Enterprise Asset Management

What Is EAM?

What is EAM?

Enterprise Asset Management Helps You:

  • Reduce costs associated with repairing and replacing assets
  • Schedule asset maintenance
  • Monitor asset health and performance
  • Optimize asset performance
  • Automate parts of the supply chain process
  • Minimize risks associated with maintaining assets

Reduce costs associated with repairing and replacing assets

The main goal of enterprise asset management (EAM) is to maintain assets and prevent premature replacement.

Completely replacing a large piece of machinery or other physical asset can be incredibly costly, especially if it comes as a surprise. Asset management software facilitates cost reduction through the following activities:

  • Routine maintenance scheduling
  • Preventive maintenance planning
  • Condition-based asset monitoring
  • Predictive maintenance
  • Automating the supply chain
  • Reducing unplanned downtime
  • Reducing catastrophic failures

Routine maintenance scheduling is somewhat self-explanatory. It allows users to create maintenance schedules that focus on creating pre-arranged schedule slots for recurring maintenance tasks.

A preventive maintenance plan involves how frequently a business plans to perform these routine maintenance tasks, define asset hierarchies, set alerts for recurring maintenance events and more.

Condition-based asset monitoring involves advanced tools that monitor assets in real time. They watch for pre-designated signs of failure such as temperature spikes, unexpected changes in motor speed, sudden stops, etc. It allows users to create predictive maintenance plans, which hinge on replacing individual asset parts when they begin to fail based on condition-based monitoring.

By automating certain steps in the supply chain (we’ll come back to this), asset management reduces costs spent on excess inventory, emergency restock orders, additional procurement software and much more.

All these tools and strategies combined result in less unplanned downtime and fewer catastrophic failures — two of the most expensive things that can happen to your assets. Unplanned downtime costs you money in production time, emergency overtime and unexpected part replacement. Catastrophic failure can result in needing to replace the asset as a whole, an expenditure which can bankrupt a business. Asset management helps avoid these costly scenarios.

Schedule asset maintenance

Users can schedule recurring asset maintenance tasks in a calendar interface visible to the whole organization or visible to restricted users via role-based access. Some asset management software systems allow users to set alerts that will notify managers or technicians via SMS or email when a task is upcoming, reducing the chances of crucial tasks slipping through the cracks.

Administrators can also generate work orders based on these maintenance events and assign them to individual technicians, ensuring task completion and encouraging accountability.

Monitor asset health and performance

This can be performed in a variety of ways. Some solutions offer advanced condition-based monitoring software that tracks metrics and alerts users when a threshold is breached. These tools make comprehensive predictive maintenance accessible through detailed part monitoring.

If users don’t want to commit to the robustness of an EAM with condition monitoring, they can perform asset health monitoring tasks manually. These include keeping detailed records of asset maintenance, including videos and images in asset profiles so future users can quickly identify problems, enabling maintenance event alerts and other preventive tasks.

Optimize asset performance

EAM helps optimize asset performance in a variety of ways. Facilitating routine maintenance ensures that assets operate at or close to their peak performance without being hampered by faulty equipment or worn parts. Condition-based monitoring catches instances of wear and tear at the end of a part’s lifespan to further optimize asset operation while maintaining cost effectiveness.

Automate parts of the supply chain process

While supply chain management (SCM) is a software category unto itself, EAM can optimize and automate some of the supply chain process for organizations that don’t quite need an entire SCM solution. Specifically, EAM can automate operations relating to parts and materials, inventory, and procurement.

Inventory management modules generate barcodes and help users track stockroom levels so users never run out of a crucial part at an inopportune moment or order too much of any part.

Materials management helps keep sites safe by tracking hazardous substances as well as general shipments to keep everything organized. Procurement features allow users to order these materials and other parts from within the EAM interface, reducing inefficiency due to task-switching and the cost of a separate procurement solution.

Minimize risks associated with maintaining assets

Asset management software also helps keep sites and employees safe. Routine maintenance reduces the chances of catastrophic failures which pose serious hazards to worker safety depending on the asset type. This improved safety also helps protect your organization from legal action by ensuring you take necessary precautions to maintain safe equipment.


How Do I Know if I Need EAM?

The first question to tackle is, “Do I need EAM software?” This depends on your organization’s size, budget and needs. EAM is ideal for any organization that manages more than two or three technicians, and absolutely crucial for any multi-site or large, asset-heavy organizations. The best way to find out if you need an EAM is to get a consultation with an expert like the community managers at SelectHub.

What Industries Use EAM?

Asset management software is beneficial to any organization that needs to maintain physical assets. These can be facilities, infrastructure, machines, a fleet of vehicles, property and more. Some industries that benefit the most are asset-heavy industries like construction, commercial real estate, healthcare, oil and gas, government municipalities, education, etc.

What’s the Difference Between EAM and CMMS?

EAM and CMMS are often used interchangeably in the industry, and the differences are mostly semantic. To keep it simple, EAM offers the same maintenance management capabilities as CMMS with additional asset monitoring and tracking features. This graphic breaks the differences between EAM and CMMS down:

What’s The Difference Between EAM and ERP?

If EAM is a broader ranged version of CMMS, then ERP is the broader version of EAM. ERP, or enterprise resource planning, is a robust type of software that manages many different aspects of a business. It can handle accounting, human resources, distribution, sales, supply chain, customer service, business intelligence and more. EAM focuses solely on the assets with some spillover into BI and SCM, whereas ERP manages basically everything else. Most ERP systems do not manage assets to the granular degree that EAM and CMMS do, however.

How Do I Select an EAM?

Choosing the right EAM for your organization doesn’t have to be a chore. First, it’s crucial to define your requirements. This helps you determine which vendors to contact based on their delivery of the features you will utilize the most. For example, if you don’t have a fleet of vehicles, it wouldn’t make sense to choose a solution based on their fleet management module. This is the concept taken to its extreme, but you get the point.

Once you’ve identified your requirements, the selection process is much easier. Using this EAM software leaders comparison matrix, you can analyze some of the top providers of EAM in the market. Compare them based on how well they score for the features you identified in step one to ensure you create a shortlist of only solutions that meet your needs. Demos and trials help you establish user-friendliness of the remaining products, so make sure to request one from your shortlist vendors. This RFP template can guide you start to finish through this process of preparing for and procuring an EAM.

Recent Articles

Reports and Research

Quickly find the best assets available for your EAM selection research here. Our Market Research Analysts have clearly summarized and reviewed each asset to help you select only the assets you need.

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Your Guides

Our industry journalists proudly distill the helpful information you read on SelectHub, always on the mission to share what matters so you can make your best decisions independently.

EAM articles are written and edited by:

Zachary Totah

Content Manager

As SelectHub’s Content Manager, Zachary Totah leads a team of more than 35 writers and editors in their quest to provide content that helps software buyers find the right system for their company.

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Ryan McElroy

Content Editor and Senior Market Analyst

Ryan McElroy is a Content Editor and Senior Market Analyst at SelectHub who writes content on EHR, EMR, home health, telemedicine and construction scheduling.

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Kriti Agarwal

Technical Content Writer

Kriti is a Technical Content Writer at SelectHub, covering CMMS, EAM and facility management. She is an avid reader, daydreamer and animal lover, especially dogs.

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EAM vs ERP: A Comprehensive Comparison

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November 15, 2023

The business software world is full of buzzwords, some of which are so similar they can be very confusing. For example, what is the difference between EAM and ERP? While these two acronyms may seem similar, they actually refer to very different types of software. Let’s break down the differences between EAM vs ERP.

Bergen AdairEAM vs ERP: A Comprehensive Comparison
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IBM Maximo vs. SAP: Which Software Is the Winner?

November 13, 2023
As a branch of computerized maintenance management systems (CMMS), EAM software offers buyers management capabilities to maintain physical assets. It allows you to plan, optimize, execute and track crucial maintenance operations. Many EAM software offer great features, making it difficult for users to choose between them. In this article, we’ll compare two popular EAM systems — SAP and Maximo by IBM.

While our research finds IBM to have the edge over SAP, keep reading to learn how these two fare against each other in terms of individual features.

Kriti AgarwalIBM Maximo vs. SAP: Which Software Is the Winner?
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IT Asset Life Cycle Management: A Comprehensive Guide

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November 7, 2023
Enterprise asset management isn’t an easy task, especially in an IT environment. From acquisition to disposal, each phase presents its own set of challenges. Join us as we delve into the intricacies of IT asset life cycle management, unveiling the keys to efficiency and success in this ever-evolving digital landscape.

Riya JambleIT Asset Life Cycle Management: A Comprehensive Guide
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The Best Open-Source Enterprise Asset Management (EAM) Software

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November 3, 2023
While full-fledged EAM software comes with all the bells and whistles, it can burn a hole in your pocket paying for features you don’t need. If you’re seeking cost-effective solutions with enhanced customization options, open-source EAM software may be the right fit. But which one should you choose? Let’s take a look at our analyst’s top picks.

Kriti AgarwalThe Best Open-Source Enterprise Asset Management (EAM) Software
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The Best Asset Tracking Software Solutions

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October 30, 2023

We are deep into the age of information. Gathering information is easier than ever, and organizations taking advantage of that have a competitive edge over their competitors. Tracking assets, for example, is a cost-effective way to utilize information to optimize a facility’s operations from the ground up and to put enterprise asset management software and practices to work. In this article, we’ll talk about what asset tracking software does, its features, and the best asset tracking software for the coming year.

Bergen AdairThe Best Asset Tracking Software Solutions
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What Is Fixed Asset Management? A Comprehensive Guide

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October 27, 2023
Fixed asset management is the practice of managing and tracking a company’s fixed assets. It is critical for any company that manages physical or other long-term assets, such as computers, manufacturing equipment, vehicles, etc. Here’s where fixed asset software, a part of the broader EAM category, comes in.

Kriti AgarwalWhat Is Fixed Asset Management? A Comprehensive Guide
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Top Asset Management System Requirements Checklist

October 23, 2023
Managing assets across your organization can be daunting, but EAM software makes the job easy. If you’re considering purchasing an EAM platform, it’s important to understand your organization’s asset management requirements first. Then you can choose an asset management platform best suited to your business needs.

Kriti AgarwalTop Asset Management System Requirements Checklist
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Top Fixed Asset Management Software Features And Requirements

October 19, 2023
Every company with fixed assets, such as machines and equipment, needs to ensure these assets operate correctly. But managing fixed assets without a reliable system in place can have dire consequences. If you don’t manage assets correctly, they can go missing or sustain damage. Fortunately, fixed asset software (also known as EAM software) offers a dependable system that helps you avoid unexpected asset damage or misplacement.

Kriti AgarwalTop Fixed Asset Management Software Features And Requirements
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The Best Asset Management Software

October 17, 2023
An organization is nothing without its assets — but they can be a lot to manage. That’s why most businesses use EAM software to digitize processes and improve efficiency and reliability. To help you find the correct asset management software, we’ve compiled a list of the leading solutions so you can make an informed choice.

Kriti AgarwalThe Best Asset Management Software
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Enterprise Asset Management (EAM) Best Practices: A Comprehensive Guide

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Last Reviewed:
Maximizing ROI from assets, equipment and machinery is the foremost priority for all organizations. Otherwise, the asset could become a liability and a source of financial loss. Enterprise asset management software (EAM) is what asset-heavy organizations need to utilize their assets. We will learn about some enterprise asset management best practices organizations can implement to reap maximum benefit.

Kriti AgarwalEnterprise Asset Management (EAM) Best Practices: A Comprehensive Guide
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Asset Management vs. Inventory Management

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Inventory management keeps track of the movement of stock that a company stores and warehouses. Asset inventory management is the process of tracking the equipment and supplies that a company uses to run its operations. It covers fixed assets such as equipment and property as well as intangible assets like intellectual property.

Kriti AgarwalAsset Management vs. Inventory Management
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Enterprise Asset Management Trends: The Future Of EAM

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The enterprise asset management market is booming. The market has changed accordingly as the focus has moved from simple maintenance management to organization-wide asset management. We’ve listed the latest EAM market trends, EAM market size and share and the state of the market in this article.

Kriti AgarwalEnterprise Asset Management Trends: The Future Of EAM
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What Is Fixed Asset Accounting? A Comprehensive Guide

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If you’re a business owner or an accountant, you’re well aware fixed assets play a crucial role in your company’s financial health. So how can you use fixed asset accounting in your EAM processes to manage such a key factor of your business? We’ll cover that and a lot more.

Kriti AgarwalWhat Is Fixed Asset Accounting? A Comprehensive Guide
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What is Asset Tracking? A Comprehensive Guide

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Last Reviewed:
Any business with a significant inventory has provisions and measures in place to monitor and track its assets. Assets can be physical assets such as inventory, cash, equipment, vehicles, investments and properties. Intangible assets are brand value, intellectual property and goodwill. Asset tracking, in its simplest definition, is the tracking of a company’s physical assets through barcode scanning or by GPS and RFID tags to confirm their location. It is an integral part of enterprise asset management (EAM). While the method is limited to physical assets, the impact of effective asset tracking can be felt on the intangible assets of a company too. For the sake of this article, we will be mainly talking about physical assets and how asset tracking solutions help monitor them.

Kriti AgarwalWhat is Asset Tracking? A Comprehensive Guide
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