Want FREE Templates on Organization, Change, & Culture? Download our FREE compilation of 50+ slides. This is an exclusive promotion being run on LinkedIn.


In a world increasingly driven by digital commerce, savvy executives recognize the wisdom in Peter Drucker's statement, famously advised, "You can't manage what you can't measure." By this same token, organizations that fail to implement comprehensive frameworks for Enterprise Asset Management (EAM) may overlook vital aspects of operational optimization. By strategically integrating EAM into corporate procedures, companies can elevate efficiency, reduce expenses, and drive revenue growth, ultimately creating more robust financial statements and enhancing shareholder value.

Understanding Enterprise Asset Management

Enterprise Asset Management can be broadly defined as the systematic process of deploying, operating, maintaining, upgrading, and disposing of assets in a cost-effective manner. In its most optimal form, EAM intersects and optimizes various management principles, including Risk Management, Strategic Planning, Performance Management, and Operational Excellence. Focused on improving efficiency and value, EAM incorporates systems that span all types of assets—including plant infrastructure, equipment, IT hardware, and digital assets—done so with the overall business strategy in mind.

Integrating EAM with Overall Business Strategy

An effective Enterprise Asset Management strategy cannot operate in a silo. For EAM to offer maximal benefits, it needs to be seamlessly integrated with a company's corporate strategy, thereby aligning asset management with broader business objectives. This integrated approach allows for increased visibility into asset performance, enabling data-driven decision-making processes and better allocation of resources. A synchronized EAM approach also promotes Operational Excellence by creating systems that encourage accountability, proactive maintenance, and cross-department collaboration.

Adopting a Risk-based Approach

In an era of ever-evolving technologies and increasingly stringent regulations, adopting a risk-based approach to managing assets is key to ensuring business continuity. Through the effective implementation of EAM, organizations can conduct risk assessments, identify potential failures, and develop action plans to mitigate these risks. A risk-based EAM strategy can also help to eliminate unnecessary expenses, increase asset reliability, and extend asset life, thereby resulting in significant cost savings and optimized financial performance.

The Role of Technology in EAM

While the foundational principles of EAM are well-defined, technology is rapidly reshaping the execution of Enterprise Asset Management. Innovative digital tools, from IoT-enabled devices to machine learning algorithms, are automating repetitive tasks, enhancing predictive maintenance processes, and providing real-time visibility into asset health. With the rise of Industry 4.0, the integration of such digital solutions into EAM strategy is at the forefront of achieving Operational Excellence and driving competitive advantage.

Best Practices for Implementing EAM Systems

The transition towards an effective EAM system can be daunting, but adherence to a few best practices can streamline the process significantly:

  1. Strategic Alignment: As outlined earlier, the EAM strategy should align with the company's overarching business objectives. A successful EAM implementation hinges on this critical alignment, as it delivers the context and priorities for asset management.
  2. Data Quality: EAM systems rely heavily on quality data. Therefore, it is paramount to ensure data accuracy, consistency, and completeness. This directly influences the efficacy of predictive analytics and decision-making processes.
  3. Continuous Improvement: Operational Excellence in EAM is not a one-time achievement but an ongoing pursuit. Regularly reviewing and refining EAM processes, and adopting new technologies as they emerge, ensures an organization's EAM approach remains current and effective.

The importance of effective Enterprise Asset Management cannot be overstated in today's rapidly evolving business landscape. As a crucial vehicle for achieving Operational Excellence, understanding and implementing a comprehensive EAM strategy is central to enhancing overall business performance and value.


Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes across the world—in over 130 countries. Below is just a very small sample of our customer base.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Browse our Business Toolkits
to quickly find the documents you need.
Each business toolkit is a collection of documents around a common management topic.


  Show all available toolkits.

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.