Overcoming challenges of asset management amid declining federal budgets

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1 IBM Software Government Thought Leadership White Paper Overcoming challenges of asset management amid declining federal budgets Extending government infrastructure life cycles with IBM Maximo solutions

2 2 Overcoming challenges of asset management amid declining federal budgets Contents 2 Executive summary 3 Solving complex challenges on a smarter planet 6 Making the case for IBM Maximo Asset Management 7 Support for industry best practices 7 For more information 7 About Tivoli software from IBM Executive summary As federal governments face increasing economic pressure to improve efficiency, it becomes increasingly difficult to justify and support large IT programs. Historically, agencies and other large organizations within federal governments have relied on fleet replacement programs, systems acquisitions and modernization programs to provide new, updated logistics solutions. These programs have traditionally included a budgetary allotment for maintenance and logistics software and systems implementation. Modern asset management solutions are often no longer included in large program budgets and logistics professionals and engineers at federal agencies are being tasked to do more with less and extend the service life of existing assets. Without the ability to piggy-back modern asset management solutions onto large program budgets, agencies must find other ways to modernize their asset management solutions, and they have many good reasons to do so. Built on a single platform, IBM Maximo Asset Management solutions for federal government deliver seamless integration and support maintenance of all asset types across the enterprise, from production and facilities to transportation and IT. IBM Maximo Asset Management capabilities include: Creating a holistic view of current property ownership, stewardship, location and status, enabling visibility into the entire asset life cycle. Facilitating higher asset performance and mission readiness. Better managing risk and compliance with government, environmental and safety regulations. Driving accountability and governance through increased visibility and control of assets. Enabling system consolidation and an enterprise view from a single platform. Using leading standards-based technology including a webarchitected platform built on J2EE with advanced business process management based on SOA, web services and XML.

3 IBM Software 3 Facilities Property assets Asset management for federal government IT assets Hardware, software, licenses, networking Implementing software solutions that are flexible, quick to configure and easily integrated with legacy systems. Being able to manage services on converged infrastructures to ensure that smart devices are available and performing as required. Solving complex challenges on a smarter planet In today s world, federal agencies are forced to balance shrinking or static budgets with the pressing need to modernize their asset management solutions. To achieve success, federal agencies must address five principal challenges: Weapons systems Firearms, missiles, rockets IBM Maximo Asset Management Transportation Fleet assets, ships, aircraft, ground vehicles IBM Maximo Asset Management delivers a unified platform to track and manage the full spectrum of assets for federal agencies. Consolidating operational applications to gain an enterprise view of the asset portfolio and of all asset information. Maintaining control over the successful transition to a younger and less experienced workforce while at the same time managing the transition out of an aging technology infrastructure. Eliminating the need for business process reengineering by having sufficient depth of functionality in any new solution. Let s examine each of these five challenges in more detail: Consolidating operational applications From the human resources department to plant asset management, federal agencies need a consolidated view of asset information in order to gain a complete understanding of their asset infrastructure. Agencies that seek to do this must: Obtain world-of-work visibility to understand the full scope of their asset management picture. Gain the ability to not only know where an asset is being used, but to understand its criticality and backlog urgency though enterprise scheduling. Wield asset management capabilities to see the total cost of ownership for assets. Use more powerful tools to simplify reporting, ensure visibility into key performance indicators, and provide the depth of functionality to support linear and spatial decision-making models. Maintaining control amid workforce and infrastructure transitions Making the transition from a retirement-age workforce to one that is younger and less experienced is another challenge facing federal organizations today. As large numbers of highly qualified personnel leave, organizations risk seeing vast stores of practical

4 4 Overcoming challenges of asset management amid declining federal budgets knowledge leave with them. To manage this transition, agencies must be able to capture knowledge and asset-management best practices from experienced employees and institutionalize it. At the same time that the workforce is aging, so are the technology assets supporting operations. Minimizing the impact of the aging infrastructure requires organizations to: Understand the difference between ledger-driven business processes and asset-driven business processes. Maintain configuration control of the assets the organization owns as compared to relying on outsourced product life cycle management solutions. Use a well-established enterprise asset management solution that has its own ecosystem of partners for support and add-on solutions. Enable condition-based maintenance to minimize asset downtime, reduce spare-parts inventory and control costs. Develop smarter processes to address aging assets. Centralize management of assets based on age, maintenance records and other important criteria to optimize return on investment, facilitate compliance with regulations and minimize risk. Deep support for existing business processes Business process reengineering (BPR) is something many federal government agencies are no longer willing to undertake in order to make commercial off-the-shelf solutions function optimally. When agencies deploy enterprise resource planning (ERP) software to replace legacy asset management systems, they risk losing the deep functionality to support their business processes which came only after years of tweaking and customization. That s because ERP software focuses on ledgers instead of assets. The depth of functionality in Maximo Asset Management provides more control across the entire enterprise with options that can be acquired separately based on specific needs. This approach ensures a full complement of asset management capabilities for federal government entities. Calibration uses an integrated approach to automate calibration processes, leverage traceability, and improve compliance and work planning. With today s explosion in instrumented devices, being able to view calibration work alongside other work drives efficiency of work planning, scheduling and execution, and helps increase equipment reliability. GIS spatial integration enables spatial visualization and analysis of work and asset features. Many federal government entities use GIS software to provide geospatially enabled applications, and these solutions may capture information that can help with asset management. The GIS spatial integration capability enables bi-directional data exchange that allows valuable work and asset information to be exchanged between the Maximo solution and GIS software systems.

5 IBM Software 5 Linear asset modeling makes it possible to leverage the improved data capture, exchange and analysis that come with using linear models for assets such as roadways and railways. This is important because many data elements associated with a linear asset are not relevant for a hierarchical asset. Some data elements are also dynamic, which means they need to be managed in different ways. Given these facts, capturing linear information in free-form text fields within a hierarchical model is ineffective. A better practice is to model a linear asset based on the associated features and attributes. The user-driven interface further allows you to define integration services for Maximo Business Objects, define a transformation and processing logic, and define deployment parameters and systems. And with multiple integration options, federal government entities can use standards-based technology including a web-architected platform built on J2EE with advanced business process management based on SOA, web services and XML. Flexible integration, simple configuration Federal agencies no longer can justify multiyear implementation programs. As a result, many are turning to agile deployment methodologies with incremental funding. This approach requires software that is flexible, quick to configure and easily integrated with legacy systems. Maximo Asset Management is a unified strategic asset and service management solution that is purpose-built to manage all types of assets from a single platform. The solution includes many configuration and workflow tools to ease the process, including an easy-to-use application designer, an integrated database configuration tool, configurable rolebased user interfaces, dashboards that display real-time key performance indicators, configurable graphics and a powerful escalation engine. Maximo Asset Management includes many configuration and workflow tools including real-time dashboards showing key performance indicators.

6 6 Overcoming challenges of asset management amid declining federal budgets A comprehensive solution in a converging world On today s smarter planet, where everything from utility meters and road signs to nuclear power plants and electric grids has been infused with microprocessors, firmware, software, network connectivity and more, assets have unprecedented intelligence. These smart devices raise questions that traditional IT management tools and processes are not equipped to answer. Namely, how can you ensure that these devices are available and performing as required? You need the ability to manage services on converged infrastructures something Maximo Asset Management solutions can deliver. The resulting convergence of smarter assets is meshing the core concepts of enterprise asset management, IT asset management and IT service management into something new. The result is bringing substantial changes to the traditional help desk, which has typically focused on a narrow class of IT incidents or a particular infrastructure, such as server issues. Convergence transforms the traditional help desk into a consolidated help desk capable of providing support for all IT services across all types of IT infrastructures from a single software instance. This convergence is affecting physical assets, too. Today s service management model for non-it assets such as facilities, vehicles, ships, aircraft, roads, bridges and railways melds elements of enterprise asset management and IT asset and service management into a new service management paradigm that affects everything from the service desk to provisioning and service level agreements. Making the case for IBM Maximo Asset Management A wide variety of government agencies have already achieved measurable benefits through Maximo Asset Management solutions. Consolidation results in tangible savings. Over time, buying one new system to replace several existing systems is often cheaper than continuing to support outdated software. One large U.S. federal agency, for example, was spending $14 million annually to support just two out of many siloed maintenance and logistics systems. After deploying Maximo Asset Management to consolidate these systems into a single solution, the agency expects to save over $10 million per year. Integration lowers costs, increases reliability. A large Department of Defense organization that provides operations and life cycle support for training systems worldwide used Maximo Asset Management solutions to support more than 300,000 assets and 400 users located at multiple locations around the world. The solution enables a centralized, webaccessible point of access which standardizes processes for data collection and reporting while reducing infrastructure and IT support costs. Preserving knowledge to maximize benefits. A large federal government agency involved with the protection and preservation of resources faced a complex inventory of facilities scattered across a wide geography and an aging workforce unaccustomed to technology. A Maximo Asset Management solution has enabled the collection of comprehensive assessment data, resulting in better utilization of resources, clearer priorities and measurable results.

7 IBM Software 7 Support for industry best practices Maximo Asset Management solutions support the following best practices to address the government s specialized needs. World of work visibility means the ability to view the maintenance backlog across the enterprise and manage it based on methods such as asset criticality, geographic availability of resources (using spatial) and parts availability. Enterprise view of asset portfolio provides the ability to fully understand the asset portfolio and how it supports the agency missions. Where-used means knowing where one or more components are installed, in-stock or in repair to provide managers with the ability to improve availability and up time. Total cost of ownership visibility allows managers to make repair/replace or run to failure decisions. Root cause analysis support provided through a properly configured asset hierarchy with work order closeout data supports reliability centered maintenance. Simplify reporting, KPIs, spatial, linear and decision support allows the agency to move from reactive to proactive asset management posture in support of mission objectives. The Maximo solution allows organizations within federal government to see their assets, identify untapped potential within them, and deliver the knowledge and control the organizations need with the accountability legislators and taxpayers demand. The result is a consolidated, trusted platform for easily and effectively managing everything from the smallest tools and parts to complex weapons systems, mobile assets and IT infrastructures. For more information To learn how IBM Maximo Asset Management solutions can help your federal agency meet today s unique industry challenges, contact your IBM representative or visit: ibm.com/tivoli/maximo About Tivoli software from IBM Tivoli software from IBM helps organizations efficiently and effectively manage IT resources, tasks and processes to meet ever-shifting business requirements and deliver flexible and responsive IT service management, while helping to reduce costs. The Tivoli portfolio spans software for security, compliance, storage, performance, availability, configuration, operations and IT lifecycle management, and is backed by world-class IBM services, support and research. Additionally, financing solutions from IBM Global Financing can enable effective cash management, protection from technology obsolescence, improved total cost of ownership and return on investment. Also, our Global Asset Recovery Services help address environmental concerns with new, more energy-efficient solutions. For more information on IBM Global Financing, visit: ibm.com/financing

8 Copyright IBM Corporation 2011 IBM Corporation Software Group Route 100 Somers, NY U.S.A. Produced in the United States of America July 2011 All Rights Reserved IBM, the IBM logo, ibm.com and Maximo are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol ( or ), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the web at Copyright and trademark information at ibm.com/legal/copytrade.shtml Other company, product and service names may be trademarks or service marks of others. Java and all Java-based trademarks and logos are trademarks of Sun Microsystems, Inc. in the United States, other countries, or both. References in this publication to IBM products and services do not imply that IBM intends to make them available in all countries in which IBM operates. Product data has been reviewed for accuracy as of the date of initial publication. Product data is subject to change without notice. The information provided in this document is distributed as is without any warranty, either express or implied. IBM expressly disclaims any warranties of merchantability, fitness for a particular purpose or noninfringement. IBM products are warranted according to the terms and conditions of the agreements under which they are provided. The customer is responsible for ensuring compliance with legal requirements. It is the customer s sole responsibility to obtain advice of competent legal counsel as to the identification and interpretation of any relevant laws and regulatory requirements that may affect the customer s business and any actions the customer may need to take to comply with such laws. IBM does not provide legal advice or represent or warrant that its services or products will ensure that the customer is in compliance with any law or regulation. Please Recycle TIW14087-USEN-00

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