Whitehaven Coal Establishes New IT Infrastructure at Two Mines Within Just Six Months
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Whitehaven Coal’s Swift IT Overhaul Across Two Mines
Quick Overview:
- Whitehaven Coal effectively set up IT infrastructures for two newly obtained metallurgical coal mines within a mere six months.
- The acquisition lacked IT systems, compelling Whitehaven to create everything from the ground up.
- DXC Technology and SAP were instrumental in the process, with a collaborative effort of approximately 400 professionals involved.
- The initial phase emphasized essential systems including payroll, HR, finance, and procurement, which were activated on April 2.
- Business continuity planning (BCP) was a significant consideration, ensuring alternate solutions were available if main systems encountered issues.
- Whitehaven is now advancing into the second phase of the initiative, further enhancing their IT system capabilities.
The Challenge: Developing IT Systems from Ground Zero
In early 2023, Whitehaven Coal purchased two prominent metallurgical coal mines—Blackwater and Daunia—from BHP-Mitsubishi Alliance (BMA) in Queensland. The agreement, finalized on April 2, mandated Whitehaven to set up completely new IT systems for the mines within a strict six-month limit.
What intensified the challenge was the absence of any existing IT frameworks in the acquisition. This situation required Whitehaven to commence from scratch, constructing everything from network setups to an ERP system, all while ensuring a seamless transition for hundreds of employees moving from BHP.
Collaboration with DXC Technology and SAP
To tackle this pressing timeline, Whitehaven collaborated with DXC Technology and SAP to lay a solid digital groundwork. DXC contributed about 300 specialists to the initiative, while SAP added another 100, acting as extensions of the Whitehaven IT workforce.
The core IT architecture was based on SAP’s RISE with SAP S/4HANA Cloud, a comprehensive ERP solution designed to streamline crucial functions like payroll, HR, finance, and procurement. This cloud-based system was selected to facilitate scalability and fast deployment, critical given the six-month deadline.
The project was divided into several phases or “releases,” focusing initially on essential systems to simplify the process. The first release, launched on April 2, encompassed vital functions like payroll, financial management, and procurement, ensuring uninterrupted business operations.
Managing Tight Timelines
As noted by Whitehaven’s Chief Information Officer, Nick Zafiris, the stringent deadline was both advantageous and challenging. The fixed April 2 deadline pushed the team to concentrate on delivering “good enough” solutions swiftly rather than striving for flawlessness.
“ERP transformations are often met with skepticism about making them work within the timeline,” Zafiris commented at the SAP NOW A/NZ conference. Despite the intense pressure, the team succeeded in achieving all the major milestones, demonstrating that significant IT transformations can indeed be completed rapidly.
Business Continuity Planning (BCP): Always Have a Backup Plan
A crucial aspect of Whitehaven’s achievement was the strong focus on business continuity planning (BCP). Zafiris and his team ensured that alternative solutions—known as ‘Plan Bs’—were ready to deploy if any critical systems were unable to launch on schedule.
For instance, on April 2, Whitehaven’s network wasn’t fully operational. As a contingency, employees accessed the SAP system via the internet, circumventing the ongoing setup of the internal wide-area network (WAN). This backup plan functioned as a temporary fix for three weeks until the WAN was fully operational.
This comprehensive planning afforded Whitehaven the assurance that they could manage unforeseen challenges without interrupting critical operations, including the payment of staff and suppliers.
Looking Ahead: Phase Two of the IT Build
With the initial phase of the IT transformation accomplished, Whitehaven has embarked on the second phase of the project. While specifics of this phase are still under wraps, it is anticipated to broaden the functionality of the SAP system, possibly incorporating advanced features for maintenance planning and other operational improvements.
Additionally, a remote operations center has been set up in Whitehaven’s Queensland office as a pivotal element of the new infrastructure. This center will enable greater efficiency in overseeing both of the newly acquired metallurgical coal mines.
Summary
Whitehaven Coal’s acquisition of the Blackwater and Daunia mines presented a considerable IT challenge, requiring the company to create a fresh technology environment in just six months. With the assistance of DXC Technology and SAP, Whitehaven successfully activated critical systems on April 2, ensuring uninterrupted operations for both mines. The project’s success was chiefly attributed to careful business continuity planning and the effective implementation of ‘Plan Bs’. As Whitehaven transitions into the second phase of this transformation, it is poised to enhance its operational capabilities further.
Q&A
Q: Why was there a need for Whitehaven Coal to develop new IT systems for the mines?
A:
The transaction from BHP-Mitsubishi Alliance did not have any existing IT systems included, necessitating that Whitehaven create new systems from scratch to handle everyday operations.
Q: What was the contribution of DXC Technology and SAP to the project?
A:
DXC Technology and SAP acted as essential partners, combining forces to bring in a team of about 400 professionals. DXC assisted in implementing the SAP platform, while SAP offered the cloud-based ERP solution (RISE with SAP S/4HANA Cloud) to administer critical functions like payroll, HR, finance, and procurement.
Q: How did Whitehaven maintain business continuity during the transition period?
A:
Whitehaven prioritized business continuity planning (BCP), making certain that backup solutions (‘Plan Bs’) were ready to be deployed if critical systems fell short. For example, employees could reach SAP online while the internal network was still under construction.
Q: What elements were part of the first phase of the IT setup?
A:
The initial phase that launched on April 2 included essential systems like payroll, HR, finance, procurement, and maintenance planning. These functionalities were crucial for the seamless operation of the mines amid the transition.
Q: What are the upcoming plans for Whitehaven’s IT systems?
A:
Whitehaven has entered the second phase of the project, which will enhance the functionality of their SAP system. While specific strategies have not been revealed, this phase is likely to focus on integrating more sophisticated features to bolster mine operations.
Q: How did Whitehaven prepare for potential delays or challenges?
A:
Whitehaven established multiple contingency plans (‘Plan Bs’). For instance, when the network was incomplete on April 2, employees accessed SAP via the internet. These backup plans allowed the mines to maintain operations without significant disruptions.
Q: Why is metallurgical coal important for Whitehaven?
A:
Metallurgical coal is crucial for steel production, making it extremely valuable. Whitehaven also manages thermal coal mines, which are mainly used in electricity generation.
