The hidden challenges of software implementation in mining

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This article is a collaboration with Mark Franklin from First Principles Consulting, creators of the Mining Value Index.

Mark and his colleague Alex Franklin will be presenting at Mipac’s first Pathways to Progress seminar series.

The hidden challenges of software implementation in mining: Why teams resist and how to succeed

The humble spreadsheet makes it far too tempting to quickly lash up a stopgap solution that can get us out of an urgent bind. And engineers are smart people! Combine smart engineers with powerful spreadsheets, and they will build you some very impressive software. No purchase orders required, just a few hours later, you have a solution.

Fast forward a couple of years, and what started as a simple, temporary spreadsheet solution has evolved into a horror web of multiple linked sheets, connected to dozens of data sources, and the creator is justifiably proud of their creation.

And then the creator left…

Now, other players ‘have a go’ at ‘fixing’, making changes and ‘improvements’. Of course, nothing is ever documented, and before you know it, critical formulas have been over-typed and hardcoded, until the tool becomes utterly broken.

We have seen such spreadsheet solutions become absolutely mission-critical. At some point, the penny drops, and a decision is made to move on to something more suitable.

There is only one answer — an enterprise solution is needed. A centralised cloud or site-hosted databases with rules and logic. These are far more powerful and reliable than the spreadsheet mess from hell, but they require an equally higher degree of structure brought to their specifications, use cases, selection processes and hence, resources.

Some examples of what is commonly used in the resources industry:

Phew! And that’s just a few that spring to mind.

In theory, implementing new enterprise software should be straightforward. After all, we’re introducing tools designed to make work easier, more efficient, and more productive. Yet, the reality often tells a different story, especially in industries like mining, where change can be particularly challenging.

The promise of enterprise solutions

Modern enterprise platforms offer compelling advantages over fragmented or legacy solutions:

  1. Centralised data management: Single source of truth, eliminating inconsistencies and redundancies
  2. Enhanced security: Enterprise-grade protection and compliance measures
  3. Streamlined workflows: Automated processes reduce manual intervention
  4. Real-time analytics: Immediate insights for better decision-making
  5. Scalability: Growing with your organisation’s needs
  6. Integration capabilities: Seamless connection with existing systems and future additions.

The sobering reality of digital transformation in mining

The statistics for digital transformation in mining are particularly stark:

  • McKinsey research shows 70% of digital transformations fall short of their objectives.
  • A study by the World Economic Forum found 73% of mining companies see local skills gaps as the biggest barrier to adopting new technology. 
  • 74% of mining and metals executives say integrating new technology is a key challenge, compared to 37% for all sectors.

 

Here’s the thing: What’s the most telling sign of failed implementation?

The silent rebellion of spreadsheets — they’re back! Or people never stopped using them. Despite investing millions in sophisticated software solutions, organisations often discover their teams maintaining parallel systems in Excel, a phenomenon known as “shadow IT.”

This creates not just redundancy, but serious risks in data accuracy and security.

Understanding the resistance

The challenge isn’t technological; it’s fundamentally human. Organisations don’t change until individuals change, and people are inherently resistant to new ways of working. In fact, Deloitte’s 2022 Intelligence Automation report found 52% of organisations cite an “inability to change business processes or ways of working” as a top barrier to scaling automation. PwC’s survey found 44% of employees admit they “don’t understand why things need to change at all.” 

The problem is not the software design, selection process or its capability.

This behaviour follows Everett Rogers’ Law of Diffusion of Innovation, where only 2.5% are innovators, and 13.5% are early adopters. The crucial “early majority” (34%) won’t move until they see others succeeding. And, according to Geoffrey Moore, most of these initiatives never ‘cross the chasm’ into actual adoption.

Critical success factors for change

So, what is one to do?

Successfully implementing new software requires a strategic approach focused on people, not just technology:

1. Executive sponsorship

  • Visible leadership support
  • Regular communication from top management
  • Resource commitment

2. Change champions network

  • Identify and empower early adopters
  • Create peer-to-peer learning opportunities
  • Celebrate and showcase early wins

3. Phased implementation

  • Start with pilot groups
  • Generate quick wins
  • Build momentum gradually

4. Comprehensive training

  • Multiple learning formats
  • Ongoing support systems
  • Regular feedback loops

5. Clear value proposition

  • Demonstrate personal benefits
  • Show team advantages
  • Link to organisational goals

Successful software implementation isn’t about forcing change but facilitating transformation. By understanding human psychology, leveraging social proof, and building a robust support structure, organisations can overcome resistance and achieve lasting adoption.

Remember: technology implementation is ultimately a people project. Focus 80% of your effort on the human element and 20% on the technical aspects. This ratio might seem counterintuitive, but it’s often the difference between a system that transforms your organisation and one that becomes another costly digital ghost.

The key is not just to implement new software but to create an environment where people feel supported, capable, and motivated to embrace change. When done right, the results can be transformative, leading to improved efficiency, better data management, and a more engaged workforce ready to tackle future innovations.

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