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“Quicklook” Assessment of Greater Adelaide's Assets & Challenges ...

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AUSTRALIAN SUBMARINE CORPORATION (ASC)<br />

Interview Team<br />

• Celeste Yeakley, Team Leader<br />

• David Schieck<br />

• Eric Sloan<br />

Who we met with<br />

The team’s main interview session was held on Friday the 13 th July at the ASC with<br />

Ross Milton and Robert Lemonus. We were given a tour <strong>of</strong> the facility. They are just<br />

completing the 6 th (and last) submarine currently planned for by the Australian<br />

government.<br />

Opportunities<br />

• ASC’s s<strong>of</strong>tware packages might allow them to be niche players. AGILE could be<br />

applied to other industries and commercialized with some marketing and business<br />

planning.<br />

No Case Studies<br />

Facilitators<br />

• As part <strong>of</strong> the submarine program, ASC develop several s<strong>of</strong>tware packages. One<br />

<strong>of</strong> them, AGILE, appears to be a s<strong>of</strong>tware application that could be applied to<br />

additional industries and possibly commercialized.<br />

• The submarine construction program has allowed ASC to develop a significant<br />

project management experience base.<br />

• The submarines constructed by ASC will require many years <strong>of</strong> ongoing<br />

maintenance programs, that ASC is currently best qualified to provide.<br />

• ASC has done some contract work in Asia for two patrol boat projects.<br />

Barriers/Obstacles<br />

• For a small country like Australia, international defense contracting <strong>of</strong>fers<br />

significant challenges especially for larger contracts where there tends to be<br />

government to government negotiations which <strong>of</strong>ten require trading or linking together<br />

various cross-country business initiatives<br />

• Navy contracts are different and more complex than commercial contracts<br />

because a foreign country wants to ensure continuing support<br />

• No new Australian submarine contracts are anticipated in the foreseeable future<br />

• ASC is currently undergoing a restructure after recently being nationalized.<br />

• It is difficult to adapt their ship making process to the commercial market because<br />

<strong>of</strong> the high cost/high overhead facility due to government requirements<br />

• ASC has a background in project management and design skills but lacks market<br />

strategy and a commercial sales skill base.<br />

• Strategic marketing has not been a core competency.<br />

Issues/Solutions<br />

• Australian government will need to arrive at some solution that assures the longterm<br />

maintenance capabilities <strong>of</strong> the Australian submarine fleet.<br />

• Retaining skills will be an issue due to significant staff reductions.<br />

• Aligning with a larger company (which they’ve done some <strong>of</strong> already – ex.<br />

Compaq) will help get funding.<br />

COMMERCIAL IN CONFIDENCE<br />

35

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