The mining sector is on the move. Enormous variation in maturity exists, and the gap is increasing — leading companies will success through a focus on scaling innovation, tackling cultural change, and focusing on the foundations — integrated platforms, systems, and incentives.
The mining sector is on the move. Industry leaders have now adopted the mantra of transformation. A shift has taken place moving from outright cost savings to delivering a step change in efficiency and productivity — core to that is focus on operational excellence centered around data, innovation, and a change-orientated mindset. Cultural and organization change will be required to enable the continued delivery of value creation for mining companies through these technology investment and ongoing focus on the foundations of connectivity, security, and data management.
Culture change will be the biggest challenge and ultimately the most critical success factor for value creation from the investments in technology, process, and people. There are other challenges as well, however, mining companies are recognizing the need for simplification of processes and decision making and to facilitate integration of systems, data, processes, and metrics so that the mine can be managed as a system end to end. While this will be a journey for some time, the foundational thinking and action is now in place. Those companies that have not yet recognized the change that is taking place must be aware that there is a widening gap between the leaders and followers. There will be implications in terms of competitive differentiation — access to capital, competition for people, and the ability to compete for customers. As we look forward, we will see the ecosystem of the industry changing, including the key players, the way the industry operates and the business models that can be facilitated. Watch this industry for transformation and change.
Top 10 Worldwide Mining Industry Predictions:
Prediction 1: Mining companies that focus on integrating silos, creating capabilities to enable data insights, and instilling a culture that embraces change will deliver industry-leading efficiency improvement of up to 20% by 2019.
Prediction 2: Companies that prioritize digital transformation at the executive level by 2019 will deliver productivity, efficiency, and/or revenue gains of up to 25%.
Prediction 3: By 2020, 50% of mining companies currently at stages 1 and 2 of IDC's DX maturity model will have moved to stage 3 of the maturity model by implementing corporate digital strategies and digitalized core enterprise and operational processes
Prediction 4: By 2019, 50% of major mining companies will have initiated workforce transformation, focusing on automation, mobility, augmented reality, and cognitive to increase productivity, safety, and collaboration.
Prediction 5: By 2020, 30% of mining industry leaders will have defined and implemented platform strategies to create integrated environments across equipment, integrating maintenance, planning and scheduling, and execution.
Prediction 6: Cybersecurity spending across IT and operations in the mining industry will increase 20% year over year in 2018.
Prediction 7: By 2020, the top 10% of mining companies will have integrated their equipment supply chains to create closed-loop systems that deliver industry-leading improvements in overall equipment effectiveness.
Prediction 8: Mining companies that establish innovation ecosystems, delivery processes, and prioritized road maps in 2018 will successfully deliver three times more projects to full scale beyond 2018 than those that do not.
Prediction 9: 70% of companies that prioritize a holistic digital safety strategy, by digitizing processes, incorporating intelligent tracking and alerts, and applying automation to reduce in-mine labor, will achieve industry-leading safety performance levels by 2019.
Prediction 10: By 2021, new greenfield mine projects, designed to incorporate a technology strategy based on mine equipment autonomy, cognitive capabilities, and IoT, will see as much as a 20% increase in returns on project return on capital employed.
To register for the on-demand web conference on these 10 predictions or to learn more about any of the IDC FutureScape Web Conferences, please visit: https://www.idc.com/events/futurescapes.
You can find full context around these predictions in the newly published document, IDC FutureScape: Worldwide Mining 2018 Predictions (Document idc.com. Technology leaders and their counterparts in the line-of-business (LOB) operations can use this document to guide their IT strategic planning efforts.) on