The Asset Lifecycle Journey: A Guide to Building a Smarter, More Proactive Asset Strategy

Facilities and equipment are the backbone of many organizations, making efficient asset lifecycle management (ALM) crucial for operational success. ALM tools help monitor asset conditions, automate maintenance, avoid failures, and extend asset lifespans.  

If you're still relying outdated methods for your asset maintenance and management that involve spreadsheets or paper-based tracking, read on to learn how ALM tools can bridge the gap between facilities, capital projects, and operations, to help you improve efficiency, reduce costs, minimize risks, and enhance future planning. 

Common challenges in asset lifecycle management  

The average age of U.S. facilities is roughly 50 years, many of which are struggling with productivity losses, compliance risks, and escalating maintenance costs.  When critical systems like HVAC or production equipment fail, reactive repairs might seem cost-effective – but over time, they add up. 

Digital tools like CMMS can simplify and accelerate maintenance workflows to improve efficiency and performance. And more advanced EAM software can make tracking asset lifecycles easier by providing a 360-degree view of asset conditions, repair histories, and associated costs. 

Solutions like these can help facilities leaders reduce their deferred maintenance backlogs by helping organizations transition from consistent short-term fixes to strategic decisions about repairing or replacing aging assets. 

These tools make it easier to move from simply making short-term fixes to more strategic decisions around repairs and replacements of aging assets. Some other common challenges that can impact asset lifecycle management outcomes include:  

• Staffing shortages: A lack of skilled labor, compounded by budget constraints, makes it harder to maintain facilities efficiently and retain valuable institutional knowledge.
• Poor technology integration: Disconnected systems for various facility components (HVAC, lighting, security, etc.) prevent organizations from achieving a holistic view of their operations.
• Siloed functions: Often, facility management teams aren’t involved in strategic planning decisions, making it harder to align maintenance efforts with capital projects or long-term goals. 

Addressing these common challenges is crucial, but building a robust asset lifecycle management strategy is key to long-term success. Here's how you can start creating a more effective ALM plan: 

Building a better asset lifecycle management strategy 

A centralized asset database is the foundation for effective asset lifecycle management. Not only does it help make daily operations more efficient, it can be helpful when unplanned disruptions occur.   

Just look at how it paid off for a school district in Waco, Texas who were able to secure an extra $8 million in their insurance claim payout after one of their schools caught fire. They used their CMMS data to provide detailed asset histories of what was lost and needed to be replaced. 

Though it might seem time-intensive to set up, organizing and tracking your data in a centralized registry can help protect your assets and minimize unexpected costs. To build a better ALM strategy for your organization, start by conducting a Facilities Condition Assessment (FCA) to create a complete asset inventory. This can give you a baseline understanding of the age and condition of your assets, allowing you to prioritize repairs and replacements.  

Next, organize your data in a system like a CMMS to automate routine tasks, improve workflow efficiency, and reduce downtime. This is ideal for organizations that are just beginning their asset lifecycle management journey. For more complex operations, EAM software can offer deeper insights through analytics, financial integration, and strategic planning tools.  

Lastly, it’s important to integrate financial planning with your facilities data. Asset Investment Planning (AIP) tools enable organizations to make more informed long-term capital planning decisions by forecasting asset life cycles and costs, ensuring transparent budgeting and maximizing ROI. 

Transforming operations through digital innovation 

The future of asset management lies in digital solutions. CMMS and EAM systems help facilities managers provide accurate data and projections to finance teams, improving approval chances for projects. 

Organizations can start small with digitization and scale to more advanced features like predictive maintenance and digital twins: 

• Smart sensors & IoT integration: These advanced tools allow for real-time monitoring of asset performance, automated alerts for potential issues, usage-based scheduling, and energy optimization.
• Digital twins: Virtual models of physical assets provide real-time tracking and predictive analysis, helping you plan for future maintenance needs and optimize operations.
• Smart building integration: Unified platforms can connect energy, space, and asset performance for a holistic view of operations. 

Beyond preventing disasters, IoT sensors can automate functions like temperature and lighting, optimizing energy use and focusing routine maintenance in high-traffic areas. This targeted approach reduces maintenance costs, optimizes staffing, and lowers inventory expenses. 

The benefits of asset lifecycle management 

ALM solutions offer numerous benefits, including extended asset lifespans, optimized maintenance, and data-driven decision-making. By adopting a comprehensive ALM strategy, businesses can shift from reactive to proactive maintenance, improving resource allocation and reducing failure risks.  

ALM also aligns capital planning with operational needs, optimizes energy use, and ensures assets perform at their best. Here are some tips for getting started:  

• Start with critical assets and basic digital documentation, then expand capabilities.
• Demonstrate wins like cost savings and efficiency gains to gain stakeholder support.
• Develop a phased implementation strategy aligned with organizational goals. 

By following these steps, organizations can effectively begin their asset lifecycle management journey and unlock the full potential of their assets. 

Conclusion 

Comprehensive ALM requires planning and commitment, but the long-term benefits far outweigh the initial investment. Organizations embracing digital transformation not only optimize their assets but also position themselves for sustainable growth and success. 

To explore how ALM can unlock new opportunities, watch our on-demand webinar, “The Asset Lifecycle Journey: Unifying Facilities, Capital Projects, and Operations” where our own Katie Gramajo discusses how to turn challenges into actionable solutions for education and facilities leaders. 

Or if you're looking for tips on choosing a CMMS solution, check out You Get What You Pay For: Evaluating CMMS Beyond Cost, a guide on the important considerations to keep in mind when selecting the right solution for your needs.