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

2. 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

3. “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.

4. “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.

5. Strategic Goals for FY 2006/7

6. 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)

7. 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.

8. 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

10. 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

11. 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

12. 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.

13. Technology Stations Programme
PROGRAMME STATUS: FY 2005/6

14. 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

15. Station Performance ¾ FY 2005/2006

16. 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

17. Technology Stations Programme TOTAL EXPENDITURE: FY 2005/6

18. 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

19. 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

20. 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

21. Business and Budget Plan FY 2006/7

22. 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.

23. 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

26. 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

28. 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

30. Summary of Key Deliverables
FY 2006/2007

31. 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).

32. 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.

33. Thank You!!!!