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.
Internet of Things (IoT): IoT devices, when integrated with EAM procedures, can provide continuous visibility into asset health. They transmit real-time data, enabling enhanced predictive maintenance strategies and reducing unplanned downtime.
Artificial Intelligence (AI) and Machine Learning: Coupled with IoT data, AI and machine learning algorithms enable predictive analytics, helping to anticipate asset failures and schedule preventive maintenance tasks effectively, thereby extending asset life and reducing operating costs.
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:
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.
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.
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.
CUSTOMER TESTIMONIALS
"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
"I like your product. I'm frequently designing PowerPoint presentations for my company and your product has given me so many great ideas on the use of charts, layouts, tools, and frameworks. I really think the templates are a valuable asset to the job."
– Roberto Fuentes Martinez, Senior Executive Director at Technology Transformation Advisory
"As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for the customer, Flevy and the various authors. This is truly a service that benefits the consulting industry and associated clients. Thanks for providing this service. "
– Jim Schoen, Principal at FRC Group
"Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."
– Chris McCann, Founder at Resilient.World
"As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.
Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I have been able to exceed expectations and deliver quality advice and solutions to my clients. The quality and expertise of the authors are exemplary and gives me great confidence to use as part of my service offerings.
I highly recommend this company for any consultant wanting to apply international best practice standards in their service offerings. "
– Nishi Singh, Strategist and MD at NSP Consultants
"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact that it is not at all just a repository of documents/resources but, in the way that David and his team manage the firm, it is like dealing with consultants always ready to assist, advise and direct you to what you really need, and they always get it right.
I am an international hospitality accomplished senior executive who has worked and lived during the past 35 years in 23 countries in 5 continents and I can humbly say that I know what customer service is, trust me.
Aside from the great and professional service that Flevy's team provide, their wide variety of material is of utmost great quality, professionally put together and most current.
Well done Flevy, keep up the great work and I look forward to continue working with you in the future and to recommend you to a variety of colleagues around the world."
– Roberto Pelliccia, Senior Executive in International Hospitality
"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."
– Michael Evans, Managing Director at Newport LLC
"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."
– David Harris, Managing Director at Futures Strategy
SELECT CUSTOMERS
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.
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.
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.