Digital Transformation Offensive program (OTN) — part 2 : optimisation

The Quebec Government, through the Ministry of Economy, Innovation, and Energy, is offering a grant of $2.64 million to support food processing companies in adopting digital solutions and enhancing their business processes. The grant aims to improve competitiveness, productivity, and traceability in Quebec’s food processing industry.

The Digital Transformation Offensive (OTN) Grant, administered by the Conseil de la transformation alimentaire du Québec (CTAQ), is designed to help food processing companies in Quebec transition to digital technologies. This transition is crucial for enhancing productivity, competitiveness, and overall business performance in the industry. Key Objectives: - Accelerate the digitization of food processing companies. - Attract digital technology manufacturers to Quebec. - Enhance automation and robotization to address labor shortages. - Support traceability initiatives for food product origins. - Ensure continuity and reliability in the supply of food products. Eligibility Criteria: To qualify for the grant, companies must: 1. Be a food processor (not applicable to agriculture or related sectors such as transportation, packaging, or technology providers). 2. Have completed a digital diagnostic, with potential subvention support from Investissement Québec. 3. Have a simplified strategic plan in place. 4. Demonstrate the ability to co-fund at least 40% of the total project cost (e.g., $10,000 for a $25,000 project). 5. Have the human resources required to complete the projects within a 16-week timeframe. 6. Achieve a minimum of $1M in revenue in the previous fiscal year. Program Structure: The OTN Grant program is divided into two complementary streams: Stream 1: Implementation Support for Digital Solutions This initial stream focuses on aiding businesses in establishing a thorough digital plan. Companies can receive assistance in: - Selecting, purchasing, and integrating technological solutions. - Formulating a comprehensive action plan tailored to the company’s specific needs. - Ensuring the seamless integration of digital tools into their business processes. Stream 2: Optimization and Enhancement Upon the successful implementation of digital tools, this stream assists companies in optimizing and fully leveraging these technologies. Support includes: - Data warehousing and organization. - Business Intelligence (BI) solutions. - Exploration and application of Artificial Intelligence (AI) for predictive models and machine learning. Managing Change and Workforce Training Successful digital transformation requires effective change management and continuous training for employees. The CTAQ emphasizes the importance of organizational change and skill development to support this transition. The Quebec Ministry of Labour (MTESS) offers programs to aid workforce training, covering up to 85% of training expenses. Companies interested in this can contact their regional MTESS office.

Understanding the Need for Digital Transformation The evolving landscape of manufacturing industries necessitates a shift towards digital technologies. This necessity is heightened in the food processing sector, where efficiency, traceability, and supply chain integrity are paramount. The CTAQ recognizes several critical challenges in this sector: - Maintaining competitiveness on a global scale. - Tackling labor shortages through automation and robotization. - Upholding food safety and origin traceability. - Guaranteeing sustained food supply chains. Eligibility and Application Process The OTN grant is accessible to all Quebec-based food processing companies that meet the specified criteria. The application process involves: 1. Completing a digital diagnostic to assess current digital capabilities. 2. Developing a simplified strategic plan. 3. Securing the required co-funding. 4. Ensuring adequate human resources for project implementation. 5. Submitting necessary financial documentation to demonstrate revenue requirements. Step-by-Step Application: - Complete the diagnostic: Engage with Investissement Québec to potentially offset costs. - Develop a plan: Outline mission, vision, and strategic axes. - Demonstrate financial capability: Prepare evidence of ability to cover 40% of project costs. - Submit supporting documents: Gather financial statements and other relevant information. - Formulate an application: Use the forms available through the CTAQ and submit them to otn@conseiltaq.com. Program Streams and Their BenefitsStream 1: Implementation Support Companies receive guidance on the: - Selection of digital tools: Identifying suitable technologies to address business-specific challenges. - Purchase and integration: Ensuring the chosen solutions are effectively integrated into the existing business processes. - Action plan development: Creating a tailored roadmap for digital adoption, ensuring all steps are clear and achievable. Stream 2: Optimization and Enhancement After implementing the initial digital solutions, further assistance is provided to: - Optimize data handling: Establish robust data warehousing solutions to manage and utilize data effectively. - Implement BI solutions: Gain insights from data through advanced business intelligence tools. - Leverage AI: Explore the use of artificial intelligence for predictive analytics, improving decision-making and operational efficiency. Training and Change Management Digital transformation entails significant changes in workflows and processes. Therefore, it is essential to manage change and provide continuous training to employees. The CTAQ, in collaboration with MTESS, supports this via: - Change management strategies: Ensuring employees are guided through the transition smoothly. - Training subsidies: Covering a substantial portion of training expenses to upskill employees, ensuring they are adept at using new technologies. Key Integrators and Support The CTAQ suggests several expert integrators who can assist companies in both streams. Recommended integrators include: - Coboom: Specializes in digital transformation strategies. - Productique Québec: Offers expertise in implementing and optimizing digital solutions. Companies are, however, free to choose their preferred consultants, provided they are not technology solution providers. Project Timeline and Financial Commitment Projects under the OTN must be completed within four months from the contract signing date between the CTAQ and the applicant company. While the program officially ends on June 30, 2025, reasonable extensions can be requested if necessary. Financially, companies must: - Invest at least 40% of the total project cost. - Verify that the project budget aligns with the grant’s maximum funding limit of $25,000. - Ensure the project can be managed within the allocated timeframe and budget. Conclusion The OTN grant is a significant opportunity for Quebec’s food processing sector to embrace digital transformation. This initiative promises to enhance productivity, improve competitiveness, and ensure the efficient traceability of food products. By leveraging digital technologies, companies can address labor shortages, streamline operations, and maintain high standards of food safety and supply continuity. Additional Information For further details, companies can contact Sylvie Bouchard, Vice-President of Business Development at the CTAQ, or visit the CTAQ’s official website to access the forms and detailed guidelines.