Learn More About Asset Performance Management Software
Who uses APM software?
Asset managers: Asset managers use asset performance management software to optimize and streamline maintenance activities, such as preventive maintenance, inspections, and planned downtime, and to identify opportunities to optimize the performance of the critical assets used by the company.
Operations: Operations teams and managers use asset performance management software to optimize asset allocation based on department performance, such as production and logistics. With this software, they can move assets to where the company will get the greatest productivity out of each asset and achieve ROI faster.
Accountants: Accountants use asset performance management software to track and analyze each asset's financial performance. This data is used to properly record depreciation, write off assets that are at the end of their life, minimize maintenance expenses, replace non-performing assets, allocate assets to proper locations, and achieve the fastest ROI possible.
What are the alternatives to APM software?
Alternatives to asset performance management software can replace this type of software, either partially or completely:
EAM software: EAM software enables businesses across multiple industries to acquire, manage, and analyze physical assets. Using a holistic approach helps optimize management strategies by tracking the lifecycle of all company-owned assets. EAM software aims to control and measure asset performance, maintenance costs, and usage across the company. This software type is most beneficial to companies from asset-intensive industries such as manufacturing, construction, energy, and utilities. The primary users of EAM software are maintenance teams who leverage the software to identify issues and perform inspections or repairs.
ERP systems: ERP systems are complete, integrated systems that manage all aspects of a production-based or distribution business. They align financial management, human resources, supply chain management, and manufacturing or distribution with the core function of accounting. ERP systems provide transparency into the entire business process by tracking all aspects of production or distribution, financials, and the back office.
Challenges with APM solutions
Asset performance management tools can come with its own set of challenges, the most important being:
Complexity: Asset performance management is not always easy to implement and maintain, mostly because it relies on data from other systems to provide optimal results. This means that any change to or replacement of ERP or EAM software can disrupt the data flow between asset performance management and these solutions. Replacing fixed assets may also require a reconfiguration of the asset performance management software, especially when it comes to intelligent equipment or robots.
Market consolidation: Asset performance management software tends to be acquired by ERP and EAM vendors, which aim to provide a complete solution for asset lifecycle management. Since these vendors usually incorporate asset performance management into their ERP and EAM offerings, it will be difficult for buyers to find standalone products.
Which companies should buy APM software?
Asset-intensive companies: Any company that requires heavy investments in assets to operate can benefit from asset performance management software. Some examples of industries that should use this technology are manufacturing, construction, retail, energy, or other utility companies.
Maintenance services providers: Maintenance service providers can benefit from asset performance management software because they are responsible for services such as preventive maintenance, emergency repairs, scheduled servicing, component testing, and parts replacement. These services require extensive planning, coordination, and communication between the service provider and the company receiving the service, and asset performance management software can assist in handling these responsibilities.
How to choose the best asset performance management software
Requirements Gathering (RFI/RFP) for Asset Performance Management Software
APM requirements can include standard features like consolidating fixed asset data, providing standard KPIs to track asset performance, and identifying trends and potential risks that may impact assets. Technical requirements include the delivery model (cloud or on-premises), mobile versions of the software, or integration with other systems such as ERP and EAM.
Compare Asset Performance Management Software Products
Create a long list
A long list should include all asset performance management products that have the core features for asset-heavy companies of all sizes, such as tracking the financial performance of fixed assets and delivering suggestions on how to improve asset utilization.
Create a short list
Next, buyers should research the long list of solutions further to create a short list. There is lots of research (articles and videos) and documentation that explains and reviews different products from different perspectives. Buyers should find research that caters to their industry. G2.com’s ‘Compare’ feature will help stack software side by side to compare specific features and learn how real users rate them.
Conduct demos
A demo should focus on the buyer's critical functionality, not on generic features provided by most asset performance solutions. Ideally, buyers should see how the system manages operations similar to theirs. Other factors to consider are the system's ease of use, its compatibility with existing hardware, or the ability to generate custom reports with advanced analytics.
Selection of Asset Performance Management Software
Choose a selection team
The selection team includes asset managers and members of the operations and accounting teams that will use the software. Depending on the buyer's industry, other managers may be involved, such as production managers in manufacturing or project managers in professional services.
Negotiation
While price and incentives like discounts can be essential in negotiation, functionality should take precedence over cost. Software that doesn't cover the buyer's main requirements may be affordable, but the company may need to invest in additional technology. For example, if the solution does not provide EAM functionality, the buyer will have to buy separate software for EAM.
Final decision
Now that buyers know which software solution they want to purchase, they should ask for a trial run of the product to test how it will be implemented and adopted by their teams. If it is well integrated with existing technology and the teams receive it well, the buyer can be confident that they are purchasing the best asset performance management software for their needs. If not, they must go back to the drawing board.
