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11 Feb 2016

Mining Companies Must Scale Out Mining Operations of the Future or Perish

Singapore, 12th February 2016 — Mining companies must differentiate their operational effectiveness through their use technology, or risk being left behind. Current economic conditions is challenging companies to recognise the role that technology and data must play in their operations. Building holistic digital capabilities that enable the creation of mining operations of the future will mean bringing together and integrating smart mining, digital mining and automation which will be the basis upon which mining companies deliver improved performance and efficiency.

"This is not a technology issue, it is about company strategy,” says Emilie Ditton, IDC Energy Insights Head of WW Mining. "A poorly managed mine with remote control, unmanned trucks, drones, along with visual analytics will still be poorly managed. Companies that successfully examine the role and treatment of data along with organization, structure, metrics, work practice and process will differentiate themselves through superior financial results. These results will grant access to capital and the best talent," adds Ms. Ditton.

This technology-led transformation involves incremental steps within an overall road map for existing assets. However, new projects focused on digital mining will change the way that technology and operational strategy interact. 3rd Platform technologies — particularly cloud, mobility, and big data/analytics — along with innovation accelerators (such as robotics, IoT, cognitive systems, and next-gen security) are coming together to shape operations, changing the role that technology plays. The biggest differentiator is the successful deployment of analytics within an integrated data strategy. This remains the biggest area of challenge for most companies.

"We are starting to see the mining sector spliting – between leading companies and the rest – in terms of their automation and IoT investments. IDC's research shows that over a quarter of mining companies globally have mature, consistent deployments of automation and IoT within their operations, but more than 50% remain at the very early stages. The role of IoT, particularly managing and using data effectively, will be a game changer in value delivery. However, to achieve this it is critical that mining companies get the foundations in place now," ends Ms. Ditton.

For most companies the foundations of managing data, applying analytics and integrating these initatives with the array of localised innovation across their mining operations is a major challenge. Managing the process, work practice and the organisational change needed to deliver the productivity potential the technology holds is a far greater challenge again for most, and it is this that is required to really impact productivity and efficiency. Regardless however, leading players are accelerating their initiatives and the reality is that for most, surviving this period intact will depend on it.

This press release relates to document: Doc #US40734815, Business Strategy: Creating Control and Visibility and Reducing Variability — The Future of Digital Mining Operations

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About IDC Energy Insights

IDC Energy Insights assists energy businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the utility and oil and gas industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world's leading technology, media, research, and events company. For more information, please visit www.idc.com/energy, email info@idc-ei.com, or call 508-935-4400. Visit the IDC Energy Insights Community at http://idc-community.com/energy.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC

Coverage
Regions Covered

Asia Pacific

Topics Covered

Operations and manufacturing applications

Vertical Markets

Energy, Smart utilities

Contact
For more information, contact:

Alvin Afuang
aafuang@idc.com
+63917 7974596

Theresa Rago
trago@idc.com
+65 91593053

Emilie Ditton
editton@idc.com
+612 9925 2211