A Frosty Reception to Improving Asset Hierarchy

Even if you realize the importance of an asset hierarchy, a frosty reception from your organization about improving it may hinder the chances of organization-wide data cleanup. The lack of executive support can be because they need to recognize the benefits for many reasons, so you need to have a solid financial and data analysis prepared to convince them. We have included a list of reasons why you may be receiving a chilly reception to your plan to improve your asset hierarchy – and some counterpoints to convince your organization to change for the better.

Lack of Executive Support

There may be a need for more executive support to improve an asset hierarchy. This is because they may not understand the benefits of upgrading the asset hierarchy as opposed to, let’s say, undergoing an EAM migration. Although an EAM migration can improve your organization’s efficiency, you must fix your data foundation before migrating to receive the full benefits. Read “Benefits of Restructuring Your Asset Hierarchy” and “Fix Your Data Foundation Before an EAM Migration” for more information.

Financial Benefit Unclear 

One reason many people refuse to adopt an improvement to anything is that the financial benefits of the improvement need to be clarified. How can improving your asset hierarchy help with the organization’s overall revenue? The thing that the opposers don’t realize is that an organized asset hierarchy is super important to the overall usefulness of your EAM/CMMS system. The true ROI of your EAM can only be seen through improving your master asset data. Reliable EAM/CMMS asset data will cut the cost of unplanned downtimes while ensuring that your operations are efficient. Check out “Gifting Your Business a Better Data Foundation” for more.

Budget Constraints 

There are many expenses that an asset-intensive company needs to spend to keep the business running and improve the asset hierarchy; a small detail can be lower on the priority list due to budget constraints. However, reorganizing your asset hierarchy can significantly impact operations efficiency, cost-savings on maintenance, and more for such an inexpensive solution. The return on investment in fixing your asset hierarchy will be much more than what you put in, as it will allow you to cut many unnecessary expenses from your operations.

Problem Not Recognized Through the Organization 

If the problem is recognized through the organization, it will be possible to convince the people making the financial decisions to spend money to improve the asset hierarchy. Therefore, you need concrete evidence about the subpar performance of an incomplete asset hierarchy to convince the naysayers that it’s a priority for them to fix. Try looking into the number of unexpected machine failures, the average time to find asset details, the amount spent on reactive maintenance, and other data points along this line of thought. The investigation results can be surprising, providing a good argument for your organization to improve your asset hierarchy as the next data-cleansing project. Read “Impact of Poor Asset Data on CMMS/EAM Effectiveness” for more about this topic.

NRX AssetHub as a solution 

NRX AssetHub is a good solution to address a lot of the chilly reception to improving an asset hierarchy. Adopting our software solution to improve your EAM/CMMS will allow you to

1. Realize the true ROI from your EAM/CMMS solution
2. Generate reports from your EAM/CMMS immediately to analyze what needs to be improved
3. Adopt a Cost-effective solution and see cost reduction immediately

If you wish to learn more about how we can help, download our brochure or book a demo with us to start!