2016 SAP SE or an SAP affiliate company. All rights reserved.

Digital

of Asset
Management
Transformation
POINT OF VIEW

Dear asset management professionals,

As the world becomes more dynamic, complex, and data driven, it is more important than
ever to be agile especially in industries such as discrete and process manufacturing, utili-
ties, or travel and transportation, where customers are demanding personalized products and
ever-faster delivery. Essentially, all asset-intensive industries face disruptive challenges from
changing business models and higher cost pressures. However, what does this mean for as-
set management? The big imperatives have not changed you still need to balance cost, risk,
and performance, now in accordance with ISO 55001 and other new management standards.
Moreover, you still need to focus on reducing cost and being more efficient, using capital ex-
penditures optimally, avoiding incidents, and coping with revenue objectives and ever-evolving
regulatory and compliance challenges.

What has changed is this: massive amounts of data about assets are being generated every
Dr.-Ing. Achim Krger day, minute, and second and are already available to safeguard mission-critical business
Vice President, Line of Business
processes. As we explore in this paper, this data provides a wealth of potential insight that can
Asset Management
SAP SE transform asset management in ways that help companies get more value from their assets.
Nevertheless, to harness it, conventional maintenance management systems and processes
are not enough. Asset managers need ways to turn Big Data into information, as well as enable
information transparency throughout the entire asset lifecycle and within the ecosystem of
operators, equipment manufacturers, and service providers.

This requires a seamless, digital representation of physical assets that allows for the digitaliza-
tion of key processes. Practitioners as well as decision makers can use this digital representa-
tion of assets to easily access all relevant information to conduct business wherever they are
and in a format they can digest quickly.

This digital representation is the key to the digital transformation of asset management. It
allows you to reinvent your business models, business processes, and the way people work.
Everything is connected in real time. In addition, everyone can access the right information
about assets at just the right time and collaborate easily with each other because:
Assets are connected, where needed.
Asset system behavior is analyzed in real time, simulated, and predicted.
Asset management information is shared easily in the cloud.

SAP can help you develop an environment in which you can manage asset-related informa-
tion and processes throughout the complete asset lifecycle. The resulting transformation will
positively affect the core business processes and systems that make your business more com-
petitive for example, by reducing maintenance cost, increasing asset uptime, and lowering
operational risk.

I invite you, as an asset management professional or executive, to join the conversation about
the digitalization of asset management as a first step, by dedicating time to read this paper.
Our best minds have collaborated to provide you with a comprehensive road map for simplify-
ing processes, running an efficient asset management organization, and, ultimately, accelerat-
ing growth for your organization. Our vision is to help the world run better and improve peoples
lives and we aim to provide the tools to make that vision a reality.

Thank you for your interest, and I look forward to your feedback.

Run Simple,

Dr.-Ing. Achim Krger

Vice President, Line of Business Asset Management
SAP SE

Digital Transformation of Asset Management

2/17 2016 SAP SE or an SAP affiliate company. All rights reserved.
TABLE OF CONTENTS

Point of View 2

Redefining Asset Management in the Digital World 4

Its All About Harnessing the Data 4

Innovations and Trends Shaping Asset Management 5

Business Context 5

Technology Innovations 7

Reimagining 9

Digital Business Framework 11

The Five Pillars of a Digital Strategy 11

Applying the Digital Framework to Asset Management 12

How Can SAP Help Your Business? 14

Asset Operations and Maintenance Solutions 15

Environment, Health, and Safety Solutions 15

Asset Network Solutions 15

Use Cases 16

Maintain Assets Proactively Using Sensor and Meter Data 16

Reduce Maintenance Cost While Improving Availability 16

Use the IoT to Introduce New Business Models 17

Bring Together Transactions and Analytics 17

Learn More 17

Digital Transformation of Asset Management

3/17 2016 SAP SE or an SAP affiliate company. All rights reserved.
REDEFINING ASSET MANAGEMENT IN THE DIGITAL WORLD
Smart assets and new business models are generating massive volumes of real-time
asset data that can be harnessed to redefine effective asset management.
As CEOs strive to grow revenues and profits while balancing analyzing it to gain real-time transparency and decision support.
risk and customer satisfaction, they can choose to compete Companies can share this data and drive collaboration across
within a core or niche market; compete on price, quality, their ecosystem throughout the asset lifecycle for better asset
or uniqueness of product; or compete by innovating new outcomes. The possibilities are endless.
products and services to attract and keep customers. At the
same time, they spend millions, and even billions, to design, At SAP, we call this digital transformation and it is the future of
buy, operate, and decommission equipment and other asset management.
physical assets essential to achieving business goals.
ITS ALL ABOUT HARNESSING THE DATA
Asset managers, in turn, are responsible for supporting
Digitally transformed asset management ensures that the right
the CEOs strategy by maximizing return on assets for
information technology (IT) and operational technology (OT)
example, by ensuring asset uptime to reliably meet demand
data and insights are available to the right people at the right
and control cost. Successful asset management that
time, across the ecosystem and the entire asset lifecycle. Since
follows the latest guidelines of ISO 55001 maximizes
asset managers can trust that insights are based on clean, high-
return on assets consistently and reliably. It does this by
quality, reliable data, they can move ahead with confidence to
optimizing cost, risk, and performance so that management
effectively manage cost, risk, and performance, and thus ensure
can execute strategies and goals and fulfill customer orders
assets create maximum value for their organization. This data,
on time and with expected quality.
which is vertically integrated (from shop floor to top floor) and
horizontally integrated (across departments and the extended
This is no small task, as each day assets age, wear down,
ecosystem), is the key to digital transformation.
and break. New safety risks emerge, capital costs creep
upward, and unexpected failures occur despite adherence
As shown in Figure 1, to realize this goal, real-time data collection,
to recommended maintenance schedules.
analysis, and reporting must occur across the entire asset
lifecycle from the OEMs and engineering, procurement, and
However, a tidal wave of change is upending the traditional
construction companies (EPCs) to the asset owners and
world of asset management. Powerful technology innovations
operators. Stakeholders responsible for each step in the asset
powered by the Internet of Things (IoT), predictive analytics,
lifecycle need timely access to data-driven insights so they can
augmented reality, pervasive mobility, and global business
make decisions that will optimize asset performance all while
networks are enabling the creation and analysis of data
balancing cost and risks.
that is an order of magnitude larger in volume than what was
available just a few years ago. This data can be harnessed
From an IT perspective, this means new kinds of asset
to transform asset management practices and support the
management solutions are needed solutions that can connect
creation of new business models and processes.
all stakeholders participating in the asset lifecycle and make the
right data available to them at the right time.
Imagine having streaming data from sensors, machines,
and other assets connected through the IoT and then

Figure 1: Balancing Cost, Risk, and Performance for ISO 55001 Compliance

Cost Risk ISO Performance

55001
Connecting corporate objectives
with the asset system

Asset Plan and Procure and Commission Operate Maintain Decommission

design build
Connecting all stakeholders
throughout the asset lifecycle
Manufacturers Service providers
Suppliers Owners or operators

Engineering, procurement,
and construction Connecting IT with OT Dealers
IT* OT*
companies
*Information technology (IT) and operational technology (OT)

Digital Transformation of Asset Management

4/17 2016 SAP SE or an SAP affiliate company. All rights reserved.
INNOVATIONS AND TRENDS SHAPING ASSET MANAGEMENT
The time is now to invest in digital transformation.

To enable digital transformation of asset management, you must be able to generate, collect, and analyze the necessary
information in real time. This requires solutions that enable you to:

Connect to assets to bring together information from operational and business systems (IT/OT convergence), as
well as use the IoT for scaling transparency without neglecting existing information sources

Predict and simulate asset system behavior to avoid unplanned downtime and major operational consequences,
as well as discover patterns of failure and preserve operational integrity

Share asset information and collaborate so you can activate the ecosystem of OEMs, EPCs, service providers, and
operators; ensure theres one version of truth on asset information; and use a business network to enable integrated
processes in the cloud

As we discuss in the following sections, the convergence of business challenges and technology enablers is creating a perfect
environment for meeting these requirements.

BUSINESS CONTEXT
New business trends, expectations, and ways of working are driving the need for asset management to be more effective,
efficient, proactive, and agile.

Trend #1: Process Harmonization Across Industries

As globalization continues, companies are becoming more connected to other companies. It is common for manufacturers to
source materials in one country, assemble products in another, and then distribute their products worldwide. These products
may need to meet the requirements and safety standards of multiple countries, which requires process harmonization across all
companies involved in the product lifecycle. While achieving compliance with ISO 55001, ISO 14001, and ISO 45001 standards
requires effort and investment, doing so enables companies to standardize management processes across industries.

Trend #2: Holistic Management of Cost, Risk, and Performance

As illustrated in Figure 2, organizations need to manage their asset-related cost, risk, and performance holistically so they can
focus on the most-efficient ways to balance operating expenditures (OPEX) and capital expenditures (CAPEX) and optimize
asset lifecycle cost.

Figure 2: Managing Asset-Related Cost, Risk, and Performance Holistically Across the Organization

Managing resources
ISO
Cost Environment 55001

Worker

Assurance
Profit

Risk

Product Value
Leadership
Performance Asset Alignment
Managing revenues

Digital Transformation of Asset Management

5/17 2016 SAP SE or an SAP affiliate company. All rights reserved.
Trend #3: Collaboration throughout the Asset Lifecycle
Asset-intensive companies are striving for greater collaboration between EPCs, OEMs, service providers, and operators
throughout the asset lifecycle. When integrated processes support this collaboration, companies can realize ever-higher levels
of asset optimization. Consuming model or equipment data from OEMs can help ensure high quality of master data in the
operators system. Receiving back information about the actual performance of the asset helps manufacturers close the loop
to engineering and design. Service providers can participate in collaborative scenarios optimizing service delivery. Figure 3
illustrates the type of information that can be shared.

Figure 3: Shareable Asset Information Between OEMs, Service Providers, and Asset Operators

Nameplate information
Service bulletin receipt
Maintenance strategy
3D parts number or BOM Service bulletin processed
Service bulletins and revisions
Failure modes Usage information

Recalls Installation information

Safety controls
Failure and incident data
Process controls
Service bulletin
Design recommendations
Designs and drawings
Design improvements Risks and controls
Sensor definition
Licensing
Operating instructions Measurement documents
Maintenance instructions
Telemetry
Safety instructions
Product training

Manufacturer Service provider Operator

Trend #4: User Empowerment

One of the major indicators of maturity in asset management is how easy it is for practitioners and decision makers to access
all the information they need, when and where they need it and in a readily consumable format. Companies want empowered
employees that can identify and address issues early and make informed decisions that optimize asset management over time.
This demand is driving the need for an IT platform where trusted, up-to-date information can be easily accessed and shared by
asset managers and other stakeholders.

Trend #5: Compliance and Cost Pressure

You can expect to see ISO 55001 certification required for companies that want to operate in certain countries and industries. At
the same time, more stakeholders including shareholders, customers, employees, and the public expect that the companies
they do business with are operating safely and reliably even under cost pressure. Therefore, achieving compliance will become a
business requirement.

Digital Transformation of Asset Management

6/17 2016 SAP SE or an SAP affiliate company. All rights reserved.
TECHNOLOGY INNOVATIONS even more widely. Today, its more affordable for companies
to turn not just costly, sophisticated assets but also smaller
Thanks to new technologies, it is now possible to give people
machines and even household appliances into smart assets.
across the extended ecosystem the exact information they
Assumptions have been made that by 2020, there will be
need in real time and in the right format. Moreover, this
anywhere from 50 billion to around 200 billion devices
capability is opening doors to a completely new world for
communicating over the Internet. And much of this data will
asset management.
be shared over business networks, which could grow by as
much as 20% annually.
Trend #1: Internet of Things
Today, the boundaries of asset management are no longer
limited by the technologies used to link physical assets
Trend #3: Cloud Computing
While asset-intensive companies may still be reluctant to
to business IT systems. Machines talk not only to other
consume major IT functionality through the cloud, there
machines (M2M) but also to business systems using the
are clear cost, speed, reliability, and security advantages for
Internet protocol (IP). Companies are, in effect, replacing or
using cloud-based business networks to share information.
complementing proprietary, synchronous networks used to
Commercial cloud providers can afford to spend more effort
control machinery with asynchronous communication using
on IT security, data protection, and privacy compared to most
IP. This brings standardization to the communication layer,
companies due to economies of scale. This translates into
enabling companies to publish information directly to the
companies having even greater data protection than they
Web. As a result, every asset can become part of the IoT. At
could implement internally. Cloud-based computing also
the same time, assets are getting smarter and more capable.
provides:
For example, they can indicate their past and current status,
send failure codes, generate alerts when maintenance or
Fast implementation time, providing quick access to
service is needed, and, in some cases, forecast when failure
functionality
is likely to occur all by using dedicated algorithms.

Reduced IT effort, because hardware and software

All this makes the information being sent through the IoT
operation and maintenance are the providers
increasingly valuable for asset management. However, we
responsibility
are seeing ever-larger oceans of data being created data
that must be converted into valuable information and
Flexibility with subscription pricing
insights tailored for specific stakeholders. How, when, and
where it is presented to users largely determines if they can
Scalability to support changing business needs and
use it to drive more-effective asset management.
growth

Trend #2: Big Data and Analytics
Given these benefits, cloud computing is being adopted
Asset-intensive organizations collect vast quantities of data
widely by asset-intensive companies for both business
during the product and asset lifecycle. Some comes from
applications and networks.
suppliers providing data on their products and shipments.
However, a huge amount of data comes from new assets
that are getting smarter and can communicate status and
Trend #4: Mobile Solutions
Many asset-intensive companies are rapidly adopting mobile
performance data through the IoT. Even older machinery
solutions to improve workforce safety and productivity,
is being equipped with sensors that constantly churn
optimize asset performance, and transform service delivery.
out data from the shop floor. And customers that are
Workers can access information, best practices, requirements,
taking advantage of new business models for outsourced
and even visualizations of assemblies and repair steps and
maintenance (potentially only paying for the performance of
procedures anytime, anywhere, on tablets and smartphones.
the asset) are providing machine data to service providers
This means companies can address the unique challenges of
and OEMs.
maintaining their mission-critical assets and even customer
assets, many of which may be deployed globally and in remote
The amount of data generated in a typical industrial
areas. Mobile asset management solutions help reduce safety
ecosystem today is truly remarkable and it will only grow
incidents, decrease outages, improve work quality and asset
as the price of sensors, microprocessors, and wireless
uptime, shorten work cycles, and boost user satisfaction.
technologies continues to fall so that they can be deployed

Digital Transformation of Asset Management

7/17 2016 SAP SE or an SAP affiliate company. All rights reserved.
Trend #5: Augmented and Virtual Reality
Having massive volumes of IT and OT data is not helpful if
decision makers struggle to access and understand it. That
is why we are seeing more companies using augmented and
virtual reality to present information. These technologies
can be embedded directly into a live view of the asset
system or into an interactive, virtual 3D model that contains
all necessary information. Users of these technologies can
access information from anywhere and view combined IT
and OT data in an environment that provides unmatched
situational awareness and enhanced perception for better
decision making.
Trend #6: Predictive Maintenance and
Condition Monitoring
Given that devices and assets are mission-critical parts of
your business, it is essential to maintain full visibility into
current asset health as well as predict and address future
asset behavior to prevent failures and costly downtime.
Predictive maintenance requires continuous monitoring
of assets, which may include real-time analysis of Big
Data streaming from assets. The IoT makes this possible,
because it enables companies to connect and interact
with assets and devices without barriers, in real time, and
regardless of their location and even as they continuously
interact with other devices.
Predictive maintenance enhances pure condition
monitoring, which has been used for many years to
detect failure symptoms early enough to initiate
maintenance and prevent breakdowns. But condition
monitoring is still reactive in nature, whereas predictive
maintenance is proactive. The goal of predictive
maintenance is to determine the optimal maintenance
schedule for assets, thus eliminating unnecessary
maintenance without affecting assets health or lifespan.
Digital Transformation of Asset Management
8/17
Trend #7: Business Networks
Imagine a single, cloud-based IoT platform linking all
equipment and stakeholders in an ecosystem. Now visualize
applications running on this collaboration platform to
simplify maintenance and enhance cooperation for complex
tasks. Add built-in analytics to inspire innovation for
managing assets as a service or redesigning them based
on performance. This is the power of business networks for
asset-intensive companies.
Use of business networks in an asset management context is
beginning to gain traction, just as it already has in business
areas such as procurement and human resources. The
adoption of advanced business networks could not have
happened at a better time, now that companies are under
pressure to transition to the digital economy. Business
networks combined with the IoT and cloud technologies
make automated data exchange fast and simple. As a result,
they simplify collaboration among asset management
stakeholders and their equipment or service providers,
collaboration that is deeper and broader than ever.
Nearly every asset-focused stakeholder can benefit from
simplified collaboration. For example, asset operators want to
minimize capital investments, operational overhead, and risks.
They may prefer to pay for the equipment or asset as a service.
In this scenario, instead of purchasing the asset and paying
for service when needed, the asset operator pays a monthly
fee. Although the asset resides at the asset operators site,
the OEM or provider retains ownership of the asset and is
responsible for servicing the asset to ensure uptime. OEMs
want to increase revenue growth and sharpen competitive
advantage with bundled products and services. And service
providers want to offer value-added services enabled by
technological innovations. Business networks are uniquely
able to support the goals of each of these stakeholders.
2016 SAP SE or an SAP affiliate company. All rights reserved.
REIMAGINING
Digital innovation is real.
The digital economy offers infinite new opportunities. In a connected world, where
every company is becoming a technology company, smarter assets and products
can transform asset management and enable new services and business models.

Building on the business and technology trends discussed previously, it is now possible to:

Create an IT foundation for operational excellence

that bridges the traditional organizational silos of engineering; purchasing; operations; reliability; environment, health,
and safety; and other departments. This foundation needs to push out data structures, business processes, and user
experiences not only across all of these departments, but also beyond into finance, the supply chain, and human
resources.

Manage asset-related cost, risk, and performance holistically

so people can focus on the most efficient ways to balance OPEX and CAPEX and focus on asset lifecycle cost.

Implement proactive maintenance strategies enriched with analysis of real-time data

as well as predictive analytics and other forecasting methods to increase return on assets and reduce unplanned
downtime. Processes must be integrated from shop floor to top floor and encompass the complete asset lifecycle.

All the data generated can be shared in real time within the ecosystem to:
Enable efficient collaboration among business partners
Help asset operators minimize capital investments and achieve higher asset availability
Let asset manufacturers centrally manage all information and build installed-base knowledge

So what can you do with all of these new capabilities? Reimagine everything.

As summarized in the table, reimagined asset management transforms business models, business processes, and the day-to-
day work performed by managers and maintenance professionals.

Reimagine Business Reimagine Business Reimagine

Models Processes Work
Asset as a service Change from a fixed-interval 3D visualization of data on
maintenance schedule to demand
Intense collaboration with more-agile maintenance
suppliers strategies Mobile access

Joint use of resources More collaboration across all Augmented reality

departments
Wearables
Integration throughout the
entire asset lifecycle

Digital Transformation of Asset Management

9/17 2016 SAP SE or an SAP affiliate company. All rights reserved.
With these examples of reimagined business models, processes, and work, you can:
Analyze Big Data collected
from asset sensors and from
business transactions, which
allows asset managers to make
better-informed decisions,
measure asset health, prevent
failures, and determine the
optimal maintenance schedule
Allow machines to talk to each
other, and empower people to
make complex decisions
The possibilities are endless.
Digital Transformation of Asset Management
Monitor assets remotely,
which can lead to the
dominance of asset-as-a-
service business models
Lower IT and OT overhead
10/17
Shorten mean time to repair,
improve maintenance quality,
and reduce human errors
Benefit from reduced
maintenance cost, increased
uptime, safer operations, and
greater agility to meet new
business and customer needs
2016 SAP SE or an SAP affiliate company. All rights reserved.
Share asset information
and exchange maintenance
knowledge
Establish safer operations by
ensuring a contextual use of
asset and safety data, such as
pushing existing environment,
health, and safety information
actively into ongoing
maintenance activities
DIGITAL BUSINESS FRAMEWORK
Every company across every industry requires a simple, digital approach to building a
pragmatic and executable vision of its digital strategy.
Most companies are already on their journey to become
digital businesses, as many assets have been connected to
information systems for years and have created large data
lakes. Today, most asset information such as master or
performance data, whether in a structured or unstructured
form is available in a digital format or in a form that can
be digitized at the point of origin. Even older assets can be
affordably equipped with sensors that capture data in real
time.
But in most organizations, huge leaps in both processes
and technology must still be made to enable digital
transformation. For example, all asset-related data must
be available in a format that can be understood and used
throughout the entire asset lifecycle and associated value
chain. Data from IT and OT must be merged and converted
into actionable information in a timely manner. And this
information must be made available to the right decision
makers across the ecosystem so they can base decisions and
actions on it.

THE FIVE PILLARS OF A DIGITAL STRATEGY

To help companies make these technology and process leaps, SAP has developed a digital framework for the extended supply chain.
It is a simple and proven approach to value creation through digitalization. As shown in Figure 4, it is based on the five pillars of a
digital plan and architecture:
Customer centricity across all channels
Individualized products driven by Industry 4.0 and the IoT to enable new business models that can use Big Data
Optimization of scarce resources such as people and natural resources in a sustainable world
Sharing economy across all business networks
A digital core that enables real-time visibility across all business processes, simplifies the IT landscape, and integrates Big Data,
predictive algorithms, and mobile technology

Figure 4: The Digital Framework

Suppliers Customer
& networks experience

Digital Core

SAP HANA Platform

Workforce loT
engagement Security & big data

Digital Transformation of Asset Management

11/17 2016 SAP SE or an SAP affiliate company. All rights reserved.
APPLYING THE DIGITAL FRAMEWORK TO
ASSET MANAGEMENT
Every asset management organization needs to think about
the five pillars of a digital strategy. Lets take a closer look at
each pillar and how it relates to asset management.
Customer Centricity
More than ever, companies need to put the customer at
the center of everything they do and make use of new
technologies and models of engagement to reinvent the
customer experience.
What does customer-centricity mean for asset
management? In many cases, changes to production
equipment require a more responsive approach to asset
management. For example, to meet new customer
demands, companies need more agile supply chains. In
discrete industries, lot sizes of one are increasingly common
for highly individualized products. But also in process and
services industries, the customer is more than ever the
focus for production. As a result, manufacturing needs to
adjust production equipment more often, handle shorter
response times, and ensure that operations can support a
justifiable price and expected level of quality.
Individualized Products
The ability to customize products and fulfill the specific
needs of individual customers is vital for future
competitiveness. For most manufacturers, this represents
a fundamental change in their current business model
and operational processes including asset management
processes. For example, fulfilling lot sizes of one and
requests for tailor-made products demand that assets be
managed in a way that will ensure the company can meet
delivery, quality, and price objectives while also fulfilling
boundary conditions such as environmental compliance.
Equally important, all asset- and process-related risks must
be properly controlled to avoid events that could damage
customer perceptions of products or the reputation of the
manufacturer.
Digital Transformation of Asset Management
12/17
Scarce Resources
Resources such as raw materials and skilled labor are scarcer
than ever. Under cost pressure, companies must determine
the most efficient asset strategy so they can make the best
use of natural and human resources.
Governments, and even customers, are demanding that
companies do more with less and find ways to build
sustainability into their business processes and their products.
As skilled workers continue to age out of the workforce,
companies must monitor and evaluate where and how labor is
being utilized and determine the future skills required by their
workforce.
By optimizing the utilization of labor and raw materials,
companies can ensure a sustainable business model
that addresses a shrinking and unskilled workforce and
the demand and supply challenges of natural and human
resources. With the right technologies, such as augmented
reality and robotics, companies can boost efficiency by
reducing energy consumption, improving product and
workplace safety, and minimizing risk.
Sharing Economy
No business excels in every area or has the best resources
to get every type of work done. Increasingly, companies are
collaborating internally and across their broader business
networks for design, manufacturing, distribution, and
consumption of goods and services. By harnessing expert
resources within other organizations, they can access the best
of all worlds and get to market faster.
At the same time, both traditional and new business models
(such as asset as a service) are requiring companies to break
down traditional silos within organizations. For example,
maintenance operations, reliability engineering, and health
and safety departments must work together to achieve
optimal asset performance. This means that everyone
involved including OEMs, EPCs, service providers, and asset
operators must be able to assess the right information
at the right time. Ideally, this happens through business
networks that sit in the cloud, as they support real-time
sharing of structured and unstructured data, such as master
data and performance data coming from assets.
2016 SAP SE or an SAP affiliate company. All rights reserved.
The Digital Core
To operationalize the digital transformation of asset
management, companies need to put an end to running
business in batch mode and eliminate complex work-
arounds for disconnected processes. For real-time insights,
companies need to put in place a single enterprise data
source that is powered by in-memory computing, and
deploy end-to-end solutions that cover entire business
processes.
To meet this need, SAP has innovated the digital core
SAP S/4HANA that recombines business transactions
and operational analytics while integrating Big Data,
predictive algorithms, and mobile technology in a way that
changes how asset-intensive companies work, operate,
and access and consume information.
In-memory computing used by the digital core dramatically
simplifies the IT landscape and makes it possible to run
transactional and analytical applications simultaneously.
This enables real-time insights that lead instantly to action.
And because data does not have to be preprocessed or
aggregated, questions can be answered in real time based
on raw data. For asset managers, this may involve decisions
about whether to change an asset strategy, make a long-term
investment, or adjust short-term maintenance plans. With the
digital core, they can simulate different choices and determine
the best course of action.

In addition, the digital core is the key to:

Having a single, real-time view of plant and business performance (including customer-deployed assets) with real-time analysis
of asset performance
Optimizing asset management through agile maintenance strategies to avoid overmaintaining assets
Accessing and analyzing IT and OT data to optimize operational performance
Gaining a 360-degree view of asset behavior and history

When evaluating technologies that will build your digital core, look for solutions that offer:

Real-time insights:
Using real-time insights, companies can develop new ways to optimize asset management and operations, both in terms
of the processes used and the structure of supporting organizations.

The power of prediction and simulation:

Every employee can gain real business insights with the help of simulation and predictive tools to drive smarter
decisions, improve reliability, and reduce outages.

Agility:
The capability to rapidly enter new markets, acquire and onboard new business models, or reflect an organizational
change in much less time than it takes with todays systems will yield the agility required to excel in the digital economy.

Deployment choice and lower total cost of ownership (TCO):

Accessing solutions to support your core has to be simple. Companies can choose to deploy in-house or in the cloud
or a combination of the two. Greater utilization of cloud solutions reduces the need for hardware, for example, and thus
the need for costly maintenance and replacement, freeing up both budget and IT resources for value-adding activities.

A consumer-grade user experience:

User experience is key to accepting digital change. It drives adoption, user engagement, and people productivity.

Digital Transformation of Asset Management

13/17 2016 SAP SE or an SAP affiliate company. All rights reserved.
HOW CAN SAP HELP YOUR BUSINESS?
SAP delivers solutions that help you achieve operational excellence; access accurate,
real-time information about your enterprise; predict potential operational problems
before they occur; and empower your workforce with the information needed to run
operational processes smoothly.
It has never been easier to:
Manage cost, risk, and performance throughout the complete asset lifecycle
Gain competitive advantage by boosting safety and quality while optimizing asset performance
Reduce resource consumption
Create, maintain, and access accurate master data
Facilitate better collaboration within your organization and across the extended ecosystem
Deliver a best-in-class user experience for faster, easier adoption
Empower asset managers with support for integrated, optimized processes

Figure 5: SAP Solutions Enabling Digital Transformation of Asset Management

Predictive maintenance Asset information Asset strategy and

and service collaboration performance

SAP Predictive SAP Asset Additional

Maintenance Intelligence applications
and Service Network

Management of change

Digital core
SAP S/4HANA Asset Management
Maintenance
Maintenance Incident Health and safety Environment Maintenance safety Mobile asset
planning and
execution management management management and permit to work management
scheduling

SAP Master Data Governance

Asset information governance

SAP HANA platform

Digital Transformation of Asset Management

14/17 2016 SAP SE or an SAP affiliate company. All rights reserved.
ASSET OPERATIONS AND MAINTENANCE
SOLUTIONS
Asset operations and maintenance solutions from SAP are
designed to help asset managers ensure that their assets
will sustain (or be restored to) states in which they perform
their function, thus contributing to the organizations
business goals. At the same time, SAP understands that the
technicians who operate and maintain assets are mobile
and often work in hazardous situations. Maintaining their
safety and productivity is essential and requires companies
to have the right systems and processes in place.
Asset management professionals, reliability engineers, and
field technicians have to analyze and monitor critical assets
and adapt to new maintenance strategies. SAP solutions
help companies like yours have the right systems and
processes in place to support the safety and productivity of
these professionals.
With SAP solutions, you can:
Reduce outages and shorten resolution time by
supporting consistent asset performance reviews, asset
performance monitoring, and optimized improvement
plans throughout the asset lifecycle
Evolve your maintenance strategy from reactive mode
to well-orchestrated, condition-based maintenance that
includes predictive techniques
Implement better planning, scheduling, and dispatching
of maintenance personnel to boost productivity while
reducing operational downtime
Plan the work and assign the right person to maintenance
activities, steps that are essential to lowering risk and
improving the reliability of your assets
Use mobile devices for asset management so technicians
can receive and manage work orders and maintenance
requests, perform inspection rounds and metering
operations, capture measurement readings, and track
inventory from anywhere
Work hands-free with smart glasses or other wearables,
and use gesture controls while following repair
instructions
Digital Transformation of Asset Management
15/17
ENVIRONMENT, HEALTH, AND SAFETY
SOLUTIONS
The digital core (shown in Figure 4) allows you to move
beyond compliance and closely align environment, health,
and safety (EH&S) with maintenance management to
improve overall asset and safety performance. Integrated
solutions from SAP enable proactive EH&S management by
delivering insights based on consistent data and standardized
processes to key stakeholders. At the same time, our
solutions streamline processes, which can help companies
reduce incidents or accidents, optimize risk management,
and facilitate change
ASSET NETWORK SOLUTIONS
Take advantage of market-leading SAP applications and
technology to streamline asset management. For example,
with SAP Asset Intelligence Network, you can collect, track,
and share model or equipment data in a central repository.
This cloud-based hub facilitates collaborative asset
management and lets companies take full advantage of the
IoT. Operators can access up-to-date maintenance strategies,
manuals, and more from manufacturers and manufacturers
can receive asset usage and failure data automatically from
operators. This is just one example of how asset network
solutions from SAP support the transformation to the digital
world, enable new business models, and help companies
gain a competitive advantage through increased speed,
transparency, and insights.
Combine this with the SAP Predictive Maintenance and
Service solution to predict failures and optimize maintenance
strategies for better allocation of efforts, thereby lowering
cost and raising availability. Connect to assets using a variety
of available interface technologies and put operational data
into a business context.
Have all this, plus accurate master data based on a
comprehensive layout for asset information management.
This includes capabilities from the SAP Master Data
Governance application and the SAP Extended Enterprise
Content Management application by OpenText, providing
a staging area for collecting and governing structured and
unstructured data before transferring into the digital core.
2016 SAP SE or an SAP affiliate company. All rights reserved.
USE CASES

Reimagined, next-generation business processes will span multiple pillars of the digital framework, driving new levels of efficiency,
collaboration, and transparency both internally and across business networks. For asset managers, these processes will enable
greater asset health and performance. Consider the following examples of how companies can benefit.

MAINTAIN ASSETS PROACTIVELY USING SENSOR AND METER DATA

Using the SAP Predictive Maintenance and Service solution, utilities, for example, can continuously collect and analyze sensor data
in real time to monitor asset status and health. This information can be fed into advanced analytics models to predict impending
failures early enough to take action and avoid damages and outages. To determine the best proactive measures, the solution can
determine potential root causes for an expected failure, order the right spare parts, assign the right experts, and devise a cost-
effective schedule.

When SAP Predictive Maintenance and Service predicts a potential failure, it can trigger a work order so that maintenance
personnel can be dispatched. It can also generate additional geospatial and device information to help ensure that a qualified crew
performs the right activities, at the right time, with the right spare parts and tools. In this way, companies can prevent or proactively
manage outages or costly failures, resulting in tangible benefits such as:

Higher return on assets Faster recovery time from failure Greater productivity and safer work
environments

New service revenue streams More competitive service-level Increased customer satisfaction
agreements

When SAP Predictive Maintenance and Service is deployed along with a digital energy network, an energy company can support
even more innovative asset management scenarios. For example, the company can have assets monitor their own health; reach
out to system experts to devise a recovery plan; find work-arounds, sources, orders, and schedules for maintenance experts; order
3D-printed service and spare parts; and update its production schedule.

REDUCE MAINTENANCE COST WHILE IMPROVING AVAILABILITY

Rail operators must ensure safe operation of rolling stock while constantly meeting expectations for cost reduction and higher-
quality service. Investing in new, predictive technologies, consistent with a companys overall vision, mission, and strategy, helps to
support the achievement of business goals.

Using the SAP HANA platform together with SAP Predictive Maintenance and Service, management of rail operators can analyze
data from thousands of onboard sensors in real time and gain insights to dramatically improve maintenance processes. This allows
them to reduce failures and disruptions that would have a significant impact on cost, customer satisfaction, and reputation. Given
that maintenance cost is among the largest expenditure in most P&L statements of rail operators, companies implementing
predictive analytics software running on SAP HANA can reduce maintenance spend significantly while raising asset availability. This
ultimately improves the regularity of train journeys, increases customer satisfaction, and supports the competitive positioning of
companies in the domestic market.

Digital Transformation of Asset Management

16/17 2016 SAP SE or an SAP affiliate company. All rights reserved.
USE THE IOT TO INTRODUCE NEW
BUSINESS MODELS
Industrial machinery companies are using SAP Predictive
Maintenance and Service to monitor in real time assets
such as combustion turbines and air conditioner systems
deployed at customer sites. The solution, powered by the
in-memory computing capabilities of SAP HANA, enables
companies to use advanced methodologies to service their
equipment before a failure might impact the customer
relationship. The solution analyzes data generated from the
assets sensors and meters, including energy consumption
and operational status, to predict which equipment will
need service and when.
These companies can also use these real-time monitoring
capabilities to introduce new products, such as predictive
maintenance services that offer an extraordinary value
proposition: using predictive analytics to give customers the
ability to plan downtime and avoid unexpected outages that
would hurt their revenue expectations.
Digital Transformation of Asset Management
17/17
BRING TOGETHER TRANSACTIONS AND
ANALYTICS
SAP is also seeing companies use SAP S/4HANA to
proactively manage related, mission-critical business
processes. For example, using solutions from SAP for
environment, health, and safety along with SAP S/4HANA,
companies can empower EH&S practitioners with live data
needed to take the best action in the moment. The goal
is to move companies beyond automation to a predictive
management environment while managing health and safety
embedded in the core corporate processes. In this context,
the simplification and operationalization made possible by
SAP solutions can help ensure the engagement of the entire
workforce and move toward zero accidents.
LEARN MORE
The SAP for Asset Management solution portfolio combined
with SAP S/4HANA supports asset-intensive companies
in transforming how they manage assets, creating new
and value-added services based on live data, and more. For
additional information, please visit www.sap.com/eam.
2016 SAP SE or an SAP affiliate company. All rights reserved.
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Studio SAP | 45405enUS (16/12)

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