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C O N V E N E S C O O R D I N A T E S P R E S E N T S
O R G A N I Z E S M E D I A P A R T N E R C O L L A B O R A T E S
“First Meeting of the Network of Mining Regions”
Supply Innovation
Taking Cluster to the Next Level
“First Meeting of the Network of Mining Regions”
Mining industry challenges
Safety and Sustainability
Declining Grade
Industry Disruption
Production vs. Innovation
“First Meeting of the Network of Mining Regions”
Creating space for innovation
Focus on TechnologyStrategically and Operationally
Open Innovation MethodologyCluster to Supply Innovation
Supplier Relationship ManagementSRM
CultureTrust and Collaboration
“First Meeting of the Network of Mining Regions”
Cluster Program
Cluster Program success to date…
• Incubated in 2008 in BHP in Chile and 2010 in CODELCO
• Designed to develop World Class Suppliers, by solving operational issues (Shared Value*).
• Delivers value to the mines and the country.
• Piloted, tested and proven methodology.• Internal and external recognition (IDB,
OECD, Business in the Community, Chilean Public Policy, HSEC Awards, etc.)
Best Practices in Large-Scale MiningMining Council – November 2012
(*) Porter and Kramer. "Creating Shared Value." Harvard Business Review 89, nos. 1-2 (January–February 2011).
Now is the time to build on the Cluster Program’s
success to scale up and amplify delivery
“First Meeting of the Network of Mining Regions”
Taking Cluster to the Next Level –
Supply Innovation
We use our business challenges to spark innovationand create shared value for BHP, our communities
and the countries where we operate.
Through collaboration and trust in action, we empower an ecosystem of innovation delivering
value for all.
“First Meeting of the Network of Mining Regions”
Supply Innovation
Leveraging Supply Innovation to create shared value for BHP, our communities
and the countries where we operate
External Innovation EcosystemEnables regional stakeholders to accelerate
economic growth and job creation
Internal Innovation EcosystemPeople/Culture - Processes - Technology
BHP business challenges become the catalyst for developing an ecosystem of
innovation
Technology
Supply
Operations
Business Challenges
Innovation
“First Meeting of the Network of Mining Regions”
Supply creates shared value at three levels
Supplier Relationship Management / SRMCollaborating with strategic suppliers to amplify our reach:• Local Hiring• Buying locally• Developing local entrepreneurship• Creating innovative solutionsNext lever of value creation for BHP Supply
Creating the Future
Innovator
Adaptor
Simple User
StrategicM
ETSLo
cal &
Ind
igeno
us
Cluster / Supply InnovationFoster an ecosystem of entrepreneurial innovation• Leveraging supplier innovation by taking a business
challenge to the market, both strategic and operational
• Targeted interventions supporting suppliers scale upExample: Cluster Program in Minerals Americas
Local Suppliers & Indigenous Communities
Support form small local suppliers (direct and indirect):
• Access to BHP (Outsource)
• Business basics assistance
• Supporting local entrepreneurs
Example: BMA Local Buying Program in Minerals Australia
“First Meeting of the Network of Mining Regions”
Empowering the Ecosystem of Innovation
“First Meeting of the Network of Mining Regions”
Areas of opportunity
Exploration and Planning
Extraction and Transport
Dry Processing Wet Processing
Inn
ova
tio
n
Tech
no
logi
es
Energy and Water
Automation
Big Data
Process Optimization
C O N V E N E S C O O R D I N A T E S P R E S E N T S
O R G A N I Z E S M E D I A P A R T N E R C O L L A B O R A T E S