Technology Stations Programme Strategic Plan and Budget FY 2006/2007 Presentation to the Portfolio Committee on Science and Technology 16th March 2006

Presentation Outline Tshumisano Mission and Vision Strategic Goals FY 2006/7 Programme Status Situational Analysis Proposed Budget FY 2006/7 Summary of Key Initiatives FY 2006/7 Questions

“TSHUMISANO” Vision Statement: Tshumisano Trust through its Technology Station Programme aspires to be the pre-eminent provider of world class technological solutions, services and training to SMME’s in selected economic sectors.

“TSHUMISANO” Mission Statement: Tshumisano Trust acts as an Implementation Agency for the Department of Science and Technology in improving the innovative capacity and competitiveness of SMME’s in selected economic sectors.

Strategic Goals for FY 2006/7

Marketing Strategic Goal: General Goals: Publicity, Advocacy and media exposure for the Trust and its objectives. Organize “All Africa Technology Diffusion Conference 2006” Establish Comprehensive Database for Technology Based BEE Companies – Mafube Publishing Alignment with other key government initiatives e.g. Export Africa 06 Exhibition (DTI)

Financial Viability Strategic Goal: General Goals: Cost recovery from Projects by Technology Stations. Prudent Equipment and Project Financing by Tshumisano Trust Management Linkages with other SMME funding Programmes to reduce Costs and Duplication.

National Footprint Strategic Goal: General Goals: Establish presence in under-served provinces e.g.. Agrifood Processing Stations in Limpopo and Mpumalanga Establishment of Satellite Station resulting from organic growth of existing Stations e.g. Automotives to Chemicals in Port Elizabeth

Alignment Strategic Goal: General Goals: Strategic Alliances with other Government entities –e.g. IDC, SEDA, Provincial Government initiatives Contribute to Development of Critical Skills e.g. Tooling, Graduate Internship placement

Skills Development Strategic Goal: General Goals: Contribute to National Tooling Initiative via establishment of Institutes of Advanced Tooling in key Provinces Placement of Graduate interns at Technology Stations and Selected SMME’s Strengthen interaction with Selected SETA’s via Technology Stations

Desired Outcomes National Economic Growth Objectives – The Tshumisano Trust through its Technology Station Programme is acknowledged for its seminal contribution to SMME and Skills Development, Training and Wealth Creation. Socio-Political Objectives - The Trust is seen to have made a tangible and concerted effort to increase the number of PDI and/or female owned, controlled and managed SMME’s serviced by the Technology Stations.

Technology Stations Programme PROGRAMME STATUS: FY 2005/6

Current Initiatives for FY 05/06 Continuous Improvement w.r.t. Reporting, Fiscal Discipline, Communication and Operational oversight of Station Performance Updated Grant agreements to focus on: Grant Fund Competitiveness Cost recovery Institutional obligations Proper Management and Reporting Structures Research on Technology Transfer and related aspects within the context of South African Tertiary Institutions Feasibility and Due diligence studies for Satellite Stations Roll out of IAT’s – Gauteng and Western Cape

Station Performance ¾ FY 2005/2006

Table from Business plan CPUT – Agrifood ProcessingWealth creation and a substantial increase in the number of sustainable SMME’s resulting in part from the intervention of Technology Stations. DIT – Moulded and Re-enforced PlasticsFinancial – Efficient and effective usage of resources in order to fulfill the trust’s core mandate. University of Johhanesburg – Metal casting and Foundry Technologies

Technology Stations Programme TOTAL EXPENDITURE: FY 2005/6

Situational Analysis FY 2005/2006 Table from Business plan CPUT – Agrifood ProcessingWealth creation and a substantial increase in the number of sustainable SMME’s resulting in part from the intervention of Technology Stations. DIT – Moulded and Re-enforced PlasticsFinancial – Efficient and effective usage of resources in order to fulfill the trust’s core mandate. University of Johhanesburg – Metal casting and Foundry Technologies

SWOT ANALYSIS Positive Negative Strengths Weaknesses Synergies between Trust initiatives e.g. Tooling and Technology Stations. Continuous support and endorsement by DST Program accessibility to variety of SMME’s in relevant sectors Rapidly expanding network of SMME’s served by programme World class staff component and equipment at Stations. Buy in from University of Technology management structures. Commendable project coordination and execution by the PMU. Inefficient cost recovery at stations Sub-standard performance at some Technology Stations Limited value adding projects by some Technology Stations Flawed reporting system from Technology Stations Low level of project and training output Inadequate research output leading - low level of technology diffusion to SMME’s. Low level of Universities of Technology staff input. Opportunities Threats Agri-food Processing Satellite Stations in underserved Provinces Expanding and alignment of new Tooling initiatives to other key Economic sectors  Automotives, Plastics Extending Trust’s initiatives to neighbouring countries in line with NEPAD objectives. Reluctance of SMME’s to pay for services Staff turnover at Technology Stations Low cost recovery from SMME’s at odds with sustainability concept Dilution of TSP impact within merged institutions e.g. UoJ, NMMU

PEST ANALYSIS Political/ Legal Economic Social Technological Government attitude towards research and Innovation Sectoral Economic Growth e.g. Automotive industry Number and Quality of students in technology orientated Education Lack of Technology Transfer/diffusion opportunities within Universities of Technology Funding from government agencies Global Competition e.g. Chinese clothing and textile, Tools Attitude towards payment for government funded projects (sense of entitlement) General lack of information about what technology transfer/diffusion entails Changing Government Priorities e.g. MIDP review Exchange rates impacting on capital equipment investment Slow pace of Technology assimilation by SMME’s Rate of Technology obsolescence Intellectual Property legislation for state funded entities Lack of Foreign Direct Investment affecting quality and quantity of Technology Transfer to local industries Government mandated socio-economic objects namely BEE legislation Universities of Technology applied research output Reluctance of other government agencies to collaborate with TRUST Alignment of TSP with key economic growth initiatives – e.g. Skills development, etc Reluctance of SMME’s to embrace Technology improve their competitiveness Technological input from University of Technology staff DST oversight: Strategic vs. operational Lack of local capacity to facilitate import substitutions

Business and Budget Plan FY 2006/7

Envisaged Outcomes for Business Plan Fiscal Discipline and improving Operational Efficiencies within the Trust and its Programmes. Measured Programme Expansion without diluting overall Impact. Enhanced Stakeholder Involvement and Accountability.

Proposed Budget for FY 2006/2007 Technology Station Programme Table from Business plan CPUT – Agrifood ProcessingWealth creation and a substantial increase in the number of sustainable SMME’s resulting in part from the intervention of Technology Stations. DIT – Moulded and Re-enforced PlasticsFinancial – Efficient and effective usage of resources in order to fulfill the trust’s core mandate. University of Johhanesburg – Metal casting and Foundry Technologies

Proposed Budget for FY 2006/2007 Institutes for Advanced Tooling Table from Business plan CPUT – Agrifood ProcessingWealth creation and a substantial increase in the number of sustainable SMME’s resulting in part from the intervention of Technology Stations. DIT – Moulded and Re-enforced PlasticsFinancial – Efficient and effective usage of resources in order to fulfill the trust’s core mandate. University of Johhanesburg – Metal casting and Foundry Technologies

New Organizational Structure 2006/2007 Table from Business plan CPUT – Agrifood ProcessingWealth creation and a substantial increase in the number of sustainable SMME’s resulting in part from the intervention of Technology Stations. DIT – Moulded and Re-enforced PlasticsFinancial – Efficient and effective usage of resources in order to fulfill the trust’s core mandate. University of Johhanesburg – Metal casting and Foundry Technologies

Summary of Key Deliverables FY 2006/2007

Strategic Initiatives FY 06/07 Technology Stations Continuous Improvement: Value adding projects, SMME development, Cost Recovery, University Management involvement. Official launch and successful roll out of IAT’s. Intern placement and Skills Development at Stations and SMME. Establishment of Database for Tech based BEE Companies Strategic Alliances – Provincial SEDA’s, IDC, TASA, GEP, National Laser Center and CSIR (Tooling).

Strategic Initiatives (Continued) Satellite Technology Stations: Agrifood processing (Limpopo and Mpumalanga) Other possible opportunities in: Chemicals and Clothing and Textiles sectors International Technology Transfer/Diffusion Conference 2006 International Technology Transfer benchmarking exercise in BRIC countries with specific emphasis on Brazil and India.

Thank You!!!!