What is Enterprise Asset Management Software?
In this article, we’ll discuss what Enterprise Asset Management (EAM) software is and how organizations use it to improve efficiency and reduce costs. We’ll also discuss the difference between EAM software and other similar systems.
What is Enterprise Asset Management?
Enterprise asset management is the business processes and enabling information systems that support management of an organization’s assets, both physical (such as buildings, equipment, infrastructure etc.) and non-physical such as:
- Physical asset management: the practice of managing the whole life cycle (design, construction, commissioning, operating, maintaining, repairing, modifying, replacing and decommissioning/disposal) of physical and infrastructure assets
- Fixed assets management: an accounting process that seeks to track fixed assets for the purposes of financial accounting.
- IT asset management: the set of business practices that join financial, contractual and inventory functions to support life cycle management and strategic decision making for the IT environment. This is also one of the processes defined within IT service management.
- Digital asset management: a form of electronic media content management that includes digital assets.
“…the management of the assets of an enterprise across departments, facilities, business units, and geographical locations. EAM integrates techniques for holistic control and optimization throughout asset life cycles, including design, commissioning, operations, and replacement.”
Enterprise Asset Management is important in reducing costs and improving efficiency for many businesses.
- Maximized return on assets (ROA)
- Reduced costs and risks
- Improved asset decision making
- Compliance with required regulations
- Increase asset service responses and enhanced efficiency
- Lowered total cost of ownership (TCO)
Enterprise Asset Management software is an important tool to help an organization meet these goals. Let’s explore what EAM software does and its benefits.
Enterprise Asset Management software
Functions of EAM software
Enterprise Asset Management software functionality differs from each specific software. Here, we’ll cover what most EAM software is able to do.
EAM software is able to monitor and track physical assets. It tracks physical location, and may also track asset life-cycle stage, possible maintenance needs, current custodian (if applicable), and any additional information that helps with asset management.
Most EAM software can automate certain aspects of asset management, such as automatically ordering more parts as supplies are depleted. This is a key function of EAM software, as it decreases overhead and increases overall efficiency.
Usage of EAM software
Enterprise Asset Management software is most often used by organizations with many physical assets. These assets can be equipment such as a bulldozer or scientific measurement tool, manufacturing parts, or furniture such as desks in a school. EAM software may also track inventory, such as clothes for a major online retailer.
Benefits of EAM software
EAM software allows your organization to have as much information as possible to improve operations. It often comes with automatic tracking tools that ensure your system is quickly updated. This means you always have up-to-date information with which to make management decisions.
To learn more about the benefits of EAM software, see this page on eQuip! Enterprise Asset Management software.
Similar software systems
Difference between EAM and CMMS
Enterprise Asset Management sometimes involves the management of broken assets or assets that require calibration and maintenance. Some organizations use another system, called CMMS, to manage maintenance instead.
CMMS stands for “Computerized Maintenance Management System.” CMMS manage maintenance, including tracking work orders. While EAM software manages all aspects of asset management, CMMS only manages the maintenance aspect of asset management.
Some EAM software is able to manage maintenance tasks that would otherwise be handled by a CMMS system. However, this is not always the case. The capability of managing asset maintenance depends on the specific EAM software.
Difference between EAM and ERP
Enterprise Asset Management software manages many aspects of physical assets, but it is not always capable of managing the financial aspect of these assets. This is where ERP software is used.
Enterprise Resource Planning, or ERP, software manages several business processes, including accounting and human resources.