Asset Investment Planning: What Is It And How Is It Useful?
The industrial asset management software landscape is convoluted and comprises many three-letter acronym solutions. So, what is asset investment planning (AIP) and how is it useful?
AIP is different to asset performance management (APM) and enterprise asset management (EAM) solutions; the latter two primarily support the daily or weekly operational decisions and act to improve the reliability and availability of the assets. AIP software instead enhances complex, longer-term tactical and strategic decisions relating to the CAPEX/OPEX budget allocations and overall asset management planning. AIP systems leverage asset data (primarily sourced from APM and EAM systems) to predict the current and future performance of the asset base over a predefined horizon (usually over a year). The feasibility of each intervention option required is determined using economic analysis, while each investment project as well as the overall plan is finally optimized around certain user-defined strategic inputs such as budget and regulatory (e.g., ISO 55000) constrains.
Quality capital management and investment planning for fixed assets is now more critical than ever. Executives at asset-heavy and process-intensive industries are swamped monthly with a tsunami of decisions that they have to take, which can significantly impact their firm’s long-term revenues and expenses. The coronavirus pandemic and the ensuing economic recession have exacerbated this situation – leaving little room for error in asset investment and risk management strategies. Executives are steadily turning to AIP software to support and improve these decision-making processes offered by software providers such as Copperleaf, Cosmo Tech and Direxyon. While AIP software has been traditionally aimed at heavily regulated industries such as power and water utilities, Verdantix expects to see AIP software use cases quickly expanding to adjacent asset-intensive industries such oil and gas, transportation and manufacturing.
For more information on asset management software and AIP register for the Verdantix webinar: Optimizing Industrial Facility Management: The Landscape Of Asset Management Software.