The goal is excellence but where is the starting line?
Our survey of senior executives identified three key challenges: asset ROI, asset data and asset management capabilities. Based on our experience supporting major enterprise asset management programs worldwide, we identified three leading practices that could help to create new value and transform asset management performance, now and in the future.
Leading practice 1
Leading practice 2
Leading practice 3
Align asset strategy to corporate objectives
It is critical to take a holistic, strategic approach to EAM, applying responsibilities across functional boundaries. Utilities should think holistically, designing and implementing a comprehensive approach embracing systems, people, processes and tools.
Three key pillars support a holistic approach:
Strong recognition and support at board and executive level
Leadership teams drive and promote the asset management agenda as an essential component of corporate strategy, and ensure it is integrated with customer, commercial and other key agendas
A clear line of sight between strategic objectives and asset management activities
The route from corporate objectives all the way to the physical asset is mapped out and established. Individuals and teams understand how their day-to-day actions align with long-term corporate goals
Long-term, strategic relationships with suppliers
The supplier relationship is focus on developing capabilities and optimizing value, based on a shared understanding of goals and supported by technology that enables the sharing of asset information. Incentive structures are based on success through interdependency.
“ To deliver optimum value, asset management needs to link effectively with the rest of the organization. This ensures that the asset advances corporate strategic objectives, and value isn’t eroded by conflicting functional priorities.”
Kristen Westall, EMEIA Regional Lead, EY
Make the data work for you
Data informs every management decision throughout the asset life cycle and supply chain. It needs to flow effectively and lead to actionable insight. Exercising tight planning and controls to manage data quality makes organizations far better equipped for timely, cost-effective interventions.
To turn asset management into asset excellence, leading organizations incorporate the following four data considerations into their asset strategy:
Treat data as an asset class
Data and data culture need to be key priorities for the organization. Data has strategic significance, can be leveraged and monetized, and requires appropriate management
Identify specific outcomes
- Identify, collect and standardize asset data critical to decision-making
- Establish governance and processes to manage information — how it is acquired, cleansed, stored, secured and evaluated
- Create a data-driven culture with accountability around data
- Take a commercial view of data and prioritize investment accordingly, balancing short- and long-term costs and benefits
Seek out further opportunities to exploit data in the organization
Data should be integrated across platforms — such as operational technology, finance and asset systems — to unlock additional insight and promote truly joined-up thinking
Pursue insight through enabling technologies and analytical capabilities
Organizations need to commit to consistent investment and development of enabling technologies across the P&U value chain
“ Improving asset information and data management remains a big opportunity. Proper risk assessment and mitigation can only be well understood if the right data exists to support it.”
Steve McCabe, Americas EAM Regional Lead, EY
Enabling technologies are becoming a key differentiator across the value chain
Revolutionize field force capabilities
Field force productivity plays a particularly significant role in the effective execution of asset management plans. But it is often hindered by a range of “human” factors — from site access and outdated ways of operating, to lengthy journey times and safety issues.
New technologies can help overcome these and other limitations and revolutionize many of the physical aspects of asset management while transforming the productivity, safety and job satisfaction of the field workforce.
Advanced enabling technologies are changing how field work is done, enabling real-time interaction with users, devices and systems, and allowing operatives to take on more of a decision-making role. Applying the right technology in the right way will boost the chances of reducing costs, maximizing ROI, maintaining operations and improving customer satisfaction.
Evolving technology and mobility revolutionize field force capability
“ The P&U sector is at the start of a journey that will see the workforce empowered and safety, compliance and productivity progressively transformed.”
Andre Winarto, Global Power & Utilities and Energy Knowledge Lead, EY