Mining Industry Transformation: All Value to Gain and None to Lose
Credit to Author: Joseph McMullen| Date: Fri, 17 Nov 2017 11:21:09 +0000
By Rachel K. Carson (MarCom Intern for Process Industries)
Adapted from IDC Perspective: Mining Industry Transformation written by Emilie Ditton.
When I was young and was fearful of beginning a new, unfamiliar task, my father would often say to me, “You have nothing to lose! Only knowledge to gain.” The same applies for mines who are beginning or continuing to develop their digital mining transformation, as part of the mining industry transformation. Though much hesitation for mining companies comes from lack of digital software knowledge or expertise in new technology, mining companies overall will recognize new areas of value not previously recognized as the outcome of integration operation technology (OT) and IT systems and data. To say simply, mining companies have only value to gain through digitalization applications and no data to lose.
What are some disruptive changes that will come from digitization?
Agile mining operations will change the value that mining companies can create and enable new business models. They will also create opportunities for suppliers and new market entrants for technology and services to the mining sector. Other changes from digitization include of…
- Business models will change through greater automation and interconnection.
- The commercial basis that suppliers of mining companies, equipment manufacturers, services providers, and technology providers operate will change.
- The ecosystem will be interconnected and far more automated.
- Technology investments that mining companies are making will transform the workplace
- New people will be attracted.
- Established operational structures will be changed.
Overall, the transformation is the creation of mining organizations built around agile mining operations. These agile mining operations are operations that enable the utilization of data for decision making processes, within processes, and at an enterprise level, with continuous flow of data and insight at all levels across the mining value chain.
Where can the added value of data be seen the most?
Value additions will not only make your mine more responsive, but will increase overall efficiency and profitability. The list below covers the largest areas of where mines noticing where the value of data appears the most:
CREATION OF VISIBILITY:
- Immediate value in terms of cost savings
- Improved efficiency
- Greater ability to respond faster & smarter with informed action
- This applies to all operational functions, operation of mobile and fixed plant, maintenance, and people.
ABILITY TO PREDICT & CONTROL:
- Ability to use data once it is available, understood, and accurate.
- Data is used within processes to predict outcomes and anticipate negative events.
ABILITY TO INTEGRATE THE FLOW OF DATA:
- Integration of operational technology software and systems with enterprise resource planning (ERP) will enable a level of insight into activities and planning that does not currently exist.
CREATION OF END-TO-END DIGITAL PROCESSES:
- Enables better predictability
- Drives greater automation
- Avoids unnecessary tasks that waste precious time
REDUCING VARIABILITY:
- Manage variability by processing large quantities of data
- Critical part to the transformation
New digital and technical applications allow for positive changes that mines can only benefit from.
Ready to learn more about more value that can be collected from your mine?
Recently Emilie Ditton, IDC, outlined the importance of mining industry transformation and the many areas of value that a mine can collect from it. She also explains how value gained not only increases predictability and decision making but also creates disruptive positive change for business models and technology investments. Download now to learn more.
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