Why is Smart Asset Management Becoming More Crucial as the Energy...

Why is Smart Asset Management Becoming More Crucial as the Energy Sector Evolves?

Energy CIO Insights | Friday, July 31, 2020

To stay competitive in today's changing market, energy organizations need to incorporate digital asset management capabilities that optimize their assets' availability, performance, and quality.

FREMONT, CA: Energy businesses with major facilities have been practicing enterprise asset management (EAM) for years. However, successful are the ones relying more on technology and smarter asset management — a need for staying competitive within a growing global competitive environment, amid added regulatory pressures, and aging infrastructures. Companies with large plants, facilities, and equipment are now facing a complex reality with energy consumption at its peak. As costs continue to take a larger part of the operating and maintenance budget, energy companies must focus on the challenge of managing assets in an efficient way.

Energy companies today are reassessing the traditional factors they use to decide the efficiency of assets. It's no longer enough to look at excessive inventory, downtime, and non-value-adding paperwork to reduce waste without integrating energy performance. The quest to improve value in business has led many CIOs to Top 10 Asset Management Consulting/Services Companies - 2019arrive at a conclusion to reduce costs, improve business processes and improve the overall return on assets (ROA), both physical and human, depend on technology. The energy businesses are incorporating more digital technologies, which makes comprehensive asset management possible. These digital technologies include data integration, data management, distributed control systems, and optimization applied to asset maintenance.

One of the latest innovations that is revolutionizing the traditional approach to energy asset management processes is the Industrial Internet of Things (IIoT). It enables machines and computers to monitor industrial operations using advanced data analytics for transformational business outcomes. IIoT-supported technologies include big data management, monitoring, viewing and reporting tools, asset maintenance optimization, and analytics. The benefits that come with digital asset management include cost optimization, reduced risks, increased operations flexibility, streamlined maintenance process, and extended lifecycle of energy assets.

Since the responsibilities related to asset management are evolving, documenting on paper or Excel sheets is not effective anymore. Companies need reliable data collection that is more transparent, flexible, and cost-effective. Managing lots of assets means working with huge amounts of data; therefore, to make the right decisions regarding the health of assets, energy asset managers also need detailed data analyses.

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