When considering implementing Enterprise Asset Management (EAM) software, one of the major elements your company will need to consider is cost.
Downsides to EAM implementations:
Implementation of large software solutions can be a pricey endeavor. There are costs associated with the software itself, with consulting, with tax on internal resources, and with the initial slow down after implementation when users are getting used to the new processes and system. Finding budget funds to cover a project of this length and complexity might require much effort on the part of upper management committees and other stakeholders. It may be up to you to justify the high cost of implementation.
This probably doesn’t make an EAM project sound like a very appealing idea. That is why we are here to explain why the long-term benefits and return on investment (ROI) outweigh the issues described above.
Pricing options in today’s EAM market:
EAM solutions offer different types of pricing options.
– Tiered model pricing allows users to choose a simpler package if the full solution is not within your budget and not necessary for your organization.
– Module based pricing prices software based on the number of modules which need to be activated by your organization in order to implement. In addition to core modules, the software provider normally has a large selection of possible system areas that can be turned on or left off depending on your needs.
– Pricing based on the number of users who will access the software can be a less expensive option if your organization only has a few individuals who need to access the software.
– Pricing based on the number of assets is also sometimes offered by EAM solutions.
ROI through EAM software:
Now that we have looked at the different types of pricing, let’s look at why we feel it is worthwhile to consider an EAP solution for your organization. When we talk about benefits, we are mainly looking at long-term ROI.
– Better inventory management
A better understanding of your inventory means less idle inventory which was not needed, isn’t in use or is lost. This means less risk of accumulated depreciation. Better information about your assets leads to overall savings.
– Reporting, reporting, reporting
Across the board, better reporting means better ROI long term. This holds true for summary reports used by management to better operate the organization as a whole, as well as detail reports that help individual departments run more efficiently.
In addition to reporting on current system health and processing, prediction models allow future planning and also lead to cost savings. With prediction functionality such as that offered in the OptiAM product from Andromeda, management can better analyze trends and have a better understanding of what to expect moving forward.
– Processes, processes, processes
Implementing a new EAM product means taking the time to update and improve business practices. Improved business practices equate to lower costs. Implementation of an EAM means adding automation where possible. Automation might mean:
– Improved interfaces – more automated processing, more time for employees at your organization to focus on other things.
– Automated reporting – less time for creation of manual reports needed for various daily, weekly, monthly, or yearly activities.
– Streamlining processes – in general, the implementation of an EAM solution will allow creation of processes that, after users learn and accept the system, take less time than they did before with less downtime. This means employees can accomplish more in the same amount of time. This might be through automating asset acquisition import functions, field work efficiency increases through improved technology (such as mobile technology available in the OptiAM solution from Andromeda), and better manage asset maintenance
With better processes, automation, and effective training for users, your organization will likely see more long-term efficiency and fewer errors.
– Good data means fewer issues long term.
Good data leads to good decisions. Bad data leads to hidden costs for extra projects which shouldn’t be required with a well implemented EAM solution in place. Ensure compliance with industry regulations to avoid non-compliance monetary penalties, better manage company risk, and ensure security is up to par.
So is it worth it?
In short, the long-term ROI is well worth considering the implementation of an EAM solution.