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Collaborative Commercialisation

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  1. Collaborative Commercialisation Defence+Industry Conference 2014 Mark Hodge - CEO

  2. DMTC Operational Context Vision: To provide technology solutions enabling industry to enhance Australian Defence capability. Mission: DMTC leads, facilitates and manages cooperative research in the defence sector in materials, manufacturing & related themes, with the Defence customer, industry and research sector as key stakeholders. Strategic Intent: CAPABILITY THROUGH COLLABORATION Corporate Structure: Public Company. Not for Profit. Limited by Guarantee Resources under management ~$87M (incl. $30M DMO – IndDiv) over 7 years from July 2008 “Core” ~$23M (incl. $7.5M Land 125) over 5 years from Jan 2011 “Program 7”

  3. Full Participants

  4. Supporting Participants

  5. Additional Client Organisations CAPABILITY THROUGH COLLABORATION

  6. The Numbers • 5 Programs acrossAIR, LAND and SEA Domains containing • 34 Active Projects delivering new technologies and manufacturing processes • 680people directly involved in DMTC activities from 32 Participant organisations • $110 Million totalresources on improving capability • includes $38M Defence - balance from Industry & Research sectors

  7. Defence R&D perspective INDUSTRY My product can do everything you need Has to be small, lightweight & 99.99% reliable • Profit motive: no profit = no product • Contract tenure/certainty • Needs S&T “as advertised” I need security of contract to innovate Has to be best of breed. Have to have it now. Listen mate – I define the requirements I need flexibility to work out the kinks in my product If you push long enough, they’ll come around Can’t field it without ACIB endorsement USER • Capability driver • Systems approach • Budget constrained • Acquisition strategy • Risk aware Customer’s role is to integrate, commercialize – I’ve moved on You don’t get it- this project is unique – I need more time, money I’ve been doing this for years – I don’t need program management • Driven by threat environment • Soldier-proof • Operational-requirement • Time critical (deployment) • Fieldable, modular, flexible Best value = cheapest acquisition. Sustainment challenges come later We need to risk mitigate –COTS, MOTS The next DCP funding window is 7 years away S&T • Goal is maximum utility of tech. • Riskis inherent • Best case: cost, schedule estimate I need to see the requirements definition case Program Mgr

  8. Elements of a DMTC Program Other Elements: • Balance between financial, capability and national security impacts • Appropriate balance between “R” and “D” • Natural progression of expertise from materials, manufacturing and related themes. • Appropriate balance in contributions: • Cash & in-kind • Defence & non-Defence funds

  9. Land Domain Achievements • Industry/commercial impact of DMTC research is confirmed • Strong enthusiasm from Industry - proactive engagement • Integrated Power Generation and Storage • Fuel cell prototype demonstrated as having charging • capacity to reduce battery weight burden on a 72 hour • patrol by 75% • Soft Armour Fabric Design and production capability • Light weight neck and shoulder protection with snap on/off design developed to augment tiered body armour system Hard Armour technology now in procurement • DMTC B4C technology now integrated into body armour • Cheaper, local manufacturing and design capability • Next evolution of technology to support even better capability

  10. Cross Program Benefits • Air Warfare Destroyer • Investment in new panel line utilising new DMTC technologies, resulting in: • Increase in deposition rates • Reduction or elimination of plate distortion • 10,000 hours of rework eliminates per module • Bushmaster • Automated and rapid off-line programming for robot-on-robot production welding cell resulting in up to 70% savings in the time it takes to reconfigure automated assembly activities of armoured platforms. • 10

  11. Program maturity Curved B4C armour D4 pilot processing Monolithic lightweight armour shells

  12. Program maturity cont… Titanium machining – how to guide Lightweight power AOLP & automated welding suite

  13. IP Management • Robust Model – geared towards rapid utilisation of technology • Participants: Automatic, royalty-free & non-exclusive rights to project IP • Industry Participants • Generally not funded in projects • Benefit derived through greater competitiveness, supply-chain integration, ability to commercially exploit IP • Research Participants • Receive bulk of funding for projects • Are not permitted to commercially exploit IP • RestrictiveCovenants: • IP use is Field Limited & restricted to local entity only on royalty-free terms • Project Based • Minimum contribution required to trigger access

  14. Supply Chain Collaboration Model 2 Research Organisations and 5 Universities: 11 Industry Participants 14

  15. Program linkage

  16. DMTC Project TRL Map DMTC also conducts projects that feed directly into platforms and production lines e.g. automated welding (Bushmaster) DMTC conducts some fundamental research activities where required in order to support applied outcomes e.g. new material characteristics Bulk of DMTC projects operate through mid-level TRL’s (TRL 3-4 up to around TRL 7-8) in the so-called “Valley of Death” “D” “R” Balanced Programs

  17. SRL-TRL Progression Mature Relevance, user acceptance, Competitive edge, national industrial capability System Readiness Level 5 Valley of death Immature Mature 5 Immature Technology Readiness Level

  18. SRL-TRL Progression Managed Progression up to June 2013 Mature 7.1.1 Ceramic plate 7.1.2 Helmet 7.2.1 Neck & Shoulder 7.4.1 Fuel Cell System Readiness Level 5 7.4.3 Energy Harvester 7.3.1 Improved Fabrics 7.1.1 Deltoid 7.1.2 Semi-rigid 7.4.2 Deakin Energy Storage 7.1.2 Polymer Ceramics 7.2.1 Uni-axial Immature 7.4.2 Deakin Energy Harvesting 7.2.1 Uneven Weave Mature 5 Immature Technology Readiness Level

  19. Contributions Non-cash contributions (arbitrary units) Industrial involvement increases with project maturity

  20. Thank you • Mark Hodge – CEO Level 2, 24 Wakefield Street Questions, discussion Hawthorn, Vic 3122 Australia Email: mark.hodge@dmtc.com.au Ph: +61 (3) 9214 4447 Fax: +61 (3) 9818 0622