2020 – The Time for Digital Transformation in the Mining Sector
The coronavirus (COVID-19) has changed the world we live in – in unprecedented ways. From the onset of the pandemic, global COVID-19 cases have risen, and social-economic uncertainty has risen with it. Countries worldwide responded to the outbreak by not only implementing quarantines, closing their borders and limiting public spaces but also by encouraging the use of digital resources to sustain economic activity and ensure business continued “as usual”.
For many corporate entities, adapting to this “new normal” meant pushing digital-based agendas, with electronic platforms established overnight to respond to the crisis-induced demands. It’s notable that whilst this sped up the transition towards a more digital world, this has also exposed digital divides between different nations, and social groups within those nations.
Throughout this year, a practical example of this was that businesses were affected by the need for customers to practice social distancing. Moreover, many firms had to implement digital solutions to ensure their staff could work remotely – the mining industry was no exception.
Particularly, the mining industry in South Africa was one of the first industries permitted to resume operational activity during the lockdown (in a reduced capacity, in most cases). One of the primary concerns with this was ensuring that staff and other stakeholders were able to operate safely, whilst remaining efficient – which posed the challenge of translating a new safety protocol to ensure this; such as: the correct means to implement social distancing amongst miners working in proximity underground.
It became imperative that mining companies incorporate a range of technologies in response to COVID-19, both in their corporate activities (attested to by the rise of Zoom, Slack, and other virtual collaboration tools) and at their operational sites, with particular attention being paid to control centres equipped with advanced digital and analytical capabilities.
SAP South Africa industry advisor, Shabir Ahmed, explained: “Advanced technologies such as artificial intelligence and machine learning may also form part of this powerful arsenal of digital technologies, aimed at enabling key decision-makers to monitor, track, and respond to possible business disruptions in real-time.”
One thing is clear from the above, scaled digital transformation is essential for all businesses operating in the modern-day, which includes the mining industry.
However step one is understanding what digitalisation is, and how to make use of this.
According to a report on digital transformation in the mining industry by the World Economic Forum, there are four key themes central to the digitalisation of the mining industry:
Robotics, Automation, and Operational Hardware
Deploying digitally-enabled hardware or tools to improve activities that have traditionally been performed manually or with human-controlled machinery.
Digitally Enabled Workforce
Deploying digitally-enabled hardware or tools to improve activities that have traditionally been performed manually or with human-controlled machinery.
Integrated Enterprise, Platforms and Ecosystems
Linking operations, IT layers and devices or systems that are currently separate.
Next-generation Analytics and Decision Support
Leveraging algorithms and artificial intelligence (AI) to process data from sources within and beyond the traditional value chain, to provide real-time decision support and future projections.
From the above, it’s clear that the mining industry would need a holistic approach to tech-enabled and digital transformation, although it poses step two: “Where does one start?”
Here are a few overall tips that act as a point of departure towards enabling digital transformation. Keep in mind that this is simply a universal frame of reference, and may need to be tailored to the specific context you operate in.
Operational Strategy – Think “Digitally”
Successful company digitalisation requires collaboration between employees across various levels, however, it begins as a mindset that executive management or policymakers must not only understand but wholly support. Consider the following:
– Align strategy and operations towards innovation: Build a focused strategy that incorporates digital, and aligns it with your business model, processes, and organization. This encourages digital usage and experimentation throughout all facets of your company.
– Look outside your bubble: Leaders that effectively connect outside their current portion of the value chain can extract further value, whether it be connecting or engaging in new areas with buyers, suppliers, customers or value-added activities and products.
Technology – Source and Integrate Technology
Many new programmes or software offer demos and trial periods – take advantage of this! Digital solutions will reduce your costs in the long term and most often allow for measurable, trackable insights which can be leveraged to optimise current work practise. Consider SwapX as an example – our platform provides an online, direct contact environment where buyers and sellers of chrome ore can quickly and conveniently make a connection based on an advanced product search criterion.
Human Resources – Grow with Technology
Whilst change and innovation within a company can be exciting, giving you and your employees a chance to correctly learn how to use your new resources is imperative. Consider scaling up new technology or processes gradually, to ensure that all staff are trained and equipped in each aspect of this journey.
Remember the entire premise of “Innovative Digital technology” is that platforms, software, and hardware are constantly being updated and upgraded. Mining companies need to remain constantly vigilant in all things digital and evaluate whether the current digital strategy could benefit from new, emerging trends.
In 2020, the COVID-19 pandemic has highlighted the absolute need for digital transformation across the board. It has also highlighted that mining will play an important role in the global economy’s recovery. But it’s even more important that the mining industry builds back first, and better.