Abstract
Convincing Senior Management of its Quick ROI Can Boost IAM Software Sales
As the drive for overall efficiency intensifies, the European market for
industrial asset management (IAM) software, which helps companies to optimise
their investment by seamlessly integrating all assets, is growing. IAM solutions
enhance operations by combining manufacturing/process agility with the ability
to synchronise all maintenance and operational requirements. However, in spite
of its benefits, customers seem to need convincing from suppliers on the speed
of the return on investment (ROI). The challenge for suppliers lies in
persuading prospective customers that a modern, sophisticated asset management
solution can meet the need of senior management to maximise profitability as
well as appeal to the engineering section's need for higher efficiency of
maintenance programmes on the plant floor. Senior management, in particular,
needs to be convinced of a speedy ROI to win projects and push this market to
its full potential.
This Frost & Sullivan research service analyses the western European
markets for IAM software. The analysis segments the market by application in
industries such as chemicals, petrochemicals, pharmaceuticals, automotive,
manufacturing, food and beverage, oil and gas, pulp and paper, power generation,
water and wastewater as well as semiconductor and electronics.
IAM Solutions Reduce Costs, Improve Performance
"Modern asset management solutions enable the optimisation of a
processing or manufacturing facility, improving asset/plant performance to
maximise revenue yet minimise cost," says the author. IAM solutions can
help eliminate unscheduled downtime and assist in predictive planned maintenance
to prevent disruption due to asset failure. Greater demand for more advanced and
improved IAM solutions is expected to drive future revenues higher.
In addition, many companies are outsourcing their non-core areas of activity
to third-party contractors to limit annual expenditure to a known, fixed amount
while sharing the risks associated with day-to-day operations. Investing in a
modern asset management solution can allow such participants to significantly
benefit from the supplementary value-added services that outsourcing offers.
Fierce Competition Spurs Partnerships
Previous large-scale investment is causing saturation in many sectors and
limiting the number of Tier 1 customers that require large-scale installations.
As a result, there is growing supplier interest in Tier 2 and lower level
companies. Many companies, especially market leaders, are opting for strategic
mergers, acquisitions and partnerships with specialist service providers to
maintain or increase their market share.
While there is a healthy demand for IAM software from all sectors, especially
the oil and gas industry, only suppliers with a strong background of
installations within this particular industry, or an industry that has similar
requirements, will see continued success, leaving little or no room for new
competition to penetrate. For new market entrants, in particular for smaller
installations, the manufacturing sector is more promising. "Focusing on the
use of cutting-edge technologies and personalised services will help smaller
companies to be competitive in the European IAM sector," says the author.
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