The Technology Innovation Agency (TIA): Mobilising resources for technology innovation led growth and development

TIA Strategic Corporate Business Plan Presentation

S & T Portfolio CommitteeCape Town

24 March 2010

Presented by Dr Nhlanhla MsomiTIA Interim CEO

Contents• Introduction and Context

• Strategic Vision and Intent

• Strategic Architecture

– SWOT and Risk Analyses

– Stakeholder/Customer Perspective

– Financial Perspective

• Consolidated Financials

– Innovation, Learning and Growth Perspective

– Business Processes

• Consolidated Business Plans

– Biotechnology

– Tshumisano – Technology Stations Program

– Advanced Manufacturing Technology Strategy

– Innovation Fund

– Agency Management

• Energy

• Health Innovation

• Strategic Investment Portfolio (SIP)

• Operational Update

TIA Mandate & Vision

The TIA Act [No 26 of 2008]:

“The object of the Agency is to support the State in stimulating and intensifying technological innovation in order to improve economic growth and the quality of life of all South Africans by supporting the development and exploit ation of technological innovations”

The TIA Vision is to be:

“A world class innovation agency that supports and enables technological innovation to achieve socio-economic benefits for South Africa through leveraging strategic partnerships”

Introduction and Context

• The TIA Act frames the mandate and its context (Mission and Strategic Objectives)

– Mission provides the four strategic pillars

• Appropriately structured financial and non-financial interventions

• Human capital development for innovation– In partnership with the NRF and HEI’s

• Developing a culture of innovation

• Leveraging local and international partnerships

– Strategic objectives – recurrent theme is competitiveness

• Leverage – capital inflows for technological innovation/transfer

• Support development of new products and services

• Grow number of technology-based start-ups and SME’s

• Support key industry sectors that are better able to utilize local and international technology innovation to enhance their global competitiveness

• Immediate challenge is to build an organisation that can deliver on these strategic imperatives

Context II: Business Planning Process

• Business Planning process framed by the Strategic context as provided by the Mission and Strategic Objectives

– Three steps:

• Risk and SWOT analyses– Determine the challenges and major risks, and how to mitigate them

– Identify the range of opportunities and threats

• Determining the Strategic Vision and Intent – Realistic timelines and achievable milestones

– Moderate the expectations to fit the resources and capabilities

• Adopt a measurable Strategic Framework– Balanced Scorecard approach (Stakeholder, Financial, Innovation, Learning &

Growth, and Business Processes)

– Consolidated Business Plan (‘business as usual’) – current portfolio

• Addressing the challenge of the “innovation chasm”– Analysis and consolidation of the current portfolio (gap analysis)

– Determining TIA’s positioning in the ecosystem (Investment Framework)

– Market linkages (Strategic Investment Portfolio)

Strategic Vision & Intent

Build the TIA organisation focusing on governance, HR, Finance, technology

innovation management systems,

tech SME dev, and branding

Deliver the first products in the market

from the National Innovation Strategies. Target one high impact product per Strategy

FY 2010 - 2011FY 2012 - 2013

Restructure and Consolidate the

investment portfolio, focusing on new

funding instruments and support modalities

[Synergy and Leverage]

TIA’s Strategic Intent: A world class innovation agency that supports and enables technological innovation to achieve socio-economic benefits for South Africa through leveraging strategic partnerships

RISK ANALYSIS

• Based on the comprehensive identification of the major risks associated with merging ten (10) organisations and programs with different cultures and histories

– Allows for a distinction between migration into a stable environment and merging into an undefined territory

– Provides a set of mitigating strategies to be coalesced into a realistic Business Plan

– Sets out key operational priorities

• Identified nine (9) Risk categories– Strategic

• Funding (Misalignment between Budget and Strategic Intent)

– Governance

– Human Capital

– Financial

– Legal and Regulatory

– Stakeholder and Communication

– Marketing (mainly Branding)

– Political

– Information Technology and Operational Platform

• Activity Matrix derived from the interface between the priority risks and the Strategic framework (Balanced Scorecard)

SWOT Analysis

• A SWOT analysis starts with a definition of the desired end state:

“... stimulating and intensifying technological innovation in order to improve economic growth and the quality of life of all South Africans by developing and exploiting technological innovations.”

• The elements of the SWOT analysis are:– Strengths: attributes of the organisation that are helpful to achieving the objective. – Weaknesses: attributes of the organisation that are harmful to achieving the

objective. – Opportunities: external conditions that are helpful to achieving the objective.– Threats: external conditions which could do damage to the objective.

• Likely to influence the Strategic Investment Portfolio design– Most weaknesses and threats being addressed as part of the Risk mitigation plans as they

interface

– Strengths and opportunities to be leveraged for building a performance focused organisation, able to provide a bridge over the ‘innovation chasm’

• Exploitation of the insights will evolve over the year

SWOT ANALYSIS

Strengths Weaknesses• Mutually beneficial partnerships with other funding and development agencies such as the IDC and NEF. •Well established capacity development programmes addressing various aspects of the skills and culture gap.• Diverse group of and range of professional skills, expertise and experience in the technology innovation space.• Available financial resources in the form of MTEF allocations of migrating entities.• Broad portfolio of opportunities spanning the entire value chain.

•A shortage of industry/ firm-based innovation skills.• Slow uptake of TIA’s new operational model.• Unclear PFMA exemptions regarding some of the investment instruments and modalities used by migrating entities.• A limited budget in relation to the wide range of interventions required.•Inadequate footprint of capabilities beyond Gauteng, KZN and Western Cape.•A new brand that still has to get traction with stakeholders.

Opportunities Threats• Opportunity for inbound technology transfer – as a lever for industrial development.• Management of R&D by recipients of public funding under the IPR from publicly financed R&D Act, 2008 offers greater prospects.•R&D tax incentives and VC tax incentive potentially offers significant opportunities to develop strong portfolio and collaborate on VC funding.• Various concessions provided in bilateral in bilateral and multilateral agreements executed by S.A. • Engagement, partnerships and leverage with many local and provincial governments.

• Poor coordination, alignment and potential misunderstanding on TIA’s strategic role.• Perception of TIA as merely a continuum of the migrated entities.•Low supply of scientists and entrepreneurs;• Inadequate funding for implementation of the full TIA structure – unrealistic expectations.• IP, technology and products dumping.•Negative and ultra-defensive stance from government and IP export.

Strategic Perspective I: Stakeholder Perspective

• Drives the two pillars of the TIA Mission– Building a culture of innovation

– Leveraging local and strategic partnerships

• Identification of key stakeholders in the TIA ecosystem:– Shareholder grouping (civil society, parliament and DST)

– Beneficiaries of the TIA offerings (NSI, SME’s, industry, and provincial and local government entities like IPA’s, DFI’s)

– Internal stakeholders (Board, Employees)

– Strategic partners (local and international)• Funders• Technology (developers, in-source)• Skills development, Systems and Processes

• Define an appropriate RoI framework for the key stakeholder (shareholder)– Visible products of the public investments on technology innovation

– Alignment with national priorities (addressing the national challenges)

– Appropriate positioning and instruments to bridge the ‘innovation chasm’ – market alignment

• Critical Tools to leverage support and partnerships:– Communications

– Strong positive branding

Strategic Architecture II: Financial Perspective

• Drives all four strategic objectives and the Mission’s:– Appropriately structured financial and non-financial interventions

• Strategic Investment Portfolio will require additional funding• A new Budgeting Model (alignment between Strategy and Budget)

– Spending patterns will not reflect the re-positioning vis a vis the innovation chasm

– Optimal allocation of resources between regions and programs

• Appropriate Return on Investment framework based on new KPIs– Investment Policy and Management Framework

– Understanding the funding, business support and market ecosystem

– Assessing performance of the TIA portfolio

• A Treasury management capability to optimise cash use– Increase leverage factor through appropriate financial instruments

• Leveraged capital raising– Third party funds, co-funding and VC options

• National Treasury– Exemptions (and Scheduling) issues

– Revised Funding Model

• Financial managements system (MSP, ERP, Audit)

BUDGET

TIA CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

    TOTAL TOTAL TOTAL

Budget Forecast Notes BUDGET BUDGET BUDGET

  FY2010/2011 FY2011/2012 FY2012/2013

Income 1 587,700,000 652,730,000 705,353,800

  -  

Operations 2 45,946,737 48,703,541 51,625,754

Human Resources 3 89,835,277 86,429,566 92,411,605

Human Capital Development 4 16,399,802 21,644,990 22,943,690

Capital Expenditure 5 26,264,150 3,459,999 3,667,599

Investments 6 470,264,322 326,416,092 346,001,058

Marketing & Communications 7 15,000,000 5,350,000 5,724,500

Total Expenditure 663,710,288 492,004,189 522,374,205

Net Suplus/Deficit

(76,010,288) 160,725,811 182,979,595

         

Strategic Architecture III: Innovation, Learning and Growth

• Based on the perspective that TIA is a knowledge organisation:– People and knowledge are its key assets

– Provides template for organisational architecture including its design

• Drives the key strategic pillars:– Appropriate financial and non-financial interventions

– Human capital development for innovation

• Addresses the challenge of building a new, performance focused TIA:– A Knowledge Management framework using a “shared language” for both strategic

coherence and internal operational integrity

– Human Capital development (both internally and externally)

• Addressing the Innovation Chasm: – Business Advisory Services for technology projects and start-ups

– Centres of Competence

– Appropriate in-bound technology modalities

– Technology development infrastructure such as Platforms

Strategic Architecture IV: Business Processes

• Drives the Strategic Intent of building a “world class innovation agency…”

• Policy environment including procedures that are compliant with legislation– TIA Act

– PFMA

– Employment Equity Act

– PAIA AND other relevant legislation

• Performance Management framework, in line with the M&E

• Risk Management function – Internal and financial; eliminate Audit failure risk

• Master Systems Plan– Enterprise Resource Planning (ERP) system

• Corporate Organogram (new paradigm defining portfolios)– Structured Investment management (corporate finance, fund management)

– Economist portfolio, with market sector focus

– New business processes

• Business process mapping– Drives efficiencies and better performance

– Change management driver

Model

Internal Audit

Finance

Legal

IT

HR

Marketing & Communication

Knowledge ManagementKnowledge

Management

Advocacy & Capacity

Development

International Resources

Seed/Grant-------

Soft / Convertible Loans / Equity

-------Venture Capital

(PPPS)

Centres of Competence (CoCs)

Expert Services

Technology Nursery

Portfolio Management, Monitoring & Evaluation

Biotech & Health Biotech & Health

EnergyEnergy

Minerals Processing

Minerals Processing

ManufacturingManufacturing

ICTICT

Receive, Assign, Assess

Receive, Assign, Assess

Special Purpose Vehicles (SPVs)

In-bound Tech Transfer

In-bound Tech Transfer

Innovation for Social Impact (ISI)

Innovation for Social Impact (ISI)

Infrastructure Management

Risk Management OtherOther

Strategic Relationships

Corporate Services

Strategic Partnerships& Enabling Services

Fund Management

Technology Development &

Innovation

Technology Commercialisation

…TIA Functional overview: Assessment &

Recommendations

Funding

Advisory & Support services

Advisory & Support services

Commercial & Business Expertise

Commercial & Business Expertise

FUNCTIONAL STRUCTURE

Core 1Core 1 Core 2Core 2Support

3Support

1Support

2

Example Sectors

HUMAN DEVEL-

CAPI TALOPMENT

ADVOCACY & STAKEHOLDER MANAGEMENT

KNOWLEDGE MANAGEMENT

LEGENDTechnological

I nnovation Core Functions

Technological I nnovation Support

Functions

Operations Support Functions

EMERGI NG SECTORS

CHEMI CALS/ PLASTI CS

FABRI CATI ON & PHARMACEUTI CALS

FUNDI NG MI NERALS SECTOR

I CT SECTORI T

BUSI NESS & I NNOVATI ON

SUPPORT

OPERATI ONAL FI NANCES

TECHNOLOGY COMMERCI ALI SA

TI ON

MARKETI NG

MARKETI NG, PR & COMMUNI CATI ONS

STRATEGI C PORTFOLI O

(CONSOLI DATED) MANAGEMENT

TECHNOLOGI CAL I NNOVATI ON

CORE COMPETENCE

STRATEGI C SECTOR MANAGEMENT

BOARD SECRETARI AT

I NVESTMENTS MANAGEMENT

HR (Strategy, Policies &

Management)

TECHNOLOGY DEVELOPMENT

T I A O R G A N I SA T I O N A L F UN C T I O N S

LEGAL: COMMERCI AL;

I P

I NTERNAL AUDI T

OPS & ADMI N FI NANCE

PEOPLE DEVELOPMENT

AND STAKEHOLDER MANAGEMENT

OFFI CE ADMI N &

I NFRASTRUCTURE

ENERGY SECTOR

Technology Business Support and Advisory Services (aka Nurseries)

ESSENTIAL INFRASTRUCTURE

• Technology stations• Technology platforms• Office and laboratory space• High value equipment

ESSENTIAL INFRASTRUCTURE

• Technology stations• Technology platforms• Office and laboratory space• High value equipment

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PROCESS / PRODUCT CONFIGURATION

(test the market)

• Prototypes / clinical candidates

• Essential data / proven technologies / processes

BUSINESS DEVELOPMENT

(identify market opportunity)

• markets (what, types, sizes, dynamics, barriers, competitors, etc)

• economic viability

• commercial and legal (incorporation, business plan)

• intellectual property (freedom to operate, strategic licensing

ScienceCouncilsScienceCouncils

Higher Education Institutions

Higher Education Institutions

Techno-entrepreneurs

Techno-entrepreneurs

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ADVISORY SERVICES• Portfolio managers• Project management• Business warehouse• Expert Services

• IP management• Commercialisation

• Technology Transfer• Capacity/Infrastructure •In-bound technologies

Research Development Manufacturing

LocalIP and R&D base

Value addedlocal technology

Products & services

OFFSHORE TECHNOLOGY SOURCESResearch Development Production

(Royalties)

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Bridging the Innovation

“Chasm”

In-bound Technology Transfer- Strengthening the R&D base and reducing the development risk -

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Mapping local assessed needs to:

(i) technologies available offshore and (ii) local technology and manufacturing capabilities

In-bound Technology Transfer based on assessed needs

Increased R&D and IP base

Improved manufacturing

capabilities

Fast-tracked product

development

CONSOLIDATED BUSINESS PLAN(S) I:Biotechnology

Biotechnology Portfolio• Consolidated into one National Business Plan from the four merging entities

– Initial Portfolio analysis performed – underpins the consolidated Business Plan

• Sector consolidation driven from a market definition e.g. health, agri, industrial

• The investments/projects grouped into these definable market sectors

• Each market sector strategy divided into sub-groups defining actual products, e.g. under health there are diagnostics, drugs and vaccines

• The main market sector groupings have developed:– Strategies for accelerated market entry, with a high level analysis of the global and South

African markets

– A pathway for consolidating investments/start-ups into critical mass initiatives

– Framework for identifying a number of ‘High impact projects’ for the Strategic Investment Portfolio

• To be managed on a multi-dimensional basis – technological innovation vs. market/industry

– Increased In-bound technology transfer and Technology Business Support and Advisory inputs

– Increased funding/optimal capitalisation

CONSOLIDATED BUSINESS PLAN(S) II:Tshumisano

Technology Stations Program• Focus is on SME’s, using the Universities of Technology as the base

– Closest to the intentions of the Industrial Policy Action Plan

– Provides engineering capabilities, required for industrialising the other high technology innovation portfolios

• Key industrial clusters include:– Agro-processing and Chemicals

– Primary and Secondary Manufacturing

– Tooling and Metal Casting

• Human capital development for engineering and technical skills a key focus

• Will provide a critical platform for:– Strategic Investment portfolio, through the manufacturing capability

– In-bound technology by increasing absorptive capacity of SME’s

• Synergies with Biotechnology (starch and biofuels) and AMTS on production platforms

• National coverage– Increase Technology Stations to underserved provinces and institutions

– TIA’s entry points into new regions

Expanding National Footprint

Forthcoming Initiatives (building on work done by the

migrating entities):

Mpumalanga (Technology Station in Agro-processing)

Northern Cape (Integrated Manufacturing Sector for

Agro-food and Mining Industry)

North West – negotiations with Royal Bafokeng

Holdings will continue to establish a manufacturing

advisory Center for SME’s supplying the mining

industry and other sectors

CONSOLIDATED BUSINESS PLAN III:AMTS

• Advanced Manufacturing Technology Strategy• Development of technology platforms that increase SA’s competitive

advantages in the following sectors:– Advanced Light Materials and Electronics

– Advanced production Technologies

• Predominant focus is applied research at Science Councils and HEI’s– Funding modality is mainly research grants

• Strong focus on human capital development– Partnership with industry (students for industry readiness)

• Technology Transfer Vehicles

• Technology diffusion vehicles such as FAB labs (‘culture of innovation’)

• Opportunity to link with the former Tshumisano programs for an integrated TIA Manufacturing Strategy (with both upstream and downstream capabilities)

– Innovation Fund capabilities will assist in providing strategic leadership

CONSOLIDATED BUSINESS PLAN IV:Innovation Fund

• Oldest funding instrument in the TIA family

• Predominantly seed funding – a funder of last resort for technology start-ups– Provides a bridge to the Venture Capital industry by reducing the investment risk

• No definite technology innovation sector focus, but recent focus on:– Metals and Materials

– Manufacturing

– Renewable Energy technologies

• Funding programs– Technology Advancement Program (TAP), developing prototypes

– Missions in Technology (MiTech), generating new technology ideas

– Patent Support Fund (PST)

– Seed Fund, taking prototypes into the market

– NIC, NICLE and SA Bio Plan, catalysing a culture of innovation

• Strong IP and Commercialisation capabilities– Will provide an anchor for the TIA in these key operational requirements

• Some highly visible investments (e.g. Joule)– Anchor for future TIA brand development

CONSOLIDATED BUSINESS PLAN V:AGENCY MANAGEMENT

• Programs defined in the TIA business case and migrating into TIA but:– No clear mandate for the TIA around its future strategic inputs into these progams– Separate governance structures, possibly reporting directly to the DST principals– TIA to provide only operational function, with no control over performance issues from a ‘value for

money’ perspective:• Fund management• HR management

• Temporary arrangement until the Migration issues are resolved with the Shareholder (DST)

• Health Innovation– Opportunity to integrate some elements into the Biotechnology Portfolio– Projects could migrate over time into either TIA or other Science Councils depending on

development stage

• Energy– Hydrogen SA, the business opportunity could be managed from the Innovation Fund– TIA needs to build internal capacity to understand the portfolio for optimal future management– Grand Challenge, several components lend themselves to some TIA competencies

• Planning for full migration should commence in FY2010/11– Market ready opportunities could be transferred sooner (Altergy)

Sector-driven strategies

Limited socio-economic impact of technology driven focus For optimal socio-economic impact, TIA’s interventions will be sector drivenTechnology as a tool to impact on the sector and societal needs

Sector-driven strategiese.g. Health

3 critical Sub-Saharan Africa heath-care issues – HIV/AIDS, Tuberculosis and MalariaTIA inheriting small, under-resourced health related technology projectsConsolidate and align activities into two operational companies (diagnostics and pharmaceutical)Strategic relationships with pharmaceutical majors – stimulate local pharmaceutical and diagnostics capabilities

Strategic Investment Portfolio:High Impact Projects

• Clearly defined domestic market, pref. with a strong public sector pull (AMC):– Particularly national priorities such as health, education, rural development

• Technology must be mature and IP possibly out of patent– Manufacturing bias

• Ability of the in-house TIA – Commercialisation & IP unit to negotiate technology transfer– Technology project managers to source, evaluate utility, and facilitate transfer

from technology sources to SME’s

• Availability of an appropriate local private sector company (preferably SME)

• Focus will be on current investment/projects portfolio, with the In-Bound strategy filling the gaps in the IP to move through the chasm:

– Engineering capabilities required for product manufacturing provided by internal platforms such as Tshumisano and AMTS

– Intensive mining of the inherited investment portfolio

• TIA will develop and execute an Implementation Plan by Q4, FY2010/11– Will require additional funding

High Impact Projects I

• Biotechnology Portfolio– Human Health (anti-infectives)– Opportunity to consolidate investments into IP families with a higher probability of

market entry– Have identified iThemba Pharmaceuticals as an ideal vehicle to develop HIV and

TB drugs– Recently concluded an agreement with GSK to license TB library– Discussion to license, at no upfront cost, several HIV drugs in late stage clinical

development – Developing a strategy to license several, already approved compounds with an

intention to develop, long acting combination therapy• Very short lead times because the drugs are already approved• Leverage the medicinal chemistry capabilities of Emory University (Prof Denis Liotta)

– The final piece of the Strategy is to utilise in-house TIA capabilities or in-bound technology to rapidly upscale manufacturing capability

– Opportunity to utilise R & D Tax incentives– Will require an industry partner with already existing marketing /sales channels

and logistics infratsructure (main target is State business)

High Impact Projects II

• Biotechnology– Human Health (Diagnostics)– Opportunity to consolidate existing projects/start ups into one

company with critical mass– Existence of some manufacturing capacity within one of the

investments– Leverage partnership with Foundation for Innovative New

Diagnostics (FIND) to rapidly build a product portfolio of cost effective, modern diagnostics for infectious diseases

– Address the most burdensome diseases like TB and HIV• Improved outcomes• Cost effective• Better models and access

– Expected lead time is less than 18 months– Requires DTi and DoH partnerships

High Impact Projects III

• Biotechnology (Agri)• Production of industrial starch from cassava.• Location: Makhathini Flats (Northen KZN)• Components of the project:

– Farming cassava– Factory for production of industrial starch (production of higher value modified starch could be considered at

a later stage)• R&D activities and partners involved:

– Plant breeding of improved cassava varieties for the production of industrial starch (ARC and UKZN)– Plant material multiplication of selected varieties to generate enough material for approximately 10,000 ha.– One important aspect is the production of disease free initiation material using tissue culture) (PGBI

consultants and PlantBio tissue culture investments)• Business development

– Feasibility study finalized (PGBI consultants). Shows financial viability under quite conservative assumptions with modest RoI (12%)

– Factory technology and expertise provided by NIVOBA (Netherlands)• Funding:

– R&D funded 50% by PlantBio-TIA and IDC– Commercial project funded by IDC (equity and financing),– NIVOBA as technical partner and option available for TIA to invest in any form. – Toongat-Hewlett has expressed interest in participating in the project (funding R&D and investing in factory)

High Impact Projects IV

• Biotechnology (Agri)• Bioethanol production from sugar cane

• Location: Makhathini Flats (Northern KZN)

• Components of the project:

– Farming sugar cane commercially with contribution of small scale farming component

– Factory for production of ethanol as biofuel

• R&D activities and partners involved:

– Plant breeding of improved sugar cane varieties for the production of ethanol (SASRI)

– Plant breeding of sweet stem sorghum varieties (UKZN, ARC)

• Plant material multiplication of selected varieties to generate enough material for several thousand ha.

• Business development

– Tongaat Hulett

• Funding:

– Some R&D aspects funded by PlantBio, SASRI, IDC, Toongat-Hewlett

– Commercial project funded by IDC and Tongaat-Hulett

• Rural development component:

– More than 10,000 ha of small scale farming

– Direct industrial jobs in the order hundreds

– Indirect job and business opportunities creation not defined but significant

High Impact Projects V

• Biotechnology (Agri)• Bioethanol production from sugarbeet and another rotational crop

• Location: Cradock (Eastern Cape)

• Components of the project:

– Commercial farming of sugar beet and complementary crop for rotation (candidates sweet stem sorghum, triticale grain) with contribution of small scale farming component

– Factory for production of ethanol as biofuel from sweet crop biomass and grain

• R&D activities and partners involved:

– Plant breeding of improved triticale varieties adapted to SA conditions (U Stellenbosch)

– Plant breeding of sweet stem sorghum varieties (UKZN, ARC)

– PGBI, IDC, Sugarbeet SA. Prefeasibility study and bankable business plan finalized. Funding:

– Some R&D aspects funded by PlantBio, IDC, Sugarbeet SA

– Commercial project funded by IDC, CEF and Sugarbeet SA. PlantBio-TIA could negotiate option to invest

• Rural development component:

– More than 10,000 ha of farming including small scale farmers

– Direct industrial jobs in the order hundreds

High Impact Projects VI

• Education (ICT)• Partner with KZN DoE and Ethekwini Municipality for pilot• Based on Ethekwini’s connectivity (broadband network available in

the townships)• Umlazi chosen as a location to connect the primary schools• Data Warehouse at the SmartExchange ICT Incubator• Robust, Netbooks ($150) for educational content – built for purpose• Content provided by DoE

– Opportunity to develop other media like animation

• Technology licensed from ITRI (Taiwan)• Local assembly opportunity (private sector partners identified)• Expected lead times: 6-12 months

High Impact Projects: Conclusions

• Ring fenced budget • Ownership by the Board as a Strategic Programme• Managed by a Senior Manager• Continue to evaluate Portfolio for other opportunities

– e.g. Fab Labs (for massification of technology and building culture of innovation)

• Clear Board mandate on the target sectors– Formalised partnerships with relevant delivery departments like

education• Provides entry point for setting up programs in the Regions (e.g.

Free State• A Business Plan for this portfolio to be presented to the Board at its

next meeting– Provides inputs for TIA’s contribution to the mid-year Lekgotla

Operationalising TIA

– Integration of 7 existing institutions:

– Board inaugurated in July 2009– CEO position advertised in August/September 2009

• Interim CEO appointed October 2009– Comprehensive suite of operational policies (HR and Finance)

finalised and approved in December 2009– TIA Corporate Organogram approved by the Board December 2009– Migration Plans for three entities approved December 2009– Innovation Fund and Tshumisano Trust migrate to TIA in Jan 2010

• NRF management contract for HR and Finance

– AMTS migrates into TIA February 2010– Biotechnology Instruments (BRICs) to migrate 01 April 2010

Recruitment Update

• Search Partners International appointed to head hunt for the CEO– Process to be concluded by 1st Quarter FY2010

• CFO and Enterprise Risk Manager appointed• Chief Economist, Chief Technology Innovation Officer, Chief People

and Culture Officer, and Group Executives– Short-listed (interviews 23-25 March 2010)

• Finance and People & Culture portfolios posted internal recruitment commenced in February 2010

– All placement to be concluded by 31 March 2010

• Technology Innovation, Investment and Economist portfolios to be posted on Monday/Tuesday

– All placements to be concluded by 30 April 2010

• All appointments for the Central and three Provincial nodes will be concluded by 30 April 2010

Operational Update

• National office – Innovation Hub, Pretoria (consolidated space of BioPAD, Tshumisano)– Occupation 01 May 2010

• Provincial offices– Gauteng, Centurion (IF)– KwaZulu-Natal, Durban (LIFElab)– Western Cape (CBT)

• Negotiations underway with partners in:– Free State (MoU)– Limpopo– Eastern Cape

• Plans for NW, NC and Mpumalanga will be developed in FY2010/11 • Other Issues:

– Finalise Operational Model (Q1)– Monitoring and Evaluation (ongoing)– Enterprise Performance Management (Q2)

Thank You!