Companies have been advised to join the digital revolution, as innovations and technology start to change the nature of jobs and work in the rail and other industries.

Siemens Mining and Freight Solutions global head Thomas Bieg on Wednesday said there would be huge demand for people with skills in new fields, such as algorithm developers and drone pilots in future.

He also saw great opportunities to improve efficiencies through digitalisation in industry.

He told delegates at the International Heavy Haul Association (IHHA) Conference, in Cape Town, that he was impressed with Australia, which was at the forefront of the industrial revolution in the heavy haul industry.

A reduction in commodity prices has propelled Australian companies to increase efficiency and cut costs, while Rio Tinto is working towards driverless trains in its iron-ore operations in Pilbara.

Wits Business School Professor in the Chair of Digital Business Brian Armstrong, meanwhile, told delegates that deep-level robotic mining would make new mines viable.

“Getting the heavy stuff from A to B will persist, but the industry will be disrupted in the way we access that product.”

Former Canadian Pacific GM Michael Roney said he anticipated increasing roles for electronics technicians, computer technicians and data-based people in the rail industry.

“The best thing we can do is to ensure that all our people have access to technical education.”

He said the digital shift had also led to companies finding ways to cut costs.

“There will be a continual reduction in unit costs to stay viable. We see digital railway as a way of getting there,” said Roney.

Evert de Ruiter, representing GE Transportation Digital Solutions, said universities would need to adapt to teaching students who are keen to move into the digital space. He also noticed a sharp shift towards smart manufacturing and smart materials, particularly in the automotive industry, where cars weight up to 30% less than they did 20 years ago.

Transnet digital business manager Mandla Mkhwanazi said three-dimensional printing is likely to change the nature of freight, while innovations in technology could make rail transport safer.

He also urged companies to rely more on young people, as they often had more efficient and quicker ways of doing things and were far more plugged into the digital revolution.

Armstrong said this was not necessarily always the case.

“The myth at the moment is that if we flood our organisations with enough Millennials and ponytails, we will be okay. That is a necessary condition for success, but is not the only one. The CEO of Google was 62 when he grew the company, the CEO of Microsoft is 58 and the guy who created Alibaba is 52.”

Mark Raskino, analyst and Gartner Fellow in the CEO and Digital Business Leadership research team, urged companies to hire experts in digital change and suggested that at least one board member in a company board should have a background in technology.

“You are increasingly seeing boards that are hiring technology executives. Executives are beginning to realise that they can’t guide the future of the industry unless they understand it themselves.”

Raskino said about 30% to 40% of companies were progressive and had seen the need to hire a chief digital officer or strategist in digital change. 

“Tesco has taken online groceries on a massive scale ahead of anyone else in the world. In the car industry, Volvo is committing harder than others to specific objectives about electrification and digitisation.”

Other companies have been catapulted into changing. 

“Over the past few weeks, Whole Foods in the US, has had prices halved in a very aggressive way, to take a big chunk of the online grocery market in the US. That’s because they were acquired by Amazon.

“In many areas in retail, we’re seeing that if you don’t take the opportunity to serve your companies better, a new generation of digital entrepreneurs will take that opportunity from you.”