1. BUSINESS & STRATEGIC PLAN FY 2007/8
Parliament Portfolio Committee on Science and Technology
David Phaho
Tshumisano Trust
22nd May 2007

2. Presentation Outline Introduction
Mission, Vision, Values and Strategic Intent
Envisaged Outcomes for Business Plan
Programme Status: FY 2006/7
Programme Review FY 2003/4 – FY 2006/7
Situational Analysis
Update on FY 2006/7 Initiatives
Going Forward: Alignment with National Objectives
Strategic Initiatives FY 2007/8
Proposed Budget Forecast FY 2007/8 – 2009/10

3. Tshumisano Trust
Vision
Mission
Values
Strategic Intent

4. Vision Statement:
Tshumisano Trust through its Technology Stations is regarded as the pre-eminent provider of world class technological solutions, services and training to SME’s in economic sectors of national priority.

5. Mission Statement:
Tshumisano Trust develops and enhances the capacity of Institutions of Higher Learning to improve the culture of innovation, learning and competitiveness of SME’s in economic sectors of national priority.

6. Values:
Honesty
Accountability
Transparency
Mission-driven
Humility
And Integrity

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

8. Envisaged Outcomes for Business Plan
Fiscal Discipline to ensure effective and efficient use of scares resources in line with sound business principles.
Improve the Outputs and Alignment of Technology Stations and Institutes for Advanced Tooling.
Continuous Improvement to mitigate Structural Inefficiencies within the Trust.

9. Technology Stations Programme
PROGRAMME STATUS: FY 2006/7

10. Stations within the TSP

11. TECHNOLOGY STATIONS
Agri-food Processing at Cape Peninsula University of Technology (Cape Town)
Chemicals at Tshwane University of Technology (Ga-Rankuwa)
Composite Materials at Vaal University of Technology (Vanderbylpark)
Downstream Chemicals at Nelson Mandela Metropolitan University (NMMU) (Port Elizabeth)
Chemicals at Mangosuthu Technikon in Umlazi (Durban)
Clothing and Textile Technology at CPUT (Bellville)

12. TECHNOLOGY STATIONS Automotive Components at NMMU (Port Elizabeth)
Metals & Manufacturing at Central University of Technology (Bloemfontein)
Moulded and Re-enforced Plastics at Durban Institute of Technology (Durban)
Metal Casting and Foundry Technologies at University of Johannesburg
Electronics at Tshwane University of Technology (Tshwane)

13. Staff Component within Tshumisano Programmes

15. SME Technology Development Initiatives
FY 2003/4 – FY 2006/7

16. Technology Station SME’s Assisted FY 2003/4 SME’s Assisted FY 2004/5
Agrifood (CPUT)* - 5 38 24
Electronics (TUT) 22 7 65 44
Materials Technology (VUT) 19 20
117
110
Reinforced and Moulded Plastics (DUT)* 66 76
Downstream Chemicals (NMMU)
408
Automotive Components (NMMU) 68
107
139
113
Clothing and Textile (CPUT) 34 96
127 72
Metal Casting (UoJ)* 10 25 42
Chemicals (Mangosuthu
Technikon) 30 29 80 60
Product Development (CUT) 85 59
136
Chemicals (TUT) 18 23
Black Owned 48
133
335
339
Female Owned
N/A 49
155
131
Total
233
448
787
*1120
*First three Quarters of FY 2006/7. **Projects and Services and Technical Consultancy.

17. SME Training and Skills Development Initiatives
FY 2003/4 – FY 2006/7

18. Clothing and Textile (CPUT)
Technology Station
E’s Assisted FY 2003/4
SME’s Assisted FY 2004/5
SME’s Assisted FY 2005/6
**SME’s Assisted FY 2006/7
Agrifood Technologies (CPUT) - 18 24 1
Electronics
(TUT) 3 5
Materials Technology (VUT) 4 9 31
Reinforced and Moulded Plastics (DUT)
Downstream Chemicals (NMMU) 10
Automotive Components (NMMU) 55 22
Clothing and Textile (CPUT)
224
140 39
108
Metal Casting
(UoJ) 20
Chemicals (Mangosuthu
Technikon) 2 38
Product Development (CUT) 6 12
Chemicals 19 13 27
Total
308
216
162

19. Progress on the FY 2006/7 Strategic Initiatives

20. The Trust should work closely with departments such as Education and Labour to improve cost recovery and management of Projects
The Trust is expected to work with other agencies to avoid duplication of programmes or projects
The Trust should in future include figures of comparison in their Annual Report in areas such as performance by Technology Stations, Training and number of SME’s supported

21. The Trust should work closely with the DTI in order to establish mechanisms to improve incentives for the SME’s
The Trust should, through its Institutes for Advanced Tooling, involve other provinces in the tooling initiative
The Trust should re-visit the deliverables summarized on page 16 of the business plan and plans to take them forward
The Trust held the first all Africa Technology Diffusion Conference in June 2006

22. Programme Expansion Update
FY 2006/7

23. Institutes for Advanced Tooling
Roll out, Facility Upgrade and Capital Equipment purchases on track
New IAT in Eastern Cape – Focus on Design
Key Issues to be addressed:
Viability of Current Business Model
Staff Retention
Institutional Support

24. Limpopo Agri-food Initiative
Buy in from University Management – Allocation of building and Staff secondments.
Limpopo Provincial Government
Annual Financial Commitment for Capital Equipment upgrade and Project funding
Project Referrals

25. Strategic and Long Term Benefits for Limpopo
Agri-food Station as Indespensible Anchor for envisaged Provincial Techno-Park in Limpopo
Direct Link to other Technology based Growth Initiatives –Mining, Toolmaking, Manufacturing, Clothing and Textiles
Provincial Linkage to other resources and expertise in Technology Stations across the Country e.g. Metal Processing and Beneficiation
Long Term Skills Development for Students (internships), SME’s and Rural Communities in line with JIPSA.

26. Mpumalanga Agri-food Initiative
Provincial Government conducting Feasibility Study for Establishing Agri-Food Center
Trust will collaborate with the Provincial Government at in Establishing the Proposed Agri-food Center

27. Situational Analysis
FY 2006/2007

28. SWOT Analysis

29. Positive Negative Weaknesses Ever increasing national prominence
Strengths
Weaknesses
Ever increasing national prominence
Continuous support and endorsement by DST- Move to public entity status
Program accessibility to variety of SME’s in relevant sectors
Rapidly expanding network of SME’s served by programme
Improved buy-in from University of Technology Management structures.
Sub-standard performance at some Technology Stations
Low level of project or training output at some Technology Stations
Inadequate research output leading to low level of technology diffusion to SME’s.
Lack of understanding about the importance of Technology Diffusion to economic development.
Opportunities
Threats
Synergies with national and provincial formations in SME support, specifically in underserved Provinces
Growing interest in Trust activities from “traditional” universities
Improvement of cost recovery which assists in enhancing the sustainability of Technology Stations.
Increased funding for Operational, R & D and Capital Equipment
Staff turnover at Technology Stations and IAT’s.
Critical skills shortage in key economic sectors
Growing Competition from low cost countries

30. PEST Analysis

31. Political/ Legal Economic Social Technological
Changing Government Priorities e.g. MIDP review (?)
Positive Government attitude towards Research and Innovation (+)
Economic
Sectoral Economic Growth e.g. Automotive industry (+)
Lack of Adequate Private Sector Investment affecting quality and extend of Technology Transfer/Diffusion to local SME’s (-)
Social
Slow pace of Technology assimilation by SME’s e.g. Tooling (-)
Reluctance of SME’s to Technology to improve their competitiveness (-)
Technological
General lack of information about what Technology Transfer/diffusion entails (-)
Increasing Applied Research Output by Higher Institutions (+)

32. Going Forward
FY 2007/8

33. Alignment with National Development Priorities
FY 2007/8

34. National Developmental Goals Tshumisano Trust’s Objectives
Human Resource Development in line with ASGISA and JIPSA.
Targeted Skills Development to enhance Technology Transfer and Diffusion initiatives from Technology Stations and Institutes for Advanced Tooling.
Industrialization– Local SME’s encouraged to invest in appropriate technologies to produce world class products, processes and services.
Continuing SME support and development with a specific and unqualified emphasis on black and women owned businesses.
Smart Industries
Innovation and Research initiatives to facilitate the Growth of competitive SME’s in areas of National priority.
Institutional Learning and Development
“Growing our own timber” to ensure that adequately trained and motivated staff members are retained to deliver on the Trust’s mandate
Economic Value Add
Assistance to SME’s to achieve world class standards in terms of product quality, accreditation and export readiness
Regional Economic Development
Establishing and maintaining a footprint in all Provinces through involvement in regional economic growth priorities
Global Value chains
Identify export oriented SME’s operating in key economic sectors that can benefit from technology diffusion leading to integration into global markets. e.g. Automotive components

35. Strategic Plan Summary

36. 1. Human Resource Development 3. Institutional learning
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 2500 SME’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
Component
Objective
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
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

37. Strategic Objectives
FY 2007/8

38. At least 20% increase in the number of Technology based SME’s assisted compared to FY 2006/7.
Clustering of Technology Stations in key focus areas (e.g. Chemicals, Agri-foods, Metal Beneficiation) to enhance overall impact and inter-Station collaborations.
Proper and efficient functioning of all Technology Stations and IAT’s with a specific emphasis on the proposed new centers in Limpopo and Mpumalanga.
Promote and where possible facilitate the interaction of Technology Stations with relevant SETA’s with specific emphasis on Skills Development and Training.

39. Ensure that the Institutes for Advanced Tooling focus and deliver on their stated mandate namely:
High value projects in Tooling, Automotive. Components and downstream metal processing.
Training and Skills Development.
High quality Tool Design and Manufacture.
Tool Import Substitution projects.

40. Continue dialogue with University of Technology Management and HESA structures to improve:
The utilization of the committed academic staff to their full potential to meet the needs of SME’s.
Proper deployment and utilization of DST funded Interns at Technology Stations and IAT’s.
Ensure adherence to the provisions of the Grant agreements by all stakeholders.
Harmonization all Policies central to Trust’s initiatives namely, Intellectual Property (IP), SHERQ,GMP Protocols and Financial Management.

41. Proposed Tshumisano Organizational Structure
FY 2007/8

42. Board of Directors Chief Executive Officer PRO / Executive Assistant
Chief Executive
Officer   
PRO / Executive
Assistant
Risk & Policy
Manager
Chief Financial
Officer
Chief Operations
Officer
HR Manager
National Tooling
Coordinator
EXCO
Project
Manager
Project
Manager
Project
Manager
Project
Manager
HR/Finance
Administrator
Receptionist
TS in
Agri-food x3
TS in
Chemicals x3
TS in
Auto
Components
TS in
Clothing &
Textile
TS in
Electronics
TS in
Metal Casting TS in
Plastics
Institutes for
Advanced
Tooling x3
TS in Product
Development
TS in Materials
& Processing

43. Proposed Budget Forecast
FY 2007/8 – 2009/10

45. GTZ Contribution
FY 2007/8

46. International Consultancy Service; Local Consultancy Service 200 days:
Number
German Inputs
Budget
Euro
Rand
Exchange R9.5/€
( )
Bill of Quantity
Kind of Contribution 1
12 PM
Local Technical Advisor
Organizational Development
36.000,--
,-- 2
6 PM
German Senior Expert for Institute Technical Advisor
National Tooling Initiative
30,000--
285,000-- 3
International Consultancy Service;
up to 75 €320/day
Short-term Visiting German Experts to Technology Stations/ IAT’s 4
Training Courses
up to 13 assignments
Further Education & Training Programmes in Germany for Staff Members of Technology Stations / IAT’s 5
1 Trip;
up to 10 participants
Information & Study Trips to Germany 6
Local Consultancy Service 200 days:
@ 350 €
Local consultancy services:
SETA accreditation
QMS
Public entity
RLED/BESD 7
Planning workshops
Workshop on:
Value Chains
Clusters and Innovation Systems
Local Innovation Systems
20.000,--
,-- 8
2 x publications
Publications
12,000--
114,000-- 9
GTZ Overhead Costs
(15%)
50,000--
475,000--
Total Budget 2007
€378,000--
R3.591,000--

47. Thank You!!!!