APPEA 2017 Miranda Taylor CEO

Why the industry needs to transform and why it’s so hard What we need to focus on now to prepare for tomorrow How to accelerate our results

Why the industry needs to transform and why it’s so hard

Australia has seen 25 years of sustained growth, strongly underpinned by the energy resources sector… But is now in transition …

Why the industry needs to transform Changing Energy Demand Changing Energy Supply Technology

Why is transformation hard Internal pipeline approach Typically structured with a few vendors Slow results, highly risk averse

Technology - disruptor or enabler Either way it is evolving rapidly e.g. full automation and AI Need to prepare now to leverage full benefits It can enable e.g. as horizontal drilling technology has done for us

What we need to focus on now to prepare for tomorrow

Leverage multiple disciplines Information Technology Artificial Intelligence Automation

Automation Full automation is the next evolution Leverages smart connected assets Enables integrated automation across the enterprise Finds the pinch points and smooths them out Advanced analytics enabling People, Assets & Processes to perform efficiently & reliably = optimisation Facilitates a new externally focused business model creating user value

Extending the Innovation Boundary External innovation - engage with multiple external knowledge experts, use technology to verify and de risk adoption of innovation Emerging innovation – work with vendors, extend external collaboration and create new value The safe zone – look internally, improve margins and keep cash coming in

Adapt Organisational Cultures Willingness to push innovation boundaries Leverage technology to enable industry to test, verify and de risk faster adoption of more innovation Use simulation/digital twins and living labs

Engage the Best Talent Operator of the Future ‘…no matter who you are, most of the smartest people don’t work for  you .” Bill Joy, founder of Sun Microsystems Critical Inhouse talent – strategic and systems thinking, decision making, ownership of risk, IT & engineering, commercial & business development External talent – non core, contingent, intermittent and access to a global network of knowledge excellence

How to accelerate our results

Investment in Multidisciplinary Teams Information Technology STEAM Engineering Arts - Creatives Data Analysts Entrepreneurs

Collaboration Those companies that focus solely on internal innovation will miss out on the opportunities that technology is opening up Pace of change is too fast and to complex to do it alone Technology is enabling ‘Networks’ and making it easier to access the best talent and capabilities, both internal and external

Collaboration Technology is rapidly changing Australia’s energy resources sector From a Pipeline Business Model To a Knowledge Harvesting model

Industry Growth Centres Industry led and independent Trusted brokers of innovation Drive productivity & competitiveness Transfer more of our investment in knowledge into commercial value developed here in Australia But connected to global markets

NERA is Creating a Knowledge Platform For energy resources stakeholders to: Manage costs and optimise productivity of current assets through ability to harvest external knowledge and rapidly adopt innovation and technology Maximise efficiency and environmental performance through fast adoption of range of clean and renewable technologies, and by reducing carbon emissions Build an agile, resilient, globally connected supply chain working across multiple industries

“How we’ll measure success” Maximise commercial success of innovative SMEs who can adapt and respond to national & international market needs Purpose Performance Measures “How we’ll measure success” Nos of Buyers & Sellers Interactions; Real $ value created PARTICIPATION IN THE INNOVATION SUPPLY CHAIN PLATFORM Grow Operator Participation Grow Innovation SME Participation Enable Alternate Engagement Models Identify issues to unlock maximum value Identify diverse solution & innovation providers Provide adaptive business models Strategic Objectives Unlock organisation to enable innovation Identify national & international market opportunities Provide access to expert knowledge Find best external talent Realise market value Provide access to diverse & innovative solutions Open Innovation Platform & Market Place – Digital, Technology, Services Key Enablers ‘‘What is critical to success” Enabling Operators Innovation Ready – Identification, Value, Adoption Roadmaps Marketplace Participation – OEMs, SMEs, Innovators, Start-Ups, Researchers SME Market Ready Program – Business Development, Scale, Value, Market, Export

Enabling effective collaboration Focus Areas Initiatives Knowledge clusters - industry, innovators, experts, start-ups, SMEs and larger contractors and applied research Cross disciplines and industries Digital enabler Innovation supply chain hub Digital platform for problem solving, innovation matching and harvesting knowledge Are You Research/Innovation Ready? Living labs Innovation Vouchers – SME R&D support SME Maximiser Program Annual Innovation Summit/Share Fair

The how – Knowledge Clusters Cluster Participants Innovators, entrepreneurs and SME's Infrastructure Business and finance Industry and regulations Research organisations Problems and concepts Prototyping Testing and deploying Marketing

Collaboration is all about healthy competition MYTH BUSTER Collaboration is all about healthy competition