The Internet of Things has already started to impact the bottom-line of the majority of enterprises. 90% of companies are striving hard to increase process and production efficiency today to satisfy their customers and beat the competition. To achieve this, they invest in techno-enabled solutions to streamline, control and improve inefficient/redundant processes.
Of the many processes, asset management is one of the most complex and expensive as it involves workforce and asset management.
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.
Table of Contents
Traditional asset management vs. IoT asset management
IoT spending is growing 8.2% year over year to $742 billion in 2020 down from 14.9% growth forecast in November 2019. Nevertheless, global IoT spending is expected to return to double-digit growth rates in 2021 and achieve a compound annual growth rate (CAGR) of 11.3% over the 2020-2024 forecast period. – Help Net Security
The above statistics show 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 resources cost for enterprises. Tracking every single asset from any location within an enterprise is challenging.
Decades ago, enterprises were using different solutions like RFID, GPS, or QR-Codes 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 and managing assets in real-time and alerts staff about asset’s health, availability and efficiency.
As the complete asset management can be streamlined and integrated with IoT networks, garnering asset data at every point and making informed decisions is absolutely 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 the above-said processes, controlling and managing your assets becomes simple and seamless.
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 effortlessly.
Asset health condition monitoring
Monitoring a huge volume of assets and assessing their health is complicated. This again is a long process and identifying defective/missing/misplaced assets can be challenging at times. Not having a proper record on every asset’s health condition can also cost your business an arm and leg.
IoT asset health condition monitoring systems are useful in monitoring 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 assets, and this helps using your assets to the fullest.
Asset lifecycle management
Every asset in a company will be used in multiple projects and monitoring the asset’s journey across different projects/processes is always challenging.
Real-time data about an asset entering and leaving the business environment will help in managing assets better and more efficiently and 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. In most companies this is performed manually.
IoT asset workflow management systems help companies determine 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, thanks to 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 should be your best bet.
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