According to a study by Mobile Experts, the asset tracking IoT device market will triple — from 22 million to 70 million devices — by 2022.¹ Industries that will benefit from this technology include the transportation, healthcare, agriculture, industrial, retail, and consumer markets. In this post, we’ll discuss what asset management is, how it works with the internet of things, and ways it can benefit your organization.
What is Asset Management?
Asset management (also known as asset tracking) is the process of keeping track of your company’s physical assets and their information, including who is using what, where, and when. Physical assets can refer to car and truck fleets, computers, and other equipment used in the business.
Many smaller companies rely on handwritten lists or Excel spreadsheets to keep track of their assets. Larger and more mature companies have implemented dedicated asset management solutions, which allow employees to easily access and update an assets’ information.
How Asset Management Works with IoT Devices
The internet of things integrates physical equipment with information technology systems by sending and exchanging data over the internet. IoT takes typical asset management software to the next level by allowing connected devices to automatically send information about their status without continual help from employees.
For example, you can turn an ordinary asset into an IoT device by attaching a sensor. The sensor automatically sends information about the asset’s status, such as location and possible malfunctions, to your central system. That allows companies to proactively collect and analyze data about their assets without human involvement. IoT asset management systems can also flag warning signs of equipment malfunctions and failures, using data to create automated maintenance schedules and preemptively service assets before problems occur.
3 Benefits of Using IoT Asset Management
The goal of many asset-intensive companies is to reduce costs and downtime from asset failure while still earning the highest return on investment. Here are three key ways IoT-enabled technology can help achieve this:
1. Extended Asset Life and Optimized Repair and Replace
IoT asset management allows for predictive maintenance that stops problems before they start. Unlike preventative maintenance that’s scheduled in advance at certain intervals, predictive maintenance uses performance data to determine if and when an asset is likely to fail, thus predicting maintenance needs.
How it works: when a component is no longer performing at an optimal level, the asset’s sensor will stream that data to a central system. As maintenance managers see the problem, they can put in a work order before the asset fails completely, reducing unscheduled downtime. This approach creates cost savings compared to routine preventive maintenance schedules because tasks are only performed on an as-needed basis instead of always during scheduled times.
2. Improved Efficiency and Reduced Human Intervention
The IoT automates a lot of inspection and work order filling, reducing the need for large human teams. The staff you have can focus more on strategic initiatives and fulfilling business needs instead of preventive maintenance schedules or detailed inspections. Moreover, automation makes processes more efficient and less prone to errors, increasing the efficiency of your assets.
3. More Effective and Strategic Cost Tracking
It’s difficult for businesses to cut costs if they don’t know where expenses originate. For instance, you may know that asset repairs cost a certain amount last year, but what assets needed to be repaired and what caused those problems? By understanding the root cause of the expense, you can help prevent it in the future. Data-driven asset management keeps track of this type of critical data to help businesses make smart financial decisions. You can then divert resources to the higher-priority activities and more strategic actions.
Use IoT Technology to Cut Costs and Improve Your Asset Management
IoT is a key driver of digital transformation and can help businesses integrate their physical and digital assets to improve operational efficiency. By investing in asset management platforms that use IoT technology to improve your ROI and reduce manual tracking work.