A Complete Guide To Enterprise Asset Management

What Is Enterprise Asset Management (EAM)?

Enterprise asset management (EAM) involves using systems, sensors, tools, and software to maintain, control, and optimize business assets. EAM enhances operations, boosts asset performance, and extends lifespan.

EAM is used to plan, execute, and maintain projects and activities most relevant to your business. 

Manual EAM

Historically, EAM relied on manual methods like spreadsheets and physical inspections. While effective in their time, these methods are prone to errors, inefficiencies, and data silos.

Common challenges of manual EAM include:

• Missed maintenance tasks and unexpected equipment failures.
• Costly downtime due to outdated information.
• Difficulty tracking asset history and analyzing performance trends.

EAM Software

Modern EAM software automates asset management, offering tools to:

• Centralize asset data.
• Schedule and track maintenance tasks.
• Manage work orders efficiently.
• Analyze performance metrics to drive data-informed decisions.

This streamlined approach reduces costs, optimizes asset utilization, and extends lifespans.

Why Is Enterprise Asset Management Important? 

Enterprise asset management (EAM) is essential for businesses aiming to enhance efficiency, reduce costs, and remain competitive. Implementing EAM strategies unlocks several key benefits, including: 

Future Trends in EAM

Emerging technologies are reshaping enterprise asset management (EAM), driving efficiency and smarter decision-making. Key advancements include:

• AI and Machine Learning: Predictive analytics and automation use historical data to forecast equipment failures, reducing downtime. Machine learning algorithms improve over time, enhancing asset performance tracking and optimization.
• Internet of Things (IoT): IoT sensors connect assets to systems like a CMMS, providing real-time data on performance and conditions. This enables remote monitoring, condition-based maintenance, and proactive issue resolution.
• Mobile Capabilities: Mobile EAM applications enable technicians to access data, complete work orders, and update records on the go, improving workflow efficiency and reducing response times across locations.

Key Components of Effective EAM

Work Order Management

EAM solutions simplify work order management by handling maintenance requests, scheduling appointments, and tracking repairs. This reduces manual effort and streamlines operations, allowing employees to focus on critical tasks like repairs and replacements instead of inputting and tracking data.

Asset Lifecycle Management 

Effectively managing your physical assets is essential for operations, no matter the size of your business. Asset lifecycle management involves tracking assets from procurement to decommissioning, ensuring optimal performance at every stage. Using asset lifecycle management features can give you insights into performance and costs while reducing downtime. Implementing best practices helps extend asset lifespans and optimize spending.

EAM systems address common challenges, such as inconsistent data, unexpected failures, and inefficient maintenance schedules, by centralizing data, enabling real-time updates, and offering condition-based monitoring to maximize return on investment.

Labor Management

EAM solutions streamline labor management by automating repetitive tasks like scheduling, tracking employee hours, and managing contracts. They also help monitor contractors and technicians with tools to adjust schedules, audit performance, and track progress. Advanced features support applicant tracking, prospect assessments, and employee certifications, reducing time spent on administrative tasks and improving overall efficiency.

MRO Inventory Management

Managing stock and inventory is crucial for businesses. Effective EAM solutions include robust MRO (maintenance, repair, and operations) inventory management features for tracking production schedules, managing shipments, and ensuring operational readiness. These tools optimize inventory for goods sold and parts needed to maintain your business’s equipment and facilities.

Contract Management

Manually managing contracts can be time-consuming, especially as your business grows. EAM systems simplify this by providing tools to draft, track, and manage agreements with employees, vendors, and partners. Features include compliance tracking, expense monitoring, and renewal alerts, ensuring your business stays organized and efficient.

Analytics and Reporting

Analytics and reporting are essential for running a competitive modern business. Without trustworthy and reliable analytics, it becomes increasingly challenging to determine which areas require more attention. EAM solutions provide valuable data-driven insights into asset performance, operational efficiency, and inventory statuses, helping you identify areas for improvement.

With reliable analytics, you can pinpoint where downtime affects performance, evaluate service provider quality, and uncover trends critical to achieving business goals. EAM tools allow you to track key performance indicators (KPIs) across labor, assets, and tasks while utilizing custom tracking tags, reports, and dashboards to monitor progress in real-time.

Financial Management

EAM software offers powerful tools to track spending, manage budgets, and optimize resource allocation. With real-time visibility into operational costs, inventory expenses, and investments, asset management systems help managers stay on top of financial goals and avoid unnecessary overspending.

For example, businesses using EAM systems often see a significant reduction in unnecessary maintenance costs due to improved tracking and resource management. These insights allow managers to identify inefficiencies, reduce waste, and ensure financial plans stay on track without surprises.

By centralizing financial data, these platforms simplify decision-making and provide actionable information, allowing you to focus on strategic growth while maintaining a strong financial foundation.

According to one report, the global EAM market size was valued at $5.74 billion in 2022 and is expected to grow at a compound annual growth rate of 16.9% through 2030.

This growth indicates that more organizations recognize the financial benefits of implementing EAM systems.

Another study by SelectHub highlights that EAM software can lead to increased operational efficiency and optimized maintenance schedules, further contributing to cost savings.

These statistics demonstrate the positive impact of EAM software on financial management, aligning with managers’ goals to enhance efficiency and reduce costs.

Maintenance Planning

A key component of successful EAM is maintenance planning, which involves the strategic development and execution of preventive maintenance schedules to prevent breakdowns and maximize asset lifespans. EAM software plays a crucial role in this process by automating the creation of work orders, optimizing maintenance frequencies, and integrating condition-based monitoring tools for real-time insights into asset health.

By shifting from a reactive to a proactive maintenance approach, companies can reduce unscheduled downtime, improve asset reliability, and optimize maintenance budgets.

Benefits of Enterprise Asset Management Software

Increased Operational Efficiency

EAM systems are powerful tools for improving operational efficiency by automating repetitive tasks and streamlining processes. These platforms eliminate the need for manual labor, reduce errors, and free up time to focus on strategic priorities.

With EAM, businesses gain a comprehensive overview of their operations — from tracking assets and inventory to managing contracts and employee timesheets. This visibility helps managers identify inefficiencies, lower the total cost of ownership, and improve team performance.

One satisfied manager shared, “As we have evolved our processes to improve how we manage information, we continue to be pleasantly surprised by the functionality that ServiceChannel provides, and the inherent adaptability of the system.”

By minimizing human error and providing real-time insights, EAM solutions empower organizations to allocate resources more effectively, boost sustainability efforts, and drive long-term success.

Optimized Inventory Management

Managing your company’s inventory, suppliers, and even prospective partners is a full-time job. An EAM solution is ideal for those seeking a new method of optimizing inventory management. From sourcing materials and equipment to managing stock and inventory, an EAM solution can help with all aspects of inventory management. 

With an EAM system, you can track item statuses, availability, and even shipping times with just a few clicks. You can also track inventory planning, financial budgets, and logistics to ensure you make the right decisions with suppliers and manufacturers every step of the way.

Use predictive bottlenecks to determine the best action when procuring new inventory or searching for new suppliers and/or prospective business partners. Optimize the overview of the current supply chain you use to order and receive inventory to ensure it runs smoothly and on time. Streamline your inventory operations with a highly customized EAM solution for your business needs. 

Enhanced Maintenance Management

An EAM system can reduce the overall maintenance and ongoing service costs. This solution is ideal for reducing maintenance costs while tracking and managing maintenance requests, tasks, and completed jobs in one central location.

EAM improves maintenance management by reducing the time required to manage maintenance requests, maintenance workers, and even contractual agreements. This reduces the total cost of ownership per location. 

Many asset management systems integrate with predictive maintenance tools, providing valuable metrics and alerting you of potential issues before problems escalate. Enhanced maintenance management solutions integrated with EAM software can ultimately help your business become more productive and reduce unplanned downtime for emergency maintenance, repairs, and replacements. 

Extend Asset Lifecycle

Extending the usable life of assets maximizes their value and minimizes replacement costs. EAM systems simplify this process by tracking maintenance schedules, monitoring performance, and ensuring compliance with environmental health and safety (EHS) requirements. By proactively maintaining assets, your business can reduce downtime and prevent costly breakdowns.

With real-time insights into performance and maintenance needs, an EAM solution helps organizations identify inefficiencies and make data-driven decisions to keep equipment in service longer. Extending asset lifecycles also contributes to sustainability by reducing waste and environmental impact. 

Reduced Maintenance Costs

Asset management systems reduce maintenance costs by centralizing asset tracking and maintenance requests. Organizations can use real-time data to identify high-maintenance equipment, prevent costly breakdowns, and avoid unnecessary repairs or replacements.

With EAM tools, you can keep operations running smoothly without shutting down entire systems for diagnostics. This approach optimizes resource allocation and provides long-term cost savings.

Accessible from Anywhere

Enterprise asset management software is ideal for managing business operations on the go from anywhere. Modern EAM platforms can access systems remotely via the cloud and over mobile devices, providing the ability to manage and update the system anywhere there is an internet connection. 

Rather than feeling confined to one central location to manage your business’s assets, EAM solutions make it easier to do your work wherever you go. This enables teams to operate proactively from anywhere instead of reactively. They spend less time putting out fires and more time focusing on the customer experience and business growth. 

Challenges in EAM Implementation

Rolling out an EAM system has several advantages, but the process often comes with challenges. Proactively addressing these obstacles can help drive a smooth transition and promote long-term success.

Employee Resistance to Change

Introducing new systems can shake up established routines, leading to employee resistance. To overcome this, involve your team early in the process. Offer comprehensive training and highlight how the system benefits their daily work. Creating buy-in and demonstrating clear value can ease the transition.

Data Migration Difficulties

Migrating existing data into a new EAM system can be complex, especially if records are incomplete or inconsistent. Start with a thorough data audit, cleaning up errors and redundancies. Engage experts or your software vendor’s support team to guide the process and ensure a complete migration.

Selecting the Right Software Vendor

With so many available options, choosing an EAM vendor might seem overwhelming. Focus on finding a solution that aligns with your organization’s specific needs and provides scalability for future growth. Seek a vendor with proven expertise, strong customer support, and the ability to integrate with your existing systems.

What Enterprise Management Software Do I Need?

There are various types and formats of enterprise management software, and getting an ideal experience starts with understanding the kind of software you need. Generally, there are three forms of EAM software: cloud-based, on-prem, and hybrid, each with its own use cases and benefits.

Cloud-Based EAM Software

Cloud-based EAM software is a SaaS (software as a service) product type. You operate it entirely on the vendor’s servers, not on your own machines. It usually functions as a site or a mobile app (or both) that your team can access from anywhere.

Cloud-based EAM software allows your team to do everything remotely, from putting in work orders to tracking projects to scheduling maintenance and delegating tasks. It’s ideal for teams operating in multiple locations and has the added benefit of an easy and cost-effective startup experience.

You are, however, at the mercy of how well the vendor’s servers operate. You also have less control over the tool from a security standpoint.

On-Prem EAM Software

In contrast to cloud-based software, on-prem EAM software is operated entirely on your premises. You install it on your machines, which only works within your facility. You usually purchase these tools with a one-time licensing fee rather than an ongoing subscription fee.

On-prem EAM software doesn’t have the mobility or convenience of cloud-based software, so it’s not recommended for multi-location EAM teams. These tools are also generally costly and complicated to set up, so they require an investment and aren’t a purchase you can try on a temporary basis.

On the other hand, it offers far more control and customization, so you can customize the software to fit your needs. As a closed system, it also offers greater security capacity.

Hybrid EAM Software

In hybrid EAM software, you have a combination of cloud-based and on-prem services. Your facility hosts some data and operations while the vendor manages others remotely. For example, the software could primarily run on-prem, but it may also have a cloud-based mobile app for certain remote tasks.

A hybrid enterprise asset management tool can offer the benefits and challenges of both on-prem and cloud-based EAM software. Like on-prem tools, it usually has a complex setup process, but it offers some customization capabilities while allowing users to use the tool from anywhere.

How to Maximize Operations With EAM Software

After you figure out what EAM is, you can leverage some of the following tips to optimize your enterprise operations using your EAM solution.  

1. Identify All Assets Within Your Organization

Gather as much information as possible about all assets owned by your company. Review every manual log, spreadsheet, or other documentation record around assets. Your work at the beginning will go a long way toward making your EAM software more effective and efficient.

2. Tap Into Your Current Enterprise Application

Integrate your existing solutions into your new EAM system. That way, you have a constant flow of information moving through your software. In addition, you can cut down on information silos and improve the accuracy of the data held within your EAM platform.

3. Keep Up With Warranty Agreements

Ensure that your EAM system tracks warranty information. This ensures that you always have a way to refer to essential elements, such as when the policy expires. You don’t end up paying for something that falls under the warranty terms or allow it to terminate before you can use its full benefits.

What Is the Difference Between EAM and CMMS?

Whether you are interested in a computerized maintenance management system (CMMS) or believe your business will benefit more from an EAM solution, it is imperative to understand the differences between both.

CMMS is typically considered part of an EAM solution, as CMMS solutions can help with tracking employees, registering assets, and even managing work orders. When comparing EAM vs. CMMS, CMMS is typically considered a component of a larger EAM system or solution.

How Does EAM Fit Into My Industry?

Enterprise asset management can be critical for a wide range of industries. It can minimize long-term costs, control cash flow, and minimize risk for a problem that pauses operations. Let’s look at how enterprise asset management software can benefit individual industries.

Retail Enterprise Asset Management

Retail businesses, especially large retail enterprises, need EAM to minimize costs and stay operational. Enterprise asset management offers benefits that help you effectively manage and maintain your stores, warehouses, properties, and equipment, such as forklifts.

Food Service and Restaurants

A single malfunction in your kitchen, like an oven failure, can cost you far more than the price of the repair — it can also cost you operational time and customer loyalty. Enterprise asset management for restaurants can help you stay on top of maintaining all your expensive equipment and restaurant facilities.

Grocery

Maintaining your assets and facilities for enterprise grocers should be a top priority. EAM lets you keep all your equipment and properties functioning well so you don’t have an unexpected repair cost at a difficult time in your balance sheet.

Financial Services

Maintaining the smooth operation of your technical equipment and facility is crucial in the financial services industry. You can use EAM to keep your facility and assets running smoothly and manage security-related tasks like maintaining security cameras.

Convenience Stores

Customers rely on convenience stores to have what they need in a hurry. If you’re not managing your assets properly and need to close unexpectedly, you stand to lose customer loyalty every time because they want their convenience store to be reliable. EAM can ensure that this happens as little as possible.