Customers Love APM Software But Can’t Always Get The Budget Or Internal Buy-in
Verdantix’s just-published second annual survey of operational excellence decision-makers revealed that asset performance management (APM) software was the most significant application for firms’ operational excellence initiatives. In this year’s survey of 284 managers in operations, engineering and maintenance roles across 13 asset-intensive industries, 48% of respondents cited APM as ‘very significant’ for their firm’s OpEx initiatives, outpacing environment, health and safety, enterprise resource planning and enterprise asset management among other categories. Nearly all respondents (97%) cited APM software as significant or very significant.
Whilst survey respondents clearly see the value of APM software, some anxiety remains over whether APM software projects will be funded. Nearly half of respondents (46%) cited lack of budget from operations as a ‘very important’ factor holding back the digitization of asset management. Another 35% said asset reliability was not perceived as a big issue by executives which could stymie digitization efforts. IT departments’ spending priorities are another potential obstacle as 29% of respondents cited lack of budget from IT as a very important factor that could hold back APM digitization. Another 30% of respondents pointed to fragmented ownership of asset management decisions as a ‘very important’ limiting factor to APM digitization. Having to seek approvals from too many people could hold back new APM investment in some firms.
The two lowest scoring responses should cheer APM vendors. Just 27% of respondents felt that existing IT systems already met their requirements. And just 18% said that commercial APM systems were not suitable for their requirements. So there’s still plenty of appetite for new APM software and most firms think current commercial offerings could meet their APM needs.
To learn more, register for the forthcoming webinar: ‘Operational Excellence In 2020: Budgets, Technology Plans and Business Priorities’.