West of England - PDF document

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1 West of England Full Business Case Scheme: The Centre for Di gital Engineering , Technology & Innovation (DETI) 2 Contents Executive Summary ................................ ................................ ................................ ................................ ..... 5 1 Strategic Case ................................ ................................ ................................ ................................ .......... 8 1.1 Project Description ................................ ................................ ................................ ................................ ... 8 1.2 Project Objectives and Case for Change ................................ ................................ .......................... 11 1.3 Rationale for Public Intervention ................................ ................................ ................................ ..... 12 1.4 Strategic Fit ................................ ................................ ................................ ................................ ............... 15 1.5 State Aid Considerations ................................ ................................ ................................ ...................... 18 1.6 Options Appraisal ................................ ................................ ................................ ................................ ... 19 1.7 Environmental Sustainability Con siderations ................................ ................................ ............. 22 1.8 Equality and Diversity Impact Assessment ................................ ................................ ................... 23 2 Economic Case ................................ ................................ ................................ ................................ ...... 27 2.1 Economic Appraisal ................................ ................................ ................................ .......

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......................... 27 2.2 Value for Money Statement ................................ ................................ ................................ ................. 33 3 Financial Case ................................ ................................ ................................ ................................ ....... 35 3.1 Chief Financial Officer Sign - Off ................................ ................................ ................................ ..... 35 3.2 Scheme Cost ................................ ................................ ................................ ................................ ......... 35 3.3 Spend Profile and Funding Sources ................................ ................................ ............................ 36 4 Commercial Case ................................ ................................ ................................ ............................... 38 4.1 Procurement ................................ ................................ ................................ ................................ ............. 38 4.2 Operation and Financial Viability ................................ ................................ ................................ ..... 40 4.3 Social Value Act ................................ ................................ ................................ ................................ ........ 43 5 Management Case ................................ ................................ ................................ ................................ .. 44 5.1 Promoter and Delivery Arrangements ................................ ................................ ............................ 44 5.2 Project Governance and Delivery ................................ ................................ ................................ ..... 45 5.3 Programme Plan ................................ ................................ ................................ ................................ ...... 46 5.4 Risks, Constraints and Dependencies ................................

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................................ .............................. 50 5.5 Land Acquisition, Planning and other Consents ................................ ................................ .......... 51 5.6 Service Diversions ................................ ................................ ................................ ................................ .. 51 5.7 Engagement and Consultation ................................ ................................ ................................ ............ 51 5.8 Project Assurance ................................ ................................ ................................ ................................ ... 52 5.9 Monitoring and Evaluation Plan ................................ ................................ ................................ ........ 52 Appendices ................................ ................................ ................................ ................................ ................. 53 Appendix 1 – DETI Digital Engineering Work Programmes ................................ ........................... 53 1.1 D igital Design ................................ ................................ ................................ .......................... 53 1.1.1 Themes ................................ ................................ ................................ ................................ 53 3 1.1.2 Work Packages ................................ ................................ ................................ .................... 53 1.1.3 Example Work Package Description ................................ ................................ ................... 54 1.2 Digital Manuf acturing ................................ ................................ ................................ ............. 55 1.2.1 Themes ................................ ................................ ................................ ................................ 55 1.2.2 Work Packages ................................ .....................

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........... ................................ .................... 55 1.2.3 Example Work Package Description ................................ ................................ ................... 56 1.3 Digital Engin eering – Enablers & Digital Infrastructure Requirements ................................ ... 57 1.4 Digital Engineering – Primary Industrial Outcomes ................................ ................................ 57 1.5 Digital Engineering Skills and Workforce Development ................................ ......................... 58 1.5.1 Themes & Indicative Work Packages ................................ ................................ .................. 58 Appendix 2 - DETI Use Cases ................................ ................................ ................................ ...................... 61 Appendix 3 - DETI - related Re gional Research Strengths ................................ ................................ 66 Appendix 4 - Options Appraisal ................................ ................................ ................................ ................ 70 Appendix 5 - Letters of Support ................................ ................................ ................................ ................ 74 Appendix 6 - State Aid ................................ ................................ ................................ ................................ ... 75 Appendix 7 – DETI Finance Model ................................ ................................ ................................ ............ 76 7.1. Chief Finance Officer Sign - Off ................................ ................................ ................................ . 76 7.2. Financial Model ................................ ................................ ................................ ....................... 77 Appendix 8 - Logic Model and Evaluation and Monitoring ................................ ............................. 81 1 Scheme Background and Context ................................ .......

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......................... ............................... 81 2. Logic Model ................................ ................................ ................................ ................................ . 82 3. Evaluation Design and Methodologies ................................ ................................ ....................... 86 4. Data Requirements ................................ ................................ ................................ ..................... 87 4.1 For schemes fully or part - funde d via the Local Growth Fund only ................................ ......... 87 4.2 Data Collection Methods ................................ ................................ ................................ ........ 87 4.3 Data Collection and Establishing the Baseline ................................ ................................ ........ 87 5 Delivery Plan ................................ ................................ ................................ ............................... 89 6 Resourcing and Governance ................................ ................................ ................................ ....... 89 7 Dissemination ................................ ................................ ................................ ............................. 89 Appendix 9 - Equality and Diversity Challenges faced by DETI ................................ ..................... 91 Appendix 10 - Discrimination ................................ ................................ ................................ .................... 92 4 Figure 1 - DETI and National Initiatives ................................ ................................ ................................ ......... 9 Figure 2 – Work Breakdown Structure of DETI ................................ ................................ ........................... 10 Figure 3 - A gallery of disruptive technologies ................................ ................................ ....................

6 ........ 12 Figure 4 - Underpinni
........ 12 Figure 4 - Underpinning high - level skills and core science and innovation capabilities to support industries in two priority areas: Advanced Engineering and Digital Innovation (SWESEW SIA 2017) ....... 16 Figure 5 - Equality and Diversity Actions ................................ ................................ ................................ .... 23 Figure 6 - Enabling Capabilities ................................ ................................ ................................ ................... 40 Figure 7 - DETI organogram ................................ ................................ ................................ ........................ 46 Figure 8 - Risk Register ................................ ................................ ................................ ................................ 50 Table 1 - Equality and Diversity Alignment with Driver s of Growth ................................ ........................... 24 Table 2 - Equality and Diversity Action Plan ................................ ................................ ................................ 26 Table 3 – Cumulative Jobs Created (FTE year) ................................ ................................ ............................ 28 Table 4 - Summary of direct and indirect jobs as a result of DETI, and the associated GVA ...................... 30 Table 5 - Cost Elements (2020 - 2022) ................................ ................................ ................................ .......... 36 Table 6 - Total Revenue Spend ................................ ................................ ................................ ................... 36 Table 7 - Long - List Appraisal ................................ ................................ ................................ ........................ 70 Table 8 - Qualitative Benef its Criteria and Weighting ................................ ................................ ................ 71 Table 9 - Qualitative Benefits by Option ................................ .......

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......................... ................................ ..... 72 Table 10 - Risk Assessment by Option ................................ ................................ ................................ ........ 72 Table 11 - Option Appraisal Ranking ................................ ................................ ................................ ........... 73 Table 12 - Total Revenue Spend (£000s) ................................ ................................ ................................ .... 81 Table 13 - Milestone Completion Dates ................................ ................................ ................................ ..... 82 Table 14 - Logic Model ................................ ................................ ................................ ................................ 85 Table 15 - Inputs, Outputs and Impacts ................................ ................................ ................................ ...... 88 Table 16 - Monitoring and Evaluation Delivery Plan ................................ ................................ .................. 89 5 Executive Summary The Centre for Digital Engineering , Technology and Innovation (DETI) In June 2019 1 , the UK became the first majo r economy in the world to pass laws to end its contribution to global warming by 2050. The target will require the UK to bring all greenhouse gas emissions to net zero by 2050, compared with the previous target of at least 80% reduction from 1990 levels . T he West of England Combined Authority has also declared a Climate Emergency which includes an ambition for the region to be carbon neutral by 2030. This target has profound implications for all aspect of our lives and many of the technologies needed to ach ieve this do not currently exist. Digital technologies will play a major role in helping the UK address these challenges and DETI can play a significant role. The world is facing major challenges in terms of climate change, sustainable development and low - carbon mobili

8 ty amongst others. Whilst DETI cannot so
ty amongst others. Whilst DETI cannot solve these itself, it i s work with leading companies in key sector s of the economy which will make a significant impact. What is proposed builds on real and demonstrable regional strengths and is consiste nt with the N ational I ndustrial S trategy and the region’s L ocal Industrial Strateg y (LIS) . What is DETI? DETI is an initiative to develop and deploy new powerful digital engineering 2 technologies to develop sustainable products, more quickly and at less co st. It will be, by necessity, highly disruptive if the step - changes envisaged by industry are to be realised. DETI Phase 1 – which is the subject of this Business Case – is a two - year programme delivering a series of research and innovation work packages, alongside skills and workforce training, to develop and accelerate digital engineering across multiple sect ors for future generations of engineers and engineering products. It will be delivered by the National Composite s Centre (NCC) , the applicant for th is proposal, with its delivery partners, including the Centre for Modelling and Simulation ( CFMS ) and the University of the West of England (UWE) and other organisations including the Universities of Bristol and Bath . It will be an open - access, sector - agno stic and not - for - profit , and will utilise existing physical infrastructure and assets in the region. It will be a focal point for industry, researchers, educators and technology providers to co - create new tools, techniques and methods which will transform key aspects of advanced engineering and systems integration in the UK. To mobilise quickly, DETI will be set up as a separate Business Unit operating within the NCC during the two - year start - up phase for which WECA funding is sought. The governance will b e reviewed in the second year to ensure it is fit for the growth anticipated in this proposal DETI is being developed in conjunction with the Brunel Challenge 3 . Th is is a major national digital - design initiative currently under development by senior indust rialists

9 with the backing of the Leadership Coun
with the backing of the Leadership Councils of the aero space , automotive, defence, marine and civil nuclear industries. 1 BE IS, June 2019 https://www.gov.uk/government/news/uk - becomes - first - major - economy - to - pass - net - zero - emissions - law 2 In this application, engineering refers to digital design and manufacturing unless otherwise stated 3 The genesis of the Brunel Challenge was, in part, the 2016 South West of England and SE Wales Science and Innovation Audit 6 DETI will be, we believe, positioned to become a hub or spoke of this , if it is successful. DETI will also be eligible to secur e funding from public and private sources including the Industrial Strategy Challenge Funds (ISCFs) , Aerospace Technology Institute (ATI) , etc. Please note, WECA revenue funding is restricted to the two - year start - up phase. So why here? Because the UK, an d West of England (WoE) is a globally significant centre of engineering excellence. Whilst WoE has some world - class manufacturing businesses, its USP is its expertise in the design of large and complex systems in civil aerospace, automotive propulsion, ren ewable energy, oil & gas, defence, construction and national infrastructure. This diversity is at the heart of DETI. The WoE is home to the NCC , a part of the High Value Manufacturing Catapult (HVMC) network. It has a suite of Industry 4.0 enabled capabi lities and engineering capability which makes it one of the largest and most able organisations of its type in the world. CFMS will deliver the initial Digital Engineering high - performance computing environment providing a neutral and secure experimental p latform from launch. DETI will capitalise on existing facilities within the region and ensure it has the capabilities to conduct complex design studies with modest further capital investment. Advanced engineering wo rk is extremely high value in - itself but also support manufacturing jobs, exports and wealth creation in other parts of the UK too. Why

10 now? The 2016 Science and Innovation
now? The 2016 Science and Innovation Audit identified the engineering challenges – and opportunities - arising from the advent of new and powerful tools able to provide a digital thread linking the design, manufacture, testing & validation, in - service and end - of - life phases of a product. Since that time, the technological and economic challenges have intensified, and the UK must demonstrate technical leadership i f it is to secure future private sector investment, particularly from companies owned overseas. What is being sought from WECA? This bid seeks £5m from WECA to supplement £3 .175 m from industry and £2m from the NCC/HVMC to co - fund DETI. Over 50 staff and in dustrial secondees will be recruited , who will undertake a c ore p rogramme of research and innovation w ork p ackages and private work for industry , alongside skills and workforce training . What are the outcomes? Positioned a t the forefront of solving the mo st important societal challenges ( clean energy, carbon - free transport, sustainable products , to name but a few) and recognised internationally , DETI will : • position WECA as the leading region in the UK for advanced product development ; 7 • b ring together the un ique strengths of the region and further afield to deliver cross - sector collaboration ; • secure the growth of the high value engineering sector in the region and in the UK 4 ; • d evelop world - leading tools , methods and capabilities to address the most complex ch allenges faced globally; • o ffer new opportunities to a new diverse workforce 5 ; • creat e new business opportunities ; • improve the region’s wealth and prosperity by participation in the largest engineering programm e s and attracting large amounts of public and pr ivate R&D investment. DETI will deliver the following : • Direct/Indirect jobs – 200 (equivalent to 302 FTE years) • GVA (direct) - £22.32m, with an additional £70m - £170m through the added value of the R&I undertaken

11 and increase in knowledge • Comple
and increase in knowledge • Completion of at l east six separate industry led R&I work packages • 1 , 000 children/pupils engaged from harder to reach areas • 2 CPD short courses delivered to 60 industry employees • Inclusive conversion course • 20 new tech SMEs engage d Contact: Graham Harrison, Director Strat egic Partnerships & Government Relations National Composites Centre , Bristol & Bath Science Park Feyn man Way Emersons Green Bristol BS16 7FS Email: graham.harrison@nccuk.com Tel: 07 551 151921 4 By accommodating industrial secondees, who will be exposed to a host of new methods and tools which they will transfer back into their businesses 5 By identifying workforce development issues and providing solutions to them which are not covered by existing FE and HE provision 8 1 Strategi c Case 1. 1 Project Description Digital technology is t ransform ing all aspects of our lives and this trend is set to grow exponentially. The engineering sector has successfully embraced digital technologies over the past 50 - years, but the speed of adopti on and power of these is now unprecedented and leading regional companies have identified an urgent need to respond 6 . DETI is an industry - led response which builds on WoE’s many industrial͕ research and educational strengths and its extraordinary start - up and business acceleration culture and infrastructure. It will be a regional centre of national and international importance . Digital technologies present a major threat for design and manufacturing companies across the world but particularly in the WoE as a major incumbent engineering powerhouse . It is also a major opportunity for the early adopters; DETI seeks to put the WoE in a position to protect its current position of strength and to build on it. Failure to address the challenge will have consequences which will be felt wider than just in the WoE; much of the manufacturing of civil aero

12 space, defence systems, renewable energy
space, defence systems, renewable energy devices and national infrastructure is engineered here. If UK /WoE loses the engineering ‘ownership’ of complex systems, it will almost certainly lose much of the manufacturing in due course. DETI will address these challenges by the development and adoption of powerful new tools to design, make, test and operate the next generation of products as well as helping with companies mo re immediate engineering needs . It is more than just technology though; DETI recognises the importance of the individual and the need to up - skill the current workforce and equip the future workforce with the means to prosper in a more - digital future. How m ight this impact on the WoE? Regional companies are involved in, or are seeking to be involved in , some of Europe’s most important engineering programmes such as: • Joule Challenge – a project to develop next - generation ultra - large offshore wind turbines • Dig ital Wing of Tomorrow – securing design and manufacture of advanced aircraft wing architectures in the UK while dramatically reducing carbon emissions • Future aircraft propulsion such as Rolls - Royce and Airbus’ E - FanX electric propulsion programme • Tempest – the UK’s future defence fighter aircraft (with all four partner companies active in the WoE) • Future Naval vessels – the WoE is home to the Naval Design Partnership, a consortium of leading companies which design and export naval vessels 6 2016 West of England and South East Wales Science and Innovation Audit The automotive industry seeks to use digital technologies to cut the time to develop a new vehicle from 5 years to 3, the cost from £1 billion to £500m, and to validate the design in the virtual world and reduce the need for physical demonstrators. 9 • National infrastru cture – regional companies are involved in the design and/ or manufacture of rail, road and energy infrastructure including sub - sea systems

13 . How will DETI fit within the current
. How will DETI fit within the current landscape? DETI will align with several existing and developing national initi atives including: • The Brunel Challenge 7 • Manufacturing Made Smarter • Other ISCF ‘Challenges’ in areas such as autonomous flight͕ construction and sustainable technologies • ATI programmes which have a strong digital element DETI has a strong focus on design and manufacturing elements and complements other n ational engineering initiative s as sho wn in Figure 1 - DETI and National Initiatives . Major companies involved in the development of DETI are also active in the Bru nel Challenge and other national programmes. Figure 1 - DETI and National Initiatives DETI will blur the artificial distinction between design and manufacturing which are inextricably linked. S ince July 2019, industry - led W orkin g G roups have identified what is needed to make the step - change in the engineering performance required. There are now sixteen Work Packages identified and this non - exhaustive list will form the basis of DETI’s activities ( Figure 2 – W ork B reakdown S tructure of DETI ) . It will build on regional capabilities including the N CC’s ability to 7 An initiative being developed by the auto, aero, defence, marine and civil nuclea r industries to address the design challenge at a national level. 10 generate manufacturing data and CFMS and another partners’ ability to interpret and utilise it͘ This will avoid the real danger that designers create concepts which work well in the virtual world, but which can’t be made͕ repaired or dismantled at the end - of - life. Figure 2 – W ork B reakdown S tructure of DETI The Digital Engineering Skills and Workforce Develop ment Work Programme is a key part of DETI. C oordinated with the WoE Employment and Skills Plan , and other skills - related initiatives , it will address the need to inspire children from primary school onwards and will

14 help provide a continuous supply of di
help provide a continuous supply of dive rse suitably qualified and experienced people to enable the digital transformation of the manufacturing sector to deliver clean sustainable growth. It has been shown that a diverse workforce enables organisations to be more creative, innovative and perform better. DETI will develop and deliver the Digital Engineering Diversity Demonstrator Programme and CPD short courses under this Work Programme. 11 More information on the three DETI W ork Programmes and required Digital Enablers can be found in Appendix 1 – DETI Digital Engineering Work Programmes . The applicant and the companies supporting this proposal, do not know of any public or private organisation which has the breadth of capabilities required in a single entity. DETI recognises there are pockets of expertise across the UK and will seek to forge links with these to avoid duplication. It recognises that the Brunel Challenge envisages a hub and spoke model across the UK and DETI will link with these as and when it i s approved by UKRI and BEIS. 1. 2 Project Objectives and Case for Change The overarching mission of DETI is to secure the future of complex product development in the UK . This will be achieved by : Phase 1 ( initial two years) • Establish DETI as a Business Unit of the NCC . This will utilise establish e d governance and operational capabilities , together with delivery partners including CFMS and UWE . • E stablish DETI as a regional centre of national significance in the WoE through delivering a Core Programme of c ross - sectoral, cross - industry Digital Engineering Work Packages as determined by the DETI industry partners. • Agree and deliver a digital engi neering skills plan for the West of England, aligning with the regions’ Employment and Skills Plan͘ This will build upon and add value to existing skills initiatives already being delivered in the region such as Workforce for the Future , the SWIFT Institute of Technology and Universities. • Improve the attractive

15 ness of Digital Engineering to student
ness of Digital Engineering to students and the delivery of Digital Engineering skills training to the existing workforce. • Help regional and national companies secure work on major new engineering programmes. • Develop a sustainable business model which is not dependent on public sector revenue funding beyond the i nitial two - year start - up period. This will require securing private industrial investment and public and private funding by means of collaborative R&D programmes (from the ATI, Innovate UK, ISCFs and EU programmes, etc) Phase 2 (longer term) • Develop new to ols and methods yielding 25% reduction in advanced engineering product development by 2023 and 50% by 2029 . • Establish DETI as a national centre for Digital Engineering 12 1. 3 Rationale for Public Intervention a. A step change in engineering approach: Digit al technologies have transformed the world economy in the past 20 years and this is set to continue. McKinsey have identified a number of digital technologies which they believe will increase global GDP by 15% by 2025 (see Figure 3 - A gallery of disruptive technologies ). These include 5G, AI, IoT, robotics and related technologies. This report 8 also identifies new autonomous vehicles, energy storage, advanced materials and additive manufacturing as areas which will have a significant digital dimension to them. It also identifies some industrial sectors, such as renewable energy and oil & gas sectors, which will be disrupted/transformed by digital technologies. Even the largest engineering companies are concerned ab out their ability to understand and adopt such technologies and DETI’s attraction is that it can act as a ‘sandpit’ to test and evaluate new technologies in a safe environment outside of companies’ day - to - day operations. DETI is wider than composites; it w ill offer engineering support to any sector and any company with advanced engineering challenges. Figure 3 - A gallery of disruptive technologies Advanced engineering businesses are fac

16 ing competition from conventional quarte
ing competition from conventional quarters (other automotive and aerospace companies for instance) and disruptive innovators and technologies such as Uber, Facebook, Tesla and other tech - based firms. DETI seeks to provide a place and a 8 https://www.mckinsey.com/business - functions/mckinsey - digital/our - insights/d isruptive - technologies 13 platform where long established engineering companies and tech - businesses – including smaller early stage companies - can meet to identify needs and solutions for mutual benefit. The manufacturing sector is in a weak position and there is a need for an increase in productivity. UK productivity is 20% below the OECD ave rage 9 . The November 2019 Make UK report stated: “October marks the seventh consecutive month where job losses have been observed in the manufacturing industry. Furthermore, the rate of decline has been at its fastest for the past decade. Poor sales and low confidence both heavily contributed to the loss of these jobs and prevented the replacement of leavers and redundancies. Hiring freezes have been taking place as manufacturers are uncertain of their outlook. Sparse order books and diminishing capital rese rves have left manufacturers with a low propensity to invest in either new staff or capital, resulting in the loss of staff in attempts to balance the books” DETI will fundamentally transform advanced engineering by taking existing traditional engineering tools, techniques and skills, and combining these with breakthrough technologies such as AI, AR/VR and 5G, which are not being fully exploited. DETI will therefore allow advanced engineering firms to develop the means to remain competitive in an increasing ly Industry 4.0 environment. b. Fragmented ecosystem: Much of the expertise required to develop new future complex products already exists in the WoE but it is fragmented and spread across several research groups, businesses and sectors. The establishment of DETI will be a focal point and catalyst to bring th

17 ese together to transform product desig
ese together to transform product design and secure the region's international reputation as the go - to place for digital engineering. Individual businesses are unable to do this themselves. The South Wes t England Science and Innovation Audit evaluated scientific excellence and growth potential across one of the most vibrant regions of the UK. The SIA identified areas of world - leading research and innovation in the South West, including aerospace, microele ctronics, environmental technologies, and digital systems. The principal conclusion of the SIA is that better integration of these scientific and industrial strengths could be driven by a series of strategic investments in Advanced Engineering and Digital Innovation. c. Lack of opportunities for SMEs: SMEs are crucial for innovation and sustainable economic growth, and the WoE has a wealth of early stage digital/technology business es in some of the areas identified in Appendix 1 – DETI Digital Engineering Work Programmes . DETI will horizon - scan to find opportunities for this community to deliver solutions to the more traditional engineering businesses. This will providing opportunities for digital tech SMEs , some 9 Made Smarter Report, November 2017, BEIS 14 of w hich have expertise in, for example, visualisation technologies , homed in the creative industries 10 . DETI will collaborate with such companies and some of the jobs created could be within such organisations 11 . It will explore the opportunity to deliver natio nal programmes such as the digital manufacturing Made Smarter SME sup p ort programme should the North West pilot be extended to other parts of the country. It will also present new opportunities to bid into new private and public funding steams. For exampl e, the NCC is a partner in a recently submitted 5G Industrial Manufacturing bid into DCM S with major companies such as Telefonica, BT, Toshiba, Baker Hughes with the lead role being played by Zeetta Network

18 s , a University of Bristol (UoB) s
s , a University of Bristol (UoB) spin - out company. DET I is referenced in this bid. d. Lack of skills: Inclusion and diversity are crucial for creativity and innovation, but engineering has a shortage of engineers, a lack of diversity and women are under - represented. DETI will play a role in wider WECA initi atives to address th ese issues but its principle focus will be to articulate the programmes and interventions needed to address the acute shortage of technical / digital skills of which 60.4% of companies reported recruiting difficulties as reported in the 2019 Advanced Engineering & Aerospace WoE Local Sector Skills Statement 12 . The WoE LIS innovation theme recognises that the region has an unrivalled regional strength in research & innovation, particularly in the advanced engineering and digital innovation sectors. However, it is acknowledged that there are several key barriers to growth, including a skills shortage, especially in advanced digital design and manufacturing skills. This investment by WECA will result in much longer - term benefits as the region strengthens its position as a global centre of Digital Engineering excellence by p roviding a n environment for industry, digital technology providers and researchers to explore digital technology boundaries, business process impact and cultural adoption wit hout product operational constraint . 10 A working dinner to explore how this could work involving representatives of tech businesses, large corporates, university representatives and NCC and CFMS is planned for 20th November 20 19. 11 Specialist work contracted to others could contribute to the jobs created described elsewhere in the document; the working assumption of the value of a FTE – including all overheads – is £92k pa. 12 WECA report: https://www.businesswest.co.uk/sites/de fault/files/advanced_engineering_aerospace_lsss_2019_final_for_web.p df 15 1. 4 Strategic Fit The WoE LIS highlights

19 the region’s cross - sectoral innovati
the region’s cross - sectoral innovation ecosystem that is driven by three distinct and overlapping sector strengths, one of which is advanced engineering (including aerospace, marine, energy, defence and others). It also highlights the regions strengths in digital technologies within its Universities, innovation assets and small and large companies. The Strategy identifies the value to be achieved by applying these strengths in leading sectors, including the A dvanced Engineering sector – ‘Digital Engineering’͘ The LIS sets out the intention to establish a new Global Centre of Innovation Excellence (GCIE) to provide strategic direction and coordination across different innovatio n assets, with a focus on the region’s sector strengths above͘ Its objectives are to: • Attract increased investment in research and development • Seek the expertise of partners across the innovation ecosystem, including at UKRI, to foster a coherent and effec tive approach to capitalising on the region’s assets and driving up business innovation and applied R&D • F acilitate collaboration by local partners / industry into national competitive funds • Stimulate and catalyse a pipeline of innovation activity initially in the Grand Challenge areas (ageing society, future of mobility, clean growth, AI & robotics) • Provide incubation and scale - up support for existing and future exporting businesses • Provide affordable, flexible, specialised workspace tailored to the needs o f industry • Market and promote the WoE as a world - leading innovation region • Identify and adopt best practice and new approaches • Coordinate a network of ‘Living Labs’ DETI meets the LIS objectives , in particular the GCIE, and has the potential to be a key ea rly deliverable. DETI provides a flagship project through which the WoE can tangibly demonstrate leadership in the delivery of the LIS . It will act as a catalyst for disruptive innovation and creativity, attracting future - oriented investment to the region, all the while exploiting emerging technologies and

20 creating markets that cannot even be env
creating markets that cannot even be envisaged today. It draws on the strengths of the region, from the major industrial p artners to key engineering research assets (e.g. NCC and CFMS) and excellent regio nal universities (see Appendix 3 - DETI - related Regional Research Stre ngths ). It will ensure that the regions digital tech sector SMEs are fully engaged in the technological development, innovation and productivity improvements that it will deliver. DETI will become a real - world testbed (Living Lab) , using existing advanced manufacturing assets at the NCC to host holistic end - to - end demonstration, speeding up industry adoption of techniques and approaches in Digita l Engineering as envisaged in the LIS . The South West England and South East Wales Science and Innovation Audit (SIA), which fed into the development of the LIS, identified world - leading areas of research and innovation. The SIA found the region can lead the UK and complete with the world in advanced engineering and digital innovation. The conclusion of the SIA is that better integration of scientific and industrial strengths in the region could be driven by a series of strategic investments in advanced en gineering and digital innovation. Investment in DETI meets this recommendation. 16 SQW’s report on the Bristol & Bath Innovation Cluster (November 2018) highlights that the region is well positioned to rival the top innovation cities in the UK and across the world. The aerospace and advanced engineering sector, as well as high tech and digital, were two of the industry sectors specifically highlighted as driving the regions innovation success. The Digital Engineering S kills and W orkforce D evelopment Work Prog ramme of DETI aims to address known challenges within the engineering sector, including workforce skills gaps and lack of diversity. DETI will develop a platform for employees, an any stage of their career, to be reskilled or upskilled with digital enginee ring capabilities, to provide new career pathways or increase value added to the organisation. As such

21 , it supports delivery of the regions Em
, it supports delivery of the regions Employment and Skills Plan. DETI will align with and support existing initiates in the region, such as Workforce for the Future, alongside more bespoke and specialist digital engineering skills development. DETI will directly contribute to the objectives set within the WoE Strategic Economic Plan - creating the right conditions for business to thrive; giving confidenc e and certainty to investors to attract and retain investment to stimulate and incentivise growth; ensure a resilient economy, which operates within environmental limits; create a place where people want to live and work and shape the local workforce . The project will be located at the Bristol Science Park and at the heart of the E mersons Green Enterprise Area . Figure 4 - Underpinning high - level skills and core science and innovation capabilities to support industries in two prior ity areas: Advanced Engineering and Digital Innovation (SWESEW SIA 2017) DETI directly addresses core themes within the UK Governments current Industrial Strategy, including three of the four Grand Challenges (Future of Mobility, AI and Data, Clean Growth) and four of the five foundations – ideas, people, business environment and places. Many of the WoE ’s most productive businesses are built on a foundation of excellent engineering design. In the case of aerospace, significant engineering design capability for wings, landing gear, engines and rotorcraft reside in the region. The wider WoE is the largest UK aerospace region, representing 20% of the UK industry in employment term s 13 , with aerospace and advanced 13 The Aerospace Industry: Statistics and Policy, House of Commons Briefing Paper No. 00928, 8 th November 2017 17 engineering supporting over 28,000 jobs in the WoE and 98,000 jobs in the wider regional economy 14 . The impo r tant role of advanced engineering in the UK economy and specifically in its regions is well documented 15 . DETI will become t

22 he go - to place to collaborate, create,
he go - to place to collaborate, create, test and demonstrate powerful and p roductive Digital Engineering approaches. This requires an organisation with national reach, capable of attracting international acclaim . The NCC has already achieved this as a UK strategic investment in composites en gineering and DETI will benefit directl y from lessons learned by the NCC over the past decade . Building on NCC ’s experience , the co - location of DETI research engineers alongside industry and academic secondees will strengthen and accelerate knowledge transfer and commercial application. Outpu ts will include new platforms, methods, tools and processes for enhancing virtual design, manufacturing optimisation and validation of complex systems . All of these will have the potential to radically chang e the cost and time scales for complex product dev elopment , contributing to the required productivity improvements that underpin the national industrial strategy . This connects to application - specific research in multiple sectors, making possible transformative products like clean autonomous cars and ship s. This will allow the demonstrat ion and exploit ation of DETI outputs and i nnovative IP models will be put in place to secure UK exploitation. The complex products that will be developed more efficiently and quickly using the outcomes of DETI’s work will h ave major impacts in enabling the UK’s move to a low carbon economy for example in in air, sea and land transport and in energy production. 14 South West England and South East Wales Science and Innovation Audit, Dep artment for Business, Energy & Industrial Strategy, November 2016 15 See for example the Manufacturing Regions Programme www.manufacturing - regions.org.uk 18 1.5 S tate Aid Considerations 19 1.6 Options Appraisal Long - l ist of Options A long - list of six options has been developed , show

23 ing how DETI could be delivered, based
ing how DETI could be delivered, based on the needs of industry and research partners . These are summarised as follows: Option 1 - Do nothing – Business as U sual Assumption: No additional capability established and no formal DETI brand, physical entity or organisation created. The CTOs of the NCC and CFMS develop their approaches without reference to the concept. Outcome s : • No resources available for an inte grated Core Programme of research and innovation, or for the recruitment of a team of specialist Digital Engineering research engineers to achieve the critical scale required. • Project - level responses are developed with individual industry partners, respon ding to public funding opportunities as they arise. Multiple duplication of effort in the region, longer durations to holistic solutions as only discrete point solutions will be created. Limited SME exploitation. • No strategic roadmap, integrated programmes or skills development work. • Little or no focus on Digital E ngineering S kills and W orkforce D evelopment. No industrial secondees exposed to disruptive engineering technologies which would limit dissemination into their own businesses. • Regional and UK compa nies fail to keep abreast or lead the development adoption of the most advanced engineering techniques. This could impact on their ability to secure work in major engineering programmes which are a feature of the WoE economy. • No additional costs • No additio nal income into WECA Option 2 – Do minimum ( £2m programme over 2 years, £1m contribution from WECA) Assumption: Limited additional capability established and no formal DETI brand, centre or organisation created. The Head of Digital of the NCC and the CTO of CFMS develop their approaches without reference to the concept. Outcomes: • Lack of critical mass and impact • Small number of staff recruited to augment the NCC, CFMS, University and industry specialists and facilitate partner networking. • Project - level r esponses are developed with individual industry partne

24 rs, responding to public funding opport
rs, responding to public funding opportunities as they arise. 20 • Network of interested partners created and maintained . O ccasional workshops and opportunistic project - based collaboration. • No strategic road map, integrated programmes or skills development work. No capacity to play a significant role in the roll - out of large - scale national strategic programmes . Some additional costs. Option 3a – Do something – Intermediate Option ( £5m programme over 3 years, £ 2.5m contribution from WECA ) Assumption: Formal creation of DETI as a brand and Business Unit within the NCC ( with CFMS and UWE as delivery partners ) . The team operates from office space at NCC engaging with the regional advanced engineering companies an d the digital tech sector and key national bodies (such as ATI, UK Research and Innovation , Innovate UK , Brunel centres and other centres of excellence ) and pursues national and international networking and ‘thought leader’ speaking opportunities. Outcomes : • A DETI Business Unit Director appointed , reporting to the NCC CEO. A small number of existing NCC staff form the initial DETI team. CFMS capabilities integrated into Core Programme delivery . Recruitment of a small number of additional Digital E ngineeri ng research and operational staff. • Roadmaps and W ork Packages in Digital Design R&D defined and prioritised but a limited portfolio of W ork P ackages developed and delivered (see Figure 2 – W ork B reakdown S tructure of DETI for full W ork P ackage outline) . Delivery of Phase 1 over 3 years. • Limited or no investment in D igital M anufacturing demonstrator or testbed /’ Living Lab ’ infrastructure and capabilities, and a small number of supporting Digital Manufacturing W ork P ackages defined. • L imited access to compute services such as cloud and HPC through delivery partner s . • No significant Digital E ngineering S kills and W orkforce D evelopment Work P rogramme deployed.

25 • National research and innovatio
• National research and innovation funding applied for on a pr oject - by - p roject basis ( with industry co - funding secured on the same basis ) but with no long - term industry commitment to supporting DETI as it is sub critical in size and capability . No capacity to play a significant role as a national centre in the deliv ery of large - scale national strategic programmes Option 3b – Do more – Intermediate Option (£10m programme over 2 years, £5m contribution from WECA ) • As Option 3a but with more extensive W ork P ackage portfolio and significant public launch funding into the DETI Core Programme delivery, in demonstrators and t estbed s, and in the Digital E ngineering S kills and W orkforce D evelopment Work P rogramme . • Resources as above, scaled to include more staff , demonstrator and testbed infrastructure, compute/IT tools and re sources, together with a Digital E ngineering S kills 21 and W orkforce D evelopment delivery function and with a network of contributing academic and research partners . Phase 1 project delivered over 2 years to rapidly develop scale and capability as required b y industry, leading to i ndustry commitment for longer - term investment in R&I and skills development. DETI well positioned to win national research and innovation funding and to play a significant and leading role in national programmes from 2022 onwards . O ption 3c - Do more – Intermediate Option (£10m programme over 2 years, £5m contribution from WECA) • As Option 3 b , with team hosted outside of NCC, either as a new not - for - profit company or delivered by an alternative parent body within the WoE innovation e co - system such as a University. Resources as above but with delays and additional costs for new entity setup and operation , delivery partner selection and procurement. Limited synergies with capabilities within NCC and CFMS. Option 4 – Do Maximum Option ( £20m programme over 2 years, £5m contribution

26 by WECA ) • Undeliverable in the
by WECA ) • Undeliverable in the available time • Insufficient industrial match during start - up phase The outcome of this review identifies Option 3b as the preferred option as it scores well across all the criter ia used and represents best value for money. It also allows for the delivery of Option 4 at a later point when DETI is operational and success demonstrated. Appendix 4 - Options Appraisal details the approach used in the Options Appraisal. 22 1.7 Environmental Sustainability Considerations In June 2019, the UK became the first major economy in the world to pass laws to end its contribution to global warming by 2050. The target will require the UK to bring all greenh ouse gas emissions to net zero by 2050, compared with the previous target of an 80% reduction from 1990 levels. The West of England Combined Authority has also declared a Climate Emergency which includes an ambition for the region to be carbon neutral by 2 030. This target has profound implications for all aspects of our lives and many of the technologies need to achieve this do not exist. Digital technologies will play a major role in helping the UK address this challenge and DETI will therefore also play a significant role. DETI has the potential to reduce carbon emissions on a global scale by developing new products which will be used across the world. It will support industry to produce better products; products that are lighter, more fuel efficient, and have less waste through undertaking research and innovation in the virtual world͘ DETI’s services will be used by companies in transport͕ energy and construction, which all must play a major role in meeting this legally binding target. DETI will work wit h the energy sector (on and offshore wind, kite power, tidal stream and wave energy and fusion) which will generate low or zero - carbon energy. Examples will include the “Houle Challenge”͕ an initiative to develop significantly larger wind turbines to help the UK’s target to install 30 gw of offshore wind energy by 2030 (3x the curr

27 ent installed capacity). It will prov
ent installed capacity). It will provide services to the low - carbon mobility industry (automotive, rail and ultra - light rail), etc͘ and support the aerospace industry’s Flightpat h 2050 Vision for Aviation of reducing CO2 by 75%, NOx by 90% and noise by 65% by supporting programmes such as Airbus and Rolls - Royce’s E - FanX programme. DETI will utilise existing assets, facilities and buildings at the NCC and CFMS which are BREEAM ‘ex cellent’͘ In addition͕ utilising and maximising the efficiency of existing assets minimises the environmental impacts of constructing a brand - new building. Benefiting from the structures in place at the NCC means that DETI can enforce the same established environmental and sustainability ethics that the NCC uses. The NCC Chief Operating Officer holds a weekly meeting w ith the Q uality, Environment, Safety & Health Manager, the Operational Compliance and Facilities Manager and the Health and Safety Advisor t o keep up - to - date on current health , safety and environmental issues. The NCC also has several “Sustainability Ambassadors” and an Environment team, who have most re cent ly been leading several initiatives to reduce waste and improve recycling at the NCC. The NCC is leading a major cross - Catapult sustainability initiative which involves representatives from Innovate UK which are increasingly focusing their attention to sustainability issues such as the Single Use Plastic ISCF . 23 1.8 Equality and Diversity I mpact Assessment DETI is aware of equality and diversity related challenges i n respect of the sectors aligned to the scheme (see Appendix 9 - Equality and Diversity Challenges faced by DETI for more detail) . Considering these sign ificant challenges alone, i t is imperative that DETI achieves its equality and diversity goals. T he WECA and LEP objectives (namely the WoE 2030 Vision) further reinforc e the importance of equality and diversity for any scheme in the region and for DETI . Error! Reference source not found. below il

28 lustrates how DETI ’s equality and di
lustrates how DETI ’s equality and diversity actions play a bigger role in the successful achievement of the region’s WoE 2030 Vision. Figure 5 - Eq uality and Diversity Actions Equality & Diversity is embedded in all aspects of NCC life and this will also be the case with DETI. Given that the NCC is the promoter and primary delivery partner of DETI, DETI will comply with the NCC Equality and Diversity Policy. 24 The LEP is clear that the potential our region’s rich diversity brings is a core element of innovation͕ creativity and performance and, thus, economic growth. Through its Strategic Economic Plan , the LEP is clear on its focus for e quality and d ive rsity and DETI complements – and will contribute – to the achievement of these strategic objectives as outlined in Table 1 - Equality and Diversity Alignment with Drivers of Growth . Equality and Diversity Impact Assessment – ident ified strategic objectives DETI Contribution ? Driver of Growth: “Place & Infrastructure” • Remove local barriers to access to work, education and services. • Ensure use of inclusive design principles and community engagement, to meet the key components of su ccessful place making which include: o Sustainable access and connectivity, o Provision of services and amenities, o Balance between built and natural environments Yes Driver of Growth: “SME Business Support” • Improve business capability across the full SME sec tor by promoting the value of integrating equality and diversity practices to enhance success and growth . • Broaden the supply chain to make procurement processes accessible to WoE SMEs, whilst proactively targeting women and minority ethnic led SMEs to maxi mise the value that supplier diversity can bring. • More broadly support, encourage and develop women and minority ethnic led businesses, and tackle barriers which can often be particular to these groups. Yes Driver of Growth: “People – Knowledge Economy, Ski lls and Social Inclusion • Continue to proacti

29 vely build on the skills provision to me
vely build on the skills provision to meet the requirements of employers in the WoE , by tapping into the skills, knowledge and talents of diverse social groups. • Engage with diverse social groups to promote opport unities arising from the priority growth sectors. • Ensure the needs of all social groups are met through our wide - ranging activities to improve employability. • Develop skills programmes and activities based on informed understanding of the needs of disadvant ages groups, including, but not limited to, NEET/Risk of NEET, unemployed 19+ and within our deprivation hotspots. • Engage employers in the value that diversity brings as part of their ownership of skills. Yes Driver of Growth: “Investment and Promotion” • D eliver a marketing strategy which embraces our diversity message as a clear driver of growth and sustainable, long - term success Yes Table 1 - Equality and Diversity Alignment with Drivers of Growth Ultimately, with regards to the i dentified Drivers of Growth specifically, DETI will contribute in the areas of ‘Place & Infrastructure’ by the delivery of a more diverse and inclusive Digital Engineering workforce͘ This͕ in turn͕ addresses the ‘People – Knowledge, Economic, Skills and So cial Inclusion’ driver and impacts on the ‘SME Business Support’ and ‘Investment and Promotion’ drivers also͘ 25 DETI also falls with in the range of interventions identified within the LIS ; further develop ing key industry and research base assets in a prior ity area (namely the Emersons Green Enterprise Area). In achieving its equality and diversity goals, DETI will help ensure the development of skills that employers need , through specific Digital Engineering Skills and W orkforce D evelopment initiatives , lea d ing to a more inclusive and diverse advanced Digital Engineering workforce . 26 Aim Ensure that within all work, DETI equality and diversity principles and values are applied, and actions proactively take

30 n Objective Action Intended Impa
n Objective Action Intended Impact Timelines To ensu re that a full range of equality and diversity considerations are integral to the DETI marketing and publicity activity Promotions of STEM will be considered in line with UK initiatives, such as WISE (Women into Science and Engineering), the Royal Academy of Engineering through their Diversity Programme and the EHRC findings of ‘access to information͕ role models, mentors and hands - on experience’ Because of this, positive role models, imagery and language will be used on all marketing and publicity materia ls and a diverse range of routes will be utilised to target the groups identified within this impact assessment document The promotional works undertaken will ensure that a diverse range of people are attracted and able to engage with the opportunities off ered by DETI. There will also be a secondary impact through the positive promotion of the sector at large to a wide diversity of people. Throughout project – implementation from day 1 Achievement of the DETI commitment to ensuring that employees, contract ors, agency workers and job applicants are treated fairly and in an environment which is free from any form of discrimination. Conduct appropriate monitoring on a regular basis to ensure the delivery of the NCC commitment to equality and diversity. Implem ent the NCC comprehensive Equality and Diversity policy A diverse range of people are attracted and able to engage with the recruitment and employment opportunities offered by DETI. There will also be a secondary impact through the positive promotion of t he sector at large to a wide diversity of people. To ensure that a full range of equality and diversity considerations are integral to the DETI recruitment activity DETI will ensure that information about job opportunities are circulated as widely as pos sible in all circumstances to ensure that it reaches all sections of the community. All applicants will be welcomed considered against the relevant job and/or person specification for the position regardless of their age, gender, marital status, race or e thni

31 city, nationality, disability, religious
city, nationality, disability, religious or other beliefs, sexual orientation, gender re - assignment, social or educational background or family or care responsibilities. Job and person specifications will only include criteria that are relevant and re quired for the job. If there is a genuine and lawful reason for limiting the vacancy to a group, the reason and the grounds for it will be stated clearly on any advertisements. To ensure that DETI is an environment where discrimination is not tolerated DETI will proactively tackle discrimination and ensure that no individual or group is directly or indirectly discriminated against for any reason with regard to employment or accessing its services. DETI will not tolerate processes, attitudes or behaviour that amounts to direct discrimination, indirect discrimination, discrimination by association/perception harassment (harassment by a third party), victimisation or bullying through prejudice. ( Appendix 10 - Discrimi nation for a further explanation of each of these areas , extracted from the NCC Policy ). In DETI’s capacity of research and knowledge exchange, as an employer, in partnership working with and within local, national and international communities, DETI wi ll provide an inclusive and supportive environment for all Meet individual s needs Take account of individual circumstances Promote good relations between all staff, students and stakeholders. Throughout project To measure the impact of our above action s in respect of new Apprenticeships, Masters and PhDs Throughout project Table 2 - Equality and Diversity Action Plan The above objectives will be continuously monitored in order to gauge both progress and the impact of these act ions on the achievement of our project objectives, in particular in line with o ffer ing new opportunities to a new diverse workforce . 27 2 Economic Case 2.1 Economic Appraisal This Business Case covers the two - year start - up period ( Phase 1 ) , when DETI will operate as a B usiness U nit within the NC

32 C , and the economic appraisal below is
C , and the economic appraisal below is therefore focused on this initial two - year phase . Best practice has been used to assess economic impact, including the evaluation of NCC Phase 1 ERDF investment (2013) 16 , the WoE One Front Door funding process 17 , Innovate UK guidance 18 a nd other sources of information and guidance 19 . Use of funds Funding for Phase 1 will be used primarily for staff costs (specialist research engineers, workforce development specialists and a smal l operations team), access to ICT services and resources (high performance computing, software platforms etc.), and a limited amount of new capital equipment . Funds will be used to secure specialist support from other digital organisations which have excep tional capabilities which support DETI’s goal͘ This could include͕ in due course͕ Brunel centres and other centres of excellence͘ This reflects DETI’s aim to be a regional entity of national significance. A fuller breakdown is shown in Appendix 7 – DETI Finance Model . It is important to understand that DETI will have a bigger impact tha n the su m of its parts. The long - term economic impact of DETI , in terms of jobs , GVA , and wider benefits , will be delivered through t hree primary channels: • Direct and indirect jobs created and safeguarded , and the subsequent impact on GVA , arising from the activities of DETI . DETI jobs are much higher value than the average. • The added value of the co - creation of knowledge , tools, meth ods and digital technologies created as a result of DETI. This includes economic benefits for businesses that interact/collaborate through DETI , including through industrial secondees. In estimating this added value , we have referenced a number of case stu dies and reports and profiled impact in terms of additional GVA. • Wider impacts of DETI , including skills and workforce development, and d igital supply chain innovation activity – some economic activity and indirect job creation will take place in early - s tage or start -

33 up digital technology supplier business
up digital technology supplier businesses collaborating with and , in some cases supported by , DETI. 16 Strategic Economics evaluation of the National Composites Centre, December 2013 17 Detail can be found at https://www.westofengland - ca.gov.uk/lep/lep - funding - and - projects/ 18 https://www.gov.uk/government/publications/innovate - uk - completing - your - application - project - costs - guida nce/partner - finance - form - guidance 19 Technation Report 2019 and What Works? Centre for Local Economic Growth 28 1. Direct and Indirect jobs and GVA Whilst DETI envisages a new and disruptive approach to engineering, there are some similarities with the fo rmation of the NCC which may be relevant. They include a similar customer base (leading engineering companies and their supply chains in multiple sectors), a project which builds on existing industrial and academic excellence, and a target market which is growing rapidly and so complex and challenging that a dedicated entity to integrate multiple capabilities is needed. The NCC started with a public contribution of £25m and 10 FTEs which has now grown to 350 and has allowed it to contribute over £200m of di rect investment into the WoE. The NCC has therefore been used as a useful case study and reference point throughout the development of the Economic Case (and Business Case as a whole). a. Gross direct jobs impact : During the first two year s , DETI will create 57 direct jobs ( 86 direct FTE / years) , which are all high - value jobs , as summarised in Table 3 – Cumulative Jobs Created (FTE year) below . This will primarily be through employing new digital engineering research e ngineers, supplemented by secondees and an operat ions team. We are assuming secondee jobs will be backfilled. Up to eight industrial secondees will have spent time in DETI and will impart new learning into their host companies. The role of secondees is ce ntral to the DETI model and adds value through knowl

34 edge capture although this is difficult
edge capture although this is difficult to quantify. The use of ‘knowledge transfer agents’ (secondees) is well understood in UK University knowledge transfer circles (‘people are the best knowledge tran sfer tool’)͘ The NCC hosts a number of company employees who are immersed in the development of new knowledge, which they transfer back into their own organisations. The NCC currently places staff in other organisations as necessary to disseminate knowledg e effectively and DETI will follow this format. Duration of WECA funding Role Type (FTE) Year 1 Year 2 Operational staff 4 9 Digital Engineering Research Engineers 20 3 7 Workforce Development Specialists 2 2 Academic Secondees (additional) 4 In dustry Partner Secondees 3 5 TOTAL (inc. secondees) 29 57 Table 3 – Cumulative Jobs Created (FTE year) 29 b. Indirect jobs : The indirect jobs have been calculated using a multiplier of 2.5 which, in addition to learning from the NCC, i s primarily based on evidence provided by the What Works Centre for Local Economic Growth 20 and their local multipliers toolkit. Their conclusion is that skilled jobs or jobs in high - tech industries generate larger multipliers; the What Works Centre conclud e s that an additional high skilled job creates an average of 2.5 indirect/multiplier jobs. These high value jobs will be the type created at DETI. Therefore, during the first two years of DETI, an additional 216 indirect FTEs will be created. c. GVA Impacts: Direct employment GVA impact is calculated through the application of ‘ GVA - per - FTE year . ’ There are benchmarks listed in the WoE Guidance Notes (£55k GVA/FTE) , although it is noted that the values are significantly lower than those calculated in other stud ies in the direct field of work of DETI for the U niversity of B ristol and for the NCC 21 . The value of digital researcher jobs will be amongst the highest in the WoE. The 2019 Technation report 22 identified tech jobs in the South West had an average GV

35 A of £8 7k, rather than the £55k sugges
A of £8 7k, rather than the £55k suggested in the WECA guidance. This is a very recent and detailed study and f or the purposes of this F ull B usiness C ase we are using the Technation data to calculate potential GVA impacts of DETI . Using 302 FTE jobs ( 86 direct plu s 216 indirect) equates to over £2 6 m additional GVA. However, o nly a proportion of the gross GVA impacts can be described as net additional activity that is attributable to the project. Additionality factors have been adopted to cover Deadweight; Displacem ent ; Leakage; Substitution and Multiplier Effects. The gross - to - net conversion analysis is based on the following equation: Net = Gross *(1 - Deadweight)*(1 - Displacement)*(1 - Leakage)*Multiplier Effect We have adjusted the benchmark additionality ratios and t he justification is given below. • Deadweight reflects what would have happened anyway in the absence of the investment. The benefits estimates are based on additional activity only . T his therefore excludes any activity that would happen anyway. It is clear from consultation with industry partners that they believe that without this project Advanced Engineering activity would see a long - term decline in the WoE , leading to a negative figure for deadweight. On this basis it is assumed to be zero. • Displaceme nt estimates the effects that replace existing activities. DETI will provide a unique combination of skills, digital engineering systems development , and access to Industry 4.0 20 What Works Centre for Local Economic Growth guidance - https://wh atworksgrowth.org/resources/toolkit - local - multipliers/ 21 See NCC ERDF Evaluation Report (2013) which calculates an NCC GVA of £60 - 62k/job year at 2013 prices 22 GVA for digital jobs in the SW of England is taken from the Technation Report, 2019 https://technation.io/about - us/national - network/south - west/ ͖ this is used rather than WECA’s guidance (£55k/ fte)͕ the figures used in the 2013 Strategic Economics ERDF review of NCC (£62.8k) or that figure

36 increased by inflation (£71.4k) based on
increased by inflation (£71.4k) based on ONS CPI figures of 13.25% 30 data sets and demonstrators. We are not aware of any businesses which will be a ffected in the WoE . It is assumed that displacement will be much lower than the benchmark guidance. We have used a figure of 5%. • Leakage represents the economic benefits that fall outside the target area of the intervention. 95% of NCC employees live wit hin the WoE and we have assumed the same profile in DETI job creation . Some work is likely to be undertaken by delivery partners outside of the region in pockets of complementary expertise (examples could include work undertaken at the Turing Institute, Lo ndon or GCHQ, Cheltenham or possibly other Brunel centres ) and this represents leakage . We have therefore used a figure of 10%, which is consistent with guidance. Based on the specific attributes and objectives of DETI, we propose the following adjustment s to estimate the net additional impact of the project. Sub - regional additionality (%) – DETI adjustments Deadweight 0 Displacement 5.0 Leakage 1 0 .0 This yields a net GVA benefit to the WoE of 85.5% of the gross GVA benefits . Table 4 - Summary of direct and indirect jobs as a result of DETI, and the associated GVA below summarises the direct jobs, indirect jobs, and associated GVA impact, as a result of DETI. Year 1 Year 2 Total Yr (1 & 2) Direct jobs FTEs 29 57 86 Indirect jo bs (Indirect multiplier of 2.5) 73 143 216 Total jobs 102 200 302 Total GVA @£87k / FTE 8.87 £17.40 £26.27 Total GVA with x 0.85 additionality £7.54 £14.79 £22.32 Table 4 - Summary of direct and indirect jobs as a result of DETI, and the associated GVA Sensitivity Analysis A sensitivity analysis of the potential economic benefit has been performed to test the vulnerability of the preferred option to unavoidable future uncertainties. We have applied the ‘best’ and ‘worst’ p ossible outcomes to the primary assumptions that we use in our estimate of

37 the economic benefit of the project.
the economic benefit of the project. The sensitivity analysis of economic benefit generated by the preferred option is based on three scenarios that could impact the scale of econo mic benefits that may be delivered: 31 1. Revenue stream outturn is 20% greater than assumed – this impact on direct jobs created and increases net direct GVA impact from c . £ 22m to c. £26m. 2. Revenue stream outturn is 20% lower than assumed – this decreases net direct GVA impact from c. £22m to c. £17.5m. 2. The a dded value of the R&I and knowledge generation Much of the benefit of DETI arises from the added value and increase in knowledge from the R&D undertaken, and then how this is used and disseminated. Histori cally, it is difficult to put an exact figure on this and there is not a standard metric or assessment methodology which can be used. However, we have reviewed case studies, reports, learning from the NCC, and the experience of other R&D facilities to put a value on this additional knowledge gain. • Innovate UK have published economic assessment data that reports £7 of GVA is generated over 5 years for every £1 invested 23 . This assessment is based on over 12 years of Innovate UK investment in supporting busine sses to develop and commercialise ideas utilising a strong research base and through collaboration with partners. Over the last 12 years Innovate UK has invested over £2.2 billion. This has spanned more than 11,000 projects that have generated up to £16 bi llion in GVA to the UK economy. • In the case of the NCC, the regional funding investment of £17m (Regional Development Agency, ERDF and WECA) has led to further direct investment of £200m into capital, research and innovation at the NCC from industry and Government over the past 8 years – a ratio of circa. 12 :1. (Note: this does not measure impacts and benefits derived indirectly by industry partners). • The European Commission report on the High Value Manufacturing Catapult (January 2017) suggest the retu rn on investment in HVMC is 17:1 24 .

38 • Investments in applied researc
• Investments in applied research at Fraunhofer, a model akin to the HVM Catapult, has resulted in an 18:1 return on investment 25 . To determine the likely wider impacts of DETI we have used the more conservative Innovate U K figure, as this is an evidence base generated over 12 years and reviews thousands of R&D projects. The initial investment in DETI of just over £10m would therefore generate over £70m of GVA (over 5 years). It is also important to note that using the high er European Commission 23 https://www.ukri.org/files/about/dps/i nnovate - uk - dp - 2019/?_ga=2.264764943.1436285967.1575988982 - 1043990023.1574670942 24 https://ec.europa.eu/growth/tools - databases/dem/monito r/sites/default/files/DTM_HVM%20Catapult%20v1.pdf 25 https://www.fraunhofer.de/en/research/range - of - services/impact - of - fraunhofer - research.html 32 figures for the High Value Manufacturing Catapult, this would result in estimated GVA of £170m ( over 5 years). 3. Wider impacts of DETI a. Skills and Workforce D evelopment As highlighted throughout this F ull B usiness C ase , skills and work force training and development is a crucial part of DETI. Working to the WoE Employment and Skills Plan, DETI will support and add value to existing initiatives already operating in the region, including Workforce for the Future and the Careers Hub. Specif ically, DETI will aim to deliver the following: • D evelop two advanced training courses related to aspects of advanced digital engineering, with the aim of upskilling and retraining those in the current workforce where there is an acute shortage of digital s kills. These will be delivered to 60 trainees by means of four pilot training courses. More details can be found in the M&E Plan. • A programme to engage with schools, particularly in less affluent parts of the West of England, will also begin in September 2020 and reach 1,000 children. This will inspire children to consider digital and engineering - related topics and identify the path

39 s needed to ensure more children from s
s needed to ensure more children from such backgrounds secure well paid jobs in engineering and digital businesses. • A digital engineering postgraduate conversion course. This will be a postgraduate programme for technical and non - technical graduates to equip them with the necessary digital skills to fulfil roles in a digital manufacturing environment. b. Further anecdotal i nforma tion on the impact of R&D centres on industry is difficult to establish, but drawing on the NCC experience, two examples illustrate the impact the NCC has made. They include the following case studies: • 2015 press release: “Rolls - Royce to create Composite T echnology Hub in Bristol” 26 “͙The pre - production facility will be developed within an existing building alongside Rolls - Royce’s new facility for carbon - fibre electrical harness rafts, currently being constructed on the Bristol site. Both facilities will be nefit from manufacturing techniques being developed in partnership with the National Composites Centre in Bristol, and research being conducted at the Rolls - Royce University Technology Centre at the University of Bristol. Rolls - Royce’s existing CTi manufac turing technology capability, along with around 40 current employees, will be 26 Rolls - Royce press release 2015 33 transferred from its composites location on the Isle of Wight during 2017, meaning a potential additional 80 roles could be created in Bristol over the next four years͘” DETI will develop as a regional centre of national significance͕ and a core component of WECA’s Global Centre of Innovation Excellence, which will be a vehicle to secure future Government funding. This will ensure that DETI remains of direct benefit to regional industry partners and supports the Local Industrial Strategy. It will s upport cross - sector innovation, inclusive growth and the productivity challenge by: • Securing future OEM and Tier 1 activity in West of England region • Attr acting more composite work

40 • Attracting non - composite work
• Attracting non - composite work • Making a demonstrable impact on the low carbon agenda by its contribution to the design of transport, energy systems and infrastructure • Creating links between academia (UoB, UWE and Bath) by means of engagement with Temple Quarter, Coding Institute, BRL and several DTCs • Greater engagement with the digital tech community via 20 Digital Tech SMEs 2.2 Value for Money Statement The table below summarises the benefits generated by O ption 3b identified th rough the options analysis. Total project cost £10.175m Grant sought £5m Leverage £2m NCC/Catapult, £3.175m private Net Quantified Benefits By the end of Phase 1 (2 years): Direct/Indirect jobs & GVA ➢ Direct/Indirect jobs = 200, equivalent to 302 FTE years (inc. secondees) ➢ Total GVA (with additionality applied) = £22 .32m Added value of the R&D / knowledge gained ➢ Total GVA (after 5 years) = between £70m - £170m (using Innovate UK and European Commission HVMC Report methods, respectively) Skills and W orkforce D evelopment ➢ 1 , 000 children/pupils engaged from harder to reach areas 34 ➢ 2 CPD short courses delivered (by way of 4 pilot courses) to 60 industry employees ➢ Inclusive conversion course ➢ Engagement with regional programmes, such as Workforce for the Fut ure and the Careers Hub Further benefits ➢ 20 new tech SMEs engaged ➢ Delivery of multiple collaborative R&D work packages, responding to industry challenges (completion of at least six separate work packages during the first two years) ➢ Confirming WoE as a re gional centre of national significance ➢ Knowledge transfer back into industry ➢ Ability to bid for substantial follow - on funding and deliver DETI as a 10 - year project ➢ Significant carbon reductions through the production of new, better, more efficient and ligh ter products ➢ Securing and safeguarding more non - composite work attracted to the area ➢ Securing and safeguarding more composite work attracte

41 d to the area ➢ Development of new
d to the area ➢ Development of new methodologies and tools for major advanced manufacturing primes in the region ➢ See L ogic Model for more VfM indicator* £33.69k cost per FTE/year (based on full project cost) £16.85k cost per FTE/year (based on WECA investment only) Table 5 - Value for Money * Benefit compared to total cost including match funding 35 3 Financial Case 3.1 Chi ef Financial Officer S ign - O ff Appendix 7 – DETI Finance Model contains the required letter . 3.2 Scheme Cost Table 5 - Co st Elements (2020 - 2022) below summarises the costs for phase 1 of DETI, these are extracted from the Financial Model ( Appendix 7 – DETI Finance Model ) which gives more details . Salary/overheads rates for research and operational/technical staff are based on current NCC professional and technical grades and overhead rates used in costing industry and Innovate UK projects. The roles require high - level skills and appropriately skilled candidates are in great demand in the marketplace. As an example, the figure used for Research Engineer i s a compound rate, allowing several seniority levels and role descriptions to be accommodated within the Research Engineering capability pool (the standard NCC Research Engineer salary and overhead rate used in 2019 is £92,000). Non - salary and capital budg et figures are based on work package requirements as identified with industry stakeholders. Detailed specifications for capital items will continue to be refined and procurement will take place using the NCC process as described in th is Full Business Case. Cost Heading Total projected eligible 27 expenditure (£’000) Amount to be claimed (£’000) Staff including Overheads Operations Management Team 875 600 Data Infrastructure Team 400 200 Networking/engagement & Communications Team 100 75 Research & Skills Capability Research Engineering 6,500 2,700 Workforce/Skills Development 400 325 Total – Staff + Overheads 8,275 3,900 O

42 perating Costs
perating Costs 27 Up to 15% of expenditure could be spent in linkages/work with specialists outside of the region. 36 Networking/engagement & Communications 150 100 Professional Fees 50 25 IT - HPC + Cloud Access & Lic ences 650 325 Demonstration costs 500 300 Total – Operating costs 1,350 750 Capital Costs Demonstration capital costs 500 300 Premises fitout hardware etc 50 50 Total – Capital costs 550 350 Total 10,175 5,000 Table 5 - Co st Elements (2020 - 2022) Phase 1 of DETI will be hosted within the NCC and partners. The costs associated with fit - out will cover materials and minor works to set up the IT infrastructure. Additional purchases are likely to include minor items such as signa ge. The Demonstration capital equipment costs will cover expenditure associated with data capture within the NCC as a demonstration site for industry. This will mainly cover the procurement of sensors (small 5G Cells and wireless devices), IOT devices such as Gateways, any computer servers required to house data or associated cloud platforms purchases, and new network cabling. The costs associated with the design, installation, commissioning, testing, operation and demonstration of these facilities are capt ured as revenue expenditure. 3.3 Spend Profile and Funding Sources Total Revenue Spend (£000s) 2020/21 2021/22 Total WECA 1,678 2,972 4,650 NCC 845 955 1,800 Industry 955 2,220 3,175 TOTAL 3,478 6,147 9,625 Table 6 - Total Re venue Spend Total Capital Spend (£000s) 2020/21 2021/22 Total WECA 270 80 350 NCC 155 45 200 Industry TOTAL 425 125 550 Table 7 - Total Capital Spend 37 With regard to the match funding, the NCC contribution of £2m is confirmed . Industry contribut ions are as follows: Company Cash (£m) In - kind (mainly software – equivalent to £m) Tota

43 l (£m)
l (£m) Table 8 - Industry financial contributions The NCC, as the applicant for DETI, will not proceed without securing firm commitments (such as purchase orders or firm letters of commitment) from several companies. The first POs may be limited to the first work packages, in which case the NCC will seek some form of commitment that the balance of funding will be forthcoming during the duration of this proposal. The NCC will require substantial industry commitments before it will release its own funding. 38 4 Co mmercial Case 4.1 Procurement The NCC has a team o f four FTE procurement professionals who have significant experience in the public procurement of goods and services. As an example, the NCC has recently undertaken a £26m capital acquisition programme of highly specialised technical equipment, funded by Innovate UK, the WoE LEP and the ISCF. As a Contracting Authority, the U niversity of Bristol (UoB) is governed by Public Contracting Regulations 2015. As a wholly owned subsidiary of the UoB, the NCC i s governed by these regulations. A Formal Procurement Policy and Procedure are in place at the NCC and are available on request. The NCC Procurement Policy states: “In all procurements it is important that the NCC and University of Bristol reputation is pr otected. To this end the [NCC Procurement] policy shall be supported by the organisational structure, competent experienced and trained individuals, processes and procedures. The Procurement process shall be undertaken in a manner that is open and auditabl e͘” “This [Procurement] Policy supports the NCC's aims of working with staff to optimise Value for Money in the procurement of goods, services and works whilst considering risk factors and promoting sustainable procurement. This policy and its supporting procedures are designed to comply with the intent of the UoB procurement processes. The purpose of this Procurement Policy is to drive behaviour towards achieving the procurement objecti

44 ves of the NCC and the EU public sector
ves of the NCC and the EU public sector procurement principles͘” Staf f R ecruitment The majority of DETI project expenditure is on employed research and technical professionals . T he NCC has a highly competent recruitment team and a clear published recruitment policy . The policy states as its key principle: - “ One aspect of the NCC becoming the best place to work is recruiting candidates who are the best fit for its requirements and are committed to the NCC values. This requires a consistent and fair approach to every recruitment process which measures applicants’ suitabilit y against requirements defined in advance of any recruitment process. ” Recruitment procedures are in line with those of the U niversity of Bristol and more details are available on request . The NCC recruits more than 5 0 highly specialis ed technical roles pe r annum and has the capacity to undertake recruit ment at the scale required to deliver DETI . Further, as recruitment has been identified on the critical path of the project (s ee 39 5.3 Programme Plan ), w ork is already underway to define DETI role descriptions , ensuring that recruitment can start as soon as funding is confirmed . Capital E quipment DETI will have to procure a small amount of capital equipment , such as demonstration capital equipment and premises fit - out, as outlined in in section 3.2 . Where a capital purchase is required, the following procurement thresholds will be followed: • Up to £5 , 000 excl . VAT – 1 quotation obtained by end user • £5 , 001 - £25,000 – 3 quotations using the Req uest for Quotation Template and Single Source Waiver if there is no competition • £25,001 - £181,302 - Contract Procurement – Local Tender • Over £181,302 – OJEU tender Collaboration Research Agreement s DETI envisages working with a number of private and academ ic delivery partners with specialist skills including: • IT services (some of which will be covered by the Agreement mentioned below) • Design and E

45 ngineering services (as above) • S
ngineering services (as above) • Specialist capabilities (e.g. cyber, AI, visualisation services); some of this co uld be with ‘tech’ companies in the West of England and beyond͘ A Collaboration Research Agreement will be negotiated with NCC, CFMS and University of West of England (and possibly others) to define the relationship between the partners. Discussions with the lawyers VWV will continue and will be finalised in January 2020. Some of the activities envisaged will be delivered by DETI partners, some by 3rd parties which will be procured in accordance with the University of Bristol/ NCC procurement rules and by OJEU as required. More information on the social, ethical, environmental and economic impact aspects of DETI procurement can be found in 4.3 Social Value Act . 40 4.2 Operation and Financial Viability Phase 1 (initi al two years) As out lined in 1. 1 Project Description and Figure 2 – W ork B reakdown S tructure of DETI , DETI will be delivering a series of industry - led R&I work packages, alon gside skills and workforce development activities, which will form the Core Programme which DETI will focus on in the first two years . This is summarised below : Figure 6 - Enabling Capabilities The six themes above summarise th e sixteen individual Work Packages into fewer, larger and more holistic themes. During the initial two years of DETI, it is anticipated that one project will be delivered under each of the six themes, either in the Core Programme (which generates knowledge accessible by any company) or Collaborative Research and Development (which generates knowledge for multiple companies under a CR&D Agreement). Those companies involved in the W orking G roups will prioritise the W ork P ackage s by means of a voting system s uccessfully used by the NCC with its own Core Programme. Those decisions will be informed by specific industrial challenges. The DETI proposal has attracted over £3m of industry funding to date . We have received 2 5 Letters of Support that can b

46 e found in Appendix 5 - Letters of
e found in Appendix 5 - Letters of Support . We are working with those who have provided Letters of Support to define the exact financial commitment over the next two years and have made the conservative estimate that each organ isation will be contributing £50k . The location of DETI staff and partners will depend to some extent on the nature of industry’s needs and the research - engineering skills required. For the purposes of this bid, it is envisaged that 75% of the year 1 staff (75% of 29 = 22) will be based in the NCC with the other 25% based in delivery partner sites (this may flex as required). 41 In Years 3 onwards, it is envisage d that up to 25% of those working in DET I will be industry and academic secondees. This could amo unt to around 12 people per annum. If a conservative assumption is made, this would contribute, an additional private sector contribution of over £1m. The CEO and Directors of the NCC also have a meeting later this month with one of the largest engineering companies in the world , which has participated in all three DETI Working Groups and we believe there is an opportunity to develop income and strategically important links with another UK region of digital excellence. It is envisaged, WECA and Catapult fun ds will be used for IT purposes and recruitment immediately after a G rant O ffer L etter is issued, signed and returned. Industry funding will be in the form of contributions to specific C ore P rogramme Work Packages, and private work. Approximately £4m of to tal project spend will occur in year 1 (with c. £2m of this being WECA fund i ng) and c. £6m of spend will be in year 2 (with c. £3m of this WECA funding). Phase 2 (after the initial two - years) DETI Phase 1 is not expected to be a standalone project. Altho ugh significant value will be achieved regardless during the first two years of DETI, significant further value of DETI will be in the period beyond the first two years with new tools and processes being adopted by industry to address challenges in each of the t

47 hematic areas. Phase 1 will build a fo
hematic areas. Phase 1 will build a foundation of expertise on which DETI Phase 2 will be built . The Phase 2 business model envisages moving to a model similar to the High Value Manufacturing Catapult based on one third of income from a Catapult gra nt, one third from CR&D programmes and one third from private investment. The Innovate UK Catapult model, which builds on the 50+ year history of the German Government’s Fraunhofer applied research and innovation centres, is that each of the three income s treams will generate 1/3 of the total Centre income on a year - on - year basis. In support of Phase 2 of DETI , a range of public sector funding routes will be pursued , includ ing ISCF Manufacturing Made Smarter Challenge, the ATI , HVM C and the proposed Brunel Challenge . DETI’s long er term financial sustainability after the end of the WECA funding period, will require: • The commitment of industry partners to co - fund the Core Programme W ork P ackages, and to undertake collaborative R&D and private venture work. • The availability of suitable collaborative R&D grant funding opportunities • The ability to attract additional businesses to collaborate , invest and second staff time • The ability to underwrite short - term revenue shortfall , as a Business Unit of the NCC . Th e UK has committed an extra £2 billion for R&D as part of the Industrial Strategy and political parties of all persuasions have stated the importance of supporting the innovation, manufacturing and skills agendas. We believe there will be many opportunitie s to secure the public and private funding needed in accordance with NCC’s existing business model which has 42 traded successfully over the period 2010/11 to date as a not - for - profit RTO . It should be note d that many of the initial DETI industry partners hav e been heavily involved and have made significant investments in the NCC . Whilst the proposal to WECA covers a 2 - year Phase 1 period only, m odelling of costs and income for the period 2020/21 to 20 29

48 /3 0 is shown in Appendix 7 â€
/3 0 is shown in Appendix 7 – DETI Finance Model . The total r evenues and direct costs are estimated to be £ 1 1 7 m over that period, demonstrating financial breakeven and sustainability, however, this level of revenue generation is dependent upon the factors h ighlighted abov e. Dedicated business development resource is built into the plan to support revenue generation and will benefit from NCC ’ s expertise in developing successful proposals for work with industry partners and into a wide variety of Government research and dev elopment funding programmes . It is predicted that DETI will grow to Year 7 with steady state or lower growth operation assumed beyond this point. As discussed in the Economic Case, Option 4 would enable potential future expansion when capacity is reached w ithin the NCC and adjacent space on the Science Park but would require additional costs and associated revenues. Revenue figures have been based on predicted demand, work required to satisfy identified industry needs and likely CR&D funding sources as opp osed to a fully market - tested position. Existing industry commitments and national level policy developments mean that we have a high degree of confidence that industry and public investment is achievable at these levels. Office space allocated to DETI c an be reassigned to other NCC - related activity and staff employed by delivery partners ( including CFMS and UWE) , redeployed or released. Given the predicted high demand for Digital Engineering skills, should this happen , any staff released in this way woul d likely be rapidly employed by local Advanced Engineering companies. Any short - term operating revenue shortfalls will be managed within the mature NCC finance system, under the oversight of the UoB , the ultimate owner of the NCC. This gives additional con fidence in the financial viability of DETI that would not be available if it were to be set up as a standalone start - up facility. 43 4.3 Social Value Act DETI will be established in Phase 1 as a B u siness

49 U nit of t he NCC . As such it will fo
U nit of t he NCC . As such it will follow the same social value standards as the NCC , which strives to be a business that achieves its financial goals while minimising any negative impact on society or the environment. As a government - funded technology centre, it also aspire s to have the social enterprise elements of its work recognised by employees and community. The social enterprise elements of its work include, but are not limited to, helping SMEs to flourish, knowledge transfer for the greater good of UK PLC, and securing Bristol as a go - to hub for mu ltinational industry, such as aerospace, thus maintaining and creating jobs. To achieve value for money (VFM) for the taxpayer, effectively managed procurements, which are correctly planned and executed, are essential. All procurements undertaken at the NC C , and as such at DETI, are not only selected for Value for Money but also a balanced consideration of social, ethical, environmental and economic impacts is undertaken throughout the procurement process. This involves; • Considering a basic life cycle analy sis of products to minimise the adverse effects on the environment resulting directly or indirectly from goods, services and works having a cradle to grave approach • Giving a preference to Fairtrade, or equivalent, and ethically sourced and produced goods, services and works applying international terms as appropriate to minimize reputational risk to the NCC • Working more effectively with diverse and SME suppliers in line with EU Public Procurement Regulations • Ensuring all procurement tenders contain sustaina bility specifications as appropriate to the product or service being procured in line with the industry standards • Ensuring all contracts have fair terms for suppliers to account for supply chain activity, logistics, insurances and payment terms • Comply with all UK and EU statutory regulations and legislation. Procurements are undertaken in a manner than enhances and protects the NCC’s reputation and reflects the NCC mission, vision and values , and this will continue for DETI . In addit

50 ion to the above, the NC C’s 2019 C
ion to the above, the NC C’s 2019 Corporate and Social Responsibilities strategy focused mainly on STEM; charitable giving; H&S; and the environment. It has put in place dedicated recycle points, reduced the amount of single - use plastic cups and bottle, all the printers and photoc opiers now use recycled paper and we’re working with suppliers to reduce their use of single - use plastic also. 44 5 Management Case 5.1 Promoter and Delivery Arrangements The NCC is the promoter and lead partner for this project and is a wholly owned subsidiary of the UoB . Other delivery partners are CFMS and UWE . The NCC is an internationally significant centre of excellence in the development of tools and techniques to design and manufacture advance composite structures. It has knowledge of material s, design and simulation, manufacturing, testing and validations which provides value to UK industry. DETI will operate as a B usiness U nit of the NCC in the two - year period described in this application. It will work with companies of all sizes, in all se ctors and from all parts of the UK. It will work with overseas companies providing value to the UK economy in accordance with prevailing legislation. DETI will not require users to be a member of the NCC. Its services will be charged at market rates . In ye ar 2, the NCC and its partners and key customers will review the ownership and governance model to ensure it is suitable for the long - term delivery of DETI’s services͘ NCC has space, connectivity and administrative functions which will allow DETI to be es tablished and productive quickly. The speed of activity will be a function of recruitment of suitable staff. The NCC has a track record of securing suitable staff. The NCC is part of the HVMC. It is a not - for - profit organisation and has RTO status with Inn ovate UK and with the EU for Horizon 2020 calls. Because of the NCC’s status as a not - for - profit RTO , it cannot manufacture parts or components for commercial sale. The NCC works with companies of all s

51 izes from multi - nationals to one - per
izes from multi - nationals to one - person organisations . Since March 2019, a dedicated SME programme, NCC Connect, has been established to improve its service to smaller companies by offering rapid response and, in some cases, lower costs if the support can be provided by technicians rather than (more expensiv e) design engineers. 45 5.2 Project Governance and Delivery DETI will be established as a Business Unit of the NCC , located on the BBSP and will occupy existing dedicated office accommodation within the NCC building , alongside utilising other existing infr astructure and assets in the region . The NCC is owned and operated by the University of Bristol and is part of the HVM C . Establishing DETI as a Business Unit of the NCC will enable a rapid start - up phase, moving quickly to the recruitment of expert rese arch and workforce development staff and the delivery of research and innovation work - programmes. This will allow rapid maturity and operational efficiency whilst ensuring state - aid compliance, risk assurance, value for money and sustainability. DETI has key project delivery partners, including industry and workstream leads – the Centre for Modelling and Simulation, the University of the West of England, and others. A Collaboration Research Agreement will be negotiated and agreed with relevant partners. Al l key partners have submitted a letter of support pledging match funding in the form of cas h and/or in - kind. DETI will adopt the 3 element ( ‘ Core Programme ’͕ ‘collaborative R&D’ and ‘ industry private venture’ ) research and innovation model delivered by t he NCC as part of the HVM C . DETI will also adopt the NCC operational, risk, q uality, IP, procurement and other operational policies and will use NCC business functions , including Finance and HR. DETI will adopt the same approach to Intellectual Property as the NCC. It will develop know - how and expertise which will be exploited to l help industry engineer higher performance products more quickly and at lo

52 wer cost. The plan does not envisage pat
wer cost. The plan does not envisage patenting or protecting algorithms, data tools and other software related IP. This is because experiences have shown that the cost, speed and disclosure requirements associated with formally protecting IP are barriers to effective exploitation. Companies undertaking fully funded private work at the NCC will have the righ t to protect any foreground IP arising if they choose to do so. DETI will review this issue on a regular basis. As a Business Unit of the NCC, DETI will be delivered and managed by a management team comprising the DETI Business Unit Director, DETI Chief En gineer (or Technical Officer), Programme Manager and leads for Business Development and Operations. The DETI Business Unit Director will report to the Chief Executive of the NCC and to the DETI Steering Board. Should DETI be successfully appointed as nati onal hub or a regional spoke under the Brunel Challenge or similar programmes, it will also report to any required national governance body. 46 Figure 7 - DETI organogram Roles are not yet filled and won’t be until funding has bee n approved. We are, however, continuing at risk as we have identified that the acquisition of these specialist skills is integral to the successful delivery of DETI and sits on the critical path. Job Descriptions have been drafted and adverts are live . Th e DETI Steering Board proposed will include representatives of active industry partners, delivery partners – CFMS & UWE, WoE C ombined A uthority , the UoB , and the C hief E xecutive of the NCC. It will be chaired by an independent industry representative and will report to the NCC Steering Board and to the NCC University Executive Committee, the UoB committee that oversees the NCC, which is chaired by the UoB ’s Chief Operating Officer͘ The Business Unit Director will be responsible for the successful developme nt of DETI, including setting its strategic direction , setting its detailed r esearch and i nnovation strategy in conjunction with the S teering B oard, its i

53 ntegration with the wider UK and interna
ntegration with the wider UK and international landscape, financial performance , and sustainability, g overnance and quality assurance. They will have overall responsibility for the day - to - day operation of DETI, delivery of its research and innovation activity , its annual plan and budget, and securing new business and public sector revenues. 5.3 Programme Plan Shown below are excerpts from the DETI Programme P lan that is being used to drive progress of the over all DETI p roject. This Programme P lan has evolved since the initiation of developing this proposal and it is foreseen that the Programme Plan will, inevitably, evolve over the course of the set - up phase. 47 Figure 8 - Pro gramme Plan Recruitment of staff sits on the critical path and risks have been identified in the Risk Register (see 5.4 Risks, Constraints and Dependencies ) so the project team is best placed to mitigate any chance of hiring challenges. 48 The enabling technologies are secondary to recruitment yet are seen to be part of the same set - up resource that is critical for delivery. The enabling works ar e presented within the procurement /installation WP and will be further defined during the initial set - up/management WP (during the capability and capacity reviews). Figure 9 - Programme Plan WPs The launch of the DETI Core Programme Work Packages has be en planned using a waterfall methodology, and it is foreseen that the enabling technologies will follow a similar linear roll - out. Taking a holistic view up - front and applying an agile approach ensures lessons learned can be integrated into the subsequent WP, all the while making progress. 49 The Programme Plan will be reviewed on a regular basis , applying the Association of Project Management (APM) principles and a holistic view of the project will always be maintained by way of strategic reviews and wider st akeholder engagement . The NCC is a Member of the APM and staff are f

54 ully trained in Project Management .
ully trained in Project Management . The Programme Plan provides a detailed ( indicative ) timeline and milestones have been extracted into the table below. Milestone completion dates Base line Full Business Case Approval Jan 2020 DETI established as NCC Business Unit Apr 2020 Appointment of Business Unit Director Jun 2020 First engagement with schools with Digital Engineering BoxEd Sep 2020 Delivery of at least one deliverable from e ach of the Collective Capability themes Dec 2020 Completion of one Proof of Concept project Mar 2021 Delivery of at least two pilot training courses Jun 2021 Delivery of at least one training courses Sep 2021 CR&D work for Phase 2 secured Dec 2021 Co mpletion of implementation of Phase 1 Mar 2022 Table 9 - Milestone Completion Dates 50 5.4 Risks, Constraints and Dependencies Figure 8 - Risk Register Many risks are mitigated by stakeholder engagement and therefore substan tial work has been carried out to identify key stakeholders, classifying them by influence and interest. More information can be provided upon request. 51 5. 5 Land Acquisition, Planning and other Consents Not applicable . 5.6 Service Diversions Not applicable . 5. 7 Engagement and Consultation The NCC has been consulting with industry, academia and other business partners about DETI related issues since the regional Science and Innovation Audit in 2016. In January 2019, it submitted an EOI into WECA’s Talent I nstitute programme. Because of this, the NCC has organised (and largely funded) two offsite workshops in Bath attended by around 100 representatives from business, academia, colleges and business support organisations such as Business West, SETsquared and Engine Shed. These organisations , and the DETI S teering B oard which has representatives from leading companies and academia, have shaped this proposal. The DETI project development team established three dedicated work streams that have shaped (and will co ntinue to shape) the DETI propos

55 ition, B usiness C ase , W ork P ac
ition, B usiness C ase , W ork P ackages and the DETI model operation al model : a. Digital D e sign b. Digital M anufact uring c. Digital E ngineering S kills and W orkforce D evelopment Each work stream has been meet ing regularly and involve key stakeholders from across the region, including industry (advanced engineering and digital technology companies), the universities of Bath, Bristol and WoE and Further Education Colleges (such as Weston College). Industry engagements is through both large multi - national companies (such as Airbus, Rolls - Royce, GKN and BAE Systems), but also SMEs and scale - up businesses, including supply chains. Each work stream has a dedicated lead: a) Digital Design is led by industry (chaired by CFMS ); b) Digital Manufactu ring is led by the N CC ; c) Digital Engineering Skills and Workforce Development is led by UWE . In addition, wider stakeholder meeting s have been held bi - monthly which regularly ha ve 60+ attendees. Regular engagement is also taking place to position DETI at the national level a range of organisations including the HVM C Digital Lead , Digital Catap u lt, Manufacturing Made Smarter ISCF programme team and the Brunel Challenge project team. The DETI Steering Board is co - chaired by the Chief Executive Officers of WECA and the NCC , and includes advanced engineering industry representation (Airbus, Babcock, Baker Hughes, McLaren, R olls - Royce and former Director HP Labs Bristol ) . The Steering Board met monthly 52 until the Business Case wa s complete d, and this will form the basis for the DETI S teering B oard as it progresses. DETI has a stakeholder management plan, which is regularly updated at the weekly DETI project team meetings. DETI team meetings are attended by the Project Director and Project Manager, with key ind ividuals, such as Work Programme L eads, invited as and when required. T he DETI team are also engaging with the Local Enterprise Partnerships across the region and with BEIS with regards to the possibility of a future regional ‘Made

56 Smarter’ programme shou ld the Nort
Smarter’ programme shou ld the North West pilot be rolled - out across the UK . 5. 8 Project Assurance The principle of DETI and industry requirement s for action on digital engineering ha ve been known for several years, but it is only recently that this has evolved into a sustaina ble and investible proposition. DETI has purposefully been split into two phases: i. Phase 1: a n initial two - year ‘get going’ or launch phase (two years, starting April 2020 at the NCC), which is the subject of this submission to the WECA Investment Fund. In conjunction with industry and academia, this phase will rapidly mobilise the region ’ s existing world - leading infrastructure and assets to undertake research, development and innovation on breakthrough challenges identified by industry, alongside skills an d workforce development. ii. Phase 2: sustainable growth and development and national programme delivery. DETI Phase 1 is revenue - funded and will be utilising existing assets, including at the NCC, this provides a high degree of reassurance that the project ca n progress soon after funding is awarded. T he project milestones indicate realistic timeframes for the recruitment of research engineers and management team m e mbers , building on a core of existing resource available from delivery partners to mobilise the p roject. The extent of development work already undertaken for DETI provides confidence that the milestones outlined can be met. In addition to this, this project has been evaluated according to the NCC’s six stage Gate Review process (details are availabl e on request). This looks at issues such as strategic fit, technical feasibility, cost, risks and sustainability. E xternal consultants (Cushman & Wakefield) have provided advice to the NCC on preparing the Business Case in a Green Book compliant format. C& W are very experienced at writing and asses s ing Green Book compliant Business Cases. For the avoidance of doubt, the Business Case has not been prepared by C&W; the NCC and its partners are responsible for all content. 5.9 Monitoring and E

57 valuation Plan Please see Appendix
valuation Plan Please see Appendix 8 - Logic Model and Evaluation and Monitoring . 53 Appendices Appendix 1 – DETI Digital Engineering Work Programmes 1.1 Digital Design 1.1.1 Themes • Accelerated Design - Achieve r eliable automation within the design process in a manner that can be assured and certified • Agile Design - Provide digital tools & processes that can adapt to an evolving world and changing customer demand to enable optioneering • Knowledge Driven - Design Pr oduct co - creation based on knowledge & data from today’s ecosystem and building the trusted ecosystem of tomorrow • Resilient Design - Ensure safety, security and sustainability in future products with minimum physical testing 1.1.2 Work P ackages ▪ WP1: Generative Design of Systems ▪ Model Based Requirements Capture & Concept Evaluation ▪ Development of Robust Baseline System Architectures for new products ▪ WP2: Design Tool Development ▪ Establish independent experimental hosting environment for Digital Design Studies ▪ Ben chmarking COTS & Open Source Tool Performance & Gap Analysis ▪ WP3: Modelling Operational Data ▪ Embedding real world data into experimental models ▪ Establishment of reserve factors based on real world data ▪ WP4: Data Sources for AI in Design ▪ Development of bias free data sources for Automation of Design ▪ Definition of reliable approaches for AI in design ▪ WP5: Integrating Humans & AI in Design ▪ Capture of Subject Matter Knowledge for Design ▪ Tuning of AI Design Algorithms via Human Intervention ▪ WP6: Cyber Secure D esign ▪ Evaluation of Threat Landscape and Management of Collaborative Design ▪ Development of new analytical methods for threat detection ▪ WP7: Simulation and Regulation ▪ Use of simulation to manage Uncertainty in Design ▪ Development of Liability Metrics for de signers ▪ WP8: Design Ethics 54 ▪ Establish appropriate measures of ethical design performance ▪ Integration into desi

58 gn review processes & evaluation of impa
gn review processes & evaluation of impact on design 1.1.3 Example Work Package Description WP2 - Design Tool Development Theme – Accelerating Design Technical Summary: Adoption of a more ‘open source’ approach to modelling tool development͕ benchmarking performance and crowd sourcing approaches to validation across sectors Steps: 1. Establish Test Cases from Range of Industrial Applications - akin to NASA standard geometries or XRF1 for Airbus within the aerospace domain but for other sectors such as energy, automotive & marine, understanding restrictions of intellectual property & future design challenges 2. Provision of Host Environment for Experimenta tion – provision of a neutral computational environment for secure hosting of data and toolsets with adequate power to conduct a range of complex simulations 3. Independent Performance Review of COTS Solutions from Vendors – in conjunction with end users eva luate the performance of established vendor tools against range of test cases from (1.) establishing strengths/weaknesses 4. Independent Performance Review of Opensource Solutions – in conjunction with end users evaluate the performance of open source tools f rom open market and academia against range of test cases from (1.) establishing strengths/weaknesses 5. Development of Application Map for Users & Performance Needs for Developers – establish areas of uncertainty for available design tools to guide the develo pers and establish future test case needs 6. Dissemination Event and On - going Evaluation – hosting of design tool benchmarking workshops for end users and developers alike to promote evolving industrial needs in coherent, cross sector approach 55 1.2 Digital Man ufacturing 1.2.1 Themes • Full Business Digital Threads – model - based approach, product and process threads • Data Driven Manufacturing – Digital work instructions, process analysis, r eliable p rocesses through i n - p rocess analytics, digitally enabled assurance • Kn owledge Driven Manufacturing

59 – Concurrent engineering, knowl
– Concurrent engineering, knowledge base , secure knowledge /data capture and sharing 1.2.2 W ork P ackages ▪ WP1: Model - based engineering ▪ Digital Manufacturing Instructions (visualization, automated processes) ▪ True model - based engineeri ng : Changes from Design to Manufacturing and vice versa ▪ WP2: Asset monitoring ▪ Digital Asset Management system with enabled anytime access across the supply chain ▪ WP3: Digital Tolerance Management ▪ Geometric data throughout the manufacturing and assembly pro cess. Feedback to Design. Key enabler for adaptive processing ▪ WP4: Smart concessions ▪ Effect of defects → Automatic defect detection → Automated sentencing ▪ WP5: Intelligent processes ▪ Adaptive, closed - cycle process control. Right First Time, Every Time ▪ WP6: Virtual testing ▪ As manufactured (vs. as designed) performance ▪ Smart design for manufacturing (DfM) - Embedded manufacturing know - how ▪ Virtual Testing ▪ WP7: Full life - cycle analysis ▪ Analysis of in - service performance. ▪ Deployment of adaptive technologies to e nable repeatable and robust as - designed operation ▪ WP8: Digital Threads ▪ Full integration of the other W ork P ackages into one single tool. ▪ Development on guidelines on implementation for different tiers (SME, Tier1s, OEMs) 56 ▪ Digital Control Room : Data capturi ng, data storage, data display/streaming and link to data analytics ▪ WP9: Infrastructure: Industrial application of 5G ▪ Ente r prise & s upply chain asset tracking ▪ Edge and distributed control ▪ Concurrent, collaborative engineering 1.2.3 Example Work Package Descript ion WP6: Virtual Testing Theme: Knowledge Driven Manufacturing Technical Summary: Deployment of concurrent engineering of composite components enabled by virtual testing (including reliable process simulations and full integration of the manufacturing da ta into the design process) Steps: 7. As - manufactured performance (mechanical and

60 others): Based on correlated models of
others): Based on correlated models of the manufacturing process, development of method to rapid creation of accurate performance simulations of the as - manufactured components ( vs. nominal) – Collaboration with ACCIS at the University of Bristol (UoB) 8. Smart Design for Manufacturing (DfM): Development of design tools with embedded know - how of the manufacturing processes (geometrical limitations, performance effect of defect s ) – Co llaboration with software vendors 9. Virtual Testing: Fully - automated analysis of design & manufacturing space to accelerate the development of new components – Collaboration with software vendors 57 1.3 Digital Engineering – Enablers & Digital Infrastructure Requ irements • Open access, flexible high - performance computing environment capable of meeting generic engineering need whilst providing segregated space to protect IP • Access to state of the art and next generation computing environments for future proofing new design approaches (͙ exascale͕ quantum) • Secure zones for working, computation and data storage capable of meeting List - X requirement to enable defence work to be conducted* • Flexible data hosting and processing capability covering database architectures, s ecurity, hosting, processing, management and access • Provision of ‘open source’ and vendor design toolsets͕ representative end user data s ources & range of test cases for experimentation, validation and transparency • Advanced communications and sensing techn ology (5G..) for demonstration of product and operational data acquisition • Provision of advanced collaboration, visualisation and immersive technologies to facilitate decision making • Access to full range of engineering, regulatory, psychological, business, legal and ethical skills to ensure viable, sustainable solutions and approaches are developed * Long term DETI objective 1.4 D igital Engineering – Primary Industrial Outcomes • Minimised rework due to poor requirements capture reduces development cost • De si

61 gn risks are mitigated as early as possi
gn risks are mitigated as early as possible • Improved yield and reduced waste in production cycle • Minimising environmental impact (energy, water, landfill... ) • More mature products at EIS and through life operation • Lowering cost of ownership, reducing com mercial risk • Increased efficiency and productivity with the design & test cycle • Reducing the time for product development by optimising physical test • Improved access to simulation tools and data • Increased supply chain opportunities and more reliable digi tal thread • Automation framework for aspects of design established • Creating innovation in future product design • Secure connectivity and data transfer • Improved data acquisition for reliable design and decision making • More diverse, inclusive & resilient work force • Inspiring a new generation of digital engineers drawing on far wider skills and capabilities 58 1.5 Digital E ngineering S kills and Workforce Development 1.5.1 Themes & Indicative Work Packages INSPIRE future generations We already have a rich regional ecosys tem in this area, working with actors across academia, industry and the community (including teachers, parents and children) we will work to understand how we can boost and maximise reach. We will dovetail with the West of England (WoE) Careers Hub and ext end to inspire from the earlier primary school key stages by: • Coordinating & Connecting STEM funding/delivery - To understand the schemes currently working in the area, DETI will produce a heat map showing which companies and industries reach which schools to connect what currently exists, reduce duplication and multiply impact. T he messaging and language around digital engineering careers needs to change. We can reach and inspire future generations and the public with digital engineering focussed activiti es such as: • Digita l BoxEd – BoxED is a unique collection of free , exciting, engaging and hands - on learning activities brought directly to the classroom. Develop

62 ing a digital engineering activity wo
ing a digital engineering activity would enhance the delivery of the National Curriculum at key stages 3, 4 and 5 in the digital engi neering space. The focus of the delivery should be on low participation areas. • Portable D igital T rail – Development of a virt ual digital trail comprising AR and VR activities to inspire D igital E ngineering careers. The activity should be easily reconfigurable for any context (e.g. primary schools, public engagement events etc.) and any age group. TRANSFORM the Education and sk ills landscape NB : All activities within TRANSFORM have the potential for funding through the WECA Workforce for the Future Fund, although currently the fund is not live and no calls have been released; this section is included for completeness. We have ou tstanding education and skills provision in the region. It is important to ensure educational providers are equipped to respond to rapidly changing requirements. To do so we need to map the current portfolio against sector needs, identify and close gaps an d establish a dynamic process for capturing and responding these changing requirements over time. An education and skills advisory board with representation from the universities and the local FE Colleges specific to DETI (e.g. SGS, City of Bristol, Bath, Weston) shall be 59 established to ensure full representation from the sector . T his , in turn , shall report into the WoE Skills Advisory Panel as a sub - group. Industrial requirements shall be elicited through the Digital Design and Manufacturing Working Groups and connections with regional consortia (e.g. WEAF) and local enterprise networks and government agencies. Activities: • DETI taxonomy of digital skills and associated job roles shall be developed with industry to ensure clarity of language and role requir ements. • Digital E ngineering taught course provision shall be mapped and amended to incorporate the digital taxonomy. Lecturers and teaching staff shall be upskilled in this new language through CPD activity. • DETI D igital E ngineering needs assessment t o

63 identify business needs and link up opp
identify business needs and link up opportunities in funding / skills delivery New courses co - created with industrial partners: • Post 16 (L3) C onversion C ourse - To enable those with Specific Learning Difficulties (SpLD) and those Not in Education Emplo yment or Training (NEET) to achieve their potential (focus upon students not achieving GCSE English/Maths � grade 4. Facilitate entry into routes below, through the WoE Institute of Technology (IoT) . Funded through ESFA. • Post 16 – 18 DETI D igital E ngin eering A pprenticeship - Spanning levels 3 - 5, facilitating entry into digital careers from a variety of disciplines. Apprentices participate in a series of structured placements to provide a full digital engineering experience throughout the supply chain o f their employer and the product lifecycle. Delivered through IoT • Digital E ngineering degree apprenticeship (undergraduate) - Develop and trailblaze a Digital Engineering Apprenticeship standard; a 3 - 4 - year programme to develop ‘technical’ and ‘liquid skil ls’͕ including disruptive technology exposure and cross sectoral industrial placements͘ Targeting a wide sectoral audience focusing on the ‘digital journey’ and ‘future technology’͘ Aspiration is to pool levy funding (NB Apprenticeship levy brokerage sco ping activity requires engagement and action from policy makers) and students with potential from less recognised schools/areas offered apprenticeship places. • Digital E ngineering degree apprenticeship (postgraduate ) – Develop a postgraduate programme for g raduates from both technical and non - technical background to equip them with the necessary digital skills to fulfil roles in a digital manufacturing environment. This would either be aligned with an existing DA standard (e.g. Engineering Competence or Emb edded Systems Engineer) or DETI could trailblaze new standard. • Top - up for existing apprentice workforce - Develop a DETI digital engineering 12 - month programme for existing industry apprentices to ensure they enter cross sectorial industry

64 equipped with a ppropriate level of dig
equipped with a ppropriate level of digital literacy INNOVATE approach to Workforce Development 60 DETI will raise awareness of the impact of the digital revolution and its implications for the regional workforce, through a layered learning approach providing awareness work shops of different topics based on requirements of companies. Best practice and impact metrics shall be developed to capture feedback regarding content, mode of delivery, etc. and to monitor impact (short to long term). • Digital E ngineering D iversity D e monstrator P rogramme - DETI shall develop and deliver a disruptive pilot ‘demonstrator’ programme which brings together a truly diverse cohort of talent and challenges the stereotypes and myths that digital = engineering/technical only. The programme wil l incorporate all elements of ‘digital’ and ‘sustainability’ and include industrial sponsored real - world challenge projects. This shall be used as a showcase for digital careers and diversity leading to innovation. • CPD/short courses in Digital E ngineering – DETI will collaboratively develop and deliver a suite of non - credit bearing short courses (including bite sized learning 1 - 2 hours). This will comprise novel teaching pedagogies which utilise blended and digital learning, delivered through regional stak eholders. They will be designed for e xperienced design and manufacturing engineers and experienced non - engineers from any sector transitioning into manufacturing • D igital Leadership - Many leaders don’t have a basic understanding of what ‘digital’ means fo r their business͕ a similar mission to the ‘Productivity Challenge’ in the Local Industrial Strategy (LIS) . It is proposed that DETI would host/provide thought leadership to: ➢ Enable leaders to make informed business decisions about the risks and opportuni ties of ‘digital’ to their organisations ➢ Understand the importance of inclusivity and diversity for creativity and innovation ➢ Enable a step change in the way companies adopt and adapt to the digital revolution, embodied in

65 a cultural shift in organisation al lead
a cultural shift in organisation al leadership and significant shift in change - management tactics. ➢ Provide insights/case studies of best practice • Redefining current role profiles for a digital future - Pilot activity to map current profiles to digital future roles (e.g. the manufacturi ng engineer of the future) and define f uture role requirements (job description/experience/training/qualifications). 61 Appendix 2 - DET I Use Case s 2.1. Engineering Design Process – Winglet Use Case Desired Benefit: Clean Growth (Fue l Saving) Tod▪y’s S olution : Fixed Winglets Actual Development Process Duration: 13 years • 2000 - Concept (repeat cycles) • 2006 – Design (repeat cycles) • 2010 – Manufacture • 2011 - Test • 2013 – In service Issues : • Siloed Engineering Approach • De - risked by (mul tiple) c ollaborative f unding projects • Intensive p hysical concept t est ing ( w ind t unnel & p hysical p rototyp ing ) • Sequential d esign for m anufacture • Extensive p hysical t est p hase for f inal d esign & c ertification Actual Impact : 300,000 kg fuel saving per aircr aft p.a. (=$400K) 62 Tomorrow ’ s Solution – C onfigurable W inglets inspired by the wingtip feathers of the eagle How would capabilities developed by DETI be applied ? • AI - Enabled fully Model - Based m ultidisciplinary d esign o ptimisation Automatically sear ching design space for optimized and innovative solutions Removing unnecessary iteration between engineering functions to save time • Automated Sizing of Complex Structural Components Reducing design effort and standardising selected structural elements to reduce cost Integrating manufacturing constraints from the outset reducing development time and effort • Process s imulation and a nalysis to o ptimise the m anufacture of ‘f irst p arts ’ Understanding of drivers for quality to optimize process control (sensors) Automated industrial planning for r

66 amp up/down • Focused p hysical
amp up/down • Focused p hysical t est on f irst a rticle Simulation defined test campaign focused on highest levels of uncertainty Fully digital test & evaluation campaign in conjunction with regulators • Transfer of k nowledge a nd p rocesses b etween s ectors Providing additionality between sectors (a erospace into wind turbine & marine hull structures ) , a ccelerating wider adoption Impact - Process Duration: 7 years (from 13) • 20 22 - Concept • 20 23 – Design • 20 24 – Manufacture 63 • 20 2 5 - T est • 20 2 6 – In service If th e DETI approach had been available in 2000 : - The i mpact would have been : • 300,000 kg fuel saving per a ircraft p.a. (=$400K) starting 5 years earlier • Greatly reduced engineering resource and test campaigns = cost + productivity • Environmental Opportunity: Reduction of 1 00 ,000,000 tonnes of CO 2 emissions over 5 years 64 2.2. Digital Engineering Opportunity – Wind Energy Use Case Desired Benefit: Cheaper and more reliable clean energy Predicted Process Design Duration: 8 years • Year 1 – Concept study (repeat cycles) • Year 2 - 7 – Design, Prototype Manufacture & Testing (5 - year repeat cycle) • Year 8 – Serial Production and i n - service o peration Issues: • Design, manufacture and operation of ~400m diameter Turbine • Need to keep current farm sur face area • Offshore wind energy work going overseas P redicted i mpact : grow offshore wind turbine development in the UK and reduce carbon pollution What would DETI do differently? • Accelerated Design Simulation - led design optimisation study platforms incorpo rating cross - sector knowledge (i.e. aerospace design manufacturing and material solutions) Fully digital test and evaluation campaign in conjunction with regulators • Optimisation of location and wind farm layout/architecture Advanced AI modelling, CFD and p erformance simulation techniques capitalising on meteorological (Met

67 Office) data and analysis techniques
Office) data and analysis techniques • Highly efficient and reliable manufacturing, operation and maintenance Advanced sensor and monitoring system to enable Inservice twinning capitalising on Made Smarter campaign knowledge Digital Engineering Process Duration: 5 years • Year 1 - Concept • Year 2 – Design 65 • Year 3 – Manufacture • Year 4 - Test • Year 5 – In service Impact: • Offshore wind Turbines in service 3 years earlier • Greatly reduced engineeri ng resource and test campaigns = cost + productivity • 45% more power output than existing largest turbine design • Environmental Opportunity: reduction of CO 2 emissions from 8 years 66 Appendix 3 - DETI - related Regional Research Stre ngths The centre for D igital E ngineering T echnology & I nnovation (DETI) brings together partners spanning academic research excellence (Universities of Bath, Bristol and West of England - WoE ), RTOs (N ational C omposites C entre - NCC , the C entre for Modelli ng and Simulation - CFMS ) and leading industry across advanced engineering sectors (Airbus, Rolls Royce, Babcock, GE Baker Hughes, McLaren and others) all focussed on the integration of research outcomes, digital innovation and industrial requirements to a ccelerate the dig ital transformation of engineering - ' Digital Engineering ', as highlighted in the regional S cience and I nnovation A udit and prioritised in the L ocal I ndustrial S trategy (LIS) . Partner Universities demonstrate research excellence in advance d engineering and an array of digital technologies including High Performance Computing, cloud, AI & machine learning, quantum, cybersecurity, communications (including 5G) and visualisation, including haptics, AR/VR & robotics. They have a long history of collaboration with industry and success in securing collaborative industry programmes of relevance to DETI: - • Seven of the 14 recently announced Centres of Doctoral training in partner Universities are in DETI related, including two in AI.

68 • Research Englan d have recently
• Research Englan d have recently invested more than £60m in the Institute of Advanced Automotive Propulsion Systems (Bath University) and the Bristol Digital Futures Institute (University of Bristol) through the Research Partnership Investment Fund (RPIF). • The NCC is one o f the most capable digital manufacturing facilities in the world and has attracted over £200m of public and private investment since its opening in 2010. Social science researchers from partnership Universities with expertise in innovation, digital transfo rmation and change, will help address the challenge of furthering digital transformation and change in engineering organisations. As not - for - profit RTOs, the CFMS and the NCC work in the gap between industry and academia , with advanced applied engineering simulation, modelling and Digital Engineering expertise partnering with regional businesses. The NCC also has extensive competencies in verification and manufacture , collaborating with the H igh V alue M anufacturing Catapult (HVMC) , which has recognised the need to accelerate Digital Engineering . DETI consortium members are embedded into the regional research ecosystem through membership of the NCC and active research programmes; ongoing dialogue confirms the urgency with which Digital Engineering must be add ressed to support the region's future growth. The region is home to a nationally significant cluster of innovative ‘tech' start - ups and scale ups (Tech Nation), developing breakthrough and disruptive digital technologies for several sectors and application s and in turn establishing a new supply chain of digital capabilities in the region. DETI will engage with (and support the growth of) smaller, highly specialised digital tech companies, with the support of world leading tech sector incubator SETsquared (U niversities of Bristol & Bath) and the Future Space University Enterprise Zone (UWE). There is a strong regional appetite for collaborative research and innovation, the region was third in total Innovate UK grant value behind London and Coventry (2012 - 18). 67 DETI - Related

69 Regional Research Assets • The £40
Regional Research Assets • The £40m A irbus Wing Integration Centre at Filto n is designed to deliver the next generation of aircraft wing, landing gear and fuel systems designs • The NCC on the BBSP brings together dynamic companie s and enterprisi ng academics to develop new technologies for the design and rapid manufacture of high - quality composite products. Established as an RTO by the University of Bristol, and one of the seven centres that makes up the HVM C, founding members include Airbus, GKN Aerospace, Leonardo and Rolls - Royce. It has brought �£250M of investment to the region. • The Bristol Composites Institute (formerly ACCIS) at the University of Bristol combines cutting edge fundamental science with strong industrial links for composites e xploitation and technology transfer. Together with the NCC it forms the biggest cluster of composites researchers outside China • CFMS on the Bristol & Bath Science Park is an independent͕ not‐for‐profit specialist RTO in high value design capability, under pinned by advanced modelling and simulation and high - performance computing. • Bath University host the Powertrain & Vehicle Research Centre (PVRC) which builds on 50 years of research excellence focused on improving the systems efficiency. It partners with local companies and Ford UK, Jaguar Land Rover, Lotus Engineering, TATA and McLaren Automotive, Ricardo, and many more nationally. • In 2021 Bath University will open the Institute for Advanced Automotive Propulsion Systems on the Bristol and Bath Science Park, a £60M investment to develop the next generation of vehicle power systems. • Bath University, ranked 5th in the UK in 2018 by The Times for Aeronautical & Manufacturing Engineering, hosts the Advanced Design & Manufacturing @ Bath Research Centre and the Institute of Mathematical Innovation specialising in complex data analysis, mathematical modelling and mac hine learning algorithms • University of Bristol hosts the Engineering Systems and Design Research Group who create new processes and methods for d esign management, methods f

70 or computer - based design and optimisa
or computer - based design and optimisation, approaches for managing manufacturing information and knowledge discovery, and techniques for modelling machine - material interaction, and digital - physical twinning together and the Desig n and Manufacturing Futures Laboratory which is researching and creating the tools and technologies of tomorrow, providing game changing capabilities for the design, manufacture, operation and disposal of next generation products and machines. • The Jean Go lding Institute is the central hub for data science and data - intensive research at the University of Bristol. It acts as the main point of contact between the university and The Alan Turing Institute͕ the UK’s national institute for data science and AI͕ o f which the University is a partner. • The new £100m Bristol Digital Futures Institute͕ to be opened at the University of Bristol’s new Temple Quarter Enterprise Campus, is creating a unique research ecosystem where world - class engineers, computer scientists , social and behavioural scientists, psychologists and legal scholars can work shoulder to shoulder with partners from industry, social enterprises and civic organisations exploring the opportunities and challenges posed by new digital technologies 68 • The Sma rt Internet Lab at the University of Bristol is a leading hub for internet research which addresses grand societal and industrial challenges. It performs cutting edge research on optical and wireless communications and is a world leader in 5G convergence research. Its 5GUK Test Network is the UKs first urban end - to - end testbed and its work has been central to Bristol being recognised as a world leading smart city. For example, Bristol was the winner of the Global Smart City Award (Hudges’ Choice) at the G SMA’s 2018 Global Mobile Awards. • ‘Isambard’ is the largest ARM processor - based high - performance computing system in the world outside of the U.S. It was designed by the GW4 Alliance of Universities, led by Bristol, in partnership with Cray and the Met Of fice and is purpose - built for running the most challeng

71 ing supercomputing, data analytics and A
ing supercomputing, data analytics and AI workloads • Seven of the 14 new EPSRC Centres for Doctoral Training announced at the region’s universities in early 2019 map onto DETI. This includes the Centre s for Doctoral Training in in ‘Accountable Responsible and Transparent AI’͕ ‘Interactive Artificial Intelligence’͕ ‘Composites Engineerin g and Manufacturing’͕ ‘Computational Statistics and Data Science’͕ ‘Future Autonomous Robotic Systems’͕ ‘Future Innovat ion in Non - Destructive Testing’ and ‘Quantum Engineering’͘ • Bristol Robotics Laboratory (BRL) is the most comprehensive academic centre for multi - disciplinary robotics research in the UK. It is a collaborative partnership between the UWE and the University of Bristol, hosting over 200 academics, researchers and industry practitioners. • Innovation Aerospace (iAero) is a partnership of aeros pace stakeholders, supported by leading companies including Airbus, GE Aviation, GKN Aerospace, Leonardo Helicopters an d Rolls - Royce, working with the public sector, universities and the regional trade association, WEAF. This unique South West programme wi ll ensure that SMEs and the wider supply chain have access to future industry technology and skills requirements. So urces: SW & SEW SIA, Aerospace SW, Consortium Web Sites QUESTION 2 RESEARCH 2014 Research Excellence Framework Approximately 250 academic staff at partner Universities are involved in Advanced Engineering (AE) research. Since 2008 the AE academic commun ity have trained over 750 PhD students and 90% of its research activity was classified as world - leading or internationally excellent (4* & 3*, respectively) in the REF2014. AE Researchers are associated with from 10 Units of Assessment (UoA) as defined by the REF, with the majority associated in UoA 12 - Aeronautical, Mechanical, Chemical and Manufacturing Engineer ing and UoA 15 - General Engineering. 21 REF2014 Impact Case Stories are directly associated with academics from this theme, pointing to excell ence in; • Design and manufacture processes for automotive and aer

72 ospace: e.g. composite structures,
ospace: e.g. composite structures, • Light - weighting and performance enhancement of advanced structures, • Decarbonisation through improvements in engine fuel efficiency 69 • Modelling, simulat ion and testing of new materials and structures applicable across AAE Competitiveness in University Research and Innovation Funding In total in the decade 2009 to 2018 Innovate UK and EPSRC have funded over 450 advanced engineering projects in the Sout h West of England and invested more than £330m, with m uch of this investment being focused on consortium member companies and Universities. Between 2012 and 2018 the WoE was third in total Innovate UK grant value behind London and Coventry. The Universitie s in the region out - perform the Russell Group and the UK on citation impact, publishing in high impact journals and co - publishing with industry in the subject area of composites͘ The University of Bath’s publications on wing aerodynamics and the University of Bristol’s publications on laminates and composite materials are more than twice as likely to be highly cited and 1.5 times more likely to be published in high impact journals than other articles in this topic area. Of the total Research Council fundi ng received over the period 2010 – 2015 by consortium Universities, the majority was from the EPSRC (43%, £443.1m). The consortium Universities are nationally competitive in drawing down funding from the EPSRC and NERC, particularly in the fields of Genera l Engineering, Computer Science and Informatics, Earth Systems and Environmental Sciences, and Physics. Sources: SW & SEW SIA, Gateway to Research, PWC WoE Economic Connectivity Report (2019) 70 Appendix 4 - Options Appraisal Op tions Framework Approach The longlisted options to be reviewed against the following criteria and the results are presented in Table 7 - Long - List Appraisal . using a RAG matrix (Red = discounted, Amber = possible/car ry forward and Green = preferred way forward) with one preferred way forward identified for each criterion . • Scope – what â

73 €¢ Service Solution – how •
€¢ Service Solution – how • Service Delivery – who • Service implementation – when • Funding – scale and sources Criteria Option1 Do Nothing Opt ion2 Do Something Option3a Do More Option3b Do More Option3c Do More Option 4 Do Maximum Scope – what 5 5 3 3 3 1 Service Solution – how 5 5 5 1 3 3 Service Delivery – who 5 5 5 1 3 3 Service Implementation – when N/A 3 3 1 5 5 Funding – scale & sources N/A 3 3 1 5 5 Total Score N/A 21 19 7 19 17 Ranking C/F 5 3 - C/F 1 - C/F 4 2 - C/F Table 7 - Long - List Appraisal Appraisal of Shortlisted options From the appraisal of the longlist options four shortlisted options were iden tified and carried forward for more detailed assessment including the required ‘Do Nothing/Business as Usual’ option (1), option 3a and the preferred way forward - option 3b. A SWOT analysis was undertaken for each of these options, together with an asses sment against their qualitative benefits and risk factors. Cost/Benefit Analysis Each of the shortlisted options was reviewed, and a ranking order identified. The following criteria were then applied: 1. the impact of scale of deployment of DETI (cost) on achieving the long term objectives that have the most significant impact on direct and indirect job creation, retention and industry productivity regionally (long term benefits), and 2. developing DETI in Phase 1 so that it plays a major role in deliverin g future national programmes as a regional centre of national importance, thus generating further revenue growth and delivering direct and indirect regional GVA. Using these criteria, both 3b and 4 71 rank highest, with 3a ranked 3 rd as it will not have enou gh scale to build capability and competences at a level that would mean that DETI has significant national presence or is able attract national level funding or future industry investment at scale. The BAU option offers no opportunity to create significan t regional GV

74 A impact or to participate nationally in
A impact or to participate nationally in a coherent way going forward and was ranked 4th. Option 4 was ranked below option 3b when the costs of delivering a comprehensive incubation service were factored in. Whilst this is of value and leads to some additional job creation it is considerably costlier to deliver and local high - quality delivery services are already available regionally, meaning additional jobs will be created under 3b in the Growth Phase. This element would not significantly enh ance the long - term potential of DETI as a regional centre of national significance over 3b. Option 4 was therefore ranked second below option 3b. Qualitative Benefits A series of qualitative benefits criteria were developed, and a weighting factor selected for each. Criteria Weighting Description Collaborative, translational research & innovation 40 The ability to deliver the collaborative, translational research environment at the scale required to address the challenges in the co - developed DETI Core Programme Skills & Workforce Development 20 The ability of the project to address the challenge of reskilling the existing workforce, ensuring that FE and HE programmes support industry needs and that today’s school students recognize the digital engineer as a role to aspire to. Demonstration of outcomes and impacts 30 Project demonstrates Digital Engineering research and innovation outcomes at industrial scale and in an integrated holistic way to support rapid adoption by industry partners Res earch and Innovation quality & reputation 30 The potential of the project to deliver outcomes at world leading levels to enhance regional reputation, anchor regional industry partners and attract future research talent and funding Total 100 Table 8 - Qualitative Benefits Criteria and Weighting Each shortlisted option was given a score out of 10 against these criteria and weighting factors were then applied to each of the scores to give a total weighted score and a ranking for eac h shortlisted option. Criteria Max Score Option 1 Score Option 3a

75 Score Option 3b Score Optio
Score Option 3b Score Option 4 Score Collaborative & translational research & innovation 400 2 80 7 280 9 360 9 360 72 Skills & Workforce Development 200 2 60 5 100 8 160 8 160 Demonstration of outputs and impacts 300 2 60 3 90 8 240 8 240 R&I Quality and Reputation 300 3 90 4 120 9 270 9 270 Total 1200 290 590 1030 1030 Ranking 4 3 1= 1= Table 9 - Qualitative Benefits by Option This process identifies Option 3b and 4 as the equally preferred ways forward against the qualitative benefits criteria used͘ Option 1 ‘Do Nothing’ is lowest as it demonstrates significantly lower available qualitative benefits. Risk Factors Sh ortlisted options were evaluated against the following risk factors; • Funding Risk 1 – insufficient public investment is secured to establish the required DETI C ore P rogramme and capabilities • Funding Risk 2 – Industry co - investment funding commitments are n ot realized • Demand Risk – There is insufficient capability and capacity to accommodate industry demand at appropriate scale • Operational and quality risk – Problems occur in delivery of research and innovation outcomes and workforce development as a level r equired by industry partners • Delivery risk – time/budget overruns impact against the project’s timely implementation Each option was appraised against the risk factors identified, determining the likelihood of the risk crystallising, the impact it would th en have on each option and on the benefits identified. The table below shows the RAG rating given for each option against these risks and the overall ranking for each option. Risk Option 1 Do Nothing Option 3a Option 3b Option 4 Funding 1 – Public 3 3 1 5 Funding 2 – Industry 5 3 1 1 Future Demand 5 1 1 3 Operational 5 3 1 5 Delivery to time & budget 1 1 1 3 Total Score

76 19 11 4 17 Ranking 4 2 1
19 11 4 17 Ranking 4 2 1 3 Table 10 - Risk Assessment by Option 73 Option 1 - the ‘do nothing’ option - sh ows the highest risk profile, showing that this is not a viable option given risks in limited industry funding commitments and inability to deal with demand. Operational risks including attracting and retaining Digital Engineering expertise are also high for this option. Option 3b is the preferred option carrying least risk. Preferred Option Option 1 Option 3a Option 3b Option 4 Cost/Benefit 4 3 1 2 Qualitative Benefits 4 3 1 = 1 = Risk Factors 4 2 1 3 Rank 4 3 1 2 Table 11 - Option Appraisal Ranking Option 3b has been identified as the preferred option as it scores well across all the criteria used and represents best value for money. It also allows for the delivery of Option 4 at a later point when DETI is operational and su ccess demonstrated. 74 Appendix 5 - Letters of Support 75 Appendix 6 - State Aid 76 Appendix 7 – DETI Finance Model 7.1. Chief Finance Officer Sign - O ff 77 7.2. Financial Model In dicative Staff Costs Salary + Overhead Description of role(s) 2020 - 21 (£'000) 2021 - 22 (£'000) 2022 - 23 (£'000) 2023 - 24 (£'000) 2024 - 25 (£'000) 2025 - 26 (£'000) 2026 - 27 (£'000) 2027 - 28 (£'000) 2028 - 29 (£'000) 2029 - 30 (£'000) Total 202 0 - 30 (£'000) Ind. Salary + Ohd Year 1 2 3 4 5 6 7 8 9 10 Research Team (Delivery P artners) 2000 3700 5500 6000 7600 8000 8400 8800 8800 8800 67600 100 Research Team (Industry Secondees) 300 500 1500 1700 2000 2500 3000 3500 3500 3500 22000 100 Rese arch Team (Academic) 0 0 0 0 0 0 0 0 0 0 0 Workforce Development 200 200 300 400 400 400 400 500 500 500 3800 100 Management Team 375 500 625 625 625 625 625 625 625 625 5875 125 IT Infrastructur

77 e Management 100 300 300 300 3
e Management 100 300 300 300 300 300 300 300 300 300 280 0 100 Communication & Events Team 0 100 100 100 100 100 100 100 100 100 900 50 Total Staff + Ohd 2975 5300 8325 9125 11025 11925 12825 13825 13825 13825 102975 By Phase Phase 1 Phase 2 - Growth Phase 2 - Steady state To tal Staff + Ohd 8275 53225 41475 102975 Non - Staff (from WS 2 below ) 1900 7750 4000 13650 Total - Staff + N on - Staff 10175 60975 45475 116625 78 Indicative Non - Staff Costs Description Cost type Notes 2020 - 21 (£'000) 2021 - 22 (£'000) 2022 - 23 (£'000) 2023 - 24 (£'000) 2024 - 25 (£'000) 2025 - 26 (£'000) 2026 - 27 (£'000) 2027 - 28 (£'000) 2028 - 29 (£'000) 2029 - 30 (£'000) Total 2020 - 30 (£'000) Year 1 2 3 4 5 6 7 8 9 10 Marketing, Communications & Networking Costs Act ivities and events Industry networks/ Inclusion activity/ Knowledge Sharing 50 100 150 150 200 200 200 200 200 200 1650 Professional Fees Professional fees (legal, consultancy, etc.) Legal/IP 50 50 Property Fit Out costs Non - capital pro perty costs NCC modifications & fitout 50 50 50 150 IT HPC/Cloud Access & Licences IT costs Digital Engineering enabling s oft ware & services 250 400 650 700 800 800 800 800 800 800 6800 Demonstration costs IT costs Core P rogramme W ork P acka ges 500 500 1000 1000 1000 1000 5000 By Phase Phase 1 Phase 2 - Growth Phase 2 Steady state Total 900 1000 1800 1900 1000 2000 1050 2000 1000 1000 13650 1900 7750 4000 79 Indicative DETI Staffing Model Staff numbe rs

78 Description of rol
Description of role(s) Expected start month 2020 - 21 (FTE) 2021 - 22 (FTE) 2022 - 23 (FTE) 2023 - 24 (FTE) 2024 - 25 (FTE) 2025 - 26 (FTE) 2026 - 27 (FTE) 2027 - 28 (FTE) 2028 - 29 (FTE) 2029 - 30 (FTE) Year 1 2 3 4 5 6 7 8 9 10 Research Team (D elivery partners) Apr - 20 20.0 37.0 55.0 60.0 76.0 80.0 84.0 88.0 88.0 88.0 Research Team (Industry Secondees) Apr - 20 3.0 5.0 15.0 17.0 20.0 25.0 30.0 35.0 35.0 35.0 Research Team (Academic) Apr - 21 4.0 4.0 6.0 6.0 8.0 8.0 10.0 10.0 10.0 Workforce Devel opment Apr - 20 2.0 2.0 3.0 4.0 4.0 4.0 4.0 5.0 5.0 5.0 Management Team Apr - 20 3.0 4.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 IT Infrastructure Management Apr - 20 1.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 Communication & Events Team Apr - 21 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Total inc. secondees 29 57 87 97 116 127 136 148 148 148 Total employed by delivery partners inc NCC 26 48 68 74 90 94 98 103 103 103 80 Phase 1 – Indicative Sources of Funds Year 1 Year 2 Total WECA 1965 303 4 4999 NCC 1000 1000 2000 Industry 910 2266 3176 Total/yr £ 3,875 £ 6,300 £ 10,175 81 Appendix 8 - Logic Model and Evaluation and Monitoring Scheme: Centre for Digital Engineering Technolog y & Innovation (DETI) 1 Scheme B ackground and C ontext The Centre for DETI will bring together a suite of Digital Engineering skills and capabilities to the West of England (WoE) region. With the National Composites Centre (NCC) as the lead partner and using delivery partners (such as the Centre for Modelling Simulation – CFMS – and the Universit ies of the West of England, Bristol and Bath, DETI will deliver advanced Digital Engineering solutions to industry, helping them to de

79 velop the design, manufacture an d oper
velop the design, manufacture an d operation of their products. DETI’s work will be carried out predominantly through a DETI Core Programme and this will be funded by a total of £10.175m over two years. A breakdown of this spend can be found below. 2020/21 2021/22 WECA 1,965 3,0 35 N CC (Catapult/Gov) 1,000 1,000 Industry 910 2, 2 66 TOTAL 3 , 8 75 6 , 3 00 Table 12 - Total Revenue Spend (£000s) The Core Programme will function in a similar way to that of the NCC, whereby industrial partners come together to define a programme of work that is made up of discrete Work Packages. DETI will work as a Business Unit within the NCC initially and the DETI Work Packages have already been outlined as part of the development of this scheme (see Appendix 1 – DETI Digital Engineering Work Programmes ). As DETI progresses through the completion of the Core Programme W ork P ackages, the knowledge and skills of Digital Engineering will develop and grow. A stream of activity is foreseen specific ally focused on this capability development and it is envisaged that, over time, other projects (namely nationally strategic projects, such as Tempest, Joule, Type 31 and the Digital Wing of Tomorrow) will utilise the capabilities and expertise of DETI . Th e key outputs of the initial two - year phase of DETI, as funded by this scheme, are the creation and safeguarding of jobs, ultimately increasing GVA in the WECA region. The key milestones that will be achieved in the first two years are outlined below and t hese will be reported on each quarter within the Highlight Reports: 82 Milestone completion dates Baseline Full Business Case Approval Jan 2020 DETI established as NCC Business Unit Apr 2020 Appointment of Business Unit Director Jun 2020 First engag ement with schools with Digital Engineering BoxEd Sep 2020 Delivery of at least one deliverable from each of the Enabling Capabilities themes Dec 2020 Completion of one Proof of Concept project Mar 2021 Delivery of at least two pilot training courses J un 2021 Delivery of at least one

80 training course Sep 2021 CR&D work f
training course Sep 2021 CR&D work for Phase 2 secured Dec 2021 Completion of implementation of Phase 1 Mar 2022 Table 13 - Milestone Completion Dates 2. Logic Model The Logic M odel below define s the inputs, outputs and the wider strategic impact , which is potentially more significant than the simple metrics might suggest. Context and Rationale The region is recognised as a leading area for advanced engineering and digital technology development as identified in the 2016 SW England & SE Wales Science and Innovation Audit and the 2019 Local Industrial Strategy (LIS) . In DETI a unique opportunity exists to bring together these strengths to address these challenges, harness the potential of digital technology to deliver a step change in productivity in the design and pre - production phases of complex system and product developments. This will ensure our regional advanced manufacturing industries remain competitive in a global marketplace. DETI meets the LIS objectives, the GCIE and has the potential to be a key early deliverable. It will provide a flagship project through which the WoE can tangibly demonstrate leadership in the delivery of the LIS. DETI will work with partners to equip the South West as the centre for Digital Engineering. To achieve this mission, it is foreseen that staff will be hosted at the NCC but may also be physically located at and/or seconded from delivery partners (such as CFMS and UWE). DETI also aligns very closely with na tional initiatives, such as Made Smarter and the Brunel Challenge. The engagement and activity outlining Core Programme W ork P ackages with key stakeholders and delivery partners helped to reinforce the message that engineering firms in the South West need a step change to, not only strengthen the region͕ but secure the region’s place as a national player in the UK engineering landscape͘ T his bid meets the goals of the Strategic Economic Plan in several ways. It addresses the productivity gap by means of c ross - sectoral innovation and contribute to inclusive growth. It will support the aerospace/ advanced en

81 gineering priority sector and this will
gineering priority sector and this will have a wider impact on the creative and professional services sectors which have converging digital requirements. The project will create and safeguard high quality jobs. The work will take place primarily in the Bristol and Bath Science Park in the Emersons Green Enterprise Area but will be linked to other parts of WECA and with companies and researchers across the UK. 83 Objectives Resources/ Input Activities Outputs Direct & Indirect Outcomes Impact The aims/ objectives of the scheme are: To achieve the set of activities to fulfil these aims/ objectives we need the following: To address the aims and objectives we will accomplish the following activities: We expect that, once accomplished these activities will produce the following deliverables: We expect that if accomplished these outputs will lead to the following change: We expect that if acc omplished these activities will lead to the following changes in service, organisation or community: • Establish DETI in the two - year Phase 1 period as a Business Unit of the NCC • Established governance and operational capabilities at the NCC together wit h delivery partners CFMS and UWE as Work Programme Leads. • Facility for staff to be collocated • Specification of specialist Digital Engineering skills required • People • Funding to cover activity • Application of established governance and operational capabil ities at the NCC • Interim appointment of DETI BUD and other management positions • DETI established as a Business Unit of the NCC • This approach will enable DETI to establish itself quickly. • Organisation ready to deliver digital engineering R&D, leading to e conomic benefits • Establish DETI as a regional centre of national significance in the WoE • £5m from WECA • £2m from High Value Manufacturing Catapult (HVMC), via NCC • £3m commitment from industry • Specialist Digital Engineering skills • Benefit in Kind • Indus trial s

82 upport • Existing R&D facilities
upport • Existing R&D facilities/assets where DETI will be based • Delivering a suite of digital engineering R&D work packages • Definition of Capability Groups • Recruit DETI engineers and delivery team • Colocation/secondment of academic staff to DETI • Secondment of industry partner staff to DETI • Utilisation of Delivery Partner resources/services • Producing a long - term strategy and implementation programme • Create links between academia (UoB, UWE and Bath) by means of engagement with Temple Quarter, Co ding Institute, BRL and several DTCs • Commercial work for businesses • Upgrading of facilities where DETI will be based • An open - access suite of advanced R&D Digital Engineering skills • Development of new methodologies and tools for major advanced manufactu ring primes in the region • DETI brand and website • 20 tech SMEs engaged with DETI • Future OEM and Tier 1 activity secured in West of England region • Securing and safeguarding more non - composite work attracted to the area • Creation of 57 new high value job s in DETI • Delivery of one project from each of the Enabling Capabilities themes (x6), generating knowledge accessible by any company • Delivery of Collaborative R&D, generating knowledge for multiple companies under an R&D Agreement • Securing and safeguard ing more composite work attracted to the area • Development and commercialisation of new digital tools by WoE companies • Adoption of new methodologies and tools in major advanced manufacturing primes in the region • Advanced Engineering and digital tech se ctor businesses across the WoE region working together to deliver Digital Engineering solutions • Deliver step change in Digital Engineering adoption in the WoE • Creation of 143 new high value jobs outside of DETI • Support the WoE LIS • More R&D intensive bu sinesses attracted to the WoE, increasing opportunities for inward investment and engagement with local HEIs â

83 €¢ Captured and disseminated knowledge
€¢ Captured and disseminated knowledge to industry from DETI (via secondees) • Captured and disseminated knowledge to academia from DETI (via secondee s) • Knowledge generated for company - specific endeavours • Support cross - sector innovation, inclusive growth and the productivity challenge • Economic growth within the WoE region of between £70m and £170m over 5 years • Attract further investment into the reg ion through private and CR&D projects utilising DETI capabilities • Improved productivity in the complex product design cycle in major advanced engineering sectors • Secure the future of complex product development in the UK • Upskill the region’s advanced engineering workforce in Digital Engineering • Networked and engaged with leading UK and international HEIs and specialist digital research organisations • Highly skilled secondees returning to host companies and Universities as leading experts • £22.32m ne t additional indirect and direct GVA during Phase 1 of the programme from jobs • Creation of new Digital Engineering companies in the region • Growth of existing companies in the region • Creation and safeguarding of indirect jobs during, and following, initi al phase 1 • Enhanced innovation in the region • Make a demonstrable impact on the low carbon agenda by its contribution to the design of transport, energy systems and infrastructure • Greater engagement with the digital tech community • Agree and deliver a Di gital Engineering skills plan for the WoE • Skills - specific stakeholder list/plan • Specialist Digital Engineering skills • Industrial support • Funding to cover activity • Build upon, and add value to, existing skills initiatives already being delivered in the region such as the WECA - led Workforce for the Future programme and by FE Colleges (including the SWIFT Institute of Technology) and Universities • Digital Engineering Skills Plan for the WoE • Skills Plan Trailblazer for other LIS domains in th

84 e WoE • Increased number of Skil
e WoE • Increased number of Skills Programmes for the West of England • Enhanced Skills Programmes for the West of England • Holistic, comprehensive approach to Digital Engineering skills • WoE regional reputation for Digital Engineering skills • WoE regional reputation for ski lls planning • Upskill the region’s advanced engineering workforce in Digital Engineering • WoE recognised as go - to region for Digital Engineering 84 • Networked and engaged with leading UK and international HEIs and specialist digital research organisations • Im prove the attractiveness of Digital Engineering to students and the delivery of Digital Engineering skills training to the existing workforce • Skills - specific stakeholder list/plan • Industrial support • Funding to cover activity • Engagement with STEM partners • Development of Digital Engineering courses • Design, make and buy elements for Digital Engineering BoxEd • New skill development programmes, with adoption both in graduate level University programmes and industry training programmes – 2 CPD short courses de livered (by way of 4 pilots) to 60 industry employees • Up to 1,000 pupils engaged in Digital Engineering courses/activities • Conversion Course • Delivery readiness of 2 x Digital Engineering courses • Dissemination of Digital Engineering as a domain • Enablem ent of those with specific learning difficulties (SpLD) and Not in Education Employment or Training (NEET) to achieve their potential • Facilitated entry into subsequent Digital Engineering skills routes (e.g. Apprenticeships which will be developed through the WoE Institute of Technology (IoT), funded through ESFA). • WoE recognised as go - to region for Digital Engineering • Uptake of STEM training and careers • Step - change in the number of young people / leaners considering digital engineering as a career • Attr active Digital Engineering training courses • Upskilling of existing industrial workforc

85 e • School children inspired by
e • School children inspired by Digital Engineering • Help regional and national companies secure work on major new engineering programmes such as those identified in sec tion 1.1 • Stakeholder list/plan • Industrial support • Collaboration from similar centres • Funding to cover activity • Engagement with industry • Delivery of a portfolio of applied research and demonstration projects, • Work secured for regional and national com panies • Application of new digital technologies and methodologies to industry - specific challenges • Stronger, more resilient regional and national companies • More competitive regional and national companies • Creation and safeguarding of indirect jobs during, and following, initial phase 1 • Develop a sustainable business model which is not dependent on public sector revenue funding beyond the two - year start - up period • Stakeholder list • Industrial support • Funding to cover activity (see above) • Securing private securing industrial investment and public and private funding by means of collaborative R&D programmes (from the ATI, Innovate UK, ISCFs and EU programmes, etc.) • Effective DETI marketing/communication • Sustainable business model for DETI Phase 2 • Ongoing d evelopment and commercialisation of new digital tools by WoE companies • Ongoing adoption of new methodologies and tools in major advanced manufacturing primes in the region • Advanced Engineering and digital tech sector businesses across the WoE region con tinuing to work together to deliver Digital Engineering solutions • Ongoing support of the WoE LIS and solid foundation for GCIE • Step - change in the number of SMEs innovating • Significant carbon reductions through the production of new, better, more efficien t and lighter products Phase 2 • Develop new tools and methods yielding 25% reduction in advanced engineering product development by 2023 and 50% by 2029 • Public funding from SIPF/Brunel/Made Smarter/oth

86 er R&I funding channels to pump prime
er R&I funding channels to pump prime programme deliv ery • Contract and collaborative R&D funding from sources such as ATI, MoD and Automotive Council • Continued delivery of a portfolio of applied research and demonstration projects, applying new digital technologies and methodo logies to industry - specific challenges. • Further development and commercialisation of new digital tools by West WoE companies, and further afield • New tools and methods • Securing sustainability of an open access suite of advanced R&D Digital Engineering skil ls • 212 new high value jobs after 10 years • Economic growth in the West of England 85 • Establish DETI as national centre for Digital Engineering • Increased industry investment • New skill development programmes, with adoption both in graduate level University programmes and indus try in - house training programmes • Improved productivity in the complex product design cycle in major advanced engineering sectors • Serve businesses across the UK and globally • Further economic growth within the WoE region • Enhanced inward investment • N etworked with leading international HEIs • Step - change in the number of SMEs innovating • Significant carbon reductions through the production of new, better, more efficient and lighter products Table 14 - Logic Model 86 3. Evaluation D e sign and M ethodologies The NCC has experience of monitoring, evaluating and reporting on projects at a European and national research programme level, as well as projects funded by the Local Economic Partnership and, i f the DETI Business Case and investm ent are approved, the NCC will work with WECA to refine and confirm the DETI Monitoring and Evaluation Plan. A Programme Manager will be assigned to oversee the progress of DETI, using key Project Management principles (in line with the Association of Proj ect Management). The Programme Plan will be reviewed on a regular basis, applying the Association of Project Management (APM) pr

87 inciples and a holistic view of the proj
inciples and a holistic view of the project will always be maintained by way of strategic reviews and wider stakeholder engageme nt. The NCC is a Member of the APM and all staff are fully qualified in the Project Management methodologies. The DETI Steering Board was formed during the development of the Business Case, bringing together leading industry figures, local government and a cademia. This Steering Board will continue throughout the project. It has an explicit oversee the monitoring and evaluation of DETI, in line with the objectives, outputs and outcomes as outlined in the Logic Model above. Formative reports will be produced and reviewed by the Board on a quarterly basis during the project delivery phase, to assess progress against outputs and to initiate and monitor any required changes. This quarterly reporting channel will stay in place for the duration of the two - year phas e 1 project, with a review on frequency being undertaken during the early stages of the project. Required monitoring reports to funding bodies and other responsible bodies and stakeholders, including WECA, the HVMC and the University of Bristol (UoB) will be prepared using information and data gathered for, and reported to, the DETI Steering Board, and on timescales as required by each organisation. Key monitoring questions that will be reported on include the following: • What key progress has been made ag ainst each of the Core Programme Work Packages? • What key progress has been made against each of the project milestones? • How much research and development investment has been made, in addition to the DETI Core Programme? • How many companies have collaborated with DETI? • How many jobs have been created? • How many workforce training modules have been developed? • How many people have benefited from the workforce training modules? • What key progress has been made against the Equality and Diversity Plan outcomes? In addition to the regular monitoring reports, at the end of the two - year project launch phase, an independent evaluation will be undertaken by an independent specialist

88 procured by the NCC. 87
procured by the NCC. 87 A detailed Evaluation Plan will be designed and executed by the ex ternal specialist. The Evaluation Process will, at a minimum, address the following questions : • What would have happened if DETI did not exist? • How many direct jobs have been created? • How many related indirect jobs were created in industry partners ? • How muc h direct and indirect GVA can be identified as an outcome of the initial two - year phase of DETI? • How successful has DETI been in securing future revenue commitments for Phase 2 from industry, CR&D programmes and core public funding sources, including Catap ult and any national programme funding, such as the Brunel Challenge? • Has DETI achieved its primary strategic objective of being of national significance and other qualitative outcomes outlined in the Business Case? Through a structured interview process with a sample of industrial partners and companies benefiting from DETI, the evaluation process will look to identify current and anticipated company - level productivity improvements and will gather information on the industrial partners assessment of the r esearch and innovation capability developed by DETI. 4. Data R equirements 4.1 For schemes fully or part - funded via the Local Growth Fund only Not applicable. 4.2 Data C ollection M ethods Business Units at the NCC use the well - established methods for data collecti on at the NCC and DETI, as it will be constituted as an NCC Business Unit, will mirror this. Project financial data will be recorded on the NCC Enterprise Resource Planning (ERP) system, and industry partner relationship management centralised within the N CC CRM software, Workbooks. The NC C ERP - HR system will record direct jobs created within the NCC, and all delivery partners will be required to confirm they have appropriate systems in place to record required data and to report on a regular basis on requi red metrics , including financial performance, direct DETI jobs created , etc. 4.3 Data C ollection and E stablishing the B aseline Data collection

89 related to DETI objectives and outputs
related to DETI objectives and outputs will be carried out quarterly, to coincide with reporting to the Steering Boa rd. Baseline data is assumed to be zero in that all activity will be additional to that currently undertaken by the NCC and delivery partners. 88 Metric (inc. t arget) Unit Frequency Data source (& r esponsibility) Baseline date Reporting to? Inputs £5m from WECA £ Quarterly NCC ERP/Finance System, Delivery Partner finance submissions – NCC Chief Finance Officer From full approval Quarterly Monitoring report; Steering Board , Final Evaluation Report £2m from High Value Manufacturing Catapult (HVMC ), via NCC £3m commitment from industry Benefit in Kind Outputs 2 Training Modules developed No. of modules Annual Work Programme Records – Programme Manager From full approval Steering Board & Stakeholders - Annual Monitoring Repor ts, Final Evaluation Report 60 training course attendees No. of course attendees Quarterly Work Programme Records – Programme Manager From creation of first training pilot Steering Board & Stakeholders – Quarterly Monitoring Reports, Final Evaluation Repo rt 1,000 pupils engaged in Digital Engineering courses/activities No. of pupils Quarterly Work Programme Records – Programme Manager From full approval Steering Board & Stakeholders – Quarterly Monitoring Reports, Final Evaluation Report 1 Conversion Cou rse No. of courses Annual Work Programme Records – Programme Manager From full approval Steering Board & Stakeholders – Annual Monitoring Reports, Final Evaluation Report 57 net additional jobs by 2022 No. of FTE s Quarterly NCC ERP / HR system and delivery partner reporting – Programme Manager From full approval Quarterly Monitoring report; Steering Board , Final Evaluation Report 20 Digital Tech SMEs collaborating with DETI No. of companies Annual NCC ERP/ CRM, Project records – Programme Manager From full a pproval Steering Board - Annual Monitoring Reports, Final Evaluation Report

90 Outcomes and impacts Delivery
Outcomes and impacts Delivery readiness of 2 x Digital Engineering courses No. of courses Upon project completion Work Programme Records – Programme Manager Data collection f rom full approval Reporting upon project completion Final Evaluation Report £ 22.32 m net direct and indirect GVA delivered £ Calculation based on agreed formula & FTE job years – Programme Manager, confirmed by Evaluation Specialist Steering Board - Annu al Monitoring Reports, Final Evaluation Report Core Programme progressed; high quality knowledge created n/a Peer Assessment & Report s Steering Board & Stakeholders - Interim and Final Report Core Programme progressed; knowledge created & transferred n/a Evaluation interviews with industry partners – Evaluation Specialist Steering Board & Stakeholders – Final Evaluation Report Further funding secured for DETI Phase 2 £, Source Quarterly NCC project recording system (ERP), Delivery Partners report ing – Programme Manager From Q5 Steering Board & Stakeholders – Quarterly Reports, Final Evaluation Report See Logic Model for further non - metric outcomes and impacts Table 15 - Inputs, Outputs and Impacts 89 5 Delivery P lan Act ivity Timescale Monitoring Data model Q 1 Delivery Partner data systems review Within 1 month of delivery partner confirmed Monitoring Report Quarterly (starting Q2 ) Mid - Term Project Progress and Monitoring Report Q4 Evaluation Specialist procured Q4 Evaluation Start Q8 Final Phase 1 Project Progress and Monitoring Report Q9 End of Project Delivery Report to WECA Q9 Evaluation Report Q10 Three - Year Post - Project Evaluation Review Three years following project closure Table 16 - Monitoring and Evaluation Delivery Plan 6 Resourcing and Governance As highlighted in Table 16 - Monitoring and Evaluation Delivery Plan , data collection for monitoring and project progress reporting will be un dertaken by an in - house Programme Manager (1FTE, c£60k p.a.) appointed to DETI as a member of the m

91 anagement team. This individual will ow
anagement team. This individual will own and maintain the Project Monitoring Plan. An external Evaluation Specialist will be commissioned by the NCC to desi gn the detailed Project Evaluation Plan (c. £30k) and to undertake the delivery of the Evaluation exercise, both reviewing data captured by the project and undertaking primary research to gather further empirical information. The Evaluation Specialist will also review and report on the quality and effectiveness of data capture for project monitoring purposes. This work will be funded by the NCC and delivery partners and is outside of the project budget. The three - year post - project Evaluation review will be undertaken as part of Phase 2 of DETI. The details of the Business Unit Director responsible for the plan and the Evaluation Specialist appointed will be released to WECA on their appointment. Governance of the Monitoring and Evaluation processes will rest with the DETI Steering Board, which includes key stakeholders. Risk management and quality issues will be reviewed by the Steering Board at each meeting. DETI p roject r isks are owned by the DETI Business Unit Director . 7 Dissemination As with previous Pro ject Monitoring and Evaluation exercises it has undertaken, the NCC and its delivery partners will use the reports and information produced to improve future performance in the delivery of research and innovation projects͘ A ‘Lessons Learned’ project log will be used to capture learning from the project, and this will also be used to 90 inform future approaches. Annual Monitoring reports, the f inal Evaluation R eport will be circulated to stakeholders and will be made available as appropriate to related nation al research and innovation programme leads, to the HVM C and UKRI/Innovate UK , and to policy makers at regional (WECA) and national level (BEIS/DCMS). 91 Appendix 9 - Equality and Diversity Challenges faced by DETI The Campaign fo r Science and Engineering (CaSE) has reported that: • BME men are 28% less likely to work in STEM than white men • Only 9% of those in non - medical STEM

92 careers are women • Only 8% of Br
careers are women • Only 8% of British engineers and 4% of engineering apprentices are women • Disabled STEM st udents are 57% less likely to take up postgraduate STEM study than non - disabled students1 Further͕ The Equality and Human Rights Commission (EHRC) have reported that͕ “The underrepresentation of girls in STEM subjects was recognised as a problem needing u rgent attention ͙ with high - profile reviews leading to publication of the Roberts Review (Roberts, 2002) and the Greenfield Report (Peters et al., 2002). The Roberts Review highlighted the shortage of girls taking STEM subjects at A - level and HE and the ne ed for courses to ‘inspire and interest pupils͕ particularly girls’ (Roberts͕ 2002:3)͘ The review called for increased participation in STEM by women and under - represented ethnic minority groups, particularly in schools͙͘” 28 The EHRC have also highlighted a ctions that might be taken to address under - representation͕ “͙slow progress in attracting women to careers in STEM with reference to continued lack of information, few visible role models and mentors and little hands on experience͘ Alongside these are ‘ste reotyping of careers advice and lack of knowledge and experience for girls and young women in non - traditional areas of work’ (Peters et al͕͘ 2002:36)͘” In their report of May 2014͕ CaSE go on to state that͕ “A more diverse science͕ technology͕ engineering and mathematics (STEM) workforce is not simply desirable in terms of equality, but necessary if we are to maximise individual opportunity and meet economic need”͘ 28 Equality and Human Rights Commission, Research report 71: Jo Hutchinson, Heather Rolfe, Nicki Moore, Simon Bysshe and Kieran Bentley; University of Derby and National Institute of Economic and Social Research – “All things being equal? Equality an d diversity in careers education͕ information͕ advice and guidance” http://www.equalityhumanrights.com/sites/default/files/documents/researc h/71_careers_information.pdf 92 Appendix 10 - Discrimin