Enterprise Asset Management (EAM) Strategy: The Road to Managing Huge Investments in Assets

Editor's Note: Take a look at our featured best practice, Enterprise Asset Management (EAM) Strategy (24-slide PowerPoint presentation). Companies in asset-intensive industries have long sought to manage huge investments in assets more effectively. Yet, after significant investment of time and money in formal Asset Management programs, this often fall short of delivering the promised benefits of more reliable assets, lower costs, [read more]

* * * *

Companies in asset-intensive industries have long sought to manage huge investments in assets more effectively. Yet, after a significant investment of time and money in formal asset management programs, this often falls short of delivering the promised benefits of more reliable assets, lower costs, and improved safety. Too often, executives are not sure why the benefits have not materialized.

Companies often concentrate their efforts on technology upgrading without addressing underlying problems. The latest technology solution will never enable companies to manage assets effectively. Often, companies are faced with multiple challenges leading to programs not meeting expectations. There Is poor EAM strategy development, inadequate stakeholder management, poor processes and procedures, insufficient change management and training, a problem with data management and insufficient integration with the supply chain.

Addressing these challenges requires a successful EAM Program that must begin with the right strategy for managing assets. It should then focus on the people, processes, and technology to carry it out.

What is Enterprise Asset Management Strategy?

Enterprise Asset Management (EAM) is the set of integrated processes and tools for managing and maintaining operational assets at the target service level while optimizing life-cycle costs and asset life. The EAM strategy ensures validation of business processes and making best-value choices in tools and technologies.

With EAM, companies can be assured of sizable long-term cost savings as a result of effective operations management and improved financial tracking. Most effectively, it allows better response time to meet service and regulatory requirements.

The EAM Strategy determines how the team managing the assets will functions, what processes are needed, and what IT systems are required. These investment decisions should be supported by 6 cost-related components.

The 6 Core Components of an Enterprise Asset Management (EAM) Strategy

1.  Governance
   How do we govern and make decisions?
2. People
   What people and skills sets do we need to execute our capabilities?
3.  Organization
   How do we organize the company?
4. Performance Management
   How do we measure organizational and individual performance?
5. Technology
   What technology do we need to enable the efficient execution of our capabilities?
6.  Processes
   What processes and services do we provide?

Designing an EAM Strategy requires creating a Target Operating Model that addresses key aspects of the EAM Program. The Target Operating Model must look at the 6 Core Components of the EAM Strategy. Integrating them together leads to the delivery of a holistic approach to Enterprise Asset Management (EAM).

With the explosive growth of high-quality mobile capabilities, a successful EAM program can leverage technologies to manage assets more efficiently and expand further. Companies can leverage resources to meet increasing demand with its EAM Strategy – a strategy that directs the asset management transformation of the company to a high level of performance where competitive advantage is gained.

Interested in gaining more understanding of Enterprise Asset Management (EAM) Strategy? You can learn more and download an editable PowerPoint about Enterprise Asset Management (EAM) Strategy here on the Flevy documents marketplace.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:

“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”

– Bill Branson, Founder at Strategic Business Architects

“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant’s toolbox.”

– Michael Duff, Managing Director at Change Strategy (UK)

“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”

– Roderick Cameron, Founding Partner at SGFE Ltd

“Several times a month, I browse FlevyPro for presentations relevant to the job challenge I have (I am a consultant). When the subject requires it, I explore further and buy from the Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and applicable ideas for my work; and, of course, all this translates to my and my clients’ benefits.”

– Omar Hernán Montes Parra, CEO at Quantum SFE

Do You Want to Implement Business Best Practices?

You can download in-depth presentations on EAM and 100s of management topics from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.

For even more best practices available on Flevy, have a look at our top 100 lists:

• Top 100 in Strategy & Transformation
• Top 100 in Digital Transformation
• Top 100 in Operational Excellence
• Top 100 in Organization & Change
• Top 100 Management Consulting Frameworks

These best practices are of the same as those leveraged by top-tier management consulting firms, like McKinsey, BCG, Bain, and Accenture. Improve the growth and efficiency of your organization by utilizing these best practice frameworks, templates, and tools. Most were developed by seasoned executives and consultants with over 20+ years of experience.