Previous discussion threads pointed out how the mining industry is evolving and moving toward
technological innovation. Also, it is mentioned that these new technologies will shape how
mining companies are managed.
In an era of technological improvements in several industries, mining included. Professor Clay
Christensen arose in 1997 with a new theory called Disruptive Innovation. The Professor defines
this theory as transforming a product that was historically too expensive and complicated that
only a few could afford into one much more affordable and accessible that a larger population
has access to. Following this line of thinking, it can be understood why new technologies such as
automation, digital twinning, machine learning, and the like have gained more popularity inside
the mining industry. The main reason would be the economic and technical accessibility of these
technologies in the past years.
Furthermore, the Professor elaborates on the dilemma that companies face when developing a
new product: they must choose between making a better product and selling it for a higher price
or developing a worst product that can ruin their margins. He called it the Innovator’s Dilemma.
This dilemma can be seen in the autonomous trucks market, where bigger competitors such as
Komatsu, Caterpillar, Volvo, and others decided to invest in developing this technology than
producing lower-cost trucks.
Finally, it will be valuable to watch another video about Professor Christensen talking about his
theory at Oxford University (first link below). He explained the idea of efficiency innovation
against disruptive innovation and how companies manage capital between these two stages. He
said that companies look forward to having better financial ratios by not investing their capital.
Extrapolating this concept to the mining industry can explain why companies have put more
effort into optimizing existing technologies over decades than generating any disruptive
innovation due to the high capital required.