Based on research done in 2019 involving more than 2300 companies, dealing with the most varied subjects, seven main and relevant risks were highlighted by small, medium and large companies in different stages of digital transformation.
Maintenance is that are within the company whose goal is to keep the equipment in good conditions of use by Operation or Production.
Asset Management, which includes Maintenance within it, goes well beyond, incorporating things like constant focus on innovation, improvement, technical and social disruption and… risk management. And the greatest threats to Asset Management lie precisely in risk management (or lack thereof) associated with digital transformation. Let’s dive into some of the main risks:
Each and every piece of equipment that has been put into operation by 2010 needs a technological update. With more than 10 years of use, its replacement is (very) likely to be a more cost-effective and viable solution than its maintenance costs.
With digital transformation, barring honorable and specific exceptions, no analog performs better than digital. The future is digital and we must prepare for this new way of working, of doing business, and of using and getting results.
Most of the time, companies think and execute their digital transformation strategies ignoring their supply chain. Increasingly complex and global, supply partners can be a weak link in the safe and empowering digital transformation that Asset Management cannot do without.
Those who are not at least thinking of IIoT (Industrial Internet of Things) are well behind the curve. And the lesson here is that connected devices will surely bring numerous benefits, but imminent risks. The kind of attack that used to occur “only” on copies of documents, pen-drives on computers, tablets, and smartphones, now could, in theory, happen right from your main machine.
Parts and Materials, stocks and just-in-time availability, are neglected in the management systems and seen as a responsibility for “others”, those who deal with the logistics and supply chain, which is the reason for their great risk potential. It is important to invest in well-defined procedures that raise the level of automation, knowing that a failure in these processes can cause total or partial paralysis of the company.
Digital transformation does not mean erasing human action. On the contrary, people are a fundamental part of the success or failure of this transformation.
Whether due to lack of knowledge, which happens in most cases, or due to malicious actions, employees end up being one of the weakest links and, therefore, one of the main risks to be managed.
In all areas, from occupational safety and labor legislation to environmental aspects, from product quality to service level agreements, there are a lot of regulations and changes in legislations, every day.
Regulation is a part of the digital transformation which is increasingly present and has to meet international norms or standards.
Digital transformation is a major ally for companies, with tangible effects on Asset Management, but it cannot overlook issues such as overlapping laws in global companies, which need to follow different regulations, and, in some cases, be tormented by bureaucracy in detriment of the best practices.
High Management and Leadership
More than providing moral support, the businesses’ upper management must allocate resources and determine responsibilities in dealing with the digital transformation. Conflicts of belief, politics, and even the struggle for power within organisations are major risks that digital transformation has and will face every day.
A multi-year Asset Management Master Plan, with periodic reviews, can set the path to follow, removing or mitigating risks inherent to never-ending work that has long-term effects.
To take a step forward in asset management and join the digital transformation for good, learn 26 reasons why you should adopt an asset management software for your business.