INNOVATION : STATE OF PLAY...The mining industry is marked by cyclicality 8x 7x 6x 5x 4x 3x 2x 1x 8x...
Transcript of INNOVATION : STATE OF PLAY...The mining industry is marked by cyclicality 8x 7x 6x 5x 4x 3x 2x 1x 8x...
C O P Y R I G H T © 2 0 1 7 – A L L R I G H T S R E S E R V E D V C I P T Y LT D
W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
INNOVAT ION : STATE OF PLAY MIN ING INDUSTRY SURVEY 2017
S U P P O R T E D B Y
SUMMARY INSIGHTSThe 3rd biennial survey of more than 800 global mining leaders reveals the impact of a rapidly changing international marketplace and its effect on innovation.
Global mining leaders share their views on innovation
Our 2017 survey of innovation across the global mining industry is the third major survey of its kind undertaken by VCI in conjunction with platform partners The University of Western Australia and METS Ignited.
The survey, conducted between August and December 2016, received more than 800 responses from industry executives, across 60 countries.
While the 2016 survey sought to build on data gathered in the 2013 and 2015 surveys, its main objective was to assess the impact of the changing global mining market and its effect on innovation.
The 2017 survey also takes more in-depth look at key industry drivers including social pressures, collaboration across the ecosystem and digitisation.
VCI worked closely with the Chamber of Mines South Africa and Chamber of Mines India on this year’s survey. They provided input to the survey and helped in its distribution.
VCI would like to thank the many mining and associated services companies that took part in the survey. Research such as this is an important part of the development of the sector and will contribute to a robust future.
321 companies
800+ respondents
69% executives
I N N O V AT I O N : S TAT E O F P L A Y ™ W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
INDUSTRY WIDE SURVEY330+ responses across the globe
CEO INSIGHTSInterview series with 15 CEOs and Chairmen across the globe
FULL ECOSYSTEM SURVEY 800+ responses Launch in mid 2017
2013
2015
2016
2017
INAUGURAL SURVEY55+ responses across Australia
Innovation : State of PlayESTABLISHED IN 2012
CROSS-INDUSTRY REPORTInterview series with CEOs across the resources, agriculture, health, infrastructure, defence, arts, culture and tourism industries to compare and contrast the state of innovation and identify share opportunities
“ ‘What this survey really does is drive an arrow through the major mining
innovation issues. I hope people pay a great deal of attention to it.’
M I N I N G C E O
I N N O V AT I O N : S TAT E O F P L A Y ™ W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
2018
The mining industry is marked by cyclicality
8x
7x
6x
5x
4x
3x
2x
1x
8x
7x
6x
5x
4x
3x
2x
1x1960 1970 1980 1990 2000 2010 2020 2030
Note: Prices listed in chart are 2016 World Bank forecasts published on July 26th 2016
P E R I O D 1
Rise of Japan
P E R I O D 2
Post-Japan reversion and plateau
P E R I O D 3
Rise of China
P E R I O D 4
Post-China plateau
Crude oil Copper Iron ore Gold
I N N O V AT I O N : S TAT E O F P L A Y ™ W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
We are at a pivot pointWE ASKED:
Which of the following macro trends will have the biggest impact on mining over the next 15 years?
Technological change and disruption
Environmental pressures
Technically aware generation entering the workforce
Asian (inc. India) economic development
Global integration
Transparency and regulation
Geopolitical tensions
Ageing population
Income inequality
Urbanisation
62 59
37
2622 21
15 1410
6
BY % OF RESPONDENTS
“ ‘The Market, Moore’s Law and Mother Nature are the three biggest
forces shaping the world today.’
T H O M A S F R I E D M A N
I N N O V AT I O N : S TAT E O F P L A Y ™ W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
The risk of technological disruption is realAreas most subject to disruption over the next 15 years.
Sensing & data
Artificial intelligence, decision support and analytics
Robotics and automation
Biological and chemical engineering
Advanced materials
Manufacturing techniques
Energy technologies
Integrated and continuous processes
Communications technology and connectedness
4
1613
3
11
20
26
14
22
11
4 30
4 5
0
63 4
12 12
37
21
11
1512
10
BY % OF RESPONDENTS
2013 2015 2030
I N N O V AT I O N : S TAT E O F P L A Y ™ W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
EXTRACTION
PROCESSING
EXTRACTION
ENVIRONMENT
EXPLORATION
END-TO-END OPTIMISATION
Different regions have different needsWE ASKED:
Where in the value chain do you see the greatest value over the next 15 years?
I N N O V AT I O N : S TAT E O F P L A Y ™ W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
Society’s expectations are increasingWE ASKED:
Why is mining perceived negatively in society?
HIGH PROFILE ACCIDENTS COMMUNITY IMPACT ENVIRONMENTAL IMPACT
31 %
46 %
76 %
I N N O V AT I O N : S TAT E O F P L A Y ™ W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
Systemic design is required for sustained successWE ASKED:
How should investment in innovation achieve the best overall social, environmental and economic outcomes?
37 % INVEST IN LOCAL SERVICES AND INFRASTRUCTURE
Companies should focus on 2 key areas of outside the fence investment for the highest return
30 % FOCUS ON LOW FOOTPRINT DESIGN
I N N O V AT I O N : S TAT E O F P L A Y ™ W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
Innovation is more critical than ever before
Companies that claim innovation is critical to their company’s survival in the long term.
41 % 62 %37 %
2013 2015 2017
I N N O V AT I O N : S TAT E O F P L A Y ™ W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
Being a follower is not an optionWE ASKED:
What is your company’s approach, and how successful have you been introducing new innovations into your business?
Fast followerConservative follower Lead industry
12 % 43 %6 %
HIGHLY SUCCESSFUL
SUCCESSFUL
NOT VERY SUCCESSFUL
39 %
31 % 39 %17 % 13 %
27 % 20 %50 % 3 %
Lead across industries
Less than a half of mining companies describe themselves as leaders, compared to followers.
I N N O V AT I O N : S TAT E O F P L A Y ™ W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
Ecosystem health drives innovation
Actions and relationships that drive innovation in the ecosystem.
Smaller services companies
GOVERNMENT AND COMMUNITY
RESEARCH SERVICE INDUSTRY MINERS
Applied research
Fundamental research
Larger service companies
Tier 2/3
Tier 1
Expl
orer
s
BIGGEST DRIVER OF INNOVATION
MOST IMPORTANT
RELATIONSHIP
2ND MOST IMPORTANT
RELATIONSHIP
FUNDING
3RD MOST IMPORTANT
RELATIONSHIP
I N N O V AT I O N : S TAT E O F P L A Y ™ W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
Ecosystem health drives innovation
Actions and relationships that drive innovation in the ecosystem.
Believe that Governments should facilitate collaboration platforms
Believe that mining companies should involve suppliers in their innovation process
View CEOs as drivers of innovation in mining companies
Of services companies say that all employees drive innovation
57 % 24 %48 % 33 %
I N N O V AT I O N : S TAT E O F P L A Y ™ W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
A cultural shift to embrace innovation is requiredA shift in industry culture as well as new skills are required to leverage
technological change.
Technological change and disruption (robotics, automation, AI) are expected to impact innovation over the next 15 years
Resistance to change and skill availability are considered the greatest people challenge to implementing new technologies
One in five respondents reported industry culture as the biggest impediment to innovation in mining
I N N O V AT I O N : S TAT E O F P L A Y ™ W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
Business leaders shape this cultureWE ASKED:
Who is the driving force of innovation in your company; and how do you incentivize your workforce to innovate?
All - it is core to our culture
Chief executive officer
Business unit heads
Head of technology
Head of operations
Frontline leaders (eg. Supervisors)
The board
Head of strategy
Head of information technology
0% 10% 20% 30%
Communicate success stories
Demonstrated leadership
Public recognition
Individual incentives
We don’t
Set stretch goals
Career promotions
Create a burning platform
Employee share schemes
0% 10% 20% 30%
Company-wide bonuses
I N N O V AT I O N : S TAT E O F P L A Y ™ W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
Key skills are required to foster acceptanceWE ASKED:
When implementation programs of new innovations fail, what is generally the reason?
Change management
Project complexity
Budget
Impatience
Unforeseen impacts
Insufficient benefits
Technology integration
Technology maturity
Skills
0% 5% 10% 15% 20% 25% 30%
Schedule
Partner relationships
24%
11%
10%
9%
9%
9%
8
8%
6%
2%
3%
“ ‘Many lead operators hate
automation. They struggle to imagine a world where they are
not leading large groups of people’
I N N O V AT I O N : S TAT E O F P L A Y ™ W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
Diversity could be the answerWE ASKED:
Which parts of the mining industry are most subject to potential disruption over the next 15 years?
EXTRACTION
NEW BUSINESS MODEL
61% MALE 39% FEMALE
40% MALE 60% FEMALE
R E S P O N D E R S
R E S P O N D E R S
I N N O V AT I O N : S TAT E O F P L A Y ™ W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
Benchmark companies against peers in the industry.
BENCHMARK
Series of round tables throughout the year exploring key themes from the survey report.
INDUSTRY ROUND TABLES
Interviews with select participants on leading themes from the survey report
DRILL DOWN INTERVIEWS
Present results at selected events throughout the year
PRESENT AT CONFERENCES
What’s next?INNOVATION: STATE OF PLAY IN 2017
Mining Innovation: State of Play 2017 report will be released for sale in Q2
RELEASE REPORT
I N N O V AT I O N : S TAT E O F P L A Y ™ W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
C O P Y R I G H T © 2 0 1 7 – A L L R I G H T S R E S E R V E D V C I P T Y LT D
W W W . I N N O V AT I O N S TAT E O F P L A Y. C O M
Contact us for more information
S U P P O R T E D B Y
Graeme Stanway [email protected]
Corinna [email protected]
Paul [email protected]
Peter [email protected]
Mark [email protected]
Sarah [email protected]
AUTHORS
CONTRIBUTORS