What it is EAM Software?

An introduction to Enterprise Asset Management Software (EAM)

What is EAM software?

Enterprise Asset Management, or EAM software, enables organizations to manage the maintenance of assets throughout the lifecycle. EAM is used to implement, optimize, and monitor the maintenance activities with the associated assets, inventory, work orders, tools, and information.

Governments and asset-heavy industries use Enterprise Asset Management Software to manage vehicle fleets, buildings, installations, infrastructure, and real estate.

The software pulls together data from various sources and departments to track assets from commission and design, construction, operation, and maintenance, to demolition. It covers the entire lifecycle.

EAM is an all-encompassing asset management from design to demolition, or from purchase to replacement.

What is EAM Software

EAM vs CMMS

Every day, Hippo CMMS helps manufacturers around the world run their operations smoothly.

CMMS software started out in manufacturing but is now used by maintenance departments across industries to streamline maintenance. Data-rich work orders open clear lines of communication between managers and technicians. Inventory management ensures technicians have what they need when they need it. Automated reporting ensures everyone stays accountable. Everything works toward reducing downtime and extending asset useful life.

Enterprise Asset Management software can include some of the same features as a CMMS, plus many more.

These additional features are for asset management, which just means trying to get the most out of assets over the longest time for the least money.

Because of its laser-focus on assets, EAM software tends to be used only by governments and large, asset-heavy organizations. It’s a solution for organizations that are, for example, building bridges, maintaining a fleet of 20 cement trucks, or running an oil rig. Because asset tracking is so detailed and covers assets’ entire lifecycles, Enterprise Asset Management is used across multiple departments by everyone from C-level executives to frontline technicians. 

Now, providers design systems that are user-friendly and configurable to meet the needs of their widening customer base, some of which can be explored on directories like CapterraSoftware AdviceSelectHub and Gartner

EAM vs CMMS

Benefits

Consistently formatted, accessible data

Large organizations often have trouble sharing information between departments, leading to data silos. When everyone is using the same centralized system, data can move freely, allowing organizations to create a detailed big picture of it assets.

Informed decisions

Another big advantage is being able to calculate an asset’s TCO (total cost of ownership), which is how much it costs to not only buy but keep an asset.

A quick example is when you buy a car. You pay for it up front, but then there are all the ongoing costs, including insurance, gas, and regular oil changes. Once you know the TCO, you can decide if you should keep it, sell it and start taking the bus, or just drive it less.

Accurate budgeting

A big advantage of asset management is being able to calculate where an asset is in its lifecycle. The older it gets, the more organizations need to put aside for repairs and eventual replacement.

Enterprise Asset Management Software for large scale organisations

On a much larger scale, organizations can use an EAM to decide when assets should be repaired or replaced. The software can answer:

  • How often has this asset broken down in the past?
  • How has this downtime affected productivity?
  • What has each breakdown cost for repairs and lost productivity?
  • How often will the asset likely breakdown in the future, and what are the associated costs?
  • How far is the asset into its expected useful life?
  • What are the terms and conditions of any existing warranties?
  • How much will it cost to replace the asset?

For the organizations that need it, EAM software is a powerful asset management tool.

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