Guardian Global technology

2. Guardian Global technology R&D In An SME

3. The Problem………… Your start-up business plan depends on you developing a new electronic product which can operate 5km below the earth’s surface, in chemicals which reduce the strength of mild steel to that of balsa wood, at temperatures of up to 1800C (3500F) and pressures of up to 20,000 psi, and it has to operate reliably and continuously fordays at a time. If it fails it can take up to 24 hours to remove and replace the equipment and the cost of the rig which operates the equipment is £250,000 per day!

4. Your Resources…… You have at your disposal a ball of string, a Black & Decker drill and a roll of sticky-back plastic!

5. Introduction • R&D or D&D – The difference…. • Guardian – Our Business • Why Guardian needs ‘R&D / D&D’ • Case History – Addressable Release Tool (ART) • Incremental Innovations • Summary

6. Background Iain Maxted -Managing Director • 17 years in the oil & gas industry – Operations, manufacturing & product development Guardian Global Technology • SME employing 10 • T/O: ~£1m • Location: Pyle, Bridgend • Products: Downhole Oil & Gas Measuring Instruments • 95% of production is exported

7. Logging Operations

8. Design & Development “To R&D or D&D, that is the question” • Fundamental research – universities & large corporations • New product design & product improvement – anyone • ‘Innovate or die’ • D&D = Integration of ideas, technology & knowhow

9. Design & Development

10. D&D – Who Needs It?? • We do (and so do you!) • Competitors – Schlumberger, BakerAtlas, Halliburton – they’re BIG!

11. Addressable Release Tool - ART Our First Product – Scary!! • Client suggestion • Little or no competition • Stand-alone product, compatible with competitors equipment How do we develop it? Gulp!

12. Addressable Release Tool - ART

13. Pressure • Need to test to 20,000psi+ • No capability in S.Wales • 3-4 companies in Aberdeen - £300-500 per day Enter the ‘Guardian Pressure Rig’……

14. Pressure Rig

15. Temperature • Need to test tool electronics to 1800C (3500F) • Easy!! We Bought a Baby Belling

16. Small Innovations My Amazing Lettuce!!

17. Our BIGGESTsmall Innovation Pressure • Pocket Production Logging String – PPL • 1990 – 40 feet long • 1997 – 5 feet • Sold 12 tools = >£500k Capacitance Gamma Ray • Short, ‘all in one’ production logging tool • Measuring Pressure, Temperature, Fluid Di-Electric, Gamma-Ray and CCL Temperature CCL

18. Other Incremental Innovations • Replaced plain bearings with needle rollers; • Designed open flowmeter cage; • Used titanium for flowmeter impeller; • Utilised ceramic insulator in capacitance tool; • Added pressure-isolation to each head;

19. We didn’t always get it right……… A New Flowmeter Product • Better capabilities; • Lower cost; • What client’s said they wanted; • Ahead of its time; But it didn’t sell??? • Different to what the industry was used to

20. Summary • Small companies can do D&D; • New Product/Service; • Improved Product/Service; • Incremental improvements can give competitive advantage; • The ONLY way to survive

21. Guardian Global Technology Thank you for your attention

22. Ready for the next Step? GET INNOVATIVESTAY COMPETITIVEA UNIQUE MEMBER OFFER Log onto www.innovation-network.org.uk ================================= Next InnovationNetwork event: 12th October – Adding Value To Your Business: • Living Innovation 2004: DTI National Event • Cardiff Centres of Excellence Presentation • Speakers: Simon Woodroffe, founder of YO! Sushi Sir Christopher Evans, biotechnology professor and entrepreneur To attend or more information email: innovation@cardiff.ac.uk