• Novice
  • Aware
  • Competent

Identifying Current Operational Issues

The approach to asset management information technology needs to take a practical view of the overall business environment of the asset owner.

The critical issues facing most organizations are:

  • Customer service
  • Environmental management
  • Financial viability
  • Business performance (productivity/efficiency/effectiveness)
  • Complying with statutory regulation
  • Staff job satisfaction/resource management
  • Risk management.

In the asset management area the critical issues in this resource/expenditure reduction become:

  • Staff culture and endeavour (work hard)
  • The effectiveness of what we do (work smart)
  • The efficiency with which it is carried out (work efficiently).

There is a need to know the true costs of the operations of the infrastructure, and the most critical factor is the allowance the organization makes for ageing passive infrastructure which will need to be replaced or rehabilitated in the future (that is, the true depreciation).

For this approach, it is essential to know the actual condition of each asset, the remaining effective life of each, the cost of replacement or rehabilitation and when this will be necessary.

A thorough knowledge of assets at risk (with respect to capacity, age, reliability, technological advances) must be known. These risks need to be managed appropriately.

Organizations with low population growths or a reducing demand need to be aware of the resultant problems. These include reduced revenue to help pay for the higher maintenance and replacement costs associated with older systems, and lack of new developments.

It is equally important for organizations with high growth rates to be aware of the cost and need to effectively care for their rapidly increasing asset base.

Responsible management of these assets is based on performance monitoring, condition monitoring and effective responses. It is dependent on human resources. Therefore effective management of assets requires application of effective human resource management.

Systems that can economically justify the need for certain practices and resources are essential to effectively manage business activities.

Organizations also need to practise asset management in order to comply with the external requirements, and to achieve the corporate objective of continuous viability.

The competitive market place requires the organization to continuously:

  • Identify investment opportunities
  • Appraise weaknesses and risk exposures correctly so as to minimise the potential liability in public litigation.

Data is often stored in a haphazard manner and cannot be readily accessed or used. Organizations with large investments in facilities, people, equipment and material dispersed over a large geographical area require an automated solution to manage these valuable resources.

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Example of IT Systems Needs Analysis   Initial Assessment