How does Enterprise Asset Management integrate with AIP?
Asset-heavy organizations must always manage their assets efficiently while maximizing returns on investments. And while there are many tools on the market today that make these difficult decisions more clear, understanding the difference between Enterprise Asset Management and Asset Investment Planning software can be challenging.
To add some clarity to the asset management software ecosystem, let’s review Enterprise Asset Management. Asset Investment Planning, and the value they create when integrated together.
Table of Contents
What is Enterprise Asset Management?
Enterprise Asset Management (EAM) systems are typically used to optimize the day-to-day operations. Work management, asset maintenance, planning and scheduling, supply chain management are just a few of the initiatives an organization would typically manage through their EAM.
Enterprise Asset Management systems leverage data analytics to extract insights from asset data. Once all asset data is centralized in an EAM, the system analyzes trends to indicate potential asset failures. With this information, organizations can schedule inspections or maintenance proactively, minimize downtime, reduce repair costs, and extend asset life overall.
What is Asset Investment Planning
Asset Investment Planning (AIP) differs from EAM largely in its scope. Where Enterprise Asset Management supports day-to-day operations, AIP supports long-term, strategic decisions typically pertaining to budget allocation and overall asset planning.
By collecting asset data, building asset models, and digitizing best-practices in the form of decision trees, organizations can use Asset Investment Planning to simulate how their entire asset fleet evolves over the next 10, 25, or 50 years. The AIP then shows the future performance of assets, finances, risk, and more.
Organizations can use the simulator to compare alternative strategies. For example, if an electric utility wants to reduce their wildfire risk, they can test investment scenarios like:
– Prioritizing the replacement of asset in high-risk areas.
– Investing in more vegetation management.
– Investing in more frequent inspections.
With Asset Investment Planning, organizations can repeatedly assess and adapt their strategic investments.
Benefits of integrating EAM with AIP
Integrating Enterprise Asset Management with Asset Investment Planning allows asset-intensive organizations to collect and combine data from their assets, finance, regulatory, and operations to unlock financial returns and risk mitigations across the asset lifecycle.
Cities, government agencies, utilities, and transportation can leverage benefits like:
Align Investment with Asset Health. Asset-centric, data-driven decisions replace assumptions, ensuring that organizations allocate investments to areas with the highest potential return at the right time and for the right amount.
Optimized Predictive Maintenance. Organizations must continuously improve predictive maintenance to keep it effective as asset performance trends change. Testing asset intervention strategies in the AIP based on EAM data ensures that predictive maintenance remains effective.
Optimized Capital Allocation. Aligning investment decisions with asset lifecycles and performance metrics enables organizations to maximize asset value while minimizing operational costs and long-term financial risks.
Streamlined Risk Management. Organizations can evaluate the financial and operational risk of their physical assets alongside investment risks. This holistic approach to risk management empowers decision-makers to implement proactive strategies that safeguard asset value.
Overall, integrating AIP and EAM supports the long-term financial health of your organization and its assets.
Integrating your Asset Management Systems
The asset management ecosystem is complex. And it seems like every few months there’s a new three-letter acronym to learn.
But combining your EAM with an AIP like Direxyon’s can bring tangible value to your organization.
Direxyon’s Asset Investment Planning solutions are the only asset-centric and user-configurable solution for capital planning and investment strategy. The solutions can integrate with Enterprise Asset Management and Asset Performance Management systems to create end-to-end asset lifecycle and investment optimization long-term.
Our flexible and transparent AIP lets organizations create digital twins, model assets, model decision policies, explore possible futures, and compare scenarios through customizable dashboards.
To learn more about how Direxyon can help you achieve your strategic goals, get in touch with us today.
