To help organizations select the enterprise asset management (EAM) software that best meets their unique business requirements, ARC Advisory Group released the Enterprise Asset Management Technology Evaluation and Selection Guide.
Equipment uptime, asset longevity, cost control, and safety are critical for high operational performance. For industrial organizations, these KPIs tie directly to shareholder value. For government entities, they can improve constituent satisfaction. However, good asset management requires a modern EAM system with the appropriate features and functionalities. This publication contains guidance and specific selection criteria that enable technology selection team members to find common ground with lower risk and faster time to benefit.
“The average age of assets continues to increase, driving the need for improved planning and execution. Also, new technology adoption in assets require specific spare parts, tools, skills, and documentation,” according to Research Director Ralph Rio, the author of ARC’s Enterprise Asset Management Technology Evaluation and Selection Guide. “Executive management and maintenance personnel need a modern EAM system to manage resources and improve return on assets.”
New Technology Adoption Drives Market Turmoil
Since computerized maintenance management systems (CMMS) and EAM solutions have been available for over thirty years, it would be reasonable to assume that this would be a relatively mature market. However, this is not the case. Of the more than 150 active companies that ARC tracks globally, about a third are new entrants and nearly that many have gone away recently. Relatively new technologies like cloud, SaaS, mobility, predictive analytics, and Internet of Things (IoT) provide new sources of value. At the same time, they introduce risk relative to technology and supplier selection. The selection guide helps mitigate that risk with guidance that enables stakeholders to make informed, fact-based business decisions that are likely to positively impact their career paths.
Selection Criteria Include Functions and Business Needs
EAM software spans both the functional needs of its users and business processes for the broader enterprise. Maintenance organizations require specific functionality to plan, execute, and manage their work. The software also integrates with enterprise-wide business processes for materials management, human resources, service contracts, and financial reporting.
ARC’s EAM Technology Selection Guide includes selection criteria for the key functions and associated business requirements. Asset Lifecycle Information Management (ALIM) includes the processes and technology for organizing, creating, controlling, managing change, and governance related to assets. Work Order Management includes creating, planning, scheduling, schedule optimization, execution, documentation, and tracking activities. MRO Materials Management includes procuring and managing inventory of the needed materials. Labor Management relates to needs assessment, training, certification, and scheduling of labor resources. Service Contract Management includes creating and managing contracts and service agreements. Financial Management functions include cost accounting, project costing, and integration with the organization’s finance system. Reporting and Analytics spans assessing needs, allocating resources, and managing performance.
For more information on this guide, please visit our Technology Evaluation section.