SURVEY REPORT. Bridging IT-OT for the Connected Asset Lifecycle Management Era Mining s perspective
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1 SURVEY REPORT Bridging IT-OT for the Connected Asset Lifecycle Management Era Mining s perspective
2 2 BRIDGING IT-OT FOR THE CONNECTED ASSET LIFECYCLE MANAGEMENT ERA MINING'S PERSPECTIVE Despite the many challenges facing the mining industry, there are significant opportunities to improve operational efficiencies through better analysis and asset management efforts.
3 3 Leveraging IT and OT The mining perspective As mining organizations look for success in a world of changing demands, they must consider operational efficiency as a key opportunity for improving their bottom line. The mining industry has faced many ups and downs in recent years. On the down side, it has certainly felt the impacts of China s five-year economic slowdown. Falling demand for commodities (China accounts for 40% of global copper demand) and oversupply led to a large downturn in 2015 and On the up side, Morgan Stanley is predicting a 17% rise in commodity prices in Innovations in areas such as battery technology have led to unprecedented demand for lithium over the past year. On top of changing markets, mining organizations face a variety of challenges, from significant safety concerns to depleting grades of ore to the remoteness of new deposits with the lack of infrastructure and skills to effectively reach them. However, with increased access to more sensors and data whether on crushers and conveyor systems or load haul devices there are significant opportunities for mining companies to improve their operational efficiency through better analysis and understanding of their efforts. The best way to leverage these technologies and data is to build stronger connections between information technology (IT) and operational technology (OT), at both the technology and organizational levels. But where are mining organizations today in terms of these efforts, and how do they best move forward? ABB reached out to 51 leading mining companies to find out more about their IT-OT integration approaches as they head into the next generation of operational improvement. The research identified: Nearly all of the respondents indicated that asset management was either a high priority (50%) or a moderate priority (47%). Nearly two-thirds of respondents reported that has become increasingly important over the past 12 months. Approximately 58% of respondents said IT-OT integration is extremely valuable (18%) or valuable (40%). Most respondents believed their business groups worked together more effectively (52%) over their technologies working together effectively (26%). Survey respondents' annual revenue $USD Survey stats ABB received 51 responses from mining companies 48% 10% 26% 16% 20% North America 26% Europe 14% Central/ South America 14% Middle East & Africa 26% Asia Pacific >$1B $500M to $1B $100M to $500M <$100M
4 4 BRIDGING IT-OT FOR THE CONNECTED ASSET LIFECYCLE MANAGEMENT ERA MINING'S PERSPECTIVE Asset management is a growing priority Unsurprisingly, safety and efficiency are top priorities for mining organizations, and many are looking for more automated and connected assets to do critical mining work. Assets ranging from smart drillers to self-driving trucks are becoming the bulk of the workforce, and managing those assets effectively is increasingly important for mining companies. All of the 51 respondents surveyed said that was a priority, and 51% listed it is as a high priority for their organizations (Figure 1). Furthermore, is gaining focus for many mining organizations 63% reported that the importance of had increased over the past 12 months (Figure 2). Figure 01 Importance of compared to other business efforts 51% High priority 47% Moderate priority 2% Low priority 0% Not a priority Although real-time efforts such as monitoring crushers and conveyor systems to understand equipment and process health are critical, another notable perspective is the longterm view of assets for capital planning purposes. More than half of the respondents listed capital planning as a high priority in their asset management efforts (Figure 3). Figure 02 Change of asset management importance over the past 12 months More important 63% 29% No change 8% Less important Figure 03 Importance of capital planning in 56% High priority 42% Moderate priority 2% Low priority 0% Not a priority
5 5 IT-OT integration is critical for Connected Asset Lifecycle Management Figure 04 Value of IT-OT integration for Asset management is essential for the mining industry, where the failure of a single piece of equipment can shut down operations to the tune of thousands or even millions of dollars. As mines become smarter, with greater automation and technologically advanced equipment, organizations must take steps into Connected Asset Lifecycle Management, where efforts are no longer isolated within one group or division of the company. Extremely valuable 18% Not valuable at all 2% 20% Somewhat valuable Integration will become increasingly important, particularly between operational technology and information technology. Approximately 80% of respondents said IT-OT integration for asset management is valuable, with 38% agreeing that it is very to extremely valuable (Figure 4). Why are mining companies looking to better integrate their IT-OT efforts? Again, no surprise improved safety is clearly the top priority (Figure 5). But there are other benefits as well, including increased reliability and uptime, and better use of capital. For example, there could be benefits from linking SCADA to asset performance management (APM) systems for the real-time monitoring and analysis of the rail systems critical to delivering ore on time. 20% Very valuable 40% Valuable But IT-OT integration isn t just about integrating technologies and systems; it is also about integrating different departments and people to build stronger efforts. In the next couple of sections, we ll explore the importance of IT-OT integration for technologies as well as for people. Figure 05 Benefits of IT-OT integration for (average ranking on a scale of 1 to 7) Improved safety Increased reliability/uptime Better use of capital 4.36 Increased staff productivity O&M improvements/cost reduction Better long-term planning 3.51 Improved visbility across the organization
6 6 BRIDGING IT-OT FOR THE CONNECTED ASSET LIFECYCLE MANAGEMENT ERA MINING'S PERSPECTIVE IT-OT integration: technology When we think of IT-OT integration, technology is often what comes to mind. As shown in Figure 6, many technologies from across mining organizations contribute to. In fact, with an average rating above three, nearly all the technologies listed for survey respondents were of above-average importance, the exception being customer information systems (CIS). Integrating the varied applications that contribute to can help provide the best visibility into asset health and planning. Figure 7 shows some of the key areas for integration, the top being enterprise (EAM) to APM. The connection of systems to real-time production management systems is important as well. The benefits of integration can be readily understood in theory, but are systems being integrated in practice? Over a quarter of respondents said that their applications are not well-integrated at all, and another 46% noted that their systems are only fairly well integrated (Figure 8). Clearly, there is room for improvement.
7 Figure 06 Importance of applications for (1= no role, 5 = significant role) Asset Performance Management APM Supply chain management 3.73 Enterprise Asset Management EAM 3.64 Enterprise Resource Planning ERP 3.57 SCADA, DCS, real-time systems 3.52 Automated Vehicle Monitoring AVM 3.32 Mobile Workforce Management MWFM 3.17 Geographic Information System GIS 3.04 Customer Information System CIS 2.80 Figure 07 Value of integrations (1 = No value, 5 = extremely valuable) No role Significant role EAM to APM 3.88 APM to real-time systems 3.78 EAM to real-time systems 3.72 APM to MWFM 3.26 Well 18% Very well 6% Extremely well 2% Not well at all 28% Figure 08 How well applications are integrated today EAM to MWFM 3.26 MWFM to real-time systems 3.10 No value Extremely valuable Fairly well 46%
8 8 BRIDGING IT-OT FOR THE CONNECTED ASSET LIFECYCLE MANAGEMENT ERA MINING'S PERSPECTIVE IT-OT integration: people Building a more connected approach to asset management involves people just as much as technology. IT-OT integration among different groups within mining organizations is necessary to better understand the short- and long-term needs of assets. Better integration among operations and IT groups can help: Improve strategic decisions regarding asset management that account for varying needs across the organization Drive the business process changes necessary to adopt innovative approaches to asset management Build transparency among data sources and generate new insights Although the leaders of tend to be in engineering, maintenance and operations, many groups are playing a role in asset management, from planning to finance (Figures 9 and 10). The only significant concern arising from the survey findings is the importance of IT (Figure 9) relative to other groups. IT will play a critical role in the success of IT-OT initiatives, and it will be important to have strong connections with business groups. The overlap, or lack thereof, between the ownership of IT and OT systems creates unique challenges that companies must be prepared to address. On a positive note, Figure 11 shows that people are getting along better than technologies, which is a good start. The vast majority of respondents felt that the groups were getting along at least fairly well, and had a more positive outlook on the relationships among business groups over technology integration.
9 Figure 09 Role of groups in Maintenance Operations 4.18 Planning 4.00 Engineering 4.00 Finance 3.71 Executive 3.69 Information Technology IT 3.04 Customer service 2.83 Figure 10 Group leading strategy Customer service 0% IT 6% Executive 6% Engineering 26% Extremely well 6% Not well at all 8% Figure 11 How well groups work together None 4% Planning 8% Very well 16% Operations 16% Finance 8% Fairly well 40% Maintenance 26% Well 30%
10 10 BRIDGING IT-OT FOR THE CONNECTED ASSET LIFECYCLE MANAGEMENT ERA MINING'S PERSPECTIVE The new technologies in IT-OT In addition to more traditional IT-OT systems, mining companies are also considering the integration of new technologies within their organizations. Big data and analytics topped the list in terms of the potential influence on mining organizations, but the Internet of Things (IoT), along with mobility and the Cloud, are not far behind (Figure 12). Even with this importance, however, many organizations don t yet have a plan in place for incorporating these technologies into (Figure 13). Figure 12 Influence of technologies on your asset management efforts (1 = not influential, 5 = extremely influential) Big data/analytics Internet of Things IoT Mobility 3.30 Cloud technologies Not influential Extremely influential Figure 13 Do you have a strategy around these technologies for asset management efforts? Yes No, but planning to No plans Don't know 33% 39% 22% 6% 27% 33% 37% 3% 22% 43% 27% 8% 24% 43% 29% 4%
11 11 Next steps Now, more than ever, organizations must be able to bring together once-disparate technologies and systems to better understand their increasingly complex asset base, and IT-OT integration will be a key component of those efforts. As shown in this research, mining companies are heading down the path of better integration. They are ahead on the "people" side of integration, but still have significant work to do on the technology side. Recommendations for taking your IT-OT efforts to the next level include: Build the vision: Each company is different, so you must define what it means for your organization to achieve the potential of Connected Asset Lifecycle Management. Is it about better leveraging or deploying IoT technologies? Is it a better understanding of long-term capital planning efforts? Answering questions like these will help you build stronger connections across your organization and provide a great starting point for larger asset management initiatives. Consider not just what, but who will make it happen: It is essential to understand both the technology changes that are necessary to realize this vision as well as the business changes and the people required to make it all happen. Leverage low-hanging fruit: Determine where your organization can get started with IT-OT integration efforts today. A single point-to-point integration is most likely better than no integration, so look at small, low-risk projects that can start building momentum. Embrace new technologies: Analytics, IoT and the Cloud are becoming increasingly crucial for mining organizations, and it is vital to have a plan in place to make the best use of these technologies for. Ready to step up your IT-OT integration efforts? Contact us to learn more about the possibilities. abb.com/enterprise-software info.pges@abb.com
12 abb.com/enterprise-software Copyright 2017 ABB. All rights reserved. Specifications subject to change without notice. 9AKK106930A8036
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