Business Model Canvas for Australian Mining

This assignment analyzes the Australian mining industry through the lens of a business model canvas, highlighting key partners, value propositions, customer segments, and technology. It recommends leveraging augmented reality (AR) and virtual reality (VR) technologies for training, data management, and customer engagement. The analysis also emphasizes the importance of sustainable development practices and cost optimization to enhance profitability and address industry challenges.

Running note: DIGITAL INNOVATION
Digital Innovation
Name of the Student
Name of the University
Author note

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Executive summary
The objective of the paper is to analyze the business model canvas of the mining industry in
Australia and bring about a modification in the technology and customer targeting in context to
augmented and virtual reality. The industry has formed its business model canvas and shown that
the main customer segment is the rich industrialists. Thus, the industry can use the concept of
augmented and virtual reality in reducing the gap between the industry and its employees and
customers. Moreover, it can also use the Omni channel distribution system to target its customer
segment.

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Table of Contents
Introduction......................................................................................................................................2
Business model canvas....................................................................................................................2
Technology analysis........................................................................................................................4
Alignment of business model..........................................................................................................5
Recommendation.............................................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
Australia has a large mining industry due to its large deposits of varieties of minerals.
The oldest metal that is found in the country is Copper that is one of the most useful mineral
used by humanity. The total amount of copper cover in Australia accounts for 6%, which has
made the country the fifth largest copper producer globally. The industry has also continuously
induced a large number of new technologies in order to improve their mining methods (Ivanova
2014). This paper focuses on the business model set up by the mining industry depending on
augmented and virtual reality. Further, it will discuss about the technology trend linking to the
realities. It will focus on the effect of the business model of the industry on the value proposition
mainly viewing the customer segments and customer journey.
Business model canvas
Key Partners
 Investors
 Governm
ent
 Distributo
rs
 Miners
 Customer
s
Key activities
 Mining
 Surveyin
g
 Reaching
the ore
 Digging
out the
ore
 Melting
the ore
 Distributi
ng
Value
proposition
 Risk free
environ
ment to
the
workers
 Investme
nt in
research
and
develop
ment
activities
 Continuo
us
innovatio
n
 Sustaina
ble
method
Customer
relationship
 Maintain
the data
base
 Manage
the
customer
s
through
CRM
 Modifyi
ng the
elements
of
mining
accordin
g to the
needs of
the
customer
Customer
segment
 Industrial
customers
 Business
men
 Premium
customer
base
 Niche
market
Key Resources
 Miners
 Mining
ore

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of
mining
 Good
customer
experien
ce
s
Cost structure
 Cost of
inputs
 Structurin
g the price
of metals
Revenue stream
 Price of
the
metals
 Cutting
the cost
 Increasin
g
productiv
ity and
demand
Figure 1: Business model canvas
Source: (created by author)
The above figure represents a business model canvas of the mining industry of Australia
(Dudin et. al 2015). It depicts the credentials that are crucial for the business. A company or the
industry plans a new technology or methods to incorporate or just modify the existing methods
through the process. Various credentials of a business are measured through this model such as
the infrastructure of a business by analyzing its key activities, resources and partner network.
The key activities of the mining industry are stated above such as mining, researching and
developing. Further the other factors of infrastructure has also been analyzed under this canvas.
The business model canvas is drawn to assist augmented reality and Virtual reality to incorporate
in the business system. Depending on the business situations, key partners, technology and
customer need the company can modify it via augmented reality in which it can induce digital
innovation on the existing technology (Wu et. al 2013). The customer relationship management
(CRM) can also be developed easily using augmented reality technique (Barfield 2015). Thus,

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augmented reality can solve the problems of mining industry such as unskilled workers, pricing
problem, reduction of risk, distribution channels and reduction of mining cost.
Technology analysis
Technology is yet another important factor in a mining industry ecaus eut is through good
technology the industry can carry out its mining activities actively and safely by offering a risk
free environment to the workers. Moreover, the technology also helps the industry to offer its
products to the customers through multichannel system. In technology, too the industry can
induce augmented reality by imposing digital information over the existing distribution channel
and manufacturing methods (Biocca and Levy 2013). In developing the technology the industry
must first need to analyze the promise gap visible between the employee and the company and
customers and the company. Any gap between them will not allow the industry to take up
successful innovations. The company can use augmented reality in their data mining activities
for effective CRM and share message with the employees about the complexities of the machines
used. This will help them reduce the promise gap available between them. Data mining process
can be conducted by forming a database where the company can modify their supply according
to the needs of the customers. The employees can also be trained via presentation about the use
of machineries. Thus, the industry will turn the complexities of the real world into a virtual one.
Moreover, virtual reality can also be used by the industry to show the customers the structure of
the metal that they will be getting (Earnshaw 2014). They can present the metal design and forms
in a digital framework and show it to the customers. By doing this the company will bring a false
world into a real one. Both can be done by imposing virtual world about the metal.

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Figure 2: promise Gap
Source: (Evans 2016)
Alignment of business model
The main customer segment of the mining industry is the industrial customers that
manufacture things from those metals such the jewelry makers, construction businessmen and
the government (Kilara and Rhyne 2014). Thus, it can be seen that the customers of the industry
are mainly premium and big customers. The industry targets the niche customer base that earn
huge amount of revenue for the industry. The industry targets such customers because the
products that it produces through the mining activities are valuable for such customers. They are
usually big businessmen and invest a lot on these metal to increase their revenue (Muhtaroglu et.
al 2013).
The customers of the industry have to pass through a series of channel to get the product.
The channel can be Omni channel or multi channel distribution. Thus, the experience the

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1 2
3 4
a b
c
Manufacturer
Agents
Retailer
customers
Manufacturer
Online
customers
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customer gets from buying the products of the industry can make them feel positive, negative or
neutral about the mining industry. Thus, a gap arises if the industry fails to achieve the targeted
impression on the customer. The customer journey of a mining industry is the agents,
distributors, retailers and the online portals. Thus, the industry has to make sure the experience of
the customer is positive in all these stages. The company can use the online channel to distribute
their products, which will reduce the chance of failure in increasing value proportion.
Figure 3: Distribution channel
Source: (Creation of the author)
Recommendation
Analyzing the business model canvas and the technology and customer trend of the mining
industry it can be recommended that (Joyce. and Paquin 2016):

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 The industry can use augmented reality in their technology sector such as maintain the
data base the modeling the customer needs
 It can use augmented reality in training the complexities and risk in using the machineries
in the mining sites
 It can use Omni channel system reduce the complexities in the distribution channel and
make the journey easy for the customers
 Modify the cost structure of the company to increase profit
 To offer a safe environment to the workers and the economy it is operating by sustainable
development of technology
Conclusion
Thus from the above analysis it can be deduced that the company can benefit a lot from
the business model canvas. The business model canvas presented above about the mining
industry of Australia shows the key partners, value proportion, technology, customer segment
and other important factors. It is through these factors the industry can incorporate the
augmented reality and virtual reality concepts. This will help the company to reduce the gap that
occurs between the industry and its customers and employee. This will also help the company
reduce its cost structure and maintain high profit margin in future. Further, the company to solve
all its issues can also effectively use the concept of virtual reality and augmented reality.

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References
Barfield, W. ed., 2015. Fundamentals of wearable computers and augmented reality. CRC Press.
Biocca, F. and Levy, M.R. eds., 2013. Communication in the age of virtual reality. Routledge.
Dudin, M.N., Kucuri, G.N., Fedorova, I.J.E., Dzusova, S.S. and Namitulina, A.Z., 2015. The
innovative business model canvas in the system of effective budgeting.
Earnshaw, R.A. ed., 2014. Virtual reality systems. Academic press.
Evans, H 2016, Experience Architecture: Testing the limits of Design Thinking, [Web],
FromHereOn, USA, http://www.fromhereon.com/resources/experience-architecture-whitepaper.
Ivanova, G., 2014. The mining industry in Queensland, Australia: Some regional development
issues. Resources Policy, 39, pp.101-114.
Joyce, A. and Paquin, R.L., 2016. The triple layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production, 135, pp.1474-1486.
Kilara, T. and Rhyne, E., 2014. Customer-Centricity for Financial Inclusion.
Muhtaroglu, F.C.P., Demir, S., Obali, M. and Girgin, C., 2013, October. Business model canvas
perspective on big data applications. In Big Data, 2013 IEEE International Conference on (pp.
32-37). IEEE.

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Wu, H.K., Lee, S.W.Y., Chang, H.Y. and Liang, J.C., 2013. Current status, opportunities and
challenges of augmented reality in education. Computers & Education, 62, pp.41-49.