Keywords: Asset Performance Management (APM), Industrial Internet of Things (IIoT), Reliability, Risk
According to recent ARC Advisory Group research, increasing asset reliability is the second largest business challenge facing industrial organizations today, preceded only by the need to achieve and sustain exceptional business performance. The worldwide market for Asset Reliability Software and Services will continue to grow albeit at a much slower rate than in the past, according to a new ARC Advisory Group study.
The plant reliability function remains primarily linked to maintenance, but involves much more than maintenance alone. “Achieving world-class asset reliability is a cross-functional activity involving production, plant engineering, purchasing, sales, and training. Reliability solutions should provide a common understanding of risk and criticality of assets,” according to Paula Hollywood, Senior Analyst, the principal author of ARC’s “Asset Reliability Software and Services Global Market Research Study”.
Increased Emphasis on Managing Risk
Operational risks are dynamic and therefore require dynamic solutions. Reliability solutions can play an important role in addressing operational risks as they provide an understanding of the risks as they relate to business value. Reliability solutions that support a modeling approach can be used to assess the impact of operational decisions without actual implementation. They can also help to establish a culture that embraces safety and operational excellence.
Reliability Solutions Morph into APM Platforms
New asset reliability solutions have morphed into asset performance management platforms based on modern architectures that can provide horizontal and vertical connectivity between disparate plant systems. In conjunction with Industrial Internet of Things (IIoT)-connected smart devices, Big Data, and analytics; today’s APM platforms can help industrial organizations reduce and manage operational risk, increase availability, and optimize maintenance costs.
Opportunities in Developing Regions
Manufacturers in developing regions anxious to compete in the global market look to implement best practices from developed regions, such as asset performance management and reliability. As a result, designing reliability into new projects can yield faster ROI. The emerging regions of Asia and Latin America are expected to experience above-average growth, but will be starting from smaller positions. Astute manufacturers in these regions are taking note of what their competitors are doing in developed regions to gain an advantage and are keen to do the same. These late adopters can “cherry pick” the best practices from the early adopters.
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