Is idea of Innovation is misplaced in Mining?
Coming back to the definition of Innovation described in our last post. Innovation can involve a Process or Organization itself.
Process Innovation is the implementation of a new or significantly improved production or delivery method (including significant changes in techniques, equipment, and/or software). It should be noted that minor changes or improvements, an increase in production or service capabilities through the addition of manufacturing or logistical system which are very similar to those already in use, ceasing to use a process, simple capital replacement or extension are not considered innovations as per OSLO guidelines.
Organizational Innovation is the implementation of a new organizational method in the undertaking’s business practices, workplace organization or external relations. Once again, changes in business practices, workplace organization or external relations that are based on organizational methods already in use in undertaking, changes in management strategy, mergers and acquisitions, ceasing to use a process, simple capital replacement or extension, changes resulting purely from changes in factor prices, customization, regular seasonal and other cyclical changes, trading of new or significantly improved products are not considered innovations..
Considering the OSLO guidelines that define an Innovation it appears that innovation word in mining is misplaced. Mining is a production driven environment and often adding value sees as in terms of adding profit or improving production. Technically if we consider OSLO guidelines for innovation definition majority of “Innovation” expenditure and efforts by mining companies to improve logistic, increasing the size of the plant or making big trucks etc is not an Innovation.
Perhaps it time to start a dialogue on Innovation terminology used in Mining Industry. Do you think Innovation in Mining is a misplaced word?
Reference:Guidelines for Collecting and Interpreting Innovation Data, 3rd edition, Organisation for Economic Co-operation and Development, 2005, page 49
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