Digital Effectiveness Top Risk in EY Mining and Metals Report
Looking back on EY’s top trends in the Mining and Metals industry in 2008 reflects a very different point in time, when skills shortages and consolidation topped the list of risks. Nowhere in the annual top 10 does one find any reference to digitalization.
How times have changed. “Digital Effectiveness” is right at the top of the list in EY’s “Top 10 Risks Facing Mining and Metals 2017-2018”. EY states: “The focus should be on using digital to solve the most urgent business problem: improving productivity and margins across the value chain.”
EY comments that: “Using digital provides access to additional data and ways of analyzing that data to enhance asset management, improve reliability and consistency, and also introduce predictive capability … Digital enablement could help determine optimal run rates under different conditions, such as the maximum loads and driving speeds in wet weather, and preempt truck breakdowns.” They believe that companies who do not digitally transform will be left behind.
So, where does the industry stand now with regard to digitalization? An EY poll of 700 companies found that most had started considering digital. Thirty-one percent stated that it was part of their day-to-day business, with roughly the same number indicating they had started the journey, 27% were considering it with only 15% stating it was not on their agenda.
EY states that: “Companies need to be pragmatic when targeting digital enhancements. New tools can be OK, but investing in integration and expanding usage of current applications can also generate a lot of value.”
The question many companies have is where to start their digital journey. Dassault Systèmes has helped companies in 12 industries take their organizations on this path, enabling them to realize full-virtualized twins of their businesses over time with its 3DEXPERIENCE platform.
The 3DEXPERIENCE platform that ties together applications frees data from its silos. This enables data to be employed faster in downstream processes, for monitoring of performance, and for continuous improvement. Keeping on track to plan by reducing variation is a key deliverable on the digital effectiveness journey. With the 3DEXPERIENCE platform, all data is centralized and organized around workflows that bring consistency to execution, along with full digital traceability and transparency.
Spanning the mining value chain, the 3DEXPERIENCE platform allows enterprises to build digital effectiveness. It connects applications to improve productivity in all domains, including modeling, engineering, simulation, and execution. With full availability data, a digital version of an enterprise’s processes and operations allows companies to manage their operations for efficiency on a day-to-day business.
After embedding efficiency enablement through digital effectiveness, companies can then begin to play with this virtual version of their business to imagine ways of making them better. The objective, of course, is to find ways that add new shareholder value, an area that is becoming the new competitive battlefield between corporations.
Watch the video “Six Steps to Operational Stability” to find out how you can begin your digital journey.