Relationship between Force Design and Innovation

Benjamin Hayes – Assistant Secretary Defence Capability and Innovation

Strategic Drivers of the Defence Industry Policy

The 2016 Defence White Paper set out Australia’s strategic challenges and outlinesthe policy and capability response, supported by the Integrated Investment Programand Defence Industry Policy Statement.

• Manage portfolio of innovation investment that is coherentand aligned with strategic priorities for Defence capability

• Build capability and capacity of Australian defence industryand innovation sector

• What is different?

• Pathway to acquisition

• How do we do that?

• Force Design and Defence Capability AssessmentProgram drive investment priorities and focus

• Gaps and Opportunities analysis – focused on Defencemissions and linked to strategy

Defence Innovation Hub – Policy Objectives

Defence Industry & Innovation

Industry & Innovation Embedded in Force DesignProcess

• How do we know where to focus our investment in innovativeideas?

• The Force Design Process identifies capability gaps andopportunities for referral to the Defence Innovation System

• The Defence Innovation System is an important tool inidentifying innovative solutions to these gaps and opportunities

• Investment priorities identified by the Force Design Processare communicated to industry and research organisationsthrough the Defence Innovation Hub

• Approach to market: Call for Submissions, and SpecialNotices

Force Design Process and Defence Innovation

• The new Defence Innovation System is a key mechanism foraddressing some gaps and opportunities

• Treatment/response options include:

• Changes to the high-level innovation investment priorities

• Amendments to the narratives that support the DefenceInnovation Hub open solicitation

• Special Notice solicitation framed around a problem/challenge

• Adjustment to annual priorities for the Defence MaterialTechnology Centre as set by the Defence Innovation Hub

• Referral to a specific program element within the NextGeneration Technologies Fund

Force Design Process and Defence Innovation

Top three priorities for FY 2017-18:1. Intelligence, Surveillance, Reconnaissance, Electronic Warfare,

Space and Cyber2. Key Enablers3. Land Combat and Amphibious Warfare

• Tweaks to FY 2017-18 priorities as a result of the gaps andopportunities analysis:

• ISREW Space and Cyber – increased focus on ISREWenabling Joint Decision Support, Cyber and Joint CapabilityEdge

• Key Enablers – addition of Autonomous IdentificationTechnologies

• Land Combat and Amphibious Warfare – increased focus onSpecial Operations

Defence Innovation Investment PrioritiesInvestment priorities are aligned with the six capability streams.

Before Gaps and Opportunities Analysis – Proportion ofDefence funding spent on each capability stream

Figure: Current Commitment Forecast by Capability Stream – Active Projects, currentstate not meeting our strategic objectives

After Gaps and Opportunities Analysis – Proportion ofDefence funding spent on each capability stream

Figure: Pipeline Contract Value by Capability Stream as at 6 October 2017 – 35.5% ofsubmissions align with number 1 innovation priority area showing that market signallingis working

Special Notices• The Defence Innovation Hub commenced a Special Notice pilot

program in June 2017, seeking proposals for two specific challenges:• Next Generation Wireless Environment• Man-portable Small Unmanned Aerial System of the Future

• A Special Notice aims to:• Provide a vehicle to allow Defence business units to define a

problem to the market to be addressed under a tailored approachto market;

• Allow industry to provide innovative solutions to capabilitychallenges that would otherwise go unnoticed; and

• Leverage the innovative capacity of a wide spectrum ofAustralian business to solve the problem rather than onlyestablished Defence centric businesses.

1159registered

users

01 02 03 05

365innovationproposalssubmitted

108RFP

issued

Specialistadvisory

teamestablished

• Working hand in glove with Capability Managers• Very positive feedback from Defence and industry stakeholders

Defence Innovation Hub: Up and Runningsince 5 December 2016

As at 6 Oct 17

04

17 contractssigned, over

$20m ininvestment

Continuous Improvement• Initial Operating Capability – 5 December 2016

➢ Single innovation pipeline➢ Clear, transparent priorities for investment➢ Open solicitation, unique continuous assessment model➢ Bespoke, modular contracting suite➢ Innovation-friendly approach to Intellectual Property➢ New digital marketplace and ICT system➢ New governance arrangements● coherent investment● aligned to strategy● pathway to acquisition

Continuous Improvement• Final Operating Capability? No

➢ Continually add capability and sophistication to model(but not complexity)

➢ 10 year program• Things we are working on (or thinking about)…

➢ Special Notice capability➢ Collaboration model➢ Pitch / demo days➢ IT upgrades (huge potential)➢ Communities of interest➢ Co-investment

• Potential is enormous and exciting

Thank you