Isamill: How to Commercialise an Innovation in Ore Extraction

This case describes the development and subsequent marketing of a new technology for the mining industry. It is presented in two parts: Case A describes the need for mining companies to be able to grind up rocks containing precious ore more finely than in the past so as to release to particles of the ore. Any such grinding technology must be energy efficient in order to make the process commercially worthwhile. The case describes the way in which the MIM Company, as it was at the time of the case, went about devising the necessary new process which resulted in a new type of mill for mining which they called the IsaMill. This was developed in partnership with another company which supplies mining equipment around the world. Once the new mill had been proven in actual operation in the field, the question then arose: how best should it be marketed? The case presents the three options that seemed open to MIM. Students have the opportunity to discuss the relative merits of each and to propose their recommendations. Case B recaps the situation and then describes what actually happened. MIM initially adopted one strategy for commercialising the new mill but subsequently found this unworkable. They found that unless they were responsible for not only selling the mill but installing it and the necessary systems and training the full potential of the mill was not realised by a customer. This could harm the reputation and future sales of the mill. They then adopted a different strategy for commercialising and marketing the mill. The cases can be used in courses in: marketing of new products; commercialisation; business strategy.