Enterprise asset management secures a foothold in software user group agendas

The enterprise asset management (EAM) market, according to a fall briefing from Frost & Sullivan, is on the verge of two things: significant growth, and substantial change. The San Antonio-based analyst firm projects the EAM market to grow 8.9 percent through 2013, which is why IBM and several ERP vendors—including Infor and Oracle—recently made acquisitions in the space to posi...

02/01/2008


The enterprise asset management (EAM) market, according to a fall briefing from Frost & Sullivan, is on the verge of two things: significant growth, and substantial change. The San Antonio-based analyst firm projects the EAM market to grow 8.9 percent through 2013, which is why IBM and several ERP vendors—including Infor and Oracle—recently made acquisitions in the space to position themselves over best-of-breed providers.

“Major ERP players have obtained good functionality either by acquisition or organically,” says Aravindhan Ramakrishnan, senior research analyst, Frost & Sullivan. “From our perspective, convergence between ERP and EAM will be good for the whole market, offering better support and integration, and more rapid adoption of SOA [service-oriented architecture].”

In fact, enterprise system vendor SAP's user group now positions EAM in the top three areas of interest. “We're seeking more out of our SAP installations, specifically regarding EAM,” says Rod Masney, global director of IT infrastructure services for Toledo, Ohio-based O-I Inc., and chairman of Americas' SAP Users' Group—or ASUG.

“Rather than best-of-breed, we want to invest in the enterprise backbones that run our businesses. EAM enables you to run assets at higher utilization, ensuring you have visibility to what's going on in the facility, and achieving the 'perfect plant,'” continues Masney. “Investing in SAP is investing in the information supply chain.”

Plant maintenance has been one of the best-kept secrets in the SAP portfolio, Masney asserts. “It's been available since 1996. Now with xMII [SAP xApp Manufacturing Integration and Intelligence], you can link to partner solutions, data historians, and virtually anything that's OPC-enabled.”

Large automation vendors also are in the mix of top-tier players, adding value to EAM from the bottom up.

“We see devaluation of EAM as a stand-alone system in coming years,” Ramakrishnan explains—with the exception of brownfield sites. “Tier 3 players can compete in this market, as it is very price-sensitive,” he adds. “They also can compete in greenfield installations among small and medium-size businesses.”

Frost & Sullivan categorizes the market to include enterprise asset management; computerized maintenance management systems (CMMS); and plant asset management (PAM) systems.



Rod Masney, chairman of Americas’ SAP Users’ Group, says plant maintenance has been one of the best-kept secrets in the SAP portfolio.

Process industry giants in oil & gas, and power & utilities currently comprise better than half the market collectively (27 percent and 24 percent respectively), with power & utilities offering the most growth potential worldwide. Asia Pacific is the hottest market in new greenfield installations, capturing more than 60 percent of that market, and projected to grow the fastest at 13 percent through 2013.

Scalability, integration, and robust tools—especially around analytics, planning and strategy—are key issues as asset managers move toward becoming true knowledge workers, according to Ramakrishnan. “EAM will be part of the big solution,” he says, as companies seek to deal with asset management more comprehensively.

“Infor's vision is to go to the next level, with asset management and EAM being effective tools for driving costs out of the business,” says Marty Osborn, a senior director of industry product marketing for the ERP vendor, which acquired EAM vendor Datastream last year.

IBM, moving to leverage higher software margins in its growth strategy, acquired Maximo earlier this year. “Maximo had an ongoing relationship with IBM [spanning] 10 years, with more than 125 joint implementations,” says Eric Luyer, IBM Maximo asset management industry market manager.





No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Your leaks start here: Take a disciplined approach with your hydraulic system; U.S. presence at Hannover Messe a rousing success
Hannover Messe 2016: Taking hold of the future - Partner Country status spotlights U.S. manufacturing; Honoring manufacturing excellence: The 2015 Product of the Year Winners
Inside IIoT: How technology, strategy can improve your operation; Dry media or web scrubber?; Six steps to design a PM program
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
Special report: U.S. natural gas; LNG transport technologies evolve to meet market demand; Understanding new methane regulations; Predictive maintenance for gas pipeline compressors
Warehouse winter comfort: The HTHV solution; Cooling with natural gas; Plastics industry booming
Managing automation upgrades, retrofits; Making technical, business sense; Ensuring network cyber security
Designing generator systems; Using online commissioning tools; Selective coordination best practices

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me