PT. Rekayasa Tambang Indonesia (RTI) meets the needs of clients – private and government-owned mining companies – in virtually every sphere of geological interpretation and modeling, mine design and engineering, and mining productivity improvement activities. RTI is a subsidiary of Mining Engineering Software Development and Technical Assistance, a U.S. software company that provides software for full-service mine design and interpretation. It also offers the managerial and technical resources necessary to solve complex geological interpretation and modeling as well as mine design, mining optimization and mine scheduling.
The Products
RTI will offer five different products and services. The first product is geological modeling and interpretation software systems. This product and service provides the most comprehensive geological database, innovative interpretation tools, advanced modeling techniques and resource reporting for most types of deposits ranging from simple vein, stratiform, and massive deposits, to complex and highly deformed ore bodies. Mine design and engineering software systems will also be offered in addition to mining optimization and scheduling software systems. Lastly, dump design and rehabilitation will perform analysis regarding environmental impact, designing mine waste dump, designing acid drainage, designing ground water drainage, and environmental rehabilitation.
The Market
Over the past five years, the average market value of open-pit, underground and quarried mining software technologies has increased at a rate 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 total imports of mining technology technologies amounted to $75 million in 2013, 23.7% more than the previous year’s $60.6 million levels, which were 26.3% higher than the $48 million imports.
Competitive Advantages
RTI can create and sustain competitive advantages by having access to intangible cash (leadership, talent entrepreneurs, intellectual and property, brand), and advanced technology. These two advantages are interrelated. Intangible capital is the intellectual capital that an organization has captured. RTI has worked hard to create systems that capture the human capital developed by its members. This is a significant advantage as it captures the knowledge of employees, even if they leave to start new jobs. This intellectual capital then fuels the advanced technologies.
RTI, a dynamic company, combines innovative technology in the form software and consulting services to the mining industry. RTI projects strong revenue for year 1, with steady growth in year five. With gross margins at a high percentage of sales, net profits will improve each year.
1.1 Mission
RTI has the mission to create a strong presence and implement all provisions in the MINER DELTA Mission Statement. The specific mission is to be the top mining and geoology software and consulting service provider in Indonesia. By facilitating efficient and optimized operations using the most advanced techniques for image analysis, RTI will add value to customers. Also, as the commercial arm of the MINER DELTA, RTI will establish a reputation in the mining industry for exceeding customer expectations through exemplary consultative service.
1.2 Objectives
Here are the financial and marketing goals of RTI.
- A healthy year for sales and steady growth through the fifth.
- Average gross margin percent of sales revenue for top drawers is the highest.
- Net income consistently improving each year.
The financial objectives are converted into marketing objectives. The company must have a high average profit margin in order to meet its sales and gross margin targets.
To meet these goals, the company needs to be proactive in approaching potential candidates. They will also need to team-up with other technology suppliers (hardware manufacturers, platform developers), partner with trusted local and regional mining contractors.
This could be the marketing objective.
- For the next five year, target sales revenue.
- Ensure that customers are aware of the plan throughout the planning period.
- Partnering with reliable local and regional miners and equipment suppliers will reduce competition and lower risk.
1.3 Keys for Success
RTI is able to gain a competitive advantage by accessing intangible capital, such as leadership, talent and entrepreneurs, advanced technology and the ability to personalize its location.
RTI is able to provide intangible capital as well as technological advantages through its advanced mining design, scheduling and geological interpretation programs. The software’s ability to calculate and produce visibility plots is a measure of its performance. RTI excels in other qualitative measures such as ease-of-use and flexibility. RTI will concentrate on improving and refining its system in future software releases to ensure a sustainable competitive advantage. RTI will continue its research on image analysis.
RTI’s combination of advanced technology and human resources allows it to be a customer-driven company. Each system will be individually designed and installed by trained personnel. This personalized service onlyavailable through RTI. Its ability operate in a “:turn key” fashion is highly prized in its target markets. RTI relies on close customer relationships to fulfill its mission, which is to i>exceed customer expectations through exceptional consultative support.
RTI’’s Jakarta-based location makes it easy to reach the target market. Further, RTI’s product and services distribution is aided by the locations in the major mining provinces in Indonesia (East Kalimantan, South Kalimantan, South Sumatra, Central Sulawesi). Sales demonstrations, installation and design, service, and maintenance will all be subject to a lower travel cost. The distribution cost benefits will become tangible cost competitive advantages as unit sales rise. Many intangible benefits will result from being close to our customers. This will assist in consulting efforts and in our quest towards being customer and market driven.
A typical mine’s primary activity is operations. It allows for more product to be produced at a lower cost. RTI delivers value to its customers by focusing on this activity within its customer’s value chain. RTI creates systems for its clients that provide quality assurance activities and guide its customers in improving their operational performance.