8 July 2015: UK Defence Solutions Centre overview
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This document outlines the strategy and approach of the UK Defence Solutions Centre (UKDSC) to increase UK defence export sales through innovation and collaboration. The UKDSC operates in the pre-competitive space to strategically plan and develop export defence markets. Its goal is to significantly increase UK defence export sales by analyzing customer and market requirements, developing solutions through open innovation, and building partnerships. The UKDSC is creating an innovation ecosystem through challenges and competitions to attract investment, develop dual-use technologies, and scale up solutions to meet defence needs while also unlocking economic benefits. This ecosystem is modeled after private equity funding stages and aims to deliver prosperity through scalable innovation.
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8 July 2015: UK Defence Solutions Centre overview
- 1. July 2015 James Allibone Strategy Director, UKDSC UK Defence Solutions Centre “Leading innovation in UK defence capability to deliver export growth”
- 2. Page 2 Economic and political context • Economic perspective • Defence perspective • Industrial perspective
- 3. Page 3 The global market opportunity 2
- 4. Page 4 The UK’s Defence Growth Partnership “UK government and industry working together to meet the needs of customers around the globe”
- 5. Page 5 What is the UK Defence Solutions Centre? • Newly established part of the UK’s Defence Growth Partnership • Responsible for strategic planning and development of export defence markets • We operate in the pre-competitive space • Our goal is to significantly increase UK defence export sales
- 6. Page 6 Delivering our goals Customer requirements Market analysis Solutions Open innovation Capability development Roadmapping Partnering Market interventions UKDSC innovation and collaboration Ecosystem for growth
- 7. Page 7 Our ecosystem Customer requirements and market analysis Solutions and innovation Capability development Partnering and interventions
- 9. Page 9 Our approach Responsive Systemic Strategic Building the new UK defence innovation ecosystem to create a new, enabling business as usual: increase UK ‘pwin’, enable investment, improve productivity UKDSC provides support to winning new business in the 0-5 years window Targeted, proactive engagement with key countries where a partnership approach could deliver substantial economic benefit
- 10. July 2015 Paul Winstanley Innovations Director, UKDSC Approach to innovation
- 11. Page 11 Recent responsive activities
- 12. Page 12 Strategic activities - innovation • Innovation can deliver battle winning capability • Innovation can delver highly differentiated products and services to enhance our export propositions
- 13. Page 13 Positioning open innovation From: Pre-commercial Procurement: Driving Innovation to Ensure High Quality Public Services in Europe State Aid Open Innovation Breadth of activity available to SBRI Traditional Defence Research
- 14. Page 14 Defence Entertainment Paradigm has changed: Now we innovate to deliver defence capability Smart cities SpaceGaming Pharma Internet of Things Motor sport Automotive
- 15. Page 15 Effect of the paradigm shift Market Application Domestic International Defence use only Dual use Multi-sector Attractiveness to external investors Open innovation to meet defence needs Highly capital intensive developments specifically for defence
- 16. Page 16 Creating the innovation ecosystem - UKDSC’s purposeful approach to enabling investment Innovation Challenges Dual-use technology exploitation External investment Form network Exercise networkIdentification SBRI competitions 100% govt funding £1m – £5m staged Initial validation Leverage investment Companies enhance IP Scale up grants 50/60% govt funding £10m – £20m Enhanced exploitation paths Value-chain creation Validated market need Network established Equity investment UK and foreign direct inv Potential £50m – £100m+ Benefit: scalable innovation ecosystem Analogous to private equity funding: Seed Series A Series B Investment opportunity Meets defence needs Unlocks investment Delivers prosperity agenda
- 17. Page 17 This ecosystem is already live: UKDSC Innovations Challenges – To meet UK defence needs and have export market potential Plus further SBRI-compliant Innovation Challenges to come
- 18. Thank you
- 19. Innovation Network event 8 July 2015
Notes de l'éditeur
- Economic Perspective UK Government’s priority is to reduce the fiscal deficit, achieve economic growth, and significantly grow exports The Prosperity Agenda, Plan for Growth and Industrial Strategies are a central part of rebalancing the UK economy Defence Perspective MOD is committed to providing the Armed Forces with the best capabilities we can afford from the “open” market. MOD relies on the UK defence sector for many of these capabilities and thus on the sector’s ability to retain an innovative and competitive edge. Industrial Perspective Defence sector is going through a very challenging period with defence budgets decreasing and competition increasing
- The DGP has consciously chosen to address these target markets, as being both valuable, but also closest match to UK defence industry capabilities £6.5 bn per year - UK Defence Exports in last 10 years1 £9.8 bn - UK Defence Exports in 20131 £82 bn per year - forecast global spend2 Air Capabilities / Intelligent Systems next 8 years These are the primary target export markets for the DGP
- Quote line – that includes the MoD
- The UKDSC is a newly established, independent integral core component of the UK’s Defence Growth Partnership The UKDSC is our country’s strategic planning and development organisation for our defence industry; designed to enable UK businesses to win significant new business in export defence markets We operate in the pre-competitive space, fostering collaboration, understanding customer needs and developing concept-level solutions. As a result UK DSC has no motivation or aspiration to own IP Our ambition is to create a step change in the UK’s ability to address global defence markets; bringing the very best that the UK has to offer to deliver winning solutions to meet MoD and export customers’ needs
- Emerging view of customer needs Innovative Solutions thinking informed by comprehensive view of UK capabilities New, or enhanced capability required to meet market need is defined by gap analysis Wider engagement in UK value chain brings new, preferably disruptive capabilities into the mix Enhanced capability “palette” from which to develop innovative solutions Opportunity to shape nascent customer thinking, show “art of the possible” and showcase “Big Ideas”
- Stats of the DSC expertise
- SB
- An element of our activity is to respond to export need. Recently, we had an early stage requirement for a border security. Within three weeks we had solicited a broad input form 15 major companies and 66 SMEs. What this demonstrated was a comprehensive UK capability that positioned us well for the next stage of engagement. Of course when we are developing export potential we ideally need UK MoD engagement in some capacity to establish our credentials. We also need differentiated offerings and this is our interest in the innovation challenge. We see this as a key enabling actvity for us. As a consequence of our structure and mission we have a strong position to accelerate the exploitation of the innovation challenge outputs into real export opportinities
- PW
- Holding slide. [NEXT]