Best Practices For Digitizing Industrial Asset Management

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Executive Summary

This report provides industrial operations managers and executives with an overview of best practices for digitally transforming their asset management practices. To capture best practice insights, Verdantix conducted in-depth interviews with 13 asset performance management experts at service providers and technology firms and surveyed 284 managers in operations, maintenance and engineering roles. Our research concludes that there is no one-size-fits-all approach to the digitization of asset management for industrial facilities. Firms’ digital transformation strategies for asset management must reflect the financial materiality of asset reliability for each plant and the current state of asset management technology maturity. A digital evolution strategy needs to move through three phases: 1) Instrument and integrate; 2) Unify and enhance; 3) Optimize and transform. Ultimately, succeeding with a digital strategy for asset management is more dependent on achieving a shift in mindset about what best practice looks like than it is about deploying new technologies.

Table of contents

Digital Asset Management Strategies Must Reflect Operational Realities
Digitization Of Asset Management Is Gaining Momentum
Underlying Factors Frame The Potential To Digitize Asset Management

Best Practices For Asset Management Information Architecture: Crawl, Walk, Run
The Instrument And Integrate Strategy Establishes Solid Data Management Foundations
The Unify And Enhance Strategy Breaks Down Silos and Funds Quick Wins 
The Optimize And Transform Strategy Targets Long-Term Operational Advantages

Table of figures

Figure 1. Eight Workstreams Included In Operational Excellence Frameworks 
Figure 2. Significance Of Nine Digital Innovations For Operational Excellence In 2020 And 2021
Figure 3. Seven Drivers Of Investment In Operational Excellence 
Figure 4. Drivers Of Spend On Asset Performance Management 
Figure 5. APM Market Forecast And CAGR For 2019-2024
Figure 6. Digitization Priorities For Assets In Nine Operational Situations

About the authors

Dennis Callaghan

Principal Analyst

Dennis is a Principal Analyst at Verdantix, contributing to both the Operational Excellence and Smart Buildings practices. His current research agenda focuses on covering asset performance management technologies across both industrial and smart buildings use cases, including Internet of Things monitoring and data analysis. Dennis has over 10 years’ experience in industry research and strategy. He previously worked at 451 Research, where he led that firm’s coverage of application performance management and IT service and asset management technologies. He has written about technology as a journalist, industry analyst or marketer for more than 20 years. Dennis holds a BA in journalism from Duquesne University.

David Metcalfe

CEO

David co-founded Verdantix in 2008 and leads the firm’s research and advisory work on the digitization of Operational Excellence which covers software, systems integration, wearables and drones. Prior to founding Verdantix, David was a Senior Vice President at Forrester Research and Head of Analysis and Forecasting for BT. He holds a PhD from Cambridge University in Game Theory and Decision Analysis and worked as a Research Associate at the Harvard Business School.

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