Advanced Analytics for Mining Industry

Abstract

Digital transformation (DT) quickly and fundamentally modifies corporate entities or organizations because of digitalization development. This development requires a progressive assessment of the technology used for strategy modification, value chain, management, and business models with important repercussions for customers, business, employees, and the public. As a result, companies launch DT initiatives to examine customer needs and create operational models that exploit new competitive opportunities. In this context, customer value proposals and the operation model’s reconfiguration from the main solutions to manage changes in the digital age. In this regard, companies have been launching their DT initiatives to upgrade their operations in industries in which the product is primarily a commodity, such as the mining industry. In addition, they modify their operating model to reflect users’ preferences and expectations in every activity within the value chain. This approach requires integrating business activities and optimizing the management and monitoring of data associated with each value chain’s essential activity. Although there are numerous possibilities for future development, the present level of digital mining transformation is low. Then, a question arises: How should DT initiatives to enhance mining companies’ operational models be launched and implemented effectively? This chapter discusses the mining industry’s importance, focusing on the sector’s main issues to answer this question. Then, through research, the DT initiative’s key aspects are presented to improve the operational model of the large, diversified mining company; challenges and success factors in a given context are identified and classified. Moreover, the research efforts and obtained results that focus on the role and importance of the DT phenomenon in mining to use digital technologies more widely and efficiently are discussed. Mining companies shift their strategy to include new technologies and adopt new business and operating models; they have done so more quickly and globally than ever before. The combination of market volatility, changing global demand, radically different input economies, the expansion of mining operations for locating additional reserves, and commitment to operational excellence contribute to a seismic shift in the industry. Decades of reducing costs and an aging workforce have led to reduced resource adaptation within mining companies. DT, a rapidly changing set of new technologies, opens new opportunities to improve business efficiency, build accurate and agile planning, increase provider awareness, and cooperate with business partners throughout the value chain. DT can lead to significant differentiation and competitive advantage in the mining industry. This industry has been disrupted by mining automation, new analysis capabilities, a digital workforce, and remote and autonomous operations. All of these factors must be closely examined to boost growth and efficiency. DT and its associated opportunities and risks are crucial to mining businesses. DT has been succeeded by a more interconnected and information-based operation of human interactions. The next wave of industry differentiation is created by the possibilities of new operating models and new optimization levels. This chapter explains the varying levels of acceptance of DT in the mining industry.