2011 brisbane innovation scorecard

B R I S BAN E

SCO R ECAR D 201 1

Foreword from Graham Quirk, Lord Mayor, Brisbane City

Brisbane: Australia’s new world city

Foreword from John Aitken, Chief Executive Officer, Brisbane Marketing

Scorecard Collaborators

Scorecard Methodology

2010 Case Study Update

2011 Scorecard Key Findings

Case Study – V-Tol Aerospace

Case Study – Eidos Institute

Case Study – Rio Tinto

Case Study – Restaurant Two

Case Study – Electrical & Communications Association

Case Study – Aspect Property Group

Acknowledgements

About Brisbane Marketing

TABLE OF CONTENTS

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Measuring, nurturing and profiling innovation within Australia’s new world city

02 BRISBANE INNOVATION SCORECARD 2011 03BRISBANE INNOVATION SCORECARD 2011

An initiative of In collaboration with

The second annual Brisbane Innovation Scorecard is an important measure of Brisbane’s innovation footprint.

The second annual Brisbane Innovation Scorecard is an important measure of the city’s innovation footprint. It is a way of nurturing and highlighting our achievements and assisting in promoting Brisbane as a centre of world-class innovation and enterprise.

I am extremely impressed by all of the talented Brisbane companies highlighted in the Brisbane Innovation Scorecard many of which are leaders in their own field developing interesting and effective solutions to complex issues.

The Brisbane Innovation Scorecard is also a vital element of Brisbane City Council’s Economic Development Plan which was devised to ensure our city’s growth and prosperity.

Brisbane’s growing reputation for innovation in key knowledge sectors

continues to attract vital social and economic benefits to the city. From digital technologies to life sciences; aviation to mining technology; food and beverage to logistics and distribution; Brisbane is rapidly proving its worth both at home and internationally.

Our commercial ties to lucrative global markets, particularly in the Asia Pacific region, continue to flourish and are pivotal in helping Brisbane City Council and Brisbane Marketing build on our profile as Australia’s new world city.

Innovation is a process not a goal. However by combining our highly skilled workforce, leading educational institutions and well respected research communities, we will ensure that Brisbane remains at the forefront of innovation.

Graham Quirk, LORD MAYOR, BRISBANE CITY

FOREWORDWith a global outlook, exceptional

industry strengths and a new world

city edge, Brisbane is a city driven

by innovation on all fronts. From

the nation’s largest program of

public infrastructure projects, to

our universities’ highly respected

research and development centres,

to our internationally acclaimed

airport – Brisbane’s innovation is

always on show.

A vibrant centre of innovation and

enterprise, Brisbane is renowned for

its relaxed lifestyle and subtropical

climate. It’s no wonder innovators,

industry leaders and emerging talent

are drawn to Brisbane, driven by the

opportunity to excel.

On the principle of like attracts like,

Brisbane is attracting a highly skilled

workforce on the basis of being

an epicentre for innovation and

collaboration.

Readily acknowledged as the

economic engine room of

Queensland, Brisbane’s $104 billion

economy is driven by a strong

service industry sector and an

open, supportive, stable and cost-

competitive business environment.

Multinational companies continue

to invest in Brisbane, attracted

by strong consistent population

growth, a highly skilled and

creative workforce and competitive

costs. They are also lured by our

enterprising businesses in emerging

knowledge sectors including digital

technologies; life sciences; food and

beverage; innovative manufacturing;

logistics and distribution; aviation;

mining technology & services and

clean technologies.

The Brisbane Innovation Scorecard

reinforces Brisbane’s position as

Australia’s new world city – a city

of prosperity and opportunity,

delivering quality, culture and

lifestyle. It recognises how our

city’s businesses maintain their

competitive edge by improving the

goods and services they sell to the

world, through a firm commitment

to continuous innovation. This

celebration of innovation is the

keystone to Brisbane’s ongoing

success and economic prosperity.

BRISBANE: Australia’s New World City

Brisbane Marketing is delighted to

once again work closely with our

fellow collaborators Deloitte, UQ

Business School, Brisbane City Council,

Enterprise Connect and Queensland

Government to highlight the essential

role of innovation as a key driver of

sustainable growth, productivity and

economic prosperity for Brisbane.

As the city’s economic development

agency, Brisbane Marketing seeks to

foster a culture of innovation within

the Brisbane business community

and just as importantly an awareness

of the high level of innovation and

collaboration that Brisbane should

become known for. The Brisbane

Innovation Scorecard provides us

with a formal measurement tool

to capture and benchmark the

significant innovation occurring in

our city. It also provides proof of the

global competitiveness of Brisbane,

Australia’s new world city.


and Enable2011 forums are designed to

nurture and showcase the innovation

and creativity that is commercially

viable in the Brisbane economy and to

facilitate international recognition and

success for our achievements.

A key finding of the inaugural

Brisbane Innovation Scorecard was

the outstanding business environment

and open hearted collaboration that

our city offers. This was clearly shown

during Brisbane’s post flood recovery

and is a great selling point for Brisbane

nationally and internationally.

This year’s findings promote a

broader perspective across key

industry sectors, demonstrating

how the industry is creating and

commercialising innovation.

I would recommend the Brisbane

Innovation Scorecard to the

businesses of Brisbane, as we

together seek to build a strong,

vibrant and prosperous economy.

John Aitken, CHIEF EXECUTIVE OFFICER, BRISBANE MARKETING


Tim Biggs, OFFICE MANAGING PARTNER, DELOITTE BRISBANE

The beginning of 2011 saw Brisbane

on the world stage as a result of the

devastating floods, but 2011 will also

see Brisbane developing further as an

innovative and vibrant city. Now in its

second year, the Brisbane Innovation

Scorecard aims to provide a platform

for considered debate about policies

and practices to frame the future of

our rapidly developing city – a city

that has the opportunity to measure,

nurture and showcase innovation.

The University of Queensland Business

School has provided the research

expertise to uncover the Brisbane

innovation story and together with our

partners from Cambridge University,

we have developed an Australian-wide

dataset that shows the ‘where, how

and why’ for innovation and growth in

Australian enterprises.

Innovation is a keyword associated

with Brisbane, and the organisations

that make up our vibrant city are

distributed across a wide range of

sectors; from hi-tech to retail services.

Innovative organisations have a profile

of being ambitious for growth and

they also see innovation as a response

to a competitive environment.

Teamwork is key to innovation, and

many organisations now look outside

for new ideas and technologies.

Many innovators have long-term

partnerships with other organisations,

including business schools such as UQ

Business School.

With over half of the world’s

population now living in urban

areas, it increases the need for

industry, academia and government

to collaborate and influence the

direction of cities. As a new world city,

Brisbane has a unique opportunity for

collaboration and to work strategically

with innovation at all levels.


initiative is an excellent example of

an innovative partnership where all

involved have brought something

to the table. We are delighted to

have played a key role and to have

provided the research leadership to

this valuable project.

Iain Watson, ACADEMIC DEAN AND HEAD OF SCHOOL, UQ BUSINESS SCHOOL

The 2011 Brisbane Innovation

Scorecard shows that business

innovation is alive and well in Brisbane.

Results from the 2011 Brisbane

Innovation Scorecard show

widespread innovation throughout

our business community, and the

important role innovation plays in

supporting growth, productivity

improvement, economic resilience

and prosperity. I congratulate all

the partners on their contribution to

the 2011 Scorecard as it continues

to build on the good work

undertaken to develop last year’s

inaugural Scorecard.

The 2011 Scorecard shows that

Brisbane businesses maintain a

strong commitment to innovation

across a range of business activities.

Around 65 per cent of the Brisbane

firms surveyed had introduced

some form of significant innovation

in the past three years, with many

of those businesses undertaking

multiple innovations. Of particular

note is that 37 per cent of small

businesses introduced at least one

significant innovation that was entirely

new to their industry. This level of

innovation compares favourably with

the international experience and

shows that Brisbane businesses are

performing well, particularly in the

development and/or adoption of new

processes, services and products.

One of the other important aspects

from the Scorecard is the strong

reliance on employees, the supply

chain and customers for identifying

and implementing appropriate

business improvements and

innovations. This has significant

implications for DEEDI.

The Department facilitates and

encourages Queensland firms

to embed innovation within their

business so as to improve their

productivity levels and competitive

position. As such, we are keen to help

firms better identify and implement

new and worthwhile changes and to

create value from good ideas.

The Department maintains its

strong commitment to building

on the Queensland Government’s

considerable investments supporting

science, research and development

and business innovation. DEEDI will

continue to set the right conditions

for business success and to support

business and industry in the

innovation imperative.

Ian Fletcher, DIRECTOR-GENERAL, DEPARTMENT OF EMPLOYMENT, ECONOMIC

DEVELOPMENT AND INNOVATION (DEEDI)

COLLABORATOR PROFILES


The first Brisbane Innovation Scorecard

in 2010 put a line in the sand,

establishing a measure of how Brisbane

businesses leverage innovation. This

second iteration of that benchmark

reached a new level of rigour this year

using a comprehensive instrument

built from a collaboration between

the University of Queensland and

Cambridge University. The results show

that the majority of Brisbane firms –

this year across all industry sectors

and sizes – are actively innovating,

with 65 per cent applying at least one

innovation to their business in the past

three years.

It is also very pleasing to see that

collaborations, like the one that underpins

the scorecard itself, play a key role in

innovation development for Brisbane

organisations. Over the past three years, 43

per cent of Brisbane businesses engaged

in formal or informal collaborations or

partnership arrangements.

The research done by our people at

Deloitte both globally and domestically

points to the power of collaboration

to achieve a sustainable future. For

Deloitte that future is about being able

to consistently innovate in order to

anticipate these new knowledge flows,

to identify emerging opportunities that

should be on the business agenda,

and to help our clients make

meaningful choices about what they

have to do differently.

The core value proposition for Deloitte

is to gain competitive advantage by

building ever larger numbers of trust-

based relationships and connecting

people more richly and broadly. In

this way we hope to redefine the way

professional services are delivered.

For us innovation is the oxygen that

will ignite this vision. It is helping us

embrace new initiatives like design

thinking to build the ‘stickiness’ and

capacity of our people. It is growing

our ability to create new products

and services to meet the challenges

of the dynamic, shifting market place.

And innovation – in particular open

innovation – is assisting us to become

a better learning organisation and to

expand our capacity to think differently.

Innovation is a game changer. It has

changed our capacity to act. We

are delighted with our continued

association with the Brisbane

Innovation Scorecard that celebrates

innovation, teaches us how we can

use it to be more successful, and

showcases those businesses that are

doing innovation well.

Innovation is the key to business success...

Brisbane is a dynamic and growing

city of small innovative businesses. As

recently observed by Edward Glaeser,

Harvard Professor of Economics,

innovation is a key driver of prosperity

in today’s global cities:

‘’Cities enable collaboration, especially

the joint production of knowledge that

is mankind’s most important creation.

Ideas flow readily from person to

person in the dense corridors of

Bangalore or London, and people are

willing to put up with high urban prices

just to be around talented people,

some of whose knowledge will rub off.’’

(Edward Glaeser, The Triumph of the

City, 2010).

Cities are places where knowledge

and creativity come together and

drive prosperity. Hence, the Brisbane

Innovation Scorecard is focused on

Brisbane’s innovation capability.

Building on the success of the

inaugural Brisbane Innovation

Scorecard in 2010, Brisbane Marketing

in collaboration with Deloitte, The

University of Queensland Business

School, Brisbane City Council and the

Department of Employment, Economic

Development and Innovation (DEEDI)

has conducted this successful

innovation benchmarking initiative

for the second consecutive year. The

Brisbane Innovation Scorecard aims at

measuring innovation within Brisbane’s

businesses and its effect on their

growth, productivity and the region’s

economic prosperity over time.

In 2011, the measurement of

innovation in Brisbane was drawn

from a nationwide business innovation

survey conducted by the University

of Queensland Business School

in partnership with Cambridge

University and the Queensland

Government. Believed to be the most

comprehensive longitudinal study of

innovation in Australia at a city level,

the Innovation Scorecard uses a survey

developed at the Judge Business

School at Cambridge University and

currently being implemented in an

international innovation survey in the

UK, Australia and New Zealand. The

survey instrument provides an in-depth

insight into a firm’s view of innovation,

from organisational and marketing

innovations to product, process and

service innovations.

For this year’s Innovation Scorecard,

results from 372 firms in Brisbane

drawn from the national study

were used to measure innovation in

Brisbane businesses. The sample of

businesses participating in the study

is representative of the Brisbane

economy in terms of size and industry,

with 92% of businesses employing

fewer than 20 employees.

The definition of innovation used in this

survey is the internationally recognised

definition applied by the Organisation

for Economic Cooperation and

Development (OECD): ‘a new idea that

creates value’. This is a broad definition

including the concept of ‘new to the

world’ innovation as well as innovation

which is ‘new to the business’ or ‘catch-

up’ innovation.

The innovation activity surveyed for

the Brisbane Innovation Scorecard 2011

included:

• Type of innovation activity

undertaken by each business over

the past three years

• Size of the business (turnover)

• Export profile of each business (state

and overseas)

• Sources of ideas for innovation

• Growth prospects.

To illustrate leadership in innovation

among Brisbane businesses, the survey

results have been complemented

by six case studies across various

industries. These case studies provide

additional insights into how Brisbane

businesses undertake innovation. The

Scorecard report also includes a 2010

case study update which tracks the

innovation footsteps of the companies

which were profiled in the 2010

Brisbane Innovation Scorecard.

SCORECARD METHODOLOGYCOLLABORATOR PROFILES

For Australian firms, innovation should

be business as usual.

In a competitive world, there is

no security in the status quo. The

opportunities we miss today will be

seized by others tomorrow. We will

prosper, or perish, on our potential

to adapt.

The Australian Government is

determined to work with Australian

firms to together build the innovative

high-tech, high-wage, sustainable jobs

we seek for our people.

Small and medium firms are the heart

of Australia’s economy; and they are

rightly the heart of our innovation

agenda. Our strategy focuses on

remaking their strengths for changing

times, from new products, to new

services, to better systems.

This is not a challenge we face alone.

Our success will always rest on the

capacity of Australia’s regions to

provide environments that attract and

reward innovative firms.

That is why we have established, within

Enterprise Connect, the Innovative

Regions Centre to accelerate

connections with and between SMEs,

and to facilitate the strengthening

of their innovation-enabling abilities.

We need to take every opportunity

to demonstrate to the public and the

business community that Australia

values its innovators.

This Scorecard is a fine example of that

work. Through the Innovative Regions

Centre, the Australian Government has

partnered with Brisbane Marketing,

the Queensland Government, the

University of Queensland and Deloitte,

to profile the great energy and talent in

our innovative firms.

They are a testament to the power of

Australian ideas.

The Hon Kim Carr, MINISTER FOR INNOVATION, INDUSTRY, SCIENCE AND RESEARCH


Brisbane is a dynamic and growing city of small innovative businesses.

National innovation awards, multimillion dollar contracts, new product launches, and international expansion – the success stories continue for the innovative Brisbane companies profiled in the 2010 Innovation Scorecard.

From large, global consultancies through to family-run businesses, ten Brisbane firms were profiled in the 2010 Innovation Scorecard because of their on-going commitment to innovation. Insights into the innovative strategies employed by Brisbane businesses confirmed a strong correlation between innovation and business performance.

This brief update on seven of the ten businesses profiled in last years scorecard shows that one year on, these firms are continuing to innovate, to expand their operations, access new business opportunities and develop an international customer base. It provides an exciting insight into the business activities and commitment to innovation by some of the city’s leading innovators.

INNOVATION AND BUSINESS SUCCESS

Brisbane-headquartered companies, Aluminium Boats Australia Pty Ltd (ABA) and Centor Architectural, have made innovation central to their companies’ ongoing success and long term growth.

In April 2011, ABA won a $41 million contract with mining company Santos to construct ferries to transport LNG between Gladstone and Curtis Island. The company was also nominated as a

finalist in the 2011 Endeavour Exporter of the Year Award for its venture into the Asian market.

ABA General Manager Stuart Pascoe said that developing an efficient and environmentally friendly vessel design had dramatically changed his business. He said: “In the past year we’ve taken over the largest ship building site in South East Queensland, won a huge contract, and been nominated for a national export award. We’re committed to the ongoing development of innovative vessels. The only way to stay in game is to stay ahead of everyone else.”

For Centor – the company that invented the modern weather-sealed bifold door system – 2010 was a year for awards. Centor won a Premier of Queensland’s Export Award; two Brisbane Lord Mayor’s Business Awards; and Centor Managing Director Nigel Spork was named Ernst & Young’s 2010 northern region Entrepreneur of the Year. Centor also won awards for the two products it released in 2010: the S1E Eco-Screen (which has been a ‘runaway success’), and the LT Twinpoint locking system. The product successes are propelling international growth, with the company opening a second office in the United States and a new office in France this year.

Mr Spork said: “I feel Centor’s investment in research and development and our product innovations really improve people’s lifestyles. Our commitment to innovation also drives our growth, and it

is really pleasing that our success has so many flow-through benefits for my hometown.”

NEW PRODUCT LAUNCHES: PRODUCT

INNOVATION

Whether recognising a niche market opportunity or tailoring product solutions to consumer needs, four of Brisbane’s innovative firms are committed to bringing new products to the market.

Kaon Electric finalised the commercialisation of its innovative new product, FuseSaver, in late 2010. An electrical circuit breaker, FuseSaver helps prevent overhead power line fuses from blowing. Kaon is now manufacturing the product for distribution to electrical utilities in Australia, New Zealand and Ireland, with orders anticipated from South Africa and North America. In addition, the company was awarded a $250,000 Queensland Government Business and Industry Transformation Incentives grant in 2010 to develop and commercialise a new prototype electrical device.

Kaon Electric Managing Director, Brett Watson said: “Innovation is the essence of what we do. It’s critical to moving the company forward. We’ve no desire to create the same two products. It’s in our nature to create and innovate.”

Inspired by the challenges faced on a recent client project, Australian-based global technical professional services

company GHD designed a new pump unit to solve a broad range of issues encountered throughout pressure sewer networks globally. GHD is in talks with parties from around the world who are interested in licensing the technology.

Product innovation is essential to electronic equipment manufacturers, RF Technologies Aust Pty Ltd (RFTechnologies). The company is developing a product pipeline centred on its patented Software Defined Radio technology. Adaptations of this technology have enabled the company to secure ongoing projects with Boeing and others in the past year.

RFTechnologies Chief Executive Officer, Max Rose said: “Innovation is absolutely vital to our business. The technology in our field moves so fast that if you don’t innovate you end up behind the eight ball. My plea is to local industry and governments to use innovations developed in Australia. We’re here, we can do it, and we are smart.”

Eastall Precision Engineering Pty Ltd is anticipating high demand for its latest innovative product. In February 2011, Eastall launched the EEP Quad Hook to solve the occupational health and safety problems associated with moving vertical bore coils.

PRODUCTION AND PRODUCT PROCESS INNOVATIONS

Major and incremental operational innovations to product production have had a considerable impact on

2010 CASE STUDY UPDATE

security door and window screen manufacturer, Prowler Proof. The company invests heavily in technology and quality practices, and in the past year has made significant improvements to its production systems. Prowler Proof also recently completed the three year conversion of a prototype facility, including a semi-automatic Powdercoating line, into a commercial production facility. A product process innovation in 2011 that integrates systems between Prowler Proof and a supplier enables the company’s customers to track deliveries and provides customers with up-to-date information including instant notification of delivered items.

Prowler Proof Sales Manager, Shane Hawkins said: “Innovation is continuous improvement. Even small incremental changes to products and production can make a significant difference for our business. This year, for instance, we’ve just taken our first export orders for the United States and we expect this market to open up further following our recent successful certification of our products to the US Hurricane Standard.”

SERVICE INNOVATION

Technical professional services company GHD is leading a new global innovation program for the infrastructure industry, with beta phase launch in October 2011. The Innovation Interchange is designed to connect organisations with technology challenges to organisations with innovative solutions, through face-to-face engagement and an interactive

web portal: www.innovationinterchange.com.

GHD Group Manager Innovation, Jeremy Stone said that through the Innovation Interchange, GHD continues to provide leadership in encouraging the infrastructure industry to embrace innovation. He said: “Given the declining availability of skilled resources to deliver the massive backlog in designing and building infrastructure assets, innovation is critical, as we need to do more with less.”

PROCESS (OR SYSTEMS) INNOVATION

Centor is embedding innovation and design into every aspect of its operations in 2011. The company has appointed a full-time Design Director to oversee the project, which is being conducted through the Queensland Government-sponsored Ulysses Design program. Centor Managing Director Nigel Spork said he was expecting to see disruptive change to the whole company. “We’re taking innovation outside the product spectrum and applying it to our whole of company strategy. It will be a painful but exciting time for the company,” he said.

The on-going success of these businesses demonstrates that innovation is a process and not a goal. By integrating innovation into the culture of the business and by continuing to embrace innovation as a journey, these seven Brisbane firms have remained ahead of their competitors, continuing to grow and expand.

National innovation awards, multimillion dollar contracts, new product launches, and international expansion – the success stories continue for the innovative Brisbane companies profiled in the 2010 Innovation Scorecard


KEY FINDINGS 2011

Innovation plays a key role in driving

Brisbane’s $104 billion economy.

Brisbane’s businesses identify, develop

and implement a broad range of

innovations to capture international

market share, to propel their expansion,

grow sales, and increase revenue.

This second edition of the Innovation

Scorecard measures innovation activity

reported by Brisbane businesses

between January 2008 and January

2011. As the first city-based innovation

survey of its kind in Australia, the

Scorecard is a synthesis of robust

survey results taken from 372

businesses in the Greater Brisbane area.1

Brisbane emerges from this survey

as a world-class enabler of business

innovation, with an innovation footprint

which is comparable nationally2. The

majority of Brisbane firms – across all

industry sectors and sizes – are actively

innovating, with 65 per cent applying

at least one innovation in the past

three years3.

Collaborations in particular play a

key role in innovation development

for Brisbane organisations. About

43 per cent of Brisbane businesses

reported engaging in formal or

informal collaboration (or partnership

arrangements) in the past three years.

This level of collaboration was high

compared to the 22 per cent reported

across all surveyed firms in the 2008-

09 ABS national survey4.

Innovation creates a platform for

Brisbane businesses to compete

globally. Implementing new or

improved products or services and

innovating across process operations

has enabled Brisbane-based firms to

improve their competitive positioning

both in the domestic and international

markets. Brisbane firms also turn to

innovation to underpin expansion.

The Scorecard findings also

demonstrate that adopting an ‘open

innovation’ approach is fostering

innovation in Brisbane. Firms are

leveraging internal creativity as well as

external sources, including the internet.

They are forming collaborations with

industry partners and research groups

and in doing so, fuelling innovative new

business developments.

HOW INNOVATION WAS MEASURED

The Scorecard measures innovation

in six distinct categories, from the

development of a new service or

product through to changes to

an organisation’s marketing and

organisational methods. These are

categorised below:

1. Organisational (or systems)

innovation – new organisational/

managerial processes or marketing

methods, including maintenance

systems or operations for purchasing

2. Service process innovation – new

methods to produce and deliver

service products

3. Service innovation – changes to the

services which are sold to customers

4. Logistics or distribution innovation

– changes to supply chains and

distribution systems

5. Product or goods innovation –

new products which are sold to

customers

6. Product process innovation – new

methods of manufacturing or

production of goods.

NOVEL AND NON-NOVEL INNOVATION

The survey results also made it

possible to separate innovating

businesses into two distinct categories:

1. Novel innovators – those undertaking

innovations which were new to the

business and new to the market

2. Non-novel innovators – those

undertaking innovations that were

new to the business but were

not new to the market, i.e. these

innovations were transposed from

competitors or from other industries. BRISBANE FIRMS IMPLEMENTING

1 The greater Brisbane area is defined by the Australian Bureau of Statistics as the Statistical Division of Brisbane.2 Australian Bureau of Statistics “2008-09 Business Characteristics Survey”3 Results from the 2010 Survey cannot be compared with the 2011 Survey as the 2010 Survey only surveyed manufacturing, infrastructure and utilities businesses. The 2011 results are more broadly representative of the entire economy, including for example, a large number of businesses in sectors such as retailing and hospitality where innovation opportunities are more limited. 4 Australian Bureau of Statistics “2008-09 Business Characteristics Survey”

INNOVATION PROCESSES, SERVICES

AND PRODUCTS

Brisbane firms reported a diversity

of innovative developments across

every business area. For the sample of

372 businesses, a total of 704 distinct

innovation activities were reported.

As can be seen from Graph 1, the

innovations are largely concentrated

in four areas with organisational or

systems innovations accounting for

the greatest number of innovations

reported when both non-novel and

novel innovations are combined. Of

all the firms sampled, 42 per cent

reported innovations in this category.

Innovations in services and service

process – new methods to produce

and deliver services to customers –

were the second most frequent type of

innovation reported. New innovations

in products closely followed.

These results reflect the widespread

opportunities presented by new

information technology applications

through which businesses are able

to increase efficiencies and reduce

costs. They may also reflect the

intensification of cost and competitive

pressures experienced by businesses

in a challenging economic environment

since the global financial crisis.

Businesses are able to gain competitive

advantage through developing new

processes to secure efficiencies:

efficiencies in better managerial

processes or marketing systems,

or more efficient procurement or

maintenance processes.

From the research and case studies

it is clear that Brisbane businesses

are embracing innovation to gain a

competitive advantage in local and

global marketplaces, with the ultimate

aim to translate their innovations into

long term competitiveness, greater

market share and increased revenue.

The lowest number of innovations

reported was in logistics or distribution

innovation. Further research is required

to understand why companies

reported fewer innovations in this area.

INNOVATION FOOTPRINT: INDUSTRY

SECTOR AND SIZE

Brisbane’s vibrant commercial

environment is fostering innovation

across a diversity of industries and

GRAPH 1: TYPES OF INNOVATION REPORTED

2011 SCORECARD HIGHLIGHTS

• 65% of Brisbane businesses

innovate

• Increased international sales and

revenue growth associated with

innovation

• High proportion of sales from

new or improved products or

services

• Collaboration and ‘open

innovation’ (i.e. using external

sources to identify and progress

innovations) increases innovation

activity

• Innovation associated with

competition and expansion

Brisbane businesses are boosting domestic and international growth through innovation across all industry sectors, with 65 per cent implementing at least one innovation in the past three years.

32

34

59

74

69

102

31

45

71

63

68

56

0 20 40 60 80 100 120 140 160 180

Logistics or distribution innovation

Product process innovation

Product or goods innovation

Service process innovation

Service innovation

Organisational innovation

Number of Innovations

Non-novel innovators Novel innovators


businesses. As can be seen from

graph 2, the 2011 Scorecard randomly

sampled5 businesses, of all sizes and

ages, in every industry sector, including

agriculture, mining, manufacturing,

construction, wholesale and retail

trade, and accommodation and food

services, utilities, transport, and

financial and insurance services.

The highest proportion of

innovators in total was recorded in

manufacturing and in a combined

category of information media &

telecommunications, professional,

scientific and technical services sectors.

In these three sectors6, over 70 per cent

of businesses reported innovations.

Novel innovators, that is, businesses

reporting ‘new to the market’

innovations, exceeded those reporting

innovations that were only new to the

firm, across all industries. The highest

share of innovations considered ‘novel’

(i.e. new to the market) were reported

in construction and manufacturing,

with over 40% of respondents in each

sector reporting ‘new to the market’

innovation activity (see Graph 3).

Firms employing more than 20

employees reported overall higher

levels of innovation activity (see Graph

4). Firms of all sizes reported a larger

share of novel innovation, indicating

that the capacity to undertake ‘new to

the world’ innovation is not a function

of firm size. Approximately 92 per cent

of the surveyed firms employed 20 or

fewer employees with approximately

37% of these firms reporting novel

or ‘new to the market’ innovation

activity. For larger firms, innovation

was correlated with increases in

international sales, collaborations, and

performance satisfaction among their

management teams.

BENEFITS OF INNOVATION

• Increased revenue growth and

exports

• Access to new markets

• Competitive advantage

• Productivity and efficiency gains

• Sustainability

Stronger revenue growth was reported

as a key benefit of innovation for

Brisbane businesses. Firms appear

to be actively leveraging innovation

to gain a competitive advantage—

offering a better product or service, or

greater efficiency and capacity.

New or improved services or

products were reported to contribute

significantly to sales revenue.

Brisbane’s innovative businesses

reported overall that 39 per cent of

their sales were derived from their

new and improved offerings to their

customers (see graph 5).

Firms introducing a novel or ‘new to

market’ innovation receive a larger

percentage of their total sales from

new or improved products and

services than firms introducing an

innovation that was only new to them.

The research demonstrates that

innovation is correlated with increased

international sales. More than 25

per cent of businesses sampled for

the Scorecard reported sales of

manufacturing products or services

in international markets including

Asia, North America and Europe. For

those companies that introduced an

innovation in the past three years,

there was a positive correlation with

international sales. This result confirms

the findings of research commissioned

by Brisbane City Council in 2009 on

Brisbane businesses, which indicated a

virtuous circle whereby exporting firms

were more likely to be engaged in

significant innovation activity and were

in turn more likely to be able to gain

more export sales.

SOURCES AND DRIVERS OF

INNOVATION

Brisbane has a distinct ‘open

innovation’ approach to informing and

developing innovation. This business

culture both facilitates innovation

and leads to an increased breadth of

innovation. Indeed, the greater the

variety of sources for innovation, the

more types of innovation a firm is likely

to implement. And according to the

finding in 2010, the more innovations a

firm implements the more successful

they are likely to be.

The majority of the city’s businesses

source innovation internally, through

employees. Firms rely on their

employees’ creativity to drive the

game changing, ‘new to the market’

innovations. However, external sources

of innovation from clients, suppliers

and competitors, as well as

5 The 2011 sample group was significantly expanded from 2010, which was a restricted pilot survey. While in 2010, 90 per cent of firms were found to be actively innovating, the results between the pilot survey and the 2011 are not comparable due to the differences in industry sectors and the sampling sizes. 6 Industries represented by fewer than 20 firms (agriculture, mining, heath care and education) were not included in this comparison

GRAPH 2: INDUSTRY SECTORS SAMPLED FOR 2011 SCORECARD GRAPH 3: INNOVATION ACTIVITY BY INDUSTRY SECTOR GRAPH 4: INNOVATION FOOTPRINT BY FIRM SIZE GRAPH 5: SOURCES OF SALES REVENUE FOR INNOVATIVE BUSINESSES (%)

Note: 18 businesses did not report their industries

Note: proportions are based on the entire sample of businesses surveyed, including those that did not report any innovation activities Note: proportions are based on the entire sample of businesses surveyed, including those that did not report any innovation activities

KEY FINDINGS 2011

9

11

18

24

33

37

37

42

66

77

0 20 40 60 80 100

Health care and education

Agriculture and mining

Hospitality

Rental, hiring, real estate and administrative services

Finance and insurance services

Manufacturing

Tranport, warehousing and wholesale

Construction and utilities

Professional and technical services, information media and telecommunications

Retail and personal services

Count of businesses

11%

25%

29%

21%

21%

27%

32%

38%

39%

33%

30%

39%

43%

38%

41%

38%.

0% 10% 20% 30% 40% 50% 60% 70% 80%

Hospitality

Rental, hiring, real estate services, administrative and support services

Retail and personal services

Finance and insurance services

Construction and utilities

Tranport, warehousing and wholesale

Manufacturing

Professional, scientific and technical services and information media and telecommunications

Percentage of firms

Non-novel innovator Novel innovator

27.9% 32.3%

36.7%

41.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

<20 20+

Dis

trib

uti

on

of

Fir

ms

Number of employees

Novel innovator

Non-novel innovator

Unchanged products

Improved products

New products

21

18

63


innovations gleaned at fairs and expos,

are a significant source of innovation.

Brisbane firms also utilise the internet to

access the global marketplace for ideas.

Collaborations in particular play a

key role in innovation development

for Brisbane organisations. About

43 per cent of Brisbane businesses

reported engaging in formal or

informal collaboration (or partnership

arrangements) in the past three years.

This level of collaboration was high

compared to the 22 per cent reported

across all surveyed firms in the 2008-

09 ABS survey7.

Collaborations with suppliers,

customers, research institutions,

government agencies and competitors

were more likely to lead to innovation

than for those firms that did not

collaborate. Collaboration also

stimulated internal innovation.

The nature and focus of collaborations

was quite different between new

and established firms. Newer firms

with a global focus tended to seek

collaborations to develop innovations.

Established firms, on the other

hand, were more likely to undertake

formal research and development

projects with a focus on the domestic

market. It is important to note that in

Brisbane, the research shows, firms

with innovative employees are more

successful at driving collaborations

with external partners.

Innovation is correlated with a highly

competitive business environment.

Brisbane’s growing and highly

competitive business environment

plays a critical role in stimulating

innovation.

Innovation also underpins business

expansion in Brisbane. Of those firms

implementing new innovations, 86

per cent intend to grow their business

7 Australian Bureau of Statistics “2008-09 Business Characteristics Survey”8 European Union’s (EU) ‘Community Innovation Survey’ (the international benchmark for innovation surveys at the business level used by EU members since 1991) as well as the Oslo Manual

GRAPH 6: VERY SIGNIFICANT OR CRUCIAL SOURCES OF INNOVATION (%) GRAPH 7: GROWTH AMBITIONS OF INNOVATIVE FIRMS

KEY FINDINGS

either moderately or substantially

(see graph 7). To do this these firms

embrace ‘new to market’ innovations.

As reported in 2010, businesses cited

access to finance as the main barrier to

innovation. In 2011, a shortage in skilled

employees also emerged as a barrier.

HABITS OF HIGHLY SUCCESSFUL

INNOVATORS

Global innovation research indicates

that successful innovators actively

nurture innovation in their business8.

Many instinctively or systematically

apply key innovative practices to

their operations. The 2010 and 2011

Innovation Scorecard surveys provided

a valuable insight into these practices.

These were amplified by a series of

follow-up interviews with businesses

which resulted in a number of case

studies presented in this report.

The combined results of the Innovation

Scorecard survey, innovation examples

provided by businesses and follow-up

in-depth interviews, revealed eight

ways in which businesses nurture

innovation to deliver success:

1. Provide shared spaces and

innovative cultures that support

experimentation.

2. Use networked business models

to foster interactivity between

customers, suppliers and the

business.

3. Link geographies – international,

national and local – and exploit

fully the value offered by Brisbane’s

location in relation to costs, markets,

raw material, deep port and other

local advantages.

4. Draw on a wide range of skilled and

innovative people and encourage

them to generate ideas and apply or

develop new skills and talent.

5. Commit to creating value with

customers and entities in the

business value chain.

6. Scale-up a product, process or

service to ensure sustainable value

creation and return on investment.

7. Use online and other innovative

delivery channels.

8. Leverage innovative technologies to

continuously improve productivity

and value.

The 2011 Brisbane Innovation

Scorecard together with the findings of

the Innovation Scorecard in 2010 reveal

that Brisbane businesses are adopting

elements for successful innovation

consistent with internationally

accepted best practice on the way

businesses nurture innovation for long

term success.

Brisbane businesses are adopting elements for successful innovation consistent with internationally accepted best practice on the way businesses nurture innovation for long term success.

0% 1 0% 2 0% 3 0% 40% 5 0% 60% 70%

Within the firm

Within the group

Suppliers

Clients

Competitors

Consultants

Financiers

Universities

Governments

Patents

Conferences

Fairs/expos

Associations

Networks

0 50 100 150 200

Become smaller

Stay same size

Grow moderately

Grow substantially

Non-Novel Innovator

Novel Innovator

Number of firms


CASE STUDY: V-TOL AEROSPACE

PRODUCT INNOVATION:

A NEW PRODUCT

In 2009, V-TOL developed prototypes for its Warrigal family of tactical mini-unmanned aircraft systems. The products were designed from the ground up by V-TOL to address the future requirements of National Airspace Agency (NAA) regulations, and the need for uninhibited unmanned aircraft flight operations. V-TOL has commenced projects based on the Warrigal prototypes with clients in the energy, agricultural, emergency services and law enforcement sectors.

Mr Xavier explained: “V-TOL did a scoping review of global mini-UA in its first year of operations. We then purchased foreign products to test and gauge commercial interest in Australia and New Zealand. By the end of our third year, we came to the conclusion that we had to develop a new and improved UA product platform which would meet all our regulatory, consumer, and pricing needs.”

PRODUCT INNOVATION: UNMANNED

AUTONOMOUS TECHNOLOGY

APPLICATIONS RESEARCH (UATAR™)

Unmanned Autonomous Technology Applications Research or UATAR™ was developed by V-TOL to rapidly create new UA technologies and services. This business model provides V-TOL with a research and development forum for developing tailored solutions for

commercial sectors new to the UA capability as well as feeding its product and technology pipeline. V-TOL is now in the process of testing this model in its first commercial project with multiple partners, including a global corporation.

Mr Xavier said the UATAR business model was the standout V-TOL value creator.

“The model allows V-TOL to cross seed its technology into high value projects, with commercial partners financing product development for which they are the first user. It’s a low-risk solution for our clients to pursue technology development customised to their commercial needs. It has the potential to generate long-term national and global export opportunities for the company,” he said.

SERVICE INNOVATION: EDUCATION

AND TRAINING

In 2010, V-TOL in collaboration with The University of Queensland (UQ) launched the Australian Unmanned Systems Academy (AUSA). The academy educates students and organisations in unmanned systems and will provide qualifications in the operation of unmanned systems technology. Its Future Skies®, youth, and MARRS© industry development programs are designed to create career pathways for the individual, and commercial opportunities for organisations that can benefit from the

UA capability. The Australian Air Force Cadets, Queensland secondary school and UQ students will be among the first AUSA graduates in the operation, maintenance and piloting of UAs.

“AUSA was the final link in V-TOL’s product and service delivery strategy. Providing training is important to successfully attract and seed organisations in this evolving technology,” said Mr Xavier.

SERVICE PROCESS INNOVATION

UA is both expensive to purchase and quickly outdated.. V-TOL has developed an innovative and long-term customer-focused business model to keep UA technology affordable, effective and attractive for its commercial clients. Its UA products are supplied under a lease agreement which includes regular software and systems updates as part of on-going maintenance.

Mr Xavier said: “We had to come up with a new model for selling UA products because the technology is evolving far too quickly for most commercial operators to work to a traditional supply model. I believe our approach will become the benchmark standard for this type of technology.”

V-TOL Aerospace was one of the first commercial suppliers to enter the unmanned aircraft (UA) industry in Australia. Mark Xavier and Peter Hill founded the company in 2005, initially supplying UA – or remotely piloted aircraft – to clients for use in agriculture and energy research projects. The company has grown exponentially in its six years of operations, and is expanding into New Zealand and the South-East Asian market. (V-TOL recently opened its Asian office to be close to clients in Thailand, Malaysia and Indonesia).

Coming from military surveillance and aviation backgrounds, both the company founders saw an enormous commercial potential in this emerging niche industry. However, the pair soon discovered that to succeed, V-TOL needed to support its products as well as the market’s understanding and uptake of the technology. They began operating to a fluid business plan and set about developing a raft of synergistic and innovative solutions in response to meeting multiple business challenges.

Mr Xavier said that while UA products remain the company’s focus, their operations have expanded to include the design, manufacturing, education and training, research and development subcomponents of the sector.

Mr Xavier explains: “V-TOL began as an importer of unmanned aerial vehicles. However, we now have a finger in each part of the industry pie, from product development all the way through to providing operator training services. Our approach is very different to our competitors and even that of the large aerospace companies. We’re unique in Australia. However, what we’ve done has positioned V-TOL to be able to respond quickly to demands and opportunities in this emerging technology sector.”

In parallel to developing V-TOL, the company founders have also worked closely with organisations such as the Australian Defence Force, the Civil Aviation Safety Authority (CASA), and the insurer QBE Aviation to successfully develop workable industry regulations and insurance policy pathways. Mr Xavier said they had helped develop regulations designed to proliferate the commercial UA industry in Australia. “Australia is now a world leader in the commercial unmanned aircraft industry. To sell a product we’ve had to seed and help cultivate an industry,” he said.

V-TOL Aerospace applies innovation across it’s entire business to successfully grow its business into a leading supplier of commercial UA technology. Three key areas of innovation employed by V-TOL are new products, new services and more efficient service delivery methods.

Product innovation

• The Warrigal family of tactical mini- unmanned aircraft (UA) systems (UAS)

• The Unmanned Autonomous Technology Applications Research (UATAR™) as a platform for funding R&D and attracting first mover market sector customers

Service innovation

• The Australian Unmanned Systems Academy (AUSA) to provide education and training to the individual and organisation


• A new business model for the supply of UA technology to the commercial sector

“To sell a product we’ve had to seed and help cultivate an industry. We had to be innovative.”


CASE STUDY: EIDOS INSTITUTE

a 2010 Australian Business Award for Innovation (Business & Professional Associations).

In addressing the Institute during the first sit-down address of her 2010 election campaign, Prime Minister Julia Gillard noted that the Institute was doing “so much collaborative and innovative work in public policy in this country”. Eidos’ network model was also recognised by an E-Skill’s report released in South Africa (e-Skilling the Nation for the Information Society and Creative Knowledge Economies (2009)).


A public policy think tank, the Eidos Institute was established in 2005 to empower social change. Its core focus is facilitating the development and uptake of evidence-based policy in government. A not-for-profit organisation, Eidos operates independently of government, funded by its 13 university members and consortium of industry partners.

The Institute’s point of difference as a think tank is the depth, and capacity for influence, of its network. The Eidos member and partner network comprises some of Australia’s foremost policy researchers and policy makers, with a footprint across 51 campuses in regional and metropolitan Australia.

Eidos is uniquely placed to tap into local intelligence and research activity with the aim of informing and evaluating better public policy initiatives from the grassroots upwards, according to Eidos Institute Director of Communications, Samantha Dean.

In 2010, the Institute implemented an innovative approach to facilitate regular collaboration among its network. The Australian Policy Resource Facility (APRF) provides an innovative solution to multiplying and mobilising research into concrete proposals for social change.

AUSTRALIAN POLICY RESOURCE

FACILITY: ORGANISATIONAL INNOVATION

Operating for only 12 months, the APRF encapsulates Eidos’ innovative approach to maximising benefits from

networks. By facilitating network collaboration, the APRF functions as an institutional alternative for identifying and contributing to promising policy innovations in Australian universities. However, at its heart, the facility is a fortnightly forum for representatives of Eidos’ member universities to meet and discuss developments in research policy. They also canvas holding events to increase policy research awareness and debate.

Ms Dean said: “The Australian Policy Resource Facility is a representative body providing a gateway to the Eidos Institute research and university networks. The facility’s value lies in increasing the scale on which universities can collaborate as well as enabling universities to talk to each other. It’s highly unusual for 13 universities to be collaborating to this degree. That’s really what makes the APRF innovative, unique and extremely successful.”

The APRF promotes collaboration on projects, events and partnerships within the realm of public policy. Representatives discuss opportunities from government, industry and other member universities. They also talk about the potential for research collaborations. The project is a tangible example of collaboration in action, and Eidos hopes it will be a successful means to “increase the profile of the nexus between research and policy formulation”.

The federal government has begun engaging with Eidos to use the APRF as point of contact for large scale research. “The government recognises this Facility gives us the capacity to put together the best research teams for projects,” said Ms Dean.

The APRF was an initiative of Eidos Institute Chief Executive Officer, Bruce Muirhead; APRF Chair and Newcastle University Director of Research Development, Dr Andrew Johnson; and APRF Deputy-Chair and Griffith University Business Development Manager, Katrina Cobb. In designing the APRF model, they shifted from a dominant network paradigm which focuses on networks as a hierarchy, to a collaborative architecture.

Ms Dean said: “They really thought about influence in a different way, and drew on emerging principles based on technology and light networking. The model allows for information to be easily and quickly disseminated among our members.”

BEHIND THE EIDOS SUCCESS

The Eidos Institute is viewed as one of the few successful Australian think tanks. The Institute cites its independence from government and its cultivation of strong relationships with universities, industry and government as the two pillars of its success. Ms Dean said Eidos had the ability and flexibility to change to reflect the market because of its independence.

“We don’t have to shy away from changes in policy and this has been part of our success. We’re also very effective because we haven’t discounted the private sector, and as a result have an increasing influence in this sphere. Lastly, Eidos connects research with policy by putting it into context through our events and facilitated round table meetings,” she said.

BACKGROUND

The Eidos Institute was founded with seed funding from the Queensland Government. Now funded entirely by its members and industry partners, Eidos reinvests its annual surplus to support priority research by government and university members via the Eidos Annual Grants Program. The Institute’s emphasis on quality research has meant the successful translation of research into sound policy outcomes.

Eidos runs an annual events program to generate awareness of public policy issues. The program plays a critical role in Eidos’ ability to influence current trends and challenges in social and economic realms. Each event is co-marketed by the Eidos members. A key aim of Eidos is to mix university researchers with representatives from government and industry. Up to 5000 Australians attend an Eidos event annually.

The organisation’s innovative work has been recognised publically by Prime Minister, Julia Gillard, and with

“The Eidos Institute is grounded in innovation. It’s the one way we can ensure we deliver value to our members.”

The introduction of the Australian Policy Resource Facility is an example of how the Eidos Institute has successfully applied an innovation to its organisational structure to boost policy research in Australia.


• Establishing the Australian Policy Resource Facility (APRF) as an institutional alternative for identifying and contributing to promising policy innovations in Australian universities

“Innovation has huge implications for everything we do. The challenges facing the mining industry in the future are significant...they will be confronted only through the combination of innovation and the introduction of new technologies.”

CASE STUDY: RIO TINTO


term partnerships with the world’s best researchers and suppliers. Together, we’re creating pioneering new technologies that will let Rio Tinto reduce its footprint, and create safer, more efficient and intelligent mines.”

Brisbane is a logical choice as a major corporate hub for Rio Tinto. Rio Tinto has some 2500 employees working in Brisbane, including several leaders of group functions and business units. According to Mr McGagh, the Australian mining industry has a track record of embracing innovation, while the Australian mining technology and services supply sector is world-class and capable of producing innovation breakthroughs.

“Brisbane is a prime location for innovation. The city is the corporate headquarters for our coal, aluminium, alumina and bauxite operations in Australia, as well as technology, innovation and business functions. We have a key research partnership with the Julius Kruttschnitt Mineral Research Centre at The University of Queensland, as well as a relationship with UQ Business School,” he said.

MINE OF THE FUTURE™ PROGRAM

Rio Tinto’s innovation flagship is its Mine of the Future™ program. Through the program, the group is developing mine automation and remote operation technologies. The first Mine of the Future™ project was launched in 2008. An operations centre was established

in Perth to direct iron ore operations 1500km away in mines located across the vast Pilbara region. From this centre, Rio Tinto is actively piloting technologies to remotely control haul trucks, drills to extract ore, and driverless trains to carry it to port. They are also operating ship-loaders from the safety of the shore.

Mr McGagh, who is the executive manager and business champion of the Mine of the Future™ program, said: “This breakthrough program is designed to turn traditional mining on its head, by creating mining operations that result in greater energy efficiency, lower production costs, improved safety and environmental performance, and new career options for people.”

COLLABORATIONS

Rio Tinto complements and integrates its Mine of the Future™ program through key collaborations with innovative research groups. To date, AU$50 million has been invested in establishing five research collaborations with universities in Australia, Canada and the United Kingdom. The research programs are tailored to help Rio Tinto support smart mines and meet future challenges.

Mr McGagh said collaboration was in keeping with Rio Tinto’s long term commitment to innovation. He said: “It’s part of our strategy to collect the world’s experts and develop mutually beneficial partnerships to create

technologies which address the future requirements of Rio Tinto. Put simply, there is no other mining operation in the world attempting to take the approach that we are on this scale.”

BACKGROUND

Rio Tinto is a leading global mining business, with interests in aluminium, copper, diamonds, energy products, industrial minerals (borates, titanium dioxide, salt and talc), and iron ore. The group employs 77,000 people who work in more than 40 countries on six continents. About 2500 of these employees are based in Brisbane, with links to regional coal or aluminium operations, and global functions within the business. The company is one of the biggest private industry employers in the city.

KEY NEW TECHNOLOGIES

• Remote monitoring in underground mining

• Automated tunnelling machines, drilling rigs, and trucks

• Remotely operated trains, train load-outs, rock breakers, and service assistance

• Autonomous sensing equipment to fine-tune ore recovery

• Block cave mining and rapid tunnel development technologies – to extract ore from large ore bodies without having to dig an open pit at the surface

• Pit material sizing and conveying

• Process advances in ore sorting and pulverising

• Enhancing metal extraction in heap leach processes

• Highly sensitive airborne gravity measurement system to detect subtle density differences in the earth’s crust

BRISBANE is a global innovation hub for international mining group, Rio Tinto. The group, which is positioning itself to be an innovative leader in mining, is driving many of its game-changing or ‘step change’ innovations in technologies and operations from the city.

Technology and innovation sit with the exploration initiatives as key areas that support Rio Tinto’s five principal product groups. The Group’s Head of Innovation, John McGagh and some of his core team of 50 are based in Brisbane. With 30 years’ experience with Rio Tinto, Mr McGagh has an overwhelming passion for innovation. His aim is to garner the mining company a competitive advantage in developing ore bodies likely to be available in the future.

Mr McGagh said he strongly believes Rio Tinto has the edge in mining innovation, and that this is significant enough for Rio Tinto to be an innovative leader. He said: “The Rio Tinto group produces metal and mineral products that are in high demand in modern societies. We need to foster even more innovative approaches to production to satisfy this demand into the future. The challenges that we envision for the mining industry in the decades to come are significant, but they’re also exciting.

“At Rio Tinto, we’re meeting these challenges head on by developing and implementing step-change technologies. We’ve engaged in long-

Rio Tinto’s Technology and Innovation group is developing a raft of new technologies to drive its future mining success. These technologies, along with new operational methods, exemplify an ongoing commitment to product process innovation.

Product process innovation

• Significant advances in mining technologies to improve the efficacy and safety of ore identification, extraction and processing as well as transporting resources for export.

“The day for restaurants getting by purely on food and service is gone...You have to be innovative to stay that extra step ahead of the competition.”

CASE STUDY: RESTAURANT TWO


Innovation is integral to every aspect of Restaurant Two’s business. From sourcing fresh produce to crafting sublime dishes and delivering customer service with finesse, owner and head chef, David Pugh, uses innovation to create multiple points of difference for his restaurant.

Mr Pugh’s relentless dedication to fine food and the consummate dining experience has led to Restaurant Two becoming one of Brisbane’s iconic dining destinations. Operating for 12 years in the CBD, the restaurant’s reputation is backed by industry awards including, 1st Place Contemporary Australian Restaurant 2010, and Restaurant of the Year 2010. Restaurant Two also carries the coveted Australian Gourmet Traveller 2 Stars rating.

Appointed Queensland’s Ambassador Chef for the second year running in 2011, Mr Pugh said innovation underpinned his restaurant’s longevity and continued popularity. He said: “The day of restaurants getting by purely on food and service is gone. People expect an overall package. You have to be innovative to stay that extra step ahead of the competition.”

SOURCING THE BEST QUEENSLAND PRODUCE: LOGISTICS/DISTRIBUTION INNOVATION

Queensland produce is the inspiration and the basis of Restaurant Two’s menu. More than 75 per cent of the menu is

sourced from Queensland growers. Fulfilling a commitment to sourcing the best and freshest Queensland produce has required an innovative approach.

In the past decade, David Pugh has built up a unique cooperative of Queensland farmers to package and supply their produce directly to Restaurant Two. Mr Pugh keeps abreast of new products and emerging producers thanks to a collaborative partnership with the Department of Primary Industries, Fisheries and Rural and Regional Queensland. Weekly updates are fed through to Restaurant Two, with the chef in turn publicising exciting new Queensland produce through an article in Brisbane News.

Mr Pugh said: “I chase produce. I make a point of finding the best suppliers of the freshest produce and working with them. I’m always looking out for new primary producers. They’re vital to my business. I’ve been trying to line up other Brisbane restaurants to take advantage of my suppliers but they generally put it in the too hard basket, which is just one of those things I guess.

“It can be fiddly. We’re talking about perhaps $100 worth of produce from one supplier who can’t guarantee his harvest. The produce may only be available for two weeks in the year, and to top it off Queensland seasons are very different to the rest of Australia. It requires flexibility, and as a chef you have to think differently. But the food is

absolutely sensational,” he said.

Mr Pugh believes the ‘crop to plate’ introduction inspires his staff to create exciting dishes. “There’s nothing better than knowing the people who’ve grown, harvested, boxed and delivered your produce. Their passion for the food is contagious.”

ENHANCED CUSTOMER EXPERIENCE: ORGANISATIONAL/SYSTEMS INNOVATION

Restaurant Two is customer-focused and has taken innovative steps to create the ultimate dining experience. Mr Pugh said: “First and foremost Restaurant Two is about the customer. Food is only 30 per cent of the balance. Service plays a huge part in satisfying restaurant customers.”

The restaurant places a great emphasis on training and briefing its wait staff to deliver that exceptional customer experience. Further to developing a training program, systems also have been developed for dealing with confrontational situations while every customer’s likes and dislikes are recorded in a comprehensive database. This information is used to brief wait staff before each sitting, so that a customer’s desires are anticipated – from their preferred drink to their favourite meal. If a customer is new, they are ‘Googled’.

An online marketing strategy complements the database. Quarterly,

the database is segmented and targeted e-newsletters are sent to customers. Initiatives such as online booking and an online birthday card and voucher also feed into the database.

INFLUENCING THE CULTURE OF THE

QUEENSLAND HOSPITALITY INDUSTRY

David Pugh’s biggest concern for the Queensland hospitality industry is a lack of apprentice chefs. He is actively working to mitigate a decline in training opportunities for apprentices. By taking positions on the Restaurant and Catering Queensland committee and the Southbank Institute of Technology committee, he has direct input into training syllabuses. Restaurant Two also has a commitment to taking on up to four apprentices at any one time.

For the past 10 years, Restaurant Two has also run a program for high school and college students. Each year, between 200 and 300 students along with their teachers are provided with onsite training. Mr Pugh said: “We give the kids and their teacher an appreciation for what it’s like to work in a functioning kitchen, from the front of the house down to the laundry service.

“This plays an important role in shaping the culture of hospitality in Queensland because even if these students don’t end up training to be a chef they might support themselves through university or college by working in the industry.”

Restaurant Two has applied two innovation strategies to achieve its success:

Logistics/distribution innovation

• Forming a cooperative of produce suppliers, which is informed by a strategic relationship with the Department of Primary Industries, Fisheries and Rural and Regional Queensland


• Utilising database technology to improve the customer dining experience

• Implementing a staff training program and customer relations systems

• Adaption of online marketing initiatives


to quality and relevant post-trade electrical training that was also cost effective. So filling this gap was one of the first steps we took to improve the electrotechnology sector.”

The following year, ECA launched ECA SafetyConnect Pty Ltd (a wholly-owned subsidiary) to deliver an electrical safety service. The company provides an off-the-shelf, scalable service for contractors to meet all their obligations under the Electrical Safety Act as well as assisting with Workplace Health and Safety Act compliance. SafetyConnect has more than 750 subscribers with revenues topping $4 million annually.

Mr Wash believed SafetyConnect had been fantastically successful by any measure. He said: “The most exciting feature of this service is that for the first time small contractors can economically meet all the health and safety standards necessary to compete for large government and industry tenders. It’s opened up a whole new market for many electrical contractors.”

In 2009, the ECA established Master Electricians Australia (MEA), the first national accreditation system for electricians. To qualify as a master electrician, electricians must meet a range of standards including safety, quality and energy efficiency training. To date, more than 650 electrical contractors have been accredited by the MEA as master electricians.

Mr Wash said: “Master Electricians Australia has been the capstone of our innovative services. It provides the independent tick for the industry and consumers, guaranteeing electricians who are highly qualified as well as committed to ethical and professional practices along with high safety standards. Through this brand we’ve been able to raise the profile of the industry and engage policy makers, industry and consumers. The federal government has already demonstrated a willingness to mitigate its own risk by using master electricians because of the guarantees the accreditation involves.”

Also in 2009, the ECA formed the Energy Management Institute as a vehicle for accrediting training courses for electricians as energy auditors. Licensed electricians completing courses accredited by the Institute are qualified to advise and help customers reduce their energy emissions through the use of energy efficient and renewable energy solutions. In addition, the Institute is positioning itself to become the pre-eminent body for accrediting all training programs delivered for the electrotechnology sector.

“There’s a need for an independent body to assess training institutions, whether they’re a university, TAFE, or training association, and we believe the Energy Management Institute is perfectly suited to this role. An industry-wide training accreditation system

will raise the bar of service delivery in Australia and enable our members to make informed decisions about training courses,” said Mr Wash.

HELPING QUEENSLANDERS THROUGH

THE 2011 FLOOD AND CYCLONE YASI

The ECA, through its MEA initiative, played a crucial role in helping Queenslanders recover from both the devastating January 2011 floods and cyclone Yasi. Working closely with Energex, MEA connected consumers with local, qualified electricians.

“We let Energex concentrate on its core business of delivering electricity, while we worked in a targeted way to put consumers in touch with electricians. That’s part of our core business,” said Mr Wash.

FUTURE INNOVATIONS

In 2011, the Council and executive are rolling out Project Safety Switch. Working closely with manufacturers, wholesalers, industry, and government, they are lobbying for a change to national legislation. The goal is to make it compulsory for every circuit in every Australian house and business to have a safety switch. Mr Wash said: “We believe this will be the turnkey to eradicate deaths in this sector. Even if we only get halfway there we will save 100 lives each year. At no point can we fail in this venture.”

The Electrical and Communications Association (ECA) is the peak industry body for the electrotechnology sector. The association provides technical and industrial relations advice to its members, who are licensed electrical contractors, as well as key services such as training and education, apprenticeship management, and accreditation. The ECA also works closely with government and other key bodies to improve industry standards and champion sound

policy development.

Led by Chief Executive Officer, Malcolm Richards, the ECA has expanded rapidly in the past five years with the introduction of a range of innovative new services. From a Queensland-based union of employers, the 74-year-old association has grown into a national advocate for the sector. Boasting more than 2000 members in Queensland and 500 accredited master electricians across the nation, the ECA has offices in Townsville and Melbourne, with further offices planned for Sydney, Adelaide and Perth by the end of 2012.

The association embraces a strategic vision and has a healthy appetite for risk, according to Chief Financial Officer, Benjamin Wash. Mr Wash said: “Our CEO is a visionary, there’s no doubt about that. He’s been backed by a strong management team and a Board that has been willing to take calculated risks.

“We sought innovative service solutions because we believed it was the best way to meet our commitment to

maintaining the quality and safety in the electrotechnology sector. In turn, we’ve been able to generate greater profits that are then poured back into the Association to develop a higher level of services and advocacy. It’s been good for our members, consumers and the wider society,” he said.

The outcomes for the ECA have been staggering. The Association’s new services now generate a multimillion dollar revenue stream; the operational budget and staff numbers have both trebled; and the ECA has become a respected national advocate for policy changes and consumer safety. In addition, the ECA has been responsible for sweeping changes to the industry.

INNOVATIVE SERVICES

The ECA adopted a multi-pronged, innovative approach to meet training, accreditation, safety and advocacy gaps which it had identified in the electrotechnology sector.

The Association began this journey of innovation in 2006 by registering the ECA to deliver accredited training programs in electrical, communications and data, energy efficiency, and business as well as tailored courses. Its training department, known as SkillsConnect, now turns over more than $1.5 million per annum.

Mr Wash said: “Gaps were identified in the training delivered by TAFE and other training providers with regard

“We capitalised on our core business by identifying market opportunities early, and embarking on a path of innovation. If we’re not embracing innovation and growing, then we’re going backwards. You can’t afford not to be innovative.”

CASE STUDY: ELECTRICAL AND COMMUNICATIONS ASSOCIATION

Service innovation

• SkillsConnect: accredited training programs

• SafetyConnect: off-the-shelf, scalable service for contractors

• Master Electricians Australia: national accreditation system for electricians

• Energy Management Institute: accrediting training courses for electricians

The Electrical and Communications Association delivered four new service innovations to achieve its success.

“Innovation has given our business the competitive edge. We can compete with anyone in property development now because we have control over cost and quality.”

CASE STUDY: ASPECT PROPERTY GROUP


deliver its projects: from site excavation through to construction, and finally fit-out. The majority of Aspect’s team are also multi-skilled; actively cross-trained across trades so that they can be utilised at various stages of a project. An extreme example is one of the company’s painters,who is also a licensed crane dogman*. Other examples include carpentry apprentices being trained to drive excavators and labourers to be crane drivers.

Mr Larkin said: “I didn’t want Aspect to be reliant on external contractors, so I decided to bring all our labour requirements in-house. This presented a challenge because you don’t always have work for tradesmen in every phase of a project. Multi-skilling our team was the innovative solution to this problem. It’s totally different to what anyone else in the industry is doing.”

Having the same teams of people involved on all its projects, and across the life of each individual project, has given Aspect the ability to ensure consistency in design, quality and ongoing product development. Mr Larkin said it had been great for business.

“Our clients have noticed the difference in quality. We’ve found we now have a high number of repeat buyers who, once they’ve bought one property, will buy from subsequent projects because they know how we operate,” he said.

Aspect actively evaluates its employees’ skills so that appropriate training can be offered in different avenues of property construction. The unique approach to professional development appears to resonate with staff. Aspect is proud of its exceptionally high employee retention rate, and has made a long term commitment to retaining staff. Senior staff appointments are now made only from within the company. The policy, which makes promotion a viable option for all employees, has enthused staff according to Mr Larkin: “Sub-contractors are always viewed as a cost to the business but we view our employees as an asset. It’s through this tangible asset that Aspect will continue on its solid growth path.”

Mr Larkin credited the implementation of the cross-training system and team coordination to Aspect Administration Manager, Barbara Lockyer.

HELPING BRISBANE THROUGH A CRISIS

Two of Aspect’s projects were badly affected by the January 2011 Brisbane flood. However, the company immediately mobilised its crew to help out residents. For a month following the flood, the company also made one of its trucks, fully fuelled and with a driver, available to the community on weekends.

“We had our own problems to deal with as a result of the flood, but having a

team and equipment meant we were able to step in and help families in need. Five years ago we wouldn’t have had the resources to respond to this natural disaster,” said Mr Larkin.

* A crane dogman attaches objects to the crane hook and helps direct the crane operator

Multi-award winning property development and construction company, the Aspect Property Group, specialises in residential apartments, redevelopments and commercial properties. The company has developed more than 50 properties across South East Queensland in its 22-year history.

In 2006, Aspect founder and Managing Director, Allan Larkin, implemented an innovative approach to his company’s service delivery. His unique solution to controlling costs and project quality has propelled the business’ growth: increasing efficiency by 25 per cent and raising revenue by 30 per cent to $30 million per annum.

“Aspect has developed a reputation for delivering unique and innovative properties, and this has definitely contributed to our success. That, coupled with an ability to identify market opportunities quickly,” said Mr Larkin.

“We’re also known for quality workmanship but I was finding it harder and harder to control both quality and costs. So I began looking for a better way to deliver our projects,” he said.

SERVICE PROCESS INNOVATION

Uniquely, Aspect decided to reject the sub-contractor model used by construction groups. The company instead built a team of 25 employees to


• Cross-skilling employees to create a multi-skilled workforce

The Aspect Property Group developed a key service process innovation to achieve its success:


There are a number of people who

deserve special thanks for their

formative role in this Scorecard. They

include Deloitte’s Corporate Finance

partner Robin Polson and David

Redhill Chief Marketing Officer for

their ongoing support; David Jackson,

Brisbane City Council, Iain Watson,

UQ Business School and Ian Fletcher

from the Department of Employment,

Economic Development and Innovation

(DEEDI) for believing in the project.

Assistance was gratefully received

from the Australian Institute of

Commercialisation (QLD Manufacturing

Institute) & Enterprise Connect.

We would also like to acknowledge

and make special mention to

the following for their valuable

contributions to this project.

Brisbane Innovation Scorecard 2011

Management Group:

Gerald Marion, Deloitte

Dr John Steen, UQ Business School

Dr Mishka Foster, Brisbane City Council

Andrew Rose, DEEDI, Queensland

Government

Tony Krimmer, Innovative Regions

Centre, Enterprise Connect

Technical advice and analysis:

Dr John Steen and Dr Martie-Louise

Verreynne, UQ Business School and

Dr Mishka Foster and Aude Bernard,

Brisbane City Council

Interviews and case studies:

Louise Denver, Deloitte.

Julia Renaud, Strategique.

ACKNOWLEDGEMENTS

About Brisbane Marketing

Brisbane Marketing, a wholly owned subsidiary of Brisbane City Council, is the city’s economic development agency. Powered by innovation, collaboration and opportunity we promote Brisbane nationally and internationally as Australia’s new world city and drive social and economic benefits to residents and business.

Copyright: This document and its attachments may be privileged or subject to copyright. Any use of this document or any of its contents should have the

prior and express authorisation in writing from Brisbane Marketing. Disclaimer: Brisbane Marketing believes that the information contained in this document

is accurate at the time of publication. Neither Brisbane Marketing nor any collaborating party undertakes responsibility in any way whatsoever to any

person or body for any errors or omissions in this document however they may have been caused. The views expressed in the case studies are those of the

individual companies which completed the Scorecard survey and do not necessarily reflect the views of Brisbane Marketing or the collaborating parties.

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