Cremorne Digital Hub presentation transcript

Speaker is Kathy Coultas –Director, ICT Tech, Department of Jobs, Precincts and Regions

Slide 1

[Vision: Melbourne skyline above sports precinct. Text: Flagship Digital Hub in Cremorne, Stakeholder Presentation, September 2021]

Welcome to the Flagship Digital Hub in Cremorne Stakeholder Presentation.

Slide 2

[Vision: Text. Background and approach.  Background and purpose, The Department of Jobs, Precincts and Regions (DJPR) is undertaking consultation regarding the establishment of a Flagship Digital Hub in Cremorne.

DJPR has selected Cremorne as it is emerging as one of Australia's leading technology precincts, due to its high concentration and growth of R&D activity, suggesting the location has a clear comparative advantage in innovating sectors of the economy.

The Cremorne Hub will drive a significant uplift in digital capability, workforce skills and innovation across Victorian industries.

Stakeholder engagement approach, The Government will seek proposals from the market for the establishment of a Flagship Digital Hub in Cremorne, and we aim to address the following objectives in this video presentation:

1. Provide high level background information and overview of the Hub concept and outcomes
2. ‘Essential’ and ‘Desirable’ Hub operating parameters
3. Next steps in the formal Expressions of Interest process

Snapshot of the process: EXPRESSIONS OF INTEREST (September – October 2021), SECOND STAGE OF THE PROCESS (December 2021 – February 2022)]

The Department of Jobs, Precincts and Regions (DJPR) is engaging stakeholders on the opportunity to establish a Flagship Digital Hub in Cremorne.

Cremorne has been selected due to its position as one of Australia’s emerging technology precincts, with a high concentration of tech companies and growth of R&D activity to create a clear competitive advantage.

The Flagship Digital Hub is intended to drive Cremorne's development into a vibrant, world-class centre for technology and innovation. It is envisaged that the Hub will deliver complementary initiatives aimed at lifting the scale and capability of Victoria’s technology workforce, stimulating tech adoption and problem-solving, supporting business growth, attracting investment and creating jobs.

The Hub will provide a gateway for Victoria’s industries, universities and students to connect and collaborate with leading technology sector businesses, experts and leaders at Cremorne. It will also build connections between Victoria’s leading technology firms and institutes with businesses, researchers and education providers across the state, nationally and globally.

The Hub will drive a significant uplift in digital capability, workforce skills and innovation across Victorian industries.

The Government is currently seeking proposals from the market to establish the Digital Hub in Cremorne, and this presentation aims to provide stakeholders with:

1. High-level background information, concept overview and a framework for outcomes assessment,
2. The proposed essential and desirable Hub operating parameters, and
3. The next steps involved in the formal Expressions of Interest (EOI) process.

Major project milestones include release of the EOI on 17 September and the due date for submissions on 31 October.

Slide 3

[Vision: The vision of the Hub is to deliver a range of outcomes and benefits for Victoria. Respondents are encouraged to develop innovative responses and demonstrate how they will be achieved through the proposed Hub model. Image explaining; Talent and Jobs, Highly skilled technology workforce and high value-add jobs. Technology diffusion, Greater adoption of technology and industry capability in advanced technologies such as AI and cyber security. Knowledge diffusion, Improved agglomeration benefits and the sharing of knowledge and services. Digital investment, Increased investment and attraction of international experts and foreign direct investment. Global brand value, Increased visibility will enhance Victoria’s international reputation as an advanced technology leader. Connectedness and transparency, Improved connectedness and transparency amongst Victoria’s digital sector.

Think about: How would the Hub go about achieving these outcomes?]

The overarching mission of the Hub is to accelerate and uplift Victoria’s digital capabilities, skills and inclusion across the state’s economy while positioning Cremorne as a globally significant innovation and technology precinct

The Digital Hub presents an opportunity to deliver a range of outcomes and benefits for Victoria, with a focus on:

• Talent and Jobs – building a highly skilled workforce and high value-added jobs,
• Technology and Knowledge diffusion – enhancing adoption of technology and growing industry capability in advanced technologies such as AI and cyber security,
• Digital Investment – attracting international experts and local and foreign direct investment,
• Global brand value – stimulating and enhancing visibility of Victoria’s international reputation as an advanced technology leader, and
• Connectedness and Transparency – improving linkages and leveraging synergies across Victoria’s digital sector and broader technology ecosystem.

DJPR encourages interested stakeholders to develop conceptual-level business models that set out an innovative program of initiatives and activities that can deliver on the Hub vision and outcomes.

A framework of outcome-focused operating parameters proposed for the Hub will be discussed in this presentation.

Slide 4

[Vision: Governments around the world are pursuing a variety of catalytic Hub models to improve the performance of high-potential clusters. MaRS Toronto (Canada), The largest urban innovation hub in the world, housing more than 200 science and technology organisations across various stages of the business and innovation lifecycle.  Digital Catapult (UK), The UK's leading advanced digital innovation centre, with a remit to drive early adoption of technologies, transform the industry, and support R&D collaborations to solve real-world challenges. High Tech Campus (NL), This campus is built around an ecosystem of 235 companies, offering five key areas of technology development including applied intelligence, and smart environments and connectivity, among others.

Key characteristics and enablers

• Focus on exploiting existing areas of strength and capability of local technology ecosystems where there are clear global market opportunities
• Core functions and activities designed to meet the specific needs of the ecosystem with clearly defined mission, objectives and performance measures
• Partnership between government, industry, education and research institutions such that traditional organisational boundaries are ‘porous’
• Centrally located physical presence through which services, collaborations and access to R&D infrastructure are provided
• Hubs that not only provide benefits within their location, but also across the broader ecosystem
• High-profile champions with strong networks across government and industry who are able to garner financial and in-kind support
• Mixed funding model with initial ‘seed’ capital typically provided by government before evolving to a more sustainable model over time

Think about: Successful characteristics of leading Hubs can inform the development of the proposal.]

The Digital Hub will follow in the footsteps of a variety of catalytic Hub models being pursued by Governments across the world. Examples include MaRS in Canada, being the world’s largest innovation hub, Digital Catapult in the UK, which is a leading advanced digital innovation centre, and the High Tech Campus in the Netherlands.

We suggest the core characteristics and enablers of these three examples will serve as key principles and learnings for the Cremorne Digital Hub during its implementation phase. Some notable characteristics can be identified as;

• understanding and utilising the local technology ecosystems to advantage,
• creating partnerships between government, industry, education and research institutions,
• the requirement for a centrally located physical presence and high profile Hub champions with strong networks, and
• a mixed funding model with initial ‘seed capital’ from Government.

Slide 5

[Vision: Hub proposals will be evaluated in relation to the following parameters. This matrix demonstrates the parameters that are ‘ESSENTIAL’ and ‘DESIRABLE’ aspects of the Hub. Respondents are encouraged to develop innovative conceptual business models that address the following parameters in the proposals for the Hub.

Activities:

• Precinct and sector networking (essential)
• Research-industry collaboration (essential)
• Advanced digital skills and capabilities development (essential)
• Talent attraction (essential)
• Promoting Cremorne and supporting its development as a key technology precinct (essential)
• IP / commercialisation focus (desirable)
• Digitalisation initiatives for key sectors (desirable)

Ecosystem presence:

• Providing a ‘front door’ for Victoria’s digital sector (essential)
• Mixture of physical and virtual presence; physical and virtual networking capability (essential)
• Connecting up the ecosystem and making technology espertise discoverable across the state (essential)
• Hub and bespoke’ network (desirable)
• Global connectivity (desirable)
• Open and interactive access (for a digital presence) (desirable)

Governance:

• Consortium operating through a suitable legal entity (essential)
• Clear mission, objectives and output/KPIs in the business plan (essential)
• Strong governance expertise and capability (essential)
• Robust risk management approach (essential)
• High standards of integrity and probity (essential)
• Governance that enables participation beyond the Consortium and Cremorne (essential)
• Framework for social inclusion (desirable)
• Framework for Cremorne stakeholder engagement (desirable)

Partners:

• Consortium partners have deep capability and high integrity (essential)
• Partners respect industry, higher education, research sector (essential)
• Partner roles and tasks clearly defined, agreed and reflected in the business model (essential)
• Cremorne stakeholders included in consortium (including NFPs) (desirable)
• Partners with advanced skills networks (desirable)

Funding:

• A funding agreement with deliverables, clear accountability and a financial sustainability model (essential)
• Co-funding from partners (financial and in-kind) (essential)
• Approach to realising benefits (desirable)

The Victorian Government welcomes partnership based responses to the EOI that reflect a range of industry, skills and research capabilities to establish the Hub.]

This slide presents a snapshot of what we consider will be the ‘essential’ and ‘desirable’ aspects of the Hub. This framework will be provided in the EOI to provide structure for Respondents to develop conceptual business models, and will be used as an evaluation tool for Government’s consideration of proposals. Key parameters that we suggest you consider in your responses include:

• Activities – such as precinct and sector networking, research-industry collaboration, advanced digital skills and capabilities development, and talent attraction.
• Ecosystem and Presence – such as providing a ‘front door’ for Victoria’s digital sector, a mixture of physical and virtual presence and networking capability, connecting up the ecosystem and making technology expertise discoverable across the state.
• Governance - Consortium operating through a suitable legal entity with a clear mission, objectives and output/KPIs in the business plan.
• Partners - Consortium partners having a deep capability and high integrity while representing a blend of industry, higher education and the research sector.
• Funding - A funding agreement with deliverables, clear accountability and a financial sustainability model, with co-funding from partners (both financial and in-kind).

The Victorian Government welcomes partnership based responses to the EOI that reflect a range of industry, skills and research capabilities to establish the Hub.

Slide 6

[Vision: The Victorian Government is offering support to establish the Hub.
1. Seed Funding via the Victorian Government’s budget contribution
2. Avenues to broader funding and program opportunities
3. Partnerships and global branding
4. Investment in telecommunications infrastructure
5. Place-making and local amenity improvements (from CPIP)]

The Victorian Government is offering support to establish the Hub, including:

• Seed Funding via the Victorian Government’s budget contribution of up to $10m
• Avenues to broader funding and program opportunities
• Partnerships and global branding
• Investment in telecommunications infrastructure, and;
• Place-making and local amenity improvements, through the Cremorne Place Implementation Plan.

Slide 7

[Vision: Key Milestones.

September 2021 – Stakeholder engagement: Information sessions held with stakeholders to discuss the opportunity of the establishment of the Hub September – October 2021 – Expressions of interest: Conduct EOI process. Evaluate submissions and respondents may be invited to participate in the next stage. Responses sought by the Victorian Government end October 2021
December 2021 – March 2022 – Invitation to supply. Invitation to Supply Evaluate, assess, and select supplier (January-February 2022). Grant negotiation and finalisation March 2022).]

This diagram depicts the critical path for DJPR and any responses to the EOI.

• In September 2021 DJPR is engaging stakeholders
• The call for Expressions of Interest will be released on 17 September, 2021
• The closing date for submission of EOIs will be 31 October 2021.
• DJPR’s consideration of submitted EOIs may inform the subsequent selection stage.
• Participation in the second stage may only be available to those who participate in the EOI stage. Though this is at the full discretion of DJPR, and DJPR reserves the right to hold an open or closed second stage process

Following release of the EOI, if you have any questions you will be able to seek clarification via the www.tenders.vic.gov.au website.

Slide 8

[Vision: Next steps.
1. EOI submission. The first stage provides interested parties the opportunity to submit their Expression of Interest in the Cremorne Digital Hub opportunity. We invite you to submit an EOI response that includes a high-level proposal that addresses the Hub parameters.
2. EOI assessment. EOIs will be evaluated. Respondents may be asked to develop a more detailed proposal for further assessment in stage two of the process. Further information regarding the Invitation of Supply process will be detailed following the EOI process.]

In terms of the immediate next steps, and in line with the timeline as discussed previously, the first stage of procurement will provide interested parties the opportunity to submit their Expressions of Interest in the Cremorne Digital Hub opportunity. We expect these responses to include a high-level proposal that addresses the Hub parameters.

Submitted EOIs will be evaluated to determine the next stage of the process:

• Respondents may be asked to develop a more detailed proposal as part of the second stage of the process
• Further information regarding an Invitation to Supply (ITS) process will be detailed once the EOI process is complete.

Slide 9

[Vision: Proposals will be evaluated against the criteria below.

Proposed solution (conceptual business model)

• Appropriateness and robustness of the conceptual business model, considering the interdependencies between governance, funding, operating and brand strategy in managing and coordinating the activities of the Hub.
• Alignment of the conceptual business model with the ‘Essential’ and 'Desirable' parameters, emphasising the extent to which the solution proposes novel innovation and maximises the digital network and influence on the broader economy.
• Evidence that the proposed solution will deliver the outcomes sought by Government with respect to:
  • Alignment with the overall Project vision and maximising industry and skills development objectives
  • Appropriateness and approach to outcomes and benefit realisation across Cremorne and the broader digital economy
  • Consideration of the Hub milestones in accordance with the Respondent’s proposed timeline
  • Proposed profile of strategic relationships, target markets and end users
  • Critical success factors and key dependencies, including engagement process with the State and key industry stakeholders
• Appropriateness of identified risks and mitigants, uncertainties and interdependencies, that could impact the State or successful implementation of the proposed solution.

Commercial and financial capacity

• Evidence that the proposed level and source of capital costs, ongoing operating costs and diverse nature of revenue streams used by the conceptual business model, will achieve financial sustainability, offer value-for-money outcomes and deliver on the State’s objectives.
• Robustness of the conceptual business model and/or partnering arrangements of the Respondent, if any. DJPR may seek to make introductions between what it believes to be suitably qualified vendors to work through a proposal. The commercial negotiations and contractual arrangements of such a proposal will remain between the Respondents and DJPR will not be involved in any of these activities.
• Evidence of the financial capacity and performance of the Respondent, or parent company or other relevant related entity/ies if the proposed contracting entity is or will be a special purpose joint venture or similar arrangement.
• Adequate credentials of Respondent’s management team with respect to financial/ commercial management, corporate governance, knowledge of the advanced technology sector, and skill and industry development expertise.

Capability and experience

• Evidence of Respondent experience in establishing similar business and/or operating models as envisaged by the State.
• Adequate Respondent experience in delivering high-quality services to facilitate sector networking, research-industry collaboration, advanced digital skills and capabilities development and talent attraction.
• Evidence of Respondent networks and relationships with relevant organisations, institutions and industry groups.
• Evidence of Respondent experience working collaboratively with Government (and Government agencies) and stakeholders.]

This slide provides a snapshot of how EOI proposals will be assessed. We have structured our assessment under three broad categories:

• The proposed solution;
• Commercial and financial capacity; and
• Capability and experience.

Slide 10

[Vision: Thank you. Website: djpr.vic.gov.au/cremornedigitalhub. DJPR Procurement Team Contact: josh.hines@djpr.vic.gov.au]

If you are interested in responding, the link to the Expressions of Interest will be published on 17 September through the DJPR website at www.djpr.vic.gov.au/cremornedigitalhub.

If you have any questions following the presentation please contact DJPR procurement via the email on the slide (josh.hines@djpr.vic.gov.au). Thank you very much for your interest in the Flagship Digital Hub in Cremorne opportunity.