What Is Enterprise Asset Management?

Enterprise asset management (EAM), in the context of IT service management within Enterprise organizations can be defined as the systematic approach of managing and optimizing an organization's assets throughout its lifecycle. In a way that aligns with the organization's goals, It involves the strategic planning, acquisition, utilization, maintenance, and disposal of assets.

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Key components of enterprise asset management include:

  1. Asset Planning: Aside from the strategic identification, it includes prioritization of assets needed to support the operations. After assessing asset requirements and forecasting future needs, it’s necessary to develop plans for asset acquisition or replacement. 
  2. Asset Acquisition: The procurement and deployment of assets must be in accordance with the asset plan. Some activities encompassed by acquisition include vendor selection, contract negotiation, and asset installation. 
  3. Asset Utilization: The goal is to optimize the utilization of assets, thus maximizing productivity and minimizing downtime. Once asset usage is monitored and maintenance activities are scheduled, it’s needed to implement efficient operational practices. 
  4. Asset Maintenance: In order to ensure optimal performance and longevity, this component entails the regular inspection, repair, and preventive maintenance of assets. Activities like routine inspections, scheduled maintenance tasks, and timely repairs are commonly included in this phase. 
  5. Asset Disposal: At the end of their useful life, assets have to be disposed properly. It’s required to conduct activities like asset retirement planning and environmental considerations. Make sure asset disposal methods are in compliance with regulations.

How Is Enterprise Asset Management Different from Regular Asset Management?

As a specialized form of asset management, enterprise asset management (EAM) is specifically designed for large organizations or enterprises. It focuses on managing and optimizing the assets that are critical to the operations and success of the enterprise. Regular asset management is a more general term. It refers to the management of assets in any context, whether it be for personal, small business, or other purposes. 

Key differences between enterprise and regular asset management:

    • The complexity of the assets: Enterprises have a broad range of assets. Apart from physical assets (like machinery, equipment, and facilities), there are also digital assets such as software systems and intellectual property. These assets are often spread across multiple locations as well as business units within the enterprise. 
    • Strategic vs tactical focus: In an enterprise setting, assets are considered strategic resources that directly contribute to the organization's objectives. Through strategic planning and decision-making, EAM ensures that assets are aligned with the enterprise's overall strategy while being utilized in the most efficient and effective manner. Regular asset management features a more operational or tactical focus. It’s concerned with the day-to-day management of assets to ensure their proper functioning and maintenance. 
    • Integrations: EAM often integrates with other business systems and processes within the enterprise. It may be connected to financial systems (for budgeting and cost tracking), procurement systems (for asset acquisition), and maintenance systems (for work order management). These integrations allow for a holistic view of asset information.
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