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The Smart Software Symposium: Asset Management

The Smart Software Symposium: Asset Management. Joe Baah Maximo Sales Leader. Market dynamics. Our clients, across all industries, are looking for ways to Cut costs Preserve Capital Create & Support new business models

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The Smart Software Symposium: Asset Management

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  1. The Smart Software Symposium: Asset Management Joe Baah Maximo Sales Leader

  2. Market dynamics • Our clients, across all industries, are looking for ways to • Cut costs • Preserve Capital • Create & Support new business models • Asset & Service management are proven to drive hard dollar ROA and ROI • IBM’s solutions enable you to manage the service management helps to; • Streamline operations…..reduce labor & inventory costs, • Asset infrastructure that can help improve competitiveness • Improve productivity…..reliability, quality - OEE • Prepare for regulatory changes; standardize & enforce processes, consolidate systems • Extending useful asset life and deferring non-essential maintenance

  3. The Challenge - Customer pain points Risk, Compliance Management • Regulatory compliance • Operational control Operational Excellence • Productivity & Energy Efficiency • Reliability ROI, ROA & Value for Customers Business Agility • Process Standardization • Ability to Adapt – New Business Models Business Alignment • Investment Accuracy • Resource Allocation Rational System Consolidation • Modern, Standards-based Technologies • Cost of ownership and Complexity • Increasing the reliability and availability of assets, and the services the assets collectively support • Example; reduce lost revenue due to Equipment failures • Improving performance of assets to impact the top and bottom lines • Example; timely vehicle maintenance to reduce costly fuel consumption • Capturing actual costs for labor, materials, tools & services • Example; improve bottom line by reducing unnecessary repairs • Managing 3rd party service providers interacting with business operations • Example; measuring provider performance against SLA’s • Reducing the cost and complexity of the IT environment support the business • Example; eliminating duplicative systems while standardizing on modern technologies • Standardizing & enforcing business processes • Example; support regulatory requirements to document and test business processes while improving efficiency and consistency of worker activities

  4. IBM Asset Management Leadership: Analyst View September, 2008 Gartner Magic Quadrant’s for Enterprise Asset Management Power Generation Manufacturing Transmission & Distribution “Under IBM ownership, MRO software has moved to extremely high viability. Global sales and implementation resources makes the solution widely available. Combined with Tivoli software, IBM Maximo Asset Management offers the opportunity of being able to manage IT-enabled assets with the same solution used to manage traditional EAM assets. High EAM investment and the leverage of IBM's research capabilities is bringing advanced maintenance functionality to market in the near future. It supports integration with a wide variety of ERP suites. It has native integration with ESRI’s GIS. It has versatility across multiple platforms." Gartner, “Magic Quadrant for Enterprise Asset Management for Transmission & Distribution” | IBM Internal Use | Slide: 6

  5. It’s not just about the asset … it’s about what the asset does… ..and services delivered to the customer.

  6. Industry is evolving to address complex, highly specialized asset management Automation Performance Services takes a growing trend and applies it to the highly specialized area of industrial automation Delivers automation excellence that drives business performance while optimizing risk Pay for Asset Performance and Usage ABB APM Performance Services Applied “Power by the Hour” “MRI By the Image” Proven business models re-defined industry definition of “performance”.

  7. Product quality and reliability Revenue Process and equipment availability andproductivity Profit Cost control/reduction Costs Price Equipment/fleet size Fixed Quantity generated Spares/Stockpiles Working Return on Assets Capital employed Asset Management – The Connection to Shareholder Value Asset management directly contributes to INCREASE REVENUES DECREASE COST

  8. Value propositions - Hard Dollar ROI with Asset Management • Over 82% of projects $50,000 and higher require a business value analysis (source: Alinean, 2006).In their procurement process, most customers are requiredto develop an business case for major IT investments • Final purchasing decisions are sliding back to the CFO… We need to solidifya buying decision by strengthen client’s business case • Asset Management models now part of IBM Business Value Assessment approach • Link to W3 site…

  9. Something Meaningful is Happening. “Every human being, company, organization, city, nation, natural system and man-made system is becoming interconnected, instrumented and intelligent.This is leading to new savings and efficiency—but perhaps as important, new possibilities for progress.” And Maximo is a big part of it!

  10. Ultimately every asset will be “smart” GLOBAL SALES OF WIRELESS MODULES FOR DEVICES, SENSORS AND MACHINES WILL GROW RAPIDLY FROM APPROX.33 MILLION UNITS THIS YEAR TO ABOUT 400 MILLION IN 2011. SOURCE: HARBOR RESEARCH THE NUMBER OF MACHINES CONNECTED TO CELLULAR NETWORKS IN NORTH AMERICA WILL REACH 66 MILLION BY 2011.AT THE END OF 2006, THERE WERE ABOUT 9 MILLION ACTIVE CELLULAR AND SATELLITE M2M CONNECTIONS IN THE U.S. & CANADA.SOURCE: BERG INSIGHT GLOBAL M2M MARKET WILL REACH $250 BILLION IN 2010.SOURCE: THE FOCALPOINT GROUP

  11. The Changing Landscape:Embedded IT Components Fieldbus and IEC 61850 (UCA) technologies for instrumentationand control need self-discoveryand software-configurability tools. The typical plant has thousandsof devices with some degreeof embedded intelligence used for real-time performance monitoring. Virtually every mobile assettoday has data collection capability. Whether continuously fed to the EAM application or via batch upload — performance data is being used for predictive maintenance. From vibration sensors to bearings withBluetooth to microprocessor based engine controls —even mobile equipmentis now IT-dependant.

  12. What’s smart about infrastructure? Centerpoint Energy uses Smart Meters to reduce power consumption through demand response. A bridge has built-in sensors to monitor stress and indicate potential failure. Locomotives built by Bombardier have on-board computer systems using telematics for real-time diagnostics. A datacenter reduces energy consumption and optimizes service delivery by collecting power, thermal and temperature inputs from IT equipment, datacenter infrastructure and facilities. Smart buildings use building automation systems to optimize comfort, safety and energy consumption.

  13. What is the role of asset management in a smarter planet? A smarter planet is built on intelligent, instrumented, and well-managed business and IT assets that enable rather than constrain innovation, transformation, and differentiation. • Manage business and IT assets together as services • Transform these assets into business value • Prevent asset-related health, safety, and business risk • Harness and manage emerging “smart assets”

  14. The knowledge and capability to deliver a specified business outcomewhenit needs to occur, within thetimeandcost parameters you promised it would. The Service Management from IBMDelivering quality service and enabling business innovation 17

  15. Swiss Rail Outage – June 22nd 2005 The good news Nobody was hurt 2 passengers fell in love and got married The bad news 199,998 other passengers affected 5,000,000 U$ of direct costs occurred The ugly news There would have been enough time, to handle the situation correctly but….... there were 18,000 system alarms within 60 minutes ... and the tools to handle them correctly were missing! Swiss Federal Railways • A power system at a single regional node created a local problem that avalanched into a system-wide breakdown • The volume of alarms over-whelmed control systems in place at the time, making it impossible to quickly isolate and correct the original problem 18

  16. Production Facilities IT Transportation IT Application ConsolidationManage all assets in one IBM system for greater efficiency and return on investment Unified IBM solution to manage all critical assets across the enterprise • ERP like consolidation of applications for asset management. • Fosters effective management of IT-enabled assets. • Improves communication lines, streamlines workflow and optimizes labor across asset classes. • Reduces management and maintenance cost of multiple, disconnected systems. • Increases IT and operational efficiency. Convergence through Consolidation Business process similarities between EAM and IT Service Management (ITIL)

  17. IBM Maximo Asset Management • Addresses business challenges of Operations and IT • Provides Service Management capabilities for • Asset Owners • Asset Managers • Service Providers • Consolidates point solutions for Asset and Service Management • Consolidates point solutions for various asset classes • Next generation J2EE Technology Platform

  18. Maximo Asset Managementmanage all assets, their conditions and work processes Industry Solutions (optional) Service Provider (optional) Asset Management Work Management Materials Management Purchasing Contract Management Service Management Locations Asset Failure Codes Condition Monitoring Meters Meter Groups Item Master Storerooms Inventory Lot Management Kitting Issues & Transfers Condition Codes Stocked Tools Service Items Job Plans & Routes Service Requests Service Items Work Order Tracking Safety Quick Reporting Labor Qualifications Lock-Out/Tag-Out Tools/Crafts/Companies Preventive Maintenance Master PM Assignment Manager Customer Customer Agreements Customer Management Customer Billing Bill Review Sales Order Response Plans Service Address Price Schedule Request for Quotation Receiving Receiving Inspections Purchase Requisitions Invoices Purchase Orders Desktop Requisitions Purchase Contracts Master Contracts Warranty Contracts Lease/Rental Contracts Labor Rate Contracts Payment Schedules Service Catalogs SLA Management Incidents Problems Changes Releases Solutions Configuration – UI, Database Fields, and Applications Enhanced Workflow – Event Driven, Context-based / Escalation Manager Maximo Enterprise Adapter KPIs / Reporting / Analysis Security & Administration

  19. Architecture Matters • Built from the ground up in a true Web Architecture • Evolution of technology since 1997;stable on platform 2015+ • Non-proprietarystandards based technology framework • Modern next generation architecture today; ‘Harrier’ point release • All applications built in a J2EE, n-tiered component architecture • Java 2 Enterprise Edition • Standard for developing multi-tier enterprise applications • Natively supports global security models • Maximo one of the few major applications J2EE certified • SAP and Oracle will ditch proprietary architectures for J2EE • Major technology jumps for vendors not on full J2EE or .NET platform • J2EE and Web Services provide ideal model for integration • Truly delivers Services Oriented Architecture (SOA) concept • Integration built directly into Maximo business processes • Compliant with Web Services-Interoperability Organization (WS-I) • Database led deployment and configuration suite • Screens, business process and integration settings deployed on database • Upgrade paths delivered for data model, screens, Workflow and Integration

  20. Ease of Configuration Database Configuration & Application Designer Built-in Tools Easy and Quick to use by all end-user Configure UI, dashboards, KPIs, reports, create new applications and more…

  21. Visibility of Performance Metrics and SLAs Configurable role based Start Center portlets Real-time KPI based dashboards Seamless integration of ITIL – based processes Configurable graphical representation

  22. Integration • Maximo Enterprise Adapter • Integrate any Maximo object • Dynamic Web services • Pre-built integration points • Assets, Locations, Work Orders, Service Requests … • Pre-built integrations to • SAP and Oracle • Maximo Fusion • Integrate Asset Center with any IT asset discovery tools • Pre-built integrations to • SMS, Altiris, Radia, Tivoli…

  23. ERP Support in Maximo

  24. IBM Industry Frameworks Drive IT Alignment with Business Processes Industry Solutions Composite Business Services ISV Services Process Models Data Models • PDIF Product Development Integration Framework Industry Frameworks Open, Industry Standards • MIF Manufacturing Integration Framework Business Optimization Business Integration • IIF Integrated Information Framework IT Operations SOA Foundation

  25. Differentiators.. ERP vrs EAM Maximo is the market-leading, best in class solution for Asset Management. • Most MAXIMO customers haveimplement ERP systems (SAP, Oracle) and integrated them • Our customers find EAM to be complimentary to ERP • Customers want to have unified view of all Assets & their impact on key business objectives • This visibility enables customers to drive a better Return On Asset (ROA & EBITA) Industry Solutions • Support regulatory requirements of each Industry • Provides data standards for each industry...ISO 14224 • Follow unique business processes and requirements of industry which avoid customisation of the system reducing Cost of Ownership (TCO) Maximo integrates with ERPs to combine information and optimize business processes across the enterprise. • “Productized” integration adapters for SAP and Oracle • Ability to substantially reduce the number of applications needed to support the business growth objectives

  26. Energy & Utilities Industrial Public Sector Oil & Gas Life Sciences Transportation Telecom Services Financial Vertical Industry Focus

  27. Group Type Advisory Council Special Interest User Groups Development Partners Working in Partnership with Clients Charter/ Objective External Members Run by Internal IBM Maximo Industry Mktg Executive Committee Industry Mktg Set Direction C-Level Industry Mktg Sales Services Exchange of Best Practice Customers Users Users Subject Matter Experts P&T Services Industry Mktg Develop Requirement Maximo Products & Tech Maximo WORLD Users C-Level MRO Marketing Promote Brand Exchange All IBMers

  28. Maximo Industry Solutions • Life Sciences Pharmaceuticals • Utilities • Nuclear Power Generation • Oil & Gas • Transportation / Fleet • Government • ITSM • FM

  29. Key Transportation Assets Railway Infrastructure Rail Rolling Stock Stations & Facilities Technology Support Fleet Maximo is the only solution that can manage all of these assets!

  30. Key Rail Industry Wins in 2008/2009 • Will manage all rolling stock for French National Railway • Key to win: Ability to manage complex asset configurations • Will manage all rolling stock for Dutch service provider • Key to win: Ability to manage complex assets, integration to ERP • Will manage Rail infrastructure in Russia • Key to win: Ability to manage complex asset configurationsand integrate to the SAP ERP • Will manage rolling stock for Australian service provider • Key to win: Deep industry capabilities, manage complex assets • Upgrading to internet architecture to manage all rolling stock sites • Key to win: Deep industry capabilities, ability to integrate to ERP • Will manage support fleet assets for UK rail service company • Key to win: Deep industry capabilities, and multiple asset support

  31. The New approach provides: Vehicle location track & trace Insurance and liability cost controls Intersection of telematics logistics & Supply Chain Management Regulatory compliance Vehicle operations reliability Integration to Maximo for Transportation Overview

  32. Alerts Inventory Maintenance Alerts PM Alerts Warranty Alerts Position Codes Count Books Labor Asset Information Assignment Manager Labor Certification Asset Alias Asset History Equipment Groups Equipment Status Licensing & Insurance Serial # Changes Specifications & Vehicle Data Meters Meter Adjustments Meter Change Out Meter Import Meter History Primary Meter Unlimited Meters Campaigns Campaign Setup Progress Status Reporting & Analysis Drivers Log Industry Reports & KPIs Life Cycle Costing Log Segments & Problems Fuel Management Fuel Record Fuel Tank Monitoring Fuel Transaction Import Industry Codes Warranty Line Codes Support of VMRS/AAR/ATA OEM Warranties Part Warranties Warranty Tracking & Recovery Dispatching & Scheduling Work Management Motor Pool Mechanic Work Order Recent & Repeat Repairs Repair Orders Product Expansion Model – Transportation Maximo for Transportation 6.3 modules Customer Configuration Industry Solutions Maximo

  33. Linear Use Case – Railway & Roads • Value Proposition • Railway maintenance is 20-30% of operating costs of a railroad • 5-15% annual revenue lost due to track occupancy for maintenance • DOTs: $92B / year to maintain state highways • Municipalities: declining funding, aging infrastructure • Challenge • Need to manage as a continuous asset with dynamic segmentation • Mile or chain markers, track #, offset, switch, frog/crossing, signals… • Mile or Km markers, lane, direction, offset, bridges, tunnels, signs • Operations Process • DOT’s, Munic’s, Rail Inspectors walk track weekly, identify conditions • Crews make repairs or perform construction projects • Partners: • Bentley Systems – Optram • Mermec – Ramsys • Pavement - Envista

  34. Energy & Utilities Value Chain CommercialCustomer Retail Customer Extraction Transmission Generation Distribution • Field development • Drilling operations • Crude oil & gas Production • Mining Coal & Uranium • Fossil Generation • Hydro Generation • Nuclear Power • Wind Power • High Voltage • transmission • Substations • Mobile Inspection • Work Management • Operations Management • 300 + utilities worldwide using MAXIMO • Generation (160), transmission (38), distribution (21), • Gas pipeline & distribution (23), water/wastewater (120) • 5 of 10 Global 500 Energy Companies • 7 of 10 Fortune 1000 Energy Companies • 17 of 30 Fortune 1000 Utilities Companies

  35. The European Union is one example of a region developing a comprehensive plan to proactively address its requirements • The Vision for the SmartGrids of the future http://www.smartgrids.eu/documents/vision.pdf has been developed in response for the need to: • Provide a user-centric approach • Provide innovation in the process of electricity networks renewal • Maintain security of supply • Provide accessibility to a liberalized market • Ensure interoperability • Enable distributed generation and utilization of renewable energy sources • Best use of clean central generation • Consider appropriately the impact of environmental limitations • Enable demand side participation • Inform the political and regulatory aspects • Consider the societal aspects Strategic Deployment Document for Europe’s Electricity Networks of the Future

  36. Trends in Distribution Operations Intelligent Utility Networks Traditional Distribution Infrastructure Characteristics • Customer energy management • More accurate billing • Improved power forecasting • Remote shut on/shut off Advanced Meter Meter • Improved outage restoration • New products and services • Improved safety for line-workers • Automated information about equipment status Network Automation and Analytics Standard Grid • Responsive Service • New Construction and planning • Inventory and Procurement integration • Decreased capital cost Emergency & Unplanned Planned Source: IBM Institute for Business Value (IBV) analysis

  37. Practical Benefits for Businesses Around the World In the first year, dramatically improved overall quality of service by reducing system failures 58 percent, IT interruptions 39 percent, and downtime 80 percent using Tivoli Monitoring, Event Management and Configuration and Change Solutions Enables delivery of enterprise-level business continuity services for as little as 3 USD a day. Reduces client recovery times from days to less than an hour. Implemented Tivoli Identity Management Solutions. Projected 50% reduction in the number of administrators assigned to support identity management processes within 18 months. Expected annual cost reduction of $20 Million/year. Enterprise Asset Management and Service Request Manager based solution Increased revenue through accurate charge-back information and helped enhance security efforts and streamline compliance reporting Reduced IT administration costsMonitoring and dynamic allocation of resources to meet service level objectives Tivoli solution providing Business Service Management on top of Tivoli Monitoring and Event Management enables Fast impact and root cause analysis to pinpoint customers and links that need immediate remedial attention The US Food & Drug Administration FDA was drawn to IBM's CCMDB and CDT capability – to optimize IT processes, by leveraging a topological map of discovered infrastructure components to business applications. Enterprise Asset Management Solution projected 25% increase in staff productivity Reduced operational costs. Increase First Call Resolution to 60% at Help desk for increased Customer Sat Saved the company US$250,000 annually through streamlined business processesGained a 33% increase in end-user satisfaction, a key indicator of increased bid accuracy 42

  38. The Company • Tube Lines • Responsible for Jubilee, Northern and Piccadilly lines at London Underground The Challenge • Required an up-to-date solution to proactively maintain 200 miles of track, 255 trains, 100 stations, 2,395 bridges and structures, 71 lifts and 227 escalators The Solution • Maximo for Transportation • Maximo Mobile • Integration to Oracle Financials and HR The Benefits • Improved cost collection and accountability • Fast remote access and greater management of assets • System consolidation to a single asset solution Transportation Case Study – Tube Lines

  39. Smarter asset management Business Challenge Company at glance: 30-year Public Private Partnership contract with London Underground to maintain 200 miles of track, 255 trains, 100 stations, 2,395 bridges and structures, 71 lifts and 227 escalators. Smart Business Benefits: • Reduced asset failure rates • Minimized passenger interruptions • Improved service level agreement compliance • Reduced emergency maintenance • Increased proactive maintenance • Improved information accuracy • Streamlined maintenance processes with mobile technology “Creating a single source of all asset information has provided unprecedented visibility of asset performance …” July, 2008 Deploying a single asset management solution across the enterprise to streamline processes, drive proactive maintenance strategies, maximize performance and reduce passenger interruptions.

  40. The Company • Bombardier • Maintain 48 rail sites worldwide • 6.000 locomotives & passenger cars The Challenge • Provide a packaged maintenance solution • Implement Inventory and Consignment Stock functions • Manage train configuration down to a detailed level The Solution • Maximo Asset and Work Management, • Maximo Inventory and Purchasing Management • Integration to SAP ERP The Benefits • Improved Warranty tracking • Failure reporting available to all Bombardier customers • Reduced inventory by 20% through optimization Transportation Case Study – Bombardier

  41. Tivoli - How does it reduce costs, How much, How fast to implement, 1 customer example 46

  42. Maximo Asset Management Comprehensive enterprise asset lifecycle management Maximo Asset Management provides comprehensive asset lifecycle management for all asset types enabling you to develop comprehensive programs for preventive, predictive, routine and unplanned maintenance. Supports asset, work, service, contract, materials and procurement management. Highlights • Gain insight across all of your assets, their conditions and work processes around them for better planning and control. • Manage all of your asset deployment, specifications, monitoring, calibration, costing and tracking from a single system. • Comprehensive maintenance work management solution for planned and unplanned activities such as preventive, reactive and condition-based maintenance. • Plan inventory to meet maintenance demand precisely, making the right parts available at the right location when needed. • Manage your vendor contracts with comprehensive contract management support for purchase, lease, rental, warranty, rate, master, blanket and user-defined contracts. • Service Provider offering manages multiple customers in a single deployed instance, provides accurate billing and improves service delivery efficiency. “To enable a rapid, cost effective deployment, International Power required an asset and maintenance management product that could meet the business objectives of improved effectiveness and cost control and was supported in all the territories of the world” —Andrew Dickinson IT Director International Power

  43. Case Study: Abu Dhabi Water and Electricity Authority (ADWEA) The Company • Desalination, transmission and distribution of water • Generation, transmission and distribution of electrical power • 250,000 electric customers, 150,000 water customers • 200 Gallons per Day desalination, 3000 MWs generated The Challenge • Modernize the utility through privatization • Diverse Assets • Staff Reductions • Information Technology The Solution • MAXIMO core to new integrated solution for state of the art maintenance and material management system • Integrated with Oracle Financials • Standard for 8 business units with 1600 users The Benefits • $30M savings in materials management and inventory reductions • $2.5M savings from optimizing maintenance • Improved business process and workflow in functional area • Cost reduction goal of 25% enabled with Maximo

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