Enterprise Asset Management: Understanding Its Impact on Business Performance


Asset-intensive companies continuously face the struggle of maintaining the value of all their assets. And along with it comes decisions like investments and resource allocation to maintain a seamless flow of their businesses. The common questions that such establishments typically face involves – is the current investment worth it? What is the optimal frequency of maintenance that will ensure quality? Are the assets lowering overall costs? Are they still reliable? Enterprise asset management programs bring the answers to such queries in one platform and help decision-makers to frame policies for better management of assets through their entire lifecycle. They also give the managers the desired feedback on their business processes and provide insights into potential benefits and risks.


How EAM impact business performance?

Enterprises typically have two types of assets in their hands. One, physical assets that include classes like plant and production units, infrastructure, real estate, and transportation. And two, human assets which include the complete hierarchy of employees right from the top management to grassroot-level executives. While talking about asset management, businesses have to indulge in decision making regarding both as both perspectives require value evaluation at certain levels.

The right enterprise asset management system can assist businesses with the following solutions.

·         Controlling operational risks of aging physical assets
·         Managing real-time diagnostics and analysis of all assets
·         Limiting brain drain from the organisation
·         Tackling the aging workforce and finding suitable skilled replacements
·         Optimising maintenance of all assets
·         Integrating ERP, financial and operational systems and so on.

Along with these, EAM also provides other benefits to asset-intensive organisations.

·         Reduced operational cost due to greater overall efficiency of repairs and maintenance
·         Improved compliance with ISO and other legal norms
·         Better organisational stability owing to long-term cost analysis of assets
·         High-quality products to customers due to enhanced asset performance
·         Data-based decisions in real-time which reduce deviations from the actual problem
·        Improved risk management and cost benefits owing to better collaboration between maintenance        schedule and finance

A survey published in Industry Week, conducted by A. T. Kearney showed that over 500 companies reported a 28.3% increase in their maintenance productivity when they applied computerised enterprise asset management into their businesses. The cost of materials went down by 19.4% and payback time stood at a mere 14.5 months. In fact, 75% of all businesses agree that they are willing to invest in EAM solely due to the reliability that the system offers to corporate establishments. Such is the impact of enterprise asset management.


EAM in the modern era

It is not surprising to conclude that EAM systems will soon become cloud-based, gradually moving on from on-premise platforms. The wave will hit soon, as is the case with ERP, where small and medium-scale businesses will also start tapping into the profound potential of enterprise asset management. Internet of Things is also set to revolutionise the dynamics, offering greater mobility with the help of smartphones and better analytics with instantaneous data collection. Naturally, the impact of EAM will soon spread deeper roots into the business arena.

Enterprise resource management leads to improved performance management of both physical and human assets. It heals the long-standing trouble areas of businesses. EAM is the present and the future in this ever-growing competitive market.

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