In the words of Sundar Pichai, CEO of Google and Alphabet, "Just as you would not normally leave your front door open without some level of protection, companies shouldn't either." This encapsulates the importance of Enterprise Asset Management (EAM)—a systematic approach to the governance and realization of value from the assets, both physical and digital, owned by an organization. If you're a C-level executive at a Fortune 500 company, understanding and effectively implementing EAM practices is integral to Strategic Planning, Operational Excellence, and Risk Management in your organizations.

For effective implementation, take a look at these EAM best practices:

• Asset Management - Implementation Toolkit (Excel workbook and supporting ZIP)
• ISO 55001:2014 (Asset Management) Awareness Training (60-slide PowerPoint deck)
• Enterprise Asset Management (EAM) Strategy (24-slide PowerPoint deck)
• Enterprise Asset Management (EAM) Implementation (27-slide PowerPoint deck)
• ISO 19770 - Implementation Toolkit (Excel workbook and supporting ZIP)

Understanding Enterprise Asset Management (EAM)

It was once said that knowledge is power. In the modern era of digital transformation, knowledge has indeed become tangible—embodied in data and the digital assets of an enterprise. But with power comes responsibility—the responsibility to manage, protect, and optimize these assets. EAM is the solution that rises to meet this responsibility.

EAM is a strategic approach to managing an organization's physical and digital assets over their entire lifecycle—from acquisition to utilization, maintenance, and eventually disposition. It encompasses everything from real estate, machinery, and vehicles, to software, data and intellectual property. EAM is an essential aspect of an organization's Performance Management, enabling executives to have a holistic view of their assets, thereby making informed decisions that maximize value while minimizing risk and cost.

Explore related management topics: Digital Transformation Real Estate Performance Management

Best Practices in EAM

1. Adopt a Lifecycle Approach: An effective EAM strategy views assets not as standalone entities, but as parts of a larger ecosystem that evolve over time. This involves tracking asset performance, predicting faults, scheduling maintenance, and evaluating when to retire and replace assets.
2. Implement Effective Data Management: Digital assets, particularly data, are increasingly important in the modern business landscape. Proper data management techniques such as schema mapping, data lineage tracing, and quality control are vital for maintaining the integrity, relevance, and value of these assets.
3. Align EAM Strategy with Business Objectives: EAM is more than an operational task—it's a strategic endeavor. The EAM strategy should be in harmony with the company's overall goals and objectives. This alignment ensures efficient utilization of resources, promotes Operational Excellence, and supports overarching strategic direction.

Explore related management topics: Data Management Quality Control

Key Principles Guiding EAM

• Risk Management: EAM should actively mitigate both physical risks (e.g., asset failure) and digital risks (e.g., data breaches). This is accomplished through proactive maintenance, vulnerability assessments, enforced access controls, and robust disaster recovery plans.
• Value Optimization: EAM is not just about preserving assets—it’s about maximizing their value. Asset utilization should be optimized to contribute to the organization's bottom line as directly as possible.
• Information-Driven Decisions: EAM strategies should leverage data for decision-making. Analytics and reporting tools are essential for providing insights into the performance of assets and their contribution to organizational outcomes.

Explore related management topics: Disaster Recovery

Leading the Pack with EAM

Executives who understand and effectively deploy EAM have the necessary tools to lead any organization towards growth and success. By adhering to best practices and fundamental principles, EAM becomes a driver of Strategic Planning, Digital Transformation, and Performance Management across the organization.

With the ever-accelerating digital revolution, the importance of EAM for C-level executives cannot be overstated. It's time to embrace EAM and lead the way in the race to Operational Excellence and beyond.

Explore related management topics: Best Practices