IBM Ranked the EAM leader for 11th year by ARC Advisory Study

It was October 2006 when IBM acquired MRO Software and Maximo. At the time I was working on the Industry Marketing Industry team and we worked closely with the analyst firms including ARC Advisory Group. Naturally we wanted to show the world how Maximo would continue market leadership now that we were an IBM brand. I am happy to report the analyst firm ARC Advisory Group just ranked IBM as the worldwide leading supplier in the Enterprise Asset Management market segment in their research report titled ‘Enterprise Asset Management Global Market 2016 -2018’. For the eleventh consecutive year, IBM has held the overall leadership position in the report. This evaluation is unique because ARC is the only analyst firm who tracks and measures success of Enterprise Asset Management offerings across a number of diverse industry segments in the EAM solutions market. The research report was published in June 2017 and is based on calendar year 2016 data.

Highlights

The ARC Study publishes market share results for 34 different metrics based on geography, industry, sales model and asset type and according to ARC Advisory – IBM Maximo the leader in 21 of the 34 metrics. Ralph Rio, Research Director, ARC Advisory Group, comments “Maximo solutions for EAM are well proven with deep functionality and specific vertical industry solutions. This has helped continue its leadership for over a decade.”

ARC Advisory Group has recently released their annual Enterprise Asset Management Global Market Study where for the 11th year IBM Maximo is the leader in overall market share for software, implementation, and services. ARC Advisory Group is the only analyst firm that measures the market share by industry and asset type. The report found that IBM holds the leading market position in the following segments:

o    EAM worldwide and EAM North America, EMEA, Asia and Latin America

o    EAM Implementation, and Services revenues

o    EAM among Tier 1 customers (over $ 1 billion in revenue)

In addition, IBM held the top one or two positions for the last 10 years in the following EAM segments:

o    Electric Transmission & Distribution

o    Water & Wastewater

o    Government

o    Transportation

o    Pharmaceutical & Biotech

o    Healthcare

o    Refining

o    Oil & Gas

o    Complex Asset MRO

o    Financial

o    Machinery

o    Linear Assets

o    Facilities

o    Production Equipment

o    Fleet

ARC’s key findings:

In the study Ralph writes, “The combination of IoT with predictive maintenance and EAM has strengthen the business for EAM adoption. Predictive maintenance for critical assets helps assure that maintenance occurs when it is truly needed, and avoids over/under maintenance. Asset management becomes more effective at lower cost.” He continues, “Enlightened executives are making the connection between typical EAM objectives (uptime, asset longevity, cost control and safety) and business metrics (margin & revenues, cash conservation, profitability, and risk management)”

Other key findings include:

  • Though a mature market, future growth is forecasted to be robust with a high adoption rate
  • SaaS has improved adoption with a lower cost of entry, but at the same time the lower cost has depressed revenues. The net result does not appear to have dampened overall market growth.
  • SaaS has caused some market turmoil with those without it having difficulties, and allowing an opening for new market entrants. Recently, this SaaS driven turmoil has run its course and subsided.

ARC’s recommended strategies for success:

ARC recommends that organizations use a business case for justification of a new EAM system based on C-suite metrics, avoiding focusing only on technician productivity. This strategy helps get executive attention and the resources to assure successful implementation. The approach includes the following parameters:

  • Improved Uptime: Unplanned downtime causes many problems including reduced output. Well maintained equipment is more reliable. The higher uptime provides more output which improves revenue, and the associated P&L statement.
  • Asset Longevity: Well-maintained equipment lasts longer, reduces capital expenditures, conserves cash, and improves the balance sheet in a way that increases shareholder value, i.e. the price of the stock.
  • Adapting mobility: ARC says “unfortunately the mobile device of choice is still paper.” A mobile solution allows technicians to enter data and obtain information as they do the work. The improved data quality improves the integrity of the EAM system. It moves beyond a record of past activity, and becomes a trusted tool for planning and managing maintenance execution.
  • Integrate EAM with IoT for PdM: ARC believes there is gap between systems that identify an issue with a piece of equipment and the system managing the maintenance of that asset. Having a tighter integration will avoid lost alerts, and help assure the equipment repaired before it fails as predicted

ARC advisory group assessment of IBM asset management

“IBM’s EAM applications include Maximo and TRIRIGA that are contained in its division IBM Watson IoT division. IBM Maximo asset management provides a platform that supports maintenance for a variety of asset types including production equipment, linear assets, facilities, and fleet. It allows visibility and control of assets across the organization, and consists of six key management modules: asset, work, service, contract, materials, and procurement management. Maximo enables the user to develop comprehensive programs for preventive, predictive, and routine inspections and unplanned maintenance.

IBM Maximo asset management provides a platform that supports maintenance for a variety of asset types including production equipment, linear assets, facilities, fleet, and field service management. It allows visibility and control of assets across the organization, and consists of six key management modules: asset, work, service, contract, materials, and procurement management. Maximo enables the user to develop comprehensive programs for preventive, predictive, routine, and unplanned maintenance.

With client participation, IBM has created a library of industry solutions with specific functions beyond those that come with the base software. The industry solutions include Nuclear Power, Utilities, Oil & Gas, Transportation, and Aviation.

My last thoughts

After working with Maximo since the beginning in the 1980’s, and seeing the changes in technology, the shift from client-server to web, and now web to cloud, it is very rewarding to see Maximo’s continued leadership. View the Infographic and discover how many leading organizations are choosing Maximo.

Continue to explore the real value of EAM. Reduce costs, increase return on assets, enhance overall operational efficiency. Learn how combining the world-class power of IBM Maximo with IoT data and cognitive analytics can drive continuous improvements and ROI.

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