Coal Mining IT Survey

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    South AfricanCoal Mining Industry

    State of IT

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    Preface 1

    Executive Summary 2

    The Respondents: Background 4

    The Three IT Functions 6

    IT Spending 11

    Business/IT Alignment 17

    Conclusion 21

    Glossary 22

    The Author 23

    South African Coal Mining Industry: State of IT

    Table of Content

    The survey results contained in this report is based solely on the information provided by

    the participating organisations. Deloitte has made no attempt to verify the reliability of such

    information. We make no representation as to the sufficiency of the survey results for your

    purposes. The survey results should not be viewed as a substitute for other forms of analysis

    that the management should undertake and is not intended to constitute legal; accounting;

    tax; investment; consulting or professional advice or services. Before making any decision ortaking any action that affect your business, you should consult a qualified professional adviser.

    Your use of the survey results and information contained herein is at your own risk. Deloitte will

    not be liable for any direct, indirect, incidental, consequential, punitive damages, whether in an

    action of contract, statue, tort (including, without, limitation, negligence) or otherwise, relating

    to the use of the survey results or information contained herein. The results and informationcontained herein are provided as is and Deloitte makes no express or implied representatives

    or warranties regarding the results or the information. The results are solely for yourinformational purposes and internal use and cannot be reproduced or redistributed without

    written consent. For more information, please see contact details at the back of this publication.

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    1

    South African Coal Mining Industry: State of IT

    For more than a century, South Africas mining industry (specifically

    the gold, diamond, coal and platinum mines) has made an

    important contribution to the national economy. It has provided the

    impetus for the development of an extensive and efficient physical

    infrastructure (railways, ports, roads, etc) and has contributed

    greatly to the establishment of the countrys secondary industries.

    As in most industries, the mining industry continues to invest

    heavily in IT. However, despite the importance of the industry to

    the national economy and the significant investment in IT, it is our

    experience that there is very little industry-specific IT data available.

    This makes competitive benchmarking all but impossible, in an

    industry that remains focused on cost containment.

    It is for this reason that Deloitte decided to conduct a survey

    aimed at generating reliable quantitative data on the local mining

    industrys IT landscape as well as the key issues facing the industry's

    IT decision makers.

    This year the survey focuses on the Coal Mining Industry and

    contains information on the IT environments of some of the

    country's leading coal mining organisations, which will allow the

    CIO's, IT managers and other IT decision makers in this sector to

    compare themselves to their peers with respect to:

    IT spending levels

    IT staff numbers and composition

    IT budget allocation

    IT decision making

    Key focus areas

    The information contained in this report is based solely on data

    gathered through the survey process, which consisted of thecompletion of a detailed questionnaire. The survey questionnaires

    were completed by the IT leaders (CIOs and GMs) of the

    responding organisations. Although the survey population is quite

    small (only around 25% of the countrys coal mining organisations

    contributed to the survey), we believe the findings are broadly

    representative of the state of IT in this sub-sector of the economy.

    Preface

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    We asked the IT leaders of a number of South Africas leading coal

    mining organisations a series of detailed questions about the state

    of IT in their organisations. Although the report contains a wealth

    of information, we believe that there are six key observations that

    have emerged from the research:

    1. IT spending is finally on the increase: All respondents reported

    an increase (10%) in their IT spending for the 2005/2006

    period. Although all three organisations experienced very good

    revenue growth rates over the 2002/2003 - 2004/2005 period

    (~26% CAGR as a group), only one respondent reported a

    positive growth in IT spend over the corresponding period.

    This cost-reduction trend now seems to have come to an end.

    Given the steady rise in coal production volumes achieved by

    the responding organisations, this increase in IT spending is

    hardly surprising because at some point capital investment in

    IT systems and infrastructure becomes inevitable if the business

    growth is to be sustained.

    2. A global footprint does not have to translate into a bloated

    IT Function: The two global respondents have much leaner IT

    Functions (in relative terms) than the local respondent.

    3. Higher IT spending does not necessarily translate into business

    growth: In the sample of respondents, the organisation

    with the highest IT expenditure has the lowest revenue per

    employee. The organisation with the lowest IT expenditure had

    the second highest growth in revenue. It would seem that there

    is no real correlation between business growth (top l ine) and

    the size of the IT budget alone. This does not mean that theinvestment in IT adds no value, it simply suggests that some

    organisations are better than others at extracting the maximum

    value from each Rand invested in IT.

    4. Despite having lean IT organisations, operating in environments

    with significant corporate activity and higher IT complexity, all

    of the respondents believe their ability to meet the IT needs of

    the business have improved over the past three years.

    Executive Summary

    2

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    5. Despite the low IT spending levels (compared with most other

    industries), it is interesting to note that 2/3 of the respondents

    reported that the strategic value of IT is recognised in their

    organisation and that there is a willingness to invest in

    new technology.

    6. All of the respondents assign the majority of their IT resources

    (Full Time Equivalents) to the management of the IT operational

    environment, where they typically focus on: hardware support,

    system/network management, incident management and

    user support.

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    South African Coal Mining Industry: State of IT

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    South African Coal Mining Industry: State of IT

    The respondents1 to this survey are two global and one local

    (i.e. purely SA-based) coal producers. All three respondents

    have significant footprints (both from a business operations and

    IT perspective) in South Africa with the IT leaders of all three

    respondents based in South Africa.

    The respondents fall into two categories from an operational

    perspective, namely: coal miners with operations spread across

    more than one continent, serving customers in many markets, and

    coal miners with operations in South Africa only, serving a small

    number of (primarily) SA-based customers.

    Images 1 and 2 clearly illustrate the difference in the scale/scope of

    these two categories of coal miners.

    Please note: The three respondents are referred to as A, B and

    C in the Images below.

    The Respondents:Background

    Note 1: The term respondent as used in this context, refers to the organisation and not theindividual who completed the survey

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    South African Coal Mining Industry: State of IT

    Over the past three years (2003 - 2005), each of the respondents

    were involved in some form of corporate activity (this is summarised

    in Table 1). High-levels of business change (e.g. the formation

    of JVs, re-structuring and the establishment of shared-services

    environment) invariably change the complexity of the IT landscape.

    Table 1: Respondents Corporate Activity (past three years)

    Type of corporate activity that the

    respondent was involved in

    R

    espondent

    A

    R

    espondent

    B

    R

    espondent

    C

    Formed a Joint Venture

    Sold part of the business

    Embarked on a significant business

    re-structuring

    Established a shared services environment

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    This section of the report provides information about the IT

    Functions of the three respondents. As with the organisations

    themselves, the three IT Functions are quite diverse in terms of size,

    focus and composition (this will be elaborated on in the paragraphs

    that follow).

    To start with, the IT Penetration ratios (technology enabled

    employees as a percentage of the total employees) of the three

    organisations fall into a fairly broad range (refer Image 3 below).

    The IT Penetration ratio is important as it provides an indication

    of the IT proliferation in an organisation, which in turn drives the

    extent of the IT support required. Historically, the IT penetration

    in the mining industry has been lower than in many other

    industries, which is understandable given the fact that there is a

    high correlation between IT penetration and the scale/scope of theknowledge work performed by an organisation (although mining

    organisations do engage in knowledge work, this occupies a

    relatively small percentage of the productive workforce).

    The ThreeIT Functions

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    Image 3 illustrates the IT penetration in the three responding

    organisations, which range between 27% and 41%.

    Another important measure (in terms of understanding the IT Functions

    of the respondents) is the Ability to Service - this is a qualitative

    measure, indicating an IT Functions ability to meet the IT needs of thebusiness given: (a) the complexity of the organisations IT environment,

    and (b) the IT Functions inherent capabilities - refer to Image 4 below

    for a more comprehensive description of these two dimensions. An

    IT Functions Ability to Service is influenced by the extent of the

    corporate activity that the organisation is involved in over a given period.

    Image 4 illustrates the perception of the IT leaders (from each

    responding organisation) regarding the ability of their respective IT

    Functions to service the IT needs of their organisations now (2006)versus three years ago (2003).

    When analysing the size of an organisations IT Function, it is

    important to take two issues into consideration, namely: (a) the

    number of IT Full Time Equivalents (IT FTEs) as a percentage of

    the total number of employees, and (b) the extent of technology

    penetration in the organisation. The lower the ratio of IT FTEs to

    Total Employees (TE), the leaner the IT Function. The higher the ITpenetration (technology enabled employees as a percentage of the

    total employees), the greater the demand for IT support. A very

    lean IT Function, operating in a high IT penetration environment

    will in theory have to be very efficient (i.e. all things being equal, a

    small team of IT resources will have to work smarter than a larger

    team to service the same group of IT users).

    Definitions of IT Environment Complexity and

    IT organisation Capability

    The IT Environments complexity is a function of:

    Level of standardisation in the hardware, software and

    network environments;

    The number-, geographical distribution and cultural diversity

    of the IT users;

    The sophistication of the organisations information needs

    as well as the extent of the cross-BU/cross-geography

    information integration/consolidation that takes place;

    The number, geographical distribution and age profile of the

    hardware and infrastructure platforms.

    The Organisations capability is a function of:

    The number of IT FTEs available to service the IT needs of the

    organisation;

    The skills level and profile of the IT FTEs;

    The motivation levels of the IT FTEs;

    The quality of the processes; systems, and procedures used

    by the IT FTEs; The operating model that is in place (fully outsourced, in-

    house, or some combination).

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    South African Coal Mining Industry: State of IT

    Image 5 provides the following information regarding the IT

    Functions of the responding organisations:

    IT FTEs as a percentage of the TE (the respondents position on

    the y-axis);

    Technology Penetration (the respondents position on the x-

    axis);

    Number of Technology Enabled Employees (TEEs) for each IT

    FTE.

    The composition of the respondents IT FTE numbers from a reporting-

    line perspective (i.e. the organisational entities that the IT FTEs report

    to) are illustrated in Image 6. This information provides some insight

    into the IT staffing models adopted by the various respondents.

    From Image 6 above, the following observations can be made

    regarding the responding organisations IT staffing models:

    All three organisations make use of their outsourcing partnersresources for certain of the IT Functions, although only one

    respondent has indicated that the outsourcing partners

    resources make up the majority of the IT FTE number;

    Two of the respondents reported some incidence of other

    parts of the business (i.e. not the IT Function) performing

    certain IT Functions;

    In all three organisations, the use of contract workers are very

    low (non-existent in one organisation).

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    South African Coal Mining Industry: State of IT

    It is also important to understand the composition of the

    respondents IT FTE numbers from an IT functional perspective (i.e.

    the key IT functions performed by the IT FTEs).

    Image 7 illustrates the allocation of the respondents IT FTEs to 11

    key IT functions.

    The following observations can be made regarding the responding

    organisations IT FTE allocation from a functional perspective:

    As a group, the respondents assign the majority of their IT

    resources (Full Time Equivalents) to the management of the IT

    operational environment, where they focus on: hardware support,

    system/network management, help desk and user support;

    As a group the respondents focused 28% of their IT effort on

    the design and deployment of business solutions (application

    lifecycle management, architecture and design);

    As a group the respondents focused 17% of their IT effort on

    business facing activities (relationship management, planning/

    governance, project management) and the remaining 7% on

    the management of the IT Function;

    Interestingly, there is very little focus on IT service-level

    management among the respondents.

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    South African Coal Mining Industry: State of IT

    When asked to identify the three greatest obstacles to improving

    the effectiveness of the IT Function, the respondents answered

    as follows:

    Table 2: Respondents view of the top three obstacles

    preventing their IT Functions from being more effective?

    Impediments to greater IT

    organisational effectiveness

    Respondent

    A

    Respondent

    B

    Respondent

    C

    Budget/cost constraints

    Lack of bussiness commitment to/

    awareness of IT

    Insufficient IT staff

    Lack of appropriate skills among IT staff

    members

    Currently installed technology base

    Lack of service orientation amoung IT staff

    Inability to attract the right talent -

    vacancies

    The following observations can be made regarding the responses

    outlined in Table 2 above:

    All respondents identified the lack of business commitment

    to/awareness of IT as an impediment;

    Four out of the seven (57%) listed impediments have to

    do with the IT staff. Interestingly, there are no common

    impediments - each respondent seem to have its own staff-

    related challenges; Only one respondent identified the current technology base as

    an impediment.

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    South African Coal Mining Industry: State of IT

    This section of the report provides information about the IT

    spending habits of the three respondents. The formal IT spending

    patterns of the respondents for the period 2002/2003 - 2005/2006

    are illustrated in Image 8 below.

    The following observations can be made regarding the formal IT

    spending patterns illustrated in Image 8 above:

    For the preceding three financial periods, the respondents

    reported diverse IT spending patterns, with CAGRs ranging

    from +13.39% (Respondent A) to -12.36% (Respondent C).

    However, all of the respondents reported an increase (of 10%)

    in the IT spend for the 2005/2006 financial period.

    ITSpending

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    South African Coal Mining Industry: State of IT

    However, the absolute IT spending figures need to be put into

    context. One way of doing this is by looking at the IT spending

    trends (over the 2002/2003 - 2005/2006 period) in conjunction

    with the organisations revenue growth over the same period.

    Image 9 (below) illustrates the IT spending trends of the respondingorganisations relative to the organisations net revenue growth,

    over the previous three years (2002/2003 - 2004/2005).

    The following observations can be made from Image 9 above:

    All three respondents have experienced very good revenue

    growth rates over the period (~26% CAGR as a group),

    however only one respondent reported a positive growth in IT

    spending over the corresponding period;

    The variation (between the respondents) in the IT spending

    growth numbers over the three year period is quite dramatic,

    namely: 22% (the variance between respondents A and

    B) and 26% (the variance between respondents A and C).

    However, this can be partly explained by the much lower base

    value (i.e. the 2002/2003 IT spend) of respondent A, which

    was 41% of respondent Bs IT spend and 36% of respondent

    Cs IT spend.

    All three respondents indicated that they expect their IT spending

    to increase during the 2005/2006 financial period as follows:

    Respondent A 2005/2006 IT spending projection: 10% increase

    (year-on-year)

    Respondent B 2005/2006 IT spending projection: 38% increase

    (year-on-year)

    Respondent C 2005/2006 IT spending projection: 15% increase

    (year-on-year)

    It is also interesting to look at the IT spend as a percentage of theorganisations total operating expenses (OPEX) as this provides

    an indication of whether ITs share of the organisations total

    operational expenditure has increased or decreased.

    Table 3: Respondents IT spend as a percentage of total OPEX

    Financial period

    Respondent

    A

    Respondent

    B

    Respondent

    C

    2002/2003 0.73% 1.59% 4.04%

    2003/2004 0.75% 0.86% 2.08%

    2004/2005 0.70% 0.90% 2.77%

    From Table 3 above it is clear that ITs share of the total operational

    expenditure has decreased significantly from the 2002/2003 levels

    in two of the responding organisations. ITs share of the totaloperational expenditure remains very low (~1.5% on average)

    compared to most other industries (for example in the financial

    services industry, IT costs can be 20% of total OPEX). From Image 2

    above, it is clear that the respondents total operational expenditure

    have grown at a healthy rate (average OPEX CAGR = ~16%), which

    shows that IT costs are managed much more aggressively than the

    other operational costs.

    The criteria used by senior decision makers to determine the business

    value of IT investments differ from organisation to organisation.

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    South African Coal Mining Industry: State of IT

    Table 4 indicates the investment criteria that will be used by the

    respondents during the 2005/2006 financial period.

    The numbers (1, 2 and 3) in each column in Table 4 below,

    represents the IT leaders view of the top 3 (i.e. first, second and

    third most important) IT investment decision-making criteria thatwill be used in their respective organisations.

    Table 4: Criteria used by the responding organisations to

    determine the business value of IT investments

    IT investment criteria

    Respondent

    A

    Respondent

    B

    Respondent

    C

    Provides better information for improved

    decision making1

    Achieve operational excellence targets 2

    Investment meets key financial metrics 1 1

    Automate business processes and/or

    provide shared-service capabilities3 3

    Reduce business risk and ensure good

    corporate governance2

    Maintain/enhance competitive advantage

    over rivals2

    Achieve production targets 3

    Another way of putting the overall IT spending numbers into context,

    is by breaking these figures up into various IT cost categories. The

    IT leaders were asked to break their organisations 2004/2005 IT

    spending number up into ten high-level IT cost categories.

    Image 10A below illustrates the respondents IT spend breakdown

    for the 2004/2005 financial period, based on the 10 IT cost

    categories that were used in the survey.

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    South African Coal Mining Industry: State of IT

    The following observations can be made regarding the IT spending

    patterns (per cost category) of the responding organisations:

    All three respondents spent significant portions (10%) of their

    IT budget on: external service providers and internal staff;

    All three respondents spent 5% or more of their IT budgeton: network/data communications, application software

    development and server hardware/operating systems.

    However, apart from the above mentioned similarities, the IT

    spending patterns of the responding organisations are surprisingly

    diverse. It is therefore important to look at the average (across the

    group) spending allocation to identify more meaningful trends.

    Image 10B below illustrates the IT spend breakdown of the group

    across the 10 cost categories.

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    South African Coal Mining Industry: State of IT

    It is clear from image 10B that as a group the IT spending is heavily

    concentrated around four cost categories namely: (1) application

    software development & maintenance, (2) network & data

    communications, (3) internal staff and (4) external service providers.

    These four cost categories collectively consumes more than 70% of

    the groups IT spend.

    It is also useful to understand the technology areas that the

    responding organisations are allocating their IT budgets to. There

    are four main technology areas that collectively make up the typical

    mining IT landscape. Image 11 below summarises the composition

    of each of these areas.

    Image 11: Mining IT Landscape (four technology areas)

    Mining & Technical Systems Commercial Systems

    Rock engineering systems Enterprise resource planning (ERP) systems

    Mine resource management (MRM) systems Logistics management systems (if not part of the ERP suite)

    Mine design systems Financial and accounting systems

    Mine and plant management systems Business intelligence and data management systems

    Scheduling systems Office productivity systems (Microsoft Office)

    Geology systems eMail

    Laboratory information management systems Knowledge and content management systems

    3D Viewing systems Executive/Management information systems

    Drawing systems

    The Back Office eBusiness Systems

    Hardware Electronic procurement systems

    Networks (LAN, WAN, GAN) Web site/s

    Data centres Enterprise portal and/or Intranet/sOperating system software Electronic Data Interchange (EDI)

    Database software Electronic marketplaces (customer, supplier and/or business partner

    trading platforms)Security software

    Network/system management software

    Integration software

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    South African Coal Mining Industry: State of IT

    The respondents IT budget allocation across the four technology

    areas defined in Image 11 (for the 2005/2006 financial period) is

    illustrated in Image 12 below.

    Finally, an important IT spend-related issue is the chargeback

    method/s used by the respondents. IT chargeback refers to the

    practice of recovering the costs associated with the delivery of IT

    services from the business (or business units) whose employees

    consume these IT services. There are various chargeback methods

    that can be employed, depending on the business model that has

    been put in place.

    Table 5 below gives an indication of the IT chargeback methods

    used by the responding organisations.

    Table 5: Respondents adoption of IT chargeback methods

    IT chargeback methods employed

    Respond

    ent

    A

    Respond

    ent

    B

    Respond

    ent

    C

    Flat rate - Current year costs are charged

    to the functions/business units based on a

    single metric

    Bugeted rate - Budget cost or adjusted

    budget costs are charged to the functions/

    business units based on a single metric

    Budgeted rate with penalties - Budget

    costs or adjusted budget costs are charged

    to the functions/business units based on a

    single metric, along with non-compliance

    penalties

    Activity based costing - Based on per-unit

    of services pricing composed for aggregate

    cost to provide the service

    Full direct chargeback - Directly identified

    at time of usage and charged to each

    customer

    Market-based third party rate - Costs

    defined based on current market rate per

    unit and usage

    It is clear that the full direct chargeback and budgeted rate

    methods are the most commonly used IT chargeback methods.

    This is an interesting finding since the full direct chargeback

    method is a relatively advanced form of IT chargeback, requiring

    well developed measurement/monitoring capabilities with mature

    customers (business users).

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    South African Coal Mining Industry: State of IT

    The IT leaders of the responding organisations were asked to

    indicate where they would be focusing their efforts to improve the

    overall performance of the IT Function. Their combined views are

    illustrated in Image 13 below. Note: The value of each focus area

    (on a scale of 0 - 7) indicates the three IT leaders combined view of

    the importance of that specific focus area.

    Business/ITAlignment

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    South African Coal Mining Industry: State of IT

    It is important to keep in mind that an IT leaders focus is invariably

    a reflection of the business expectations of the IT Function.

    From Image 13 it is clear that there are five main focus areas,

    namely (1) management of the IT investment, (2) effective

    management of IT projects (to ensure that they yield the intended

    business benefits), (3) the identification of automated solutions for

    business problems, (4) definition of the information architecture

    and (5) the definition/management of IT service levels.

    The IT leaders of the responding organisations were also asked

    to indicate (using the high-level Mining Industry Value Chain as

    summarised in Image 14 below) where they would be executing

    major (>R1 million) IT projects during the 2006/2007 financial

    period. Image 14 summarises the responses. Note: The circles

    indicate where (in the Value Chain) the responding organisationswill be executing major IT projects.

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    South African Coal Mining Industry: State of IT

    From Image 14 it is clear that the majority of the IT projects willbe in the core value chain area. All respondents indicated that

    they expect to be involved in major IT projects within the extract

    resource and process & refine product areas of the value chain.

    It is also worth mentioning that the focus (from an IT project

    perspective) on the business intelligence and integrated design,

    planning and scheduling parts of the value chain, supports the

    focus on the information architecture as indicated in Image 13.

    The IT leaders of the responding organisations were asked to define

    the IT decision-making styles used by their organisations, specifically

    with regards to the organisational entities (business, IT or both)

    involved in making these decisions.

    Table 6 illustrates the entities that are involved in making the key IT

    decisions in each of the responding organisations.

    Table 6: Respondents key IT decision-making styles

    Key IT Decisions

    Respondent

    A

    Respondent

    B

    Respondent

    C

    IT only

    Business

    and

    IT together

    IT only

    Business

    and

    IT together

    IT only

    Business

    and

    IT together

    IT principles decisions

    Enterprise architecture decisions

    IT infrastructure decisions

    Business application needs

    IT investment and prioritisation

    decisions

    Monitoring and control decisions

    Coordination and compliance

    decisions

    IT policy decisions

    IT management decisions

    Common IT decision-making styles across all three organisations

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    From Table 6, two distinct IT decision-making styles can be identified:

    Full business oversight: Business involved in almost all major

    IT decisions (with the exception of the truly back office

    - infrastructural decisions);

    Partial business oversight: Business involved in only certain IT

    decisions (financial, business applications, IT management and

    performance management).

    In order to understand the responding organisations views on the

    importance/value of technology, the IT leaders of the responding

    organisations were also asked to give an indication of:

    The senior business executives view of IT assets;

    The organisations approach to technology adoption.

    Image 15 indicates the IT leaders views on both of these

    issues, which gives an indication of the organisations attitude

    towards technology.

    From Image 15 it is clear that two of the responding organisations

    recognise the strategic value of IT, while the third organisation

    does not.

    Finally, the IT leaders of the responding organisations were asked

    to identify their top five objectives for the 2005/2006 period - this

    is summarised in Image 16. Again, as with the top five focus areas

    (illustrated in Image 13 ), these objectives give an indication of the

    organisations expectations of the IT Function.

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    We believe the information contained

    in this report provides valuable insights

    into the IT issues facing coal mining

    organisations, both nationally and

    internationally.

    Although this years survey focused on

    the coal mining sector, the intention is to

    expand the scope of the survey to includethe other key mining sectors (specifically

    gold- and PGM mining).

    Deloitte would like to thank the

    participating organisations for sharing their

    data as part of the initial survey.

    Conclusion

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    South African Coal Mining Industry: State of IT

    Net Sales

    Gross Sales Revenue less Commissions Paid.

    Total Assets

    Non-current Assets plus Current Assets.

    Operating Expenses

    Cost of Sales plus Market Development and Promotional

    Expenditure plus Other Net Expenditure (realised and unrealised

    foreign exchange losses, project maintenance costs, restructuring

    costs, impact of asset exchanges, etc.)

    IT Function

    The part of the organisation that is formally charged with

    managing the IT environment.

    IT Environment

    The term refers to the organisations IT ecosystem, consisting of:

    hardware, software and network infrastructure plus the IT user base

    plus the business data/information generated.

    IT Full Time Equivalents

    All people involved in the delivery of IT services to the organisation.

    This includes full time-, part time-, contract- and temporary ITworkers.

    Technology Enabled Employees

    Employees with access to a desktop, laptop, thin-client, kiosk or

    mobile computing device on a daily basis.

    Formal IT Spending

    That portion of the total amount that the organisation spends on IT

    that is under the management of the organisations IT Function (asopposed to other parts of the organisation, such as Business Units,

    other Support Functions, etc.).

    IT Assets

    All IT hardware (servers, laptops/desktops, mobile devices, printers,

    physical media, etc), software (business applications and back-office

    systems/tools) and network infrastructure (firewalls, routers, hubs/

    switches, cabling, PBXs, etc).

    Glossary

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    Werner Nel is a manager in Deloittes Johannesburg office where he

    is part of the Technology Integration service line.

    Werner has served as a strategic advisor to senior IT executives in

    several of South Africas leading organisations and has consulted

    extensively in the mining industry.

    Werner Nel

    Technology Manager

    Consulting

    Deloitte South Africa

    +27 (0)83-286-0508

    [email protected]

    The Author

    23

    South African Coal Mining Industry: State of IT

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