With any enterprise comes an abundance of critical assets: vehicles, production materials, products, machines, tools, appliances, and people—all of which need to be managed properly to avoid costly delays and malfunctions, meet compliance standards, and achieve financial goals. It comes as no surprise that the Global Asset Management market is growing. According to a market outlook published by Stratistics MRC, the Global Enterprise Asset Management is expected to reach $6.83 billion by 2022, growing at a CAGR of 11.1%. It also comes as no surprise that IoT and cloud services are a driving force behind enterprise asset management (EAM) market growth.
Manufacturing, medicine, energy, retail, transportation—almost every industry is being transformed by IoT-driven asset management. While some companies have seen great success in implementing and adopting IoT asset management solutions, a recent Business Performance Innovation (BPI) Network study found that less than 2% of executives at large companies have a clear vision of how they plan on using IoT to manage their assets or have already started implementing an IoT platform.
Why are so many executives having a hard time envisioning and implementing their IoT asset management solution?
One reason could be that executives and decision makers are overwhelmed by the challenge that company-wide IoT implementation presents. IoT often is thought of with a wide lens: monitor all your assets and devices, gather data on everything going on within a business, and automate what can be automated. For a large company, this could mean setting up hundreds of thousands of sensors and M2M devices, gathering so much data that hundreds of analysts and managers won’t know what to do with it all. Instead, executives should assess where they are and begin with a flexible, nimble implementation of an IoT asset management solution.
Here are three key considerations that should help enterprise executives and decision makers find a clear place to start adopting IoT-enabled EAM solutions.
What assets are critical to reaching your financial goals and why?
Obviously, all enterprise assets are important, but some cost more than others. For instance, an equipment manufacturer may be concerned with several different classes of assets, such as production materials, production equipment, and personnel. Typically, a large company will have some assets that are well managed and under control. In this example, we’ll pretend that personnel are well managed and materials come in on time and there’s little surplus after production. But every few weeks, a major piece of production equipment malfunctions and needs to be repaired, preventing the manufacturer from reaching financial goals. Instead of implementing a company-wide IoT asset management initiative, this given manufacturer should start with a predictive maintenance solution on production equipment.
By starting on a small scale, managers and executives have the opportunity to learn how to use IoT asset management technology without feeling overwhelmed and overburdened by data. Also, by isolating the assets that end up costing the most to manage, companies can see the fastest ROI, allowing them to invest in a more robust EAM solution down the road.
What assets are critical to compliance?
Compliance is another important factor for large companies to consider. In the medical industry, for instance, non-adherence to regulations has been estimated to cost the U.S. healthcare system between $100 billion and $289 billion annually, according to a review in the Annals of Internal Medicine. Banking is another industry whose revenue is stunted by compliance costs. According to International Banker, estimates show that tier one banks are spending well in excess of $1 billion a year on compliance-related costs.
In both cases, medical providers and banks have begun adopting focused IoT asset management solutions to not only adhere to compliance standards but also keep data reports as proof of compliance. Remote patient monitoring and IoT-enabled pill boxes are two simple ways that medical providers have used IoT to better track assets that relate to compliance standards, while banks have harnessed the power of AI to meet compliance standards related to transactions.
Chain of Command: Who should be alerted, when, and how?
A major stumbling block for companies who adopt IoT asset management solutions is what to do with the influx of data and information. Start by asking, “Who (or what) will be using this information?” In the case of the equipment manufacturer that plans on using IoT to maintain production equipment, an engineer probably should be the one alerted when it’s time for predictive maintenance.
The next question to ask is, “When should this person (or machine) be alerted?” If the piece of equipment malfunctions after reaching a certain temperature or threshold of operation, then an alert should be sent out before those conditions are met. Lastly, it’s important to ask, “What’s the best way to present this information to the relevant party?” If the alerted engineer does not have the data or instructions on hand to maintain the piece of equipment about to malfunction, then they won’t know what should be done. Conversely, if they arrive and are bombarded with every last detail, they may not know where to start.
Aeris IoT asset management solutions
Aeris’ IoT Asset Management platform focuses on making asset data readily available across various enterprise processes. Our solutions enable predictive maintenance, compliance, innovation, and speed to market―all while driving value to your customers. With our global operational capabilities, Aeris can track and support asset customers 24x7x365, regardless of location.
From a connectivity perspective, Aeris IoT Asset Management enables rate plan flexibility, maximizing the profitability of your business model. Additionally, Aeris APIs help automate your asset management program and increase visibility through a single interface. With our AerPort management portal, you’ll have access to a connectivity enablement platform that can reduce costs and improve efficiency with real-time visibility to devices and the network.
Contact Aeris to get started with your IoT-driven asset management solution.