Digitalizing asset and maintenance management involves several key dimensions:
- Strategy
- Organization
- Processes
- Data
- Technology
The SAP Intelligent Asset Management (SAP IAM) product portfolio offers an excellent foundation for this transformation.
The need for companies to embrace digital transformation to stay competitive is widely recognized today. The real challenge, however, lies in effective implementation. A wide array of technologies and approaches is available– ranging from the Internet of Things and Industry 4.0 to smart factories, cyber-physical systems, and 3D printing. While each of these offers significant potential, our experience shows that decision-makers often struggle to determine where to start amidst the abundance of options.
The first step towards digital transformation: looking inwards
With so many technologies and trends, it’s easy to feel overwhelmed. A change in perspective can help: Instead of rushing to implement an IoT scenario, companies should analyze each department individually. The goal is to identify specific challenges and determine where effectiveness and efficiency can be improved, often with the aid of innovative technologies. While this approach may seem less glamorous than testing drones in the lab, it is far more feasible and effective.
Every department holds levers to boost overall company performance – asset management included, though it’s often underestimated. In fact, this area presents particularly promising starting points, having received relatively little attention in recent years or decades. As assets become more and more integrated with IT, it’s essential that asset management evolves in step with this transformation.
Systematically identifying potential
There’s no one-size-fits-all answer to pinpointing the specific starting points in asset management – each company must identify these for itself. However, the Excellence Radar Maintenance offers valuable support by shifting the focus inward and onto the company’s own situation rather than external innovations.
Using 54 targeted questions, it evaluates a company’s maturity across 15 subject areas – highlighting where asset management is already strong, where it is average, and where there is an urgent need for improvement.
A closer look at the radar quickly reveals how interconnected everything is. Changes tend to impact multiple levels simultaneously, and technology is just one of five key dimensions of digital transformation. Strategy, organization, processes, and data are equally important, especially in areas like human resources.
The skilled labor shortage as a critical challenge
For many companies, attracting sufficiently qualified employees for asset management and maintenance is a major challenge. One key reason is the growing complexity of the role due to digitalization. Today’s machines, systems, tools, and vehicles are no longer purely mechanical or electronic. They increasingly incorporate digital hardware and software, raising the demands placed on employees.
At the same time, asset management is often not perceived as an appealing career choice by young professionals. Unfavorable working hours, in particular, can be a deterrent. As a result, already scarce qualified specialists frequently choose careers in other industries.
Strategies to address the skilled labor shortage
Those overseeing maintenance and asset management should tackle the skilled labor shortage in two ways:
- Increasing job attractiveness
Offering less shift work, less physically demanding tasks, more varied and challenging roles, and better career opportunities.
- Reducing personnel needs in asset management
Both strategies intertwine with and highlight the crucial role of digital technologies.
Systematic resource planning and mobile solutions
Software solutions can play a key role in modernizing asset management, for example, by predicting malfunctions at an early stage. This enables systematic planning of maintenance activities and resource deployment. The impact on employees is significant: As unplanned downtimes become the exception, the need for around-the-clock availability in maintenance teams is greatly reduced. Unpopular shift work can largely be eliminated, with only occasional on-call duties remaining.
Systematic planning also boosts efficiency and effectiveness, meaning fewer staff members are needed overall.
Another example is the use of mobile devices, which allow technicians to access all relevant asset information on-site and document data directly in the field. This significantly reduces administrative overhead and further increases operational efficiency, ultimately lowering personnel requirements.
Holistic digitalization in asset management
The use of mobile devices in asset management not only improves day-to-day efficiency but also enhances the appeal of the job and reduces staffing requirements. This leads to lower personnel costs as fewer employees are needed. However, it’s important to note that costs per employee may rise due to the higher qualification requirements.
Equipping teams with mobile solutions also strengthens overall maintenance performance. Asset availability, performance, and quality improve, ultimately contributing to greater value creation across the organization.
However, simply providing the right hardware and software isn’t enough. For mobile technologies and resource planning to be effective, strategy, organization, processes, and data must be closely aligned and integrated. Successful implementation also hinges on employee buy-in. If teams are not convinced of the benefits or if concerns are left unaddressed, the full potential of mobile solutions will remain untapped and the overall success of the initiative could be at risk.
Technology as an enabler, SAP IAM as the answer
As we can see, technology is just one of the five dimensions of digital transformation, but it plays a uniquely pivotal role. It not only enables the developments in terms of strategy, organization, processes, and data but also often serves as the initial catalyst for change. Looking ahead, technology’s influence as a driver of transformation will only continue to grow.
Given this central importance, IT in asset management must meet specific requirements. It should offer innovative functionalities for a wide range of use cases, without adding unnecessary complexity. Ideally, it should build on the existing ERP system, enhance the standard in a targeted way, and remain adaptable to future technologies.
SAP Intelligent Asset Management (SAP IAM) fulfills all of these criteria. Its product portfolio comprises five cloud solutions:
Each of these solutions offers distinct functionalities while accessing a shared database. They can be deployed individually or seamlessly integrated for a comprehensive, end-to-end approach.
SAP Intelligent Asset Management solutions at a glance
- Maintenance Management: Planning and executing corrective and preventive maintenance activities
- Condition Monitoring, Prediction and Simulation: Advanced approaches for predictive maintenance, simulation, and maximizing asset uptime
- Asset Strategy and Performance: Developing and managing strategies to boost reliability, ensure safety, cut costs, and mitigate risks
- Asset Information Collaboration: Tools for seamless collaboration among stakeholders such as operators, OEMs, and service providers
- Asset Central Foundation: Unified asset data model and digital twin for integration, collaboration, and consistent data
- Mobile Asset Management: Empowering field service operations and workflows
Roadmap for digital transformation
To determine which solution should be implemented, when, and how, it is essential to take a closer look at the results of the Excellence Radar Maintenance. From the identified potentials, concrete scenarios can be developed. For each scenario, the necessary digitalization steps can be defined. Once the needs are clear, the next step is to assess the capabilities of the existing infrastructure and identify areas for improvement.
While this process may sound straightforward in theory, experience shows that details often determine success. For example, the value of mobile solutions depends heavily on user adoption, and adoption improves significantly with a high-quality user experience.
Our checklists on various topics help ensure that all relevant aspects are considered. For a truly tailored evaluation, however, custom workshops with an experienced partner remain the most effective approach.
Review your mobile maintenance with our checklist
Want a better idea of how your maintenance strategy is progressing in its digital transformation? Start with our checklist!
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