BUSINESS PLAN DVD Rental . BUSINESS PLAN Business plan Carl Ind BAF Diploma.
2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging...
Transcript of 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging...
![Page 1: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/1.jpg)
albertainnovates.ca
1
2017-18TRANSITIONALBUSINESSPLANJUNE2017
albertainnovates.ca
![Page 2: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/2.jpg)
albertainnovates.ca
2
TableofContents
ExecutiveSummary 3
I.Mandate 4
II.OperatingContext 6
III.LegacyAreas,OutcomesandPerformanceIndicators 12
IV.TransitionalCorporateGoals 14
V.Budget 20
VI.Risks 22
![Page 3: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/3.jpg)
albertainnovates.ca
3
ExecutiveSummarySETTINGTHESTAGEInnovationiskeytoeconomicgrowthandjobcreationandwillbeincreasinglyimportanttoAlberta’scompetitivenessintheglobaleconomy.Withthecurrentscopeandvelocityofdisruptionandstrongcompetitivepressuresfromglobalization,Alberta’sfutureprosperitywillincreasinglycomefromnotonlyourabundantnaturalresources,butalsothetalentandentrepreneurshipofourpeople.Thecontinuationoftheoften-coinedphrase“TheAlbertaAdvantageisatrisk,”withtheprovincefacingtremendouschallenges:
• $10billionprovincialroyaltygap
• Globalinnovationandskillsrace
• TheneedtodemonstrateClimateLeadership
• $20billionandgrowingannualexpenditureforAlbertahealthcare.
Theprovince’sresearchandinnovationsystemhasacriticalroletoplayinaddressingthesechallenges.AlbertaInnovates(AI)viewschallengesasopportunitiesandwillembracetheseopportunitiestocreateaneweraofprosperityforAlberta.
Itwasinresponsetothischanginglandscape,thatthefourAlbertaInnovatesCorporations–BioSolutions,EnergyandtheEnvironment,HealthSolutions,andTechnologyFutures–wereconsolidatedonNovember1,2016.Thisconsolidationoffersanopportunitytoenablegreaterefficienciesandeffectiveness–notmerelyincostsavingsbutalsoincreasesthepotentialtotransferknowledgefromonesectortoanotherandstreamlinesupportservicesbyprovidingasinglepointofentrytoinnovators.
AlbertaInnovates’RoleTobegloballycompetitiveandtocreateanAlbertaeconomythatisbuilttolast,AI–astheprovince’slargestresearchandinnovationagency–mustbethecatalystofanenvironmentwhereinvention,innovationandindustrythrive.Fortheprovincetosucceed,thebuildingblocksofinnovation–academia,industry,entrepreneurs,andgovernment–mustworkinlockstepwitheachother.OnlythroughacoordinatedapproachcanAlbertameettheurgencyofthechallengesitfacestoday.AI’sdisciplined,market-orientedapproachandlong-standingrelationshipswitheachofthesepartners,enablestheCorporationtoplayapivotalroleintheProvince’sresearchandinnovationsystem;ensuringAlbertaachieveseconomic,healthandsocialbenefitsfromthegovernment’sinvestmentinresearchandinnovation.
LookingAheadThisfirstfiscalyearisayearoftransitionforournewlyformedCorporation–ayearwherewemustfocusonbuildingastrongfoundation.Withnearly600employeesintenlocationsfromthefourlegacycorporations–eachwithauniqueculture,historicaloperatingmodelandmandate–integrationwillbeneithersimplenorstraightforward,butiscriticaltooperatingasasingle,homogenousentity.
![Page 4: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/4.jpg)
albertainnovates.ca
4
Apriorityareaistoimproveourexternalcommunicationswithourstakeholders.First,wewillworkwithourpartnerstobuildAI’slong-termstrategicplan.Thiscollectiveapproachtostrategicplanningisfoundedonthebeliefthatbyfocusingonmutuallydesiredoutcomes,Albertawillachieveitsdesiredoutcomeswithgreaterspeedandsuccess.Second,AIwillfostergreaterawarenessofthesuccessesandoutcomesachievedbyAIanditspartners.AIrealizestheonusisontheCorporationtodemonstratevaluetoourstakeholders,andworkisunderwaytobettertrackandcommunicateoutcomes.
Whilethiscriticalworkisunderway,wewillactivelyadvanceourchangejourneybysettingdownfivedistinctcorporategoals:
1. Nimbleandresponsive
2. Resourceallocationtiedtooutcomes
3. Innovationculture
4. Coordinatedsingleentity
5. CoalitionBuilding
Theprocessofoperationalizingthesegoalswillbetransparent,clearandrealistic–andwillinvolveallAIemployees.Regularmonitoringandreportingtooursoleshareholder–theGovernmentofAlberta–demonstratesAI’scommitmenttotransparencyandaccountability.
Theincreasingpaceofinnovationandtheimpactofdisruptivetechnologiesandprocessesonsustainablesuccessisclear:itisnolongerenoughtosimplykeepup.Togetherthefoundationwelaytodaywillpayoffmanytimesover,inyearstocome.
I.MandateIntroductionOneofthekeyachievementsofthenewAIandtheMinistryofEconomicDevelopmentandTrade(EDT)isthedevelopmentofanewCorporateVision,mandateandvaluesforthesingleconsolidatedentity.Thesewereestablishedcollaborativelytoreflectacommonunderstandingoftherespectiveroles,responsibilitiesandaccountabilitiesbetweenEDTandtheCorporation.Theyalsorespondtotheneedforanewapproachtosupportandenhanceinnovationcapacityandopportunitiesintheprovince,andreflectthepartnershipmindsetAIwillpursuegoingforward.
CorporationVisionThevisionofAlbertaInnovatesistobeindisputablyrecognizedasaleader–provincially,nationallyandinternationally–incatalyzingresearchandinnovationinAlberta.
MandateTheobjectiveoftheCorporationistosupportresearchandinnovationactivitiesalignedwithGovernmentofAlbertaprioritiesintheareassuchasagriculture,forestry,energy,health,environmentandothers.Inaddition,fosteringthedevelopmentandgrowthofnewandexistingindustriesthroughresearchandinnovationisanothermajorobjectiveoftheCorporation.
![Page 5: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/5.jpg)
albertainnovates.ca
5
ThemandateoftheCorporationis:
• OutcomesOriented:accelerateprogressinresearchandinnovationwithafocusoncommercialization,whichisparticularlyalignedwithAlberta’sworld-classstrengths,contributingtotangibleoutcomesthatoffervaluetoAlbertans,suchasamorediversifiedeconomy,enhancedenvironmentalperformanceandahealthierpopulation.
• User-DrivenandResponsive:takearesponsive,market/user-drivenapproachthatenablesAlberta’sinnovatorsacrosscurrentandemergingsectorsbyprovidingasingle-entrypointtomeetarangeofneedssuchas:
o Network/partnersacrosstheresearchandinnovationcontinuum;
o Funders;
o Business/technicalexpertiseandappliedresearchservicestode-riskandaccelerateresearchandinnovationtothenextlevelforimpactfulapplication;and
o BuildingcapacityofAlberta’snextgenerationofinnovators.
• Collaborative:catalyzecoordinatedapproachestodriveoutcomesthroughpartnershipsacrossallordersofgovernment,theprivatesector(particularlyentrepreneurs),academiaandotherresearchandinnovationstakeholders.
• Strategic:advisetheGovernmentofAlbertaonitspolicydevelopment,bringinginnovationleadership,foresightandexpertisetotheGovernmentofAlberta’soverarchingsystemstrategyforresearchandinnovationandprograms,andleveragestheCorporation’sstrategicpartnershipsacrossstakeholdersandmultipleGovernmentofAlbertaministries.
• TransparentandAccountable:demonstrateandcommunicatethetangiblevalueofpublicinvestmentininnovationtoAlbertans,viasuccessstoriesandperformancemeasures.
CorporateValues
![Page 6: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/6.jpg)
albertainnovates.ca
6
II.OperatingContextAchievingValuethroughConsolidationTheNovember1,2016consolidationofthefourpredecessorAIcorporations–BioSolutions,EnergyandtheEnvironmentSolutions,HealthSolutions,andTechnologyFutures–wasdrivenbytheneedtobringfocusandimprovedemonstrableoutcomesfromtheprovinces’investmentininnovation.Theconsolidationofferstheopportunitytoleveragecross-sectoralexpertise,formerlyembeddedineachcorporation,andtoachievesharedoutcomesmoreefficiently.ThisbenefitstheCorporationandourpartnersbybetterleveragingresearchandinnovationcapacityandovertimewillstreamlineaccesstofundingandothersupportservicesbyprovidingasinglepointofentrytoinnovators.
CorporatemergersoftenfallshortofexpectationsandAI’suniquecomplexitiescontributetothechallenge.Withnearly600employeesin10locationsacrossfourcities–aswellastwosubsidiariesprovidingappliedresearchservicestoindustry,legacycultures,operatingmodelsandmandates–integrationactivities,andculturaltransformationwillbeachallengingtask.Thisbusinessplanwasdevelopedwiththepragmaticunderstandingthatfullintegrationofthefourlegacycorporationswilltakeconsiderableeffortandfocus.
Whiletheconsolidationprogresses,programsandserviceswillcontinuetosupportourstakeholders.AIleadershipwillworkwithkeypartnerstodevelopastrategicplantoofferlongertermguidanceonpriorityareas.TheBoardandseniormanagementwillalsoensureourpeople,processesandtechnologiessupporttheefficientexecutionofAlbertaInnovates’mandate.
RenewedFocusonPartnershipsInnovationcannothappeninisolation.ThisisanareawheretheprovincialinnovationsystemwillneedtoimproveforrealprogressinthediversificationandelevationofAlberta’seconomytooccur.Theurgencyofourchallengesrequirethatthebuildingblocksofinnovation–academia,industry,entrepreneurs,andgovernment–workinlockstepwitheachothertodevelopuser-pull,market-orientedsolutions.
Elementshavebeenidentifiedtosupportthisrevitalizeddirection.AIwillseektounderstandtheneedsandobjectivesofourclients,clarifyingrolesofthevariousplayersinAlberta’sinnovationecosystem,andsetclearinvestmentobjectivesandtargets.
TheCorporation’sabilitytocombineseedfundingfornewinitiativesandsustainedfundingforthoseprogramsshowingresults,withbusinessandtechnicalexpertiseandaccesstocollaborativeopportunities,isacriticaldifferentiatingfactorforAI.Thelong-standingrelationshipswehavewithourpartnersisakeystrengththatenhancesthevaluewedelivertoourclients.ToincreasetheamountofinvestmentintoAlberta,AIregularlyleveragesitsseedfundingprogramswithourrelationshipsinthepublicandprivatesector.Forexample,ourEntrepreneurialInvestmentsdivisionfocusesonprovidingmentorship,linkagesanddirectfundingtoAlbertaentrepreneurs.Onesuchlinkageisconnectingentrepreneurswithourfederalcounterpart,theNationalResearchCouncilanditsIndustrialResearchAssistanceProgram(IRAP).Overatwo-yeartimeframe,AIandNRCfunded35projectsintheprovince,whereAIcontributedapproximately$4MandIRAPcontributedapproximately$5.5Mtohighpotentialentrepreneursintheprovince.
![Page 7: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/7.jpg)
albertainnovates.ca
7
Throughthissamedivision,EntrepreneurialInvestments,forevery$1fundedbytheCorporation,Albertaentrepreneursraised$9.50ofadditionalfollow-onfunding,81percentofwhichcamefromtheprivatesector.
Inadditiontoindividualpartnerships,multidisciplinarycoalitionsinvolvingindustry,government,post-secondaryinstitutions,andserviceprovidersareincreasinglyimportanttosuccessfulinnovation.ThesecoalitionsprovideAIwithaccesstomorediverseandrobustresearchcapacity,significantlyenhancingitsabilitytoachievetheambitiousgoalsofitsmandate.
AI’spartnershipsarefoundedontheprinciplethatourpartners’successisoursuccess.Helpingourpartnersachievethatsuccess.Thisbeginswithunderstandingtheirstrategicgoalsandaligningoureffortstothoseneeds.Byfocusingonmutually-desiredoutcomes,weachievethestrategicobjectivesofbothourpartnersandtheprovince.TheserelationshipsareakeycomponentofAI’sstrategytocreateamoreresilientanddiversifiedeconomy.AI’suniquemixofexpertise,seedfundingandabilitytobuildlinkagesandconnectionsacrossdiversestakeholdergroupsisAI’svaluepropositiontoourpartners.
Keepingpaceinthe21stCenturyIncreasingly,innovationisaglobalracewherethelandscapeandopportunitiesarechangingatanexponentialpace.AnewgenerationofICTtechnologiesinareassuchasbigdata,quantumcomputing,awaveofinventionsinadvancedmaterials,health,aswellasnewbusinessmodels,arelayingthefoundationforprofoundtransformations.Thereisanurgencytoadjusttothesenewrealities.Theprovincehasreachedaninflectionpointwhereweeitherbecomegloballeadersininnovationorriskgettingoutpacedbyourpeers.Astheprovincefaceschallenges,suchasthe$10Bprovincialroyaltygapandtheneedtomateriallyreduceitscarbonintensity,Albertacannotleadthisracebyrelyingsolelyonournaturalresources.Theprovincemustutilizethefullpotentialofthetalentandentrepreneurshipofitspeopleandinstitutions.
![Page 8: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/8.jpg)
albertainnovates.ca
8
ThenewAlbertaInnovateshasinheritedaproudhistoryofachievement,butmustevolvetomeetcurrentchallengesandopportunities:10yearsago,thefivemostvaluablecompaniesontheStandardandPoor(S&P)500wereExxonMobil,GeneralElectric,Microsoft,AT&T,andProctor&Gamble.TodaytheseareApple,Alphabet(Google),Amazon,Microsoft,andFacebook.In1960,theaveragelifespanofanS&P500companywasaround56years;by2014,itwas15years.Ithasbeensuggestedthat,injust10years,40percentoftoday’sFortune500companieswillnolongerexist.1Theincreasingpaceofinnovationandtheimpactofdisruptivetechnologiesandprocessesonsustainablesuccessisclear:itisnolongerenoughtosimplykeepup.
Albertamustpivotfrombeingaresourcecentriceconomytoonewhichisdynamic,resilientandrelevantintoday’sglobalmarketplace–leveragingitsexistingstrengthstobecomeahightechresourceeconomywhilealsodevelopingneweconomicsectorsintheprovince.Albertaneedstoestablishaglobally-recognizedinnovationbrand.StepssuchasthecreationofasingleministryresponsibleforeconomicdevelopmentandtheconsolidationofthefourAlbertaInnovatesCorporationswilladvancethisworkwithprioritiesofeconomicdiversification,exportgrowth,jobcreation,environmentalsustainabilityandimprovedhealth.TheCorporationwillbeginthepreliminaryworktobuildacommonunderstandingofAlberta’sGlobalInnovationbrandinthecomingyear.ProgressmadeinrecentyearstolaythegroundworkforAlbertatobeknownforitsglobalcarbonleadershipandhealthinnovationwillbeessentialinsupportingthedevelopmentofthisbrand.
FullScopeInvestmentStrategyInnovationcanhavesignificantimpactonacountry’seconomicstatusandglobalcompetitiveness.WhilecurrenteconomicconditionsrestraintheGovernmentofAlberta'sabilitytorampupinvestment,AIisdedicatedtoensuringthateverydollarinvestedcreatesmeaningfulreturns.Thiswillbeaccomplishedthroughfocusedinvestment,clearlydefinedoutcomesandactiveperformancemonitoring.
Asastrategicpartnerandadvisortogovernment,AIwantstochangethediscussionaroundpublicfundingforresearchanddevelopment.Thecorporationbelievesthattheprovinces’investmentintoAlbertaInnovatesshouldbeviewedasseedfundingforkeystoneinitiativeswiththegreatestpotentialbenefittotheprovince.However,onitsown,thisfundingwillbeinsufficienttocreatethetransformationalchangesneededtoacceleratetechnologyadoptionandapplicationintheprovince.Alintendstoaccelerateitsworkwithgovernmenttoimplementnewapproaches,partnerships,andculturaladoptionofinnovation,andtoincreaseaccesstoinvestmentcapitalwiththegoalofenhancingAlberta’seconomicprosperity.
Fosteringone-on-onepartnershipsanddevelopingmulti-partycoalitionsarecriticaltoAI’sapproachtoexecutingafullscopeinvestmentstrategy–onethatusesallavailableresources,includingnewapproaches,toaccomplishitsobjectives.Throughcombiningtheexpertise,passion,knowledgeandresourcesofmultipleparties,frombothwithinandoutsidetheprovince,asmalljurisdictionlikeAlbertacan“punchaboveitsweight”.
Onepriorityareaoffocusisthefederalgovernment.BasedonStatisticsCanadadatafrom2013,Albertareceivesjust$1.11fromthefederalgovernmentforeveryprovincialdollarinvested.
1https://www2.deloitte.com/content/dam/Deloitte/ca/Documents/insights-and-issues/ca-en-insights-issues-future-of-productivity-2015.pdf
![Page 9: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/9.jpg)
albertainnovates.ca
9
Thenationalaverageis$3.29federalinvestmentperprovincialdollar2,withBritishColumbiaandOntarioat$5.07and$6.13respectively.PurposefulcollaborationwiththefederalgovernmentcouldopensignificantopportunitiesforAlbertaandgreatlyacceleratetheinvestmentavailablefortechnologydevelopmentandapplicationintheprovince.Someofthisworkisalreadywellunderway.
Anotherareaoffocusistoconveneourpartners,anddeveloptargeted“TeamAlberta”coalitionstotacklecomplexandsystemicbarrierstoachievingthenew21stcenturyversionoftheAlbertaAdvantage.OneofAlberta’sgreateststrengthsisitsentrepreneurialspirit.Asopportunitiespresentthemselves,AIwillbringtogetherdiversegroupsfromacademia,industryandgovernmenttoworkonissueslargerthantheabilityofonesingleentitytosolve.
Someissueswillrequireevenbroadercoalitionstobeformed,aswellascross-ministerialsupportfromtheGovernmentofAlberta.Anexampleofonesuchissueiseducationandtraining.Albertansknowthatwhenitcomestothehigh-techjobsofthe21stcentury,wearecompetinginaglobalmarketplace.Acrosstheworld,countriesarefocusingoneducation,withauniqueemphasisonthemath,engineeringandscienceskillsrequiredfortheindustriesoftomorrow,andwemustensurethatoureducationsystem,industryandschoolsarekeepingpace.ThesecomplexissuesrequiremultiplepartiestocometogetheranddesigntheroadmapnecessaryforAlbertatomaintainandincreasethequalityoflifeavailabletoitscitizens.
UniqueAppliedResearchExpertiseandFacilitiesAsapubliclyfundedinnovationagency,AIisuniqueamongitscounterpartswithtwowhollyownedsubsidiariesfocusedonprovidingindustryandgovernmentclientswithappliedresearchservices.ThesetwoAIassets–InnoTechAlbertaandC-FERTechnologies–offeruniqueprogramsandservicesthatenableacceleratedoutcomesandreducedriskforinnovatorslookingtoexpandrevenuestreamsand/orenternewmarkets.OnesuchserviceiscontractresearchforthecriticalindustrialsectorsthatarethebackboneofAlberta’seconomytoday–Energy,AgricultureandForestry–helpingthesesectorstoacceleratetechnologyadoptionandpursuenewmarketopportunities.AnotheristohelptheGovernmentofAlbertadeliveronitscriticalprioritiessuchasmonitoringthebiodiversityandenvironmentalqualityintheprovince.
ThroughInnoTechAlberta,Alalsobringstogetherdiversegroups–largeindustry,smallbusinessandgovernment–intotargetedconsortiumsfocusedonhelpingthesepartiestocollaborativelyde-riskinnovationandexplorenewmarketopportunitiesaswelltoworkonindividualclientneeds.InnoTechclientsvarybysize,locationandsectoraswellasthescopeofservicestheyutilize.Whenreviewingthesizeofclientsserved,thedatashowsthatofallclientsservedin2016-17:
• LargeIndustryaccountedfor32%:firmswithmorethan200employeesoperationalinlimitedregions
• Smallenterpriseaccountedfor31%:firmswithlessthan100employees
• Multi-NationalEnterpriseaccountedfor11%:firmswithglobaloperations,marketsandinvestments
• MediumEnterpriseaccountedfor6%:firmswith99to199employees
• Otherwas20%andcomprisedofGovernment,Post-Secondary,Not-for-Profit,ResearchOrganizations,andMunicipalities.
2http://www.statcan.gc.ca/pub/88-221-x/2015001/t065-eng.htm
![Page 10: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/10.jpg)
albertainnovates.ca
10
OneofAI’scorevaluesismarketorientation.AstrongrelationshipwithourcontractresearchclientsandadeepunderstandingofthegeographyandprofileoftheprovinceiskeytoAI’sabilitytoremainnimbleandresponsivetoemergingindustryneeds.Thisfeedsdirectlyintotheefficacyofourprograms,whichisborneoutthroughclientfeedback.
In2016,AIsurveyedInnoTech’sTop100clientsandapproximately90percentofclientsweresatisfiedwiththeworkthatwasperformed.WhenaskedtorankwhytheychosetheappliedresearchservicesofAI,thetopthreereasonswere:
• Technicalexcellence
• Relationshipwithstaff
• Qualityresults.
Furthermore,whensurveyclientswereaskedwhatvaluewasgained,thetopthreeresponseswere:
• Compliancewithregulatoryrequirements
• Increasedcompetitiveness
• Growthinrevenues.
Theseresultsconfirmthatthetechnicalexpertiseofthestaffandconsistencyindeliveringresultscreatesameaningfulcompetitiveadvantageandvalue-addforclients.Lookingahead,thereisanopportunityforAItoexploretheroleitsappliedresearchfunctionplaysrelativetoourpost-secondarypartners,includinguniversitiesandpolytechnics,inareasidentifiedashighpriorityandwhereresultscanbemeasured.
AchievingTransformationalChangeCanadaisaleaderinknowledgecreation,asdemonstratedbyoverallperformancerankingsfromboththeGlobalInnovationIndex(GII),wherewerank15thoutof128,andtheGlobalCompetitivenessReport(GCR),wherewerank15thoutof138.However,theGII’smeasureofInnovationEfficiency,whichcomparesacountry’soutputagainstitsinput,placesCanadaas57th.Similarly,theGCRranksCanadaas25thforinnovationandbusinesssophistication.Thesestatisticshighlightalong-standingconcernthatCanadaisunderperformingandnotsuccessfullyconvertingitsknowledgeandinfrastructurestrengthsintotransformativeproductsandservices.
Astheprovince’slargestagencyfocusedonresearchandinnovation,AIisreadytotaketheboldstepsnecessarytotransformoureconomicfuture.WithanewCEOandBoardofDirectors,theconsolidatedCorporationismovingaheadwithaunifiedandclearlydefinedmandateandrole.Thisessentialfirststepmustbematchedbyaculturethatisnimble,open-minded,readyandwillingtoengageinnewendeavorsandtakeadvantageofchangingmarketneedsandtrends.
![Page 11: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/11.jpg)
albertainnovates.ca
11
Lookingahead,AIwillbetakingahardlookatexistingprogramstoidentifythosethatdeliverthegreatestoutcomes.Inanenvironmentoffiscalrestraint,AlbertaInnovatesmustmakeeverydollarcount.Investmentsgeneratingthegreatestreturnswillbeprioritizedwhileotherswillpivottoareascapableofgeneratingbetteroutcomes.Thisislikelytoresultinthealterationordiscontinuationofsomeexistingprograms,whichwillultimatelyresultinbetteroutcomesfortheprovinceanditspeople.Thiswillbebalancedwitheffortstogreaterleveragecontributionsfromacademia,industry,theprovincialandfederalgovernments,andinternationalpartners.
ItwillalsobeimportanttoidentifygapsandchallengesinthewaytheGovernmentofAlbertamanagesitsinvestmentinresearchandinnovationprovince-wide.AIwillworkwiththegovernmenttoreviewsystemicissueswithintheprovince’sinnovationsystemthat,ifleftunaddressed,willlimittheabilitytoachieveourgoals.AIisnottheonlysupportingagencyinthisecosystem,anditisimportantthatwetakeaholisticviewofprogrammingwithintheprovince.Assuch,AImustensureitsprogramscomplementandsupporttheprogramsofferedbyotherpartnersintheinnovationsystemandthatthereisalignmentfortheachievementofmutuallybeneficialoutcomes.
TheCorporationwillimprovethewayinwhichitmeasuresandreportsonitsinvestmentsbothquantitatively,suchasjobandrevenuecreation,aswellasqualitatively,suchasapplicationofinnovativetechnologiesandapproachesinthepublicandprivatesector.However,measuringtheutilityofaninnovationinvestmentportfolioiscomplicated,aslong-termprojectsmaynotproducemeasurableresultsformanyyears.AIrealizestheonusisontheCorporationtodemonstratevaluetoourstakeholders,andworkisunderwaytobettertrackandcommunicatetheseoutcomes.
ThegoalssetbeforeAIareaspirational,whichcannotbeachievedwithoutmakingharddecisionsandtakingboldsteps.UndertheleadershipofthenewCEOandBoard,AIwillbalanceafocusonitslong-termgoalswithappropriateflexibilityintheshorttermtoensureAlbertansarereceivingthebestvaluefortheirinvestment.
![Page 12: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/12.jpg)
albertainnovates.ca
12
III.LegacyAreas,OutcomesandPerformanceIndicatorsIntheupcomingyear,legacyprogramsfromthefourpredecessorcorporationswillbeoperatedbytheCorporation.Currently,AIinvestsinthreebroadindustrysectors–CleanEnergy,BioandHealthinnovation.AfourthfocusareaoftheCorporation–Cross-SectoralInnovation–supportsthebuildingblocksoftheinnovationecosystem–industry,entrepreneurs,researchersandpost-secondaryinstitutions.ThechartbelowhighlightsthefourbusinesslinesinheritedbytheCorporation,andthedesiredoutcomesfromthesebusinesslines.ThesebusinesslinesmaychangeoncethedeliverablespresentedundertheTransitionalGoalsoutlinedinSectionIVofthisbusinessplanareachieved,andAIdevelopsanewlongtermstrategicplan.
BUSINESSLINE–CROSSSECTORALINNOVATION
AlbertaContextAImakesinvestmentsinCross-Sectoralenablerstofacilitateinnovation.Byofferingresearchcapacity,entrepreneurialknow-howandbusinessdevelopmentinfrastructure,researchers,entrepreneurs,SMEsandindustryareabletoadvancetheirideasintoapplication.
DesiredOutcomes1. Creationofresearchcapacityinareaswhichcutacross
multiplenew&existingindustrialsectors2. De-riskandincreaseadoptionoftechnologybyexisting
CompaniesthroughAI’stwoAppliedResearchsubsidiaries3. Providedirectcoaching,connectionsandfundingtohigh
potentialAlbertaEntrepreneurstoincreasetheeconomicbaseintheprovince
4. AIwillactasaconduitandestablishcross-sectorengagementwithSME's,LargeScaleBusinessesandAI.ThecollaborationofthesesectorswithAIwilldeliveractionableandcommerciallyviableproducts.Mostimportantly,theoutcomeofthepartnershipswillhaveasitskeygoalafirstcustomerfor
theinnovation.
BUSINESSLINE–HEALTHINNOVATION
AlbertaContextAIleveragesAlberta’sexcellenceinhealthresearch,agrowinghealthtechnologysector,andunique,unifiedhealthdeliverysystemstrengths.Thesequalitiesprovideanopportunityforleadershipinthescaleandspreadofhealthinnovation,drivingtobetterpatientoutcomesforAlbertansandgrowthinthehealthtechnologyeconomicsector.
DesiredOutcomes1. Increasingthedevelopmentandadoption(withinand
beyondtheProvince)ofnovelserviceconfigurationsandtechnologiestoimproveoutcomesandefficiencyofhealthcare
2. CatalyzingthestrengthsofAlberta’sresearchandinnovationsystem,entrepreneursandunifiedProvincialhealthsystemtoacceleratethegrowthofthelifesciencesandotherhealth-relatedtechnologyindustrysectorsinAlberta
3. Mobilizinghealthdatatoimprovepatientcareandenableoutcomeslistedabove
![Page 13: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/13.jpg)
albertainnovates.ca
13
BUSINESSLINE–CLEANENERGY
AlbertaContextResearchandinnovationbuildsonAlberta’snaturaladvantagesandexperiencestoleadthedevelopmentofinnovativeenergyandenvironmentaltechnologiesbuildingonournaturaladvantagestoachieveasociallyresponsible,environmentallysustainableenergysectorthatsupportsadiversifiedandprosperouseconomy.
DesiredOutcomes1. AlbertaInnovateswillcontributetoAlberta’s:
• Globallycompetitive,lowemissionandvalue-addedeconomyfromitsenergyresources
• CleanTechSector• Environmentalsustainabilityandclimatechangeadaptability.
BUSINESSLINE–BIOSECTOR
AlbertaContextAImakesresearchandinnovationinvestmentswhichleveragesAlberta’sfood,fibre,forestrysectors,expertiseandnaturalresourcesforagrowingglobalpopulationinacarbonconstrainedenvironment.
DesiredOutcomes1. AlbertaInnovateswillcontributeto:• Growthanddiversificationoftheprovince’sagricultureandfoodsector
• Strongstewardshipoftheprovince’senvironmentandnaturalresources
• Developmentofnewusesforforestfibreandcropresidueleadingtobio-industrialsectorgrowth.
Acriticalprioritythisyearistocompleteacomprehensivereviewandassessmentofitsexistinglinesofbusiness,andtheprogramsandservicesofferedwithinthem,whileinparallelalsodevelopingalongtermstrategicplanwithkeystakeholdersintheInnovationSystem.Changestolegacybusinesslines,asaresultofboththisreview,andthesettingofanewstrategicdirectionforAImaybeneeded.Inaddition,AIwillneedtodeveloparobustandconsistentperformancemeasurementframeworkwhichfacilitates:
• strongandtimelymanagementoversightovertheperformanceofAI’sinvestmentportfolio,
• trackingofprogresstowardsitsnewlong-termstrategicplan,and
• CommunicationofthevalueandoutcomesgeneratedbytheGovernmentofAlberta’sinvestmentintoAI,whichareeasilyunderstoodbybothstakeholdersintheInnovationSystemandAlbertans.
ThedevelopmentofarobustperformancemeasurementframeworkwillbeachallengingtaskasmanagementmustrelyontheexistingreportingsystemsofthefourlegacyCorporations,whichdifferedintheirapproachesandmaturitylevels.AImustgainaconsolidatedviewastotheavailabledatawithineachofthelegacycorporationsandwillneedtoaddresscurrentgapsindata,processesandsystemstoreportonmeaningfulandrelevantperformanceindicatorsalignedtothenewdirectionofasingleconsolidatedAlbertaInnovates.
TheillustrationonthenextpagehighlightssomeoftheperformanceindicatorstrackedbythefourlegacyCorporations.AIwillcontinuetoreportontheseperformanceindicatorswhiledevelopingitsnewPerformanceMeasurementframework,assessingcurrentbusinesslinesandprograms,andcomprehensivelong-termstrategicplan.
![Page 14: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/14.jpg)
albertainnovates.ca
14
LegacyPerformanceIndicators
IV.TransitionalCorporateGoalsLayingastrongfoundationinatransitionalyearAlbertaInnovateshasaproudhistoryofachievementarisingfromitsfourpredecessorcorporations.However,aswemoveforwardasaconsolidatedorganizationmorewillbedemandedofAlbertaInnovatestosupportAlberta’sascenttoagloballycompetitiveinnovationjurisdiction.AstheCorporationdevelopsitslong-termstrategicplanwithitspartners,effortstobuildastrongfoundationwillbeunderway.
Fivebroadcorporategoalswithactionabledeliverablesandmilestoneshavebeendeveloped.ThesewillallowAItomeasureprogressonourjourneytowardtransformationalchange,andfacilitatetransparencyandaccountabilitytoourshareholder–theGovernmentofAlberta.
Inaddition,thesegoalswillmobilizeourstaff,whocomefromfourdistinctentitiesandcultures,tocollectivelybuildastrongfoundationforfuturesuccess.Asanewlyconsolidatedentity,thisyearisayearoftransition,andassuchthefirstfourcorporategoalsfocusonAIgettingitshouseinorder,thefifthgoalmovesAIforwardonitsnewroleofbringingtogethera“TeamAlberta”approachtochallengeswhereAIworkstoconvenetherightpartnerstoachievetransformativechange.
![Page 15: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/15.jpg)
albertainnovates.ca
15
BackgroundInthepast,AIhasnotbeenviewedasanimbleandagileorganization,responsivetoboththeneedsofstakeholdersandchangingmarketconditions.TheCorporationviewsthisasafundamentalimperativetosuccessfullydeliveronitsmandate.
Whilemuchworkisnowunderway,reachingthedesiredstateisnotaone-yearjourney.AImanagesacomplexinnovationportfoliotouchingallaspectsofAlberta’sbroaderinnovationecosystemineachofAlberta’skeyindustrialsectors.Thecorporationmustaddressexistingprocesses,commitments,andculturalfactorsasittransitionstoanimble,responsive,anddynamic21stcenturyinnovationagency.
CorporateGoalStatementThenewAlbertaInnovateswillmakeiteasierforresearchers,smallandmediumenterprises,CampusAlbertaandindustrypartnerstocollaborateandturnchallengesintoopportunitiesby:
(i) MakingiteasiertoengageandpartnerwithAlbertaInnovates;and,
(ii) Continuouslyassessingitsinnovationinvestmentportfolioandresourceallocationdecisionstoensuretheyremainrelevantinlightofcurrentmarketconditionsandthecontributionsofotherstakeholders.
Deliverablesa. Reviewlegacygrantprocessesand
developanactionplantoimprovethequalityandspeedofclientservicebyQ4.
b. Assesslong-termprograms(definedasbeinginoperationfor5ormoreyears)forcurrentmarketrelevancebyQ4.
c. Implementago-forwardmechanismforcompletingperiodicindepthreviewsofprograms,alignedwithEDTandapplicablestakeholders.Thiswillallowallprogramareastobeactivelyreviewedandrefreshedevery3years.MechanismandapproachtobeconfirmedbyQ3.
d. EstablishanEmergingTechnologiesactionplan,alignedwithEDTpriorities,toallowAlbertatocapitalizeonnewandhighpotentialtechnologyareasbyQ4.
e. Allnewfundingpartnershipagreementsgreaterthan$250,000annuallywillexplicitlyconsidertheInnovationlandscape(i.e.,otherstakeholders)andmarketneedspriortoapprovalstartinginQ2.
f. Reviewthelegacyallocationofinternalresources,suchasstaffandcapital,tothefutureneedsoftheorganization;identifygapsandchangesneededtoensureAIisnimbleandresponsivetothecurrentneedsoftheprovincebyQ3.
![Page 16: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/16.jpg)
albertainnovates.ca
16
BackgroundAlbertaInnovateswillactivelymanagetheallocationofitsexpertiseandseedfundingprogramstopost-secondaryinstitutions,smallbusinessandentrepreneurs,industryandotherpartners.InvestmentsmadebytheCorporation,willbemarketorientedwithaclearlydefineduser-needattheonset.Sufficientshort-termandintermediateoutcomeswillbenecessaryforongoingsupportandfunding.Whereoutcomesarenotdeemedtobesufficient,stepswillbetakentomakereal-timeadjustmentsand,whereappropriate,toreallocateresourcestohigherpotentialinitiatives.
CorporateGoalStatementAlbertaInnovatesmanagesalimitedpoolofresourcestoachieveoutcomeswithitspartnersthroughprovidingexpertise,facilitatingcollaborativeopportunitiesandaccess,andprovidingseedfundingtopartnerswhereappropriate.Toenabletheallocationofresourcesbasedonresultsandalignmenttogovernmentpriorities,theCorporationwillbuildanenterpriseviewofallinvestments,theircurrentperformanceandassessmentofmarketorientation
Deliverablesa. Buildconsolidatedinventory
ofAIsexistingprogramsbyQ1,articulatingtheexpectedoutcomesandhowprogressistrackedcurrently.
b. StartinginQ3,allnewfundingpartnershipagreementswillidentifyclearprojectmilestonesandperformancemetricsthatarticulatetheoutcomessought,userandhowperformancewillbeassessed.
c. Completeacurrentstateassessmentofexistinginvestmentapproval/governanceprocesses,includingthecriteriausedtoevaluate,selectandapproveinvestments.IdentifyclearrecommendationsforapprovalbyQ3.
d. Buildanenterprise-wideviewofAIscurrentinvestmentportfolio,assesstheoutcomesbeinggeneratedanddevelopaconsistentprocesstotrackmulti-yearfinancialcommitmentsbyQ4.
e. InconcertwiththedevelopmentofAI’sLong-TermStrategicPlan,theCorporationwillarticulatetheresultsAIistryingtoachieveoncorporate-widebasisfortheProvinceintermseasilyunderstoodbythegeneralpublicbyQ4.
![Page 17: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/17.jpg)
albertainnovates.ca
17
BackgroundCultureisnotcreatedovernight.Thisisamulti-yearjourneyinanysizeorganizationandwillbeespeciallychallengingforAIduetothesize,complexityofoperationsandvelocityofchangealreadyexperiencedbytheemployeesofthefourpredecessorcorporations.
BuildingontheexistingstrengthsandachievementsoftheCorporation’sfourpredecessorcorporations,AIwillengagethesupportofitsemployeestodefineanewandcommoncultureandarticulatethepathtogetthere.ThisincludestheexplicitconsiderationofexecutingonthenewneedsoftheCorporation,suchascatalyzingconnectionsbetweenindustry,entrepreneurs,researchersandendusers.AndaddressingthegapsinAI’scommunicationsbothinternallyandexternally.
CorporateGoalStatementSuccessstartswithculture.Toexecuteonitsambitiousmandate,Albertainnovatesmustharnessthepassion,persistenceandexcellenceofitsstaffthroughmeaningfulengagementanddevelopacommonAIcultureoutoffouruniqueandwellestablishedcultures.
Thecorporationwillfosteranaction-orientedculturethatisnimble,forward-looking,readytoengageandparticipateinnewendeavors,withthewillingnessandimperativetotakeadvantageofchangingmarketneedsandtrends.ThedevelopmentofthenewAIculturewillinvolvetheemployeesoftheorganizationaswellasourpartners.
AIwilldevelopitsemployeecommunicationstoensureaccurateandtimelyinformationisreceivedconsistentlybyemployees.ExternallyAIwillbuilditstoolsettomoreefficientlycommunicateandengageitspartners.
Deliverablesa. Launchanemployeeengagementsurvey,
conductedbyanindependentthirdparty,andhaveAI’snewCEOvisitallAlbertaInnovatesofficestoengageemployees,gatherfeedbackandleveragetheirpassion,persistenceandprofessionalismtosetanewculturaldirectionforAIbyQ2.
b. IdentifyapreliminaryinternationalidentityorbrandforAlberta’sinnovationssystem.DefinewhatAlbertashouldbeknownforgloballyoverthecomingyearsbyQ3.
c. DesignandarticulatetheMasterbrandapproachforallAIprograms,subsidiariesandservicesbyQ2.
d. Developanintegratedmarketingandbrandingstrategy–tofosterawarenessanddemonstratesuccessbyQ3.Thisstrategywillinclude,butisnotlimitedto,theuseofmediumssuchasAI’swebsiteandsocialmediaplatformstoinformandengageemployeesandpartnersbyQ4.
e. EngageemployeestodefineAI’snewcultureandcompleteanassessmentofcurrentstrengthsandgapsbyQ3.
f. LaunchaninterimperformancemanagementprocesstofacilitateemployeelineofsighttoAI’sBusinessPlanandenableallemployeestostriveforexcellenceandachievetheirprofessionalgoals.ApprovalofacommonperformancemanagementprogrambyQ4tofacilitateachievementofAI’sdesiredcultureandstrategicoutcomes.
g. ByQ4,gainapprovalofanewconsolidatedHRStrategyandInternalCommunicationsStrategythatoperationalizesthecreationofAI’sdesiredcultureandprioritizestheinvestmentsneededtoconsolidatethefourpredecessorCorporation’sHRpractices.
![Page 18: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/18.jpg)
albertainnovates.ca
18
BackgroundTheconsolidationofthefourlegacycorporationsallowsforsingle-dooraccesstothemanypartnersofAlbertaInnovates.
Whilethepotentialforaconsolidatedsingleentityisgreat,theCorporationrecognizesmanymergersfallshortofexpectationsandthatmuchworkisrequiredtotakefulladvantageoftheconsolidationgiventhecomplexitiesofitshistoryandoperatingenvironment.
CorporateGoalStatementTheconsolidationwasacriticalfirststeptoimprovetheoutcomesgeneratedbytheProvince’sinvestmentintoresearchandinnovation.However,AlbertaInnovatesmustnowaddressthecomplextaskofintegratingtheoperationsoffourcorporations,todeliveronthefullpotentialofasinglecoordinatedcorporationfocusedonacommonmandateanddirection.
Deliverablesa. AIExecutivetosponsorandoverseean
IntegrationProjecttoprioritizetheintegrationofback-officefunctions,suchasITservices,andaddressthechangemanagementneedsandcapacityoftheorganization.QuarterlyupdateswillbeprovidedtotheMinisterandBoardtofacilitatetransparencyonanyrisksorissuesnoted.
b. Simplifyandconsolidatemultiplefundingprocessescarriedoverfromthefourpredecessorcorporations’partnershipswithAlberta’spost-secondaryinstitutionsbyQ4.Withover50%offundinggoingtopost-secondaryinstitutions,thiswillenablegreaterefficiency,effectivenessandclarityfortheresearchcommunity.
c. DeterminehowtointegratethetechnicalexpertisewithinAI’sappliedresearchsubsidiariesandsectorofficesintoAI’sinvestmentduediligenceprocessbyQ3.
d. Reviewandcoordinatemultipletraineeprogramscarriedforwardfromthefourpredecessorcorporationstoachievebetteroutcomesandenablegreaterclarityforbothstudentsandourpost-secondarypartnersbyQ4.ThesetraineeprogramsarefocusedonnurturingtheProvince’sknowledgecapacityandarenecessaryfortheprovincetobeagloballycompetitiveinnovationjurisdiction.
e. AImanagesmanymulti-yearagreementswithitspartners,whilereceivingfundingonanannualbasisfromtheGovernmentofAlberta.Tomanagecash-flowriskandtoenabletimelyandinformedinvestmentdecisions,AIwillrefineitscash-flowmodelling/forecastingcapabilitybyQ3.
f. DevelopaplantoleverageandcoordinatetheexpertisewithinexistingChairProgramsfundedwithinpost-secondaryinstitutionswithotherinvestmentsandexpertisewithinAI.Identify3actionableopportunityareastoaccelerateoutcomesbyQ4.
![Page 19: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/19.jpg)
albertainnovates.ca
19
BackgroundAlbertahassignificantstrengththroughourexcellentpost-secondarysystem,ambitiousentrepreneurs,andforwardlookingindustry.OnlybycoordinatingtheeffortsofallofthesepartieswithinthelargerecosystemwillwebeabletosuccessfullytransformAlberta’seconomicfuture.AsakeymemberofAlberta’sinnovationecosystem,AIwillworkmorecloselywithindustry,entrepreneurs,academiaandothergovernmententitiessuchasAlbertaHealthServices,EmissionsReductionAlbertaandSustainableDevelopmentTechnology.AIwillactasaconvenertoensurethegreateststrengthsofallpartiesareleveragedtomaximizetheoutcomesofinvestmentsintheseareas.
CorporateGoalStatementAlbertaInnovateswillworkcollaborativelywithindustry,federalandprovincialpartners,andpost-secondaryinstitutionstobuildgreatercoalitionsandinitiativestoachievedesiredinnovationoutcomes.ThisongoingworkwillbesupportedbyexplicitengagementofourpartnersinthedevelopmentofAI’snewlong-termstrategicplan.
Deliverablesa. Developalong-termstrategicplan,in
collaborationwithkeystakeholderswithintheAlbertainnovationsystem,byQ3.ThisplanwillarticulateAI’sprioritiesandtheportfolioshiftnecessarytodelivertangibleoutcomesfromtheProvince’sinvestmentintoAlbertaInnovatesandidentifythehigh-levelchangemanagementneededtoexecute.
b. WherethereareopportunitiestopartneratthatnationalandprovinciallevelonfurtheringAlberta’sinnovationpriorities,AIwillstrivetofulfilltheroleofaconvenerandbringitspartnerstogethertoachievemutuallybeneficialoutcomes.QuarterlyprogressreportswillbeprovidedtotheBoardandGovernmentofAlberta.
c. EngageAI’spartnerstoreviewexisting“platformtechnology”strengthswithintheprovinceanddevelopadeliberateapproachtoleveragethesestrengthsformultiplesectorsandaccelerateoutcomesbyQ3.
d. SupportthecreationandmaintenanceofstrongindustryclustersintheProvinceandidentifyspecificplatformtechnologiestoacceleratetheirgrowthbyQ4.QuarterlyprogressreportswillbeprovidedtotheBoardandGovernmentofAlberta.
e. SupportGovernmentofAlbertadepartmentsbyprovidingaccesstoAI’stechnicalexpertisebyQ1.Trackandreportonservicehoursprovidedonaquarterlybasis.
![Page 20: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/20.jpg)
albertainnovates.ca
20
V.ConsolidatedBudgetBackgroundThisconsolidatedstatementofoperationsreflectstheconsolidationofAlbertaInnovatesandincludesrestatementsforthe2015-2016actualresultsand2016-2017budget.
Revenueisexpectedtobeatsimilarlevelsto2016-2017.Grantrevenueassociatedwithendowmentswillberestrictedtothepredetermineduseofthoseendowments.
Forthistransitionyear,expenseswereidentifiedasrelatingtoaspecificsector(Bio,Energy,Health),cross-sectoraloradministrative.Sectorcostsincludebothgrant/programinvestmentsaswellasprogramoperationscoststhataredirectlyrelatedthosebusinessunits.Theexpenditureheadersincludethefollowingactivities:
CrossSectoralInnovation–theformercrosssectoralactivitiesrelatedtoappliedresearch,basicresearchandcommercializationwithintheformerAlbertaInnovatesTechnologyFutures.
HealthInnovation–investmentsinhighlyskilledpeople,provincialplatformsandpartneredactivitiesformerlyincludedinAlbertaInnovatesHealthSolutions
CleanEnergy–fundingrelatedtoadvancedhydrocarbons,cleantech,waterandtailingsresearchandwaterandlandprogramsfromtheformerAlbertaInnovatesEnergyandEnvironment.
BioSector–includesthePrioninstitute,sustainableproduction,bio-industrialinnovation,ecosystemservicesandbiologicalGHGmanagementprogramfromtheformerBioSolutions.
BudgetedexpendituresreflectprimarilyexistingcontractualobligationsfromtheformerAIcorporations.AsofDecember31,2016,AlbertaInnovateshadalmost$200millionofcontractualobligationsongrantsandagreements.
Budgetamountsfor2018-2019and2019-2020areestimatesbasedonexistingcontractualobligationsandaverageannualspending.Anysignificantreductionsoradjustmentsreflecttheendingofexistingprograms(eg.HealthInnovationhasasignificantprogramendingin2020).Futureyearfundingwhichisuncommittedor
availablefornewopportunitiesisincludedinthecross-sectorallineassectorspecificopportunitieshavenotyetbeendetermined
Administrativecostsincludeallcorporateservicessuchasfinance,informationservices,facilities,legal,humanresources,purchasing,corporateplanningandreportingandperformancemanagementandevaluation.Prioryearshavebeenrestatedtoreflecttheconsolidatedapproachtoadministration.
Althoughanaccumulatedsurplusexists,atotalexpensetargethasbeenassignedtoAlbertaInnovatethroughthegovernmentbudgetprocesswhichlimitstotalexpensesandtheuseofthesurplus.
contractual obligations and commitments
(in thousands of dollars)
2017–18 116,550
2018–19 59,174
2019–20 12,397
2020–21 5,210
2021–22 2,564
thereafter 582
total 196,477
![Page 21: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/21.jpg)
albertainnovates.ca
21
Anannualdeficitof$17Misbudgetedfor2017-2018whichreducestheaccumulatedsurplusto$65.5M.Theaccumulatedsurpluswasgeneratedfromtimingdifferencesonexpendituresoverthelastfewyears.Theaccumulatedsurplusisexpectedtocontinuetobedrawndownoverthenextthreeyears.
AlbertaInnovatesConsolidatedStatementofOperationsfortheyearendedMarch31,2018(dollarsinthousands)
consolidated total
2015-16Actual
2016-17Budget
2017-18Budget
2018-19Budget
2019-20Budget
revenues
Government of Alberta Transfers
Funding from ED&T
Base Grant $160,547 $158,749 $160,849 $160,249 $141,999
Deferred from Prior Years 6,867 13,051 14,072 20,407 19,407
Other Grants 28,228 31,307 28,499 28,499 23,499
Deferred Capital Contribution - - 1,000 1,400 2,000
Funding from Other GOA – Other Grants 15,115 12,753 3,240 3,240 3,240
Funding from Other Government Sources 4,913 5,144 4,479 4,479 4,479
External Revenue and Industry Funding 59,238 46,998 55,024 59,689 59,689
Investment Income 1,581 1,196 1,086 1,086 1,086
Other Revenue 4,086 4,104 768 768 768
total revenue 280,575 273,302 269,017 279,817 256,167
expenses
Cross Sectoral Innovation Enablers 139,531 137,971 135,461 135,000 150,965
Health Innovation 97,227 85,449 74,013 78,601 60,351
Clean Energy 17,031 25,827 25,645 21,895 22,071
Bio Sector 18,459 24,189 19,758 21,300 23,409
Administration 31,437 29,537 31,113 31,400 31,400
total expenses 303,685 302,973 285,990 288,196 288,196
annual deficit $(23,110) $(29,671) $(16,973) $(8,379) $(32,029)
accumulated surplus, beginning of year 136,195 112,182 82,511 65,538 57,159
accumulated surplus, end of year $113,085 $82,511 $65,538 $57,159 $25,130
adjustments to deferred revenue accounts
Revenue Recognized During the Period 100,635 105,255 14,072 20,407 19,407
Funding Received 94,037 90,000 - - -
change in total deferred revenue
Total Deferred Revenue, Beginning of Year 116,451 109,853 94,598 80,526 60,119
Total Deferred Revenue, End of Year 109,853 94,598 80,526 60,119 40,712
decrease in total deferred revenue $(6,598) $(15,255) $(14,072) $(20,407) $(19,407)
![Page 22: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/22.jpg)
albertainnovates.ca
22
AlbertaInnovates2017–18KeyOutcomes(dollarsinthousands)
VI.RisksAspartofAI’sEnterpriseRiskManagementprocess,managementactivelymanagestheriskswhichcouldadverselyimpacttheabilitytodeliverontheorganization’sbusinessplan.Thefollowingsignificantriskswereidentifiedbyseniormanagement:
1.Impactonoutcomesfromdecliningrevenuestreams.AIfundsitsmandatefortheProvinceofAlbertathroughtworevenuestreams–fundingfromtheGovernmentofAlberta(approximately80percent)andcontractresearchforcommercialenterprisesandgovernmentclients(approximately20percent).TheredecreasedrevenuecandirectlyaffectAI’sabilitytomeetfuturefundingneedsofcertainpartners,withthepotentialforcurrentprogramstobecanceledoroverhauled.Desiredoutcomesofpartnerinitiativesmaynotbeachieved,whichcouldaddalayerofreputationalriskfortheCorporation.TheCorporation’scontractresearchrevenueisconcentratedwitharelativelysmallpoolofclients.Duetotherecenteconomicdownturn,contractresearchrevenueshavecontinuedtodeclineyear-over-year.Whilethereisincreasingpressureonbothrevenuestreams,thelong-termnatureofresearchandinnovationrequiresAItosustaincriticalhumanandinfrastructureassetsinplace.Thisisfurtherimpactedbytherelativelyfixedcoststructureoftheorganization,duetofactorssuchassignificantportionofunionizedandlongserviceemployeesandmulti-yearfundingagreements.Thelongerthecurrenteconomicpressurespersist,thegreaterthestrainontheorganization.
![Page 23: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/23.jpg)
albertainnovates.ca
23
Potentialimpact:medium-highlikelihoodofoccurrence:high
MITIGATIONSTRATEGY:AI’sbusinessplanandbudgethasbeendevelopedprudently,balancingshort-termfiscalpressureswiththelong-termdemandsofresearchanddevelopment.BudgeteddiscretionaryexpenseswillbereducedandadditionalcontrolswillbeputinplacetomonitorAI’sfinancialpositionmonth-to-month.Duringthesechallengingtimes,astrongfocusonbusinessdevelopmentandsupportofourclientswillbemaintained.Staffhasbeenencouragedtothinkofout-of-theboxsolutionsandmaintainflexibility,acknowledgingcurrentfiscalpressureswhilestillprotectinglongtermoutcomes.
AsustainedcommitmenttobetterarticulatetheoutcomesgeneratedbytheProvinces’investmentintoAIwillalsohelpmitigatereductionsinfundingfromtheGovernmentofAlberta.Goal2–ResourceAllocationtiedtoResults–aswellasAI’sfuturecommunications,willlaythegroundworktobothreportonandcommunicatethevalueoftheProvince’sinvestment.
2.TalentcapacityTheCorporationneedstherightmixoftalentandcapacitytodeliveronitsambitiousmandateandlong-termstrategy.Withtherecentconsolidation,thereisalackofvisibilityintotheexistingskillsandcompetenciesoftheorganization.Inaddition,theCorporationwillneednewskillsandexpertisetofulfillitsrefreshedmandateandrole.
SomestaffatAIhavehighly-specializedskillsandexperiencenoteasilyreproducedorreplaced.Asaresult,hiringdecisionsmustbestrategicandcandidatesmustmeettherequirementsofaknowledge-basedworkenvironment.Nationally,attheuniversitylevelSTEM(ScienceTechnologyEngineeringMath)fieldsrepresentjust24.5percentofallfieldsofstudy,53.5percentofearneddoctorates(PhDs)and25.8percentamongmaster’sdegreesin20161.ThesestatisticsdemonstratethelimitedtalentpoolAIcompetesforwithprivateindustryandothergovernmentbodiesandagencies.Whilethecurrentdownturnandlayoffshasincreasedthepoolofcandidates,itiscriticaltonotethathighly-skilledprofessionalsarealsohighlymobile.IfuncertaintyishighinAlberta,andopportunitiesareconsideredmoreplentifulinotherregionsofCanadaorothercountries,talentcaneasilymigrate.
Potentialimpact:mediumLikelihoodofoccurrence:mediumMITIGATIONSTRATEGY:ManagementwillactivelyidentifythekeypositionsandindividualswhoselosswouldposethegreatestrisktoAI.AreviewofthecurrentskillsandexpertisewithintheorganizationwillbecomparedtothefutureneedsofAI.Wherepossible,staffwillbetransferredfromareasofthebusinessthatarenotatfullcapacitytoareaswheretheCorporationisunderserved.TrainingandrecruitmentstrategieswillbedrivenbytheneedtomeetthecurrenttalentneedsoftheCorporation.Afocusonsuccessionplanningforkeyroleswillhelptomitigatetheriskoflossofkeypersonnel.
![Page 24: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/24.jpg)
albertainnovates.ca
24
3.Integrationofthefourlegacycorporations.Thereareinherentchallengeswithanymergerofdistinctentities,letalone,amergeroffourentitieseachwithitsownuniqueculture,historicaloperatingmodelandlegacymandates.Therecanberoomformiscalculationsonthescale,scopeandtheassociatedchangemanagementimplicationsoftheintegrationandthelevelofassimilationrequiredbetweenalllayersofthenewCorporation.Assuch,thereistheriskthatpoorexecutionofkeyorganizationaltransitionswillleadto:strainandengagementofstaff,lossofkeyknowledgeandexpertise,damagetokeyrelationships,insufficientmanagementinformationsystemsanddisruptioninday-to-daybusiness.
Potentialimpact:mediumLikelihoodofoccurrence:mediumMITIGATIONSTRATEGY:Thistransitionalbusinessplanformspartoftheapproachtoensuretheback-officefunctionsareconsolidated,andthereisafocusonprovidingcleardirectiontoallemployeesontheneedsofAI.Fivecorporategoalshavebeendeveloped,withthegoalofensuringthatthereistransparencyintheoverallprocesstohavebuy-infromthenearly600employeeswithinAI.Therewillberegularmonitoringofthesegoalsastheconsolidationprogressesfurther,toensurethatthereisaccountabilityandtheabilitytocorrectcourseasunforeseenitemsarise.
4.CoordinationofactivitiesandsupportfrompartnersinAlberta’sinnovationsystem.Inthelastfiveyears,theresearchandinnovationlandscapehaschangedsignificantly,andincreasinglyAlbertaneedstotakeanintegrated,cross-sectoralapproachtorespondtocomplexchallengessuchasclimatechangeandstructuralshiftsinourenergysector.Increasedcoordinationamongstsystemplayersisneededtodrivetheoutcomesrequiredoftheinnovationsystem.InsufficientsupportfromourpartnerstoacceptandadapttoAI’srefreshedmandate,roleandoperatingmodelwillimpacttheexecutionofAI’sdesiredoutcomes.
Potentialimpact:mediumLikelihoodofoccurrence:mediumMITIGATIONSTRATEGY:ThenewlyformedAIisfocusedonimprovingcoordinationandcollaborationwithinAlberta’sinnovationsystem,withtherecognitionthatfortheprovincetosucceed,thebuildingblocksofinnovation–academia,industry,entrepreneurs,andgovernment–mustworkinlockstepwitheachother.AsAIdevelopsitslong-termstrategicplan,thiswillbedoneinconcertwiththeseessentialpartners.Inaddition,theCorporationwillfocusonensuringitsgrantingagreements,communicationsstrategyandday-to-dayinteractionswithpartnersareclear,consistentandsupportthenewdirectionoftheorganizationtobeoutcomefocused,marketoriented,responsiveandaccountabletotheGovernmentofAlberta.
![Page 25: 2017-18 TRANSITIONAL BUSINESS PLAN - Alberta Innovatescultural transformation will be a challenging task. This business plan was developed with the pragmatic understanding that full](https://reader033.fdocuments.net/reader033/viewer/2022041614/5e3a42e221ba42351f6445e6/html5/thumbnails/25.jpg)
albertainnovates.ca
25
5.Culture.Thelatebusinessmanagementguru,PeterDrucker,famouslysaid“Cultureeatsstrategyforlunch”.Thisstatementstillholdstruetoday–bothinternallywithintheCorporationandforthebroaderinnovationsystem.CulturewithintheAlbertaresearchandinnovationecosystemandAIinfluencesthesystem’sabilitytocreatethetransformativechangesnecessaryforAlbertatobecomeagloballycompetitiveandresilienteconomy.Thevalues,normsandbeliefsoforganizationswithinthesystemplayanimportantroleaspartnersengageandinteract.ThiscaneithersupportorinhibittheachievementoftheGovernmentofAlberta’sinnovationgoals.
Potentialimpact:highLikelihoodofoccurrence:mediumMITIGATIONSTRATEGY:Culturalshifttakestimeandsignificanteffort,howeverintheupcomingyearAIisfocusedonbuildingthestrongfoundationnecessarytodoso.CorporateGoal3hasbeencreatedtoaddressthispressingneed,andisfocusedonengagingstaffinternallytocreatetheculturalshiftnecessary.CorporateGoal5–CoalitionBuilding–isfocusedonaddressingthebroadersystemculturalshift.AlbertaInnovateswillfosteracultureofinnovationacrossthesystembymodellingcollaborativepartnershipsrelationshipsandestablishmutuallyreinforcinggoalsamongstsystemplayerstoachieveimpact.AlbertaInnovateswillformthenecessarypartnershipsandconvenecoalitionstoensuretheAlbertaresearchandinnovationlandscapeispositionedas"innovationready.”