Maximizing Asset Visibility to Drive Successful Enterprise Transformation Strategies
- Jan 22
- 3 min read
Enterprise transformation often focuses on digital tools, processes, and customer experience. Yet, many organizations overlook a critical element: their physical and digital assets. Ignoring assets in transformation plans creates hidden risks and missed opportunities. This post explores why asset visibility must be part of enterprise transformation from day one, how integrating asset management with finance and operations reduces costs and risks, and the role of systems like Dynamics 365 and Hexagon EAM in this process.
Why Assets Are Often Left Out of Transformation
When companies start digital transformation, they usually focus on customer-facing systems, supply chains, or finance. Assets such as equipment, vehicles, or infrastructure often fall outside the initial scope. This happens because:
Asset data is scattered across departments or outdated systems.
Asset management is seen as a maintenance task, not a strategic priority.
Integration between asset management and core business systems is complex.
This exclusion leads to poor asset visibility. Without clear insight into asset condition, location, and usage, organizations struggle to plan maintenance, control costs, or respond to failures quickly.
The Impact of Poor Asset Integration on Finance and Operations
Assets represent a significant portion of company value. When asset data is disconnected from finance and operations, several problems arise:
Inaccurate financial reporting: Asset depreciation, maintenance costs, and capital expenditures may be misreported.
Inefficient operations: Maintenance teams lack real-time data, leading to reactive repairs and downtime.
Increased risk: Untracked assets can cause safety hazards or regulatory non-compliance.
Higher costs: Over-maintaining or under-utilizing assets wastes resources.
For example, a manufacturing plant that does not link its asset management system with finance might delay recognizing when equipment needs replacement. This delay can cause unexpected breakdowns, production halts, and inflated emergency repair costs.
Connecting ERP and EAM Systems for Full Asset Visibility
Enterprise Resource Planning (ERP) systems like Dynamics 365 Finance and Operations manage financials, procurement, and supply chain. Enterprise Asset Management (EAM) systems such as Hexagon EAM focus on asset lifecycle, maintenance, and performance.
Integrating these two systems creates a unified view of assets, enabling:
Accurate asset valuation: Financial teams get real-time updates on asset status and costs.
Improved maintenance planning: Operations teams schedule preventive maintenance based on asset condition.
Better procurement decisions: Purchasing aligns with asset lifecycle needs.
Regulatory compliance: Automated tracking of inspections and certifications.
For instance, a utility company using Dynamics 365 and Hexagon EAM can track the condition of transformers, schedule maintenance before failures, and automatically update financial records for asset depreciation. This integration reduces downtime and improves budgeting accuracy.
How Asset Visibility Reduces Risk and Costs
Clear asset visibility helps organizations identify risks early and control costs effectively:
Predictive maintenance: Monitoring asset health prevents unexpected breakdowns.
Optimized asset utilization: Knowing asset location and status avoids unnecessary purchases.
Compliance assurance: Tracking inspections and certifications reduces fines.
Data-driven decisions: Real-time asset data supports budgeting and investment planning.
A transportation company that tracks its fleet with Hexagon EAM integrated into Dynamics 365 can reduce fuel costs, extend vehicle life, and avoid penalties from missed inspections. This proactive approach saves money and improves safety.
Building an Asset Strategy from Day One
Waiting to include assets in transformation plans leads to costly retrofits and missed benefits. Companies should:
Define asset goals early: Align asset management with business objectives.
Choose integrated systems: Select ERP and EAM solutions that work together.
Standardize asset data: Create a single source of truth for asset information.
Train teams: Ensure finance, operations, and maintenance collaborate on asset data.
Monitor continuously: Use dashboards and alerts to track asset health and costs.
Starting with a clear asset strategy ensures transformation delivers value across the entire enterprise. It also supports long-term sustainability by extending asset life and reducing waste.
