Impala Platinum has signed a ten-year agreement with EDS aimed at exploiting information technology (IT) to improve the group`s efficiency and international competitiveness. The contract is estimated to be worth at least R240 million.
Implats MD Steve Kearney said the agreement was specifically tailored to help the company move away from antiquated systems, reduce operating costs and generally improve business performance.
"It has become more apparent than ever that reliable, immediate information and effective communications can make a tremendous difference to the performance of a mining group such as Implats," he said. "We`re particularly pleased with this agreement because it focuses on what`s really important to us - not the technology itself, but the value it provides."
Implats was the first customer acquired by EDS Africa after it was formed in March 1995. Director Chris Van der Sande said it was gratifying that, after their three-year relationship, Implats had decided to upgrade their contract and extend it to 2008.
The agreement allows Implats to convert from a time-and-materials fee to a value-based charging system.
"This is a major shift in emphasis," said Van der Sande. "Previously, the traditional input-based fee put the focus on our activities and the equipment supplied. From now on the focus will be on business deliverables. EDS will be managed in terms of a set of measurable service levels, and our fee will be significantly determined by the business benefits we deliver."
Implats has embarked on a major investment programme that includes the creation of new IT networks and databases and the integration of most of the group`s business applications. One of the main goals is the ability to provide operational managers with real-time information on a daily basis.
"What started as a simple service contract has grown to more complex partnership," said Van der Sande. "As of now both of us are concerned with the strategic issues facing Implats, and EDS` success is directly linked to that of Implats.
"This is a landmark agreement that recognises how the role of IT has evolved, and the extent to which it is being used by business to add real incremental value."
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