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Intelligent Asset Network: An Innovative
Approach to Operational Excellence
Sunil Srinivasan, Senior Principal, Industry Value Engineering, SAP
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public
AGENDA HERE
1Digital transformation impacting business
processes across the Extended Supply chain
3How intelligence in the assets provides an
opportunity for innovation
2 Trends shaping the Asset Management
SAP’s Next generation Asset management
solutions 4
Q&A5
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Public
Digital transformation in the extended supply chainBridging traditional lines of business
Supply chain R&D/Engineering Manufacturing Asset management Sustainability
Customer centricityOmnichannel
Individualized productsIndustry 4.0
Resource scarcitySustainability
Sharing economyBusiness network
Customers and
markets
People and
resources
Products and
assets
Suppliers and
logistics
End-to-end
visibility
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Public
Trends shaping Asset Management
Cloud –
to establish an asset network
Big Data –
to predict behavior of assets, people, and
processes
Analytics –
to monitor performance of assets, people,
and processes
Enterprise Mobility –
to be more effective and efficient
as well as to empower employees
Internet of Things (IoT) –
to connect the assets to the business (IT/OT
convergence)
Machine-to-machine (M2M)
communication –
to build cyber-physical systems
Technology
Enablers
Process harmonization across industries
based on ISO 55001, ISO 14001,
and ISO 45001
Managing cost, risk, and performance
holistically
Balancing operating expenditures (OPEX)
with capital expenditures (CAPEX) with
focus on asset lifecycle costing
Collaboration of engineering, procurement,
and construction (EPC) contractors, OEMs,
service providers, and operators
Empowerment of users with simplified
applications
Increasing stakeholder expectations that
require operating safely and reliably under
cost pressure
Business
Challenges
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Public
Connecting all stakeholders
alongside the asset lifecycle
Connecting corporate objectives
with the asset system
Asset Management in an ever-more-connected world...
Plan and design Procure and build Commission Operate Maintain DecommissionAsset
Cost
Risk
Performance
Manufacturer
Supplier
EPC
Service provider
Owner/operator
DealerIT OTConnecting IT with OT
55001
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Public
SAP Enterprise Asset Management
Asset Management Strategies getting more sophisticated
Mai
nte
nan
ce S
trat
egie
s
Dec
ide
on
Str
ateg
ies
Ho
listi
c En
terp
rise
Ass
et M
gmt
tact
ical
to
str
ateg
ic
fragmented to integrated
Source: taken from Gartner and modified.
Few Data
Big Data
Integrated
Information
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Public
Asset Health Control Center (AHCC) as the core application of the
solution makes unplanned machine downtime a thing of the past
AHCC FEATURES:
Monitor asset health and prevent failures
Initiate preventive counter measures that trigger service or
maintenance notifications/orders/requests (e.g. Plant
Maintenance, Multi Resource Scheduling)
Enable a closed-loop maintenance and service process
Improve asset availability
and performance
by enabling maintenance
engineers to detect health
issues and fix equipment
long before failures occur
Improve return on assets
by promoting overall
equipment effectiveness,
enhancing maintenance
efficiency, and lowering
maintenance costs
Reduce annual service
and maintenance cost
by improving first-visit-fix
rate
Increase asset utilization
by monitoring and analyzing
asset health to predict future
failures and reduce
unplanned downtime
TYPICAL VALUE DRIVERS
EXAMPLE CUSTOMER BENEFITS
31%Lower annual
maintenance costs
8.2%Higher asset
productivity
25%Lower unplanned
downtime
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Public
Where is Asset Maintenance and Service Today?Different Stakeholders with Different Concerns
How can I improve my product’s
reliability and up-time?
Which quality problems are
arising with purchased
components?
Which service level do we need
to provide?
How can I provide the best service at the right time?
How can I reduce service and operational
cost?
How can I improve efficiency and improve
processes?
Asset
Manufacturer
Asset
Operator
3rd Party
Service Provider
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Public
Asset NetworkSAP Asset Intelligence Network
Applications
Pump OEM
Valve OEM
Service
Provider
Chemicals
Mill / Mining
Oil&Gas
Content Integration Network
Shared Model
Database
Global
Equipment
Registry
Business Partner
Network Services
OperatorsOEMs Service Providers
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Public
SAP Asset Intelligence NetworkSAP solution for collaborative asset management
Apps for collaborative processing of service bulletins,
performance improvement, and spare parts change
management
A cloud portal of standardized content that defines
and documents equipment and models, shared
and stored, for a consistent definition between
business partners
A secure network to connect multiple business
partners for inter and intra company collaboration
SAP Asset
Intelligence
Network
AppsCombined together
to deliver
Content
Network
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Public
SAP Predictive AnalyticsGain completely new insights from your assets
Telemetry data Sensor measurements
Geospatial data
Diagnostics
Events
Business data Warranty information
Maintenance/ service history
Customer profile
Dealer events
Cost and risk
Third-party data …
Structured and unstructured, such
as a weather forecast
Benchmarking
Prioritizing
maintenance and
service activities
Machine health
and early
warnings to
prevent downtime
Design
improvementsSelling
performance /
pay per use
Optimized
warranty and
spare parts mgmt.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Public
New user experience for asset managementEmbedded SAP 3D Visual Enterprise, side panels, QuickViews, new list views, enterprise search, mass change,
personalization,...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Public
Spatially enabled SAP solutionsExample: Enterprise Asset Management
Desktop Mobile
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Public
Many companies are actually doing this todayAcross many industries
Compressor Manufacturer
Equipment ManufacturerTrain Operator
Utilities CompanyChanged the business model from selling
compressors to selling compressed air.
Resulted in improved ability for compressor
stations and a move from unplanned to
planned maintenance.
40% of maintenance effort is for
corrective maintenance. Implemented
remote train diagnostics, engineering
rules and predictive models, resulting in
lower maintenance costs, less effort
and higher passenger satisfaction.
Business requirement to improve asset
performance. Predictive maintenance
resulted in reduction in equipment failures,
while improving reliability and customer
satisfaction.
Target to strengthen company brand by
improving product quality and reliability
through analysis of equipment telematics
data. Resulted in warranty cost reduction
and shortened detection-to-correction
cycle, while improving equipment up-time.
Thank you
Contact information:
Sunil Srinivasan
Senior Principal
Toronto, SAP Canada