By Rachel K. Carson. MarCom for Process Industries
Adapted from IDC Perspective: Mining Industry Transformation written by Emilie Ditton.
We have been talking a lot lately about the technology aspect of digital mining transformation and the huge impact that it is making on the overall mining industry transformation. However there are still a lot of unknowns to the process; and most of them come from buying of technology. Which digital systems are best? What options are best for my mine and its entire supply chain? How do I go about implementing these strategies? Consider our advice and “actions to consider” below, such that many of your mining questions may have solutions.
Advice for the technology buyer…
The mining industry is at very early stages of transformation. As the dynamic of the future of mining shifts, companies that have joined or will join the transformation will realize operational value and increased profitability that it will bring. This comes from holistic planning, organizational change, and process reengineering; all of these are the required parts of creating the scale.
IDC Energy Insights’ provides the following “Actions to Consider” timeline of guidelines, for mining companies, that are taking steps in the transformation.
- Assess the business level of capability in each of these five dimensions.
- Operating Model
- Identify your transformation strategy.
- What level of maturing is optimal for your company?
- Initiate and enable strong state of leadership in early stages of transformation.
- Diagnose the leadership capabilities for each area regarding its ability to create and execute the vision for digital transformation of the company and its ecosystem(s).
- Assess if there are adequate driers and recognition in place among senior leadership.
- Is the technology-led transformation able to enable what the business strategy is? Is senior leadership willing to act? What are the barriers to action?
- Develop a holistic digital strategy
- Starting with an assessment of capabilities that you have in place now across the five disciplines.
- An understanding of where you are trying to get is critical; the next step will be the assessment of how to get there.
- Implementation will need to be punctuated by short-term achievements.
- Clearly articulating wins to internal stakeholders will be critical.
NEXT 12-24 MONTHS…
- The digital mining strategy and road map will need to be embedded within
- Strategy will also need to be orchestrated with functional delivery across the business and value chain.
- The roles in place across the mine site operations will need to undertake significant organizational restructure
- This will enable the change; for some companies, this will be the IT group, and for others, it will be a separate group concerned with enabling and implementing end-to-end digital processes.
- The restructure will affect process, structure, skill sets, incentives, roles, and communication.
- The ability to improve in maturity will largely depend on how organizations can effectively create organizational focus and integration of new agile mining operations.
NEXT 24-36 MONTHS…
- Top priority will be to enhance and further develop capabilities for operational agility.
- All technology that is chosen within the first 24 months will essentially “build the foundation” which enables agility. (This is based on the availability of data.)
- Critical also is the organizational restructure that is focused on breaking down silos.
- Work with supply chain, OEMS, contractors, and other external partners to develop intelligence.
- Feedback loops to drive rapid operational improvements and success.
Remember that digital transformation does not happen instantaneously. The transformation is a journey. You will need to understand within your road map what initiatives can be deployed utilizing agile practices and what will require delivery against a road map.
Eager to learn more about digital mining transformation and more advice for technology buyers? Read the IDC Perspective…
Recently Emilie Ditton, IDC, outlined advice and actions to consider for technology buyers in today’s digital mining transformation. She explains how digital transformation is a journey and what are the adequate and best practice steps that buyers can be taking to achieve the most optimal level of mine maturity the quickest. Download now to learn more.