Mining Software Business Plan Leave a comment

PT. Rekayasa Tambang Indonesia, a subsidiary of Mining Software Development and Technical Assistance, meets the needs #8211 private and public-owned mining companies in nearly every sphere of mine design and engineering, geological interpretation and modeling, and improving mining productivity. RTI is the subsidiary company of Mining Engineering Software Development and Technical Assistance in the United States (MINER DELTA). This U.S. software maker provides software that can be used for full-service mining engineering and interpretation. RTI offers both managerial and technical assistance and software that can solve complex geological and modeling problems, mine design, mine optimization, and dump design and reconstruction in Indonesia and Southeast Asia Region.

The products

RTI will be offering five distinct products and services. First, geological interpretation and modeling systems. This product and services provides the most extensive geological database, innovative interpret tools, advanced modeling techniques, resource reporting, and resource reporting for almost all types of deposits. They include simple, stratiform, massive, and simple deposits as well as complex, highly deformed ore body. Mine design and engineering software systems will also be offered in addition to mining optimization and scheduling software systems. The dump design and rehabilitation program will also perform analyses regarding environmental impact. This includes designing dump dumps, designing acid drainage, designing groundwater drainage, and environmental rehab.

The Market

Over the past five year, the market value for open-pit, underground, and mining software technologies has increased an average of 22%. Indonesia has no local software manufacturer for engineering software. Therefore, 100% of the open pit, underground and mine mining engineering and geological technology in Indonesian mining industries is imported. The sum of all imports of mining technologies was $75 million last fiscal year. This was 23.7% higher that the $60.6m imports in previous years, which were then 26.3% lower than the $48million imports.

Competitive Advantages

The key factors for RTI to create and maintain competitive advantages includes its access to intangible capital (business networks, leadership, talent, entrepreneurs, intellectual property and brand) and advanced technology. These two advantages are interrelated. This is because the organization has taken control of intellectual capital. RTI has taken great care to ensure that the system captures the human capital created by its members. This is a great advantage, as even though some employees leave and go to other companies, RTI captures their knowledge and allows them to be leveraged by current employees. This intellectual capital capture then fuels the advanced technology.

RTI is a new company that combines the best of both software and consulting to serve the mining industry. RTI expects strong revenue growth for year one. This trend will continue through year five. RTI expects high gross margins and an increase in net profits each year.

1.1 Mission

RTI’s mission is to be a strong presence in Indonesia in order to implement the MINER DELTA mission statements. It has the specific mission to become the most trusted mining and geology software provider in Indonesia and to provide consulting services. RTI will create customer value by facilitating efficient and optimal operations through the use of image analysis. RTI, as the commercial arm to the MINER DELTA is expected to establish a reputation in mining for providing outstanding consulting services that exceed customer expectations.

1.2 Objectives

Here are the financial and marketing goals of RTI.

1. Healthy sales in the first year, growing steadily through by the fifth year of plan implementation.
2. Average gross margin percent of sales income for the top drawer.
3. Each year, net earnings improve.

These financial goals are transformed into marketing objectives. If the company wants to earn its targets for gross margin and sales revenue, then it must set a high average profit margin on sales.

To achieve these targets, the company will have to set certain goals for customer awareness such as by proactively approaching the prospective client candidates, teaming-up with other technology providers (hardware manufacturers and platform developers), partnering with reputable local and regional mining contractors, and equipment suppliers to reduce competition, improve pricing as well as reducing risks.

So, the marketing goal might be:

• Achieve targeted sales revenue each year for the next five years.
• Increase customer awareness during planning.
• Partnering with reliable local and regional miners and equipment suppliers will reduce competition and lower risk.

1.3 Keys to Success

RTI’s ability to access intangible capital (leadership, talent, entrepreneurs and intellectual property) and advanced technology are key to creating a competitive advantage.

In addition to intangible capital, RTI has a technological advantage with its advanced mining design, scheduling, and geological interpretation programs. Software performance can be measured by the accuracy with which it calculates and generates visibility plots. RTI excels at other qualitative measures like flexibility and ease of usage. RTI will concentrate on improving and refining its system in future software releases to ensure a sustainable competitive advantage. RTI will continue research into image analysis.

RTI is able to use its combination of technology and human resource to achieve its goal of being a customer-driven business. Each system will be designed and installed by qualified personnel. This personal service onlyis available from RTI. The system’s ability to function in a “turn key” fashion is highly valued by its target market. RTI and customers have a close personal relationship that is essential to its mission of ‘#8220’ exceeding customer expectations through exceptional consultative service.

In order to effectively operate in this fashion, RTI’s location in Jakarta situates it close to the core of its target market. RTI’s distribution of products and services is further supported by its locations in Indonesia’s major mining provinces (East Kalimantan South Kalimantan South Sumatra Central Sulawesi). Travel costs will be lower for sales demonstrations, installation, design, maintenance, and service. Distributor cost advantages will increase as unit sales grow. This will result in tangible cost competitive benefits. Being close to our customers will provide many intangible benefits: it will help consulting efforts and it will aid in our quest to be customer and market driven, rather than just a branch office, or even a representative of any software manufacturer or foreign consulting firm.

In a typical mine, the most important link in its value chain is clearly the primary activity of operations, to produce more product for a cheaper price. RTI adds value and benefits to its customers through focusing on the primary activity of operations in their customer’s value-chain. RTI’s systems for clients are a quality assurance activity that monitors and guides operations to improve their customer’s operational performance.