The enterprise asset management (EAM) software market is growing at a rapid rate.
It’s on track to become an $8 billion industry by 2024. Many global enterprises are investing in EAM software, capitalizing on its huge benefits.
But what types of enterprises see the most value from it? Who is using it most often? What challenges do they have? And which industries do they represent?
If you’re still wondering whether EAM software is the right fit for you and your organization, see if you identify with these common users.
Who uses EAM software?
Managers of growing enterprises seeking transparency and accountability
Although large-scale industries have traditionally been the primary users of EAM software, smaller and fast-growing enterprises (SMEs) are catching on quickly.
In a MarketsandMarkets forecast for the period 2019 to 2024, EAM adoption in the SME segment is predicted to grow at a higher rate than the large enterprise segment.
As SME managers operate under more constraints, their goal is to gain high efficiencies and save maintenance costs by preventing equipment breakdowns and improving asset life. Some already have experience with computerized maintenance management using CMMS software, but are ready for a more robust solution.
The introduction of cloud-based EAM software is also a welcome trend for SMEs who don’t have to invest in additional hardware. This gives them the opportunity to go mobile, allowing them to give their employees more flexibility to perform maintenance tasks remotely.
Managers of large, asset-heavy enterprises
Large enterprises with multiple locations, sites, and physical assets also rely on EAM software to streamline their operations and see the big picture.
Managers of these enterprises want to gain similar benefits as their peers in SMEs, but they may be more concerned about using asset management details to inform business strategy. They want to track KPIs related to asset performance, fleet, or facilities. They also want to integrate multiple functions — such as work order management, inventory management, maintenance activities, reporting, and collaboration — into a cohesive system. This is where they see the biggest benefits from EAM software.
Consider Metro Group, a metal recycling and transloading company with six locations and multiple subsidiaries. In addition to tracking their assets, they also wanted to glean strategic insights that would help refine their processes. While an EAM software solution reduced their unscheduled maintenance by 67%, it also gave them access to business intelligence that enabled them to improve their KPIs.
Business leaders with a focus on regulatory compliance
In heavy machinery industries such as construction and manufacturing, assets need to comply with safety codes and industry regulations. EAM software helps maintenance managers in these industries comply with these regulations and avoid expensive penalties.
For instance, DeFoe Corp, a heavy highway contractor, had to meet numerous regulations for their cranes, including complying with American National Standards Institute (ANSI) safety codes, state regulations, manufacturer recommendations and OSHA and NYC Department of Buildings Crane & Derrick Division regulations.
Using EAM software helped them with regular inspections and services, saving them potential fines that could have ranged from $5,000 to $10,000 per incident.
But EAM software isn’t just for maintenance managers.
It’s also beneficial for corporate real-estate leaders accountants who need to comply with the new Financial Accounting Standards Board (FASB) lease accounting standards. These new standards require companies to report operating leases in their financial statements and provide more detailed information about every asset.
For example, they now need to be able to estimate the fair market value and useful life of assets. Enterprise asset management solutions can take care of these calculations and give greater visibility into this complex data.
Business leaders preparing their enterprise for Industry 4.0
We’re in the middle of the fourth industrial revolution, and most companies are gearing up with digital technologies that will set them up for success in this new age.
For instance, using IoT sensors to connect and gather data from systems is expected to deliver productivity gains of more than $3.7 trillion. As IoT technology becomes more affordable and readily available, more companies are investing in it.
Enterprises are also exploring other technologies, such as artificial intelligence and data analytics, as part of their Industry 4.0 roadmap.
Enterprise asset management software consolidates all their assets, systems and data into one place while allowing them to easily integrate with emerging technologies.
This makes it possible for maintenance professionals to shift from reactive and preventive maintenance to predictive maintenance.
Maintenance managers and technicians in the field
Maintenance managers tend to be the primary users of asset management software, as they are responsible for asset health and implementation of maintenance programs. For example, they use EAM software to roll out preventive maintenance schedules.
Other users of EAM software include reliability managers, facility managers, safety supervisors, inventory managers, line supervisors, and machine technicians. Technicians, for instance, are responsible for executing work orders and submitting task reports.
As EAM offers visibility into key metrics, it’s also used by procurement, materials management, and accounting departments. Accounting teams use EAM to plan budgets, comply with regulations, and prepare documentation for audits.
Data analysts use the consolidated information available in EAM software to analyze asset life cycles and improve workflows. Business leaders who want to make timely, informed decisions with real-time data also use EAM software and its reporting features.
EAM software trends and industry outlook
The MarketsandMarkets report calls out the top users of EAM systems as energy and utilities, government and defense, and manufacturing. All these industries are asset heavy and have naturally gravitated towards using EAM solutions. These are also industries that have traditionally allocated higher budgets for digitizing their operations and asset management.
Other industry verticals like health care, transportation and logistics, and construction have been slower to implement enterprise asset management solutions, according to a recent McKinsey analysis, but they’re catching up.
Getting started with EAM software
Regardless of your role, industry, or company size, you need to manage your assets efficiently. If you want to extend the useful life of your assets, get a better handle on your total costs of ownership and increase transparency and accountability across your organization, you need to invest in EAM software. ManagerPlus offers powerful, lightning-fast, cloud-based enterprise asset management.
We don’t just deliver software — we deliver solutions to take your enterprise into the future.
Discover why top companies in construction, fleet, manufacturing, and facilities trust their most valuable assets to us. Schedule a free live demo.