Having been in the Enterprise Asset Management (#EAM) industry for almost 30 years, the team has seen all levels of system maturity among our clients, prospects, and competitors. There are those companies that:
• Have no systems and processes in place: Finance is on a spreadsheet and any supply chain and maintenance spare requirements are recorded and communicated from the maintenance manual onto a cigarette box and bought over the phone and email (Level 1).
• Have a lightweight ERP for finance and supply chain but all the rest is on spreadsheets and paper. There is no audit trail, no integration and operations are continually interrupted by breakdowns as minimal preventative planning is in place. To cater for a short supply on spares, more stock than necessary is carried. (Level 2)
• Have a best of breed approach with ERP fully functional with a lightweight Maintenance System (CMMS) which is not integrated with the ERP. Stock is tracked in the maintenance system and not the ERP. No advanced Enterprise Asset Management functionality exists (Level 3).
• Have invested a huge amount for a state-of-the-art ERP, but as it is so costly and time consuming to roll-out, only Finance and Supply Chain have been deployed. Maintenance, Health and Safety (HSE), HR and Payroll are all on third party products. Processes are well defined but integration between the various systems are manual and with limitations. Integrated enterprise asset management (EAM) fails as the integration with finance and supply chain is not a reality. (Level 4).
• Have a state-of-the-art ERP which does offer integrated EAM or have successfully deployed several best-of-breed products and successfully integrated these. (Level 5).
In recent years there has been la lot of movement in the EAM space. Where traditionally, only the top ERP systems such as SAP, IFS and Oracle offered integrated ERP and EAM solutions, various other players have now mirrored this combined offering. One of the new kids on the block is Microsoft’s Dynamics 365 for Finance and Operations ERP. A cost-effective offering by Microsoft (#Microsoft) with and open, cloud-based architecture. Though Dynamics 365 ERP (#Dynamics365) does offer a maintenance module, integrated EAM is achieved via 3rd party EAM modules develop inside the Dynamics 365 architecture. This allows for one, cloud-based version of the truth.
Integrated Enterprise Asset Management (iEAM) offers functionality such as Asset, Maintenance, Failure, Warranty, Tyre management., Total Cost of Ownership tracking with integrated usage depreciation is a reality. Other key elements include IoT and mobile integration. I will post a short write-up on Integrated Enterprise Asset Management in the next few weeks as there are suppliers talking EAM, but not delivering on it.
A further progressive move in recent years is the wrapping of ERP and EAM into industry specialist verticals. This not only offers complete integration of ERP and EAM but is a further extension to add industry specific functionality. Common industry extensions and wraps are Fleet (#Fleet), Mining (#Mining), Rental (#Rental) and Real Estate management (#RealEstate). A good example of this can be found in the link below:
And finally (in recent years), we have seen the introduction of digital twins, a topic which I shall further publish on in the next couple of weeks.
So, my question to all my asset management colleagues and friends – on which maturity level are your asset management and what is your strategy to push to the next level and reap the benefits of integrated Enterprise Asset Management. Please complete our LinkedIn poll on this topic.