REGIONAL DIGITISATION PTY LTDACN: 636 906 029

DELIVERING WORLD-CLASS DIGITAL SOLUTIONS FOR REGIONAL COMMUNITIES

Thai Bui

Managing Director

thai@regdig.com

0409 273 806

regdig.com

Stuart Quigley

Regional Director

stuart@regdig.com

0419773007

EXECUTIVE SUMMARY▪ Regional Digitisation has developed a Fully-Integrated Regional Marketplace

Ecosystem that will create efficient new digital sales channels for regional communities.

▪ The community will benefit directly from more profitable growth, increased business productivity and significant savings in fuel costs and carbon emission reductions. The platform also provides social engagement capabilities to bring communities together.

▪ Based on a World-Class technology platform, Regional Digitisation’s comprehensive and scalable program of work will deliver effective and affordable digitisation services to regional businesses by:

▪ The creation of a commercially-sustainable digital channel to grow direct revenue for each regional community

(GOAL: Regional Marketplace is self-funding after Year 1 and supports all small/medium regional businesses)

▪ Deliver 50% improvement to the profitability of regional businesses on the platform by removing distribution/middleman costs

(GOAL: Reduce the current 30-45% of distribution cost to 15%, giving the difference directly back to producers)

▪ Create demand for regional ICT jobs and provide on-the-job training to generate high value ICT jobs and retain ICT knowledge in the regions

(GOAL: Generate opportunities to enable regional professionals to stay on in regional areas)

▪ Lower fuel and transportation costs and reduce carbon emissions through a secure last-mile logistics solution

(GOAL: Achieve 30-75% reduction in local truck traffic – Nationally worth up to $1B savings and 1% net carbon reduction)

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DELIVERING WORLD-CLASS DIGITAL SOLUTIONS FOR REGIONAL COMMUNITIES

VISIT US AT: REGDIG.COM

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Passionate about Innovation

& Regional Success

We are an innovative Digital Technology and

Business Solutions company with regional offices

in Morwell, Canberra and Brisbane, dedicated

to serving regional businesses and their local

communities.

Over 75 years of corporate experience in:

• Technology Management

• Business Innovation

• IT & Business Transformation

• Digital Commerce

• Product Development

We partner with regional businesses and local

communities to create the optimal digital

transformation roadmaps to meet their needs.

Our Mission

Improve profitability and productivity for regional businesses through digitisation and provide high

value career choices for the next generation of regional talent

We are committed to forming strategic partnerships

for research and collaboration with regional

universities to help create new high value ICT jobs in

regional Australia.

We enable regional innovation and develop local

talent by providing access to global ICT industry skills

& experience.

In a very small way, we hope this will start a

movement for regional Australia to embrace

digitisation to ensure that everyone can be fully

engaged in the digital economy of tomorrow.

Delivering Value

• Make digitisation affordable for regional

businesses to access new and emerging markets

• Provide higher profitability for regional producers

by reducing middleman/distributor costs

• Generate additional intra-regional commerce

through Regional Marketplaces that showcase the

unique products and offers in the region

• Provide ready access to new digital

regional/national channels to market and open up

access to national and export supply chains

• Create high value ICT work to retain local talent

with advanced ICT roles, expanding employee

scope to Agri-Tech, IoT (hardware and platforms)

and Supply Chain Automation

• Bring communities together through tailored

Regional Marketplaces that reward local

purchasers with fresher produce at lower cost

• Leverage global commercial networks to curate

unique premium global products at lower cost

• Optimise Digital Marketing investments by

integrating Visitor Economy businesses onto a

common Regional Marketplace platform

• Implement an innovative “load-sharing” platform to

lower the cost of logistics and create new pathways

to revenue

REGIONAL DIGITISATION OVERVIEW

REGIONAL DIGITISATION: MISSION & OPERATING MODEL

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… with Enterprise-Grade Operating Model

Delivering World-Class Platforms to Regional Businesses and mitigate technology & business risks

Regional Digitisation has developed an End-to-End Digital Regional Marketplace Ecosystem, based on the World-Class Odoo v13 Platform, tailored to meet the needs of regional communities.

The Regional Marketplace is designed to increase intra-regional commerce, provide access to new and emerging markets, and integrate with visitor economy businesses to deliver unique, enhanced visitor experiences across the region.

The Regional Marketplace solution has been purpose-designed to meet regional user needs:

▪ Ease of Use – allows for quicker (lower cost) to build and deploy, low learning curve to self-manage and therefore reduces reliance on expensive ICT skills

▪ Fully-Integrated Industrial-grade Enterprise Resource Planning (ERP) at the core of our solution (Odoo v13)

▪ Unique innovative solution to solve for “last mile” logistics.

▪ Developing Local Professional Services who can support custom integration and complex digitisation requirements

Combining Innovative Solutions…

▪ Deliver sustainable regional revenue growth by partnering with regional communities to create easy-to-use Regional Marketplace platforms to enable easy access to new and emerging markets.

▪ Deliver producer savings by removing “middleman/distributor” costs, with >50% of savings going straight back to producers.

▪ Solve for “last mile logistics” challenge for regional businesses, reducing transportation costs and reduce carbon footprint.

▪ The platform is simple to use and master… just “Drag-n-Drop”Specifically designed with primary producers in mind to help them get comfortable with working in a digital world, at their pace, without heavy upfront investments

▪ Zero Risk as we offer a Software as a Service (SaaS) Solution We have already taken the technical and financial risks to build digital solutions and platforms so that regional communities don’t have to take on technical risks nor heavy capital investment

▪ Communities can choose to reinvest some of the profit back to support a range of community programs such as extra discounts for local customers, digitising local events and jobs for local kids.

▪ We are seeking to partner with Regional Universities to develop and nurture local ICT talent to support their local businesses

Our Business Mission

Improve profitability and productivity for regional businesses through digitisation and provide high value career choices for the next generation of regional talent

NOWREGIONAL OPPORTUNITIES

▪ eCommerce in the US and Australia is growing at 5x the pace of regular retail and this pace is accelerating with Amazon now actively in Australia. David Jones has completely updated their business strategy to have 25% of sales via their online channel by adding new range and cutting back on old products.

▪ Familiarity with, and adoption of, online grocery shopping is creating demand and new opportunities for digitised business & regions to sell their unique regional products to a broader range of consumers who demand premium, exclusive, ethically and sustainably-grown food and produce. In the US, WalMart is trialing the delivery of groceries directly into your fridge!

▪ Online marketplaces are fast-becoming the favourite destination for online shoppers, with almost 70% of Australians visiting an online marketplace or auction site every month, and marketplaces growing at 75%.

▪ Similarly, online booking services have become the standard way to transact with new and recurring customers, from booking a holiday to reserving your favourite table at a local restaurant.

▪ Selling on online marketplaces is now becoming a core part of many retailers’ strategies as a tool to build brand exposure and reach new customers. Refer to the attached graphic – only 1.8% of Australian Online Retailers surveyed by Neto™ in 2018 stated that they don’t intend to sell on marketplaces!

DIGITISATION THREATS

▪ The dominance of search engines means that regional authorities and individual businesses are often competing against each other for the very same Google ad-words. A coherent regional strategy to maximise ROI for digital marketing investments (e.g. Destination Gippsland) is critical for overall regional success and reduce the escalating digital marketing costs.

▪ Modern commerce increasingly relies on Supply Chain software systems to make regular procurement and distribution decisions. If businesses are not operating digitally, they will become effectively invisible to these SCM tools. Digital inventories are just as critical as an EFTPOS machine!

▪ Digitisation is fast becoming a critical issue due to ICT skill and resource shortages in regional Australia. Regional communities need to provide safe and simple pathways (e.g. a regional marketplace) for local business to engage safely in the digital ecosystem. 5

Extracted from Australian Online Retailer Survey

“Selling on Online Marketplace in 2018” Neto Pty Ltd

A REGIONAL MARKETPLACE GENERATES DEMAND FOR LOCAL PRODUCTS AND ENABLE THE REST OF AUSTRALIA TO BUY DIRECTLY FROM REGIONAL BUSINESSES

The Regional Marketplace combines the best features of Horizontal and Vertical Marketplaces.

The Regional Marketplace will enable advanced user-context driven digital interactions, guiding the user to find the right local business to make online bookings or to buy regional product or service offerings.

▪ Enabling local producers to sell more regional produce to local and national buyers. Selling directly via the Regional Marketplace replaces the middleman costs and gets the freshest results to end consumers.

▪ Enables unique regional experiences to be augmented with regional produce to produce an integrated digital ecosystem, exclusive to each region.

▪ Enhance Digital Marketing ROI by delivering up-to-date product data and custom offers to master landing site (such as Destination Gippsland). Enhances the monetisation of tourism promotions (buy event tickets online) and by driving traffic directly into regional business (reserving a table for lunch).

▪ Local businesses and customers can be offered a discount to purchase and supply their produce through the Marketplace. Visitors can now buy your products long after they have left the region.

▪ Create additional income for Service Businesses and their staff by recommending and selling local regional produce at the point of consumption (a hotel customer can purchase a dozen bottles of wine to be shipped home, the same as if they were buying directly from the cellar door)

REGIONAL MARKETPLACE

- ALWAYS ON, 24X7 WEBSTORE- ACCESS TO NEW MARKETS- REMOVE MIDDLEMAN COSTS- TACKLE “LAST MILE” LOGISTICS

AND SUPPORTED BY LOCAL STAFF

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IMAGINE IF EVERY REGIONAL BUSINESS CAN HAVE A 24/7 SHOP FRONT?

ACCESS TO MILLIONS OF POTENTIAL CUSTOMERS IS NOW JUST A SINGLE CLICK AWAY…

… ALLOWING CUSTOMERS TO BUY DIRECTLY FROM

YOUR REGION

INDEPENDENT IMPACT ASSESSMENT (COMMISSIONED BY FEDERATION UNIVERSITY)

Indicates that Regional Digitisation could generate $47.8M of Gross Regional Product(over 10 years) and generate direct employment for 94 local/regional jobs.

INDEPENDENT IMPACT ASSESSMENT (COMMISSIONED BY FEDERATION UNIVERSITY)

Estimates the Regional Marketplace economic impact at +$142M/annum by year 5, which will generate an additional 312 local jobs from the economic growth generated.

Granular

Product &

Services Search

+ Context-driven

Regional

Discovery

END-TO-END DIGITAL MARKETPLACE ECOSYSTEM

Matrix Marketplace

ENABLING GLOBAL COMMERCE

Regional Businesses gain access to

National/International e-Retailers

GROW ONLINE & VISITOR ECONOMY

Customers can now discover unique regional

suppliers of premium/exclusive products

and want to visit the region.

SOLVING FOR REGIONAL “LAST MILE LOGISTICS”

Solve for the high cost of regional last mile logistics with“load-

sharing” solution. Potential to save $1 Billion in regional

logistics costs and deliver 1% net reduction in Australia’s

carbon footprint if adopted nationally.

eg. Producer D picks up palletised goods from C, B and A,

earning extra income & saving truck rolls for other 3 producers.

REGIONAL MARKETPLACE

Combine service experiences with

ability to purchase goods and services

- Integrate Primary Production with

Visitor Economy Services businesses

- Maximise Digital Marketing through

frequent data refresh

- Transactional B2B + B2C Analytics

- Logistics & Aggregation

Each business gets

their OWN Digital

Store Front

SECURE GLOBAL DIGITISATION PLATFROM

• Each business runs their OWN secure hosted

instance of Odoo ERP on the Marketplace Platform

• Each business maintains their own secure login

and controls their own customer, product,

inventory + retail and wholesale pricing data

• Sells into the Regional Marketplace and have

access to National/Global Digital Supply Chains

• Can fully Digitise their business from just webstore

to include POS, CRM, Accounting, ERP, SCM, HR.

Regional Marketplace

Marketplace Platform

delivers >50% SAVINGS on

traditional distribution

costs

A B C D

Visitors and Locals

Digital Channel

REGIONAL “LOAD SHARING” SOLUTION

REDUCED REGIONAL TRUCK ROLLS = +$1BILLION SAVING AND NET 1% CARBON REDUCTIONWe are in discussions with several Australian Universities to form a Joint Venture to bring to life a

globally-unique innovation which has the potential to revolutionize the way regional Australia

transport goods to market, opening up new pathways for them to engage in the digital economy.

Potential savings of between 5%-25% can be achieved to transportation costs in regional areas

(reduce truck-rolls from point-to-point transportation). As transportation generally accounts for

about 10% of distribution cost, this could reflect in savings between $10M-$50M/annum to the

Gippsland region alone (assume $2B of $7B GDP/annum is from smaller Agri-Business producers).

Expand this nationally, this initiative could provide the nation with a significant productivity boost

of the order of $1B/annum in reduced transportation costs and enable net carbon emission

reductions of around 1% (based on US data, the movement of goods accounts for 9% of

greenhouse emissions annually).

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Australian regional communities increasingly demand ready access to efficient, cost effective regional logistics in order to grow into new markets beyond their

traditional reliance on distributor networks. In Australia, the volume of freight is expected to grow by 35% between 2018 and 2040. However, regional Australia are

at an increasing disadvantage, especially for smaller businesses who may not have consistent volumes nor ready access to major freight corridors. Logistics

present a large barrier to their participation in growing markets for premium Australian produce, both locally and globally.

The load-sharing solution is designed for local primary producers with existing delivery trucks. The solution enables users to pick up additional parcels/products

along their route to a central town or logistics distribution centre. The solution analyses parcel sizing/weight data (sourced directly from inventory specifications

from the Regional Marketplace) with location data to present compatible jobs (based on size, weight, location and most importantly, time). The solution allows the

producer (user of the application) to earn additional freight revenue by choosing to pick up “ready-to-send” parcels along their normal transport route. The time to

take additional detours are also factored into the calculations before further parcels are offered to the user. The local community benefits by reducing the cost of

“last mile logistics” for regional producers, and users benefit by gaining additional income along their normal transportation route.

Co-Loading is a practice that has been successfully used by logistics companies for over 30 years (where competitors share excess space on the same route to

maximize truck capacity and reduce costs). The Load-Sharing solution is a disruptive innovation that will provide regional Australia with a unique technology

solution not available anywhere else in the world. The solution couples the well-proven freight optimization practice with modern “share-riding” software and will

be integrating with advanced ICT technologies to ensure the provenance chain can be maintained (mobile app enables real-time location tracking and can be

augmented with additional IoT sensors for temperature/humidity to ensure products arrive safely and to standards).

TACKLES “LAST MILE LOGISTICS” WITH COMMUNITY SOLUTION

PARCEL/PACKAGE SPECIFICATIONS

The parcels need to be fully packed into boxes or pallets, ready for pick up and transport:

- The parcels have to be pre-labelled, be of a defined weight and size (and in later versions, of product type – such as perishables, needing refrigeration or

time-critical) freight from local neighbours along his route.

- The location of the pick up needs to be within a definable radius (eg, within 15km) of the producer, or within 2 hours of destination target time

- The type of parcel must not be of a hazardous nature (eg. Specific chemicals and compounds, toxic or otherwise incompatible with food handing)

LOAD-SHARING APPLICATION FEATURES

The load-sharing mobile solution will have most of the features of an online ride-sharing app (needs a dedicated mobile app for both Android and iOS)

combining with additional Odoo inventory/logistics based on parcel size, shape, weight, and type. This makes this logistic solution more complex to design but

equally, will be more effective as we do not have to deal with the challenges of transporting and managing the safety of people.

THE LOAD-SHARING APP

The load-sharing app works as a simple ride sharing/taxi booking app:

- The user (driver) logs in his destination (and likely route) and enters his truck’s spare freight capacity (in terms of pallet sizes – eg. Has capacity for 8 pallets

and is half full so he can take on 4 more pallets).

- The platform searches through the list of parcels that need to be sent for that morning/afternoon, apply analytics to calculate possible matches within a

(definable) radius of the producer and then presents these (in real-time) for the user to select.

- Once the producer has clicked on the parcel to accept the job, it is his responsibility to ensure that he picks it up on time, scanning the pick-up details for

tracking, and deliver it to its destination.

- The charges for load-sharing will be dynamically generated by the platform and will include a (small) amount for insurance (for losses and breakages) and

for real-time monitoring, tracking and reporting of freight in transit.

- The system will track and analyze drivers and success rates. Good drivers will get larger/closer parcels over time, with lesser ones limited to non-

perishables, lower value freight.

COMMUNITY BENEFITS

Load-sharing reduces commercial traffic congestion on the road and reduces the freight cost of each producer. It will also help bring regional communities

together, enabling regional producers to rely on their neighbours to collect/deliver their goods collaboratively.

This will present a cost-effective freight solution targeted specifically at regional communities to address the “last mile” pick-up and delivery logistic problem.

This solution will provide direct, tangible savings in productivity (time), cost (fuel & maintenance), grow revenue (earn revenue from transport) and reduce

carbon emissions (fewer empty trucks on the road).

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PROPOSITION SUMMARYWorld-Class Digital Transformation

▪ Over 75 years of global ICT executive experience in Innovation and Digital Transformation ensures that we are bringing World-Class Technology and World’s-Best-Practice to the affordable digitisation of regional communities.

▪ This is evidenced through our End-to-End Digital Marketplace based on a Fully-Featured, Open and Affordable Global ERP software platform.

▪ We have a commercially sustainable execution plan, featuring broad community engagement, ownership and shared revenue outcomes to deliver Scalable Digitisation services for Regional Communities.

▪ Shared revenue model ensures that regional communities benefit directly from the investment and can sustain the growth from within their region.

▪ Build strong Regional Community and Academia partnerships to deliver high-value ICT jobs to give more choices to regional professionals to stay on in regional areas.

▪ We are actively working with Federation University to develop their ICT and innovation curriculum and with RMIT to form a Joint Venture to commercialise our unique Intellectual Property for last mile logistics.

▪ We are also collaborating locally to enhance our ability to deliver the program Australia-wide and with export capabilities internationally through JV’s with Australian Universities.

Commercial Model

▪ $1M Grant would enable us to create a Digital Hub in the Ballarat region.

▪ The bulk of the grant will be spent locally to cover start-up costs and includes the training and employment of 10-12 local ICT staff, the implementation of the Regional Marketplace platform, and the digitisation of local businesses to transact on the platform.

▪ The Regional Marketplace will immediately deliver >50% direct savings to producers

▪ Producers are charged 15% of sales, not 30-45% as per current distribution costs

▪ Shared Revenue model

▪ 7.5% to local community, 7.5% to Regional Digitisation

▪ Community owns the marketplace, look and feel, marketing

▪ Regional Digitisation will be the technology provider

▪ Digitisation services for local producers will be $2K for a basic transactional site through to full-customised projects (charged on a time and materials basis).

▪ This compares extremely favourably to the $20K-$75K that a standard digitisation project would cost each producer today

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Stuart QuigleyRegional DirectorDip Food Science & Technology

The West of Scotland Agricultural College

Grad Dip Business Studies

Mt. Eliza Business School

Stuart is a well respected regional leader, having lived and worked

in the Gippsland region for over 30 years. He is an internationally

experienced innovation and relationship specialist with significant

experience in innovation and manufacturing roles in the

corporate, entrepreneurship and Not-For-Profit worlds. Most

recently, Stuart was the Chair of AgriBusiness Gippsland Inc.

A strong track record in stakeholder engagement, collaboration,

strategic and change management rounds out his skills and

expertise. He is passionate about innovation and loves to

challenge boundaries. Stuart has held a variety of senior

management roles as well as serving on voluntary boards and

running a consulting business.

• Innovation and research strategy expert

• Research and Development

• Innovation best practice and research partnerships

• Stakeholder engagement and collaboration

• Key international strategic research partnerships

Thai BuiManaging DirectorBE Elec (Hons)

University of QLD

GradDip Computing

Deakin University

A Transformative Digital Innovator and CxO technology executive dedicated to delivering affordable digitisation to regional communities in Australia and abroad.

Thai is highly regarded as a champion of innovation, with a proven track record in delivering complex cross-functional Enterprise outcomes. He has a proud history of achievement across leading-edge technology and business transformation programs (+$100M) throughout his career in the IT and Telecommunications industry.

Thai has been recognised with an International Industry Award (Innovative Speech Automation) and has received several Corporate Awards for his executive leadership of Business & IT Transformation programs whilst at Telstra.

Thai has been engaged in Mergers & Acquisitions at a global level. His vision and technology insights have helped create unique Digital Platforms and Digital Ecosystems for SME businesses to disrupt their markets in the Digital economy.

Thai was a strong advocate for regional digitisation in his previous roles and continues to deliver on that vision through the formation of this Digital Business Solutions company.

REGIONAL DIGITISATION LEADERSHIP TEAMCOMBINING DIGITAL INNOVATION WITH REGIONAL LEADERSHIP

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Peter MaundersProgram DirectorBE Elec (Hons)

MBA

University of QLD

Peter is a highly experienced business leader who has

successfully formulated, planned & delivered large portfolios of

programs and projects over a wide range of domains.

Peter possesses excellent leadership, communication &

interpersonal skills and has demonstrated strong management

capabilities in leading & managing diverse teams. He has

extensive experience, qualifications & demonstrated ability to

apply portfolio, program & project management across

commercial, business & technical environments to successfully

deliver end-to-end customer solutions involving business,

product & ICT.

- Portfolio, Program & Project Management

- Planning & Delivery at PMO & Governance

- Product Development

- Commercial Management

- Business Improvement

- Innovation & Change

Dr Barry KitsonChief Information OfficerBE Elec (Hons)

BSc Physics (Hons)

PhD Computer Science &

Electrical Engineering

University of QLD

Barry has extensive experience in System Management and

frequently consults as a Principal IT Architect for large

corporations and Government Health departments. His core

capabilities include the ability to align architectural, technical and

business perspectives, to manage and encourage innovation, and

through continuous, iterative improvement, to deliver true value

to customers.

• International experience developing standards and frameworks

for large-scale distributed systems, including contributions to

ISO, OMG and TINA-C, and exploitation of TM Forum (TMF/NMF)

specifications.

• Deep background in Online systems and processes supporting

Customer Relationship Management (CRM), Identity Management

(IdM), Ordering, Self-Care, Assurance and Billing, from design to

implementation.

• Success building and managing virtual and geographically-

distributed "DevOps" organisational capabilities through Agile,

iterative development and operations processes.

• Health platform experience with Enterprise Master Patient Index

(EMPI) solutions and HL7-based integration.

REGIONAL DIGITISATION LEADERSHIP TEAMBRINGING TECHNOLOGY INNOVATION TO LIFE WITH PROGRAM DELIVERY

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