AIMEX 2015 presentation innovation through collaboration and iteration
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Presented at the Australian International Mining Exhibition #AIMEX15 in September 2015, this presentation outlines Dingo's journey of developing an award winning pp for visual inspections with BHP Billiton's Blackwater Mine, using both Collaboration and Iteration in a Lean Startup model.
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AIMEX 2015 presentation innovation through collaboration and iteration
- 1. THE SECRETS TO SUCCESSFUL INNOVATION COLLABORATION & ITERATION September 2015
- 2. 2 WHAT IS INNOVATION? 2 Innovation is change that creates a new dimension of performance Solves a real problem Means venturing into uncharted territory Leads to significant positive change Delivers new value to a customer
- 3. 3 UBER DIDN’T IMPROVE THE TAXI 3 It created a platform to connect people with common needs
- 4. 4 MINING IS IN DIRE NEED OF INNOVATION
- 5. 5 VOLUME AT ANY COST = INNEFFICIENCY The previous focus on volume at any cost has led to highly inefficient practices in terms of productivity.
- 6. 6 AND DEEP BUDGET CUTS AREN’T THE ANSWER Mining cutbacks are also spilling over to the METS sector. And R&D budgets are drying up. Cutting in one place often creates a problem in another. And there’s only so much fat to cut. Impacts of the Mining downturn on METS
- 7. 7 BUT IT’S NOT ALL GLOOM AND DOOM THE STARS ARE ALIGNED FOR INNOVATION IN MINING
- 8. 8 THERE’S A RENEWED FOCUS ON INNOVATION FRUGALITY DRIVES INNOVATION, JUST LIKE OTHER CONSTRAINTS DO. ONE OF THE ONLY WAYS TO GET OUT OF A TIGHT BOX IS TO INVENT YOUR WAY OUT. - JEFF BEZOS
- 9. 9 INEFFICIENCY CREATES OPPORTUNITY Source: Australian Bureau of Statistics Labour and Capital Productivity in the Australian Mining Industry OPPORTUNITY
- 10. 10 AND MINERS ARE MORE OPEN THAN EVER TO CHANGE
- 11. 11 THE TIME IS NOW TO INVENT OUR WAY OUT NECESSITY APPETITE FOR CHANGE WILL TO COLLABORATE RESOLVE TO SUCEED
- 12. 12 SO HOW DO WE CREATE NEW PRODUCTS…. THAT SOLVE REAL PROBLEMS FOR REAL PEOPLE?
- 13. 13 THROUGH COLLABORATION & ITERATION WORKING SIDE BY SIDE WITH OUR CUSTOMERS PUTTING A PRODUCT IN THEIR HANDS TO UNDERSTAND & SOLVE FOR THEIR UNMET NEEDS GETTING THEIR FEEDBACK, AND IMPROVING AS YOU GO GETTING THEIR FEEDBACK, AND IMPROVING AS YOU GO
- 14. 14 iPod iTunes iPhone 3rd party Apps on iTunes Apple Store iWatch iMusic UNDERSTANDING THE CUSTOMER ALLOWS YOU TO REFRAME THE PROBLEM…AND DISRUPT THE STATUS QUO
- 15. 15 AND ITERATING BASED ON ACTUAL USE ENABLES YOU TO SOLVE ACTUAL PROBLEMS Once Dropbox discovered the Lean Startup model, the company started iterating their product much faster in order to test what customers really wanted, early and often. Using Lean Startup principles, in just 15 months, Dropbox went form 100,000 registered users to over 4,000,000.
- 16. 16 WHAT IS THE LEAN STARTUP MODEL? STOP GUESSING AND START TESTING
- 17. 17 CASE STUDY SYSTEMATICALLY IMPROVING INSPECTIONS IN COLLABORATION WITH BMA
- 18. 18 THE CHALLENGE • A costly contractor was being used to conduct mag plug inspections • The process was time-consuming & inefficient • By the time information was received, it was often too late to act on it • Images weren’t stored, so they weren’t available for future reference and analysis Field Inspections were outsourced and inefficient at BMA MAINTENANCE 1) Receive information – often too late 2) Delete information RELIABILITY & PLANNING 1) Wait for information from contractor 2) Download photos 3) Paste them in a word document 4) Add comments 5) Email CONTRACTOR 1) Perform inspections 2) Take photos 3) Process and send as monthly batch reports
- 19. 19 Help DINGO understand the problem & brainstorm solutions Rapidly develop an MVP (minimum viable product) prototype Use prototype and provide feedback; Develop internal execution process Optimize based on usage feedback Roll out new process to entire mine Continue to improve based on real-world feedback DEVELOPING THE SOLUTION The BMA maintenance team saw Inefficiency as Opportunity I T E R A T I O N COLLABORATION
- 20. 20 THE RESULT Critical inspection data is received in real-time and used in pre-maintenance planning Documentation time has been reduced to almost zero Inspections are being used in collaboration with other condition data to drive better maintenance decisions Mine has a centralized location to store and manage photos (in Trakka) Giving team confidence to use other mobile based technologies in maintenance Mine has saved hundreds of thousands of dollars per year
- 21. 21 WINNER OF THE 2015 INNOVATION AWARD FOR METS “An incredibly effective method for addressing a very real need in the industry. It is intuitive, allows informed real- time decision making, and fits smoothly into existing operations.” -Christine Gibbs Stewart, Austmine CEO
- 22. 22 WHAT DID WE LEARN ALONG THE WAY COLLABORATE ITERATE Walk in the shoes of your customer Start with the end in mind Don’t accept the status quo Reframe the problem Be willing to try new things Use the real-world as your laboratory Differing opinions lead to better results Get feedback early and often Take risks Embrace failure We can accomplish way more together than on our own It’s not rocket science… so don’t make it rocket science "If everyone is moving forward together, then success takes care of itself." - Henry Ford
- 23. 23 TAKE THESE THREE THINGS & RUN WITH THEM 1. Together we can accomplish so much 2. There is no better lab than the real world 3. The time to act is NOW
- 24. THANK YOU! Paul Higgins CEO of DINGO phiggins@dingo.com Brisbane, Australia We invite you to stop by booth 1319 to test drive our Award Winning Field Inspection App and enter a drawing for a chance to win one!
Editor's Notes
- POTS: Ground the audience. What is innovation and what it is not Quote is from Peter Drucker True Innovation… Solves a real problems Leads to significant positive change Means venturing into uncharted territory The ability to delivery new value to a customer
- POTS: What is innovation and what it is not Use Uber or other as example (not a faster or leaner taxi service) They reframed the problem. They didn’t ask how do we improve taxis and taxi service… they asked How can we make better use of an untapped resource….and make the transportation of people faster, easier, and better for everyone involved.?
- The previous focus on volume at any cost has led to inefficient practices in terms of productivity. Productivity, on both a volume and cost basis, has been declining significantly in the mining industry since 2000. This has been a conscious choice by industry participants to pursue production growth and headline revenue during an unprecedented boom in commodity prices.
- The impact of the mining downturn in Australia has been overwhelmingly negative for Australian METS. So much so that 79% reported a decrease in revenue, 61% reported a decrease in profitability, 59% reported a decrease in customers and projects and 52% reported a decrease in employees. On average, the decrease in revenue reported was 31%. Unsurprisingly, the number one challenge for the sector, with 66% of companies selecting it, was the downturn in the mining industry. - See more at: http://www.austmine.com.au/News/articleType/ArticleView/articleId/2724/National-METS-Survey-2015-Results-New-Realities-Bigger-Horizons#sthash.vSMnbrL4.dpuf “Despite the expected cyclical nature of the mining industry, many firms have commented the downturn seems to be deeper than before and cost structures fostered in the boom times cannot now be supported. This is reflected in the survey as 46% percent of businesses reported that the cost of doing business in Australia was a key challenge, making it number 2 on the challenges list.
- When nothing is left to cut, a new dimension of performance is needed to thrive…and survive Necessity is the mother of invention.
- There’s nowhere to go but up. The inefficiency created during the boom presents the mining industry with a ton of opportunity to improve.
- Mining companies are being forced to rethink the way they operate. There is an openness to change that wasn’t there before. This appetite for change is necessary for innovation.
- POTS: Now is the perfect time for REAL innovation Environment is more conducive to innovation In this together – Industry, country, community Not adversarial land grab Use AIMEX as example. Who is here? Technology adoption in mining (very slow, show chart) The industry knows it has to change (use evidence) After experiencing the ups and downs of the mining industry for over 20 years, we’ve learned that smart innovation in tough times can pay dividends over the long haul. Companies can develop strong, lasting partnerships by creating value for customers when they need it the most.
- In order to deliver this type of value-added innovation, keep these two concepts front and center throughout the innovation process:
- POTS: Provide why collaboration is key. Not a pure research model Ideas from inside and outside industry Key is solve a real pain Collaborate: By working side by side with your customers, you will understand their pains, and your solutions will end up solving real customer needs How does Apple do it? Apple wins because it understands the needs of its customers better than they do….they solve real problems brilliantly…they know when to partner…and they aren’t afraid to venture into the unknown. The iPod. The elegant MP3 player that started Apple’s decade of disruption. iTunes. Beautiful software with a powerful business model that showed that people would in fact pay for music if the price was right and the interface was simple enough. The iPhone. Dubbed the “Jesus Phone” by supporters, a smartphone that still hasn’t been matched by rivals. 3rd Party Apps on iTunes. Sure, no one needs 98 percent of the apps that Apple offers, but wow, what a selection. The Apple Store. The quietest part of Apple’s revolution, $4,5 billion worth of goods move through Apple revolutionary stores. Other apple example The development of Apple’s iPhone applications is one of the shining benchmarks that transformed the company. Originally at launch, the iPhone had only a few software applications which led outside innovators to create additional applications and share them online. Apple recognized this innovation, identified the need for a formal third party development program, and today thousands of external software developers have written applications for the iPhone that have greatly enhanced its value.
- POTS: Why lean startup model is effective Move Fast and Iterate: Develop a minimum viable product and get it into the hands of your customers. It’s rare to get something right the first time, so by getting real-world feedback and iterating, you’ll end up with a useful product that your customers love. Don’t be afraid to do it as skunk works Show example of how we are doing this with the new App Col is developing as well as the dashboard. Contrast with Nuclear power station of main efforts
- POTS: Why lean startup model is effective Move Fast and Iterate: Develop a minimum viable product and get it into the hands of your customers. It’s rare to get something right the first time, so by getting real-world feedback and iterating, you’ll end up with a useful product that your customers love. Don’t be afraid to do it as skunk works Show example of how we are doing this with the new App Col is developing as well as the dashboard. Contrast with Nuclear power station of main efforts
- This approach led to the development of the Field Inspection App, which was awarded the prestigious 2015 Austmine Innovation Award for METS. According to the CEO of Austmine. “The Trakka Field Inspection App is a unique and novel development that is a simple, but incredibly effective method for addressing a very real need in the industry. It is intuitive, allows informed real-time decision making, and fits smoothly into existing operations.” Collaboration and iteration were the magic behind the success of this product. The Dingo Field Inspection App, winner of the Austmine 2015 Innovation Award for METS, is a mobile, end-to-end solution for field inspection data capture and analysis. This new app enables technicians to capture images, along with notes and ratings, on their mobile devices while physically inspecting equipment. This observation data then integrates directly with Trakka®, Dingo’s proprietary condition management software, allowing a centralized expert to easily review, analyze and extract the maximum value from this information. Here are a few highlights from Blackwater: ü Mine has saved hundreds of thousands of dollars per year by eliminating a contractor and taking this process in-house ü Visual inspection data is also now being used to make better maintenance decisions and is part of the pre-maintenance planning process. Previously, BMA was only getting monthly reports from the 3rd party vendor and so they weren’t able to incorporate this information into their maintenance planning process. ü Greatly reduced the documentation time to almost zero as the site doesn’t have to download photos, paste them in a word document and then email them. All of those steps have been eliminated. ü Now the mine has a centralized location to store and manage photos (in Trakka) -- previously images weren’t stored at all ü Inspection data is being used in collaboration with other condition data to drive better maintenance decisions ü Giving team confidence to use other mobile based technologies in maintenance Usage stats: • 2800 inspections to date • 87 assets being covered, including drills, draglines, dozers, haul trucks, loaders • 600 components on app • average 400 inspections per month • usage behavior: 4-5 photos per asset inspection in the field / 4-5 different locations on asset We believe that this is an incredible success story of a BMA mine driving innovation at the ground level. The app could also be leveraged at your other mine sites to drive efficiency.
- Usage stats: • 2800 inspections to date • 87 assets being covered, including drills, draglines, dozers, haul trucks, loaders • 600 components on app • average 400 inspections per month • usage behavior: 4-5 photos per asset inspection in the field / 4-5 different locations on asset
- Conclude with 3 points…reference this practice at Dingo (Run Smarter!) 1. Collaborate "Coming together is a beginning, staying together is progress, and working together is success." - Henry Ford Many CEOs see collaboration as key to their success with innovation. They know they cannot do it all using internal resources. So they look outside for other organisations to partner with. A good example is Mercedes and Swatch who collaborated to produce the Smart car. Each brought dissimilar skills and experiences to the team. 2. Build Prototypes & Welcome Failure ‘Don’t debate it, test it’. Build MVPs and give them to your customers to use. You will learn far more in the real world than you will in the test laboratory or with focus groups. Innovative leaders foster a culture of experimentation. You must teach people that each failure is a step along the road to success. To be truly agile, you must give people the freedom to innovate, the freedom to experiment, the freedom to succeed. That means you must give them the freedom to fail too. 3. This is the perfect storm for innovation The industry needs to innovate to survive and thrive—and necessity is the mother of invention. And there’s plenty of opportunity to innovate. With the inefficiency created during the boom, there’s nowhere to go but up. Finally, miners are inviting change. A traditionally conservative industry is embracing partners who are challenging convention and breaking the rules to find a better way.