addresses the need for Objective 1 SMEs to embrace new, leading-edge technologies which will significantly improve their competitiveness, and
to stimulate SMEs to invest in innovation in order to develop new products, processes and services. For many Welsh SMEs, the rapidly-
developing knowledge-based global economy has led to enormous changes in business processes and the way in which they organise their work,
and has placed increasing emphasis on the need to innovate and remain competitive. In particular, the new on-line market place is driving
companies to provide solution-led services and products designed to meet a customer's unique and immediate requirements. Markets are getting
smarter, more informed, and faster. Therefore, Welsh SMEs must be helped to become more adaptive and to be able to anticipate and implement
change more rapidly, in order to gain a competitive edge. Those that are the most innovative in their use of technology and adapt their business
processes and products to meet customers' changing requirements and specifications will be the winners, and this will in turn boost the Welsh
GDP. It is therefore becoming vital for many companies to be able to rapidly communicate their ideas and designs to customers in an easily
understood manner. Advances in information and communication technologies (ICT), especially via high performance computer facilities capable
of processing vast amounts of data in real time, can provide a solution to this - Visualisation. Seeing is believing, and is the most intuitive route
to decision making and assessing the impact of changes. The new Virtual Reality (VR) technologies are ideal for a wide range of visualisation
applications, for providing a new way of quickly identifying solutions to complex problems, and for designing new products without expensive
and time-consuming prototyping. They allow customers to visualise a new design, permit high-resolution "walk-through" animations, and enable
users to interact in real time with the model. Virtual reality also has a key role to play in training by creating a more interactive learning
experience, and is particularly useful in many industries where training may have to be undertaken in a hazardous environment or where
equipment downtime must be minimised. One further major issue for SMEs is knowledge management. The growing use of ICT has meant that
most organisations now have to store and process vast amounts of data, both for their own internal processes and to communicate with
customers, suppliers, etc. Turning these huge amounts of information into useable knowledge and ideas requires a totally different approach to
using technology, and the medium best suited to translating data into readily-understood information is visualisation. Visualisation/VR, therefore,
is a rapidly maturing technology that within a few years will become an essential tool for competitive enterprise in many different fields, such as
biotechnology, computer games and simulation software, the development of new materials, pharmaceuticals, geophysical exploration and
environmental studies, renewable energy generation, architecture, engineering design, manufacturing and fabrication, museums and galleries,
heritage tourist sites, etc. The problem for most Welsh SMEs, however, is that the costs of modern VR installations currently prohibit individual,
direct investment. In addition, it is still a comparatively new technology, and the skills required to make effective use of the facilities are in very
short supply. Consequently, whilst many companies can see the need for visualisation technology to provide them with a competitive advantage,
both now and increasingly in the future, they are reluctant to invest in the equipment and skills needed. At the same time, VR technologies are
developing exponentially, and if Welsh SMEs are unable to access and use these facilities, they are in danger of losing their competitive edge to
larger, global companies who have already invested in visualisation technology. Continued overleaf/ Continued/ These are the drivers behind the
proposal to establish the Centre of Excellence, which will be run by a team of expert technical and commercial staff. The team will provide
visualisation facilities for SMEs and public sector organisations throughout Objective 1 Wales, plus familiarisation sessions in visualisation
technologies for SMEs, consultancy in the optimum use of these technologies, provision of appropriate software, and an incubation facility to
encourage the growth of new enterprises. The high-level visualisation equipment at the Centre of Excellence will complement, but differ
significantly from, the medium level VR facilities at UW Cardiff and UW Swansea, and planned for the Digital Technium. Medium level VR
facilities require only moderate HPC facilities, and allow only 1 or 2 observers to visualise an object or an environment in three dimensions. The
Centre's high-level visualisation technology, however, will enable groups of users (potentially up to 10 or 20) to enter into and interact with a
simulated product or environment on a multi-dimensional level and even at a multi-sensory level (e.g. touch). This will allow them to manipulate
and adjust multiple variables and data, and visualise the results in real time with a high degree of realism and accuracy. This "human interface"
is where the Centre will be different from other visualisation facilities in Wales. The other main differentiating factor is that the Centre will focus
on developing the technology for use by SMEs and other organisations, via the application of the Centre's high-level equipment. SME users will
be helped to carry out commercial solution applications, e.g. to model solutions to complex problems without impacting on actual systems or
equipment, to analyse the impact of any changes on specific processes or structures, or to design new products without the need for extensive
prototyping. In addition, the Centre will focus on developing the technology on a multi-platform level, so that there is an easier interface
between the high-level computing facilities in the Centre and the users' own computer facilities, allowing results and images to be distributed
widely. This means that SMEs will have a choice of working at the Centre to produce new designs, prototypes, solutions, processes, etc, or using
their own facilities to work on the project, albeit at a more simple level. The Centre of Excellence will be based in a purpose-built facility located
on the University campus, initially covering 1,800m2 but with scope for expansion to 2,500m2 at a later date. Although based on campus, the
project has been structured to ensure that the Centre will be managed as a separate venture - a centre for Third Mission visualisation and ICT
activities exploiting university Second Mission programmes. The activities undertaken by the Centre will focus primarily on commercial (revenue-
generating) projects in support of Objective 1 SMEs. Some technology development will also be essential to ensure that the Centre is innovative
and remains at the forefront of visualisation technology, producing jobs and companies at the forefront of this new technology. The Centre's
activities will include: ط Visualisation Consulting: The scope of this work will cover technical consulting for Welsh SMEs, i.e. the provision of
expert advice on visualisation technology and all related hardware and software for companies wishing to find out more about the technology or
to develop their own systems, and solution consulting, which will focus on solving specific issues or complex problems within industry, e.g.
modelling process streams, materials and three-dimensional objects (buildings, molecules etc.). Typical projects could include 3-D modelling of
the impact of mine waste management on watercourses and modelling of changes to land use (e.g. the development of on-shore and off-shore
wind-farms). The Centre will also undertake commercially-orientated project work (e.g. to develop and licence a specific 'product' or application)
which is sponsored by an external client. ط Technology Transfer: The Centre will work with Objective 1 SMEs to enable them to become more
familiar with visualisation as a technique and also to help them use visualisation as an enabling tool. This will include short familiarisation
sessions for companies and also help for SMEs to develop specific training packages/products for their clients where visualisation is used to
simulate certain environments and tasks where direct experience of the task is not feasible due to its nature (e.g. rare events, hazardous
environment, etc.). ط Facility: The Centre's visualisation equipment and high performance computing facility will be made available to SME users
from the Objective 1 area. The market research and case studies undertaken to date has already stimulated considerable interest from SMEs,
from different sectors, in the potential use of the Centre's facilities to help them develop innovative new products for their businesses. ط
Incubation services: Space will be allocated for start-up companies to gain access to the equipment and staff. Such companies would be from the
emerging technology sector and have innovative ideas to sell to the market place, and it is anticipated that the service will encourage University
"spin-out" companies to be formed. Continued overleaf/ Continued/ ط Innovation: In order to remain at the cutting edge of visualisation,
developing innovative, practical applications of the technology will be an integral part of the Centre's use, and developing and licensing new
products for SMEs will be an important ingredient of the Centre's activities. To deliver these services, the Centre of Excellence will be a project of
considerable scale and importance. The initial start up will require investment of c.£2.95m for the visualisation and ancillary equipment plus
c.£4.49m for the building/land, and c.£2.34m for the project support staff and other running costs. The financial model for the project shows
that break-even is expected in year 5, and that even with the on-going expenditure needed to maintain the visualisation equipment at the
leading-edge of innovation and technology, the Centre represents a viable long-term business proposition. A project of this scale will have a
substantial positive impact on the region, both in terms of the economic benefits represented by the creation of new jobs, enhanced turnover
amongst existing Objective 1 SMEs and the birth of new high tech companies, but also with regard to the raising of the regions' skill base and its
overall technological profile. The demand for the technologies and services to be made available to Welsh SMEs via the project has been
assessed by undertaking a benchmarking study, a market research survey which formed part of a detailed Scoping and Feasibility Study,
interviews and sector-specific case studies/scenario-building exercises. The Centre of Excellence has been taken forward by a Steering Group,
and has been designed to be a long-term, self-sustaining commercial venture. This project is an application for Objective 1 ERDF funding to
pump-prime the first three years of the Centre's development, and is essential to recruit the technical support staff needed to encourage and
assist SMEs to use and exploit the technologies, to contribute to the construction of a high quality, business-friendly building to house the
visualisation/VR equipment, with technology transfer and incubation facilities, and to add the Hemispherium, which would be unique in the UK.
Without the Centre and its commercially-orientated supporting staff, the impact that the visualisation equipment could make in transferring
knowledge to, and thereby increase the competitiveness of, Welsh SMEs, would be severely limited. The project will be directed by a Board of
Directors representing all stakeholders, with the Chairperson elected by the members. By the end of the 3-year period covered by the Objective 1
project, the Centre itself will create up to 211 new high value jobs across the Objective 1 region, and safeguard a further 411 jobs. These figures
are directly related to the Centre's activities and take no account of the indirect economic benefits that the Centre will generate. Likewise, the
project will encourage the development of around 70 new high tech/knowledge-based sector companies, many of whom will be spin-out
developments or will make extensive use of the Centre's incubation facilities. By the nature of the project, these results are likely to increase
significantly over the longer-term. With investment in R&D currently standing at 0.6% in Wales compared to 2.6% in England, there is a clear
need for projects which are focused on stimulating Welsh SMEs to invest in research and innovation in order to develop new products, processes
and services, and to work more closely with Higher Education Institutions to derive added value from their research work. The Centre of