Asset lifecycle management: challenges and opportunities in the railway sector

Paving the way to a sustainable future with SAP technologies 

The railway industry is in a constant state of change. With the increasing demand for more efficient transport, the focus on sustainability and the need to integrate innovative technologies, the challenges in asset lifecycle management (ALM) are immense. The lifecycle of railway infrastructure, rolling stock, energy supply systems and real estate is complex and requires precise planning and a holistic approach to both optimise operations and create long-term value.

In this article, we highlight the most important challenges in asset lifecycle management in the railway industry and show how SAP technologies can offer an efficient and future-proof path. 

The complexity of infrastructure

Infrastructure companies are also large construction companies that have to manage a large number of projects. In order to be able to plan inventories, infrastructure companies need to know the exact condition of their infrastructure. The infrastructure of many railway companies is outdated and, at the same time, the rail network is constantly being expanded. This leads to an increased investment volume that needs to be managed. In addition, maintenance costs are also increasing. Railway infrastructures are multifaceted and demanding – they include everything from track systems to signalling systems, bridges and tunnels. The challenge is not only to maintain this infrastructure, but also to continuously modernise and further develop it. Precise and forward-looking planning is essential, especially against the backdrop of ever more demanding operational dynamics and increasing expectations of sustainable mobility.

The life cycle of these assets is long and they are often maintained over decades. To maximise this efficiency, it is crucial that all relevant data is brought together in a central system that provides real-time information and enables a proactive maintenance strategy. This is one of the strengths of SAP S/4HANA and SAP Intelligent Asset Management (IAM), which provide a modern, data-based view of the infrastructure and thus create the basis for predictive maintenance and efficient maintenance processes.

Rolling stock: the pulse of railway operations

Rolling stock is the dynamic part of asset management. In an ever-expanding network with tight intervals, maintenance must be managed efficiently and closely dovetailed with railway operations. Trains, locomotives and wagons not only have a significant impact on operations, but are also an important cost factor. The demands on maintenance are high, as delays or breakdowns can directly affect the timetable and operational efficiency.

A growing trend in the industry is the use of predictive maintenance, which uses real-time data and analyses to anticipate when maintenance work is required before a breakdown occurs. This not only saves costs, but also increases vehicle availability. In many companies, the maintenance mix (reactive, preventive, condition-based, preventive maintenance) is therefore changing in favour of preventive maintenance.

Energy: focus on sustainability and efficiency

In the age of climate change and the energy revolution, the topic of energy supply and management is becoming increasingly important in the railway industry. Both the trains themselves and the infrastructure – from the power supply to the air conditioning systems in railway stations – require a reliable source of energy. At the same time, the pressure to reduce CO₂ emissions and optimise energy consumption is growing.

By using SAP Energy Management, railways can monitor their energy consumption in detail, recognise bottlenecks at an early stage and develop intelligent control that both reduces costs and contributes to achieving sustainability goals. SAP helps to maximise the use of renewable energy sources and increase the energy efficiency of the entire operation.

Real estate: more than just a location

Stations, depots and other infrastructural facilities in the railway industry are not only functional assets, but also economic assets. Many railways in Europe manage large property portfolios which, in addition to operations, also offer sources of income such as retail and property utilisation – meaning that commercial and technical property management are interlinked.

Property management is a complex task. SAP Real Estate Management offers a powerful platform for efficiently managing real estate throughout its entire lifecycle – from planning and construction to maintenance and utilisation. By integrating this technology into their business processes, railways can not only maximise the value of their real estate, but also improve operating costs and maintenance efficiency.

Data analytics, cybersecurity, regulatory requirements and IoT 

Digitalisation in the rail industry opens up many new opportunities, but also places increased demands on data security, regulatory requirements and the integration of new technologies.

• Data analytics: Collecting and analysing large amounts of data enables rail operators to make informed decisions, optimise maintenance cycles and make operational processes more efficient. With solutions such as SAP Analytics Cloud, companies can gain valuable insights from their data and develop data-based strategies.
• Cybersecurity: Railway operators are increasingly the target of cyber attacks. Protecting critical infrastructure is therefore essential. With solutions such as SAP Enterprise Threat Detection, SAP offers modern security mechanisms to recognise and ward off threats at an early stage.
• Regulatory requirements: National and international regulations require precise documentation and compliance with standards. SAP Governance, Risk & Compliance (GRC) ensures that companies fulfil regulatory requirements while maintaining efficient processes.
• Internet of Things (IoT): Sensors and IoT technologies are revolutionising asset management in the rail industry. SAP IoT makes it possible to collect data on the condition of railway infrastructure and rolling stock in real time in order to implement predictive maintenance and intelligent control systems.

SAP technologies as a solution to the challenges of asset lifecycle management

SAP S/4HANA: A standardised platform for asset management

The integration of SAP S/4HANA enables a complete view of all operational and financial data relating to assets. This central platform forms the basis for effective management and optimisation of railway infrastructure, rolling stock and real estate. By linking real-time data from various sources, SAP provides a transparent overview and thus supports well-founded decisions over the entire life cycle of assets.

SAP Service and Asset Manager (SAP SSAM) 

This mobile solution is particularly interesting for the railway industry, as it enables service technicians in the field to access all relevant information relating to maintenance, inspection and the operation of infrastructure and rolling stock, regardless of their location. In an environment where maintenance teams often have to work across large geographical areas and respond to disruptions at short notice, mobile access to up-to-date data is a crucial efficiency factor.

Thanks to the seamless integration with SAP S/4HANA and SAP Asset Central, employees can access work orders, technical object data, checklists and spare parts lists in real time – even when there is no internet connection available. This is particularly relevant in the railway context, for example when working along remote sections of track or in tunnels, where mobile network coverage is often not guaranteed.

SAP Asset Performance Management (SAP APM)

SAP APM is a powerful solution for improving asset performance and reducing downtime. The platform analyses real-time data from rail assets and provides targeted recommendations for optimising maintenance strategies. By integrating with existing SAP systems, SAP APM enables seamless monitoring and improves the safety and longevity of railway infrastructure and rolling stock.

SAP Business Network Asset Collaboration (SAP BNAC) 

SAP BNAC offers a platform for secure and efficient collaboration between different players in the railway sector. Through the structured exchange of asset data and maintenance information, SAP BNAC improves transparency and efficiency in maintenance. This facilitates collaboration between railway companies, suppliers and service providers and helps to optimise the availability and performance of the entire infrastructure.  

SAP Business AI: Joule 

SAP Joule is an AI-powered platform that supports companies in the railway industry in data-based decision-making. By using artificial intelligence, SAP Joule helps to perform complex data analyses, optimise maintenance decisions and make predictions about the condition of assets. This enables more precise planning and reduces unplanned downtime, which significantly increases operational efficiency.

Other relevant SAP solutions for rail asset management are SAP RSH for digital resource deployment planning, SAP FSM for field service management, SAP IBP for maintenance planning and SAP LAM for linear asset management.

Best Practices: Successful SAP implementations in the railway industry

For example, Deutsche Bahn has undertaken a comprehensive modernisation of its IT infrastructure in recent years, which includes the use of SAP technologies, including S/4HANA and predictive maintenance. In 2019, SAP was named as an important partner for Deutsche Bahn in the area of predictive maintenance. According to SAP, the platform is used to reduce maintenance costs while minimising rolling stock downtime.

In the Nordic countries, on the other hand, several rail operators have used SAP Energy Management to optimise their energy supply and reduce CO₂ emissions. A good example of this is Swedish Railways (SJ), which is focussing on improving its energy data, increasing efficiency and reducing CO₂ emissions.

An integrated approach for a sustainable future 

The challenges in asset lifecycle management in the railway industry are manifold – from infrastructure and rolling stock to energy and real estate. The key to success lies in the integration of innovative technologies that make it possible to efficiently manage and optimise assets throughout their entire lifecycle. SAP offers powerful solutions that enable railway operators to master today’s challenges while laying the foundations for a sustainable and future-proof future.

A decisive outlook lies in the further development of new technologies such as artificial intelligence (AI), the Internet of Things (IoT) and digital twins. These technologies will revolutionise the way railways manage their assets. Intelligent systems will make it possible to further automate maintenance processes, increase operational efficiency and control energy consumption more precisely. AI-supported analyses could help to identify infrastructure problems at an early stage and provide automated solutions.

The future of the rail industry will be characterised by data-driven decision-making and sustainable innovation. Companies that invest in modern technologies today will create a strong foundation for long-term success and a resilient, efficient railway industry of tomorrow.