Asset Performance Management (APM) is a market category within the broader asset management that focuses on delivering higher asset availability, reduce maintenance costs and reduced risk. It leverages new technologies such as connected assets, big data, and new computing capabilities. Gartner estimates that the APM market will be USD 300B business by 2020 and that 50% of asset intensive organizations will rely on APM for critical asset performance management. That’s a sizeable market to go after for OEMs, software and services companies.
The picture below summarizes at a high level the evolution of Asset maintenance. Technology is fueling digital industrial transformation and machines are becoming more intelligent and collaborative. We now have a clear line of sight to achieve the goals of asset management by bringing together IT and OT objectives. While IT will continue to play a role from a back office perspective (such as finance, work order management and mobility), it’s the operational technology that will play a significant role in driving the Asset performance management.
As shown in the picture, APM is the next step beyond condition-based maintenance. It encompasses Connected Assets, Predictive Maintenance and Asset Performance Optimization features that are outlined below.
- Connected Assets: This is the first step towards APM. The focus here is achieving connectivity, a single version of the truth, condition monitoring, ability to analyze near real-time data and dashboards.
- Predictive Maintenance: The focus here is to improve reliability by predicting and minimizing unplanned downtime using predictive algorithms and machine learnings. It is also important to enable enterprise-wide event management, collaboration, and knowledge management as a part of this implementation.
- Optimize asset performance: In this step, maintenance efforts, performance, and costs are balanced to achieve higher asset efficiency and utilization. This includes financially optimized asset strategy, intelligent prioritization, and optimization. Companies can apply the right type of maintenance approach depending on the criticality of an asset, For example, low criticality assets can be on a reactive maintenance path while mission critical assets can be on the predictive maintenance mode.
Today most of the big asset manufacturing companies deliver their own APM platforms such as GE Predix, Schneider Electric’s Avantis PRiSM, Seimens MindSphere platform. These platforms typically can handle asset data from other OEM equipment as well. It is important to have a view of the end state architecture along with the APM platform integrated with IT systems. The picture below shows a high-level architecture of how this can coming together.
We are also seeing in the marketplace customers coming together to set up collaboration platforms to exchange specific asset performance and failure information for the greater good of the industry. One example is where Capgemini helped setting up a Blowout Preventer (BOP) collaboration hub for offshore drillers after the Macondo Well incident to exchange failure and maintenance relevant information. OEMs can also take part in such collaboration platforms to get access to failure information and improve their asset performance. APM will play a key role in such collaboration hubs.
To conclude APM will benefit nearly all industrial companies, the greatest benefit is often on those maintaining very expensive assets to create commodity outputs such as the Oil & Gas, Power, and Chemical sectors. Companies now have an architectural framework and technology to deliver cost effective asset performance. At Capgemini, we are excited to be a part of this big shift to unlock the true potential of assets through APM. Are you ready to embrace APM and make an impact on your company’s performance?