A time of disruption
The large movements across the radar are clear indicators that disruption is already here. Societal change, new technologies and the race to transform business models are driving a whole range of disruption for mining and metals companies. Pressure on technology and automotive companies to secure the supply of New World commodities is opening another avenue of potential disruption to current business models. Over 30% of our survey respondents thought that technology companies have the potential to disrupt the sector. We agree. They have good access to capital and are already investing in the innovation and technology that mining operations need to be more effective.
Does operating in a time of disruption take more than a license? We discuss this below, in the top ten business risks facing mining and metals.
1. License to operate (up from 7)
Is license to operate the disruptor you have missed?
A narrow, legacy focus on license to operate may be the strategy that puts you out of business. The stakeholder landscape is shifting. There is more information, bigger platforms and more at stake than ever before. Underestimating the power of even a single stakeholder would be a mistake.
The sector needs to redefine its image as a sustainable and responsible source of the world’s minerals.
To do this, organizations need to:
- Take a whole of business approach to license to operate driven from the top down
- Commit and contribute to community, government, employees and environment needs beyond life of mine
- Walk the talk! Make it part of the company’s DNA
2. Digital effectiveness
Is riding the digital wave key to wiping out our competition?
Digital effectiveness is key to gaining a competitive advantage. However, a recent poll of over 600 mining and metals executives revealed that a significant 37% of management have little or no knowledge of the digital landscape.
Miners understand it is about solving productivity and margin but are applying point solutions and are not investing enough to transform. It is only when miners apply these solutions across the entire value chain to create a digital mine that can they truly transform and emerge as the dominant players in the market.
To achieve this kind of transformation, CEOs need to take ownership of the digital agenda.