ASP basics
Jack Smith, Senior Editor, Plant Engineering Magazine -- Plant Engineering, 10/1/2001
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What is an application service provider (ASP)? According to the ASP Industry Consortium (allaboutasp.org), a trade organization that represents ASPs, "Application service providers deliver and manage applications and computer services from remote data centers to multiple users via the internet or a private network. Obtaining these applications from an outside supplier is a cost-effective solution to the demands of systems ownership: up-front capital expenses, implementation challenges, and a continuing need for maintenance, upgrades, and customization."
A couple of examples immediately come to mind. Leasing the use of software from a provider is like leasing a car. You get the benefits of ownership without some of the problems that owning can bring. The ASP model is very much like the timesharing days when the data center hosted applications and each user paid for a slice of the computer time to use them. These were primarily financial and business applications. Much has changed. But the more things change, the more they stay the same.
ASPs give customers a viable option to obtaining and implementing complex systems themselves. "In some cases," says the ASP Industry Consortium, "ASPs even provide customers with a comprehensive alternative to building and managing internal information technology operations. ASP customers also are able to control more precisely the total cost of technology ownership through scheduled payment schemes. And with data processing performed off-site by a third party, organizations can focus on their areas of core expertise."
Using an ASP, small and midsized plants can make use of applications that, without an ASP, would involve massive investments in software, deployment time, and IT personnel. Plants can benefit from the efficiencies of integrated enterprise applications that were previously not cost effective to develop and use.
The role of an ASP is to make the management of information technology as transparent and reliable as possible. Plants who turn to ASPs often find better application reliability and availability than they experienced from their internal IT departments. Taking care of these information systems for other companies is the ASP's primary business. The ASP has the staff, expertise, and equipment to maintain and sustain many applications and services.
Types of ASPsSeveral types of ASPs are emerging. Pure-play ASPs license software from a number of vendors. They provide an integrated suite of off-the-shelf applications. Typically these applications can be deployed quickly and inexpensively.
Best-of-breed ASPs host, maintain, and distribute their products over the internet as yet another distribution channel. Typically, the hosted solutions are packaged. However, software providers may customize their products to fit individual needs.
Another emerging ASP model is the convergence of ASPs and electronic trading exchanges and/or marketplaces. Both pure-play and web-enabled software providers are exploring partnerships with these marketplaces and exchanges in order to offer services beyond the buy/sell model.
Some software providers actually develop applications with ASP delivery in mind. CMMS/EAM, e-procurement, project management, and ERP solution providers fall into this category.
CMMS/EAMCMMS software has been available for many years as plant-resident programs. However, some popular programs for helping plant engineers maintain their plants and manage their assets are moving to the ASP model. Typical CMMS/EAM programs available as ASP solutions have some of the following features that enable you to:
- Organize and track inventory
- Manage equipment costs
- Track equipment history
- Schedule preventive maintenance tasks
- Maintain confidential labor records
- Allocate resources
- Generate work orders
- Requisition and purchase parts
- Project equipment failure
- Assist in root cause failure analysis
- Export work orders
- Help investigate equipment downtime
- Identify hot maintenance spots in the facility
- Provide justification for additional resources
- Produce precise plant-level reports.
Many ASP solutions for CMMS/EAM are available for both Oracle and Microsoft SQL Server databases. Some have open system architectures, which enable them to share information and functionally integrate with other Microsoft Windows-based software packages.
E-procurementThe promise of e-procurement involves web-based purchasing. However, the concept goes beyond using the internet to order maintenance and repair parts. To be effective, a partnership, alliance, or some other positive relationship must be forged between the supplier and the plant. Some call these relationships supply chain management (SCM). SCM is an approach in which business partners agree to work closely together to bring greater value to the plant for the least possible overall supply cost. This includes order generation, order taking, and order fulfillment/distribution of products, services, or information.
ASPs can free plants to focus on key issues rather than application maintenance and ballooning IT costs. Instead of client/server applications, ASPs are web-based and require only an internet browser for access.
Project managementAnother high-demand software application for plants is project management. In the past, plant engineers would typically use off-the- shelf project management software. Now, even project management is available in the ASP model. When embarking on a large plant project, the organization and management of the project team can present as many challenges as the design and construction of the project. Some ASPs are now offering web-based document and business process management tools. Users interact through a variety of document, file, schedule, and communication management tools using an internet browser. These features, combined with comprehensive audit trail and progress reporting tools, provide a complete, end-to-end solution for the design and deployment of complex projects.
ERPEnterprise Resource Planning (ERP) is not new. Typically, ERP software enables plants to improve their efficiency by applying technology. The concept involves providing a common software platform that facilitates everything within a manufacturing business from order entry to billing. This includes planning, engineering, manufacturing, bill-of-material (BOM) generation and management, inventory, records, scheduling, report generation, and more.
Some ASPs offer web-based systems that include engineer-to-order, assemble-to-order, make-to-order, make-to-stock, and mixed mode manufacturing models. They allow plants to automate business processes, from quoting and estimating to sales order entry, procurement, job/work orders, shop floor routing, shipping and receiving, general ledger, and payroll. Typical offerings include configurable reports, Windows-based platforms, and user-friendly operator interfaces.
Selecting an ASPIf you are interested in implementing an ASP, you should do your homework. You should determine what applications you want to rent and which qualities of the application and/or ASP are important to you. Issues to inquire about include reliability, availability, security, management, and customer service. Determine what features are most important to you and choose your ASP based on who has the strongest offering of what you need.
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