What Does Enterprise Asset Management Mean?
Enterprise Asset Management (EAM) is the management of the assets of an enterprise across departments, facilities, business units and geographical locations. EAM integrates techniques for holistic control and optimization throughout asset life cycles, including design, commissioning, operations and replacement.
Techopedia Explains Enterprise Asset Management
EAM is categorized as follows:
- Physical asset and infrastructure management
- IT service management
- Digital asset (electronic media and content) management
- Fixed asset management and accounting
- Emerging asset management
The EAM framework optimizes and extends asset life cycles and reduces Total Cost of Ownership (TCO) while maximizing Overall Asset Productivity (OAP) and Return on Assets (ROA), which is key for manufacturing and similar industries with high-value equipment.
In summary, EAM is geared toward the following results:
- Maximized ROA
- Reduced costs and risks
- Improved asset decision making
- Compliance with required regulations
- Increased asset service responses and enhanced efficiency
- Lowered TCO