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or NLMK Group, digital technologies represent another tool, which helps to maintain leadership in efficiency. This is an opportunity to speed up changes in production and business processes. In 2017, together with SAP, NLMK created the first Co-Innovation Lab in Russia. The laboratory focuses on research, ideation and prototyping of innovative solutions not only for our company, but for the entire metals and mining industry. Digital steelmaking Today mining corporations, such as Rio Tinto, BHP Billiton and Fortescue Metals Group, have already tuned up the unmanned trucks operations at their mines. The steelmaker POSCO is close to the establishment of a smart plant. Many Russian industrial companies have also launched major projects. With the help of digital technologies Russian companies try to predict equipment failures, to determine the required amount of raw materials with the maximum accuracy in order to get the desired parameters of finished products, to improve equipment efficiency, to track transport and employees. There are a great many of those who try to fall into the world of digital technologies. But it is important to bear in mind that steel companies have been shaping for decades, a certain culture, and technologies have been developed, both product range and business process have been automated. Therefore, of
course, it is not possible to change everything overnight, but everyone is moving this way applying different methods and approaches. At the beginning of 2017 NLMK Group and SAP created a joint innovation laboratory. The laboratory team consists of only 10 people from NLMK and SAP but we can engage experts from various functional areas of NLMK and SAP consultants with the necessary skills set to help with our projects. We do not invent computer technologies and do not produce computer equipment. The Laboratory objective is to evaluate innovative technologies and trends – such as machine learning, Internet of Things, virtual reality – and see if they can be applied to the current business processes of NLMK Group. Thus, we get the opportunity to confirm or oppose the efficiency of innovative technologies in reality, understand the economic benefits and feasibility of various solutions. The Laboratory helps to consolidate technological experience. Brainstorming the topic We started generating ideas during designthinking sessions. The first one took place in the SAP representative office in Potsdam. There NLMK Group top managers proposed eight ideas including a smart warehouse and predictive maintenance. Four of those were taken to task: three machine learning and one IoT project. The main feature of a design-thinking
session is not a critical analysis in contrast to analytical thinking, but a creative process, which triggers the most unexpected ideas. In fact, creativity makes people take an unconventional perspective on things that seems to be quite usual. This allows them not only to create something new but also to hit on non-standard solutions applied to various problems. This feature is in high demand in any field – it does not matter if you are a writer or a manager who tries to build up desired relations with a customer. That is why, today such a creative way of thinking is one of the main business trends. Indeed, if you master this skill, you can become a successful “designer” of any business process. Today employees of all levels including top managers and operational personnel, participate in design-thinking sessions. Within one year more than100 ideas were developed during several sessions and workshops. At least 10 of them may lay down the foundation for innovations. When an idea is approved, a prototype development starts and takes about six months. It cannot take any longer otherwise a lot of changes, which might be critical for the project, can take place. Personnel positioning Creation of a prototype 3D-Employees positioning system based on SAP SCP is one of the first projects of the joint innovation laboratory. The prototype was created on
Objectives of NLMK-SAP Joint innovation laboratory
Implementation of innovative ideas. Development of new competitive capabilities of NLMK
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Partnership with other processoriented partners, foreign mining and steelmaking companies and universities
Creation of a platform for development of SAP innovative solution strategy in mining and steelmaking industry
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