HARNESSING DATA IN AUSTRALASIAN MINING AND ENERGY: …€¦ · • Services, comprising decision-makers from retail, hospitality and events, media, technology, ... • Assigning tasks

MINING AND ENERGY WHITE PAPERAUSTRALIA AND NEW ZEALAND

HARNESSING DATA IN AUSTRALASIAN MINING AND ENERGY:SAFETY, PRODUCTIVITY, EFFICIENCY MINING AND ENERGY WHITE PAPER

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MINING AND ENERGY WHITE PAPER AUSTRALIA AND NEW ZEALAND

HAS THE DATA REVOLUTION HAPPENED…OR IS IT ONLY JUST BEGINNING?THERE IS NO SINGLE ‘BIG DATA’ CHALLENGE. RATHER, MINING AND ENERGY ENTERPRISES FACE A RANGE OF DIFFICULTIES, AND OPPORTUNITIES ... CAN A SIMPLER APPROACH BE THE ANSWER?

More data has been created in the last few years than has been created in the history of human civilisation.

IBM recently estimated that the world produces around 2.5 billion gigabytes of data every day. That’s the equivalent of 530 billion songs or 90 years’ worth of HD video being downloaded once every 24 hours. In 2015, approximately one trillion photographs were taken, and in 2017 80% of all photos will be taken on smartphones.

It’s possible to look at those figures and think “The data revolution has taken place”. In fact, it’s only just begun.

THE COMING DATA EXPLOSIONSince the internet became a mainstream utility, the amount of data flowing between people and organisations has exponentially increased. But as more people come online, technology matures and new technology develops, the data exchange we see today will seem small by comparison to the data exchange of tomorrow.

By 2020…

• the International Telecommunication Union says more than half the world’s population will have access to the internet for the first time.

• the total amount of data in the world is predicted to be 44 trillion gigabytes.1

• each person will be producing, on average, 1.7 megabytes of data every second.2

• smartphone subscriptions will overtake fixed phone subscriptions for the first time.3

• there will be 7.7 billion people in the world and approximately 50 billion devices connected through the internet of things.4

• drones with high-resolution cameras will be commonplace in mine sites across Australia and New Zealand.5

“BIG DATA” IS A CHALLENGE NOT JUST FOR TODAY, BUT FOR AS

LONG AS TECHNOLOGY CONTINUES TO ENCOURAGE EXCHANGES OF

ENORMOUS AMOUNTS OF DIGITAL INFORMATION.

IN FACT IT IS MULTIPLE CHALLENGES.

40 Zettbytes

90%OF THE WORLD’S DIGITAL DATA WAS CREATED IN THE LAST TWO YEARS

80%OF DATA IS ‘UNSTRUCTURED’ FALLING OUTSIDE TRADITIONAL DATABASES

Sensors& Devices

Systems ofengagement

Systems of record

Percentage of uncertain data

2010 2020

2017

SocialMedia

VoIP

EnterpriseData

IBM Research 2014

MINING AND ENERGY WHITE PAPER AUSTRALIA AND NEW ZEALAND

THE MANY CHALLENGES OF BIG DATAAccording to IT leaders in Australia and New Zealand, there is no single dominant big data problem. The range of equally demanding issues makes it difficult to define the right approach and develop technology solutions to answer any one question or overcome any single hurdle.

There are multiple challenges facing us, among them:

• Accuracy of data • Compilation of data • Keeping up to date with technology • Access to high-quality data • Storage of data • Training staff in ICT • Security • Cost

That insight comes from a wide-ranging research project conducted by EY Sweeney on behalf of Motorola Solutions involving 130 company leaders. Participants included CEOs, company owners, IT managers, CFOs, CIOs and system data administrators. All those surveyed had at least some input in IT decision making; the majority were responsible for or jointly responsible for IT at the organisation for which they worked.

Respondents came from industries such as mining, transport and logistics, construction, utilities, hospitality, private security, retail and technology industries, and selected for two broader categories:

• Industrial (heavy industry), comprising decision-makers from mining, oil, gas, power, utilities, etc.

• Services, comprising decision-makers from retail, hospitality and events, media, technology, etc.

In this White Paper, we’ll focus on the findings as they relate to the Industrial segment.

Photo: Max Phillips (Jeremy Buckingham MLC)

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MINING AND ENERGY WHITE PAPER AUSTRALIA AND NEW ZEALAND

THE COMMUNICATIONS LANDSCAPE AS PART OF OUR RESEARCH, WE WANTED TO GET AN IDEA OF WHAT COMPANIES WERE DOING TODAY WITH THEIR DIGITAL TECHNOLOGY AND I.T. SYSTEMS, AND WHAT THEY WANTED FROM THEIR I.T. SYSTEMS IN THE FUTURE.

COMMUNICATIONS SYSTEMS TODAYWhen we asked what communications systems a company used, we found that:

• Two-way radios were far more widely used in the Industrial segment (58%) than they were in the Services segment (33%) and more common in organisation with more than 100 employees.

• The vast majority of organisations used email (98%), mobile phones (95%) and PABX/desk phones (92%).

• Just over three quarters of companies used tablets (77%).

• Video conferencing was an important communications tool for 57% of companies surveyed.

• Well over half (58%) of all respondents said their companies used instant messaging as a way of communicating professionally within the organisation.

With innovations such as WAVE Work Group communication system, miners can connect disparate networks and communicate between their site smartphones, radios, computers and landlines.

HOW ICT CAN HELPWe asked Industrial segment leaders how beneficial a communications system would be if it could assist with a series of tasks or activities. They told us that:

• The ability to monitor workers, assets and networks would be the most beneficial attribute of an ICT system – 55% of respondents rated it very or somewhat beneficial.

• Automating reports and event logging was considered the next most beneficial use for an ICT system (52%), and a large proportion of respondents (20%) considered it very beneficial.

• Assigning tasks to users was rated beneficial by 46% of those surveyed and only 17% put it in the not very beneficial or not beneficial at all categories.

• Just over a third of leaders (36%) felt that enabling users to accept or decline tasks and update their status was beneficial.

• Recording voice calls for future use was given the lowest benefit rating (22%) of the five choices offered, and 43% of respondents considered it not beneficial.

When we broke the potential services down further and asked the respondents to choose just one (the most beneficial):

• 35% said automating reports and event logging was number one.

• 31% said it would be monitoring worker and asset location outdoors, indoors and underground.

• 18% regarded assigning tasks to users as the most important.

Apps such as Journey Management can monitor activities in a location or vehicle and in real time to your sites central management console.

INDUSTRIAL COMMUNICATION USAGE

TWO WAY RADIOS ........................... 58%

INSTANT MESSAGING .................... 58%

VIDEO CONFERENCING ................... 59%

TABLETS ............................................. 77%

DESK PHONES ................................... 92%

SMART PHONE .................................. 95%

EMAIL ................................................. 98%

MOTOROLASOLUTIONS.COM PAGE 5

OPERATIONAL EFFICIENCY WAS BY FAR THE MOST IMPORTANT AREA FOR BUSINESS TO CAPTURE DATA ON.

Now you can have devices that can roam off dedicated mine network sites and onto public networks. Motorola LEX LIO, a rugged and longer lasting device you think is a smartphone, but this is not the big difference. What this is, is essentially a product that is a two-way radio on your mine site and a smartphone when you get to town. A device that is LTE (4G) capable and can use two sim cards. Martin Chappell, General Manager Commercial Channels, Motorola Solutions

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MINING AND ENERGY WHITE PAPER AUSTRALIA AND NEW ZEALAND

CAPTURING DATA All organisations understand the importance of capturing and analysing data, but what that data relates to differs greatly by industry.

For heavy industry:

• Operational efficiency was by far the most important area for leaders, 39% of whom saw it as one of the most important areas for their business to capture data on.

• 28% of respondents said that safety was an important area for data capture.

• A quarter of all decision-makers in the research considered productivity to be an important data analysis point.

MAKING IMPROVEMENTSWhen we asked Leaders in the Industrial segment to choose one area of their business they could optimise if they had the ability to do it immediately, there was no clear ‘winner’. In fact there was a ‘dead heat’ between the following:

• Having a network that is inherently secure so people cannot hack into it (19%).

• Ability to monitor and communicate directly with employees in order to react quickly to any safety incidents (19%).

• Maximising the efficiency of operations, such as reducing bottle-necks and down-time (19%).

INDUSTRIAL BUSINESSES TOP AREAS OF INTEREST TO OPTIMISE IMMEDIATELY

EFFICIENTOPERATIONS

SECURENETWORK

MONITOR ANDCOMMUNICATE

$

The biggest communication challenge for mine sites was continuity of service; getting enough coverage so management can talk to or locate employees. In the last several years , applications through digitisation of radio products has allowed us to be able to locate people. I can use a specific example of a mine just outside of Emerald where they do blasting nearly every day. They need to know where their staff are. Martin Chappell, General Manager Commercial Channels, Motorola Solutions

MOTOROLASOLUTIONS.COM PAGE 7

MINING AND ENERGY WHITE PAPER AUSTRALIA AND NEW ZEALAND

SAFETYORGANISATIONS TODAY UNDERSTAND THAT INADEQUATE WORKPLACE SAFETY CAN INCUR A HUMAN COST AND CAN ALSO THREATEN FINANCIAL STABILITY, REGULATORY COMPLIANCE AND CUSTOMER LOYALTY.

By harnessing simple data tailored to the areas of greatest worker safety risk, businesses can prevent future incidents. They can also respond quickly to unavoidable circumstances, turning potentially serious incidents into minor events.

THE IMPORTANCE OF SAFETY As part of Motorola Solutions’ EY Sweeney survey, we asked leaders in the heavy industry segment to rate the most important business area from a series of possible options.

• The most popular answer by far (38% of respondents chose it) was employee safety.

• Business productivity and operational efficiency was next, chosen by 27% of leaders.

• Customer satisfaction, cyber security and compliance were chosen as most important by fewer than 20% of those surveyed.

• 94% of Industry representatives stated that the “ability to monitor and communicate with employees to keep them safe” was important to their business.

• 83% of people in the research group felt that “workers [being able to] communicate and raise an alarm, regardless of where they are” was important to their business.

USING DATA TO MEASURE SAFETYThere was a clear consensus that employee safety was critical for businesses in sectors such as mining, gas, oil and energy, but when it came to whether companies were using data to measure safety, the responses weren’t quite so clear cut.

While a large proportion of surveyed leaders said they “always” use data to measure worker safety and find such measurement “very easy”, a significant number of companies are either using data intermittently or not at all. Some are also finding safety measurement difficult.

• 44% of leaders said they didn’t “always” use data to measure employee safety.

• Although 17% said they “very often” did, a further 8% said they only “sometimes” did and 11% said they “rarely” did.

• 8% of ICT decision-makers admitted their companies “never” used data to measure safety.

• 24% of those surveyed said they found using data to measure safety either “very difficult”, “somewhat difficult” or were neutral about the difficulty level.

USING SIMPLE DATA TO “SEE” WHERE YOUR TEAM MEMBERS ARE 24/7GPS data and personnel information are examples of simple and readily available data sources that can have immediate beneficial effects on employee safety.

An employee’s location, presence within a prohibited zone (a blast zone on a mine site, for example) or even identification that a worker has fallen can be programmed to issue alarms. Knowing an employee’s status – their location, their acceptance of tasks and their adherence to processes – can become a standard business process. This can be used to protect an employee’s safety while complying with safety requirements and enabling workers to focus on operational activities.

Alert notification

Worker health sensors and

alerts

Hands free helmetaccessories

Location tracking via GPS

Man-downsensors

Monitor lone workers

Heart rate monitor

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MINING AND ENERGY WHITE PAPER AUSTRALIA AND NEW ZEALAND

WORKERS AND BUSINESS SYSTEMS PRODUCE CONSTANT STREAMS OF DATA THAT CAN BE COLLECTED AND USED TO AUTOMATE PROCESSES.

Field workers clocking in and out, doors and lights, keeping tanks full and measuring gauges can all be automated and used to further inform decisions in other parts of the business. Reports from these kinds of automated triggers can develop more precise maintenance schedules to meet OHS requirements and simply save money by removing the need for manual checks.

MOTOROLASOLUTIONS.COM PAGE 9

MINING AND ENERGY WHITE PAPER AUSTRALIA AND NEW ZEALAND

EFFICIENCY AND PRODUCTIVITYNEW ICT TECHNOLOGIES HAVE THE POTENTIAL TO IMPROVE THE HEALTH AND SAFETY CONDITIONS FOR EMPLOYEES, BUT THEY ALSO HOLD THE PROMISE OF MAKING WORK SITES MORE EFFICIENT AND PRODUCTIVE.

Software, systems and devices that automate repetitive tasks, optimise asset utilisation and remotely monitor and control activities have the potential to change the mining and energy industry as we know it.

Analysis by PwC estimates that new ICT technology can help companies lower maintenance costs by as much as 40 percent, increase asset utilisation by up to 20 percent and reduce capital expenses by between 5 and 10 percent.

PRODUCTIVITY MEASURES PRIORITISEDDecision-makers didn’t just tell us that productivity and operational efficiency was a clear second priority behind safety; they told us exactly what those measures looked like.

• 84% of leaders stated that “maximising the efficiency of operations, such as reducing bottle-necks and down-time” is important to their business.

• 83% of those surveyed said that “having accurate, secure and timely access to operational data” is vital.

• 78% felt that being able to “automate repeated processes to simplify manual or complex tasks” is useful.

• Nearly half of respondents (48%) in the Industrial segment believe that “monitoring real-time positioning of employees and/or high value assets” is valuable.

USING DATA TO MEASURE PRODUCTIVITY AND EFFICIENCYJust as with employee safety, leaders in the industrial segment were unanimous in their agreement that productivity and efficiency was a vital factor to business success. But the research found that companies in fields such as mining, gas and energy are not using data to measure efficiency and productivity in the same numbers as they are to measure safety.

• Of the respondents who said they “always” use data as a measure, 36% said they used it to measure productivity and 34% to measure operational efficiency.

• 39% of those surveyed said they “sometimes”, “rarely” or “never” used data to measure productivity.

• 47% of leaders told us they “sometimes”, “rarely” or “never” used data to measure operational efficiency.

• 38% percent of respondents who said they used data to measure productivity said they found it “very difficult”, “somewhat difficult” or were neutral about the difficulty level.

• 33% of those who told they used data to measure operational efficiency said they found it “very difficult”, “somewhat difficult” or were neutral about the difficulty level.

IMPORTANCE OF BUSINESS NEEDS RELATING TO OPERATIONAL EFFICIENCY AND BUSINESS PRODUCTIVITY

Maximising the efficiency of operations, such as reducing bottle-necks and down-time (n=62)

Having accurate, secure, and timely access to operational data (n=64)

Automating repeated processes to simplify manual or complex tasks (n=64)

Monitoring real-time positioning of employees and/or high value assets (n=64)

Very important Somewhat important Neither important nor unimportant

Not very important Not important at all

50%

41%

22%

20%

34%

42%

56%

28%

15%

14%

17%

36%

2%

5%

5%

6% 9%

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PRODUCTIVITY PRIORITISED BIG FOUR

83%HAVING ACCURATE,

SECURE AND TIMELY ACCESS TO OPERATIONAL DATA

84%MAXIMISING THE

EFFICIENCY OF OPERATIONS,

SUCH AS REDUCING BOTTLE-NECKS

AND DOWN-TIME

78%AUTOMATE REPEATED

PROCESSES TO SIMPLIFY MANUAL OR COMPLEX TASKS

48%MONITORING

REAL-TIME POSITIONING OF

EMPLOYEES AND/OR HIGH VALUE ASSETS

MOTOROLASOLUTIONS.COM PAGE 11

MINING AND ENERGY WHITE PAPER AUSTRALIA AND NEW ZEALAND

BRINGING IT ALL TOGETHERAN INTELLIGENT AND ROBUST COMMUNICATION ENVIRONMENT CAN BRING TOGETHER DISPARATE AND DISCONNECTED INFORMATION THAT EXISTS IN YOUR BUSINESS TO ENSURE YOUR DECISION MAKING IS INFORMED BY WELL-ANALYSED DATA.

Communications systems are central to simple data streams that are capable of producing insights for your team members to convert into intelligence.

As the reliance upon data increases, businesses must also be mindful of providing technologies that give workers the information they need. Without careful filtering, organisations risk big data becoming a big distraction. This means that investments in communications should incorporate data solutions which are secure, promote accuracy and reliability (by eliminating duplicate or irrelevant data sources) and, most importantly, align to business objectives.

Any communications system used to support business operations must also be able to adapt to future changes in technology. People connect by sharing information, verbally, in words and in pictures. The manner in which they are doing so is rapidly changing as technological advances are bringing about new types of devices, applications and networks. For example, a mining worker of the future may be equipped with a series of interconnected health sensors, smart safety equipment and wearable communications tools. This kind of communications ecosystem focuses on workers’ individual needs, enabling them to move more freely while maintaining the connectivity they need to work safely and at higher levels of productivity.

The right communications environment aligned with a business’s priorities can support workers with intelligence that informs rather than diverts. IT leaders who focus their attention on making their workers safer and more productive via intelligent, data-driven communications have the power to transform their business.

Research MethodologyMotorola Solutions engaged EY Sweeney to conduct research among Australia and New Zealand’s leading IT buyers to understand how they are managing the complexity of big data to enable better business performance.

The 2016 study involved 130 participants, and were: • responsible for IT decision-making and procurement; • working in IT, operations, supply chain, compliance,

administration or occupational health and safety roles; • drawn from either mining, transport and logistics, utilities,

construction hospitality, security, retail or technology sectors; and, • selected randomly but screened to ensure they met the above

criteria.

1 https://www.emc.com/leadership/digital-universe/2014iview/executive-summary.htm2 https://www.forbes.com/sites/bernardmarr/2015/09/30/big-data-20-mind-boggling-

facts-everyone-must-read/#fee672617b1e3 https://techcrunch.com/2015/06/02/6-1b-smartphone-users-globally-by-2020-

overtaking-basic-fixed-phone-subscriptions/4 http://www.cisco.com/c/dam/en_us/about/ac79/docs/innov/IoT_IBSG_0411FINAL.pdf5 https://www.australianmining.com.au/features/a-revolution-revolt-the-next-

stages-of-mining-automation

Although the technology landscape is evolving, our customers needs for the most reliable, secure and robust data is not. For more information on how Motorola Solutions is helping businesses to be smarter, safety and more productive with data and technology, visit place http://smartcom.motorolasolutions.com/vertical-markets/mining-oil-and-gas/

To find out more from our dedicated mining and energy industry team on data solutions designed to suit the mining and energy vertical please contact:

VIC I NSW I QLD I PNG I NZ Mobile: 0011 61 419 362 154

WA I SA I NTMobile: 0011 61 409 113 825

Email: [email protected]

Motorola Solutions Australia Pty Limited, Tally Ho Business Park, Level 2, 10 Wesley Court, Burwood East VIC 3151 motorolasolutions.com/en_xa

Motorola, Moto, Motorola Solutions and the stylised M logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license. All other trademarks are the property of their respective owners. ©2017 Motorola Solutions, Inc. All rights reserved. 7-2017 ST