How Does an EAM System Work?

​​Modern enterprise asset management systems operate on cloud platforms, offering improved scalability, stronger security, and integration capabilities. Here's a breakdown of how these systems function:

1. Centralized Asset Data Management

An EAM system collects and stores all asset-related information in a centralized cloud-based repository. This includes asset location, maintenance history, and operational data. Using EAM software, you can track asset performance in real time and extract valuable insights. These insights help you monitor asset conditions and identify areas that require attention.

2. Strategic Asset Optimization

Using advanced features like predictive analytics and machine learning, enterprise asset management solutions analyze collected data to identify potential equipment failures before they occur. Features such as digital twins (virtual models of physical assets) allow you to simulate asset performance and plan maintenance effectively. This ensures maximum asset availability while minimizing risks.

3. Proactive Maintenance and Inspections

Enterprise asset management features include scheduling and managing inspections and maintenance activities. You can prioritize critical assets, schedule tasks, and use EAM tools to detect and resolve issues quickly. These systems integrate maintenance schedules with other processes, reducing unplanned downtime and ensuring operational efficiency.

4. Field Operations Support

Mobile enterprise asset management capabilities extend the use of EAM systems to remote workers and assets. Features like GIS (geographic information systems) and GPS integration provide map-based insights for field operations. Workers can manage work orders, access asset data, and even operate offline, ensuring seamless workflows in any location.

The Role of Asset Collaboration in EAM

Asset collaboration involves sharing information and coordinating processes among various stakeholders to improve asset performance and operational efficiency. By aligning efforts across the asset management ecosystem, you can reduce downtime, lower maintenance costs, and improve asset utilization. Here's how asset collaboration contributes to optimal EAM asset management:

Also Read: How Enterprise Asset Management Is Beneficial to the Automobile Industry?

1. Centralized Asset Data Sharing

Collaboration allows all stakeholders to access a single source of truth for asset data. This is especially useful when multiple organizations are involved in asset management. Sharing accurate and updated information ensures seamless decision-making and operational consistency across enterprise asset management systems.

2. Knowledge Sharing and Training

Providing easy access to documentation, such as digital twins (virtual replicas of physical assets), ensures uniformity in operations. Workers can access maintenance guides, spare part details, and warranty information directly in the field. This feature improves transparency and helps stakeholders follow the same practices for asset management.

3. Streamlined Communication

Asset collaboration facilitates cross-functional communication through shared platforms. For example, original equipment manufacturers (OEMs) or constructors can electronically hand over critical data to operators. This streamlined communication helps reduce errors and avoids miscommunication during asset commissioning and maintenance.

4. Collaborative Work Order Management

Using enterprise asset management software, you can collaborate on maintenance planning and execution. You can develop advanced maintenance models that improve productivity and minimize downtime by coordinating tasks among stakeholders.

5. Supplier Coordination

Asset collaboration bridges the gap between OEMs, component suppliers, operators, and service providers. This shared communication channel ensures smoother interactions and better support for asset-related tasks.

6. Workflow Automation

EAM enterprise asset management includes automating workflows for commissioning, maintenance, and decommissioning tasks. Automating repetitive processes improves efficiency and reduces the chances of human error, enabling seamless operations across all stakeholders.

EAM and SaaS

SaaS-based enterprise asset management systems are hosted in the cloud, providing several advantages over traditional on-premises deployments. These include:

• Scalability: SaaS EAM solutions let you expand or reduce data usage based on your requirements. You only pay for the resources you need, making it a cost-effective approach to EAM asset management.
• Reduced IT Dependency: You don't need extensive IT intervention or support with SaaS. The service provider manages the infrastructure, reducing the need for in-house IT resources and converting capital expenses into operational costs.
• Automatic Updates: Service providers handle upgrades in the cloud, so you always work with the latest version of the enterprise asset management software. This means you can access new features and functionality without any manual updates.
• Faster Integration of New Technologies: SaaS-based EAM systems integrate emerging technologies more quickly and with less risk. This keeps your EAM system up to date with modern requirements.

Also Read: The Importance of Data Management in Enterprise Asset Management  

The Evolution of EAM

Initially, organizations used separate systems for each type of asset deployed on-premises. These systems operated independently, creating siloed data that made gaining a complete view of operations difficult. However, technological advancements have made enterprise asset management systems more connected and proactive.

Cloud-hosted EAM tools now collect real-time data, integrating information from multiple sources. These systems are supported by complementary technologies like:

• Artificial Intelligence (AI) and Machine Learning: Analyze real-time data to optimize decision-making and innovation.
• Location Tracking: Use GIS (Geographic Information Systems) and GPS to track asset locations efficiently.
• Supply Chain Management Systems: Link asset performance with supply chain operations to improve productivity.
• IoT (Internet of Things) Asset Sensors: Continuously transmit real-time data about asset conditions.
• Imaging Technology: Leverage drones, LiDAR (Light Detection and Ranging), and satellites for asset inspections.

Enterprise Asset Management FAQs 

What is the difference between EAM and CMMS?

EAM (Enterprise Asset Management) focuses on the entire asset lifecycle, from procurement to disposal, and integrates with other systems like supply chain and finance. Whereas, CMMS (Computerized Maintenance Management System) specializes in managing maintenance activities, such as work orders, preventive maintenance, and scheduling.

EAM examples in business sectors?

Some examples of EAM in the business sector include:

• Manufacturing: Managing production equipment and machinery.
• Energy: Monitoring power grids and renewable energy assets.
• Healthcare: Tracking medical devices and facility infrastructure.
• Transportation: Managing fleets, rail systems, and logistics assets.

What is the difference between EAM and ERP?

EAM (Enterprise Asset Management) focuses on optimizing the lifecycle and performance of physical assets. Whereas, ERP (Enterprise Resource Planning) manages broader business operations, including finance, HR, and supply chain. EAM is often integrated into ERP systems.

Why would an organization use CMMS instead of EAM?

Organizations with a primary focus on maintenance tasks and fewer integration needs may choose CMMS for its simplicity and cost-effectiveness. EAM is preferred for businesses requiring full lifecycle asset management and system integration.

What should I know about enterprise asset management software?

Some key points to know about EAM software are:

• Purpose: Manages assets across their entire lifecycle.
• Key Features: Real-time data, predictive maintenance, and system integration.‍
• Benefits: Reduces downtime, improves productivity, and optimizes asset performance.