Dale Schilling - The Boston Consulting Group -Technology-enabled Transformation Game

'The Art of the Possible': WorkshopTechnology-enabled Transformation

Longwall ConferenceNewcastle, 27 October 2014

BCG Presentation-Longwall Conference-Technology Enabled Transformation-Workshop-20151026.pptx 1Draft—for discussion only

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The Boston Consulting Group: Who we are

Who is BCG?

A leading global management consulting firm operating since 1963

We collaborate with our clients to address core issues of direction and performance

• Strategic insight• Operational effectiveness• Leadership and change

We create sustainable competitive advantage

• Support of critical initiatives that lead to fundamental change and improve our clients' competitive positions

BCG's global presence

Private company with 81 offices in 45 countries

• Ability to deliver a truly global and unified team for our clients


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A strong presence in Metals and Mining

... across a wide set of topics

Orga-nisation

Operations

Strategy

Commercial

Strong credentials in mining ...

Operational ExcellenceContractor ManagementProc. & Supply-ChainLarge Capex Mgmt

Operating ModelHeadcount EfficiencyOrg Restructure

Marketing ExcellenceLogistics

M&APortfolio StrategySupply & DemandMega-trendsInnovation Strategy

Deep global expertise in the mining sector, covering all key mining geographies

• 10 out of the global top 15 mining firms• >300 mining cases in the last 5 years

Fully dedicated mining team• Extensive, long-lasting practice, covering all

commodities and topics in depth• Network with >75 metals & mining partners

globally

Deep topic expertise across operations, strategy, organisation, and commercial

• Significant work done from exploration to processing and from field operations to long-term strategy


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A tale of two popes

Source: NBC 's Today Show


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GE Gas Turbine Example:

~1,000 sensors

1~2% of total cost

10 GB of incoming information per day, ca. 4 TB p.a. (across more than 50 countries worldwide)

GE aims for 1% of gas consumption savings through pattern recognition from big data

Application of big data and advanced analytics optimises the way capital equipment works

Vibration, temp, pressure sensors

to detect Shaft abnormality

Temp, pressure, humidity sensors

to detect abnormality of

blade

Combustor pressure/Vibration

sensor

Ingredient, temp,

pressure, flow sensors for fuel inside

the burner

Emission sensor to measure

exhaust gas


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Mining is the next industry to see a productivity uplift from technology-enabled transformation

1980s

Just-in time, automation, global platforms

Manual assembly lines

Auto industry

Multiple-brands with common supply chain

Manual stocking, point-point logistics

Grocery and Consumer Goods

1990s

Customer oriented, hub-and-spoke

Scale game, point-to-pointLogistics

Standardised, integratedLocal, siloedIndustrial products

2010s

Mining Autonomous, remote, deeper, advanced processing

Manual, not integrated, simple processing

Source: BCG experience

Multi-channel, 24x7, single view of customer

Branch, office hours, account based

Financial services

2000s


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Today, we'll together explore the impact of innovative technologies on your businesses

New technologies with the potential to disrupt industries

We'll discuss the impact of these technologies

Intention is to facilitate conversations on how technology can be applied to solve your most pressing business problems. Workshop will help:

• Create awareness of the transformational opportunities of technology

• Brainstorm tech solutions to a specific business problem in an industry analogous to mining

• Trigger discussions about the interface between tech and non-tech parts of an organisation


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Parting thoughts

How can we use technology to integrate across operations and business units?

What are the potential benefits, based on a view of the future operating model?

How do we build a culture and organisational capability around innovation, while maintaining a strong focus on risk management and safety?

What is the most productive way to partner with vendors and other suppliers?

What changes to management systems, physical processes and people are required to capture the greatest benefits?


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Questions?

If you would like to learn more, or are considering how to integrate low-cost technology to boost productivity and cut costs at your site, please contact

Dale SchillingPrincipal, Mining Projects and OperationsThe Boston Consulting Group

Email [email protected] https://au.linkedin.com/in/daleschilling1


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The services and materials provided by The Boston Consulting Group (BCG) are subject to BCG's Standard Terms (a copy of which is available upon request) or such other agreement as may have been previously executed by BCG. BCG does not provide legal, accounting, or tax advice. The Client is responsible for obtaining independent advice concerning these matters. This advice may affect the guidance given by BCG. Further, BCG has made no undertaking to update these materials after the date hereof, notwithstanding that such information may become outdated or inaccurate.

The materials contained in this presentation are designed for the sole use by the board of directors or senior management of theClient and solely for the limited purposes described in the presentation. The materials shall not be copied or given to any person or entity other than the Client ("Third Party") without the prior written consent of BCG. These materials serve only as the focus for discussion; they are incomplete without the accompanying oral commentary and may not be relied on as a stand-alone document. Further, Third Parties may not, and it is unreasonable for any Third Party to, rely on these materials for any purpose whatsoever. To the fullest extent permitted by law (and except to the extent otherwise agreed in a signed writing by BCG), BCG shall have no liability whatsoever to any Third Party, and any Third Party hereby waives any rights and claims it may have at any time against BCG with regard to the services, this presentation, or other materials, including the accuracy or completeness thereof. Receipt and review of this document shall be deemed agreement with and consideration for the foregoing.

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Dale Schilling - The Boston Consulting Group -Technology-enabled Transformation Game

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Transcript of Dale Schilling - The Boston Consulting Group -Technology-enabled Transformation Game