The face of digitalization

The focus of most discussions about the digitalization of industry is often on technology and equipment. Be it automated trucks, intelligent drill rigs or the potential for reading biometric data, the conversation is largely about how technology allows us to do things that have previously seemed impossible.  Still, the benefits of digitalization run much deeper. While a variety of tasks can be improved with a digital solution, the importance of people to the digital transformation process should not be overlooked. Decision-makers from as far afield as Australia and China came to Tampere, Finland, for the Sandvik Global Mining Summit. Digitalization was top of the agenda, both in terms of what’s working now and what needs to happen in the future. Three Sandvik customers spoke about their approach to digitalization, and a fascinating trend emerged. Their focus wasn’t so much on the systems and technology, but on how digital solutions can improve everyday activities, and the importance of people management to success. One of the most noticeable changes in the digital revolution is a more open approach to communication. In barely a decade we have become accustomed to using digital tools to share thoughts and ideas from all aspects of our lives.

Including employees in the digital conversation is a key building block for success, especially when many people view digital tools not so much as a benefit, but rather a threat to their job security. “I don’t think we’ll see a huge reduction in jobs, at least not in the short to medium term,” says Neil Moloney, digital transformation manager at Goldcorp. He does, however, believe that job roles will change. “We are already seeing the job of mine general managers change, as automated reporting solutions allow them to focus on other things,” he says. “Operators are still necessary, but the definition of what they do will change. Some of our miners don’t even own a mobile phone, so suddenly filling their cab with automated tools is a scary proposition for them. Change management is absolutely critical for this to work.”

Researchers at Scandinavian institute SINTEF have been working on a two-year strategic research project on decision-making. The overall goal of the project is to improve performance within time-critical complex domains, such as emergency management, air traffic management, maritime and train dispatching, by developing a new-generation decision support tool. This support tool enables better human/automation collaboration during decision-making, says Amela Karahasanovic, senior scientist on the project. “The tool lets the operator in a train-dispatching centre tell the system in which sequence he plans to dispatch the trains by tactile interaction and/or augmented reality techniques,” she says. “The tool would then, only if needed, propose a better but understandable sequence by using 3D animation and present how this would affect punctuality.” Karahasanovic says that in the long run, this will improve human operators’ trust in the decision support tool, increase their competence and improve the quality of decisions they make with and without support. Fuelled by the rise of the Internet of Things, Big Data is, according to the consulting firm McKinsey, “the next frontier for innovation, competition and productivity.” The amount of data generated from a mining operation continues to increase, yet this data is worthless without the skills and abilities required to analyze it. Alex Holder, the group technical services manager for South African company Petra Diamonds, is excited about the potential value hidden in the data the company has been collecting for the past five years.

Coupled with the potential health and safety improvements, automation could significantly improve working conditions, and help people stay working for longer. John Welborn, managing director and CEO at Australia’s Resolute Mining, says that the safety of the workforce is paramount, and that automation creates opportunities to improve safety and security beyond the obvious hazards within the mines themselves. “We operate gold mines in remote parts of Africa, and historically we’ve operated in places with safety and security concerns,” he says. “Automation creates an opportunity whereby the people operating the machinery don’t actually have to be physically in the mine zone or even in the same country as the mine.” But while there is broad agreement that safety will be improved by technology, some are urging caution. The effects of digitalization on health and safety are, in many cases, yet to be felt. That’s according to findings from CEEMET, the European employers’ organization representing 200,000 companies in the metal, engineering and technology-based industries. The report says we do not yet know the  potential problems that may be encountered by workers who must use these new technologies, such as head-mounted displays, as part of their daily routine. The question is further complicated by the increasing overlap between what people do in their private lives and at work. When does health and safety stop becoming the employer’s responsibility? In the case of someone working remotely from a home office, where is the line drawn? While there is much excitement about the potential benefits of tracking and biometric technologies, such data collection gives companies a whole new headache beyond operations. As legislators rush to catch up with the immense amount of personal data kept by the likes of Facebook and Google, the mining industry should be paying close attention, advises Manny Maloney, Sandvik general counsel. He says all mining companies must have a policy to ensure they are in compliance with the EU General Data Protection Regulation that comes into force this year. This is especially important if the tracking of people within the mine forms part of your digitalization plans. While there are no doubts about the impact on safety, some labour unions have expressed concerns about the constant monitoring of employees. While the answers will be different for every company, the question remains: How can you put people at the heart of your digital transformation?