Of the many processes, asset management is one of the most complex and expensive. On top of that, 80% of industry leaders strongly believe IoT-based asset management software will help in increasing asset ROI, in addition to increasing business ROI.
This post looks at the significance of IoT asset management for any business.
Traditional asset management vs. IoT asset management
The above statistics shows how global IoT spending will increase in the months to come, illustrating the significance and impact IoT has on any enterprise.
Traditional asset management systems consume a lot of time, lack accuracy and incur additional resource costs for enterprises. Tracking every single asset from any location within an enterprise is challenging.
Decades ago, enterprises were using different solutions like RFID, GPS and QR-Code for tracking and managing assets. Managing independent processes and siloed data was inefficient and challenging for enterprise heads, especially when it came to making decisions. Also, managing solutions from different vendors impacted the bottom-line of most businesses.
However, the arrival of IoT has transformed the entire business landscape. IoT simplifies the process of tracking by managing assets in real-time and alerting staff to changes an asset’s health, availability and efficiency. As the complete asset management process can be streamlined and integrated with IoT networks, garnering asset data at every point and making informed decisions can be rendered seamless for decision makers.
Smart asset management with IoT to improve asset ROI
When it boils down to asset management challenges, there are 5 areas you should focus on to control your assets’ cost:
- Asset tracking
- Asset health condition monitoring
- Asset lifecycle management
- Asset workflow management
- Asset maintenance
With the real-time data on these processes, controlling and managing your assets becomes much easier.
Let’s see how IoT asset management will help your business save asset costs and improve ROI.
Remote asset tracking
Most companies engage their workforce with tracking assets across different departments within a project zone. This process is mostly paper-based and staff will be jotting down the list of assets in a specific department or location. This is time consuming and engaging more staff for managing assets across different locations will cost your business exponentially.
By setting up an IoT-based system embedded with sensors, the data of any asset can be tracked seamlessly from any point.
Asset health condition monitoring
Monitoring a huge volume of assets and evaluating their health is complicated. This again is a long process and identifying defective, missing or misplaced assets can be difficult. Not having a proper record on every asset’s health condition can also have financial consequences.
IoT asset health condition monitoring systems are useful in assessing the health of every asset in real-time. With the help of IoT data garnered, you can either leverage the best working assets or buy new ones.
Asset lifecycle management
Every asset in a company will be used in multiple projects and monitoring the asset’s journey across different projects and processes is always challenging. Real-time data about an asset entering and leaving the business environment will help in managing assets more efficiently. IoT asset lifecycle management systems are exclusively designed for this purpose.
Asset workflow management
In most companies the same asset will be shared and distributed for different projects This is most often performed manually.
IoT asset workflow management systems help companies monitor the availability of assets that are shared or distributed within the environment. With such a system, you can not only save time for your staff but also asset cost.
Predictive asset maintenance
Unstructured or siloed asset data is painful for any business owner to manage and make decisions.
IoT enabled predictive maintenance systems help companies to create structured data of every asset that can be analyzed and interpreted through analytics. With such an approach, every asset will be used fully and efficiently. This also prevents the business from sudden plant shutdowns or additional maintenance costs.
According to Christopher Germann, a senior research analyst at Gartner, organizations can achieve cost savings ranging from 5 to 35% through focused Software Asset Management practices. Smart companies today realize this and have already started investing in IoT solutions. If you want to save asset cost and at the same time improve ROI, IoT asset management solutions are definitely worth your consideration.