According to BCG’s Digital Acceleration Index, a diagnostic tool that measures and compares companies’ digital capabilities, the metals and mining industry is up to 40% less digitally mature than similar sectors2. In a similar vein, a McKinsey survey found only 4% of respondents from the heavy industry sector had captured significant bottom-line improvements from their efforts to automate and, of greater concern, more than half believed it would take up to three years to realise any benefits – or didn’t even know if they would3.
It is one thing to be aware of the hurdles and another to develop a strategy capable of overcoming them. In a bid to help heavy industry companies do just that, this article will highlight the risks of not fully embracing digital transformation, the need for a tailored approach to adoption and the benefits of partnering with a specialist tech partner to unlock one’s digital potential.
Organisations that fail to embrace digital innovation are putting themselves at risk of hindering growth and falling behind competitors. Common concerns include:
A common challenge arises from the gap between off-the-shelf products and the specific requirements of heavy industry processes. This misalignment often results in suboptimal solutions that fail to address critical business needs, further complicating operations.
The proliferation of disparate applications, Excel spreadsheets and emails often leads to a lack of real-time visibility and actionable metrics across the end-to-end process. Without comprehensive insights, decision-making becomes arduous and prone to errors.
Heavy industries grapple with the issue of non-standardisation, where diverse interpretations of processes by individual engineers lead to inconsistent outcomes. Establishing clear guide rails and validation using technology and standardised processes is imperative to ensure competency across the workforce and foster organisational cohesion.
Teams frequently find themselves bogged down by menial tasks due to the inability of applications to communicate effectively with one another. This disconnect not only wastes valuable time but prevents skilled professionals from allocating their expertise towards value-added activities.
The challenge of identifying and raising critical insights in a timely manner for appropriate action poses a significant hurdle. The complexity of data makes it challenging for humans to monitor effectively, necessitating intelligent automation for timely intervention and decision-making.
Many organisations still rely heavily on Excel sheets riddled with complex macros and often understood by only a handful of team members. These convoluted spreadsheets churn out calculations but lack transparency and scalability. Do the processes you oversee have multiple Excel sheets stored on employees’ desktops and SharePoint and are they actually improving the process or making it more complex?
Legacy systems present a significant challenge frequently encountered in heavy industries, with vital operational data also residing within these aged systems. Compounding this issue is the fragmented nature of data distribution across multiple non-integrated systems, resulting in inefficiencies within processes. Nevertheless, the advent of modern automation technologies, when integrated with these legacy applications, offers a solution by bridging these gaps to improve the processes and minimise costs.
Despite the potential benefits, the fear of disrupting business-critical processes often deters organisations from embracing automation. This reluctance stems from a lack of understanding of how automation can be seamlessly integrated into existing workflows without causing upheaval.
In an age where digital communication reigns supreme, many organisations still rely heavily on email for crucial communications and approval workflows. The result? An overwhelming influx of emails that are scattered across inboxes, making it challenging to track and retrieve critical information for audits or compliance purposes.
The perceived complexity of processes often leads to a heavy reliance on highly skilled personnel. This not only creates bottlenecks but limits scalability and agility as the expertise of these individuals becomes a single point of failure.
The complexities involved in the vast landscape of heavy industries cannot be understated. For some, it involves planning and drilling wells in the oil and gas sectors. For others, it means managing the complex operation of travel and accommodation for FIFO workers or applying for land access permits and approvals. It is a credit to those employed in heavy industries that they are so highly qualified to navigate such complex scenarios.
Conversely, the same organisations are not typically experts when it comes to digital transformation. In the rush to counter the concerns outlined above, the last thing executives and managers should do is rush to roll out automation solutions or throw money at tech projects they do not understand. Likewise, inertia can be a concern for those who move too slowly for fear of getting it wrong.
Quality digital transformation requires a strategic vision, appropriate governance measures and ultimately the input of experts who are highly qualified in their own field. Just as heavy industry organisations invest in people who know their heavy industry, it pays to partner with automation and tech-solution experts when pursuing digital transformation.
Digital transformation in heavy industries does not require a company to complete a total overhaul of its technology stack or disrupt current workflows. At Innovior, we know every business is unique and that means every business requires a tailored approach to get the most out of their innovative solutions … and this is how we do it.
Ultimately, the reason clients appreciate working with us is our consulting-first approach. We fully understand the business problem, leverage the best-of-breed technologies in our repertoire and by combining our comprehensive industry and technological acumen, we empower organisations to seamlessly navigate the complexities of digital transformation.
In recent times, a leading oil and gas company approached us with a not-so-simple request – to help cut its costs by more than 10% through process improvement and automation. Those were clearly big numbers but we are not afraid of a challenge. From land access, drilling and completions to finance and people and culture, we carried out a detailed investigation of core business processes to identify cost-saving opportunities that led to more than 23 processes being automated and the establishment of a Transformation Centre of Excellence.
The result? A five-time return on investment that has enabled greater efficiency and cost reduction across the organisation.
This is not an isolated case. Automation and digital transformation are an untapped resource for many players in the heavy industry and, with the guiding hand of specialists well versed in the field, there is no reason the journey to more efficient and profitable processes cannot start today.
To learn more about how Innovior can help transform your business systems, contact us today.
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