Open Innovation in Mining Fundación Chileenergymining.sa.gov.au/__data/assets/pdf_file/0004/... ·...
Transcript of Open Innovation in Mining Fundación Chileenergymining.sa.gov.au/__data/assets/pdf_file/0004/... ·...
Open Innovationin Mining
Fundación ChileJune 2018, Adelaide
Who we are
Funded in 1976 by
the State of Chile
and ITT Corp.
BHP joins in 2005 Foster development
through innovation
Do Tank
(+70 spin-offs)
Public Mission
Private
Management
Model
+160
Organization
International
Network
Ventura Capital
and Open
Innovation
pioneers
We are small in
everything, except
mining
Mobilize talent, capital and
entrepreneurship energy to
mining
Generate “real options”
thay may develop in new
sectos
Why Mining?
In the core of our mission
¿Why Open
Innovation?
Mining companies
are not in the
technological
development
business
Mining companies are
equipped, prepared
and mandated to
absorb their business
risks
The risk-return
profile of
technology
development is
tough to digest for
mining companies
Different agents
with different risk-
return appettites
Information about
their problems
signaling
Transparent and fast
selection processes
“Bankable”
contracts
Clear rules for
sharing resources
($, time, attention)
and results
(information,
knowledge and $)
¿Why Open
Innovation?
Mining
development
Mets
development
¿Why Open
Innovation?
Third role of mining(not only of mining companies)
The temptation of closed innovation(in a VUCA Environment)
•Difficult to fight for attention
•How to distinguish a grass sprout from a
sequoia?
•Very high opportunity costs in managing
early stage innovation
•Very high transaction costs and the
beginning of the road
The challenge
of innovation
in the mining
sector
Tour Package
You know where you are going and the itinerary
You pay the full price in advance
• No flexibility
• No optionality
Backpacking
• You know were your heading and an idea of itinerary
• You change your plan as you learn /experience
• You usually do not end where you where heading
• Flexibility
• Optionality
• You may cut it short or extend it
What’s your choice?
•Transaction Costs
• Information asymmetries
•Access failures
•Power asymmetries
•Coordination failures
•Need of public goods
A broker is needed:
• Independent
•Understands public, academic
and private world
•Operation capability
•Strong brand to sustain tough
conversations
•Strong governance
It does not happen spontaneously
Information &Signaling
Coordination
Legitimacy
Three fronts of action
Mining Open Innovation Platforms
FCH
Suppliers
development
2017-2019
Digitalization – open
the space of new
players
2017-2021
Legitimize Mining
through transparent
tailings monitoring
2016 - 2021
Prepare workers
for the future of
mining
2017-2019
Expande
Fostering
Open
Innovation
Leverage the challenges
of the mining industry to
develop an knowledge
intensive industry of
technological suppliers
Demand pull
is key
Fuente: Cochilco 2018
Chilean Copper Production
70%
World Copper Production
Copper Exports
20% 25Bn
Public Role key…
Induce connections and collaboration
Offer
Support Scaling Investment & Financing
Mining
Companies
Large
Suppliers
SME’s
Large Suppliers
Start-Ups
Accelerators
Research Centers
International Network
Operational Challenges
Validated Technologies& Development
Scouting
Innovative Technologies
Demand
Located at the Intersection of
Productivity & Innovation
TECHNOLOGY MANAGEMENT
BUSINESS MANAGEMENT
Supplier
Development
Mining
Productivity
Identification, Management and promotion
of challenges
Technology Transfer
Technology Mapping
Investment & Financing
Scale-up
Portfolio Management
Ecosystem Linkage
Connect!
UNIVERSITIES
FINANCING
MINING
COMPANIES
GOBERNMENT
SUPPLLIERS
Team - Team - TeamTechnical and Business Capabilities
EXPANDEDirector
• Technology & suppliers database
• Program monitoring and reportability
• Management and formulation of
agreements with stakeholders
• Other private – government linkage
• Development of studies (success
cases, methodologies, others)
Strategy &
Development
Director
Controlling
Managers3
• Technology mapping
• Technology scouting
• Support in characterization of challenges
• Identification of Technological Solutions
• Proposal technical evaluation
• Technical support to the portfolio management
• Technical guidance to suppliers and startups
Technology
Director
Technology
Managers9
• Portfolio management
• Investment & Financing strategies
• Support in the development of
Business model
• Support in scale up
• Support in intellectual property
strategies
• International alliances
Business
Director
Business
Managers2
2017 HighlightsFirst Year of Operations
TechnologiesMapped
600Operational Challenges
34RecommendedTechnologies
72RecommendedTechnologies
$7 MillPotential Contracts
$20 Mill
Innovation is a Global Game
No cooperation, no game
Thank you
Andrés Pesce
tw: @andrespesce10