What impacts the ROI of an EAM system?
Calculating the value of an EAM system can be complex because some of the most valuable benefits, such as improved knowledge-sharing or easy access to operational data, enable a range of improvements across the organization, from the production floor to the boardroom. Sometimes, it’s easy to put a number on the benefit achieved, for example, in terms of hours saved when eliminating the need for manual reporting. Introducing EAM might’ve changed the entire way the organization works but assigning a monetary value to a positive cultural change can be difficult.
The cost of EAM is the purchase price of the EAM software, including all the costs related to operating, training, additional programs, the implementation process, etc.
If the result of the calculation is above zero, the investment is generating value. How quickly you get to this stage depends on the size of the investment, the requirements of the application, and the capabilities of the software chosen. Ultimo’s EAM solution is known for rapid deployment, giving you quick access to the benefits it can deliver.
It is essential to bear in mind that generating value takes time. That’s why the improvement should be measured at appropriate intervals to get an accurate idea of how the software performs. A few months after implementation, training might still be ongoing, or the operators might not have had time to act on the information gathered by the EAM system. Six months later, the improvements should be more visible and even more prominent a year on. In the first couple of months following the implementation, the ROI figure is often negative. This doesn’t mean that the EAM system is not having a positive impact on the organization; it simply means that values have not yet outweighed the cost of the software: the expected payback time depends on the size of the implementation and the types of processes the EAM is used to optimize.
Learn from your peers
Customer case studies provide real-life examples of what ROI companies have achieved with their EAM system. This gives vital insight to guide the EAM software selection process. When evaluating your EAM provider, find out how quickly customers in your sector are typically seeing ROI.
Here are some highlights from our customers, showcasing how quickly they started seeing return on their investment!
Zandvliet, a provider of meat products for butchers and retailers – ROI of under 6 months: Adopting IFS Ultimo allowed the company to move from corrective to preventive maintenance, increase hands-on-tool time, and achieve significant cost savings immediately after implementation.
Global chemical manufacturer BASF Netherlands – payback period of approximately 2 years: the company achieved through improving compliance with regulation, centralizing critical information to optimize ease of use, and enhancing collaboration between teams.
Hutchison Ports ECT Rotterdam – payback period of under 2 years: the organization leveraged IFS Ultimo’s EAM platform to create a fully integrated workflow for all key processes, while the mobile solution helped realize further improvements in efficiency and reliability.
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