Business Case For Asset Performance Management Software

Verdantix asked 284 operations executives for their views on the role of asset performance management (APM) software in their firms’ operational excellence initiatives, and 97% said that it was either ‘very significant’ or ‘significant’. In contrast, only 15% of those surveyed said that they were using a commercial APM software application as of the end of 2020. One of the core reasons for this disparity is the difficulty in quantifying the benefits of strong APM performance. In this report, we provide operations executives a framework to develop a numbers-driven business case to support an APM investment plan. We show how APM can help firms save millions in production losses and maintenance costs as well as in insurance and inventory expenses, and lay out the key activities needed to achieve a successful deployment. We conclude by applying the framework to three specific hypothetical scenarios: a 100,000-bpd oil refinery plant, a $150-million heavy machinery manufacturing factory and a 600-MW wind farm, each achieving over 70% return on investment (ROI) during a five-year period.