Authors: D. Clarry, L. Mottola, and K. Ruffo
CIM Bulleting, June 2000
Abstract
E-business has received tremendous press coverage over the past year; pundits have made broad
predictions of how it will revolutionize the way businesses interact with their customers and with other businesses, as well as creating new ways for business to add economic value. To-date Internet
technologies have had the most impact on industries that have traditionally led in the adoption of new
technology such as aerospace, automotive, and computing. In mining and metals applications to date
have centred on metals exchanges for matching buyers and sellers for marketplace efficiencies. While the complete impact of the e-commerce revolution is still very unclear, we believe that companies must begin thinking through their e-business strategy. Businesses that do not prepare may forfeit certain competitive positions or fail to capitalize on significant opportunities.
In this paper we begin to create a business model for mining and metals in the context of e-business. In particular, we investigate how the perspective of the facility owner or operator can influence the
approach. A physical asset proprietor perspective lends itself to a cost leadership strategy; a perspective of managing core competencies within a business opens other strategies.