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What is Enterprise Asset Management Software?

Jul 02, 2020
By Lisa Laczynski

We’re going to start off this blog post with a very upfront question—has the term enterprise asset management ever come up in your fast-paced work environment?

Keep in mind, there are no wrong answers here. Maybe you’ve heard this term in passing but you’re not quite sure what all it entails. Perhaps you’re an EAM master and have everything related to asset management locked in. Or maybe you’re part of the other group—the one that’s never even heard this term before they started reading this blog post.

No matter what category you fall into, we think this article is for you. Why? Because we’re going to take everything you know, think you know, or don’t know at all about enterprise asset management and provide you with a solid, firm, and reliable foundation to build your knowledge upon.

Ultimately, we’re doing this to help you better understand how to maintain, optimize, and control the quality of your enterprise assets. But we also want to point out that—even if you’re not familiar with this term—it’s highly likely that you’re putting techniques of EAM into action without even knowing it. And we want to make sure we’re doing everything we can to help you optimize those tactics and techniques so that you can manage your assets as efficiently, seamlessly, and effectively as possible. So, consider this blog your 101 guide—a basic but informative introduction to enterprise asset management. You’ll learn the fundamentals, why EAM is important, and we’ll even provide some tried-and-true advice that should help you revolutionize the way you manage your enterprise’s assets.

Keep reading to dive in—we’re starting with defining enterprise asset management and we’re taking off from there.

What is Enterprise Asset Management?

Just based on the phrase itself, you probably already have a good idea of what enterprise asset management is. Still, we want to take this blog to the very beginning, so for simplicity’s sake, we’re going to define this term specifically so that everyone reading it can start with the same foundation of knowledge.

At its most basic definition, enterprise asset management is the clever combination of systems, services, software, tools, and equipment used to help people, managers, and companies maintain the control and well-being of their operational assets, equipment, and other important things.

In other words, enterprise asset management is simply the way that people utilize strategies and tactics to keep track of important things and processes. This applies to several specific areas that most companies experience, such as making smarter decisions for assets, enhancing asset lifecycle efficiency, maximizing investments on assets, and managing maintenance while providing preventative services to ensure asset longevity.

These areas include things like asset lifecycle management (keeping all asset data in one place to better understand asset longevity), work order management (to diagnose problems quickly and assign specific technicians to the right job), labor management (to help manage training and certification of employees in your asset management process), and reporting and analytics (to spot issues before they become bigger problems).

Why does this matter? Because keeping up with enterprise asset management is the driving force behind all sorts of necessary functions for companies, like keeping health and safety initiatives going, enforcing compliance rules, managing maintenance, scheduling employees, increasing productivity, reducing operational costs, and ensuring that assets (tools, equipment, products, services, etc.) can be put to their best use and last their entire lifecycle.

To put it simply, enterprise asset management matters because it’s what keeps everything—from scheduled maintenance and asset tracking to managing asset insights and analyzing key reporting— running smoothly.

Think about enterprise asset management tactics and strategies as the sun in the solar system—all kinds of other important things exist (planets, the moon, and asteroids are like planning schedules, maintenance, and initiatives), but they all orbit around the sun.

Without it, nothing would orbit in its place and everything would be chaos.

Of course, it’s impossible to discuss EAM without diving into a related term—computerized maintenance management systems (CMMS). Many people tend to use the terms EAM and CMMS synonymously. While they certainly overlap, they are, in fact, different.

A CMMS is a type of tool or software that helps to manage and run a company. Often, it focuses on helping to centralize and condense information in a singular program to help automate a simpler way to conduct maintenance, scheduling, and planning.

Sounds kind of like a part of EAM, right? Well, technically, it is. CMMS overlaps with asset management because it tackles one aspect of enterprise asset management. Overall, enterprise asset management covers the lifecycle management approach of a company’s entire list of assets—CMMS focuses on certain parts of that.

To put it simply, a CMMS is a type of enterprise asset management tool—but they’re not terms that can be correctly used synonymously.

Why is EAM Crucial for Companies?

Now that you have a better understanding of EAM, you’re probably wondering something along the lines of, “why exactly does enterprise asset management matter, anyway?”

Without giving a very general answer (because it is tempting to say something like “to keep things organized and on-track), we’ll do our best to dive into it.

Coming up with reliable tactics and strategies for your company’s enterprise asset management is incredibly important because it can help to ensure that you’re assessing, managing, tracking, and optimizing your assets’ reliability, longevity, and quality. And this is crucial for organizations of all sizes and scopes.

Why? Because companies—no matter their size, their industry, or their niche—have a lot of assets. And the larger an organization is and the quicker it scales, the more those assets multiply. The most interesting part about this? No company’s assets will look the same as another’s. Any type of equipment, tool, or part that’s crucial to production, operation, services, and more could be considered an asset—and it’s a company’s obligation to keep track of each and every one of them.

Coming up with a top-notch strategy for EAM is necessary because it helps companies learn how to:

  • Optimize and revolutionize their own asset utilization strategies
  • Consolidates their asset information into a single, comprehensive platform
  • Track and manage aging assets as well as create better systems for newer assets
  • Monitor assets in a smarter, more cohesive way
  • Consider maintenance schedules and improve asset longevity
  • Prevent issues from occurring and resolve problems before they happen

There’s no one, single reason why companies should invest in their own type of enterprise asset management strategy, tool, or tactic—the blunt truth is, there are hundreds of reasons. Knowing your company and knowing how to better track and optimize your assets can take you and your business further.

Let’s Talk Enterprise Asset Management Software: What Is It & Why Does It Matter?

We’ve talked at length about the basics of enterprise asset management. Now, we think it’s finally time to dive into one of the most effective and efficient strategies for the practice of EAM—enterprise asset management software.

EAM software is exactly what it sounds like, an intuitive type of software that’s used to help companies manage their assets in the ways we described above.

Ideally, EAM helps companies by providing them with a comprehensive view of their assets—from their asset infrastructure to individual asset lifecycles to maintenance, replacement, disposal, and beyond—to give them a holistic picture of their asset management strategies.

We believe that EAM provides companies with a long list of benefits when it comes to asset management—especially when compared to more traditional, manual asset management practices.

In our opinion, an EAM strategy provides companies with advantages like:

  • Increased operation efficiency
  • Continuous cost reduction and financial optimization
  • Straightforward access to required information
  • Consolidated asset management information
  • Effective maintenance, planning, and scheduling for all assets
  • Optimized inventory management capabilities
  • Assistance with regulatory compliance
  • KPI tracking
  • Improved communication and encouraged collaborative efforts
  • Optimized labor management
  • Key reporting analytics and data for data-driven decisions

Ultimately, each company’s decision on what’s right for their EAM strategy is based on their needs, their goals, and their unique assets—still, software can provide companies of all scopes, sizes, and industries with a consolidated, comprehensive management tactic that can improve their asset management for years to come.

Nuvolo: Your EAM & CMMS Partner

When it comes to finding the perfect enterprise asset management software for your company’s needs, Nuvolo has your back. Our innovative software was created with companies like yours in mind to ensure optimized asset management, cost-effective solutions, and of course, intuitive platforms to guarantee your success.

To learn more about what Nuvolo can offer you, we encourage you to visit our site, get to know our products, and discover how our asset management software can revolutionize and transform the way your company manages and tracks its assets.

Have questions? Our team is here to help. Reach out and contact our support team to discuss our products, our services, and our mission. Whether you want to schedule a personalized demo or are simply looking for more information on your asset management journey, we can’t wait to hear from you.