Requirements for Selecting Enterprise Asset Management Software

Transcription

1 Requirements for Selecting Enterprise Asset Management Software Background for Developing this White Paper A few years ago, we first published the white paper on Key Criteria for Choosing an Enterprise Asset Management System. It became one of our most downloaded white papers. Many businesses and organizations asked us for more help on how to select a system. Can you provide more specific guideline on how to select an enterprise asset management software? The white paper Key Criteria for Choosing an Enterprise Asset Management System outlines the key criteria at a high level: Flexible, Extendable, and Mobile. This framework for selecting an enterprise asset management software has been adopted by many. However, businesses and organizations want more specific criteria, or requirements, on features and functionality, on support, on total costs. So we have developed this follow on white paper, to provide guidance to businesses and organizations that are in the process of selecting an enterprise asset management system. It provides the key requirements in standard functionality, quality of the software system design, and other purchase related considerations.

2 Framework for selecting an Enterprise Asset Management Software at a High Level The Enterprise Asset Management system is consisted of the business processes, software and policy and procedures supporting the implementation of the business processes, and the performance management loop to track the key metrics. The Enterprise Asset Management software is only part of the system. Organizations should choose the software to support their business processes and ensure that the people who can effectively use the software to maximize the benefits. We believe that organizations should select Enterprise Asset Management software using the Flexible, Extendable, and Mobile framework. This will ensure that the organizations achieve the objectives of asset management: Flexible: Customizable fields, roles, and reports, and configurable workflows will allow the software system to support the existing business processes, data characteristics and requirements, reporting formats defined by external entities. This will shorten the implementation cycle, generate quick buy- in, and reduce cost in changing a system. Extendable: Connect with other systems, share data and business processes across different functions. This will further improve the efficiency in operation, and reduce ongoing operational costs. Mobile: Leverage the ubiquity of smart phones to cost efficiently update asset information whenever and wherever needed. Extendable - - connect with other systems to share data and workfows Flexible - - customizable and configurable by users Mobile - - leverage the ubiquity of smart phones 4

3 Framework for selecting an Enterprise Asset Management Software at an functional level The Flexible, Extendable, and Mobile framework should guide the selection for an enterprise asset management software when evaluating the core features and functionalities of the system. Additionally, to complete the selection requirements at a functional level, businesses and organizations should also consider costs, and the vendor s support and training offerings. Core features and funcyonaliyes - - evaluate them in the context of Flexibility, Extendability, Mobility Costs - - SoZware subscripyon, license fees, hosyng fees, on boarding, ongoing support and training Support and Training - - quality of support, availability of training materials, live training vs. videos, training during on boarding and azer on boarding 5

4 Basic features and functionalities in an asset management software application - - supporting 6 key processes in life cycle management Business Processes 1. Record: This process covers the activity of verifying, recording and reporting receipt of assets (equipment, supplies and material). 2. Use: This process covers the activity of transferring and reserving assets, combining different assets into kits, assigning assets to people, and building components into assembled products. 3. Maintain: This process covers the activity of repairing, calibration, preventative maintenance, or Return Material Authorization (RMA). Basic Functions Capture the standard fields to describe the Where, What, Who elements Built in validation to ensure all required fields are captured Support visual organization of assets based on location map and floor plans Support capture and storage of images Track Parent/Child relationships Support multi layered asset category trees Group edit assets Workflow for transferring assets among locations and people Workflow to assemble components into assembled products, storing asset information of each component as well as the assembled product Set up Key Performance Indicators (KPIs) Track asset chain of custody Update inventory level of consumables and supplies Update depreciation information Set up proactive maintenance tasks Record maintenance activities Track parts inventory 4. Audit: The process covers the activity of verifying the location and exact count of the assets. 5. Report Standard reports Customize reports Ad hoc reports 6. Dispose: This process covers the disposition and retirement of assets at the end of asset life. Audit asset by location Audit asset by people Generate reports on assets to be audited based on different methods: statistically sampling, assets haven t been touched in a certain period of time Built in actions and forms triggered by types of disposition reasons Store disposed assets for a period of time 6

5 Functions that should be expected in a software that meets the Flexible, Extendable, Mobile criteria Criteria Features that Meet the Criteria Flexible Change and add asset field names Customize reports Configure workflows Configure roles based on permission and access Extendable Read purchase orders from procurement systems to record assets Reconcile asset record with IT asset auto discovery tools Import data exchange formats from third parties, create templates and transmit data to external parties Read information from RFID, GPS tags, and other sensors Exchange data with other systems via web APIs Mobile Native applications for smartphones supporting Android, ios, Win Mobile Basic functions for add, edit, and audit assets on the go Use the camera on the smartphones to scan barcodes, serial numbers, take thumbnail images of assets. 7

6 Common questions when it comes to comparing costs There are three questions you should consider: 1. Non- recurring costs and recurring costs Non recurring costs are the costs to be paid up front to get the software implemented. Recurring costs are the ongoing costs for using the most up to date software and getting the support from vendors for the software. Recurring costs vary depending on the delivery options for the software (self hosted, managed hosting, Software as a Service) Non- recurring costs Recurring Cost Perpetual license SoZware Maintenance and Support for customer self hosyng the applicayon Customer On Boarding SoZware SubscripYon for SoZware as a Service Managed HosYng for vendor hosyng the applicayon 2. The cost of Software as a Service (SaaS) vs. owning the license to the application First year and ongoing costs tradeoff Other trade offs Purchasing software licenses There is a one- time license fee, but subsequent annual costs can be much lower Customers own the license to the software and the rights to use its APIs and SDKs to connect with other systems Customers can specify different types of hosting environment to meet specific requirements, e.g. authentication, data security Software as a Service No up- front license fee, and the annual subscription cost stays the same SaaS customers typically don t have these options SaaS Customers don t incur any costs of standing up servers to host the application, including hardware, software and related maintenance 8

7 3. The cost of Self Hosted and Managing Hosting options When you have decided to own the application, you also will need to evaluate whether you should self host the application or have it hosted by the vendor. Internal staff support Cost of hardware Cost of annual maintenance and support equip! On Premise Self Hosted by the Customer Require internal IT staff to support the application. Cost per year: $5k- 19K. Require two servers, one for the application and one for the database. Cost $15k $35k initial set up Application server Cost ($5k- 15K) Cost of OS License ($1K) Database Server cost ($5k- $15K) Data Center Charges and network connectivity Backup Services 20-30% of the license fee equip! On Premise with Managed Hosting None None Included in the Managed Hosting fee Common questions when it comes to support and training 1. Support agreements 2. Training: virtual vs. on site (additional costs for on- site), dedicated vs. general training About E- ISG Asset Intelligence We provide out- of- box software solutions and implementation services for managing enterprise assets. Our software can be installed on premise or delivered as Software as a Solution. Our software is Flexible, Extendable and Mobile. To find out more, please call our sales team at , or visit isg.com. 9