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How is BPM paving the way for digital transformation in the mining industry?
Studies have shown that digital transformation within the mining industry can increase throughput between 10 and 20%. However, the industry is still 30-40% less mature in digital transformation than other similar ones. This opens an opportunity for early starters to race ahead of the others.
Digital transformation in mining encompasses each state including site surveys, extraction of ore, and transportation. It also includes process management in mining to deliver greater value at lower costs and environmental damage.
This article explains the benefits and roadmap of planning and executing digital transformation in mining industry, and the risks of not doing so.
Benefits of digital transformation in mining industry
The mining industry has always been under pressure because of changing supply chains, high risk for the workforce, operational costs, and the impact on the environment. With digitisation, companies stand to gain these benefits –
Higher rate of predicting machine failure
Use real-time data from remote sensors to analyse impending machine failures before they happen, thus saving time, cost, and lives. By preventing accidents and running repair and maintenance on time, you alleviate the risk for the workforce and the environment.
Enhanced operational efficiency
Rely on innovative technology to identify trends and reduce the impact on production and safety. By analysing the data exchange between systems and machines, you can gain insights for planning and coordinating future activities.
Safer and efficient exploration and discovery
Digital transformation helps by lowering the cost of exploration and discovery. For example, deep earth scans save the environment and cost, 55% of which would otherwise be spent only on blind drilling for ore discovery.
Performance monitoring
Data collection, analysis, and reporting present vast opportunities for process and operational improvements. From monitoring machines on drilling sites to software systems, you optimise their performance for maximum output.
A roadmap for digital transformation in mining industry
Digital transformation in the mining industry is slower than that in others, such as automotive and technology. One of the primary reasons for this is the lack of a roadmap for decision-makers. The following roadmap will help you transform your mining business –
Develop a digital transformation strategy
You need not implement digital transformation across the organisation in a single phase. To begin with, consider having a digital transformation strategy with a higher focus on those areas that need immediate attention. Divide the overall strategy into short-term goals while keeping the long-term goals and their achievement strategy flexible. An external technology partner can analyse your current business processes and help you set up a digital transformation plan.
Digitise assets and automate operations
Before you automate the core operations within the value chain, you must digitise the assets, including paper records and information spread across different systems and sites. Leverage technologies such as drones, Internet of Things (IoT), wearables, and remote sensors to collect real-time data for further analysis and optimisation.
Drive data-driven process planning and decision-making
Once you digitise the assets, you can drive value by planning, optimising, and integrating the activities across the value chain. To do this, you can leverage data science and analytics and further optimise and simplify complex systems and operations from the mine to the end user.
Digitise and automate support processes
The benefits of digital transformation are not just limited to core on-site operations. You can transform support processes such as finance, HR, supply chain, and customer support. Use robotic process automation (RPA) to automate repetitive, manual, and non-core tasks such as seeking approvals, generating purchase orders and invoices, and staff training and development through self-help modules.
Integrate remote mining locations
Deploying digital technology in remote locations with limited internet has been one of the biggest challenges for mining businesses. To address this problem, businesses are investing in communication infrastructure to leverage edge and cloud computing. Through interconnected systems, the remote data flows to a central hub for monitoring, analysis, and process optimisation. Private WiFi and 5G networks specifically for the mining site help run the systems smoothly.
The risk of not digitising mining operations
With the mining industry set to grow from $1.8 trillion to $2.5 trillion in the next few years, those to invest in digital transformation now will see greater profits.
Without digital transformation, your business faces the risk of operational disruptions, delayed fixes, higher costs of maintenance and repairs, and an inability to adapt to market disruptions. Other significant risks include –
- Inability to cope with regulatory compliances and safety standards.
- Higher cost of operations squeezing the profits.
- Rigid processes that cannot adapt quickly to market trends, production volume changes, and customer buying.
How can Infosys BPM help with mining technology innovation?
Infosys BPM leverages AI, automation, and advanced analytics to address key challenges in the mining industry. We tackle critical environmental, social, and governance (ESG) issues by implementing data-driven solutions that improve sustainability and compliance. Our advanced technologies also streamline supply chain management, enhancing efficiency and reducing operational disruptions. Through these innovations, Infosys BPM is committed to transforming the mining sector for a more sustainable and resilient future.
Read more about mining technology innovation at Infosys BPM.
