By Sara Jones, presented during the 2nd TCI Australasian Cluster Conference, Sydney, 16-17 April 2015

1. Supporting Business Networks and Alliancing
An Australian Experience
Sarah Jones
17 April 2015

2. Supporting Business Networks and
Alliancing
An Australian Experience
John Grace, Director, Entrepreneur Facilitation Services
Sarah Jones, Facilitator, Entrepreneur Development (Tasmania)
TCI - April 2015

3. • 2009 – 2014 Innovative Regions
Centre (Enterprise Connect):
– Defined regions with a small
National team (inclusion of
Western Sydney and Northern
Queensland 2013);
– Experienced Facilitators;
– Objective to support SME’s to be
globally competitive by fostering
industry collaboration and
innovation;
– A range of different ‘tools’ and
methodologies developed to
support the facilitators work.
• 1 July 2014 to current – Facilitation
work under the Entrepreneurs
Infrastructure Programme
The Journey so far

4. The achievements to date have been a direct result of the quality of the team.
National Facilitator network:
• Range of backgrounds – all skilled facilitators and project managers with strong
industry networks.
• Partnership building is a key strength - capacity to build enduring relationships
with industry and ‘agencies’ – trust
• Strategic approach - ability to leverage the ‘tools’ to achieve outcomes (minimal
$ budget – reliant on the ‘people resources’)
The Facilitator team

5. “We are reluctant to be involved in collaboration
as we have had bad experiences in the past.”
“The biggest issue is trust – that is why it hasn’t
worked. Firms are guarded as it is a small
market.”
There needs to be something to collaborate about.
Experienced Facilitators applying a range of tools to support regional innovation
and collaboration. These included:
• Mapping the Connections – supply chain intelligence gathering to foster
collaboration;
• Alliance building – facilitation of ‘discussion’ that has let to joint ventures and
projects to advance business interests;
• Group processes – strategic approaches and pooling of funding to advance
common areas of issue or interest;
• Enterprise Learning – Facilitated ‘knowledge’ workshops;
• Collaborating through Facilitator networks, relationship and regional knowledge
building - Universities, Regional Agencies, State/Local Government;
• Plus – Business Evaluations, Research Connections, Accelerating
Commercialisation, Business Growth Services etc
The tools/approaches applied

6. Central Coast Food Group (NSW)
• Mapping the Connections project involving 29 food and beverage processing
businesses – used to identify issues and opportunities to leverage collaboration;
• Engagement with FIAL to run a pilot Catalyst program– this invitation to
participate in the pilot was a direct result of having access to a group of
engaged businesses;
• Now progressing to explore with group opportunities for further collaboration;
• Common issues:
– Freight and logistics;
– Need for experienced food industry people (skills);
– Competition.
• Challenges:
– Issues and needs are very diverse;
– A couple of large companies (Mars and Sanitarium) and many very small.
Network ‘building’ activity – some examples

7. Network ‘building’ activity – some examples
2012 – Supply Chain Mapping project:
• 46 firms interviewed
• Partnered with University of Tasmania
Strengthening industry
collaboration:
• Ability to alliance
• Leveraging
capability
• Accessing new
opportunities
Business improvement
& development:
• Business
development
skills/marketing
• CI capability
• Leadership
Workforce Planning/
Skills Development:
• Pathways to develop
workers (Lean);
• Business and
management quals.
Research & development
• Emerging
technologies
• Future trends/skills
• Global market intel
OUTCOMES
• Network formed and
actively engaged –
111 participants from
65 firms including
key ‘customers’ and
supply chain firms.
• Alliancing between
firms – freight and
logistics & capability
(design)
OUTCOMES
• Business
Reviews/Eval. – 26
clients
• SCIP/CIP – 5 firms
• CI Network meeting
across region
• Leadership 21
uptake – 5
participants
• RISCI workshop
OUTCOMES
• UTas led –
development of ‘Lean’
pathway from Cert III to
Masters and funding
support sourced – 115
places taken by
industry, 130+ for 2015
‘EoI list’ Team leader &
management courses
in development.
OUTCOMES
• Campus
redevelopment – ‘Hub’
for advanced
manufacturing being
explored –Follow-on
research from mapping
The Rise of New
Manufacturing

8. Some of our experience to date:
• Rapid Alliance – Western Australia successful in winning several large
contracts including Perth International Airport Expansion, Nammuldi below
Water Table Iron Ore Expansion and Eastern Goldfields Prison.
• South Coast Food Alliance - Illawarra Region are jointly developing offerings
to attract new market segments to the region.
• Australian Steel Fabricators – North Queensland have joint tendered for
contracts and recently concluded skills assessment process within all of their
workforces to up-skill staff and provide a quality service to their customers.
• South Coast Tourism Group - Illawarra Region to increase tourist visitation to
the Shoalhaven LGA in an effort to offset the seasonality of trade.
• Pacific Integrated Project delivery – North Queensland planning to collect
enough critical mass to position themselves as a tier one contractor and bid for
large NBN co project across Australia.
Alliance Building and Group Activity

9. Some of our experience to date (This is not a complete list – there are many more )
• Tasland Produce – Tasmania vegetable growers formed a joint venture to
invest in processing capability and achieve scale. Successful in securing new
contracts through the alliance.
• Pentad Mining Services – Hunter region NSW joint venture formed to
leverage complementary capabilities to increase their overall competitiveness
and market penetration in the mining services industry.
• Tasmanian Regional Sawmills support through Group process to assist small
sawmills at time of significant industry change to define a new future and
explore collaborative opportunity to develop new products.
• Common themes:
– Capability and scale
– Access to new markets
– Risk ‘sharing’
Alliance Building and Group Activity

10. University of Newcastle – Evaluation Framework to assess Impact - 2014
Independent research project identified the a number of ‘unique values/features’
provided by the Facilitators' work in the regions including:
• “Improved level of connectivity in the region and ability to drive connectivity
• Skills in alliance building and creating space and place for collaboration
• Proving new perspectives about the importance of collaboration and innovation
• Brokering connections with government stakeholders and accessing funding
and resources
• Brokering connections with universities and other education and research
providers
• Contributing highly informed, well developed strategic perspectives
• Developing cross-institutional connectivity – councils, with education providers,
with government, with industry
• Mapping and describing supply and value chains
• Enhancing regional leadership and cohesion”
Impact to date

11. • Entrepreneurs’ Infrastructure Programme is the Australian Government’s
flagship initiative for business competitiveness and productivity at the firm level.
It forms part of the Australian Government’s new industry policy outlined in the
Industry Innovation and Competitiveness Agenda.
• Focus on 5 growth sectors – aligned to the Industry Growth Centres.
• Services offered in the area of:
– Business Management:
• Business Evaluations
• Supply Chain Facilitation
• Business Growth Services
• Business Growth Grants
– Research Connections
– Accelerating Commercialisation
Future Directions

12. • Continued strong emphasis on skilled business and industry facilitation;
• Maintaining close partnerships with state and regional organisations, industry
bodies and universities;
Facilitators role:
• In-depth work to assist SMEs become more competitive in supply chains,
including regional, national, major project and global supply chains;
– Market opportunity analysis,
– Mapping supply chain connections and capabilities,
– Assisting SMEs to close knowledge, capability and capacity gaps,
– Building SME alliances and networks.
• Supporting the work of the new Industry Growth Centres - provision of supply
chain intelligence and undertaking 'grass roots' network and alliance building.
• Tailored, specialised assistance to growth-oriented SMEs
The ongoing role of Facilitators

13. THANKYOU
For more information http://www.business.gov.au/advice-and-
support/EIP/Pages/default.aspx
Department of Industry and Science | Business
John Grace
John.Grace@industry.gov.au
Sarah Jones
Sarah.Jones@industry.gov.au