World Monitor Mag, Digitalisation WM_June 2019 web | Page 44

EXPERT OPINION
Four steps for transforming
mining and metals companies
There is a growing disconnect between the potential and reality of digital
transformation in the mining and metals sector. As a result, the top risk that
the sector faces today is digital effectiveness. Given that digital has become
a key enabler of margin improvement and enhancer of competitiveness in
the sector, it is critical that organizations develop a clear approach to bridge
this disconnect.
Baurzhan Kasimov,
Director,
Advisory services, EY
Digital solutions are being adopted, but
usually as point solutions in the value chain
rather than as a holistic approach. Point
solutions will not get us to the next level of
productivity improvement or enhance end-
to-end decision-making.
The collective impact of these challenges can
result in a tentative approach to strategy –
reflected by small, disconnected initiatives
– rather than a strong commitment to a
multi-year transformation approach. Digital pre-start component covers work
such as establishing a clear vision, creating
a linkage between productivity and your
digital agenda, and understanding your
current digital maturity. It is critical at pre-
start to set up stretch measurable goals
or KPIs so that the vision is grounded
in tangible targets and the program’s
effectiveness can be measured throughout
each wave.
Digital wave approach to
transformation Wave 1: Find ways to optimize and
automate
To transition their business from its current
state to an improved future state, mining
and metals companies need a pragmatic
and effective approach that creates a clear
pathway for transformation. This approach
is specifically described as ‘the digital wave
transformation approach’. Wave 1 activities will add business
value through local optimization or
automation. Generally these initiatives
will not require a change in your existing
operating model and won’t in themselves
be transformational. They will start the
process of transformation without having
to manage a web of complex organizational
interactions or by introducing unacceptable
levels of business risk. This is not to say
that Wave 1 work should be siloed or
ungoverned – instead, the work must
be carefully prioritized, linked to the
productivity agenda and selected with a
view to integration during the next wave.
The digital wave transformation approach
is like a series of waves moving through the
organization, steadily introducing more digital
hotspots and interconnections, all within a
coherent overarching strategy. It meets the need
of having an active, progressive and compelling
digital strategy, while also recognizing the issues
associated with business risk and maintaining a
coherent program of work.
This wave approach to digital transformation
contains four main components – Digital Pre-
start, Wave 1, Wave 2 and Wave 3.
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Digital pre-start:
Establish your vision
We see many of the technologies and
processes within Wave 1 being available for
implementation within the next 18 months
– indeed there are many initiatives already
being actively pursued in the sector.