Intelligent Asset Performance Management
New Business Opportunities for Machinery and Equipment Manufacturers
Equipment reliability is one of the most critical areas of asset-intensive businesses. To keep their machines and business running many asset-intensive organizations are currently implementing intelligent asset performance management (APM) programs, which connect data and trigger actions via systems across the business. This offers new business opportunities also for machinery and equipment manufacturers.
Intelligent asset performance management requires collaboration
The recent Deloitte Insight Article highlights how the maturation of IIoT technology and lower-cost sensors enabling more data-driven decisions drive the development of APM programs in asset-intensive industries. A mature APM program takes a holistic approach connecting systems across the business, from enterprise resource planning (ERP), to safety and quality as well as inventory management helping to optimize maintenance, operations and asset investment decisions to drive financial results.
To harness its full value, organizations need to connect APM with data generated by connected assets across their value network to push insights more broadly throughout the enterprise, helping the entire business optimize planning and decision-making. As a result, APM programs are becoming intertwined with the organization’s business network requiring tighter collaboration among various groups, from asset owners to original equipment manufacturers, and third-party service providers.
Technological advances open new opportunities for machine manufacturers to collaborate with customers’ APM programs
For machinery and equipment manufacturers, the evolution of APM creates an opportunity for new business. Traditionally machinery and equipment manufacturers have built their businesses on selling physical assets. Manufacturers made the assets and customers operated them. Today, sensors, processors, software, and connectivity solutions are increasingly turning machines and equipment into smart and connected products that are embedded in customers’ broader operational systems.
Smart products enable collection, analysis and sharing of the huge amounts of data on equipment status, usage and health. Product data paired with advanced analytics creates new opportunities to improve and to support product functionality and performance. As a result, many manufacturers are leveraging new “as-a-service” business models and delivering outcomes rather than just the physical asset.
From asset provider to valued business partner
Due to the closer collaboration with the customer in APM programs there are far more chances for other cooperation activities with the customer as well. Through the collaboration and data generated from machines and customer’s processes companies can gain a deeper understanding of customer needs and interactions among input variables to optimize the overall business processes.
These new interconnections between machines, people, and processes yield opportunities. The asset intelligence gathered by the machinery and equipment manufacturer can provide insights on how to improve the future assets or how the asset can better interact with the customer’s business process to create more value. Moreover, data is also becoming the foundation for new software-based services that can further support the customer’s business processes.
Machine manufacturers need to embrace the change to harvest new business opportunities
The asset performance management open opportunities for machinery and equipment manufacturers to move up the value chain becoming a valued business partner that collaborates with the customer to drive business success. For many companies, this will necessitate significant changes for the entire organization.
Firstly, a mindset shift towards customer centric thinking is needed. To identify the new opportunities machinery and equipment manufacturers have to take a broader view of customer operations around the physical product. Secondly, seamless data and information sharing across value network actors and more sophisticated technological capabilities, such as cognitive and advanced analytics, are needed. This may require new skill sets at the organizational level.
Additionally, the transformation towards new outcome-based business models may influence the positions of machinery and equipment manufacturers with respect to their value chain stakeholders as well as challenge their existing functional structures and management. This requires thoughtful thinking of current operational procedures and processes.
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