| | October 20158CIOReviewCloud Considerationsin Asset ManagementIntensive OrganizationsBy Hart Levy, Director, Management Consulting - EAM & MRO Spares Inventory, Hitachi ConsultingFour Areas to Evaluate Prior to Pursuing that Path Newer workforces expect greater access to a wide variety of data availability via the internet and through mobile devices. The Asset Management Cloud continues to expand that transformation to organizations that are prepared. Most believe that Cloud technology offers organizations the ability to expand their offerings by leveraging the SaaS (Software as a Service) offered by Cloud applications and reduce cost of procuring and maintaining ERP solutions. An online survey of Gartner clients found that a total of 47 percent of organizations plan to move their core ERP systems to the cloud within five years . CIOs developing a Cloud Strategy, need to conduct an in-depth evaluation technically and operationally when pursuing the path of replacing the current Asset Management solutions.· Asset Management Requirements· Standardization of Processes · Cloud and 3rd Party Apps· Overall Cloud StrategyAsset Management RequirementsOrganizations that have less complex maintenance processes, such as facilities, should find Cloud Asset Management solutions a viable alternative to "on premise" managed solutions. Companies that are in an industry that is considered "asset intensive" often require more complex solutions, possible third party integrations and potential customizations. Asset Intensive industries include Metals/Mining, Oil and Gas, Pulp and Paper, etc. These asset intensive industries will likely need to consider a comprehensive list of requirements prior to defining a Cloud Strategy. As ERPs introduce their Asset Management solutions, they may not have all the current functionality as the legacy ERP or CMMS solution. They may not even offer the same level of integration into the ERP including Projects, Supply Chain and Operations. A significant number of IT organizations have not been able to successfully make a business case to replace legacy stand-alone CMMS systems with well integrated ERP solution. This lack of adoption has cost many IT organizations hundreds of thousands of dollars to develop and maintain the required integration.Because of this resistance to change, and need for third party integration and potential customization, asset intensive companies may need to consider a hybrid approach to cloud computing. This means a possible hybrid strategy that initially adopts Cloud such as Finance or SCM while maintaining legacy systems. Standardization of ProcessesCloud applications do not always readily support or allow customizations or extensions. The approach tends to be "Out of the Box"hat implies that each business site needs to be willing to adopt a series of standard processes. The concept of "we call it this" and "they call it that" will need to be addressed. IT organizations need to consider the introduction of Cloud Asset Management as a "re-implementation" or replacement of their current solutions. There should Hart LevyOpinionIn My
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