P5 New Product Development

This essay analyzes the impact of new product development on Anglo American, a leading mining company. It explores how technological advancements, including AI and automation, are transforming the mining sector, leading to increased efficiency, reduced costs, and improved safety. The essay also discusses the challenges and opportunities associated with innovation in the mining industry.

P5 New Product
Development

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................2

INTRODUCTION
Anglo American a UK based public limited company which operates internationally with
mines in Africa, Canada, Europe, South America, Australia and Asia is a one among the leading
companies engaged in mining activities of primary sector. It is also involved in the exploration,
extraction and processing of minerals and metals. This organization provides employment to
nearly 76% of African people and is also a major employer in Europe.
MAIN BODY
New technology development in the mining sector of Anglo American improves the
process of mining activities. The advancement of latest technologies increases the operational
efficiency (Cousins and et.al., 2011). As in all sectors optimal use of data in mining provides a
platform for innovative management platforms creating ways to manage, store and make sense of
mining data. Use of Artificial Intelligence (AI) and machine learning applications are used for
analysing the crucial data and pick up patterns which renders better planning and resource
management. This advancement of IT reduces the costs involved in mining process of Anglo
American by the implementation of innovative satellite and imaging technology without the need
for cost intensive exploration. Sustainability can be achieved by the use of current technological
developments and is also a destructive process if not managed properly. This advancement also
helps Anglo American to ensure safety by the use of advanced monitoring technologies which
can assess quality of air and risk of fire and explosion.
The new techniques and changes in mining will disrupt the existing business models and
traditional roles or relationships among mining companies, suppliers, competitors and customers.
Digital and biological technologies are enabling Anglo American to operate efficiently and faster
thereby reducing environmental issues. Rapid advances in technology innovation, including
automation, digitization and electrification has a fundamental impact on this industry. Few
technologies reshapes the sector through autonomous vehicles, drilling and tunnel boring
systems, drones and smart sensors. The drivers of the this shift towards innovation integration in
mining are quite well known (Hoyer and et.al., 2010Wheelwright, 2010). These automated
technologies allows companies in removal of staff from dangerous working conditions. For
companies operating in remote areas with high fuel costs are substantially gaining efficiency and
productivity through technological advancements.
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The costs of such technology is falling at times giving Anglo American opportunities to reduce
and manage their operational costs in the volatile market. The research and development process
are affected by a number of factors. One of the influencing factor is cost as research being an
expensive activity introduction of new technology is expensive. It is also important that primary
organisations responsibly develop their businesses.
CONCLUSION
The mining sector needs to adopt innovation for remaining competitive. Integration of
technological innovation into its practices can result in reduced costs, increased productivity and
safety for the sector. As Anglo American is not the only mining company in the world
competition is high and to resist it they need to take into account the actions of competitors. To
maintain the market position Anglo American must constantly develop new processes and
products. It is depended on ideas, research, alternatives to existing technologies and introduction
of new ones.
REFERENCES
Books and journals
Cousins, P.D., Lawson, B., Petersen, K.J. and Handfield, R.B., 2011. Breakthrough scanning,
supplier knowledge exchange, and new product development performance. Journal of
Product Innovation Management, 28(6), pp.930-942.
Hoyer, W.D., Chandy, R., Dorotic, M., Krafft, M. and Singh, S.S., 2010. Consumer cocreation in
new product development. Journal of service research, 13(3), pp.283-296.
Wheelwright, S.C., 2010. Managing new product and process development: text cases. Simon
and Schuster.
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Cousins and et.al., 2011Hoyer and et.al., 2010Wheelwright, 2010
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