Flevy Management Insights Q&A
What emerging trends in data analytics are shaping the future of EAM strategies?
     Joseph Robinson    |    EAM


This article provides a detailed response to: What emerging trends in data analytics are shaping the future of EAM strategies? For a comprehensive understanding of EAM, we also include relevant case studies for further reading and links to EAM best practice resources.

TLDR Emerging trends in Data Analytics, such as Advanced Analytics, Predictive Maintenance, and IoT integration, are revolutionizing EAM strategies by improving operational efficiency, reducing costs, and optimizing asset lifecycle management.

Reading time: 5 minutes

Before we begin, let's review some important management concepts, as they related to this question.

What does Advanced Analytics mean?
What does Predictive Maintenance mean?
What does Internet of Things (IoT) mean?


Enterprise Asset Management (EAM) strategies are increasingly being influenced by the rapid advancements in data analytics. These emerging trends are not only reshaping how organizations manage and maintain their assets but are also providing new avenues for enhancing operational efficiency, reducing costs, and improving overall asset lifecycle management. The integration of advanced analytics, predictive maintenance, and the Internet of Things (IoT) into EAM strategies is setting a new benchmark for asset-intensive industries.

Integration of Advanced Analytics

The application of advanced analytics in EAM strategies is enabling organizations to make more informed decisions regarding asset management. By leveraging data from various sources, including historical performance data, sensor data, and real-time monitoring data, organizations can gain deep insights into asset performance and health. This data-driven approach facilitates predictive maintenance, which can significantly reduce unplanned downtime and extend the life of assets. According to a report by McKinsey & Company, predictive maintenance strategies can reduce maintenance costs by 20% to 25%, improve equipment uptime by 10% to 20%, and reduce overall maintenance planning time by 20% to 50%.

Organizations are now employing machine learning algorithms to analyze large datasets, identifying patterns and anomalies that human analysts might overlook. This capability allows for the early detection of potential failures, enabling maintenance teams to act proactively rather than reactively. For instance, in the energy sector, companies like Siemens and GE are utilizing advanced analytics to predict equipment failures and optimize maintenance schedules, thereby ensuring higher reliability and efficiency of power plants.

Moreover, the integration of advanced analytics into EAM systems facilitates the optimization of spare parts inventory, ensuring that critical parts are available when needed without tying up capital in excess inventory. This optimization not only reduces inventory costs but also improves asset availability and operational readiness.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Predictive Maintenance

Predictive maintenance is a trend that is rapidly gaining traction in the realm of EAM strategies, driven by the advancements in data analytics and machine learning. By predicting when an asset is likely to fail or require maintenance, organizations can schedule interventions at just the right time, thus minimizing downtime and extending asset lifecycles. A study by Gartner predicts that by 2025, predictive maintenance will reduce costs for industrial organizations by 25%, while improving uptime and extending the life of assets by several years.

Implementing predictive maintenance requires a robust data analytics infrastructure capable of processing and analyzing vast amounts of data from various sources, including IoT devices. This infrastructure enables the continuous monitoring of asset conditions, identifying trends that indicate potential failures. For example, in the manufacturing sector, companies like Bosch and Schneider Electric are leveraging IoT and data analytics to monitor equipment conditions in real time, enabling timely maintenance actions that prevent costly downtime and equipment failures.

The success of predictive maintenance also depends on the integration of advanced analytics with EAM systems, allowing for seamless communication and data exchange between maintenance teams and asset management systems. This integration ensures that maintenance activities are aligned with asset management objectives, optimizing asset performance and reliability.

Internet of Things (IoT) and EAM

The Internet of Things (IoT) is revolutionizing EAM strategies by providing real-time visibility into asset performance and conditions. IoT-enabled devices and sensors collect data directly from assets, transmitting it to centralized analytics platforms for analysis. This real-time data collection and analysis enable organizations to monitor asset health continuously, identify issues before they lead to failures, and perform maintenance based on actual asset conditions rather than predetermined schedules.

According to Accenture, the integration of IoT with EAM systems can lead to a 30% reduction in maintenance costs, a 70% reduction in equipment breakdowns, and a 20% to 25% increase in labor productivity. These benefits are driving the adoption of IoT technologies across various industries, from manufacturing and utilities to transportation and healthcare. For instance, the Metropolitan Transportation Authority (MTA) in New York has implemented an IoT-based monitoring system for its subway cars, enabling real-time tracking of car conditions and facilitating timely maintenance interventions.

Furthermore, IoT technologies enhance asset tracking and management capabilities, allowing organizations to monitor asset performance across multiple locations. This capability is particularly beneficial for organizations with geographically dispersed assets, enabling centralized monitoring and management. The data collected through IoT devices also supports better decision-making regarding asset utilization, retirement, and replacement, thereby optimizing the overall asset lifecycle management process.

These emerging trends in data analytics are not only transforming EAM strategies but are also setting a new standard for how organizations approach asset management. By leveraging advanced analytics, predictive maintenance, and IoT technologies, organizations can achieve unprecedented levels of operational efficiency, asset reliability, and cost savings. As these technologies continue to evolve, they will undoubtedly unveil new opportunities for enhancing EAM strategies further.

Best Practices in EAM

Here are best practices relevant to EAM from the Flevy Marketplace. View all our EAM materials here.

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.

Explore all of our best practices in: EAM

EAM Case Studies

For a practical understanding of EAM, take a look at these case studies.

Asset Management Optimization for Luxury Fashion Retailer

Scenario: The organization is a high-end luxury fashion retailer with a global presence, struggling to maintain the integrity and availability of its critical assets across multiple locations.

Read Full Case Study

Asset Management System Overhaul for Defense Sector Contractor

Scenario: The organization is a prominent contractor in the defense industry, grappling with an outdated Enterprise Asset Management (EAM) system that hampers operational efficiency and asset lifecycle management.

Read Full Case Study

Asset Management Advancement for Power & Utilities in North America

Scenario: A firm within the power and utilities sector in North America is facing difficulties in managing its extensive portfolio of physical assets.

Read Full Case Study

Asset Lifecycle Enhancement for Industrial Semiconductor Firm

Scenario: The organization is a leading semiconductor manufacturer that has recently expanded its production facilities globally.

Read Full Case Study

Defense Sector Asset Lifecycle Optimization Initiative

Scenario: The organization is a provider of defense technology systems, grappling with the complexity of managing its extensive portfolio of physical assets.

Read Full Case Study

Enterprise Asset Management for a Cosmetics Manufacturer in Europe

Scenario: A European cosmetics company is facing challenges in scaling its Enterprise Asset Management (EAM) to keep pace with rapid expansion and increased product demand.

Read Full Case Study




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials

  •  
    "Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.

    The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."

    – Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.
  •  
    "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
  •  
    "Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I "

    – M. E., Chief Commercial Officer, International Logistics Service Provider
  •  
    "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
  •  
    "I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."

    – Moritz Bernhoerster, Global Sourcing Director at Fortune 500
  •  
    "[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it give me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."

    – Royston Knowles, Executive with 50+ Years of Board Level Experience
  •  
    "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 "

    – Bill Branson, Founder at Strategic Business Architects
  •  
    "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 "

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



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.