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Intelligent Mining

Delivering Real Value


March 2018
Intelligent Mining | Delivering Real Value

Contents
Introduction 01

The future is Intelligent Mining 07

Intelligent Mining requires


organisational transformation 11

Where to start 19

Why partner with Deloitte 25

References 26

Contacts 28

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Intelligent Mining | Delivering Real Value

Introduction
To capitalise on the digital revolution,
mining companies need to drive
radical change. Yet many still focus
on point solutions – underestimating
internal organisational barriers and
bureaucracy that can hinder their
ability to disrupt and prosper. This lack
of value realisation can be attributed to
a limited understanding of the impact
that digital transformation can have on
the work, workforce and workplace.

01
Intelligent Mining | Delivering Real Value

Globally, mining operators across all decisions that can reduce performance “To survive in this new
commodities are facing the combined variability and improve equipment utilisation
challenges of declining ore grades and and safety. It can move organisations from a world, businesses must
operating efficiency. Responding to such reactive management approach to one that learn to think differently,
challenges is difficult due to the significant looks forward with insight and confidence.
variance inherent to ore bodies. This see differently and do
is exacerbated by costly infrastructure This potential value realisation will increase differently.”
requirements, distant planning horizons further as organisations transition from
and lengthy implementation timelines, doing things better to doing things Deloitte Digital
notwithstanding dangerous operating differently:
environments and subsequent critical safety
•• Using Digital Technology to
considerations.
Manage Better –
Evidence-based insights allow
While many mines strive to drive meaningful,
organisations to do the same work better
sustainable transformation in their
thus eliminating execution waste (10-20%
operations, they lack real visibility, and
improvement potential)1
struggle to access accurate, complete and
timely data or business options. This leads •• Integrating information –
to diminishing returns as they continue to Leveraging technology to automate
follow the approaches of old – sweating their processes and make better system-wide
remaining assets and working harder for decisions (20-30% improvement potential)1
smaller gains.
•• Redesigning Integrated Systems –
Integration and optimisation of all
The cost of digital technology is decreasing
technologies across the mining value chain
and digital solutions are being trialled and
allows organisations to work differently
tested, so there is no better time than now
(greater than 50% improvement potential)1
to explore Intelligent Mining, address the
underlying causes of obstacles and focus
on value.

Deloitte understands digital transformation.


Being digital is about the ability to see
differently, think differently and do
differently. The digital future brings great
promise. It enables quicker and better

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Intelligent Mining | Delivering Real Value

Since the release of our thought leadership •• Underestimating agile methodologies


piece in 2017 entitled “The Digital Revolution: and how to implement these
Mining starts to reinvent the future”2 we have
•• Inability to adapt governance models to
been on a digital journey with our clients,
support agile principles
gaining invaluable experience and insights
into the building blocks of successful •• Fragmented ownership of the digital
transformation. Observing several mining transformation agenda
organisations, we have been able to
•• General tendency to focus on project
identify the following key challenges that
outputs instead of business outcomes.
hamper the rate of digital transformation:

•• Opting for “out-the-box” point solutions Through walking the transformation


which are not fit-for-purpose journey with our mining clients, we
understand what it takes to transform
•• Inability of technology providers to
and where to start with digital. We have
implement their solutions
invested in, and pre-configured solutions
•• Limited comprehension of the impact on with our partners that accelerate time to
the workforce and changes required to value realisation and reduce the cost of
work processes pioneering new solutions.

It’s not just about the technology.


It’s about changing the way you
do business.

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Intelligent Mining | Delivering Real Value

Agile execution approach

Deliver small Solve for the


Reduce Waste Learn and Improve Empower the Team
batches Regularly System

From Broad Focus Test at Scale Slow Adoption

To
Think Big Test Small Scale Fast

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Intelligent Mining | Delivering Real Value

The agile execution approach is based on key principles


focused on delivering a digitalisation programme that,
over time, becomes self-funding. These implementation
principles enable the move away from the traditional
broad focus, test at scale and slow adoption approach that
typically accompanies a technology roll out. In a rapidly
evolving technology environment, where solutions are often
unique and target step-changes in performance, a ‘think
big, test small and scale fast’ method is recommended.

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Intelligent Mining | Delivering Real Value

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Intelligent Mining | Delivering Real Value

The future is
Intelligent Mining
Intelligent Mining is about broader organisation
transformation, and not just a ‘digital mine’. Intelligent
Mining will impact the way decisions are made, the skills
you require, how you engage with your workforce and
communities, and how to optimally utilise resources,
such as energy.

“Digitally mature Intelligent Mining is about understanding


where waste is created in the business,
The journey to Intelligent Mining requires
transformation in more dimensions than
companies are achieving ranging from inherent variability in the technology and include the following:

success by increasing orebody, design and structural waste to


management-induced variability. Digital The way decisions are made
collaboration, scaling solutions are designed to eliminate Intelligent Mining is about making

innovation and revamping this waste by adopting best-of-breed


technologies – many of which have been
informed decisions through
accurate, complete and timely information.
their approach to talent.” proven in multiple industries. The result is: Greater visibility and intelligence drives
businesses to be:
MIT Sloan Management Review
•• A step-change in operational •• Input driven and forward-looking -
performance enabled by augmented Automated feedback loops on leading
decision-making indicators will allow leadership teams to
intervene proactively and solve issues
•• Optimised resource management
before they occur.
•• Deployment of the right skills and
selection of alliance partnerships that
support the new ways of working. 07
Intelligent Mining | Delivering Real Value

•• Managed by exception - Operating integrates with smart automation based •• Future-fit skills and capabilities -
limits are defined for each of the input on equipment capacity, availability and Acquiring new skills is non-negotiable
measures. A performance deviation utilisation. Energy therefore becomes an to stay ahead of the curve. Proactive
triggers the required action and the input parameter that is subject to resource upskilling and reskilling of manual and
intelligent workflow therefore becomes allocation similar to employees and material. semi-skilled labour is a business and social
the basis of exception management. Optimisation of this variable resource, across imperative for the mining industry.
the value chain, will improve sustainability
•• Integrated and holistic - A decision •• Creating a shifting change culture
and reduce utility consumption.
in relation to an unplanned event such that is self-fulfilling - Organisations
as, ‘do I move my mining equipment or implementing systemic changes in how
use the opportunity to do maintenance?’ Intelligent mining in action they organise and develop workforces
becomes transparent, collaborative and smartly, will spur workplace innovation,
fact based. Client: Global precious metals organisation and cultivate digital cultures and
experiences.
•• Prescriptive - Increased decision- Capabilities and features delivered:
making based on predicted outcomes, Smart infrastructure •• Leadership commitment - Securing
driven by analytics and artificial The integration of solar, wind and other leaders with the vision necessary to lead
intelligence (AI). Historical analysis and forms of renewable energy and the a digital strategy, and a willingness to
pattern recognition are driving the implementation of a smart electricity commit dedicated resources to achieve
improvement of operational decisions, grid that measures and manages power this vision.
for example safety and risk mitigation, consumption from both supply and
as well as commercial decisions such as demand across the value chain. How value is shared
where, and when to sell products. In many instances, adopting digital
Benefits: Decrease in utility consumption technology reduces the
•• Augmented - Decisions of front- and cost through optimisation in utilisation human input required, and in the minds of
line operators and supervisors, are patterns. many role players, there is an immediate
augmented by digital decision support
assumption that it will lead to increased
that provide decision options, and
What skills will be required and job losses and a negative socio-economic
real-time technical guidance through
how resources are deployed impact on the surrounding communities.
mechanisms, such as augmented reality
Intelligent mining will fundamentally Mining organisations have choices that will
engagement and the gamification of
change the way people work, the way define their own digital future. By adopting a
performance management.
jobs are designed and ultimately the shared value approach, the fourth industrial
working environment. The impact of digital revolution is not necessarily a zero-sum
How resources are managed
transformation on people requires focused game where mines win and communities
Intelligent Mining will make it
effort to understand and solve for each of lose, but rather a new opportunity for
possible to manage resources
the following areas: greater socio-economic impact. The
such as energy, labour, equipment, and
key premise of shared value is that the
infrastructure as a variable cost. For •• The changing nature of work - Manual
competitiveness of a business and the
example, infrastructure such as conveyor and semi-skilled labour is at risk of digital
health of the community in which it operates
systems can be integrated with energy augmentation. Almost every job will be
are interwoven. Digital strategies and
monitoring across the value chain to re-invented, creating the “augmented
choices approached from a shared value
optimise system utilisation. This in turn workforce”: working next to and with
perspective would address:
smart machines.
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Intelligent Mining | Delivering Real Value

•• Digital infrastructure - Technology by enhancing market accessibility for Realising the potential
infrastructure investments create an suppliers in the region. Opportunities Realising the potential of
opportunity to build and improve the include: Intelligent Mining requires
digital infrastructure within local economic an integrated, transparent and
- Shared tender platforms
ecosystems, which the mines form part transformational approach. It is no
of. This leads to improved quality of life - Local supplier development partnerships longer enough for organisations to
and creating conditions necessary for the with original equipment manufacturers simply “do things better” they have to
accelerated development of communities. (OEMs) start “doing things differently”.

•• Basic education - Digital disruption has - Renewable energy partnerships and


been lowering historical barriers of access other opportunities linked to new skills “Digitally maturing
to education with online learning platforms developed in the communities.
that provide valuable and useable skills companies are
development. Remote locations no
Intelligent Mining in action increasingly organised
longer require local expertise to transfer
educational or specialised knowledge. around cross-functional
Client: Global precious metals
Community oriented education projects
organisation teams versus companies
become more affordable through digital
platforms, creating impact and lending at early stages of digital
Capabilities and features delivered:
themselves to collaboration.
Stakeholder engagement for shared value development.”
•• New skills development - The changing A globally enabled, cloud-based
MIT Sloan Management Review4
skills requirement brought about by digital solution was implemented to enable the
transformation presents an opportunity organisation to engage more effectively
for investment in local development to in the communities in which it operates.
cultivate 21st century skills. These include The platform created transparency of
intangible skills such as EQ, curiosity, key processes and enabled stakeholders
creativity, critical thinking, adaptability and to view real-time, accurate and complete
resilience as well as technical skills based information.
on data and algorithms. Shifts in education
and skills development provide mining Benefits:
organisations with an opportunity to reskill • Improved management of time-
employees as technology is deployed and critical and sensitive complaints and
invest in skills development in surrounding grievances
communities. This helps to address the • Transparent and more effective
deficiencies and strengthen local clusters stakeholder engagement (two-way
over time. communication)
• Improved return on investment
•• Enterprise and supplier
management concerning community-
development - Digital transformation
based initiatives.
provides advances in technology that can
create entirely new business opportunities

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Intelligent Mining | Delivering Real Value

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Intelligent Mining | Delivering Real Value

Intelligent Mining
requires organisational
transformation
The transformation focuses on a shift from traditional,
siloed models to a business value driven, agile operating
model to ensure sustainable Intelligent Mining.

The organisational transformation is summarised in five steps:


“Intelligent Mining
is a transformation,
whether organisation- STEP STEP STEP STEP STEP
01 02 03 04 05
wide or for a single
Developing Automating Delivering the Implementing Leading a
discreet use case” a digital operations and digital mine supporting diverse,
strategy and digitising assets nerve centre platforms and distributed
Deloitte Digital managing digital enablers and connected
transformation workforce

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Intelligent Mining | Delivering Real Value

Every organisations’ transformation will horizons, improve planning, control and game-based context to stimulate healthy
be unique in focus areas and scale, but decision-making. competition and motivation supported by
generally encompasses the following three near real-time incentivisation
areas of the value chain: We believe that the pace of digital
transformation is more about people than •• Smart Predictive Maintenance:
•• Automating physical operations and Combines a series of IoT devices on key
technology. We have, and will continue
digitising assets mining equipment – sending real-time
to invest in solutions that solve industry
•• Data-driven planning, decision-making challenges. These pre-configured solutions operational metrics such as temperature,
and short interval control are based on best-in-class platforms from vibration, load factors, oil analysis and
our established partner network, integrated more to predictive monitoring algorithms,
•• Re-imagined ERP: Automated and through a robust, but flexible technology
integrated support processes. flagging imminent failures, for a manage-
architecture. Selected examples of these by-exception way of work. Automatic
solutions include:
The ambition and chosen set of workflows trigger work orders and
opportunities will dictate the scale of •• Integrated digital planning: purchase orders where specific parts are
change. The transformation to Intelligent Eliminates waste, creates value by required for the repair.
Mining will, however, always require obtaining a better understanding of the
some form of transformation, whether ore-body, and provides more complete, These four use cases embody the logical and
organisation-wide or for a single discreet timely and integrated information to practical first steps in establishing the digital
use case. Transformation will result in improve budget forecasting for optimal mine nerve centre, unlocking immediate
changes to technology, processes and the resource management. Market data, business value. The nerve centre ultimately
ways of work. procurement, maintenance and workforce builds up over time through focus on
planning are integrated with mining and operational improvements based on analytics
A successful transformation is financial plans to provide optimal holistic in three frames:
dependent on: forecasts
•• Analysis of historic trends and patterns
•• Integration of core and support •• Digital short interval control:
•• Real-time data derived from sensors during
processes underpinned by a robust Facilitates the improved execution of
operation
technology architecture the short-term mine plan through the
adoption and use of digital measurement, •• Deriving future insight from predictive
•• A transformed workforce augmented
communication and integration analytics and scenario modelling.
by decision support and real time
technologies. Through real-time or near
performance management
real-time information updates, front- We believe in accelerated technology
•• Resilient leadership with a relentless line supervisors and their managers implementations through minimum viable
drive for value realisation, coupled with are empowered by a more accurate products that quickly surface insights. These
real endorsement for agile ways of and complete view of their areas of insights inform the overall transformation
work. responsibility requirements.
•• Gamified performance management:
Integration of core and
support processes Enabled by short-interval tracking and
To fully leverage the power of capturing of operational metrics from the
digital, miners need to integrate assets edge. The solution allows for individual
across the value chain. This will enable and team-based performance to be
them to view information in multiple time measured and fed back in an interactive

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Intelligent Mining | Delivering Real Value

DISCOVER & ESTABLISH EXPLOIT RESOURCES BENEFICIATE ORE MOVE PRODUCT SHIP TO CUSTOMER

INTEGRATED OPERATIONAL PLANNING, CONTROL AND DECISION SUPPORT

REAL TIME DATA PLATFORMS


Real time sensor data to Integrated well governed
drive short interval control in execution, data platforms support all processes
reduce variability, and shorten and all time horizons
planning cycles

HISTORICAL FUTURE
Reporting and analysis of historical Future insight derived from
data and insight gained from historical analysis to improve planning,
analysing trends, patterns and DIGITAL MINE NERVE CENTRE simulate the integrated supply chain,
opportunities for improvement Data driven insights drive improved and predict future outcomes,
learned from experience planning control and decision using analytics and AI tools
support across the mining
value chain

INTEGRATED ENTERPRISE PLANNING AND SUPPORT PROCESSES

MAINTENANCE SUPPLY ENERGY MANAGEMENT HSE & COMMUNITY FINANCE HR IT MARKETING

*Integration of core and support processes

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Intelligent Mining | Delivering Real Value


Transformation of the work, workforce and workplace
The workforce strategy must support the digital agenda to ensure successful digital strategy execution. Workforce strategy
focuses on ensuring that the right people are at the right place at the right time. This requires a focus across the following three
dimensions: redesigned work, augmented workforce and connected workplace.

Shifting Business Models and Value Configuration

WORKFORCE STRATEGY
How do I prepare for Intelligent Mining?
What will my talent model look like?

REDESIGNED NEW CONNECTED


WORK WORKFORCE WORKPLACE

How does my workforce What will my workforce look like Where will work
change jobs, skills and work? and how will I augment? happen in the future?

*Workforce transformation

• Workforce Strategy
Strategic decisions that shape the organisation.

Not to be confused with operational workforce or capacity planning, strategic workforce planning is the ability to pro-actively determine
the shape, size and profile of the workforce to meet the digital strategy. This will require an accurate prediction of the speed and scale of
disruption to certain jobs and future skill requirements. As these future skills are in demand, the cost to fill these roles will determine the
priority, feasibility and employment model (employee, contractor, partner, crowdsourced, etc.)

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Intelligent Mining | Delivering Real Value

• Redesigned Work Gamified performance management • Connected Workplace


The type of work people will do in the enables real-time performance The structure and practices that enable
Intelligent Mine. information linked to incentive and people to create value on the Intelligent Mine.
reward programmes, as well as
Jobs will generally be more knowledge- mitigation mechanisms for poor Intelligent Mining deliberately constructs its
based and the nature of work will change. performance. This is further supported workplace to incorporate everything from the
The workforce will need to interact with by the ability to track and measure physical to digital workspaces. As the lines
technology and make complex decisions operational performance against the between physical locations and the place
based on data and insights. An example plan in real-time and made visible to where work happens become more blurred,
of this is a specialised engineer that can employees on dashboards across a diverse workforce will become more
support an on-site supervisor remotely in various engagement platforms. involved in what was traditionally considered
fault-finding. The engineer can visually see core mining.
an exploded view of the sub-assembly on Intelligent Mining in action
a HoloLens6 and then provide guidance on Deloitte’s digital mine nerve centre
corrective actions. Client: Global bulk commodity mining enables data-driven decision-making by
organisation accumulating, integrating and simplifying
• New Workforce information from across the organisation in
The interaction between people and Capabilities and features delivered: an environment that simulates a digital twin
machines as the “new workforce”. Digital transformation programme of the mine.
The organisation embarked on a holistic
The digital workplace enables a more digital transformation programme for
flexible, agile and decision-driven their entire operational portfolio. The
workforce. A hybrid approach is digital use case impact was assessed on
“The ability to digitally
needed where employees with a new three primary dimensions that included reimagine the business is
set of skills and competencies will work information management, technology determined by a clear digital
alongside machines and interact with enablement and organisational
digital technology. To ensure efficient readiness. The organisational
strategy supported by leaders
implementation and adoption of these transformation focused on the required who foster a culture able to
digital technologies, organisations need to changes in ways of work, ranging from
bring stakeholders along on the journey
change and invent the new.”
management systems and decision-
ensuring continuous engagement and making to the required skills and impact MIT Sloan Management Review3
transparency on: on the performance management
•• The employees experience process.

•• The upskilling, reskilling and Benefits:


redeployment of resources Complete transformation roadmap with
•• Training and development requirements in excess of 100 use cases that include:
• Value realisation and assurance
•• Recruitment of new skills and alternative • Operating model change
employment models • Technology enablement
• Changes in core and support
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processes and functions
Intelligent Mining | Delivering Real Value

Leadership is the key to success


In order to adapt and respond to the demands of a rapidly changing environment, the leaders in the digital organisation need
to change the way they think, act and react. To facilitate this transition, leaders need to focus on the following principles:

OWN THE RELENTLESS EXPERIMENTAL – TAKING START SMALL DEDICATED EXECUTION


TRANSFORMATION FOCUS ON VALUE CALCULATED RISKS AND SCALE FAST CAPACITY

• Be at the forefront of the • Leadership should be • Value design thinking • Conceptualise possibilities • Take the lead in driving
digital transformation brave in challenging the • Creating new ways of work in a virtual world change
agenda status quo • Create an environment • Data-driven decision • Ensuring that there are
• Visible to stakeholders • Relentless focus on value where failure is okay making dedicated resources
• Resilient in the face of realisation. • Try, fail, try again is a daily • Lead initiatives by starting assigned to drive the
constant change occurrence. small and scaling fast. transformation process.

* Leadership is the key to success

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Intelligent Mining | Delivering Real Value

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Intelligent Mining | Delivering Real Value

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Intelligent Mining | Delivering Real Value

Where to start
An effective digital transformation programme should be self-funding and not a
make-or-break proposition. Identifying and prioritising opportunities should be
consistent with the key theme of speed and agility. Deloitte’s pre-configured use cases
and Digital Value Office (DVO) can incubate the transformation journey by enabling
rapid value realisation through collaboration, transparency and the right partnerships.

Pre-configured use cases


Pre-configured use cases enable Think Big Test Small Scale Fast
organisations to rapidly transition
from “the art of the possible” to a working Explore the art of Pick one or two digital Realise value
prototype that confirms value. The the possible use cases
prioritisation of use cases considers the
Follow an innovative and Prioritise use cases based Scale solution and transform
trade-off between the potential business immersive approach to on trade offs and pick one ways of work across the
value and feasibility of implementation. define the digital ambition or two for agile prototyping organisation to realise full
and deliver proof of business benefits
Delivering value quickly will create concept (quickly)

momentum for the overall programme


* Getting started using an Agile methodology
as a change catalyst. The steps in getting
started are to think big in terms of digital
ambition, test small by providing a proof
challenge current operating and business process and technology) than the typical
of concept for one or two use cases, and
model paradigms. The DVO should be Programme Management Office (PMO).
scale fast to maximise value realisation
accountable for providing five main These include:
across the organisation.
deliverables: - Having an outside-in view
Digital value office •• Manage the programme and integration - Being a change catalyst
In a digital transformation across business units
- Being a custodian for digital maturity
journey, a DVO is the incubation •• Manage the pipeline of digital use cases and tracking
engine that drives transformation and initiatives
- Taking responsibility for the delivery of
through digital technology roll out, •• Implement use cases assurance and value realisation
and change in work, workforce and
•• Organisational change management - Enabling partner ecosystems
workplace. The DVO reports directly
into the office of the Chief Executive •• Technology architecture integration - Reinforcing the digital technology
Officer (CEO). CEO sponsorship is critical •• To deliver these outcomes, in a digital architecture.
as the impact of the transformation environment, the DVO requires more
journey means that the DVO needs to competencies (encompassing people,
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Intelligent Mining | Delivering Real Value

These competencies are depicted in the figure below:

Digital Value Office


The DVO will continually seek to unlock
business value through the adoption of
relevant digital technologies.

Digital Roadmap

Outside-in View Research Trends Network Plug-in

Change Catalyst Culture of Innovation Buy-in + Expedite


Awareness Decision

Digital Maturity & Digital Maturity Transparent Design Thinking


Tracking

Delivery Assurance & Agile Execution Best Suited Value


Value Realisation delivery Management

Partner Ecosystems OEMs Start-ups Platforms

Digital Technology Information Management Digital Design Infrastructure


Architecture Architecture Authority Security

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Intelligent Mining | Delivering Real Value

Outside-in view •• Digital fluency training - •• Managing the skills pipeline and
The ‘outside-in view’ can be Understanding digital technology and future of work requirements –
enabled by taking a few practical the impact it has on traditional business Address digital implications across the
steps to ‘plug-in’ to the external network and operating models is an important dimensions of space, place, talent and
that include: pre-requisite to digital transformation. technology to define the workplace
Preparing for the fourth industrial strategy holistically. Strategic workforce
•• Establishing an AI engine that
revolution requires both leaders planning within the DVO will typically
continuously scans databases for
and employees to develop a basic comprise of the following elements:
megatrends and disruptive technologies
understanding of the opportunities - Predictive talent optimisation tools
•• Attending relevant conferences and and vulnerabilities to their business. A
- Technology augmented professionals
subscribing to publications that track compulsory digital fluency programme
cross-industry views of how digital will assist the leadership and staff to - Gig workers
developments are being adopted understand the disruptive technologies - Crowdsourcing platforms
and their implications better. - Bots.
•• Establishing strategic partnerships with
third-party suppliers that are market •• Change management through hype
leaders in digital transformation. development - Change management
is the single most important driver
The ‘outside-in view’ should also be of success, an enabler to open the
used as a platform to continuously review door for employees to embrace the
and refresh the technology alliance change rather than oppose it. Dynamic
partnership ecosystem. change management is therefore
about delivering change in a leaner,
Change catalyst collaborative, flexible and iterative way
The change processes are initiated by creating hype and a ‘movement’
and managed by means of a few for change across the organisation. A
practical processes that ensure that new number of factors to consider in creating
technologies are adopted and that skills a hype or movement for change across
profile of the organisation evolves as digital the organisation:
maturity grows. The DVO should support - Focus on the moments that matter
this transformation through the following - The DVO as the catalyst for change
support capabilities:
- Integrate change with agility
•• A formal agile coaching - Understand and define the minimal
programme – Agile ways of working viable change (MVC)
is a fundamental shift from traditional
- Embrace the agile way of working, help
implementation methodologies.
the organisation ‘get it.’
Certified agile coaches will guide the
implementation teams on, and instilling
an agile way of working.
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Intelligent Mining | Delivering Real Value

Digital maturity appropriate governance structures and recommended that the DVO competencies
The DVO is the custodian of digital functional forums to ensure internal include a digital architect that will be
maturity for the organisation. functional alignment and decision support. responsible for systems of innovation
Digital maturity should be assessed against Risk and quality management are subsets that include:
a digital maturity reference model that of delivery assurance, and appropriate agile
•• Experimental new technology
ranges from smart assets to cognitive/ decision-making processes are used to
AI. Maturity, while not a direct indicator support managing these aspects. •• Small scale, point solutions
of business value, allows articulation of
•• Agile delivery methods
simplified digital use cases that, when Partner ecosystem
implemented and integrated across the A range of alliance partners is •• Mobile, cloud dominant technologies.
value chain, eliminate waste and therefore required to provide the full suite
support the creation of business value. This of advisory, technology and integration
also allows for a more holistic view of digital capabilities to deliver use cases defined
Intelligent Mining in action
transformation based on maturity as the during a digitalisation programme. These
leading indicator. alliance partnerships cover the full breadth
Client: Global mining and metals
of digital services, across a broad range
organisation
Delivery assurance and of emerging technologies, from strategy
value realisation to execution. Digital transformation is
Capabilities and features delivered:
The effective use of a minimum a journey from working with inflexible
Digital delivery centre
viable product or prototype (MVP) to platforms, products and workflows to
The global mining organisation
assess the potential value of a digital embedding agility in the everyday ‘way
established a digital delivery office to
solution is critical for approach to value of work’. The same agility is required
drive the transformation and serve as a
realisation. The value potential guides the to develop and sustain the partner
catalyst for the implementation of digital
DVO in terms of prioritising the funding ecosystem. The DVO facilitates integration
use cases. The digital delivery centre
of initiatives. Thereafter, by assessing and cross-functional implementation
housed eleven programmes focusing on
the outcomes of an MVP a business case between the information management
end-to-end optimisation of the mining
for scaling needs to be developed. The team, third-party suppliers and business
value chain.
business case is informed by technology, unit personnel.
organisational readiness and data
Benefits:
integration costs. Our experience is that Digital technology architecture
• Development of detailed KPI trees for
digital solutions that are built on cloud- To realise the vision of digital
each element in the organisations value
based flexible platforms, are intuitive to evolution a DVO would typically
chain created the required focus at all
use and are reusable across mine include a Design Authority (DA) function.
stakeholder levels and ensured that
operations have the most potential to The DA can be established as a function
overall objectives are achieved
demonstrate value. that sits within Information Technology
• Clear focus on sustainable value
(IT) and operates within a more agile
delivery by ensuring the workforce was
The DVO should facilitate delivery governance framework where the business
taken along the transformation journey
assurance by establishing, and facilitating requirements are more dynamic. It is
• Aligned governance in the organisation
and in all functions to enable agile
implementation of digital solutions.
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Intelligent Mining | Delivering Real Value

Why partner with Deloitte


Digital partners often take a siloed or ‘technology first’ approach, which can lead to
confusion and disconnected initiatives that do not realise full potential. Deloitte assists our
clients to implement sustainable transformation, providing the required multidisciplinary
skills and deep industry experience.
We are the leaders in Digital Property (IP). Deloitte has invested in the the required process, workforce and
innovation and business development of deployable solutions technology building blocks for a successful
transformation that create tangible business value, thus transformation. This toolkit also covers
Digital encompasses a broad range reducing our clients’ cost of pioneering new best practices in mining operations across
of Deloitte services and we bring a technologies. We will continue to assess the globe. This includes underground and
multidisciplinary point of view. We improvements in technology, and develop open cast use cases, approaches, methods
harness the best-in-class resources bankable solutions that address mining and tools, which could be customised to
and capabilities available at Deloitte, industry challenges. fulfil a range of digital requirements. The
bringing differing perspectives to answer toolkit can be applied to transformations
tomorrow’s questions and challenges. Our alliances create technical of differing scales and complexity, from
Analysts acknowledge Deloitte as a depth organisations that undertake a complete
model-consulting firm and leader in digital Deloitte creates solutions in digital transformation to small-scale
innovation5 and business transformation.7 collaboration with clients and carefully transformations focused on selected areas
Our industry leading Human Capital selected alliance partners. Deloitte in the value chain.
practice rethinks the business operating has developed both local and global
model and talent solutions required for the partnerships with major technology Deloitte understands that technology
digital age thus clearing the path for new vendors. Many of Deloitte’s alliance and markets will continue to evolve and
ways of working. partners have already invested significantly change, however, the work that needs to
in research and development to prove take place across the mining life cycle will
We have developed their solutions, which effectively reduces not change fundamentally. The demands
pre-configured solutions the pioneering costs that organisations of stakeholders will transform and become
Deloitte has designed and may incur when embarking on their digital tougher as they too become smarter. At
implemented many digital solutions transformation journey. Deloitte, we partner with mines to focus on
within Energy and Resources, covering a the things that really matter – embarking
broad spectrum of issues and use cases for We have done this before and on a transformation journey with joint-
these. Through this experience, we learned the lessons accountability to deliver real value.
have developed a library of preconfigured Deloitte has developed a full
use cases with related Intellectual transformation toolkit covering all
25
Intelligent Mining | Delivering Real Value

References
1. The Digital Revolution: Mining starts to reinvent the future, Deloitte, 2017

2. Designing Digital Organisations – Summary of survey findings, MIT Sloan Centre for
Information Systems Research

3. MIT Sloan Management Review and Deloitte Digital 2017

4. Achieving Digital Maturity: Adapting your company to a changing world, MIT Sloan
Centre for information systems research, Gerald C Kane, Doug Palmer, Anh Nguyen
Phillips, David Kiron, Natasha Buckley, July 2017

5. ALM Intelligence, Digital Innovation Consulting, 2016

6. Microsoft HoloLens

7. The Forrester Wave: Business Transformation Consultancies, Q3 2017

26
Intelligent Mining | Delivering Real Value

27
Intelligent Mining | Delivering Real Value

Contacts
For more information, contact our Deloitte Energy and Resources Professionals:

Rhyno Jacobs Yusuf Vawda


Energy and Resources Leader Digital Leader
Strategy and Operations Strategy and Operations
Email: [email protected] Email: [email protected]

Janine Nel
Frik Snyman
Organisation Transformation
Organisation Transformation
and Talent Leader
Human Capital
Human Capital
Email: [email protected]
Email: [email protected]

Jan-Adriaan du Plessis Reinhard Arndt


Digital Leader Digital Architecture Leader
Strategy and Operations Technology
Email: [email protected] Email: [email protected]

28
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