TURKEY’s Up-and-Coming Digital Defence Ecosystem: DAMISE

Yasemin OK- General Manager of Voytes discusses Voytes Defence’s expertise in providing suppliers critical guidance on national and international sector-specific regulations. In this exclusive interview, the company’s focus on innovative and profitable solutions in the defence and aerospace industries, and the challenges faced by suppliers and global firms are outlined

Issue 91

Defence Turkey: Can we please start with an update from you on Voytes Turkey? Why was it established and what has been accomplished so far? 

Yasemin OK: Since 2010, Voytes Turkey has been helping its clients create financial solutions and funding through Government incentives and grants, making extensive use of joint projects with various Ministries, quasi-government organizations, industry associations, universities, local chambers of commerce and industrial zones. To its client base ranging from subsidiaries of global companies and domestic corporates down to SME’s, Voytes has also been providing accounting, tax and financial regulatory consultancy and legal expert services.

In strategic sectors such as defence and aerospace, satellite & space technologies, machinery, metal industries and fabricated metal products, robotics and digital automation technologies, Voytes Turkey used its expertise in the use of incentives and grants to formulate profitable and low-cost investment strategies, and put together complete feasibility studies, creating more sustainable investments in Turkey. 

The 5th Clustering Conference was held at the Ministry of Trade. In the event, best practice examples within the framework of 2017-2018 cluster activities included in the scope of UR-GE (International Competitiveness Development Project) were presented by the project representatives. On behalf of our defense and aviation cluster Voytes Turkey, the project manager, presented to be awarded to “Best Practice Reward” from Ruhsar Pekcan, Minister of Trade of Turkey. We had honored to receive this reward in exchange of our collaboration with this strategic sector.

Through our journey in the defence and aerospace sector, we saw an opportunity to create a company catering to the specific needs of the industry; hence Voytes Defence, as mentioned in the previous issue of Defence Turkey, was born.

Defence Turkey: Can you provide a concise overview of Voytes Defence as a provider of consulting services to the defence and aerospace industries? 

Yasemin OK: As the VOYTES Defence team, we see our mission as encouraging domestic and national production in sectors such as Advanced Technologies, Defence, Aviation, Satellite, Space Ship Industry and Industry 4.0. Voytes Defence creates new clustering and cooperation opportunities in these industries and aims to play an active role in Global Supply Chain Applications.

We provide consulting services for our clients, preparing them to become a supplier to national and international global manufacturers and enter the global supply chain. We help our clients locate where to target with sector related market research reports and Direct and Indirect Offset opportunities, perform a gap-analysis of their capabilities and skillset vs. the expectations of the Global Manufacturers making use of the specific criteria set by each Global Manufacturer targeted by our client, create a roadmap and a time and cost estimation to fulfill the identified gaps and work on a plan to facilitate the financing of this expenditure budget.

Focusing on the industry, we plan to facilitate technology transfer as well as talent sharing and technology development, which we identified as critical capabilities for surviving and thriving in this global arena. 

Our mission is to provide our clients with innovative and profitable solutions in the defence and aerospace industries. In realizing this mission, our vision is to establish close friendships with our customers and be established as a global and respected solution partner.

Defence Turkey: What are your insights about the industry? What are there the challenges that suppliers or global companies are facing?

Yasemin OK: Advanced Technologies, Defence, Aviation, Satellite Space and Ship Industries are strictly regulated, posing many obligations on the suppliers with serious consequences when these are not met. Some of these regulations are national and international standards certifications, import and export licenses such as Facility safety certificate, AS9100 series, AQAP, EASA, FAA, NADCAP, End User Certificate, Nuclear Non-Proliferation Treaty, Chemical Weapons Convention with Biological and Toxin Weapons Convention, Wassenaar Arrangement , Nuclear Suppliers Group, Australian Group, Missile Technology Control Regime and Zangger Committee contracts and agreements. Custom US 97 Codes, NACE codes, NCAGE Code, Duns Number, NAICS Code, NAPCS Code are used for coding and classification of products and systems. Finally, the list of Export Restricted Goods List, Export Preliminary List of Goods, 5201 numbered “Law on Warfare and Materials, and the Law on Inspection of Industrial Firms Producing Ammunition and Explosive Substances,” are some examples of these binding rules. 

It is absolutely critical that a supplier knows about and adheres to all the national and international regulations in order to work in these industry sectors. Getting hold of the right information, understanding the regulation and its requirements, figuring out where and how to apply, how to check and how to proceed are all administrative burdens which must be strictly followed. Each certification and system have their own structure and process, making this even more complicated.

Challenges faced by Suppliers:

Unique supplier procedures of each global company, not always fully documented, hence hard to implement correctly

Long time periods required to complete the bureaucratic procedures to become a supplier

The usually inadequate level of information shared by the global firm 

Non-recognition and implementation challenges of Global Supplier Criteria

Difficulties in measuring and assessing its own readiness level and compliance with the requirements 

National and international industry standards, strict and challenging certification requirements

National and international coding and lack of knowledge of the terms and difficulties of application

Difficulties in accessing detailed information on the sector-specific technical, innovative, academic, legal issues 

The lack of experienced consulting firms knowledgeable and experienced in the industry, making it harder to reach correct information and advice

Challenges faced by Global Firms

Difficulties in reaching the companies that meet their criteria, as there is no database which allows for a search for specific requirements and technical capabilities

Understanding the local rules, procedures and processes in sectoral, academic and legal issues

Finding the right supplier complying with their criteria or at least a best fit, when they are required to work with domestic suppliers to comply with Offset regulations within the scope of localization policies

Defence Turkey: Last but not least, could you explain what DAMISE is? 

Yasemin OK: The Defence, Aerospace and Marine Industrial Supplier Ecosystem: DAMISE, is a digital ecosystem incorporating companies showcasing their products, services and technical capabilities for the defence, aerospace, marine, satellite and space sectors, and industry giants, domestic and global, searching for the right supplier with the required products, services and capabilities.

DAMISE will be a dynamic platform also offering services, information and technical know-how and advice to companies that are already in the sector or planning to enter. Industry-specific certification and documentation providers, vendors of tests and lab equipment, and other companies providing specialized services like insurance companies, law firms, financial institutions will also be present with their tailor-made solutions.

The co-existence of all parties serving the industry will also be a great opportunity to show the capabilities of Turkey as an emerging global player in aerospace & defence.  It will enable commercialization through the capabilities of innovation, R & D and design in the sector and the formation of the required technology transfer within the country.  Finally, domestic and foreign investors interested in these industries will be able to find suitable targets for investment, which will in return strengthen the whole ecosystem.

Defence Turkey: Lastly, would you like to convey a message to our readers?

Yasemin OK: DAMISE will be officially launched in August 2019. We would like to mention that our companies who want to take place in the system as of the beginning can benefit from our special IDEF campaigns by reviewing the video explaining the system from www.damise.com and filling in the application forms