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Across almost every asset-intensive industry (such as oil and gas, The most valuable asset is the management of human resources,
manufacturing or transportation), organizations are challenged and that comes with its own special set of challenges. Long-term
with how to maximize the value of assets throughout their employees, for example, are continually aging toward retirement,
lifecycle. In fact, in a recent survey of asset managers worldwide, which can mean a loss of knowledge and skills, plus the expense
more than 75 percent of respondents cited system reliability as of training new employees.
the fundamental reason to invest in enterprise asset management.1
IBM Watson IoT 3
Despite these challenges, an organization’s products or services IBM® Watson™ IoT helps organizations make smarter decisions
must constantly evolve to meet customer demands. Multiple about asset management by augmenting IoT data with powerful
variables must be effectively managed. These include issues cognitive insights. This brochure introduces IBM Maximo®
such as increased global commoditization and competition, Asset Management (an essential offering within the Watson
compliance with industry and government regulations, IoT portfolio), which provides the capabilities for better
green and sustainable operations, health and safety in the managing physical infrastructure assets. This IBM solution
workplace, and higher costs of doing business. All of these can be used to make better decisions around all aspects of
factors contribute to the emergence of Industry 4.0, the asset management, and get the insights to deliver ongoing
current trend of automation in manufacturing technologies value for organizations.
which merges physical systems, IoT and cloud computing.
Defining asset management
With these challenges in mind, how can an organization In January 2014, the International Organization for
control assets and remain profitable? Successful organizations Standardization (ISO) released the ISO 55000 series of
build agility into their business model. The ability to adapt to standards. The ISO aimed to unite organizations worldwide
change by improving operations can mean the difference behind a common framework for asset management. As the
between survival and extinction. Asset management, driven successor to the PAS 55 industry standard, ISO 55000 is the
by valuable insights from IoT data, can have a significant result of a three-year collaboration of hundreds of people
impact. One critical step is to unify processes that manage from 28 countries. And in a recent survey, 90 percent of asset
wide-ranging functions across an organization’s multiple sites. managers were already aware of the ISO 55000 release.2
When this framework is in place, organizations can optimize According to ISO 55000, an asset is a “thing, item or entity
production and service systems within each site. As a result, that has actual or potential value.” Therefore, the primary
organizations can wield greater control of the complex asset objective of an effective asset management program is to ensure
environments necessary for bottom-line results. that assets maximize value to all stakeholders in the value chain,
throughout the asset’s lifecycle.
Clearly, enterprise asset management is critical to the health
of an organization. When handled correctly, it can be the key There are different levels at which critical or strategic assets
to continued operations in times of reduced budgets. Asset can be identified and managed. These levels range from discrete
management can also help extend the useful life of equipment, assets to more complex functional asset systems, networks, sites
improve return on investment and defer new purchases. or portfolios. Asset management focuses on all types of assets,
varying from critical or strategic physical assets, to human assets.
4 Understanding the impact and value of enterprise asset management
Physical assets, which are part of an organization’s infrastructure, Managing assets in the modern era
are positioned in the following four classes: There are many reasons for the increased demand for better
asset management. When organizations raise the importance,
• Plant and production (occurring, for example, in industries risk, quantity or cost of their corporate, critical or capital
such as oil, gas, chemicals, mining, manufacturing, assets, they often see a corresponding rise in management’s
pharmaceuticals, food, electronics and power generation) interest to maintain control and visibility of these assets.
• Infrastructure (including railways, highways,
telecommunications, water and wastewater, and electric What’s more, in this new era of mobile, cloud and analytics
and gas distribution networks) technologies, there are more opportunities than ever to collect,
• Transportation (for military, airlines, trucking, shipping, consolidate and analyze information about assets to help
rail and other uses) fine-tune performance.
• Real estate and facilities (for example, in offices, schools
and hospitals) In addition, governments, regulatory bodies, shareholders
and other key stakeholders have pressured organizations in
The human asset perspective provides a broad view of personnel public and private sectors to be able to locate and track asset
motivation, expertise or skills, roles and responsibilities, whereabouts and lease obligations. The higher the risk or
succession strategies, and insight into leadership teams within opportunity cost in not knowing where an asset is located, the
the organization. greater the incentive for management to implement an asset
tracking system. Enterprise asset management can provide
Maximo Asset Management provides an integrated approach real-time insight and visibility into virtually all physical assets,
to managing these discrete or complex assets. The product and across the maintenance, repair and overhaul supply chain.
helps organizations overcome challenges rooted in their aging
infrastructures or human assets, and in their siloed or Foundational capabilities of asset management are integral to
disconnected systems. By breaking down multiple silos of managing an organization’s smarter infrastructure. Such skills
non-standard, non-integrated systems, an integrated approach include tracking, monitoring and managing information around
can help align operations with overall business objectives. asset reliability, asset usage and performance.
Such an integrated method can also support long- and short-term With Maximo Asset Management, asset-intensive organizations
planning, such as controlling inventory and outside service can find these core capabilities within a range of industry-specific
providers, to better meet demands. Maximo Asset Management solutions. The following diagram depicts how mobility and
can enable preventive and condition-based asset maintenance. analytics extend the functions of each category. It shows the
And it can help vendor management by supporting a full range integration points with enterprise resource planning (ERP),
of contracts and full support for managing service agreements. geographic information system (GIS), and supervisory control
and data acquisition (SCADA) systems that help maximize
value across assets.
IBM Watson IoT 5
SCADA
WORK MANAGEMENT about asset operations allows an organization to move from
Integration
• Supply chain management: As traditional business assets become An intuitive user experience is critical for supporting these
more technology-enabled, operations and IT functions are capabilities for enterprise asset management. With easy
increasingly converging in today’s fast-paced business and navigation and features, organizations can streamline work
technology environments. As a result, one way to effectively processes for increased productivity and reduce the need for user
manage operational applications is to consolidate them. training. The ability to geographically visualize the location of
Organizations that seek to better manage their supply work and assets on a map can also help organizations increase
chains must: workforce efficiency and the quality of customer service.
– Find support that is able to manage a wide variety
of asset types and maintenance information.
– Establish a single technology system to manage
virtually all asset types and information (for example,
production, linear, facilities, transportation and
“Our ability to gather and manage asset, fault
infrastructure) including calibration support and and condition data to minimize network
use of mobile capabilities. problems has become the cornerstone of our
– Have an integrated asset management solution that
enables optimal return on assets, complies with
ability to deliver a consistently high-quality
regulations and helps minimize risk. passenger experience.”
– Be able to develop smarter processes and provide
users with an innovative, fully integrated supply —Neil Roberts, director of ICT, Yarra Trams, Australia
chain management system designed for asset-
intensive industries.
Mobility
• Health and safety: The primary objectives of health, safety
The widespread adoption of mobile technologies and the rise
and environment initiatives are to reduce overall risk, to
of bring-your-own-device programs are driving rapid change
comply with appropriate regulations, and to create a safe and
in enterprise IT. That’s why it’s more important than ever for
efficient operating environment in which assets are used.
enterprise asset management solutions to support the latest
Achieving these objectives are as much about standardizing
mobile capabilities. Today’s engineers, field technicians and
health, safety and environmental practices as integrating
these practices with day-to-day operations management.
IBM Watson IoT 7
other business staff are now using smart mobile devices to get
their work done. These workers need to complete their projects
Respond faster Increase governance
within an optimized, IT-approved environment. By taking and make better and reduce
advantage of device-specific capabilities such as photos and decisions operational risk
voice-to-text features, mobile solutions allow technicians to
capture the right information at the right time. y Co
lit n
bi
tr
i
Analytics
Vis
ol
The amount of data within an organization, and around
asset management processes, has exploded within the past
10 years. As organizations mature in how they manage
assets, this data is invaluable in helping them uncover
opportunities to improve process efficiencies and increase
their return on assets. Management teams need to be able to
run extended and enhanced analytics so that they can gain the
right insights to make smarter decisions and operational
improvements. In particular, analytics must be supported by
true optimization models to automate the key planning, Automation
scheduling, and work management processes for capacity
planning, resource management and work scheduling. The
correct solution makes these capabilities available through Improve asset
easy-to-use executive dashboards. utilization with proactive
asset management
Sadly, the health of asset data is an often overlooked failure.
Without completed fields, or validated data, analysis is not
possible. Analysis of the health of data fields in critical areas Figure 2: A comprehensive enterprise asset management solution provides
increased visibility, control and automation.
such as asset registries, item inventory and work completion
is essential to supporting reliable analytic reports.
8 Understanding the impact and value of enterprise asset management
Gaining asset management benefits This increased visibility of all assets across the enterprise
with visibility, control and automation allows organizations to respond faster and make better
To manage the full asset lifecycle and better address business decisions. Visibility provides an enterprise-wide view of asset
imperatives, asset-intensive organizations require integrated details and processes from across the organization, including
visibility, control and automation across their business and visibility into asset service processes across the enterprise
technology assets. This approach can help organizations better supply chain.
achieve their objectives and maximize the value from all assets
supporting the operation. With better control of their assets and asset-related data,
organizations can:
Asset management also has a logical impact on operational spares and inventory to shorten repair times by eliminating
costs. Efficiencies realized by effectively managing labor, delays caused by an inefficient supply chain. Each of these
inventory and other support services directly impact the insurance policies come with high premiums associated with
bottom line by helping to control costs. More timely and constant upkeep, refurbishment and financial carrying costs
precise user intervention can improve productivity, reduce that rarely cease.
materials use and decrease the cost of doing business.
These strategies can increase, rather than decrease, costs.
A significant challenge for organizations today is to effectively However, using Maximo Asset Management helps control or
balance the lowest operational cost with the utilization loads eliminate overstocking and stockpiling, and can also help
of their asset portfolios. As a result, organizations commonly reduce the organization’s fixed capital investment and contribute
overstock equipment and fleets to make sure that they always to positive bottom-line results.
have the assets they need. Other organizations stockpile
Value drivers
Increased customer satisfaction
Enhanced regulatory
and OEM relationships
Revenue/capability
Improved safety/lower risk
Increased asset availability/ Effective service
service reliability delivery/profits
generated
Increased labor productivity
ROI and
Reduced material costs Operating costs
shareholder
Reduced service costs value/qualitative
benefits
Reduced equipment investment
Fixed capital
Reduced facilities investment
Capital efficiently
employed
Increased inventory and accounts
receivable turnover Working capital
Figure 4: Certain value drivers contribute directly to ROI and shareholder value.
IBM Watson IoT 11
Choosing a solution that can increase • Provide a lower cost of ownership by using one global
revenues and decrease costs enterprise application instance, consistent metrics, and
With Maximo Asset Management, organizations are better best-in-class practices that are enforced with the same
able to meet today’s business, operational and technology standard asset management solution at all of the
challenges, and efficiently address the lifecycle of resources. organization’s sites
• Enable asset-intensive organizations to optimize their
This solution enables organizations to: maintenance and repair supply chain with management of
materials and spare parts inventory that is fully integrated
• Manage aging infrastructures: into the asset management solution
– Identify equipment components and how they are • Use accessible, integrated capabilities for integration with other
connected to the asset assembly systems for enterprise resource planning, operational systems,
– Implement and enforce standard processes for asset manufacturing execution, financial management, reporting
management and analysis to support better-quality decision making
– Support real-time data collection, diagnostic and analysis
tools that closely monitor aging assets to extend the Implementing a solid enterprise asset management solution
useful life. Improve overall maintenance best practices, can directly contribute to the way organizations in asset-intensive
and meet increasingly complex health, safety and industries increase revenues and decrease costs.
environmental requirements.
– Control operational risk by embedding risk management
into everyday business processes
12 Understanding the impact and value of enterprise asset management
In addition, Maximo Asset Management solutions can use • Condition-based maintenance: As much as half of preventive
the following key aspects of enterprise asset management maintenance investments have zero effect on uptime. Most
to their advantage: of the time assets fail randomly. Maximo Asset Management
software lets organizations capture knowledge about how
• Asset maintenance management: Optimized at the process asset health is assessed and then use these insights to
level. Examples include reactive, preventive and planned perform maintenance only when needed, reducing costs
maintenance combining materials and service management. and unplanned downtime.
Maximo asset and work management modules in general
address this requirement. Available as an on-premises or software-as-a-service (SaaS)
• Asset risk management: Optimized at the asset performance offering, Maximo Asset Management provides the right
level. For example, asset reliability, service and performance capabilities to meet organization’s needs. Each model provides
management, IBM Maximo Calibration and key performance the collection, consolidation and analysis of virtually all types
indicators and metrics, such as mean time to repair and mean of assets, unifying processes for wide-ranging asset management
time between failures, address such requirements. functions across multiple sites.
• Infrastructure management: Optimized at the service
performance level. Examples include utilities and facilities
management. Spatial and linear asset management, facilities
and integration with intelligent building management
systems address these requirements.
IBM Watson IoT 15
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Somers, NY 10589
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2 http://energy.gov/sites/prod/files/2013/10/f3/OM_4.pdf
3 http://energy.gov/sites/prod/files/2013/10/f3/OM_4.pdf
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