Budget and Strategic Plan FY 2008/9 David Phaho Presentation to the

1. Budget and Strategic Plan FY 2008/9 David Phaho Presentation to the PORTFOLIO COMMITTEE ON SCIENCE AND TECHNOLOGY Date: 27 May 2008

2. Presentation Outline • Tshumisano’s Strategic Intent & Moral Purpose • Envisaged Outcomes for Business Plan FY 2008/9 • Programme Review for FY 2007/8 • Technology Stations and their scope • Performance Review FY 2006/7 – FY 2007/8 • SWOT Analysis • Business Plan for FY 2008/9 • Strategic Imperatives FY 2008/9 • Income and Budget Forecast : FY 2008/9 – 2010/11

3. Strategic Intent: To be within reach of every SME in the country through its Technology Transfer and related activities at Universities.

4. Moral Purpose To do what is right: The efficient and effective usage and deployment of public funds. To do what is worthwhile: Providing world class technology solutions and training to SME’s to enhance economic growth in South Africa.

5. Envisaged Outcomes for Business Plan • Increase the number and quality of SME’s assisted through referrals and linkages with other Agencies and Government Programmes. • Enhanced alignment with DST’s ten year Innovation Plan. • Enhanced Human Resource Development with specific emphasis on Internship Programme and Student involvement • Continuous Improvement to mitigate Structural Inefficiencies within the Trust.

6. Why SME’s?? • SME’s generally have higher growth tendencies (sales, turnover, jobs) than larger firms • SME’s accounts for a disproportion number of gross jobs created • Benefit of Economics of Scope rather than Economics of Scale – nimble and shielded from Exogenous shocks • Tends to be more Innovation intensive than large firms Ref. Schreyer, P. 2000. High Growth Firms and Employment, OECD Science, Technology and Industry, Working Papers, 2000/3

7. Technology Stations Programme PROGRAMME REVIEW for FY 2007/8

8. Technology Stations and Their Scope

9. Agro Processing and Chemical Cluster • To Support the Chemicals and the Agro-Processing Industry. • Formulations, Pharmaceutical and the Natural/Indigenous Products, Detergent & Paint . • Testing and analysis in manufacturing low-end products.

10. Primary Manufacturing Cluster • The secondary manufacturing cluster focuses on advanced manufacturing and value adding services within three critical industrialized sectors • Specialises focus is in product development and prototyping • Application of Smart materials, textiles and reverse engineering

11. Secondary Manufacturing Cluster • This is a support cluster , with service of system automation and processing of materials. • Material compositions and casting (foundry) solutions.

12. Performance Review FY 2006/7 -FY 2007/8

14. Type of Technology support from TSP First six months of FY2007/08

15. 20% compound increase of Technology Stations clientele = aprox. 1300 Technology base SME

16. Product Development Example

17. Adept Airmotive Ltd and Three Technology Stations Consortium (CUT, TUT and UJ) • Technology Transfer • Product Design & Development • Development and Application of New Technologies • Mechanical / Materials Testing Services • Project Management • Process Control and Monitoring • Customized Education and Training • Quality • System Analysis and Design • Part of South Africa 1st Light Aircraft Engine Development • Tooled, Manuactured and Tested in South Africa • Worldwide Inquiries

18. SWOT Analysis

19. PositiveNegative

20. Business Plan for FY 2008/9

21. Strategic Plan Summary 2007 - 2011

22. Impact - Indirect benefit Economic growth, wealth and employment creation, increased black and female business participatory and productive citizenship Attribution Gap Programme Objective Strengthen the Network of University based instruments servicing technology based Small and Medium Enterprises (SME’s) for participation in industrial value chains and promoting high growth economic sectors • At least one Technology Station (TS) established in one of the 3 remaining provinces and planning phase underway for the other 2 provinces. • At least 10% of academics and consultants working on Tshumisano Projects engaged on Research to pursue Masters or Doctorates in Science and Technology (Engineering) by the end of 2009/10 (baseline 2007). • At least 2500SME’s assisted annually by Technology Stations and Institutes of Advanced Tooling (IATs) from 2007 until 2009/10 • All government SME development and funding agencies and 1 in every 2 technology based SME’s aware of Tshumisano and its services. • Tshumisano occupying a permanent seat or allocated a permanent focal person in the Higher Education South Africa (HESA) and at least featuring once a year on the Agenda of the Council/Exco and reflected on the Annual Report of HESA by 2009. • All Tshumisano driven activities are meeting equity targets of at least 85% black people, 54% woman and 4% people with disability. Programme Indicators 1.Human Resource Development 2. Smart Industries 3. Institutional learning and development 4. Economic value added Components The level of Skills Development and Training at Tshumisano Initiatives enhanced Technology based SME’s initiatives supported in adding value to enhance the competitiveness of their products The facilities of Tshumisano developed and fully utilized and the capacity of its employees and project leaders enhanced Tshumisano Trust activities strategically aligned with other stakeholders and promoted and marketed amongst target group Component Objective • 50% of the Universities (with TS/IAT’s) receiving funding from National Research Chairs. • 50% training offered by the Technology Stations are fully Sector Education and Training Authority (SETA) accredited. • At least 85 interns admitted with the Technology Stations Program (TSP) per year and 80% of them placed in industry or becoming entrepreneurs within 6 months after training. • At least 100 SME’s products tested or developed per Technology Station per year as from 2007 to the end of 2009. • At least 10 SME’s secured contracts on tested products by stations by the end of 2009. • At least 12 products/tools designed, prototyped and tested per IAT per year. • At least each TS working in collaboration with another on a specific project. • 70/30 ratio usage of equipment by TS’s between SME related projects and University Research and Development (R&D) projects. • All staff members registered for academic qualifications and short courses and 80% successfully completed. • Tshumisano listed as a public entity by end of 2009 • 20% compound increase of Technology Stations clientele • One project implemented in collaboration with at least one stakeholder and/or agency • At least 8 SME’s referred to each Technology Station per year by another agency • 20% annual increase in number of products, processing or services in the economy Component Indicators

23. Strategic Imperatives for FY 2008/9

24. Human Resource Development: • At least three (3) Technology Stations accredited with their respective SETA • At least 120 interns admitted with the TSP program and 80% placed in industry • Increase the Human Capacity at the Technology Stations and the IAT’s to ensure increased output for the program.

25. Smart Industries: • At least 100 SME’s products tested per Technology Station • At least 5 SME’s secured contracts on tested products per station • At least 12 products/tools designed, prototyped and tested per IAT • Additional Technology Stations (Mpumalanga and Northern Cape) -depends on availability of additional funding

26. Institutional Learning and Development : • Assist the Technology Stations within the clusters to work in collaboration with each other • Implement equipment audit with equipment usage log sheet at Technology Stations and IAT’s • All staff members at PMU and Centers registered for academic qualifications and 80% successfully completed

27. Economic Value Added : • 20% increase on Technology Station clientele measured against targets for FY 2007/8 • Increase number of projects in collaboration with other agencies, measure against numbers from FY 2007/8 • Initiate a national marketing campaign for all stations to ensure uniformity and management of all marketing channels from the PMU.

28. Income Statement and Budget Forecast FY 2008/9 – 20010/11

30. GTZ Contribution • FY 2008/9

32. Qua Vadis Tshumisano Trust?

33. Department of Science & Technology’s Technology Innovation Agency (TIA)

34. TIA’s Core Mandate: Nurturing Innovation for Sustained Economic Development and Growth

35. Basic Applied Tech Develop Transfer & Proliferation NRF IDC TIA Specialist Research Funds Venture Capital International Research Funds SEDA PBF Publications/new knowledge Patents/new knowledge products

36. “Anchor Tenants” within TIA • Tshumisano Trust – Technology Transfer and Diffusion from Universities to Industry • Innovation Fund- Funding for protection of publicly funded research outputs • Biotechnology Innovation Centers – Biotechnology research and commercialization activities • Advanced Manufacturing Technology Unit (CSIR) – Development of advanced materials technologies; product and process technologies; ICT and logistics technologies

37. THANK YOU!! Tshumisano Enterprise Centre, The Innovation Hub Lynwood, Pretoria Tel : +27(0) 12 844 0413 www.tshumisano.co.za “Enhancing SME competitiveness through technology”