The introduction of an asset management solution requires many considerations
Many OEMs make a big mistake in their thinking when it comes to introducing asset management software. And we can well understand why. Because it sounds very tempting to introduce asset management software and thus solve many problems in one fell swoop. However, the decision to introduce asset management software is often made hastily. In addition, an analysis of what is to be achieved with the solution is neglected. As a result, poor results and dissatisfaction are inevitable.
Because not all OEMs are the same. Every company starts with different challenges and goals. That’s why you need to think carefully about which functions you need before introducing an asset management solution. The following questions will help you to find the asset management solution that suits your company.
1. what are your biggest challenges?
The first thing you should do is ask yourself which areas you want to improve. To do this, make a list of the biggest challenges for different user groups internally and externally.
Common problems of OEMs are, for example, that they
- do not have sufficient transparency for your own assets;
- do not have enough service technicians at all locations;
- knowledge gaps between employees.
This in turn means that they are unable to support their customers with their challenges. As a result, OEM customers often experience
- Downtimes in production that lead to penalties and loss of sales for the customer;
- late delivery of spare parts;
- to high storage costs.
Both you as an OEM and your customers face different challenges. With the help of asset management software, you can not only overcome your own challenges, but also respond to the needs of your customers.
"Think about which functions you need - and how you can meet the needs of your customers."
2. who uses your asset management software?
Next, you should consider who will be using the software. It is important to note that different benefits and requirements may apply depending on the user group.
Employees in the machine shop, for example, benefit from higher machine productivity as they can monitor machine operation and product quality more easily. Thanks to easily accessible documentation, they can find and repair faults more easily. This allows them to minimize downtime. Management can monitor the condition and performance of various assets at a glance. Both you as an OEM and your customers have access to data that helps you make strategic decisions about the direction of your business strategy.
The following questions can help you to define the requirements:
- Which of your employees and customers should use the solution?
- Do you need a user management system that allows you to assign different roles and editing rights?
- Is the solution used by different teams?
It can be useful to have a different view for each team so that users only see the information they really need. If different user groups at both the OEM and the end customer are using the solution, it is important to consider why they are using it and provide them with the information they really need.
3. what impact should the solution have on your business model?
Many companies forget to consider the impact on their business model. An often missed opportunity to set themselves apart from the competition. With an asset management solution, you have the opportunity to test additional business models.
For example, think about the following questions:
- Who else could benefit from the collected data or access to certain device functions?
- What additional value could be created if the data is enriched, e.g. by combining data from different machines, devices or sensors?
- What additional services that offer added value could be offered by using the same infrastructure?
From new billing models (payment per component or per use) to new digital services: the possibilities for your further development are manifold. So think in advance about the areas in which you would like to develop your company in the future.
4 Edge, cloud or both?
Another important point you should consider: Where should the software and data be stored? You either have the option of storing them in the cloud or processing them locally in the factory/on the local end device (edge computing). Both options have different advantages:
Advantages of the cloud
- Enables remote monitoring
- Access to information and data is possible from anywhere
- Performance and capacity can be scaled as required
Advantages Edge
- Useful when decisions have to be made in real time
- Latency delays can be minimized by processing close to the data sources
- Generally offers secure data processing, as the data is processed locally
Which of the two options is better suited to your company depends on the challenges and user groups that you identified in questions 1 and 2. In some cases, a combination of an edge and cloud setup is also the best solution.
5. is the software usable in the long term?
The manufacturing industry is changing at a rapid pace. You should factor these developments into your considerations and ask yourself whether your solution can still be used profitably for your company in five to ten years’ time and even beyond.
The following questions can help you:
- Are you tied to a specific provider with your solution?
- Do you have the option of switching to another provider in the future?
- Is your solution scalable so that it can be extended to other use cases?
- Can the solution be integrated with existing systems (ERP, CRM, PIM) in your company?
These questions show you how important it is to take a long-term view when selecting suitable asset management software. A solution that is the right choice at first glance can slow down your company in the future.
6. buy, build yourself or an interim solution?
The decision as to whether you buy an asset management system, build one yourself or use an interim solution depends heavily on the functions and use cases required. The financial budget also plays a decisive role. The arguments for each option are presented below.
Buy ready-made solution
Ready-made solutions are generally cheaper, but they offer less flexibility. This can mean that the software does not perfectly match your requirements. In addition, you only have limited influence on the further development of new functions and updates.
Develop yourself
Developing the software yourself offers you maximum flexibility. You can tailor the software precisely to your individual requirements. However, this makes development very time-consuming and cost-intensive, as you either have to provide internal resources or hire an external team.
Prefabricated software modules
Ready-made software modules offer an interim solution. You can adapt these to your needs in a relatively short time. This means that they are significantly more cost-effective than a self-developed solution and at the same time offer greater flexibility, a higher ROI and a faster time to market than the ready-made solution.
All options offer different advantages and disadvantages. However, to decide which option is best for your company, you need to consider which of these aspects have the highest priority for you.
The asset management software must fit the company
The introduction of an IoT asset management solution will bring your company decisive benefits in the long term – provided you choose software that suits your company. Therefore, take enough time to research and select the right solution.
