Manage: the past.
Optimise: the future.
Manage: the past. Optimise: the future
Naveen Radhappen – General Manager – Asset Optimisation
If you’ve heard the term Asset Optimisation used around the industry traps, you could be forgiven for dismissing it as another buzzword — a fresh take on the more traditional variants of Asset or Facilities Management. After all, the Institute of Asset Management (IAM) — which collaborates with asset and maintenance organizations worldwide — categorised asset management into 39 subjects areas, with the term optimisation not featuring in any of the subject titles.
Before you relegate the term to the industry jargon stockpile though, it would be prudent to know that of these 39 subject areas, the term optimisation is directly referenced in 15 of them. And further to this, every single subject discusses in some way or another the importance of optimising the actions being performed in the asset management process.
Like a cool change in the forecast, you might not be feeling the effect of the optimisation shift right now, but it is coming, and the change will be dramatic. Those who prepare for a future that is optimisation focused will be ready for the transition and will stand to reap the enormous benefits on offer. Those who don’t risk being left behind.
Filling the new role of General Manager for Asset Optimisation at Hendry, and a leader in this space, is Naveen Radhappan. Acknowledging that it may seem difficult to separate the terms management and optimisation on the surface, Radhappan says that a good way to understand the distinction is to think of optimisation as a key component of improving how asset management is executed.
“Improving the effectiveness of overall asset management by providing more holistic adjustments is what Asset Optimisation is all about,” he says.
“To be an effective asset manager, you need a clear picture to make good decisions. It’s about knowing where and when you can make the adjustments that you need, in order to get the best value out of your asset. If the relationship between decisions and the associated risk is not established clearly, the potential impacts of those decisions remain unknown and not auditable.”
Technology plays a huge role in this space, as Asset Optimisation moves the service of management into a data-driven arena, and according to Radhappan, advancements in the ‘Internet of Things’ (IoT), will be a big driver of this shift.
“Internet of Things is a term referring to the way we can connect our physical devices to each other over the internet or network,” he says. “Just about everything has the potential to connect to the internet, from your shoes and clothes, to the air conditioner in a major facility, allowing us to control each individual device, space and environment better.”
With this control comes information — the long-term accumulation of data about all facets of your facility, and with the appropriate analytical tools in place, you will be better able to assess risk, make smart decisions and effectively manage the ongoing financial investment and long-term health of your asset.
“IoT has the potential to create an economic impact of $2.7 trillion to $6.2 trillion annually by 2025, with the major impact in healthcare, infrastructure and public sector services,”
“IoT is ushering in new possibilities for facilities management, encompassing both ‘soft issues’, such as food service and cleaning, and ‘hard issues’, such as maintenance. The major benefits will be in cost-reduction, risk reduction or mitigation, and improving the customer experience.”
The opportunities surrounding IoT within Asset Optimisation are potentially game-changing, from 24/7 proactive asset monitoring to optimised asset performance and energy consumption, as well as targeted asset lifecycle management.
It doesn’t stop there. Providers are exploring many new technologies for data gathering and analysis, such as drone technologies and virtual reality, with the latter expected to grow by 13,000 per cent in the next three years — nearly five times faster than the iPhone. And according to Radhappan, the growth of GenY employees in the industry is what is increasing this rate of change.
“Beyond the technology shift, we have a demographic shift, which is amplifying the effect,” he said. “Gen Ys are now well over 20 per cent of the workforce and will make up 40 per cent by 2020. GenYs are 2.5 times more likely than older generations to be early adopters of new technology. Gen Ys are tech savvy and have on demand expectations in all aspects of life, demanding purpose and remaining conscious about the sustainable use of resources.
“This perfect storm has created a fast rise in customer and employee expectation, especially within the Gen Y demographic, who want it all now.”
We are in a period of unprecedented change, starting with a technology shift, and adoption rates are occurring faster all the time. As social, political and economic factors also drive this new reality for business, it is important for companies to stay ahead of emerging trends and embrace new technologies and new ways of doing things to avoid becoming victims of this disruption.
The flipside of this is the exploration of the opportunities that these new technologies and trends offer. The end game has always been about maximising the value, benefits and lifecycles of our assets and facilities. This exciting future appears dedicated to achieving this end more efficiently and effectively than ever before.