Key points
Across the asset-intensive industries, the asset performance management (APM) software market has exhibited resiliency over the past few years of macro-economic disruption, with operations and maintenance leaders turning to digital solutions to help optimise asset performance and intervention strategies to counteract demand shocks and supply chain disruptions.
In line with this, the necessity for industrial firms to implement software to digitalise processes for monitoring asset health, predicting impending equipment failures and achieving sustainability objectives has become increasingly important.
Asset management solutions were traditionally large enterprise software tools that capitalised on asset data, enabling maintenance and reliability engineers to address asset reliability, maintenance and risk. Today, there is a growing understanding that this kind of capability is no longer sufficient in itself.
In parallel, firms’ asset management requirements have evolved from simply reducing maintenance-related costs to improving efficiency as well as performance and, more recently, achieving the firm’s sustainability objectives. The increasing demand to do more with less, and the need to rectify existing process inefficiencies have resulted in a rise in the adoption of APM software.
The next generation of APM software
We have also seen a growing understanding that amid rapid market changes, businesses can no longer afford to operate in a reactive manner. This has resulted in the introduction of more proactive solutions such as Asset Performance Management (APM 4.0).
APM 4.0 goes one step further than conventional real-time, condition-based maintenance activities to incorporate machine learning (ML), artificial intelligence (AI), and Industrial Internet of Things (IIoT) devices. Together, they deliver predictive and prescriptive maintenance and reliability plans that analyse different scenarios to recommend the most effective way to move forward without under-maintaining or over-maintaining critical assets.
A recent AspenTech-commissioned study by Verdantix, surveying executives across the asset-intensive industries discovered that only 6% of respondents mentioned using APM software widely across their operations or at multiple facilities. However, over 90% of respondents stated improving maintenance along with quality and process safety as high priorities for their firms.
With conventional condition-based maintenance approaches no longer providing enough insight to effectively improve asset performance, firms are turning to solutions that offer predictive and prescriptive models offered by the latest generation of APM software.
Scoping the challenge
Yet, despite the growing interest in APM software, much confusion persists about it across the asset-intensive industries. When asked about usage of commercial APM software, 47% of respondents stated that it was used either widely across operations, at multiple facilities, at a limited number of facilities or as pilot projects only. However, 66% of respondents claim to be using commercial maintenance software for predictive maintenance, a core functionality of APM software.
This mismatch reveals a lack of understanding of APM capabilities. Firms need to know that the benefits of APM software go well beyond improved asset reliability and uptime to take in increased performance efficiency, optimised asset lifecycle costs and achieved sustainability targets. Without APM software, firms are likely to see siloed data challenges continue.
Over 90% of respondents say that high complexity with cross-functional collaboration, lack of executive buy-in, along with restricted budget and inadequate as well as low-quality asset data are the most significant barriers to investing in APM solutions over the next two years.
This is a situation that should not be allowed to go unchecked. While APM can be used as a comprehensive tool to drive growth and innovation, a lack of understanding of its capabilities and potential beyond maintenance optimisation means stakeholders are allocating minimal priorities and budgets.Â
APM software helps firms improve availability and reliability of assets via condition monitoring, predictive and prescriptive maintenance, and asset integrity management, coupled with a host of data collection, visualisation, and analytics tools.
Enhanced sustainability is key
Another important benefit of APM software is the role it can play in improving sustainability metrics. The accelerated embracement of ESG metrics resulting from global initiatives such as COP26 and carbon neutrality targets, coupled with new regulations is radically changing the way stakeholders position sustainability across the business.
Quantifiable sustainability strategies are becoming vital to business growth. APM software is the protagonist for such sustainability strategies, with all respondents citing it as playing a critical or significant role in achieving their firm’s sustainability key performance indicators (KPIs).
When probed about factors driving investment into APM solutions over the next two years, improving sustainability metrics was mentioned as a “very important” or “important” factor by 100% of the respondents.Â
Interviews carried out as part of the Verdantix research showed the biggest shift in priority to be for emissions reduction (with 18% more firms believing it will be ranked as a priority in 2025 than it is today) and production optimisation (+28%). Moreover, 66% of firms strongly associate using APM solutions with reducing energy consumption and emissions.
Reaping the rewards over the longer term
Given all these benefits, it is good news that despite current challenges which we have already referenced, the long-term picture for APM looks increasingly positive. The lack of understanding around the benefits that APM software can deliver beyond maintenance optimisation is affecting its uptake and penetration today as compared to traditional maintenance solutions, such as computerised maintenance management systems (CMMSs) and enterprise asset management (EAM).
However despite this, with the continued investment into asset management digital transformation strategies and the need for asset-intensive sectors to improve productivity and sustainability at existing plants, there is clear evidence that APM usage is set to increase in the years to come.
When asking respondents about their future outlooks and investment plans, Verdantix found that 56% of firms believe APM is essential for the success of their business goals, while 44% believe it to be a high priority.
APM fits in the general operational excellence strategy of firms, enabling users to manage assets and prioritise business objectives alongside traditional asset reliability and availability activities. With the growing necessity for APM solutions, firms are expecting to work with solution partners with a deep understanding of their business operations and industry challenges.
Success on the horizon
As this article has demonstrated, the priorities for asset-intensive firms are changing. While minimising asset downtime and maximising production as well as quality remains important, sustainability, EHS and operational initiatives are becoming intricate parts of a firm’s strategic objectives.
Evolving with the priorities of process-intensive industries, from maintenance operations to process optimisation, lifecycle analysis and environmental performance, APM solutions are well positioned to support firms on their evolving digital journeys and objectives. APM 4.0 strategies connect engineering, operations and performance to streamline digital transformations.
By working closely with APM software providers to understand the use cases, benefits and risks delivered by APM solutions, firms, no matter at what stage they are in their asset management maturity journey, can safely evolve maintenance strategies to improve asset reliability and performance; better predict and manage asset failures and simplify operations within a single platform. APM 4.0 is set to become the only way to manage the whole asset lifecycle while continuing to deliver value.
