PERTH (miningweekly.com) – A report by global consulting firm VCI has warned that the Australian resources sector is falling short on innovation and technology strategy.
VCI’s 'State of Play' report surveyed over 800 leaders from 321 companies in the global mining industry and uncovered that, while 66% of Australian mining executives say their companies are prepared for digitalisation, only 26% are focusing on innovation plans that extend beyond just three years.
Despite nearly 98% of Australian mining company leaders indicating innovation is ‘important’ or ‘critical’ to their long-term business strategy, when it came to their company’s focus on a long-term strategy, Australia ranked last in the globe, trailing other major mining regions including South Africa, India and North America.
Since the survey began in 2013, the timeframe for long-term innovation focus in Australian companies has actually dropped by more than half from 59% in 2013 to 26% in 2017.
State of Play founder Graeme Stanway says although Australian mining leaders have an overall understanding of the impact digitalisation will have on their business, for many the ability to define a long-term plan has remained elusive.
“To a degree, Australia’s local industry is gridlocked when it comes to the mechanics of preparing for digitalisation and tech disruption.
“While there’s an intuitive understanding amongst mining leaders that the time to prepare for the digital revolution is now, companies aren’t always equipped to wade through the plethora of tech options, such as artificial intelligence (AI) or data analytics. These technologies are a significant departure from what the industry is used to and more often than not result in a project-by-project approach that stifles change at scale or pace.”
When asked which global trend will have the greatest impact on the industry in the next 15 years, Australia’s mining executives ranked ‘technological change and digital disruption’ higher than any other region, followed closely by ‘environmental pressures’ and a ‘technically aware generation entering the workforce’.
Stanway says while the report highlights a gap that needs to be addressed, it also reveals more positive findings in relation to Australia’s short-term level of innovation compared to the rest of the world’s mining centres.
“Although we’re lacking in long lead planning, when it comes to the success of current innovation programmes, Australia is leading the charge against all other regions, with 68% of Australian companies indicating they are ‘meeting’ or ‘exceeding’ expectations when it comes to performance of innovation programmes.”
Government-funded growth center METS Ignited CEO Ric Gros believes this could be partly attributed to Australia’s mining, equipment, technology and service industry (METS) that is taking advantage of the global shift to digitalisation and technology.
“The overarching way for Australia’s mining ecosystem to expand its competitiveness is to recognise, and build on the role of its METS companies as leading edge solution providers. Digital disruption is forcing major companies to use the specialist skills of smaller service providers.”