9 July 2015: Introduction to the Centre for Defence Enterprise
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Presentations from 9 July 2015 Innovation Network event. For more information see: https://www.gov.uk/government/news/cde-innovation-network-event-9-july-2015-london
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9 July 2015: Introduction to the Centre for Defence Enterprise
- 1. Jim Pennycook CDE Head of Operations
- 2. CDE Why
- 4. The aim of CDE
- 5. Rapid technological change Defence Other markets Utilisation
- 6. CDE directive Prove the value of innovative, high-risk, high-potential-benefit research to enable development of cost-effective military capability advantage Defence White Paper – National Security Through Technology Feb 2012
- 7. First point of contact ‘CDE remains our first point of contact for those who wish to submit a research idea to the MOD.’ Defence White Paper – National Security Through Technology Feb 2012
- 10. Routes to market
- 14. Intellectual property Defcon 705 Rights of use
- 15. Risk
- 17. Managing innovation Proof of concept Development Innovation Future capability CDE MOD + investors
- 18. Two routes to funding Enduring Themed Not classified Enduring challenge competition Themed competition £ 3M
- 19. Enduring challenge Perpetual Radical innovation £3M per year
- 21. Challenge framework ProtectionLethality Human performance Mobility Situational awareness CommunicationData Power Lower cost of ownership
- 23. Current competitions Theme Value* Open source big data insight £2.25M Persistent surveillance from the air £2.25M Agile, immersive training £2.25M ‘What's inside that building?’ £1.15M Understand and interact with cyberspace £1.00M *Value displayed is the total competition funding available for phase 1 and phase 2. See competition documents for more detail
- 24. Online bid submission CDE portal Only route Low overhead
- 25. How has CDE performed?
- 26. CDE in numbers 5633 proposals received 57%
- 27. CDE in numbers 17% of proposals funded 19%13% E T
- 28. CDE in numbers 932 contracts placed 43%
- 29. CDE in numbers £57M invested 1 2 3 4 5 6 7 8
- 30. What next for CDE?
- 32. Innovation Network events Events supporting the next 3 themed competitions will soon be posted on the CDE website Sign up to get updates
- 35. Innovation Network event 9 July 2015
Editor's Notes
- Introduction slide [NEXT]
- Why CDE? MOD not taking advantage of innovation within industry and academia. Specifically within SMEs, academic spinouts and from markets other than defence [NEXT]
- Military capability. This is what today is all about. Simply because Innovation = military advantage. Persistent advantage. You are all looking to make a contribution to the UK Armed Forces. [NEXT]
- To: Source the best technology and innovation from the Best providers from wherever they are No barriers to engagement
- Previously military R&D = ‘cutting edge’ of technology development Now other markets drive pace of technological development / change that individual Defence Ministries cannot hope to control or compete with. Growing sophistication of non-Defence market driven technologies presents a threat. Threat that adversaries can match (or surpass) expensively developed existing Defence capabilities with relatively cheap ‘off the shelf’ items. In terms of OPPORTUNITY, Defence can benefit from utilising innovations whose development has been financed in non-Defence markets. ‘Black Hornet’ nano-unmanned aerial system now being deployed by UK Armed Forces Technologies developed from non-Defence markets, such as mobile phone camera and battery technologies. Made it possible to develop advanced flying platforms that weigh just a few grams. [NEXT]
- In 2012 the game changed for CDE – progress had been visible and the initial experiment was deemed a success. The Defence White Paper - National Security Through Technology: repeatedly used CDE as a positive example of innovation management and formally tasked CDE. This is what CDE is charged with delivering. [NEXT]
- ‘CDE remains our first point of contact for those who wish to submit a research idea to the MOD.’ We had become the approachable face of MOD. Outside the wire and visible. Events such as this reinforce that fact. [NEXT]
- Whitepaper: Expanding CDE into security market as an efficient means to access innovation. Providing more market opportunity for the CDE audience. Held competitions on behalf of the security agencies and more to come soon. Developing a competition with GCHQ that will be released shortly. And in discussion with other security agencies. Not surprising given the overlap in technologies of use to both markets. [NEXT]
- The White Paper also charged with seeking ways to provide more support to SMEs in: Understanding how MOD operates Development of routes to market for potential defence and security products Enhance exploitation mechanisms with our suppliers and investors Ensuring SMEs are not disadvantaged CDE = SME champion in MOD and security.. Support to SMEs drove the development of the principles that CDE operates under. [NEXT]
- The most difficult aspect of what CDE is charged to address. The development of routes to market - The ‘valley of death’ within the innovation pathway. CDE’s contribution to the UK growth agenda. How? Via networking events such as these. Encouraging collaboration. Marketplace events. Nurturing through Phase 2 funding. Introduction to investors. Established Defence players and other markets. The themed competitions being briefed today are key to this. UK Defence industry, DGP , UKDSC 2D3 story – yesterday at the Dstl industry day [NEXT]
- Five key operating principles underpin the CDE model CDE has survived the ‘difficult early years’ that affect all disruptive innovative small businesses……. We’re 7 years old, and I put that longevity down to the consistent application (day by day) of five key operating principles….. CDE is all about engaging innovators. And that’s not just potential bidders from small companies and academia, but it’s bringing those people together with big players in the defence industry and MOD and Military experts. We want the best ideas that successfully complete an initial proof-of-concept package of work, to go on to further development and future exploitation to realise their potential capability benefit. The second principle is that we set out to provide fair, equitable, and accessible funding opportunities for all potential innovation providers CDE competitions are run on a ‘level playing field’ basis All participants are treated equally and provided with an identical level of information throughout the process Successful proposals are 100% funded with average contract values of around £70k; this is deliberate; it enables contribution from even the smallest suppliers CDE competitions provide on-going opportunity for bidders On average, we’ve launched an individual research competition once every THREE weeks in the past year The fourth principle of CDE is to minimise the participation costs faced by potential innovation providers to the lowest practicable level. It’s the same bidding process, the same assessment criteria, the same contracting terms and conditions across ALL CDE competitions. It’s a one-off investment in understanding the ‘rules of the game’. That’s important as we want to keep innovators’ bidding costs as low as we possibly can. Underpinning those 5 operating principles is our benevolent stance on Intellectual Property. Under CDE’s standard contract – called DEFCON 705 – you, the bidders, retain all of the background and foreground IP associated with your innovation. We, MOD, retain a ‘right of use for defence’ over the foreground IP. But you need to understand what that means and bcome familiar with Defcon705. talk to commercial. This enables you to exploit your IP generated from the work done via the CDE contract in not only the defence market but also wider markets outside of defence and security. [NEXT]
- Championing an innovation network for defence and security The event today is part of that. Engaging with innovators. Offering value beyond simply the competitions. An opportunity to network with MOD and the established defence industry, to seek out opportunities to collaborate. Also collaboration with each other too. Minimise the cost of participation – same process, same terms and conditions Maximise benefit to successful bidders A route to market [NEXT]
- Funding opportunities – we never offer an opportunity without having funding available. Always 100% funding of successful proposals . No need to match funding CDE offers: Awareness of challenges and need. This is still a fair, equitable, and accessible funding opportunity for all potential innovation providers. CDE competitions are run on a ‘level playing field’ basis All participants are treated equally and provided with an identical level of information throughout the process [NEXT]
- Defcon 705 Benevolent stance Proposer retains ownership of the foreground IP generated Rights of use Exploit IP into other markets As I already mentioned, this competition will use CDE’s standard contract terms and conditions. For intellectual property this is called DEFCON 705. It means that you, the bidders, retain all of the background and foreground IP associated with your innovation. We, MOD, retain a ‘right of use for defence’ over the foreground IP. But you need to understand what that means and become familiar with Defcon705. talk to commercial. This enables you to exploit your IP generated from the work done via the CDE contract in not only the defence market but also wider markets outside of defence and security. DSC have no automatic rights of use. You are able to discuss your projects with them if you choose to, and these conversations are covered by an NDA. [NEXT]
- CDE is unusual in that it is a government team charged with taking risk. Especially with the enduring challenge competition that I will talk about in a moment. We still like a winning hand! [NEXT]
- Regulated Transparent Auditable This CDE themed competition complies with all relevant Government regulations and wider policy initiatives. SBRI compliant. Competitions advertised on Innovate UK website. SBRI are here today. Most importantly, that’s about ensuring that our competitions are run in a regulated and transparent manner. This CDE enduring challenge and themed competition complies with all relevant Government regulations and wider policy initiatives. Most importantly, that’s about ensuring that our competitions are run in a regulated and transparent manner. Maintaining at innovative business model, and stance, that permit delivery against extant government policy, such as SBRI, and the rapidly respond to changes in policy. [NEXT]
- This graphic tries to illustrate the CDE business model for managing innovation. Small project values, Large number of projects, High risk / high potential benefit Fund ~150 projects a year Produce an initial evidence base to justify additional investment Evidence unlocks further Defence Science and Technology Programme investment Investors + established industry and other sources Core programme: Large project values, Small number of projects, Lower risk / defined benefit We set out to fund many projects (~150 per year). Typically each are relatively low financial value (~£70 - 100k). Most are deliberately ‘high risk’. We’re prepared for failure of individual projects BUT we want to FAIL FAST and FAIL CHEAP. The projects fund just enough work to produce an initial evidence base to justify additional investment. [NEXT]
- CDE offers two routes to funding Both operate at the UNCLASSIFIED level. Now termed OFFICIAL [NEXT]
- The Defence Enduring Challenge Competition is the cornerstone of CDE. A budget reserved for the most of exceptional ideas. That should set the context as to the kind of responses we are looking for into the Enduring Competition process. It’s the things we just haven’t thought about; those things that really do come out of the left field. It’s for those radical innovations that could fundamentally change the way we do business in Defence. Often it’s a great route for those that are new to Defence. As ‘outsiders’ often bring a new, fresh perspective that hasn’t been seen before. [NEXT]
- Previously called the Open Competition but modified on feedback from proposers. Too ‘open’, offering unlimited possibilities The competition need to be bounded but not bounded to offer some direct as to what was needed. In response we developed set of 9 enduring challenges to form a framework or taxonomy for guiding thoughts and actions. And submissions. Enduring challenges to the military that have stood the test of time. [NEXT]
- Human performance (physical and mental, systems interface, survivability, sustainment, training, medical) Lethality (weapons -conventional, novel, directed energy, defence, less-than-lethal) Protection (Personnel, platforms, facilities, digital systems, materials) Mobility (platforms [air, land, sea, space, human]) Lower cost of ownership (platforms, equipment, facilities) Explained more on our website. [NEXT]
- Themed competitions programme is distinctly different to the Enduring Challenge competition. Themed competitions are borne out of our existing MOD research programme. They are characterised by boundaries; a bounded set of challenges; a bounded budget that you can bid into; and a bounded response timeframe for the competition, unlike the enduring challenge competition. More opportunity. [NEXT]
- Themed competitions programme is distinctly different to the Enduring Challenge competition. Provides ongoing opportunities for innovators. Themed competitions are borne out of our existing MOD research programme. They are characterised by boundaries; a bounded set of challenges; a bounded budget that you can bid into; and a bounded response timeframe for the competition, unlike the enduring challenge competition. More opportunity. Competition Phase 1 Phase 2 Open source big data insight 0.25 2.00 2.25 Persistent surveillance from the air 1.00 1.25 2.25 Agile immersive training 1.00 1.25 2.25 What's inside that building? 0.65 0.50 1.15 Understand and interact with cyberspace 0.50 0.50 1.00 Totals 3.40 5.50 8.90 [NEXT]
- Only one route to submit your research proposal to us CDE online Portal Keep overheads low – for you and us Allows us to control the distribution of your proposals It’s an important control measure because we take our reputation as a ‘trusted guardian’ of supplier IP very seriously indeed. The reason we use this one route for all competitions is that it keeps overheads low. For us and for you. We know that the current Portal could be better, and we are working on that. Another important, and often missed, point about the Portal is that it allows for controlled distribution of you research proposal around our network of assessors within MOD, and for this competition, DSC. It allows very tight control over who gets to see your bids. [NEXT]
- CDE is 7 years old. How has CDE performed?
- CDE is 7 years old. How has CDE performed? [NEXT]
- Over 13% and over 19% = 17% rounded up!! SME 42.9 Academia 26.5 Industry 28.5 [NEXT]
- 5023 proposals received 857 proposals funded 17% of proposals funded £51M invested 23% funded with academia 44% funded with SMEs [NEXT]
- Consistent over the years but big increase this year [NEXT]
- The future for CDE. Social capital More opportunities – themed competitions – DSC and GCHQ More networking opportunities Follow-on funding. Explain Phase 2 pilot. Portal 2 – we have representatives here today (identified by the watermelon-coloured lanyards!) from the company who are working on a new online submissions portal for CDE. They’d like to talk to you today about what you want and need from the new portal, so please have a chat to them if you can. They’ll be available in and around the networking Hub all day. [NEXT]
- CDE Innovation Network events. Advice Opportunity Networking Single event offering the full range of CDE activities and events to potential bidders from SMEs and academia – and more. Modular – build the day to suit you. CDE and themed competition briefings and face-to-face ‘surgery’-style meetings Emphasis on networking, information and demonstrations of previously successful CDE projects background talks to inspire submissions to the enduring challenge competition, CDE workshops on how to create an effective proposal on the Portal.
- Our next Innovation network events are also both in London, and we have 2 events together over 2 days. First is on Wednesday 8 July and is in association with the UK Defence Solutions Centre. Two themed competitions will be presented on ‘persistent surveillance from the air’ and ‘agile, immersive mission training’. Each of these competitions has up to £1 million for phase 1 and at least £1.25 million for phase 2. The second event is on Thursday 9 July and another 2 themed competitions will be briefed: one on ‘understanding and interacting with cyberspace’ and the other called ‘what’s inside that building?’. [NEXT]
- You can always keep up to date on our website. Here you can sign up for alerts so you don’t miss out on any future announcements. [NEXT]
- Bruce’s presentation today - ‘submitting a effective proposal’ Increase your liklihood of success If not: Clear Concise Evidence based Something that never changes is the need to submit a high quality proposal. [NEXT]
- Questions? Holding slide. [NEXT]