PHM Technology

An SME perspective on innovation in the Defence environment

or

“How to achieve technical breakthroughs and

commercialise them through sheer bloody-mindedness”

Differentiation

The type of innovation you create is specific:

• Technical vs Economic• Breakthrough vs Incremental (both

transformative)• Commercial vs Academic

PHMT (as an SME) is focussed on innovation that is a Technical Breakthrough that can be successfully commercialised.

PHM Technology - Overview

PHM Technology (PHMT) was established in Melbourne in 2006 to develop and market the MADe software.

100% Australian and privately owned by the founders of the company.

Winner of AIIA IBM R&D Award 2009, SME Innovation Award at Pacific 2013

PHMT has been financially supported by:• US DoD (JSF, DARPA, NAVAIR SBIR) • ADF (NACC technology maturation grant, CTD program)• Victoria Government (TRIP)• CoA (R&D Tax Rebate)

Customers of PHMT include: BAE, Boeing, COMAC, DMS, Energia, KBR, RAN

The MADe softwareThe Maintenance Aware Design environment (MADe) is an engineering decision support toolset that captures engineering risk and integrates various technical analyses to mitigate related capability / economic impacts.

based on a simulation model, MADe has many technical innovations including: integration and automation of the analysis processes, standardisation of parameters, data visualisation, configuration management, ease of use.

The Innovation Drivers

Unreasonable People – personal interest from subject matter experts compelled / driven to find a better way

Necessity – technical, economic, regulatory, political or social

Sponsors – Defence, Industry, Government

Irrational Effort – effort that is not necessarily (ever?) supported by an objective Cost Benefit Analysis

The Innovation Process

Identify the requirement (recognise the opportunity / need)

Identify a better way of doing things (identify the solution)

Develop the solution (create the solution)

Verify the solution (demonstrate the benefits)

Commercialise the solution (convince the customer)

Keep innovating! (continuously improve the solution based on customer feedback / needs)

Product PositioningWhat the customer wants is often determined by their understanding of what can be done – breakthrough innovation is the introduction of things that could not previously be done.

Do Defence and their suppliers know they have a problem?

Who is it that specifically knows?

How do you find them?

How do you overcome the Defence industry cultural aversion to technical and commercial risk? Identify appropriate champions, use a consistent long-term engagement process, learn to behave / talk like an elephant…

TimingBreakthrough innovation means developing what the customer needs – before they know they need it.

Nature of the innovation determines the duration of the commercialisation – breakthroughs takes longer!

Adaptive messaging and persistence are fundamental pre-requisites to commercialisation.

Continuous hard work until you are ‘lucky’ (understood).

FundingThe business / commercialisation model determines the funding requirements – but it always starts with a significant personal investment in time (soft money)

Separate skill sets to innovation, these need to be developed (e.g. DIIC), accessed (e.g. ‘value- added partners’) or hired in

Learn to love spaghetti on toast and economy class travel…

Compare US model (SBIR program) to promote innovation using direct engagement model and portfolio approach to project success outcomes

Sustainable InnovationProblems• Variation / commonality in the

commercialisation process• Understanding Defence needs• Access to funding sources• Defence cultural aversion to risk

Solutions• Third party advisers, e.g. DIIC

(Enterprise Connect)• Direct engagement (e.g. DISC)• Government programs (R&D, • Anticipate their (non-innovation)

requirements (e.g. financial security, project management, etc.), leverage available programs (e.g. Global Access Programs at OEMs), Defence programs (e.g. CTD, RPDE)