BCG: Mining's digitalisation 'falling short'

Boston Consulting Group (BCG) has reported that mining and metals companies are up to 40% less digitally mature than comparable industries.
BCG: Mining's digitalisation 'falling short' BCG: Mining's digitalisation 'falling short' BCG: Mining's digitalisation 'falling short' BCG: Mining's digitalisation 'falling short' BCG: Mining's digitalisation 'falling short'

Mining companies cite a lack the expertise and knowledge as a barrier

BCG has released the results of its Metals and Mining Digital Acceleration Index (DAI) survey, which found that just 25% of the 75 large metal and mining businesses it surveyed use customised digital solutions.

The poll of 75 large metal and mining businesses found that generally, "the majority of business' systems lack smart, interconnected internal ecosystems of devices and software that work together to create benefits across the value chain," stated the consultancy.

The "digital investments made by metals and mining companies fall far short of their potential", said BCG.

Yet businesses which digitalised environment, safety and workforce saw up to a 12% reduction in injuries and 70% efficiency increase in role filling.  Supply chain and procurement reported up to a 30% increase in accuracy in short-term demand predictions.

Mining companies cite a lack of expertise to implement digital transformation as a barrier to progress, said BCG.

"Most metals and mining companies have ambitious digital strategies already in place, but the gap between strategy and execution is significant. We know the benefits are endless when we expedite digital adoption, but it's evident that many businesses lack the expertise to make the most of these projects," said Agustín Costa, managing director and partner at BCG.

The survey found that 30% of the companies surveyed had no digital upskilling plan at all, and less than 60% had a digital partnership strategy. 

Almost half of businesses also continue to rely on manual tools for supply chain visibility, and a similar number (40%) rely on them to tackle sales and operations planning problems, although the same businesses said that digital boosts contract cost reduction by up to 50 % and input price prediction accuracy by 97%.