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The Digital Mine: Automation, Tech, Big Data, And Analytics Fuel Growth

Samir Damag

06 Nov 2013 --- Dumper trucks in surface coal mine --- Image by © Monty Rakusen/CorbisRapid change is happening in the mining industry, as companies assess how to use new technology and embrace digital transformation.

Analytics programs capture and crunch data from many sources and build real-time dashboards. These tools allow decisions that had formerly taken weeks and months to be done in minutes and hours.

Output volume has long been the measure of mining success. Today, companies use technology to coordinate demand and production and improve yield. Better operations and control systems than ever are possible. That means companies must invest in tools and analytics that will allow them to become a modern digital mining company.

Transformation drivers

There are six main drivers of transformation in mining:

  1. Productivity. Mining is still an intensely capital-driven business. The evolving business requires new technologies to improve operations, including drilling, blasting, and material hauling.
  1. Automation. More devices today are equipped with sensors to track, measure, record, and send data. Sensing machines now allow for driverless trucks, trains, and detection devices. Used correctly, these will reduce safety risks. Labor shortages on remote sites will not be as detrimental to operations. Retrained employees can manage machines remotely, from a safe distance.
  1. Innovative technologies. As wreless devices and sensors become more affordable, firms are using existing tech in new ways. For example, some companies use gaming software to train workers using virtual simulations.
  1. Compliance. With increasing local, state, and federal regulations, compliance is a key driver. Technology makes operations safer and allows for better data collection and reporting on environmental, health, and sustainability issues.
  1. Sustainability. Environmental issues are driving change. Water usage guidelines add costs and are a big risk to the viability of existing mine sites. Energy demand is shifting away from carbon-based and nuclear products and toward renewable energy models.
  1. Cybersecurity. With increasing use of smart products and massive databases, the risks are heightened. Along with virtual threats, device-equipped tools are at an increased risk of physical theft.

Bonus: Click here to learn more about Digital Transformation in Mining

Let’s take a look at some examples of how digital transformations are taking place.

Real-time operational decisions

To improve operational performance today, increased technology use is a given. Radio-equipped mining vehicles and personnel tracking devices can feed data to central databases. Software systems use provided data in sync with mapping, modeling, and estimation data.

All this information is sent via inexpensive wireless networks, resulting in more accurate projections. Production management dashboards and analytics are fed to the work site, where workers can access the information on mobile devices for fast, data-driven decisions.

Big Data and modeling drive discovery

Perhaps one of the greatest threats to mining today is the dwindling supply of Tier 1 mining sites. Declining yield and poorer mined product grades compound the scarcity issue.

To reduce costs, firms need better information about where and whether to dig, with fewer unknown factors when looking for ore deposits. Technology is making those decisions easier and faster.

One example is assay analysis. Geologists no longer need to wait months for results. Apps let equipment and staff send data from remote locations to servers in the cloud.

This information on field operations, safety, maintenance, and drilling performance is critical. It can then be augmented by information on mine planning, ventilation, safety, rock engineering, and mineral resources.

This metadata allow mine employees to make much better choices about site selection. Results from those activities are merged with supply costs and market pricing. This mega metadata then informs future decisions at that site or similar ones.

What digital transformation means for mining

Transformation needs to infuse all areas of mining companies. Business models must reconsider approaches to work. Processes need to be reevaluated. Workers need to interact in ways that break down silos.

Consider production assumptions. In a new demand-driven model, factors like weather, competition, and supply availability play critical roles. Production could respond to customers and markets more quickly than in supply-side models.

Collaboration also must be embraced fully. Data should be shared with suppliers and customers, even competitors. Orders of blended products are possible when working with other firms. Equipment makers seeing analytics may recommend new procedures and change future versions of products.

Sustainable sourcing of water and energy can be tracked in real time. Supply chains will be more agile, responding to real-time transmissions. As work site changes are made on the fly, supply procurement can and must change as well.

The digital mine is safer. Remote control centers can be thousands of miles away. Smart machines will diagnose problems or needed maintenance and send data wirelessly. Hazard and gas detection can be fully automated.

Unified training programs can be accessed remotely. As more mining workers are contractors, training remains consistent. Certifications and qualifications are standardized across the firm.

Back-office functions also improve, with tasks such as invoicing and payment processing becoming more automated and less dependent on manual labor.

Conclusion

The digital mine is here. Technological innovations allow mining companies to be more nimble and profitable. Transformation is vital to future success, especially given growing price pressure and poorer material quality. Companies that embrace digital transformation will be best suited to leverage technologies for healthy gains.

Join a LiveTwitterChat on digitalization in mining on May 4th from 10-11 a.m. EST: #digitalmining

The global mining and metals industry comes together to discuss the impact of digital innovation July 12-14 at the International SAP Conference for Mining and Metals in Frankfurt, Germany.  Find out more and register. Don’t miss this opportunity to meet with world leaders and learn how your organization can become a connected, digital enterprise.

AA Mining and Metals Forum

Follow speakers, attendees, and pre-event activities on Twitter at sapmmconf and @sapmillmining.

 

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Samir Damag

About Samir Damag

Samir Damag is solution manager for the Mining and Metals Industry Business Unit at SAP. He is responsible for assessing customer and market requirements and supporting mining and metals strategy for SAP. Through co-innovation projects with customers and partners, he is discovering key trends and best practices in the application of new technologies for the mining and metals industry.

Data Analysts And Scientists More Important Than Ever For The Enterprise

Daniel Newman

The business world is now firmly in the age of data. Not that data wasn’t relevant before; it was just nowhere close to the speed and volume that’s available to us today. Businesses are buckling under the deluge of petabytes, exabytes, and zettabytes. Within these bytes lie valuable information on customer behavior, key business insights, and revenue generation. However, all that data is practically useless for businesses without the ability to identify the right data. Plus, if they don’t have the talent and resources to capture the right data, organize it, dissect it, draw actionable insights from it and, finally, deliver those insights in a meaningful way, their data initiatives will fail.

Rise of the CDO

Companies of all sizes can easily find themselves drowning in data generated from websites, landing pages, social streams, emails, text messages, and many other sources. Additionally, there is data in their own repositories. With so much data at their disposal, companies are under mounting pressure to utilize it to generate insights. These insights are critical because they can (and should) drive the overall business strategy and help companies make better business decisions. To leverage the power of data analytics, businesses need more “top-management muscle” specialized in the field of data science. This specialized field has lead to the creation of roles like Chief Data Officer (CDO).

In addition, with more companies undertaking digital transformations, there’s greater impetus for the C-suite to make data-driven decisions. The CDO helps make data-driven decisions and also develops a digital business strategy around those decisions. As data grows at an unstoppable rate, becoming an inseparable part of key business functions, we will see the CDO act as a bridge between other C-suite execs.

Data skills an emerging business necessity

So far, only large enterprises with bigger data mining and management needs maintain in-house solutions. These in-house teams and technologies handle the growing sets of diverse and dispersed data. Others work with third-party service providers to develop and execute their big data strategies.

As the amount of data grows, the need to mine it for insights becomes a key business requirement. For both large and small businesses, data-centric roles will experience endless upward mobility. These roles include data anlysts and scientists. There is going to be a huge opportunity for critical thinkers to turn their analytical skills into rapidly growing roles in the field of data science. In fact, data skills are now a prized qualification for titles like IT project managers and computer systems analysts.

Forbes cited the McKinsey Global Institute’s prediction that by 2018 there could be a massive shortage of data-skilled professionals. This indicates a disruption at the demand-supply level with the needs for data skills at an all-time high. With an increasing number of companies adopting big data strategies, salaries for data jobs are going through the roof. This is turning the position into a highly coveted one.

According to Harvard Professor Gary King, “There is a big data revolution. The big data revolution is that now we can do something with the data.” The big problem is that most enterprises don’t know what to do with data. Data professionals are helping businesses figure that out. So if you’re casting about for where to apply your skills and want to take advantage of one of the best career paths in the job market today, focus on data science.

I’m compensated by University of Phoenix for this blog. As always, all thoughts and opinions are my own.

For more insight on our increasingly connected future, see The $19 Trillion Question: Are You Undervaluing The Internet Of Things?

The post Data Analysts and Scientists More Important Than Ever For the Enterprise appeared first on Millennial CEO.

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Daniel Newman

About Daniel Newman

Daniel Newman serves as the Co-Founder and CEO of EC3, a quickly growing hosted IT and Communication service provider. Prior to this role Daniel has held several prominent leadership roles including serving as CEO of United Visual. Parent company to United Visual Systems, United Visual Productions, and United GlobalComm; a family of companies focused on Visual Communications and Audio Visual Technologies. Daniel is also widely published and active in the Social Media Community. He is the Author of Amazon Best Selling Business Book "The Millennial CEO." Daniel also Co-Founded the Global online Community 12 Most and was recognized by the Huffington Post as one of the 100 Business and Leadership Accounts to Follow on Twitter. Newman is an Adjunct Professor of Management at North Central College. He attained his undergraduate degree in Marketing at Northern Illinois University and an Executive MBA from North Central College in Naperville, IL. Newman currently resides in Aurora, Illinois with his wife (Lisa) and his two daughters (Hailey 9, Avery 5). A Chicago native all of his life, Newman is an avid golfer, a fitness fan, and a classically trained pianist

When Good Is Good Enough: Guiding Business Users On BI Practices

Ina Felsheim

Image_part2-300x200In Part One of this blog series, I talked about changing your IT culture to better support self-service BI and data discovery. Absolutely essential. However, your work is not done!

Self-service BI and data discovery will drive the number of users using the BI solutions to rapidly expand. Yet all of these more casual users will not be well versed in BI and visualization best practices.

When your user base rapidly expands to more casual users, you need to help educate them on what is important. For example, one IT manager told me that his casual BI users were making visualizations with very difficult-to-read charts and customizing color palettes to incredible degrees.

I had a similar experience when I was a technical writer. One of our lead writers was so concerned with readability of every sentence that he was going through the 300+ page manuals (yes, they were printed then) and manually adjusting all of the line breaks and page breaks. (!) Yes, readability was incrementally improved. But now any number of changes–technical capabilities, edits, inserting larger graphics—required re-adjusting all of those manual “optimizations.” The time it took just to do the additional optimization was incredible, much less the maintenance of these optimizations! Meanwhile, the technical writing team was falling behind on new deliverables.

The same scenario applies to your new casual BI users. This new group needs guidance to help them focus on the highest value practices:

  • Customization of color and appearance of visualizations: When is this customization necessary for a management deliverable, versus indulging an OCD tendency? I too have to stop myself from obsessing about the font, line spacing, and that a certain blue is just a bit different than another shade of blue. Yes, these options do matter. But help these casual users determine when that time is well spent.
  • Proper visualizations: When is a spinning 3D pie chart necessary to grab someone’s attention? BI professionals would firmly say “NEVER!” But these casual users do not have a lot of depth on BI best practices. Give them a few simple guidelines as to when “flash” needs to subsume understanding. Consider offering a monthly one-hour Lunch and Learn that shows them how to create impactful, polished visuals. Understanding if their visualizations are going to be viewed casually on the way to a meeting, or dissected at a laptop, also helps determine how much time to spend optimizing a visualization. No, you can’t just mandate that they all read Tufte.
  • Predictive: Provide advanced analytics capabilities like forecasting and regression directly in their casual BI tools. Using these capabilities will really help them wow their audience with substance instead of flash.
  • Feature requests: Make sure you understand the motivation and business value behind some of the casual users’ requests. These casual users are less likely to understand the implications of supporting specific requests across an enterprise, so make sure you are collaborating on use cases and priorities for substantive requests.

By working with your casual BI users on the above points, you will be able to collectively understand when the absolute exact request is critical (and supports good visualization practices), and when it is an “optimization” that may impact productivity. In many cases, “good” is good enough for the fast turnaround of data discovery.

Next week, I’ll wrap this series up with hints on getting your casual users to embrace the “we” not “me” mentality.

Read Part One of this series: Changing The IT Culture For Self-Service BI Success.

Follow me on Twitter: @InaSAP

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How Much Will Digital Cannibalization Eat into Your Business?

Fawn Fitter

Former Cisco CEO John Chambers predicts that 40% of companies will crumble when they fail to complete a successful digital transformation.

These legacy companies may be trying to keep up with insurgent companies that are introducing disruptive technologies, but they’re being held back by the ease of doing business the way they always have – or by how vehemently their customers object to change.

Most organizations today know that they have to embrace innovation. The question is whether they can put a digital business model in place without damaging their existing business so badly that they don’t survive the transition. We gathered a panel of experts to discuss the fine line between disruption and destruction.

SAP_Disruption_QA_images2400x1600_3

qa_qIn 2011, when Netflix hiked prices and tried to split its streaming and DVD-bymail services, it lost 3.25% of its customer base and 75% of its market capitalization.²︐³ What can we learn from that?

Scott Anthony: That debacle shows that sometimes you can get ahead of your customers. The key is to manage things at the pace of the market, not at your internal speed. You need to know what your customers are looking for and what they’re willing to tolerate. Sometimes companies forget what their customers want and care about, and they try to push things on them before they’re ready.

R. “Ray” Wang: You need to be able to split your traditional business and your growth business so that you can focus on big shifts instead of moving the needle 2%. Netflix was responding to its customers – by deciding not to define its brand too narrowly.

qa_qDoes disruption always involve cannibalizing your own business?

Wang: You can’t design new experiences in existing systems. But you have to make sure you manage the revenue stream on the way down in the old business model while managing the growth of the new one.

Merijn Helle: Traditional brick-and-mortar stores are putting a lot of capital into digital initiatives that aren’t paying enough back yet in the form of online sales, and they’re cannibalizing their profits so they can deliver a single authentic experience. Customers don’t see channels, they see brands; and they want to interact with brands seamlessly in real time, regardless of channel or format.

Lars Bastian: In manufacturing, new technologies aren’t about disrupting your business model as much as they are about expanding it. Think about predictive maintenance, the ability to warn customers when the product they’ve purchased will need service. You’re not going to lose customers by introducing new processes. You have to add these digitized services to remain competitive.

qa_qIs cannibalizing your own business better or worse than losing market share to a more innovative competitor?

Michael Liebhold: You have to create that digital business and mandate it to grow. If you cannibalize the existing business, that’s just the price you have to pay.

Wang: Companies that cannibalize their own businesses are the ones that survive. If you don’t do it, someone else will. What we’re really talking about is “Why do you exist? Why does anyone want to buy from you?”

Anthony: I’m not sure that’s the right question. The fundamental question is what you’re using disruption to do. How do you use it to strengthen what you’re doing today, and what new things does it enable? I think you can get so consumed with all the changes that reconfigure what you’re doing today that you do only that. And if you do only that, your business becomes smaller, less significant, and less interesting.

qa_qSo how should companies think about smart disruption?

Anthony: Leaders have to reconfigure today and imagine tomorrow at the same time. It’s not either/or. Every disruptive threat has an equal, if not greater, opportunity. When disruption strikes, it’s a mistake only to feel the threat to your legacy business. It’s an opportunity to expand into a different marke.

SAP_Disruption_QA_images2400x1600_4Liebhold: It starts at the top. You can’t ask a CEO for an eight-figure budget to upgrade a cloud analytics system if the C-suite doesn’t understand the power of integrating data from across all the legacy systems. So the first task is to educate the senior team so it can approve the budgets.

Scott Underwood: Some of the most interesting questions are internal organizational questions, keeping people from feeling that their livelihoods are in danger or introducing ways to keep them engaged.

Leon Segal: Absolutely. If you want to enter a new market or introduce a new product, there’s a whole chain of stakeholders – including your own employees and the distribution chain. Their experiences are also new. Once you start looking for things that affect their experience, you can’t help doing it. You walk around the office and say, “That doesn’t look right, they don’t look happy. Maybe we should change that around.”

Fawn Fitter is a freelance writer specializing in business and technology. 

To learn more about how to disrupt your business without destroying it, read the in-depth report Digital Disruption: When to Cook the Golden Goose.

Download the PDF (1.2MB)

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Internet Of Things: Where Is All The Data Going?

Tim Clark

The Internet of Things (IoT) is no longer happening in a galaxy far, far away. It’s happening right here, right now. It may be in your pocket, on your wrist, in your clothes – heck, it might even be helping you drive your car.

In fact, IoT is moving so fast, we’re actually on the third wave, according to a panel of experts who weighed in on the topic during a recent episode of Internet of Things with Game-Changers, presented by SAP.

However, a nagging questions arises when it comes to this third IoT wave: What’s going to happen to all the data that’s being collected?

Coping with IoT reality

Gray Scott, futurist and founder/CEO of seriouswonder.com believes serious questions remain around IoT data collection because technology is moving faster than we can cope with.

“The main thing I’m concerned with right now, is getting people to understand that the Internet of Things is already in their lives,” said Scott. “So if you look around your house, either your television, refrigerator, or some of your appliances – they are probably already connected.”

And because IoT is now permeating our everyday lives, it must provide tangible results to consumers and businesses, according to JR Fuller of HP Enterprises.

“It can’t just take our data and subject us to additional advertising, which is one of the ways that it pays for itself,” said Fuller. “It has to provide something to us. It has to provide convenience.”

Evangelizing IoT convenience

The conveniences of IoT, such as a refrigerator that breaks down and automatically alerts the manufacturer to send a repairman, needs to be evangelized during this critical time, said Ira Berk, Vice President of Digital Transformation Solutions, SAP. Making proper use of the massive amounts of data IoT generates also plays a critical role in evangelizing its benefits.

“Think about what happens when you start to mix and match different sources of information,” said Berk. “You start to understand the data behind the world around you. In your house, car, environment, earth, public transportation, smart cities and factories. What questions can you ask that you wouldn’t even imagine being able to ask before, because you can start to synthesize the information?”

Gray Scott believes synthesizing different data sources “is a continuum of everything,” a great example being traffic in urban areas. Apps like Waze and Google Maps help drivers circumvent traffic.

“It’s a physical thing that can grab a hold of data and literally rearrange our lives by changing the direction you take your car in,” said Scott. “This continuum is going to keep building on itself as we move forward into the future.”

Living in a post-privacy world

While the general populace may not want to admit it, we are living in a post-privacy world. Anything put online is made public and everything that can be hacked, will. The question is what do we do with all of that data? Can we rise to a higher state of humanity and not just use data for advertising purposes, but to make our lives more convenient?

“I think we don’t mind giving up some of our personal information if it benefits us,” said JR Fuller. “It makes for a very interesting time, especially companies that can add value to bridge the gap and help enterprises achieve the benefit that we know are possible with IoT.”

Internet of Things with Game-Changers, presented by SAP, is hosted by Bonnie D. Graham. Listen to this broadcast in its entirety here.

This story originally appeared on SAP Business Trends.

Top image: Shutterstock

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Tim Clark

About Tim Clark

Tim Clark is the Head of Brand Journalism at SAP. He is responsible for evangelizing and implementing writing best practices that generate results across blog channels, integrated marketing plans and native advertising efforts.