What Can the Digital Transformation Offensive Program Fund?
The Digital Transformation Offensive Program (OTN) — Stream 1 – Support is designed to aid Quebec's food processing industry in adopting digital solutions. The program focuses on enhancing competitiveness and productivity through digital transformation. This article outlines the types of expenses that the program can fund, providing a clear picture of how it can support your business's digital initiatives.
Program Funding Overview
The Digital Transformation Offensive Program aims to support food processors in Quebec by funding digital transformation projects. The initiative is crucial for improving process efficiency, addressing labor shortages, and enhancing product traceability. The program is managed by the Conseil de la transformation alimentaire du Québec (CTAQ) and provides financial assistance to businesses ready to embrace digital tools.
Funding Amounts & Rates
The program offers financial support covering 85% of eligible expenses related to training and digital tool implementation. For a typical project costing $25,000, the program can fund up to $21,250, requiring the company to invest the remaining 15%, or $3,750.
Eligible Expenses
Eligible expenses under the Digital Transformation Offensive Program are comprehensive and cover various aspects of digital integration:
Technology Acquisition: Costs related to purchasing digital tools and software.
Training and Development: Expenses for employee training sessions to effectively use new digital tools.
Consultant Fees: Hiring digital transformation experts to guide the implementation process.
Project Management: Costs associated with planning and managing the digital transformation project.
Ineligible Expenses
While the program covers a range of digital transformation expenses, certain costs are ineligible:
Non-Digital Equipment: Costs for non-digital machinery or tools.
Routine Operational Costs: Regular business operation expenses not directly related to digital transformation.
Marketing and Promotion: Expenses related to advertising or promoting digital transformation initiatives.
Expense Documentation Requirements
To ensure clarity and accountability, businesses must maintain detailed records of all eligible expenses:
Invoices and Receipts: Documentation proving the purchase and payment of digital tools and services.
Training Records: Proof of employee participation in training programs.
Consultant Reports: Documentation from hired experts outlining services provided and outcomes.
Examples of Funded Projects
Several projects have successfully leveraged the Digital Transformation Offensive Program:
A food processor implemented an advanced inventory management system, resulting in significant reductions in waste and operational costs.
Another company adopted predictive analytics tools to optimize production schedules, improving efficiency and reducing downtime.
Funding Disbursement & Claiming Process
Funds are typically disbursed as reimbursements. Companies must submit detailed claims with supporting documentation to receive funding. The program processes claims within a standard timeline, ensuring timely reimbursement of eligible expenses.
Stacking Rules
Businesses can combine this funding with other government programs, but total funding from all sources must not exceed 100% of the project's costs. It's important to disclose all other funding sources when applying.
Real-World Budgeting Tips
Maximize Eligible Expenses: Focus your budget on areas most aligned with program priorities, like software and training.
Plan for Ineligible Costs: Ensure your budget accounts for expenses not covered by the program, maintaining financial balance.
Conclusion
The Digital Transformation Offensive Program offers substantial financial support for Quebec's food processors seeking to integrate digital solutions. By understanding eligible expenses and planning effectively, businesses can maximize the benefits of this funding, driving their digital transformation forward.
