Connected digital additive manufacturingCompetition Briefing

07th June 16

Health & Safety

Welcome & Introductions

• Barry Shaw – Competitions Manager, Innovate UK

• Sarah Vodden – Head of Pre Award, Innovate UK

• Robin Wilson – Lead technologist - High Value Manufacturing, Innovate UK

Morning Agenda

•Introductions•Innovate UK•Competition scope / Background•Q&A (Scope)•Application criteriaBreak•Funding•Your project costs•Submitting your application using the Innovation Funding Service•Q&A (Process)

Afternoon Agenda

12:30 Introduction to the KTN12:45 Question and Answer Session13:00 Lunch and Networking/Partnering opportunities14:00 Setting the Scene for Industry 4, 4 x Extended pitches of case studies relating to Industry 4.014:30 Industry 4.0 - Q and A session, led by Robin Wilson14:45 Project need/offer pitches 15:15 Partnering opportunities16:00 Wrap up and close

By the end of the briefing you should..

• Understand the scope and objectives of the competition• Understand the competition process and criteria• Understand the application requirements• Be clear on the timelines & deadlines

All presentations will be available on the competition webpage

The UK’s Innovation Agency

The UK’s innovation agency

We know that true innovation disrupts. It will create new products, services and industries that we don’t even know about yet.

It’s our vision to help the UK economy grow head and shoulders above other nations by inspiring and supporting pioneering UK businesses to create the industries of the future.

We already have a strong track record of driving growth, by working with companies to de-risk, enable and support innovation.

A new phase

• The start of a new Spending Review period, 2016-20

• The government plans to publish a National Innovation Plan in 2016.

• Part of this will be Innovate UK’s new strategy, describing our aims over the next four years.

• Meanwhile our Delivery Plan explains what we are doing in the first year of this new phase – the financial year 2016/17.

“Whether you have a small or large business or are involved in any way in innovation, this plan will explain how we are working this year to accelerate its pace - and ultimately increase UK productivity and growth.”

Ruth McKernan, Chief Executive

Important changes

We are:

• aligning our programmes into new simpler sector groups

• changing our sector funding competitions to be simpler and broader in scope

• enhancing our innovation networks - nationally and regionally

• piloting competitions for new innovation finance products

• Introducing a new online competition applications system –

the Innovation Funding Service.

5-point plan

Working with the research community and across Government to turn scientific excellence into economic impact

Accelerating UK economic growth, nurturing small, high-growth companies with strong productivity and export success

Building on innovation excellence throughout the UK, investing locally in areas of strength

Developing Catapults within a national innovation network

Evolving our funding models; helping public funding go further

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Sector focus to accelerate growth

Emerging and Enabling Technologies

Identifying and investing in technologies and capabilities that will lead to the new products, processes and services of tomorrow

Health and Life Sciences

Focused on agriculture and food and healthcare, underpinned by bioscience and medical research and enabled by engineering and physical sciences

Infrastructure Systems

Optimising transport and energy systems and integrating them with other systems such as health and digital

Manufacturing and Materials

Advancing manufacturing readiness so R&D and technology developments increase productivity and capture value in the UK

New simplified Innovate UK competitions

Expected open date

Manufacturing and Materials 9 May 2016

Open 6 Jun 2016

Infrastructure Systems 4 Jul 2016

Health and Life Sciences 12 Sep 2016

Emerging and Enabling Technologies 3 Oct 2016

We will also run competitions in partnership with other organisations.For all competitions see the Delivery Plan or www.innovateuk.gov.uk

Connecting: strengthening our networks

• We help businesses grow by connecting: linking them with academics, government, new partners and funding opportunities.

• We provide direct guidance and help business navigate all the support opportunities that exist.

• This year we will build support through the Knowledge Transfer Network (KTN) and Enterprise Europe Network (EEN), helping innovative businesses nationally and regionally.

Our budget

Official Sensitive

The Innovation Funding Service: Welcome to “Private Beta”

Find out more

www.innovateuk.gov.uk

Competition briefing:

Connected Digital Additive Manufacturing7 June 2016

Robin WilsonLead Technologist

COMPETITION AIMS AND SCOPEWhat this competition is about

£4.5 million funding for Connected Digital Additive Manufacturing – opened 23 May 2016

Competition aims

1. To stimulate and broaden innovation in additive manufacturing equipment and processes

2. To enable companies to explore new sources of value and competitive advantage, within and beyond the immediate AM process chain, by harnessing the power of connected digital manufacturing

Competition scope – the ‘must haves’

• Projects must have a significant innovation step in both of the following complementary areas:– additive manufacturing – connected digital manufacturing

• Scope of the Additive Manufacturing area is defined by 4 topics – you need to address 1 or more of these

• Scope of the Connected Digital Manufacturing area is defined by 5 capabilities – you need to address 1 or more of these

Competition scope – the ‘must haves’

1) Additive manufacturing topics in scope

1. novel additive manufacturing build process with a viable route to market for UK-based machine platform manufacture

2. large-scale build platforms with a build size in metres with a viable route to market for UK-based machine platform manufacture

3. automation, predictability and cost reduction in the pre and post-process material supply and finishing activities. Projects must show a significant improvement to the overall AM process chain productivity

4. innovative hybrid or interrupted AM processes and/or their integration with the adjacent process(es)

Your project must focus on one or more of these 4 priority topics.

Scope clarification – more detail on key points

• Viable route to market for UK-based platform manufacturer– “platform” includes AM build machines and pre/post processing machines and associated

equipment/hardware.– “platform” also includes System Integrators, ie: companies providing an integrated suite of

equipment and/or services to the end user. If this has to include some non-UK sourced equipment, we will consider the application, if all the project innovation activity is done in the UK. Please send outline of such proposals to our Helpdesk before 13 July so we can advise on scope fit.

• Automation, predictability and cost reduction in the pre and post-process material supply and finishing activities. – this describes the physical/hardware/material activities, pre and post AM build.– includes material characterisation and handling, but project must be focused on innovating

actual (physical) production and supply/distribution capability.• Development of new materials is out of scope, but if a small amount of material

development is required to support the main innovation in equipment and processes, it can be included.

Competition scope – background

Why connected digital?

When is the 4th Industrial Revolution happening?

What are the benefits of Industry 4.0 ?

Competition scope – backgroundWhy connected digital?• AM equipment market is rapidly growing (42% cgr) but build platforms and

pre/post processing facilities are still configured for prototype or job-shop operations, not series production.

• This may be OK for today, but will not be in 5-10 years’ time.• The journey from “specialist prototyping facilities” to the required “integrated

production system architectures” is unclear.• The system architectures for maximising the business potential of AM are

unlikely to look like mass production factories, today or tomorrow.• Innovative sources of value capture and competitive advantage beyond the

immediate build platform/ build expertise need to be discovered and exploited.

Our responseThrough the structure of this competition and focused networking activities between additive and digital communities, Innovate UK and the KTN are seeking to help companies and academia to explore and exploit this journey.

Competition scope – background

When is the 4th Industrial Revolution happening?

NOW !IMAGE COURTESY OF MTC

Competition scope – background

What are the benefits of Industry 4.0 ?• simple, effective and powerful brand name• an agenda for change, for competitive advantage• helps anchor expertise and production capacity• people say it’s all about getting more value from data• forum to help people explore what it means to them

For the purpose of this competition, we have called it “Connected Digital Manufacturing” and defined its scope

by 5 dimensions or capability statements

Competition scope – the ‘must haves’

2) Connected digital capabilities in scope

1. interoperability: ability of internet-enabled machines, devices, sensors and people to connect and share data with each other securely (and seamlessly) without the need for specialist technical expertise on the part of the user

2. enriched modelling - integration of raw, operational data from sensors into elements of models and simulations to improve the accuracy and completeness of their predictions and to aid visualisation and decision-making

3. autonomy: ability of machines and systems to make decisions and perform tasks with limited human assistance/intervention and to learn from experience and data

4. real-time insights: capability to collect and analyse data from manufacturing operations and provide the derived insights to support decision-making in real or near-to-real time

5. modularity: engineering of flexible and modular systems, components and services that can be adapted, added, removed and interplayed to meet changing requirements

Your project must innovate in at least one of these 5 connected digital manufacturing capabilities.

• Technology can enable innovation, but the success of any product, service or process innovation ultimately depends on human motivations and behaviour.

• Customers don’t buy technology, they buy what technology does for them.

• Use early-stage design process to better understand and respond to customer wants and needs.

• Well designed solutions are not only feasible, but also desirable, beneficial and easy to use.

Design – Better experiences, not just styling

• We are keen to support projects that demonstrate excellent, early-stage design process.

• A strong application should reference the actions you will undertake to gain customer insight and convert that insight into better experiences.

• You may wish to budget for subcontracting of design activities within your project as an allowable cost.

• Find out more and connect with designers via the KTN, Design Council, Service Design Network, BIDA.

Design – Better experiences, not just styling

Standards

• We know that development of Standards is critical for successful commercialisation.

• Standards can include Design, Materials, Production Processes, Product Function, Data and Data Exchange, System Interoperability, etc

• Innovate UK is unable to fund standards development activity as such.

• However, we can fund work which leads to the development of standards, if that work is closely associated with the main, funded innovation activity

• In this competition we encourage consortia to include work leading to the development of standards, provided it is closely associated with the innovation activity, either around the additive manufacturing or the digital elements or both. Such activity should be limited to no more than 10% of total project cost.

Competition scope – the ‘should not haves’

• In this competition, we won’t fund– incremental innovation or development of existing (commercially

available) machine platforms. – development of products made on standard, commercially-available AM

machine platforms using existing or new materials– atomic layer deposition– bio-printing– rapid prototyping and tooling machine platforms and related

applications (ie: machine platforms which are only suitable for prototyping and tooling applications)

– connected digital manufacturing activity that’s unrelated to the AM innovation project content

Funding allocations• We have allocated up to £4.5 million to fund industrial research projects in

this single stage competition. You could get funding of up to:– 70% of your eligible project costs if you are a small or micro business– 60% of your eligible project costs if you are a medium sized business– 50% of your eligible project costs if you are a larger business

• Projects must be led by a UK-based business and involve at least one other company, this is to encourage supply chain development and SME participation.

• We expect projects to last 1 to 3 years. They must range in size from total costs of £500,000 to £1.5 million.

• We also encourage academic organisations to take part where needed. But you can allocate no more than 30% of your total project costs for research organisation funding.

• You must allocate at least 70% of your total project costs to the additive manufacturing topics. You must allocate between 15% and 30% to the connected digital manufacturing capabilities.

New: Innovation Funding System (IFS)

• This Connected Digital Additive Manufacturing competition is the “private beta test” for IFS.

• Applicants will use the on-line application system, details to follow later this morning, highlights include:– Lead applicant completes on-line application form

– Menu-driven approach eg: Companies House look-up data

– Same 10 questions used as in previous years (may change in future)

– Lead applicant invites partners via IFS system

– Partners complete their sections of the application

– IFS calculates project costs from your input data

– IFS saves as you go, only press “submit” once, at end when fully completed

• If you have difficulty using IFS please get in touch with the competition Helpdesk straight away, this will enable us to address any user or system issues as quickly as possible.

And finally …• Competition briefing events:

– London 7 June– Liverpool 14 June

• Registration by 20 July, submit by 27 July, noon.

• Competition Support Helpline– Please direct all enquiries through our helpline process (phone or

email) – details on Gov.UK– The support team in Swindon were briefed on this competition recently

• Any answers we give to questions you ask us today should be regarded as indicative only (ie: please use Helpdesk route).

Find out morewww.innovateuk.gov.uk

Details of this competition are at:https

://www.gov.uk/government/publications/funding-competition-connected-digital-additive-manufacturing

Questions & Answers

Application Process

FUN IND EXP

Market readiness

ResearchCouncils

Commercial InvestmentVenture Capital

Innovate UK and its co-funders funding

Blue skyFeasibility

Technology Demo

System Dev.

System Qual.

Technology Development

Prod. Prototype

Commercialisation

Types of project

Competition eligibility

Type of Competition & Research Category

Single Stage, Industrial Research

Project compositionCollaborative – must include at least 2 businesses

Funding available Up to £4.5m

Project Size Between £500k and £1.5m

Approx % Funding for business 70% Small / 60% Medium / 50% Large

Anticipated Project length Between 1 – 3 Years

Application form 10 marked questionsNotifications

Assessment and moderation panel

Submit your application

Key DatesTime line Dates

Competition Opens 23rd May 2016

Briefing Event 7th June 2016

Registration Closes Noon 20th July 2016

Submission Deadline Noon 27th July 2016

Decision to applicants October 2016

Competition Page

Application Form

Application Structure

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Application details

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Project Summary

This is an opportunity to provide a short summary of the key objectives and focus areas of the project. It is important that this summary is presented in reference to the main outline of the project, with sufficient information to provide a clear understanding of the overall vision of the project and its innovative nature. This summary is not marked, but provides a summary of your proposal for the benefit of the Assessors.

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Public Description

If your application is successful, Innovate UK will publish the following brief description of your proposal. Do not include any commercially confidential information, for example Intellectual Property or patent details, in this summary.

Whilst this section is not assessed, provision of this public description is mandatory. Funding will not be provided to successful projects without this.

This part of the application is marked Yes or No

Gateway Question: ScopeHow well does the project fit the competition?

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The application questions

Each question is equally weighted with 10 marks per question

Q1: Business OpportunityWhat is the business opportunity that your project addresses?

You should describe:• the business opportunity you have identified and how you plan to take

advantage of it• the customer needs you have identified and how your project will meet

them• the challenges you expect to face and how you will overcome them

Q2. Potential marketWhat is the size of your potential market?

Describe the size of the potential market for your project, including:• details of your target market, for instance, how competitive and profitable

it is• the current size of the market, with actual and predicted growth rates• the market share you expect to achieve and the reasons for this estimate• the wider economic value you expect your project to add to the UK and/or

the EEA (European Economic Area)• Tell us what return on investment you expect your project to achieve. You

should base this estimate on relevant industry data and tell us how you have calculated this.

Q3: Project exploitation How will you exploit and market your project?

• Describe the potential outputs of the project, such as:– products or services– processes– applications

• Describe how you will exploit these outputs, such as:– the route to market– protection of intellectual property rights– reconfiguration of your organisation's value system– changes to business models and processes– any other methods of exploitation and protection

Q4 What economic, social and environmental benefits do you expect your project to deliver and when?

Describe all the benefits you expect your project to deliver including:

• Economic

• Social

• Environmental

Q5: Economic benefit: What technical approach will you use and how will you manage your project?

• describe your technical approach including the main objectives of the work• explain how and why your approach is appropriate• how you will make sure that the innovative steps in your project are

achievable ?• describe rival technologies and alternative R&D strategies• explain why your proposed approach will offer a better outcome

APPENDIXYou may also upload a project plan (in PDF format) with your answer to this question. This will show the assessors how you plan to run the project.

Q6: Innovation: What is innovative about your project?

You should show how your project will:• push boundaries beyond current leading-edge science and technology• apply existing technologies in new areas• Explain the novelty of the research in an industrial and/or academic

context.• Provide evidence that your proposed work is innovative. This could

include patent search results, competitor analyses or literature surveys. If relevant, you should also outline your own intellectual property rights.

APPENDIXYou may upload a pdf file in support of your answer to this question

Q7: Risks: What are the risks (technical, commercial and environmental) to your project's success? What is your risk management strategy?

• identify the project's main risks and uncertainties• detail specific technical, commercial, managerial and environmental risks• list any other uncertainties such as ethical issues associated with the

project• provide a detailed risk analysis• rate the main risks as high, medium or low• show how you'll limit the main risks• identify the project management resources you'll use to minimise

operational risk• include arrangements for managing the project team and its partners

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Q8. Project Team: Does your project team have the skills, experience and facilities to deliver this project?

You should show your project team:• has the right mix of skills and experience to complete the project• has clear objectives• would have been formed even without Innovate UK investment

Describe the benefits of the collaboration.

APPENDIXYou may upload a pdf file in support of your answer to this question

Q9: Funding: How much will your project cost?

• show how your budget is realistic for the scale and complexity of the project

• make sure the funding you need from Innovate UK is within the limit set by this competition

• justify any significant costs in the project, such as subcontractors• show how much funding there will be from other sources• provide a realistic budget breakdown• describe and justify individual work packages

10: Adding Value: How does financial support from Innovate UK and its funding partners add value?

• will the Innovate UK investment increase the amount of Research and Development undertaken in the UK?

• have you explained and justified why you are not fully funding the project yourselves?

• have you explained how the project would be undertaken differently with Innovate UK investment?

• what are the implications of the Innovate UK funding? What does it mean to the project, idea and exploitation?

All applications are assessed by independent reviewers drawn from industry and academia

Application Assessment

What do they look for?• Clear and concise answers• The right amount of information

• not too much detail • no assumptions

• Quantification and justification • That the applicant has the right people with the right bright idea and

the means to exploit its potential

Submission Summary

Type of Competition Single Stage

Project Composition Collaborative

Project Size (indicative) Between £500k - £1.5m

Anticipated Project length 1 – 3 years

Application form 10 marked questions

Appendices Yes

J-eS output document (if applicable) Yes

Funding

Funding rules

- Types of organisation• Business• Research Organisations• Public Sector Organisations & Charities

- Collaborative projects• Definition of collaboration• Levels of participation• Minimum grant

Types of Organisation

• Business – Small/Micro, Medium or Large (EU definition)

• Research Organisation (RO):- Universities (HEIs)- Non profit distributing Research & Technology Organisation (RTO)- Public Sector Research Establishments (PSRE)- Research Council Institutes (RCI)- Catapults

• Public sector organisations and charities doing research activity

Grant dependent upon type of research and type of participant

Organisation /Type of Activity Industrial Research Notes

Business(economic activity)

Micro/Small – 70%Medium – 60%

Large – 50%

Research Organisation(non-economic activity)

Universities – 100% (80% of Full Economic Costs)

Other research organisations can claim 100% of their project costs – see note:

Other research organisations must:• be non-profit distributing and• disseminate the project results &• explain in the application form how this will be done

Public Sector Organisation or Charity(non-economic activity)

100% of eligible costs Must be:• Be performing research activity & • disseminate project results & explain in the application

form how this will be done• ensure that the eligible costs do not include work / costs

already funded from other public sector bodies

Levels of participation

• The aim of our State Aid scheme is to:- optimise the level of funding to business and- recognise the importance of research base to project

• At least 70% of total eligible project costs must be incurred by business

• The maximum level (30% of project costs) is shared by all research organisations in the project

What is collaboration?

In this competition projects must contain:

• at least two business collaborators

• a business-led consortium, which may involve both business and the research base and

• evidence of effective collaboration (see guidance)- we would expect to see the structure and rationale of the collaboration

described in the application.

Minimum Grant

If partner wishes to collaborate but does not wish to claim a grant:

• role and work should be in application as for all other partners

• partner name and total costs (contribution to the project) must be included in the finance summary table.

- Enter zero grant requested in finance summary table

• no partner finance form required

• not named in the offer letter if your project is successful

Worked example – £500k total cost project:Project costs for 5 partners (2 SME, 1 University, a Catapult and 1 large), doing industrial research.

Total Funding Limits

Total Eligible Project Costs

Maximum % of eligible costs which may be

claimed as a grantInnovate UK

GrantProject

ContributionBusiness Medium £130,000 60% £78,000 £52,000Business Medium £90,000 60% £54,000 £36,000Business Large £130,000 50% £65,000 £65,000

University HEI (80% FEC) £75,000 100% £75,000 nil**Catapult RTO £75,000 100% £75,000 nil

Total £500,000 £347,000 £153,000** 20% FEC not to be shown as a contribution

Research Base Costs £150,000

Research base % of Total Eligible costs (cannot exceed 30%) 30.00%

Project Costs

• Business & non-academic partners– Eligible Project Costs

• Academics– Je-S

Eligible Project Costs (applicants / non-academic partners)

Labour Costs Administration Support Costs Materials Capital Equipment Usage Sub-Contracts Travel & Subsistence Other Costs

- non-admin overheads that are directly incurred as a result of the project- Other eligible direct costs not included in the above headings

IP filing costs up to £7,500 (SME only)

Your Project Costs

Labour Costs

Eligible:-Staff working directly on project.-Paid by PAYE-NI, pension, non-discretionary costs.

Ineligible:-Dividends-Bonuses-Non productive time

Administration Support Costs

• Enter other eligible overheads into “Other Costs”

• All overheads must be verified as being incurred as a result of delivering the project

Ineligible overheads

Eligible overheads must be verified as being incurred as a result of delivering the project.

x Indirect production of or service delivery costs – any costs associated with the way in which the company makes its money. This would include all items used to calculate gross margin and cost of sale.

x Indirect staff costs - non productive time or non-chargeable time of technical or support personnel

x New IP protection costs (from other projects)x Any headings that are being charged for directly within the project –

such as training, T&S

Material Costs

Capital Equipment usage

Eligible:-Used in the project or shared with day-to-day production-Re sale value

Sub-Contract costs

Eligible:-Justified and quantified

Travel & Subsistence Costs

Eligible:Directly linked to the project

Other Costs

Costs that could not be added under previous headings.

Do not double count

Costs which are not eligible

Χ Recoverable input or output VAT Χ Interest charges, bad debts, profits, advertising, entertainmentΧ Hire purchase interest and associated service chargesΧ Profit earned by a subsidiary or by an associate undertaking work sub-

contracted out under the projectΧ Inflation and contingency allowancesΧ The value of existing assets such as IPR, data, software and other

exploitable assets that are contributed to the project by any collaboratorΧ Independent Accountant’s Report Fees

Project Costs

• Business & non-academic partners– Eligible Project Costs

• Academics– Je-S

Academic costs

Input the TSB reference and academic finance resources into the table

Academic costs

Upload the Je-s form as a .pdf document

Normal Je-S Application Elements

Not just the financials

- E.g. Justification of resources- E.g Pathways to impact

• Full details on the Je-S system

• Queries about Je-S via the Je-S Helpdesk- JeSHelp@rcuk.ac.uk - 01793 44 4164

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Finances Summary

Levels of participation

Submission Summary

Feasibility Studies

Type of Competition Single Stage

Project Composition Collaborative

Project Size (indicative) Between £500k - £1.5m

Anticipated Project length 1 – 3 years

Application form 10 marked questions

Appendices Yes

J-eS output document (if applicable) Yes

Key Dates

Time line Dates

Competition Opens 23rd May 2016

Briefing Event 7th June 2016

Registration Closes Noon 20th July 2016

Submission Deadline Noon 27th July 2016

Decision to applicants October 2016

Innovation Funding ServiceDemo

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Innovate UK Successful Applicant

The Project may not start until the organisation has received and returned signed acceptance of the Grant Confirmation Letter

Conditional offer letters will be

issued 3 – 4 weeks after notification

Return documents stated in

conditional offer letter

Submit financial forecast and

detailed project plan

Financial cost review and viability

checks

Issue Grant Confirmation

Letter

Sign & return Grant Confirmation

Letter with project start date

Existing process: successful projects

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New process with IFS: Project Setup

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Project set-up

Tips

• This is a beta version. Please be patient if not everything works first time!– Our Customer support desk are waiting to help you

• Your collaboration partners must enter their own project costs• There is no conditional offer letter for your grant. You are agreeing to

Innovate UK’s conditions of the grant when submitting your application. The lead partner signs the final Grant Offer Letter at the end of the project set up process.

• Don’t leave your submission to the last minute. The service performs validation checks on all of your inputs before you can submit.

• Let us know how you get on! We appreciate your feedback

Questions & Answers

Competitions Helpdesk

Tel: 0300 321 4357 (Monday-Friday, 9am-5:30pm)

E-mail: support@innovateuk.gov.uk