PERSONALIZATION TOOLS FOR AN ONLINE BUSINESS

By Shannon Belew, Joel Elad

When you have an Internet business there is almost always no shortage of online tools to help manage and grow your business. This is certainly the case with content personalization for the web. Here are some favorite solutions that make it easy to use personalization on your site in an effort to increase conversions — and revenue!

  • Triblio: Considered an Account Based Marketing (ABM) tool, Triblio allows you to show personalized content and offers on your website to prospective buyers. You can provide your content to known and unknown website visitors, as well as show personalized content to targeted buyers (specific leads or accounts you are trying to influence and sell to). Triblio also works with e-mail or marketing automation platforms and Google AdWords.
  • Folloze: Account-based marketing is also a core capability for this personalization tool. But one of the things we really like about Folloze is the unique method for delivering personalized content to buyers. Folloze lets you create content boards that contain many different pieces of content all designed for a specific buyer. Think of it in terms of a Pinterest-style layout of a board (or online page) that groups your content in one easy to access place. The figure shows an example of a personalized board from the Folloze website. Another benefit of this tool is that it not only tracks who engages with or visits the board, but which pieces of content they interact with; and it lets you see who the prospective buyer is that is viewing the board. You can put a link to a Folloze board in an e-mail, on a page of your site, or just about anywhere.
  • Evergage: This content personalization tool monitors your site visitors’ intent in order to know which content to show them. In addition to tracking what places of offers get clicked, Evergage also tracks how much time is spent on each page, where the visitors’ computer mouse hovers, and how they scroll through a page. Looking at a host of data points as they occur on your site in real-time, or why a visitor is actually on the site, the tool uses machine-based learning to make recommendations and decisions on which content to deliver to the visitor. Evergage is designed for large e-tailers and other sites with heavy traffic, and can identify the users and what purchases or interests they’ve had on other sites and then recommend similar products or content to be shown on your site.
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Create a custom board to deliver highly personalized content to buyers using Folloze.

There are plenty more web personalization and account based marketing tools available. And, you don’t have to start out using the tools, which can range from several hundred dollars per month to several thousand dollars monthly. These tools are a significant investment. But to compete online today, offering a one-to-one personalized approach to marketing with content and product offers is quickly becoming a necessity in order for you to remain competitive.

Visualization Program Protects Statistical Significance

In the modern age when Microsoft Excel lives on nearly every computer, and programs like Qlik® use advanced analytics to draw up graphical representations of big data, it’s easy for users to explore large data sets for exciting correlations and discoveries.

Visualizations in green represent a statistically significant finding. Findings in red are on “shaky statistical ground.” (Source: Kraska Lab/Brown University)Visualizations in green represent a statistically significant finding. Findings in red are on “shaky statistical ground.” (Source: Kraska Lab/Brown University)Unfortunately, as any statistician will tell you, the ability to ask unending questions of the same data series increases the chance for false discoveries. This idea is termed the “multiple hypothesis error.”

Luckily for those of us enamored with modern data visualization software, a team of researchers from Brown University may be on their way to resolving this error.

Tim Kraska, an assistant professor of computer science at Brown and a co-author of the research, describes the error. He explains, “these tools make it so easy to query data. You can test 100 hypotheses in an hour using these visualization tools. Without correcting for multiple hypothesis error, the chances are very good that you’ll come across a correlation that’s completely bogus.”

The researchers presented a new program called QUDE at the Association for Computing Machinery’s Special Interest Group on Management of Data (SIGMOD) 2017 conference in Chicago. QUDE adds real-time statistical safeguards to interactive data exploration systems.

The program highlights figures and feedback green or red to indicate their statistical significance or potential concern regarding the correlation.

Ordinarily, insignificant correlations would be caught by well-established protocols in statistics. The problem is, most of these techniques are used after-the-fact, and with visualization software, more and more users are not trained in statistics, they merely rely on the program to present them with methodologies.

“We don’t want to wait until the end of a session to tell people if their results are valid,” says Eli Upfal, a computer science professor at Brown and research co-author. Instead, Upfal explains, “you have a budget of how much false discovery risk you can take, and we update that budget in real time as a user interacts with the data.”

While this program, like any program, cannot guarantee complete accuracy, it’s a solid step in the direction for amateur statisticians.

New Report Captures Equipment Manufacturers’ Contributions to Economy

The equipment manufacturing industry supported almost 1.3 million jobs in the United States in 2016, according to a new report released Thursday by AEM.

The report, which was produced by the leading economic research firm IHS Markit, found that equipment manufacturers added $159 billion to the Gross Domestic Product (GDP) of the United States last year.

The report came as major segments of the equipment manufacturing industry met at CONEXPO-CON/AGG in Las Vegas, and as national elected leaders place a renewed emphasis on manufacturing jobs and infrastructure investment.

The research project offers the best snapshot of the equipment manufacturing industry’s reach in several years.

The report found that equipment manufacturers in the United States supported over $416 billion in sales activity in 2016, generated about $87 billion in labor income (amounting to about $78,000 in wages per equipment manufacturing industry job), and contributed over $25 billion in local, state and federal taxes.

Texas leads the country in equipment manufacturing employment and output, the report found, followed by Illinois, Wisconsin, Ohio and Iowa.

The research also examined the equipment manufacturing industry’s impact in Canada. Equipment manufacturers in Canada supported some 149,000 jobs last year, and generated some $15 billion (USD) for the Canadian economy in 2015.

“AEM is proud to represent the men and women of the equipment manufacturing industry across our country. This new report helps to put into context the many great contributions of our industry,” said AEM President Dennis Slater. “Our industry is a core part of America’s manufacturing economy, and we are eager to continue to grow, and, hopefully with a significant investment in our infrastructure, help put millions of Americans to work.”

IHS Markit additionally examined the equipment manufacturing industry’s impact over the construction, agriculture and energy (including oil and gas and mineral exploration) equipment segments. IHS Markit found that construction equipment manufacturers make up about 38 percent of the industry and directly support 163,000 jobs; farm equipment manufacturers represent 27 percent of the industry and directly employ about 114,000 people; and energy equipment manufacturers account for about 35 percent of the industry and directly support 148,000 jobs.

The research examines the direct impact of equipment manufacturers on the economy, as well as indirect effects at suppliers, service providers or other ancillary businesses related to the industry. The report also accounts for the induced effects of the industry (i.e., the additional effects on employment and income in communities).

The report adds additional detail about some of the key variables that support each industry segment, and forecasts growth for the industry into 2018 and beyond.

Click here to access the full report.

Posted: 3/15/2017 1:57:35 PM

Sandvik, IBM partner to bring advanced analytics for mining sector

Sandvik Mining and Rock Technology has partnered with IBM to develop data driven productivity and predictive maintenance services for the mining and rock excavation industry.

Under the agreement, the two companies will develop advanced analytics solutions to improve maintenance, safety, productivity and operational services of mining and rock excavation equipment.

The rising number of onboard instrumentation and data gathering capabilities in heavy equipment have provided mining operators more opportunities for increased productivity; with the use of digital technologies estimated to create around $100bn in value to resources companies by 2035.

The collaboration will involve the use of remote monitoring, advanced analytics, and cognitive technologies, allowing mining companies to combine equipment data from a range of resources and automatically analyse the patterns to increase performance.

The first state of work will be done on loaders and trucks; connecting up to 15 units and integrating live data from multiple on and off boarding systems to run the analytic algorithms.

The combined information will allow mining companies to make better production plans and maintenance schedules for their equipment.

It is also set to generate greater yields and lower costs per tonne of ore.

Sandvik has identified between 20 and 50 per cent decreases in costs per tonne with their digital technologies, and these new analytic capabilities are set to reduce costs even more.

President of Sandvik Mining and Rock Technology, Lars Engström, said the company’s OptiMine and AutoMine solutions for data collection already provide a suitable platform for IBM analytics solutions.

“This collaboration fits well with our service portfolio, which is based on traditional life-cycle, enhanced technical, and business services, all of which are aligned to improve safety, secure competences for mine operations and increase our customers’ productivity,” he said.

Anders Fredholm, VP Industrial Products Industry, IBM Europe also welcomed the collaboration and said the company looks forward to providing smarter digital services to natural resources companies worldwide.

The Future-Proof mining plant

Globalisation, competition, material and resource pricings, aging workforces and regulatory pressures are just some of the challenges facing Australian mining companies. Some of these challenges grow more daunting by the day. But Australia has always been an innovative force in making the best of difficult situations, particularly in the mining sector.

The external factors that affect mining are so volatile that it is difficult to pin down with absolute certainty what the industry will look like in a year – let alone five years or a decade. To combat these unknowns mining companies are using Industrial Internet of Things (IIoT) technologies to more effectively control their own assets and in-turn, creating future-proof mining plants with modern process automation at its core.

The Future-Proof Plant helps mining organisations in three ways: keeping pace with accelerating business and operational requirements; evolving with changing technologies; and attracting the right people, then supporting them with the required knowledge.

  1. The Speed Challenge

Over the last decade, critical business variables associated with industrial production has fluctuated. For example, today the price of the electricity that a mining operation consumes might change every 15 minutes. This increase in speed has also impacted the frequency in variation of the production value and material costs of an operation.

Now, the speed of business is so fast that industrial operations must be able to respond to market changes in real time, including many traditional functions that industrial operations have performed in transactional business systems. Real time business functions such as performance measures, activity-based accounting and profitable safety and asset performance management, will need to operate succinctly in process automation systems.

These systems must be designed right from inception to be extremely agile, adapting to process changes quickly and easily. As these process changes are implemented, object-based industrial service-oriented architecture (SOA) can help industrial companies to adapt flexibly. This future-proofs the operation while maintaining the operational integrity of the mining plant.

Tightly integrated, resource-to-market, data-driven businesses allow advanced Supply Demand Optimisation (SDO) systems to be implemented. These systems provide real-time visibility and predictive capability, allowing businesses to overcome the challenge of complex interlocked operations. In turn, this enables ‘lean’ production that meets market demands whilst mitigating bottlenecks.

 

  1. The Technology Challenge

 

As well as helping companies meet business challenges by future-proofing operations, modern process automation systems embody all the characteristics essential to keeping ahead of ever-evolving technological developments by future-proofing their technology as well.

Control room components such as operator consoles and engineering tools have much shorter lifecycles than process-connected components such as transmitters and control hardware. There is also an increased use of mobile technology, with two out of three businesses in a recent Schneider Electric IoT survey planning to implement the Internet of Things via mobile applications in 2016. No single computing architecture will monopolise these systems. Instead, IoT will flourish across systems, both at the edge and on premise.

This in-part reflects ongoing security concerns, with cybersecurity threats related to IoT a critical challenge for future business. Making information available across heterogeneous computing environments will help end users adopt IoT solutions in the way that best suits their security and mission-critical needs while also offering those with legacy technology infrastructures a logical and manageable path forward.

Industrial businesses can protect their engineering investments and in many cases, use emerging technology to drive more value from their automation solutions. From an architectural perspective the key features of such an automation system are threefold: providing a distributed software architecture that operates in standard operating system environments, utilising open industry standards and building a distributed object-based communication infrastructure.

In recent years, the concept of continuously-current technology has been taken to a new level by extending the basic system design to become an industrial service oriented architecture (SOA).

Looking at Schneider Electric technology as an example, clients found they could continually evolve to the latest state-of-the-art technology – while preserving existing hardware, software and applications. This enabled clients to protect their engineering investments and in many cases to use emerging technology to drive more value from their automation solutions.

This approach means Process manufacturers have the flexibility to continuously upgrade smaller components to meet emerging business needs, without having to upgrade everything at once, thereby minimising downtime.

Increased use of open standards, with a transparent data-driven approach is based on the desire among industrial companies to have common approaches, allowing systems to integrate and interoperate. Better integration enables the flow of data to information, knowledge and offers operational insight, encouraging efficient collaboration across mining plant operations.

  1. The People Challenge

 

A final important issue facing industrial companies over the next few decades will be the changing workforce; retirements of the older workforce and training the next data-driven and more transitory generation. The processes of a Future-Proof Plant helps reduce the impact of these changes, primarily by using automation technology such as virtual reality to embed expertise into systems rather than people.

Properly designed automation software can help capture the intellectual property of engineers and operators before they depart, safeguarding important information and valuable processes. Software workflow engines at the system layer allow intellectual property to be embedded into the system environment. Therefore, critical information and knowledge can be passed on to new employees in the most succinct and efficient way. With these assets available on demand, operators and maintenance workers can be guided through unexpected and perhaps unsafe events via intellectual property embedded in automatically triggered workflows.

Automation systems with sophisticated design are also able to help facilities improve both safety and efficiency standards. Operator training simulators used in conjunction with contextualised virtual reality training systems can help new mining operators achieve certification levels in less than half the time of traditional methods. With the challenge often lying in training new operators how to respond to infrequent or unexpected events, simulation and augmented reality software can be programmed to effectively teach this.

Embedding lifetime training capability into the online environment through performance feedback mechanisms and performance prediction software ensures continuous worker development after certification. Since people learn by feedback control, providing the capabilities of the Future-Proof Plant’s operational insight environment drives workers to even higher levels of performance than that of their predecessors.

The future – tomorrow and beyond

IIoT automation system technologies cannot address every challenge faced by Australian mining. But creating Future-Proof Plants ensures that a company’s assets are used at their maximum capacity and efficiency and will continue to do so effectively in the coming years.

Protecting the operational integrity of plants, enhancing the operational insight of people and enabling plants to adapt easily and affordably to change are just some of the benefits local companies are already experiencing today. These benefits will help them remain competitive tomorrow and beyond.

Iot platform revenues will grow to $3 billion worldwide by 2021

Editorial

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According to a new research report from the M2M/IoT analyst firm Berg Insight, the global third party Internet of Things (IoT) platform market increased 36 percent to $610 million in 2015.

Growing at a compound annual growth rate (CAGR) of 30.8 percent, revenues are forecasted to reach $3.05 billion in 2021. There is a wide range of software platforms available, intended to reduce cost and development time for IoT solutions by offering standardised components that can be shared across many industry verticals to integrate devices, networks and applications.

Most IoT platforms available on the market today can be categorised as being a connectivity management platform, a device management platform or an application enablement platform, although there are many products that offer overlapping functionality or other unique features.

Many enterprises and organisations have already been involved in various machine-to-machine (M2M) deployments that have typically been characterised by customised solutions deployed within single industry verticals, or by one company, to improve existing business operations. IoT puts more emphasis on integration of sensors, devices and information systems across industry verticals and organisations to transform operations and enable new business models. “IoT furthermore aims facilitate a better understanding of complex systems through analytics based on data from diverse sources to assist decision making, improve products and enable entirely new services”, said Andre Malm, Senior Analyst, Berg Insight.

Whereas connectivity and device management platforms have already reached comparatively high adoption, the market for application enablement platforms (AEPs) is in an earlier phase. AEPs typically provide functionality such as data collection, data storage and analytics.

Fully featured platforms also provide tools, frameworks and APIs for creating business applications featuring data management, event processing, automated tasks and data visualisation.

Many platforms also provide tools and ready-made libraries and UI frameworks that facilitate modelling and creation of interactive applications, workspaces and dashboards with little or no need for coding. “The AEP segment is seeing considerable activity in terms of acquisitions and new market entrants”, said Mr. Malm.

After PTC acquired ThingWorx and Axeda, other major software and IT companies have followed. Examples include Amazon that acquired 2lemetry, Autodesk that acquired SeeControl and Microsoft that acquired Solair. Other leading IT companies that are extending their service offerings to include IoT platforms – often focusing on analytics and machine learning – include IBM, SAP and Oracle. “As a group, AEP vendors primarily face competition from system integrators and companies that develop similar functionality in-house”, concluded Mr. Malm.

BHP launch coal remote operations centre

IROC automation

BHP has launched an integrated remote operations centre (IROC) in Brisbane for its coal business.

The miner aims to replicate the success it had with its IROC in Perth, which controls operations right across the Pilbara, covering more than 1500 kilometres of rail, stockyards, and two separate port facilities.

Working with its joint venture partners Mitsubishi and Mitsui, the miner plans to provide real time coverage of its seven BMA mines in the Bowen Basin and the Hay Point Coal Terminal near Mackay, as well as its two BMC coal mines in the Bowen, and the Mt Arthur coal mine in the Hunter Valley.

According to BHP, the IROC will be a new, state-of-the-art facility located in Brisbane that will deliver an advanced control room which will operate continually, 24 hours a day, seven days a week.

“This is a very important step on our innovation and productivity journey across our coal assets and will mean we can more effectively replicate our best practices at each and every site,” BMA said in an official statement.

“The IROC will ensure we can optimise our production supply chain at every point in the cycle and deliver substantial, sustainable savings for our business, providing us with a significant competitive edge.”

When fully operational, the remote control operations centre will employ around 200 workers across a range of different roles, most of whom will be drawn directly from existing operations.

However the implementation of the new centre will affect workers on site, with BHP stating, “We understand that this type of innovative change to the way we operate can also bring uncertainty and displacement for some people, and we will be working closely with our employees to communicate regularly with them through this process.”

BHP has been contacted for further comment on how many jobs may be lost, and which roles will be most affected.

The miner has launched videos on Youtube to recruit controllers for the centre.

Breaking down Big Data

Breaking down Big Data

The premises, processes and personnel of Xstrata Copper's Mount Isa Mine, Western Queensland, Australia

Mining is an industry that runs the technological divide.

Whilst it is leading the way in terms of remote operations and automated systems that allow a miner to operate a mining truck from thousands of kilometres away, at the other end of the scale enormous processing and metallurgical operations are monitored, controlled, and planned using Excel sheets despite the fact that mountains of precise technical data is already being collected.

With the rise of Big Data, and the ability to monitor – often in real time – flow data from tanks and pipes, as well as metal and acid content, and compare it with historical data engineers are often overwhelmed with information.

Nearly every aspect of the mining industry, from minute processes through to massive haul truck payloads and warehousing and maintenance activities are now measured, tracked, and stored, and these machines and data sets can now compare and create a predictive picture for future production in a way the industry never could before.

“We see a significant number of mines that have data locked away in individual systems but now want to federate that data together, instigate new processes, involving their people in new ways to achieve better outcomes. Mining generates Big Data because the number of sensors are growing rapidly and systems involved are becoming more intelligent, so the challenge ahead is to federate that data,” Cisco Systems engineer Michael Boland said.

Rio Tinto has embraced this innovation path, and opened its ‘Big Data’, Analytics Excellence Centre early last year to help it deal with these reams of data from disparate sources.

Put simply, the humble –and easily amendable with no tracking oversight – Excel sheet will no longer cut it in the current environment.

This need for a greater data control, oversight, and comprehension is compounded by the recent changes to the ASX governance rules. Publically listed companies will now need to disclose their exposure to economic, environmental and social sustainability risks for the first time. This means miners need to present accurate, relevant corporate data, e.g. their operating data and compliance frameworks, to a level that was previously not required.

With this growing need to utilise the full capabilities of Big Data analytics to comply with ASX rules and lift efficiency, combined with clarity of data – as well as the capability for preventative maintenance – Metallurgical Systems has developed a program designed to tick these boxes, and which has already been roadtested at a number of copper and polymetallic operations globally.

The program, Metallurgical Intelligence, is a whole-of-plant management software that utilises thousands of data points to provide clean, accurate data, combined with automated intuitive reporting that integrates with existing systems, software, and processes, and can be tailored to individual sites.

Speaking to Metallurgical Systems managing director, John Vagenas, he explained the program was developed as there was a gap in the industry, and many mines were missing an opportunity to evolve their operations through the use of Big Data analytics.

The need for this system is being even more prevalent as the higher level engineers get closer to retirement age, and take not only their skills but also their knowledge of plant operations and what are often proprietary data systems with them, leaving a large knowledge gap.

Metallurgical Systems began life as an offshoot of Elemental Engineering, a process simulation and process development company focused on mineral and metallurgical processing. Elemental is already well known for its work on OZ Minerals’ hydromet demonstration processing plant.It parlayed this knowledge from Elemental to spin out the new company focused on its plant information system, Metallurgical Intelligence.

Using Tableau, Metallurgical Systems has allowed for data integration and drill down capabilities for engineers, operators, managers, and stakeholders in a user friendly environment, providing a total overview of every aspect of plant operations without the need for lengthy training programs or a background in IT.

amjuly16soft3“Once the system has enough information gathered from all the monitoring devices throughout the process, it can run a dynamic simulation of the entire process system down to individual tank level, building it from each node – and keep in mind that a plant may have 2000 to 3000 nodes,” Vagenas told Australian Mining. “This is a system that can examine and monitor information minute by minute, and be used to conduct detailed investigations and resolve issues.”

The program can also combine this information with data gathered from historical sources and the lab to calculate plant chemistry and throughput, and combine this with data collected from the mining process, as well as power generation and distribution data, to give a never before seen level of interconnectedness and oversight over an operation.

“This program can query any places that data is being stored, gather it together, filter it for quality and then organise it in a common structure where you can use it effectively,” Vagenas said.

The ability to get right down to an almost ridiculously granular level makes the program a stand out.

“This program can break down how different parts of the plant are performing, across any given shift or across a period of time, and how inventory is changing through the site,” he said.

It also performs rapid calculations

“It validates what’s in the refinery at any given time, down to the equivalent item level, and what’s in each tank,” Vagenas said, “it helps you understand what’s in your plant, what’s changing, and how it is changing.”

“You can get the details on how much acid is being consumed by each element, and how much material is leaching is in each tank, and the tank profiles.”

With this understanding, greater efficiencies in ore blending, use of consumables, and power usage can be gained. This data can then easily be shared amongst the company.

Vagenas gave the example of how it can delineate information, using one client’s experience on how it collects and presents data in a meaningful and accessible way.

This major miner powered its plant using a number of different electricity suppliers; it used the program to figure out the percentage each supplier provided per hour, and the costs, and then used this information to renegotiate contracts.

The program also allows for operating prediction, as it can overlay information which can then be used to compare relationships between aspects such as throughput, plant chemistry, acid usage, and recovery over certain periods of time or different shifts, and the use that data to predict future performance.

It can also be used for maintenance purposes. As it allows for a drill down to individual instruments and sensors, the program can be used to see which sensors are gathering data and where they reside in the plant, and if not those individual nodes can be investigated to find out why.

This system is also explicitly transparent, Vagenas said, as it uses individual log-ins and tracking to show what changes were made, and who made them.

It brings companies up to par in terms of the new ASX changes by making them compliant with the new codes, and makes their data easily externally auditable, and allows the company full access to their own data to make better, more incisive business decision.

Vagenas demonstrated its ease of use, highlighting its simple drag and drop system, stating that by using the Tableau interface for reporting it makes the process a lot more intuitive, and helps cuts tasks that previously took hours down to minutes.

He added that Metallurgical Systems is also adding new user interfaces to the program in November, as “we think we can make this even better”.

“This program is breaking down Big Data, and letting engineers get back to their job of analysing information and actually running the plant.”

Miners need to focus on balance sheets to survive, EY says

Mining companies need to focus on strengthening their balance sheets and generating cash if they are to survive current market instability, EY states in its latest report.

In its latest report, Navigating Volatility: Do you change your business or the way your business works, EY predicts the current period of market instability to remain for some time, stating “the longer-term economic outlook is volatile, leading to the possibility of substantial revisions to long-term metal price forecasts and making it hard for mining and metals companies to plan for the future”.

The study lists six key areas resources companies can focus upon to manage this current period of instability, mainly cost reduction; working capital; productivity; capital effectiveness; portfolio strategy; and financing.

Commenting on the report, EY Global Mining & Metals advisory leader Paul Mitchell stated, “Volatility will be a challenge for the mining and metals sector for the foreseeable future and BREXIT has brought additional uncertainty to this, with questions on how it may impact an already slow growth global economy. Locally, the Australian Federal election has potentially provided further uncertainty.”

“Our analysis is clear that mining companies need a different mindset in this environment if they want to maintain a strong balance sheet and develop plans for long-term profitability,” Mitchell said.

“Too many companies have viewed cost reduction measures and productivity initiatives as a once-off, when what they need to be doing is embedding continuous improvement in their DNA.”

He called on miners to reconfigure the way they approach their existing productivity, and turn to other industries to learn from their innovations.

This was echoed by Dassault Systemes Asia Pacific South region leader for Natural Resources business transformation, Adrian Hale.

“By looking to other industries, the mining industry can incorporate new applications into existing technology for improved productivity. More advanced simulation and 3D technology, as well as big data and the interoperability of systems, must be used at each stage of the mining cycle to improve productivity and output levels. Bold moves are needed to propel the industry forward,” he said.

“To understand where mining can look for innovation, it is useful to examine what has led to successful transformations in other industries; take, for example, Toyota – it became the world’s largest and most successful producer of automobiles by becoming an agile business – one that rapidly adjusts itself in light of changing demand and economic conditions.”

For a long time industry heads have said mining could learn more about productivity and efficiency by studying the manufacturing industry.

Unsurprisingly, BHP chairman Jac Nasser – a former president of automotive manufacturer Ford – advocates mining study the manufacturing industry for efficiency measures.

“Although there are as many differences between the automotive and mining sectors as there are similarities, forward thinking mining can likely make unanticipated productivity gains by taking lessons from this example – including reforming industrial relations, co-opting suppliers into the cost equation in an effort to extract efficiency, and shifting from traditional command-and-control hierarchies into a world of matrix or networked structures where human ingenuity is not overly hampered by rigid processes,” Deloitte said.

Even Rio Tinto’s former head of technology and innovation Greg Lilleyman said, “There may well be technologies from manufacturing, food processing, oil and gas or aerospace which are ripe for application [in the mining industry].”

Mitchell went on to say miners have remiss in not using these other industries as an example for improving their own productivity.

“Mining companies have generally been too slow to consider how they can apply best practice processes from other sectors. Consumer products companies have historically had lower margins so capital and cost efficiency has always been a focus – there are examples of some companies who have embedded process improvements that have enabled year-on-year savings of US$1.2b over the past three years,” he said.

“Miners can no longer rely on conventional wisdom and expertise from within the sector; they must cast the net wider and seek outsiders’ experience to get that next productivity and efficiency boost.”

The EY report also states the existing supply chain is ripe for innovation, and an area where both cost and productivity gains can be made.

The NIEIR’s executive director, Dr Peter Brain, has previously told Australian Mining of the importance of supply chain control, and the repositioning of this segment of the sector.

“What the leaders will do is invest heavily in new technology to integrate the front, middle and back office; much more remote control from remote operations, and looking across the entire supply chain, integrating not just simply pit-to-port, but pit-to-customer.”

Mitchell added that the current implementation of Big Data across the industry will also drive change.