3) Collaboration and industry relationships

RESOURCES CONNECT COURSE CONTENT

• Financial Management

• Risk Management

• Business Model Canvas

• Value Proposition / Pitch

• Pre-qualification and Tendering

• Collaboration and Alliance Building

• RISCI sessions

• Resources Sector Supply Chain Panel

http://www.youtube.com/watch?v=SMFcfb5HmjQ

National Pilot (SA) was completed in 2013 and ten cohorts planned

to be delivered nationally over 2014-2015.

Program

3 x 2 day Workshops

$2,000 plus GST

Firms that have completed an Enterprise Connect Business Review will

be able to access their TAS grant to co-fund participation at the course.

Resources Connect

The Relationship Management Matrix is a tool to evaluate the

relationship between a Customer and a Supplier and measures

perceptions of:

• Communication: Information Exchange; Problem Solving; Responsiveness

• Capability Management: Through-life Capability; Strategic Alignment

• Continuous Improvement: Best Practice; Performance Management;

Process Improvement; Change Management; Innovation; Prod/Serv Development

• Business Management: Commercial Relationship; Contractual Agreements;

Risk & Opportunity

Relationship Management Workshops

Where are we?

0

1

2

3

4

Failing Reactive Performing Cooperative Collaborative

Failing

Reactive

Performing

Cooperative

Collaborative

Rel

atio

nsh

ip M

atu

rity

Lev

el

• Evidence of disagreement • Potential failure to meet targets • Lack of effective meetings/reviews • Fire fighting • Differing planning & reporting • Ritualistic practices • Resourcing problems • Contract claims/issues

• Positive individual behaviours

• Non-strategic

• Some performance targets achieved

• Changes planned

• Task-based organisation

• Stable resources

• Positive team behaviours

• Headline strategy identified

• Contracted performance targets achieved

• Targeted improvement activity

• Effective relationships at all levels

• Strategic dialogue initiated

• Effective conflict management

• Resource development activity planned

• Joint teamwork

• Single set of agreed strategic objectives

• Common project planning

• Evidence of achieving joint targets

• Joint development activities

• Collaborative behaviours

• Joint long-term strategy agreed

• Mutual business targets

• Positive results achieved from joint development

activity

• Performance incentivised

There are opportunities in the sector for those businesses that have an

appetite to do what it takes

Business capability readiness

Market readiness

Business development

Operations and maintenance phases may be a better fit than

construction phases

SME Resource Sector Readiness

mark.osborne@industry.gov.au

0420 961 294

www.business.gov.au

Watch this Space

Entrepreneurs’ Infrastructure Programme

Coming soon

Services will be maintained through the transition