UK Shipbuilding Enterprise_Storyboard Aide Memoire Notebook.pdf

Building A Thriving Shipbuilding Sector Together
UK Shipbuilding Enterprise Vision &
Visual Target Operating Model 2030
March 2021
Produced by AllChange Strategic Consulting
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• Introduction
• The Complete Picture
• Navigating The Picture
q Value Story Call-out
q Project Roll-out
• Level 1: Delivery & Impact
• Level 2: Ecosystem Connectivity
• Level 3: Capacity & Capability
Contents…
Produced By AllChange Strategic Consulting

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National Shipbuilding
Strategy – Executive
Sponsor
As an island nation, the UK has a long and proud shipbuilding
tradition. The Prime Minister and Shipbuilding Tsar have ambitions
to build on the strengths of our industry and grow a globally
competitive shipbuilding enterprise which supports skilled jobs,
prosperity and levelling up around the country and drives innovation
in green, autonomous and digital technologies. To achieve this we
recognise that industry, government and academia need to work
together as a united enterprise with a clear purpose.
This Storyboard Aide Memoir Briefing Document seeks to build
consensus behind a vision that the Maritime Enterprise Working
Group can collectively endorse. Within it we have identified the
challenges and opportunities facing us as a sector and taken a clear
view of where we are now and where we want to be. This will help
focus our efforts on the actions that are needed to create
meaningful change across the shipbuilding sector
Introduction…
Produced By AllChange Strategic Consulting 3
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Chair of the MEWG

The effects of decarbonisation, digitalisation and autonomy are set
to transform every part of the global maritime enterprise over the next
three decades. The UK is well placed to respond, drawing on our
world class scientific capability and leveraging cross sector
innovation to ensure we lead and shape this process.
Success requires the right combination of policies, incentives,
competition, collaboration and behaviours that creates the right
conditions for investment, innovation and long-term growth.
As the world recovers from the Covid-19 pandemic, the time is right to
create the conditions for success across the UK shipbuilding enterprise
and work together, across industry and government to build back
better, create new jobs and skills, contribute to levelling up and
strengthen the Union.
4
Our story…

Our vision is to be a “SUCCESSFUL, SUSTAINABLE UK
SHIPBUILDING ENTERPRISE”. By 2030, we will be at the
forefront of the technological and environmental innovations
driving our sector and globally competitive in the design, build,
integration, test and evaluation, repair and conversion of warships;
complex commercial vessels; workboats; green shipping and
autonomous technologies; and leisure vessels.
Our domestic and export success will be built on high quality,
innovative, value for money designs, equipment and services
and enabled by a highly skilled and talented workforce;
advanced infrastructure and production techniques; and
coherent cross-Government policies. The shipbuilding
enterprise will be an integrated and collaborative community,
united by a clear purpose and ambition to drive growth and
prosperity in all four nations of the Union.
5
Our vision…

The Complete Picture
How We Will Look In The Future

7
The visual Target Operating Model (TOM) depicts our
vision for the future of the UK shipbuilding enterprise,
with all elements of the enterprise and the key
factors that will influence it represented.
The visual TOM is a 3 layer model, with Level 1
capturing the vision in a rough geographical
representation, although this is not meant to be
geographically accurate or represent all stakeholders
individually.
Level 2 of the Target Operating Model depicts the UK
shipbuilding enterprise ecosystem and describes
how each part of the ecosystem relates to the others.
Level 3 of the Target Operating Model outlines some
of the outcomes necessary to achieve the vision and
some of the levers necessary to achieve the
outcomes. The refreshed National Shipbuilding
Strategy will expand on these in more detail.
How we will look in the future…

Navigating The Picture

9
As we engaged with stakeholders across
the enterprise we encountered a number of
recurring themes and issues which we
have formed into value stories.
These value stories reflect the key ideas
and principles, the effective implementation
of which will enable us to achieve our
vision.
These ideas are distributed across the
visual Target Operating Model but drawn
together here to help tell our story.
Our key value stories…

10
To become a truly competitive
enterprise that is fit for the future,
industry needs to invest in new
production techniques to help
them build the technology of
tomorrow in the most efficient
and cost-effective way possible.
This could include production
technologies like robotics and
automation, digital twins, and
advanced materials.
Industry will need to be able to
make the case for investment
based on the strength of their
order book and future prospects.
Value story 1: Investing in new production techniques…

Building upon the
Government’s social
value policy and the
approach taken with the
Type 31, the Government
needs to ensure that
prosperity and levelling
up are given appropriate
weighting within spending
decisions.
Government needs to
communicate early the
aspects of prosperity that
it is going to value so that
bidders can frame their
offers and help to
articulate the prosperity
case based on data and
evidence.
Value story 2: Valuing prosperity in decision making…
11

12
Given the value the supply
chain adds to the shipbuilding
enterprise, it is important that
government and industry have
visibility of the supply chain.
This will allow us to identify
the strengths that UK industry
should build on and any areas
of supply chain risk and
fragility where improved
resilience is required.
A better understanding of the
UK supply chain would also
help to demonstrate the
economic impact of
shipbuilding spend and foster
innovation.
Value story 3: Understanding our supply chains…

13
Value story 4: Working together to
generate exports…
Our vision for the future is underpinned by full
order books and export-led prosperity
throughout the supply chain. To achieve this,
industry must be proactive in seizing export
opportunities with the help of agile and targeted
Government support. Government must also be
focussed on the removal of tariff and non tariff
barriers to trade when negotiating Free Trade
Agreements.
Industry and government will work together to
develop reference designs for export by focusing
on the key technical areas which will drive global
shipping such as green marine, autonomy and
digitalisation.
Innovative UK marine engineering technologies
and expertise in areas such as Navionics and
naval architecture will support supply chains in all
major shipping sectors. The enterprise will be
supported by a dynamic, coordinated, industry-
led export effort which will effectively tell and sell
the UK story across the globe.

14
To ensure competitiveness in
our key market segments, UK
industry must be able to
develop and deliver
innovative products and
services that can both shape
and adapt to the market.
Research and development
must be focussed on
commercialisation, with
Government providing support
where necessary to help de-
risk technology investment.
In the defence market, the
Royal Navy must give
foresight of its technology
priorities and work with
industry to develop battle-
winning capabilities.
Value story 5: Delivering innovation…

15
With the global shift towards
decarbonisation and the UK’s
Net Zero targets, there is a
growing market for green
shipping technology. The
UK shipbuilding enterprise has
the opportunity to lead the
green industrial revolution by
embracing green technologies
like hydrogen fuels and
battery power. This would
allow the UK to seize a
considerable market share
of a valuable global market.
This will require industry and
Government to co-invest in
commercialising these
technologies and joined-up
policy making to ensure that
take-up is incentivised and the
supporting infrastructure is in
place.
Value story 6: Embracing green technology…

16
In addition to the key value stories, we
identified a number of important initiatives
that will help to create the right conditions
for success across our enterprise.
We will form these initiatives into projects
for roll out across the enterprise in the near
future.
The effective implementation of these
projects will require clear leadership,
outcome based measurement and cultural
and behavioural change.
Project roll-out…

17
We need to take a data driven
approach to understanding our future
skills requirements and the pipeline
of talent to fill them. A virtual National
Skills Academy for Maritime would
work with industry to understand
requirements and with existing
training providers to ensure we can
fulfil the demand.
Central Government and Devolved
Administrations will work hand in
hand with industry to see the
successful initiation of this project.
Project 1: National Skills Academy for Maritime…

18
Project 2: HMG 30-year Shipbuilding pipeline…
To provide visibility of the future
demand, Government will publish a 30
Year cross-Government pipeline of
shipbuilding requirements.
This will update the naval pipeline
published in 2017 and expand its
scope to include opportunities for
commercial shipbuilders too.
With greater visibility of Government
requirements industry will have
greater confidence to invest for the
long term in its people and its assets
to raise productivity and improve
competitiveness in both domestic and
overseas markets.

19
Project 3: Enterprise wide technology roadmap…
To understand where to
prioritise investment to
develop the products
and manufacturing
techniques of the future,
industry will need to
develop a technology
roadmap.
This should be aligned to
Government’s technology
priorities, the needs of
future customers and
international best practice.

20
Project 4: Supply Chain mapping and development…
Greater visibility and
understanding of the UK
supply chain will help
Government and industry to
understand the strengths and
weaknesses of the supply
chain and the value it adds to
the UK economy.
Supply chain mapping would
help to identify opportunities
for growth and innovation.
Primes should also take a
proactive approach to
managing their supply chains,
helping to develop UK
suppliers, including SMEs, to
improve their competitiveness
and the overall value
proposition of the enterprise.

21
Project 5: Research and innovation…
Exploiting the increasing investment
in the UK’s world class research
and innovation capabilities will
underpin the delivery of the national
shipbuilding enterprise.
It will be enhanced by accelerating
the adoption and prototyping of
disruptive technologies, particularly
in materials, AI, robotics and
autonomy. It will be supported by
commensurate investment in
assured digital and cyber services
which will be critical to the effective
exploitation as well as the protection
of new capabilities.
The efficient exploitation of the
potential of the UK’s research and
innovation will depend on stronger
collaborative, commercially
innovative government and
industry partnerships.

22
Project 6: Enterprise leadership and governance…
Delivering the vision requires clear
leadership across all parts of the
enterprise. We need to reflect on the
structures we have in place to ensure
these continue to be fit for purpose and
can deliver tangible actions and
progress.
This will be crucial to enabling
cooperation and an enterprise
approach.
All parts of Government and all parts of
Industry must come together to agree
priorities and ensure our vision is
achieved through effective outcome-
based measurement and a coherent
joined-up approach across
Government and Industry at an
enterprise-wide level.

Delivery & Impact
Level 1

24
Level 1 of the Target Operating
Model depicts our vision of the
future, with all elements of the
UK shipbuilding enterprise and
the key factors that will influence
it represented.
Stakeholders should be able to
recognise themselves, or their
sector, in the Level 1 picture and
understand the role they have to
play in realising the vision.
However, this is intended to be
indicative and representative
and we cannot incorporate
everything.
The following slides highlight the
key elements and messages
embedded within the picture.
Level 1…

25
Drawing on our world class scientific capability and
leveraging cross sector innovation, by 2030, we will
be at the forefront of the technological and
environmental innovations driving our sector.
Our USP will be high quality, innovative designs,
equipment and services, delivered by advanced
infrastructure and production techniques,
utilising the latest design and manufacturing tools
and processes.
This will be enabled by continuing to invest in cross
sector research and development through UK RI,
MarRI-UK, the Defence and Security Accelerator
and High Value Manufacturing Catapult centres to
commercialise R&D and bring ideas to reality.
Engineering consultancies will provide crucial
expertise and support to enable this transformation.
At the forefront of the technological and environmental
innovations driving our sector …

26
Royal Navy brand…
The Royal Navy plays an important
role in supporting our export
success in UK designs, equipment
and systems, expertise and support
services.
The Royal Navy brand and
excellence is recognised and
respected throughout the world,
boosting the exportability of the UK
designs, equipment and services that
it uses.
Through embracing technology and
innovation and promoting ‘Global
Britain’ soft power where ever it is
deployed, such as during the
inaugural HMS Queen Elizabeth
Carrier Strike Group deployment in
2021, the Royal Navy also helps to
export our wider maritime heritage
and expertise, boosting all sectors of
our enterprise.

27
Participation in Offshore Wind development offers
a significant opportunity for the UK shipbuilding
enterprise.
We will leverage our advantage as the world-
leading offshore wind development nation to
become world leaders in decarbonising our
offshore wind vessel support fleet.
Through leveraging cross sector research and
development and investment in integrated
servicing and refuelling infrastructure and
supporting supply chain we will maintain our
position as the top European crew transfer vessel
builder and our new low emission service operation
vessels, installation and cable laying vessels will
service fields in the UK and beyond.
Structure fabrication also offers diversification
opportunities for the UK shipbuilding enterprise.
Opportunities in Offshore Wind …

28
Tidal energy project development and
installation also presents opportunities for the
UK shipbuilding enterprise.
As the global leader in the tidal energy industry,
UK business could capture a significant part of
the global market value estimated to be £76
billion by 2050 with anticipated £1.4 billion net
cumulative benefit across the UK by 2030. We
need to secure the potential jobs and economic
benefits for our future. The UK has 50% of
Europe’s capacity to create Tidal Stream
Energy which will help reduce the UK’s carbon
emissions and create at least 23,500 jobs by
20501
.
Opportunities for the UK shipbuilding
enterprise include zero emission workboats,
tugs and barges as well as structure
fabrication.
1. UK Tidal Energy, www.powerofthetide.uk
Opportunities in other offshore renewable energy …

29
Prosperity and levelling up…
Thriving shipyards and boatyards give rise
to thriving coastal communities,
contributing to UK prosperity and
levelling up across all 4 nations of the
Union.
With investment in infrastructure,
skills, innovation and a focus on
community participation, the sector can
contribute to transforming and renewing
the communities in which they exist.
With over 70% of value in a shipbuilding
project in the equipment and systems
fitted to the vessel, shipbuilding
programmes also generate prosperity
throughout the supply chain across the
UK.
Block build strategies, such as that
adopted for the aircraft carrier build
programme can ensure the further
distribution of prosperity around the UK.

30
Coherent cross Government policies …
Success requires the right combination of
policies, incentives, competition,
collaboration and behaviours that creates the
right conditions for investment, innovation
and long-term growth.
Coherent cross Government policy cannot
achieve this on its own, but it is vital in creating
the right environment for success. Creating a
clear mandate that is actively supported
across Government and drawing on existing
strategies and plans such as Maritime 2050,
coherent, joined-up public policy, reflected in
devolved administrations, that values long term
growth and prosperity over the short term view
can help drive investment, innovation and
growth.
The publication of a 30 Year shipbuilding
pipeline for all government influenced vessels
will also help give industry the confidence to
invest for the long term.

31
Collaboration story…
Collaboration between vessel owner/operators,
designers, equipment and system providers and
ship/boat yards will be vital as the industry seeks
to navigate the challenges of technology and
regulatory change.
New structures and a supportive environment
are required to facilitate collaboration. Regional
technology centres, local enterprise partnerships
and multi user sites bring providers together with
local support to forge new partnerships and
innovative solutions.
Breaking down stovepipes and adopting novel
approaches to financing, including sharing or
pooling of resources and profits will be required so
that the ROI for infrastructure and skills is an
easier case to make.
Cross sector collaboration can bring the
necessary skills and new technologies required to
create world leading vessel designs, systems and
newbuilds.

32
Access to finance story…
Access to finance is vital to provide the necessary
capital for ship owners to fund vessel construction and
purchase and shipyards to fund investment in
infrastructure and modern production facilities.
A suite of services and a supportive environment are
required including mortgage finance, leasing, corporate
financing and public bond issues, in addition to loan
guarantees and preferential interest rates.
Most importantly, supportive, engaged and flexible
finance institutions are required to be able to provide
competitive and innovative finance solutions in a timely
manner to secure contracts and orders.
An enterprise wide education and engagement
campaign will be required to generate the necessary
understanding and trust between industry and new and
existing lenders.

33
Skills part A story…
Access to the right skills and talent to
meet the demands of the UK’s
shipbuilding enterprise is perhaps the
most important enabling factor.
Attracting the right skills and talent begins
in schools and develops through colleges
and universities, also drawing on other
sectors. Suitable apprentice training
schemes are also a powerful tool. Both
STEM and other skills are important to
develop and grow a skilled and
experienced workforce in industry and
intelligent customers in Government.
A virtual skills academy is required to
collate data on future skills demand, work
with academic institutions to ensure a
sufficient supply and facilitate enterprise
career management.

34
Rebuilding and growing
existing capabilities and
establishing new start-ups
requires a rapid build up of
skills and talent, drawing
on similar skill sets in other
sectors and attracting new
workers to an exciting
and vibrant sector.
An enterprise wide
recruitment campaign
will be required to
complement the virtual
skills academy to create
an attractive offer for
highly skilled workers able
to meet the current and
future skills demands.
Skills part B story…

35
The UK’s marine leisure sector is already
world leading in many respects. Its
export success is built on the reputation
of British craftsmanship and luxury,
with numerous successful brands
creating aspirational designs and
vessels, from superyachts to tenders,
which are in demand around the globe.
Reinforcing this export success with
appropriate support from Government
through the GREAT Britain and
Northern Ireland campaign will
continue to generate UK prosperity, jobs
and skills throughout the UK.
Collaboration, access to finance and
attracting and retaining the necessary
skills and talent to meet current future
demand are equally important for the
marine leisure sector.
Leisure sector export success…

36
North American story…
The relationship of the UK’s maritime sector with
the United States is governed by the Jones Act,
driving it to be largely focused on technical
collaboration.
We will continue to work within the Jones Act to
supply designs and key equipment and systems
for a wide range of civil and defence projects.
The relationship between the Royal Navy and US
Navy will continue to be close, developing
complementary capabilities through joint trials and
experimentation and building on the recently
established London-Washington Tech Bridge.
The selection of the Type 26 design for the
Canadian Surface Combatant programme also
presents an opportunity for elements of the UK
supply chain and future collaboration.
The US is an important market for the UK’s marine
leisure sector and continued innovation and
investment will ensure this market continues to
grow.

37
Our export success will be built on high quality, innovative,
value for money vessel designs, equipment and systems, through
life support and expertise across all sectors of the enterprise.
Drawing on our world class scientific capability and leveraging cross
sector innovation, we will be at the forefront of the technological
and environmental innovations driving our sector and globally
competitive
We will be a key player in the green, high value, complex vessels
across a range of relevant vessel types in defence, leisure,
commercial and workboats.
Our marine engineering technology and service companies will
drive the technological and environmental developments in the
supply chains of all major shipbuilding nations.
UK designs, technologies, builders and regulators will be at the
forefront of the global drive to net zero emissions in the maritime
sector.
Rest of the World story…

38
Europe story…
We will also build a strong trading and collaborative relationship with our closest
neighbours in Europe.
We will continue to supply vessel designs, equipment and systems and services to ship
yards and boat yards in Europe.
Our offshore wind service companies will lead in installing, developing and servicing
European fields with low emissions, UK built, UK based and UK flagged vessels.
We will support our world-leading yacht and super yacht sector to continue to enjoy
export success across the continent.

39
Wales story…
The Port of Milford Haven and Pembroke Docks provide a
powerful hub of maritime activity in Wales.
The UK's largest energy port, capable of delivering 30% of
the UK gas demand, it is also a centre for marine
engineering, hosting a Marine Energy Engineering Centre
of Excellence and a Marine Energy Test Area.
With superb proximity to natural wave, tidal and floating
wind energy sources, fabrication and deployment facilities
and a high-skill supply chain, it is an important part of the
UK shipbuilding enterprise.
The Aberporth test range is an important part of the naval
test and evaluation infrastructure around the UK, providing
world class facilities to support the naval shipbuilding sector.

40
With over 70% of value in a
shipbuilding project in the equipment
and systems fitted to a vessel, the
supply chain is an important part of
the UK’s shipbuilding enterprise.
Modern supply chains are many tiers
deep, stretching across borders and
around the globe. The UK’s
shipbuilding enterprise supply chain
stretches right across the UK and
supplies not only UK based customers
but customers around the globe
including in the shipbuilding giants of
China, Japan and South Korea.
Understanding and mapping our
supply chains is important to
recognise our strengths and
weaknesses and improve the
resilience of our supply chains where
necessary.
Supply Chain story…

41
Autonomy story…
Autonomy and its key enablers: Big data, Artificial
Intelligence, Cyber Security and Connectivity is one of
the disruptive technologies set to transform the global
shipping industry over the next three decades.
The UK is well placed to respond, drawing on our
world class scientific capability and leveraging
cross sector innovation to ensure we lead and
shape the adoption of this new technology.
But technological change alone is not enough,
societal, economic and environmental
considerations also need to be addressed and
national and international regulations generated to
establish practical guidance, standards, and best
practice for safe operation. The UK is playing a leading
role in this also.
Collaboration, access to finance and skills and
talent are also vital ingredients for success in this
sector.

42
Green growth will be key to the economic
recovery and sustainability of both the
maritime sector and the broader economy.
Achieving net zero by 2050 requires decisive
action across the economy from both industry
and government: there are opportunities for the
UK to be at the forefront of important
developments in green technologies and deliver
first-mover advantage.
Research and development, cross sector
innovation and collaboration will be key to
support decarbonisation across the maritime
industries and help to ensure a sustainable and
sustained recovery for the sector.
The UK already has a number of zero emission
initiatives and projects utilising different
alternative fuels, but we need to go faster and
be bolder to seize the opportunity that this
transformation presents.
Decarbonisation story…

43
Design and engineering are crucial
strengths of the UK shipbuilding
enterprise. From superyachts to naval
vessels and everything in between, the
UK has world-renowned design
capabilities.
Adoption of innovative, UK generated
designs, in both domestic and export
markets also fosters adoption of UK
generated equipment and systems,
services and expertise.
The digital twin originates at the design
stage and enables innovations in build,
integration and through life support, at
every stage of a vessel’s life.
Engineering consultancies also provide
crucial skills and expertise to enable the
design and engineering functions across
the enterprise.
Design story…

44
Refit, repair and conversion activity is an
important part of the shipbuilding enterprise,
representing more than 50% of UK shipyard
activity.
Domestic and international fleets require
through life support and upkeep, with
modifications increasingly necessary, driven
by IMO regulations. UK yards compete well
in this sector internationally.
A healthy shipbuilding enterprise sustains
the necessary infrastructure, design,
fabrication and engineering skills to
maintain UK fleets, including the RN/RFA
and refit, repair and conversion activity
provides steady work to sustain UK yards.
The Cruise refit market is estimated to
represent more than $5trn over the next 10
years for which the UK is well placed to
compete.
Refit, repair and conversion story…

45
Clyde story…
Any picture of UK shipbuilding would not be complete without featuring the Clyde, a historic base of both naval and commercial shipbuilding. The Clyde continues
to be a hub for both, with investment in new facilities and modern technology creating and sustaining jobs and skills and supporting thriving communities.

46
The National Shipbuilding
Strategy has already
stimulated considerable
investment in modern
production facilities in
Rosyth with the
construction of a new
assembly hall for the Type
31 frigate programme.
These modern production
facilities not only
contribute to improved
productivity and
competitiveness, but also
to increasingly
sustainable shipbuilding
and environment friendly
practices.
Rosyth story…

47
North Scotland story…
The North of Scotland, like many areas around the UK is a hub of maritime related activity which supports ship and boat building activities and the supply chains
which feed them. The offshore energy, fishing and growing aquaculture sectors all provide significant opportunities for the shipbuilding enterprise and support
thriving communities in coastal areas around the UK coast.

48
The Appledore shipyard in
South Devon is another
example of the investment in
rebuilding and growing
our shipbuilding enterprise.
With significant investment
in renewing infrastructure
and re-establishing jobs
and skills, it will be well
placed to compete for
a diverse range of defence,
commercial, renewables,
cruise & ferry and oil & gas
work, including complete
lifecycle management from
technical services,
fabrication & construction, to
in-service support, repair
and maintenance, and
conversion, all the way to
decommissioning. It will also
be able to accommodate
other projects like steel
fabrication for industry and
construction.
Appledore story…

49
South West story…
The South West provides
another powerful example
of the diverse range of
activity in the UK
shipbuilding enterprise.
From naval support
operations to superyacht
and luxury motor yacht
building, such ranges of
activity provide fertile
grounds for collaboration
and innovation, with
multi-user sites offering
flexible and adaptable
facilities for SMEs and
start-ups.

50
Strengthening the Union story…
With activity spanning all corners of the
UK, the shipbuilding enterprise has an
important role to play in all four home
nations and the Devolved
Administrations are crucial part of the
shipbuilding enterprise. UK government
shipbuilding spend can directly benefit
businesses in Scotland, Wales and
Northern Ireland. However, the National
Shipbuilding Strategy will also need to
draw on the expertise of the Devolved
Administrations to maximise
opportunities in areas such as skills
development, innovation and economic
development. By working together to
ensure activity is coherent and aligned
across the UK, achieving our vision for the
shipbuilding enterprise can also serve to
demonstrate the strength of the Union.

Ecosystem Connectivity
Level 2

52
Delivering the vision successfully will require a
step change in how the shipbuilding enterprise
works together. This is not just about how
Government works with industry, but how the
different elements of Government and different
companies collaborate to achieve success.
In order to realise our aspirations, we need to
understand how to arrange ourselves to create the
optimum environment so we are ideally positioned
to achieve our shared goal of being a globally
successful shipbuilding enterprise which supports
skilled jobs, prosperity and levelling up around the
country and drives innovation in green,
autonomous and digital technologies.
The shipbuilding enterprise is broad and diverse.
To better understand all the moving parts and how
they relate to each other, we modelled the
ecosystem using an approach called decision
value chain. This looks at the relationships,
transactions and interactions that occur between
different parts of the ecosystem. It sets out how
the shipbuilding enterprise functions in a process
map.
Ecosystem design……

53
Level 2…
Level 2 of the Target Operating Model depicts the UK shipbuilding enterprise ecosystem and describes how each part of the ecosystem relates to the others. All
elements of the ecosystem are interconnected, with people, data and ideas flowing between the different parts.
The following slides explain each part of the ecosystem and the key messages embedded within the picture.

54
Whether domestic, Government, or international, the
customer is a critical part of the shipbuilding ecosystem.
The UK shipbuilding enterprise must understand the
priorities of their customers. Delivering high quality,
innovative products and services to customers on time
and on budget must be at the forefront of the UK
shipbuilding enterprise value proposition if we are to
achieve global competitiveness. However, the UK
shipbuilding enterprise must respond to emerging
priorities, like delivering social value or meeting green
targets.
The UK shipbuilding enterprise needs to be able to
provide a competitive offer, with timely and flexible
support from Government, in country teams and
distributor networks and private finance institutions
where necessary.
Foreign Direct Investment in new facilities and
infrastructure could also be beneficial to our shipbuilding
enterprise and should be encouraged where appropriate.
Customer contract story…

55
Design and engineering story…
Design and engineering are crucial strengths
of the UK shipbuilding enterprise. From
superyachts to naval vessels and everything in
between, the UK has world-renowned design
capabilities.
Design is at the heart of the ecosystem, with
the digital twin design appearing across a
number of the “islands” in the ecosystem. This
demonstrates the importance of design working
in tandem with shipyards and the supply chain
to embrace advanced manufacturing
techniques.

56
Supply Chain story…
With the majority of a ships’ value coming from
the systems and sub-systems, the supply chain
underpins the UK shipbuilding enterprise. The
supply chain is intrinsically connected to the
shipyards and enabled by R&D and innovation.
Through the digital twin design, it is also linked to
design.
The supply chain also has a relationship with
customers, adding a significant amount of value
through exports to overseas integrators and
shipyards.

57
R&D and innovation are key enablers for
the UK shipbuilding enterprise, and
relevant to all the other “islands” in the
eco-system. Research centres like MarRI-
UK, universities and think thanks provide
thought leadership, evidence for policy
makers and skills (another important
enabler).
R&D and innovation are vital to designers,
shipbuilders, and the supply chain
developing the market-leading products
the customers of the future will want.
However, they are also vital to developing
advanced design, manufacturing and
production techniques required to improve
productivity and competitiveness.
R&D and Innovation story…

58
Integration, services and certification
are an oft-forgotten part of the enterprise,
and an area where the UK can add
significant value.
An important part of this story is the role
of regulators like the Maritime and
Coastguard Agency and Lloyds Register.
The regulator must be a supportive
enabler, working across the enterprise at
every stage in the value chain to ensure
that high standards for certification do not
become an inhibitor to innovation.
Integration, Services and Certification story…

59
The shipyard or boatyard is where all the
other elements come together, providing a
range of built ships and other vessels to the
customer. The shipyard of the future
leverages R&D and innovation spend in its
manufacturing processes and works with
an integrated supply chain and design
house, with a supportive regulator, to
deliver the products our customer wants.
The range of skills required are wide and
varied and changing as technology impacts
production processes.
This is not just about ship or boat building:
through-life support, repair and refit are
just as important, as well as build of floating
structures.
Shipyards story…

Capacity & Capability
Level 3

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62
Translating our Vision to meaningful outcomes…
At the centre, is our vision: A
Successful, Sustainable UK
Shipbuilding Enterprise.
At a National level the outcomes
are around UK prosperity,
levelling up and strengthening
the Union. For industry it is
about generating shareholder
value and profitability.
For customers it is about
innovative products delivered to
time and budget and for
industry it is about full order
books (with both domestic and
export sales), which provides the
confidence to invest for the
long term.

63
We will aim to achieve this vision
substantially by 2030, creating the
conditions for success through
coherent cross government policies
and joint government and industry
leadership within 2 years and have
established world leading innovative
designs and programmes across
the enterprise within 5 years.
Enterprise Maturity story…

64
The levers available to ensure a pipeline of skilled workers are
focussed on the enterprise working together to share data on
skills requirements and gaps so that enterprise-wide
approaches can be developed to ensure these are filled.
By understanding and responding to the priorities of the future
workforce, industry can develop and market an attractive offer
of an exciting and varied career to those entering the workforce
or moving from adjacent sectors.
Change Levers: Skills story…

65
Change Levers: Competitiveness story…
To improve productivity and competitiveness,
industry must be able to make the case for
investment in new production technologies,
incentivised by a sustainable pipeline of
Government opportunities alongside other
domestic and export orders.
This would be supported by an enterprise
approach to sharing best practice, for
example through Centres of Excellence to
improve efficiency in specific aspects of the
value chain and supply chain mapping and
development.
The UK shipbuilding enterprise should also be
open to working with international partners to
leverage experience and best practice where
appropriate.

66
To encourage innovation and technology development
throughout the enterprise – both in terms of products and
the manufacturing process – industry must build a case for
investment, drawing upon Government support where
necessary and aligned to Government’s technology and
innovation priorities to commercialise green and smart
technology.
Incentivising vessel owners to buy green, zero emission
ships and other vessels will help to stimulate the demand
for green and smart technologies.
We must also look beyond the shipbuilding enterprise to
understand and address the dependencies within the
broader maritime sector, like shore-side infrastructure
and the impact of the regulatory process.
Change Levers: Innovation story…

67
Connecting the thinking that has informed our vision and the visual Target
Operating Model to meaningful frontline delivery will require clear
leadership and effective governance which stretches across all parts of
the enterprise.
We need to reflect on the structures we have in place to ensure these
continue to be fit for purpose and can deliver tangible actions and
progress.
This will be crucial to enabling cooperation and an enterprise approach.
All parts of Government and all parts of Industry must come together to
agree priorities and ensure our vision is achieved through effective
outcome-based measurement and a coherent joined-up approach
across Government and Industry at an enterprise-wide level.
Building on the engagement and collective thinking that has generated
this vision and working together in an integrated and collaborative
community we can become a GLOBALLY SUCCESSFUL, INNOVATIVE
AND SUSTAINABLE UK SHIPBUILDING ENTERPRISE that drives
growth and prosperity in all four nations of the Union.
Delivering our vision…

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