ASSET MANAGEMENT

Asset Management is not something new.  It has been in use since the early 1970’s and through the years has evolved and expanded into different industries and geographic regions.  And through it all, it continues to improve organizational performance, enhance prioritization, and provide benefits for those companies that apply it within their organizations. 

Asset management is more than doing things to assets – it is about using assets to deliver value and achieve the organization’s business objectives. It also brings a different approach and way of thinking and a transformation of organizational alignment and culture. Each organization has to determine what it considers value to be and choose how to manage its assets to derive best total value.

Institute of Asset Management (IAM)

The benefits that are provided through effective Asset Management are numerous.  Some of the proven benefits include: 

·       Improved expenditure management, balancing financial investments with performance and risk; 

·       Enhanced ability to predict failures and future replacements;

·       Improved management of assets throughout their lifecycle - allows companies to complete the right maintenance at the right time; and

·       Improved management of compliance and reputational risks by reducing failures and unintended releases. 

But beyond these more typical benefits, Asset Management has been more recently used to address the global focus on sustainability and the transition to a lower carbon future. 

 Companies are critically assessing the impact they have on the environment and more importantly, how a lower carbon environment affects their company in the short, mid and long term.  This creates new challenges and risks that can be effectively mitigated and managed through the application of asset management strategies, systems and plans.  The key risks include:    

 ·       Utilization changes to existing assets – marked changes in demand

·       Change in asset mix and expansion into new asset types

·       Greater scrutiny on incidents (e.g. NGO, Stakeholders, Investors, Customers)

·       Changes in environment tax regimes (e.g. carbon taxes)

·       Increased consideration of electrification of equipment and

·       Stranded asset risks

 Applied4Sight has significant experience working with its various clients in developing asset management strategies, systems and plans to improve their operations and maintenance activities.