Corporate Planning T he Next Generation

1. Corporate PlanningThe Next Generation December 2009

2. Corporate Planning Team • Don Wilford, Doug Wright • Greg Fitzgerald • John MacRitchie • Jenni Myllynen • Christina Machowski • Ran Manor • Karen Temple • Julie Pelletier • Naomi Wall

3. Corporate Planning Charter • Purpose: To synthesise market, business, and other relevant information and trends, as well as OCE performance, and provide mechanisms to maintain operational and strategic plans and guide the deployment of resources. • Scope: OCE planning activities 3 month deliverables • Summary of strategic planning to date • Corporate Communications Plan • Strategic Framework including logic model • Strategic Objectives • Corporate planning cycle • Summary of team activities and operations framework • Revised Strategic Outlook

4. State of the Nation Town Hall Comments: • Corporate Planning – there’s general lack of awareness • Stakeholder engagement – where is it? • Strategic Forecasting –it’s a good idea and it needs to be a continuous cycle • OCE’s goals – need to be clear, aligned throughout the organization, and there should be accountability • OCE / Organization – a lot of questions

5. OCE’s Goals – Help! 2006-09 Strategic Plan • IACP Manual • 2010-15 Corp Bus Plan • Drive economic prosperity in Ontario • Develop the next generation of innovators and entrepreneurs who will enable Ontario companies succeed in the knowledge-based global economy • Establish, facilitate and champion a culture of innovation in Ontario • Establish OCE as a partner and employer of choice • Goals: • Strategic Imperatives: Strategic Goals: • Leverage the capacity of research institutions to create prosperity • Strengthen industry-academia collaborations • Accelerate research discoveries to the marketplace • Commercialize IP and strengthen commercialization mechanisms • Improve the commercial skills of the next generation of innovators and entrepreneurs • Establish partnership and collaborative processes • Optimize investments in OCE programs • Be an employer of choice • Benchmark best practices and exceed client expectations • Engagement strategy for higher visibility and program investment • Embrace independent third party audit and evaluation

6. OCE’s Competitive Landscape – • From Perfect Calm to Perfect Storm Competitors ORCP IAF, ETF IDF NCE NSERC MaRS OCE Colleges MEDT Customers Suppliers Universities MRI RICs SICs HTx GreenChem DM 2004 2009 New Entrants

7. OCE must define a Compelling, • Defensible Niche - Talent $1,000M OCE is a 0.1% player Private Sector $100M Education Commercialization - CCR ETF MTCU IAF NSERC CIHR $10M ORF BAP It must develop a compelling, defensible niche Talent And rigorously avoid creeping scope Academic Research Discovery IDF IRAP Other Industry Research Private Sector

8. Task Force on Competitiveness, Productivity and Economic Progress In Ontario, for Ontario, by Ontarians… • Roger Martin – Rotman School • Jim Balsillie – RIM • Timothy Dattels – Newbridge Capital • Lisa de Wilde – TV Ontario • David Folk – Jefferson Partners • Suzanne Fortier – NSERC • Gordon Homer • David Johnson – UofW • David Kettle – National Compressed Air • Mark Mullins – Veras • Tim Penner – Proctor and Gamble • Daniel Trefler - UofT Members: Mandate: • Announced in the April 2001 Speech from the Throne • To measure and monitor Ontario’s competitiveness, productivity and economic progress. • In the 2004 Budget, the Government also asked it to incorporate innovation and commercialization in its mandate Achievements: • Eight Annual Reports • 12 Working Papers • Six Reports on Canada

9. Ontario’s Prosperity Gap is $75 Billion – 2/3 is OCE-Addressable But our traded industries aren’t innovative and competitive. The shortfall is equivalent to $51 billion in GDP Prosperity Gap $7,000 or 13% of median GDP per capita Or $75 billion in GDP Ontario’s mix of industries and its potential to drive productivity and innovation is good

10. Almost all Ontario’s Industry Clusters under-perform

11. Ontario is under-funding its Knowledge-Based Economy by 20% Canada’s recession in the 1990’s coincides with the start of the “knowledge economy” Although somewhat recovered, Ontario’s under-spending on education is now $680 per capita At the end of the recession, healthcare spending takes-off. Spending on education stagnates

12. OCE’s Addressable Market OCE’s Addressable Market is Masters Students working in areas relevant to industry. Ontario is under-performing peer states by a factor of 2:1

13. Yes We Can Make a Difference – OCE Can be a 10% Player • OCE could invest between $33.5million (current) and $200million – a range of almost 6 • GDP Equivalent Outcome is between $220million and $3,500million – a range of 16 • ROI ranges between 6.6x (current) and over 18x • OCE could close 10% of Ontario’s innovation gap per annum

14. Ontario Centres of Excellence OCE provides MRI the way to deliver funding into the Ontario academic research community with immediacy and commercial focus, guaranteeing alignment with the O.N.E and the Ontario Innovation Agenda • Value Proposition: • Mandate: • To connect Ontario industry to academia to unleash its commercial potential • Vision: • “Where great minds meet to create prosperity” • Mission: • To unlock the commercial potential of Ontario’s academic research capability to create prosperity through innovation

15. OCE’s Strategic Framework Partners RICs/SICs MaRS MRI Other Strategic Goals Programs Innovation Economic Impact Delivery Effectiveness Client Satisfaction CCR BAP ONIP IACP OCE Mandate Value Proposition Vision Mission Values Governance Strategic Objectives Strategic Objective 1 Strategic Objective 2 Strategic Objective 3 Strategic Objective 4 Client Focus

16. The Next Generation To boldly go where no one has gone before…