The Three Key Reasons why Companies Implement Remote Asset Monitoring Solutions.

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Companies are actively looking for innovative ways to increase efficiency and improve their competitive position. Increasingly, these companies are turning to technology to deliver the efficiencies that they desire.

Remote asset monitoring solutions are a relatively new addition to the machine-to-machine space. These solutions allow companies to remotely monitor and manage distributed assets while improving customer service levels. The primary reason that companies are turning to remote asset monitoring solutions can generally be linked to a desire to reduce operational expenses. Reducing operational expenses is critical to the success of any business in a highly competitive industry.

Many of the clients that we have the privilege to work with identify the desire to reduce operational expenses and increase efficiency as the key drivers for implementing asset monitoring solutions. Reducing operational expenses is an outcome that can be clearly articulated in assessing whether an investment in a remote asset monitoring solution can deliver a reasonable return on investment. There are also two additional reasons that companies often overlook when they are assessing whether to invest in remote asset monitoring: risk mitigation and increasing revenue.

 

Reducing Operational Expenses

 

Remote and geographically dispersed assets take time, resources, and money to manage and support. This used to require dedicated systems, or more likely, people traveling from one remote location to another to manage and optimize the assets. Neither approach provided the level of real-time information that is required in order to make critical decisions.

Here are some of the ways that our clients are reducing operating expenses:

  • Reduced travel and other operational costs associated with site visits
  • Remotely repair, calibrate and manage devices
  • Improve uptime and performance of assets
  • Increased customer satisfaction

 

Risk Mitigation

 

A company’s assets are often geographically dispersed. Securing and managing those assets can present challenges that utilize vital resources. By implementing a remote asset monitoring solution, companies will know if their equipment is functioning as designed, if there is a problem they will be instantly alerted, thereby improving security, minimizing downtime and mitigating risk.

Here are some of the ways that our clients are reducing risk:

  • Securing access to high value assets
  • Real time monitoring of assets to manage preventative maintenance
  • Implementing alarms to instantly alert the company when an asset is operating outside of established thresholds
  • Real time recording (data and video) when an asset is damaged or operated/managed improperly
  • Monitoring assets to ensure vital components of a company’s operations are not compromised (ex.tank monitoringand inventory management)

 

Increased Revenue

 

In our experience, increased revenue is currently not a primary reason that a company presents when they are looking to implement a remote asset monitoring solution. This can be attributed to a limited understanding of how asset monitoring solutions can be utilized to optimize how an asset can be managed to maximize revenues. With today’s advanced solutions, companies have more power than ever to monitor commodities in real time and adjust pricing or supply accordingly.

Here are some of the ways that a company can utilize a remote asset monitoring solution to enhance revenues:

  • Improve uptime and performance of assets
  • Optimize product inventory and assortment to generate higher revenue
  • Monitor and manage asset deployment to ensure that assets are maximizing revenue
  • Automated reporting from assets in order to minimize business interruption

The decision to implement a remote asset monitoring solution can provide many benefits to a company. It is critical that any company assessing the business case for introducing a remote asset monitoring solution considers how the solution can:

  • Reduce operational expenses
  • Mitigate risk
  • Generate additional revenue or, potentially, introduce a new business model

All three reasons offer important, yet very different benefits. The solution should be designed to deliver the maximum benefit to the company.

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