Assessing Defence Industrial Capabilities. Industry Forum Sydney

Transcription

1 Assessing Defence Industrial Capabilities Industry Forum Sydney 19 December 2016

2 Today s Agenda Welcome and Introduction The Defence & Industry Landscape Delivering the Defence Industrial Capability Plan The Survey Centre for Defence Industry Capability (CDIC) Questions from Industry 2

3 Developing the industry we need to achieve our strategic and capability goals The Defence Industry Policy Statement (DIPS) reset the Defence industry partnership and set out the initiatives key to success. Guided by four principles Australian industry must competitively meet our capability needs Opportunities for Australian industry capability programs will be maximised Defence will collaborate with industry, states and territories to strategically plan and develop Australia s industrial base Australian industry is a fundamental input to capability 3

4 The Defence and Industry Landscape: where are we now? Australian Industry as a Fundamental Input to Capability is being institutionalised across Defence Industry support mechanisms, including the Centre for Defence Industry Capability Harnessing Australian innovation to maximise Defence capability Strengthening Australian Industry Capability policy 4

5 What have we learned from previous industry support programs? Industry policy frameworks should be: Easily understood Robust, dynamic and flexible Responsive to the strategic environment Reflective of defence requirements Inclusive of meaningful and readily accessible support options 5

6 The Project: Delivering the Defence Industrial Capability Plan OUR VISION: Developing a 10 year strategic plan through the Defence Industrial Capability Plan: growing and developing Australian industry to deliver the Integrated Investment Program (IIP) identify and support Sovereign Industrial Capabilities (SICs) coordinated investment in skilling and STEM programs. 6

7 The Project: Delivering the Defence Industrial Capability Plan OUTCOMES: A high-level quantification of the gap between Defence requirements and industry capability Defence s support plan for industry, including STEM and skilling A logical, repeatable method for identifying Sovereign Industrial Capabilities (SIC) via the SIC Assessment Framework (SICAF) MAJOR MILESTONES 2 nd Qtr 2017: Draft SICAF and DICP presented to Government Mid-2017: Ministerial announcement 7

8 The Sovereign Industry Capability Assessment Framework (SICAF) A framework Identification of capabilities requiring sovereign control Driven by ADF needs Sovereign Industrial Capabilities (SICs) What does this mean for Defence? What does this mean for industry? Noting: There are likely to be a small number of SICs (10 or less) The SICAF will be enduring, the SICs will be subject to change Not being classified a SIC does not diminish the importance of a particular capability 8

9 Our approach to SICAF / DICP development Our first attempt at providing direction to Defence and industry for the delivery of: A common understanding of industry as a FIC Investment and growth opportunities for industry Identification of Australian industry capabilities to support the Integrated Investment Program Sovereign Industrial Capabilities Further iterations of the DICP will respond to developing strategic requirements. 9

10 How Defence is dealing with industry - AIC We are strengthening the Australian Industry Capability (AIC) Program: AIC Plan Priorities deliver the best capability, at the best price, while maximising Australian industry involvement demonstrate how Australian industry has been considered demonstrate how opportunities will continue to be provided in contract provide Australian industry with global supply chain opportunities The industry baseline activity will be used to inform the AIC 10

11 What is industry s role in this initiative? Who? Anyone who contributes to the business of Defence: Primes, SMEs, aspiring Defence industry, academia and research organisations, industry bodies Initial opportunity: Participate baseline activity, insights, knowledge Investigate Centre for Defence Industry Capability Longer term opportunity: Use the DICP to look for opportunities Contribute to shaping the future 11

12 Our approach to SICAF / DICP development Research and analysis of relevant, existing policies and frameworks used in Australia and around the World Produce Defence Industry Capability Plan In-depth analysis of the Integrated Investment Program Defence and industry respond to capability surveys Evaluate analysis outcomes and survey data: Is there a gap between capability Demand and Supply? Iterative development of the SICAF: structure, characteristic, evaluation criteria testing Design Sovereign Industrial Capability Assessment Framework Identify Sovereign Industrial Capabilities Nov 2016 Mid

13 Industry Survey Survey Objective: to develop a baseline of industrial capabilities available in Australian industry, in order to: Identify opportunities for industry within Defence Provide direction to Defence on how to use industry as an FIC Inform a gap analysis of Defence demand vs industry supply We want as many respondents as possible - current and aspiring suppliers to Defence, across all tiers of the supply chain Respondents can select up to 10 capabilities which you generate or believe you are capable of generating we want to capture both current and future capabilities. This is your opportunity to demonstrate what Australian industry is capable of 13

14 Completing the Survey Step 1. Provide Company Information High level company information (check boxes and text boxes) ABN / company name No. of employees Ownership % defence vs non-defence workload annually Certifications held R&D spend 14

15 Completing the Survey Step 2A. Select the Defence Relevant Industrial Capability Multiple drop down menus used to select the appropriate DRICs as they apply to your company s current and emerging capabilities. For example, submarine maintenance work: 15

16 Completing the Survey Step 2B. DRIC Questionnaire For each DRIC, respondents have to answer 7 questions, designed to provide a high-level understanding of industry s capabilities, including level of capability, access, location of capability and estimated value of capability. This is not the end of the analysis the results of the survey will give us clues for what comes next 16

17 Centre for Defence Industry Capability Centre for Defence Industry Capability (CDIC) will work with industry to drive strategic partnerships with Defence, and build Australia s defence industry. The DICP will be delivered and updated through the CDIC. The CDIC is how we will deliver new initiatives. The CDIC is located within AusIndustry, and will ensure initiatives align with other whole-of-government services to industry. 17

18 CDIC Leadership We are bringing our industry partners into the tent. The CDIC s Advisory Board will be co-chaired, representing our commitment to working closely with industry to provide strategic leadership to the sector. Mr Kim Gillis Defence chair Mr Paul Johnson Industry chair CDIC Advisory Board Co-Chairs The CDIC Advisory Board will help guide the DICP Project. 18

19 What the CDIC will deliver Defence capability needs The CDIC will deliver services across 3 streams Industry Development Defence Business Competitiveness and Exports Industry capability mapping Training & sector-based skilling Advisory and Facilitation Capability Improvement Grants Export Facilitation and Advice Sample services Facilitating Innovation Innovation Portal Commercialisation advice Connect with researchers 19

20 A national approach The Centre will be headquartered in Adelaide, with a staff made up of experts from both the public and private sectors. This team will form a national advisory network. 20

21 The CDIC and Sovereign Industrial Capabilities From the CDIC s perspective, Sovereign Industrial Capabilities will inform where we engage, and prioritise how services are delivered to industry All defence businesses can engage the CDIC Sovereign Industrial Capabilities will evolve CDIC will work with Defence to inform how Sovereign Industrial Capabilities are developed Our aim is to ensure that businesses servicing Sovereign Industrial Capabilities are capable and sustainable 21

22 Thank you. Let s keep talking. Register for updates on the CDIC, Innovation Portal and Hub: business.gov.au/cdic Phone AusIndustry: Complete the Survey: Key Contacts Name Position Mobile Dr Dylan Nagle Project Director - Defence dylan.nagle@defence.gov.au Adam Seedsman Centre for Defence Industry Capability (CDIC) adam.seedsman@industry.gov.au Mike Kalms KPMG - Project Lead mkalms@kpmg.com.au Millie Keating KPMG - Industry Supply and Engagement Lead mkeating@kpmg.com.au 22

23 What is a Sovereign Industrial Capability? Page 23 of the Defence Industry Policy Statement says: Some Defence Capabilities are very important to the defence mission they must be supported by Australian Industry. the industrial base associated with that Defence Capability should be supported. What can we deduce from this definition? 23

24 Criteria for a Sovereign Industrial Capability Page 24 of the Defence Industry Policy Statement says: The following criteria, applied collectively, will form the basis of the SICAF: Protection of intent Independence of action Assurance of supply Essential skills retention This concept of Sovereign doesn t mean that all industrial capabilities will be wholly maintained within government or Defence. Interoperability limits and benefits Leveraging competitive advantage 24

25 What is an Industrial Capability? According to page 23 of the Defence Industry Policy Statement, an industrial capability in the defence context is: any information or knowledge; technology or technology application; invention or innovation; platform, system or equipment; profession, skill or discipline; that can be provided by Australian industry to enable the ADF to deliver a military effect or for Defence to achieve a Defence capability outcome. 25