Maximo Physical Assets in the Smarter World Facing the challenges of Physical Asset Management on a Smarter Planet...

Executive Summary Persistent challenges remain to maximize life cycle performance of complex products and physical infrastructure Companies can no longer afford the status quo, due to intense economic, regulatory, and competitive pressure Organizations are investing in complex products and physical infrastructure that is increasingly instrumented, interconnected, and leveraging ‘operational technology’ Value creation is being limited by cultural, process, and information silos IBM believes there is a new approach to solve these persistent challenges, we call this ‘Smarter Infrastructure’ Enabling process and data integration across the life cycle Managing and securing ‘operational technology’ Turning vast amounts of operational data into insights

80% Uncover new Profit opportunity Build operating dexterity On today’s Smarter Planet, businesses globally are challenged to innovate while managing an unprecedented rate of change …. 80% CEOs anticipate turbulent change and bold moves ahead. * Source: IBM CEO Study Uncover new Profit opportunity Build operating dexterity Reinvent customer relationships 3 3

90% 1Billion 20B+ 2.7ZB Technology will play the key role in success … Speed Value 90% view cloud as critical to their plans 1 Extended Reach 1Billion Smartphones and 1.2 billion mobile employees by 2014 Factors impacting organizations: Responsiveness Technology factors 2. People skills 3. Market factors 4. Macro-economic factors 5. Regulatory concerns 6. Globalization 7. Socio-economic factors 8. Environmental issues 20B+ IBM Global CEO Study Intelligent business assets New Insights 2.7ZB of digital content in 2012, up 50% from 2011 4 4

But organizations must transform IT from cost centers driving on-going operations to strategic centers of business innovation Today’s business infrastructures are becoming inhibitors to business change 5

Reinvent Business Rethink IT Thus, organizations are creating new business-IT partnerships to apply technology in new, innovative ways Reinvent Business Improve operating dexterity Reinvent client relationships Provide new profit opportunity Rethink IT React with Agility Speed innovation Improve economics Lower Costs & Efficiency Transformation & Innovation The Economics of Computing are Changing 6

Extend to Mobile Devices Deploy Smarter Physical Infrastructures IBM is helping organizations embrace bold strategies to Rethink IT, and Reinvent Business services, processes, & relationships… Optimize with Cloud Extend to Mobile Devices Deploy Smarter Physical Infrastructures Protect & Manage Data Speeding service delivery from 45 days to 20 minutes Increasing sales with new promotions from 15% to 75% Recognizing & repairing over 50% of issues before operations impact Reducing the time it takes to backup critical data by 80% 7

The impact is felt across the enterprise Inventory Managers can see how to streamline inventory and resources across the organization Plant Asset Managers can see where to optimize underperforming assets & mitigate compliance risk Finance can see the entire inventory and analyze return on assets for financial reporting Maintenance Managers can see job plans enabled by availability of information to increase asset capacity Service Desk Technicians can see asset data to streamline service request handling and expedite incident & problem resolution Purchasing Managers can see costs and orders enterprise-wide for price comparisons, discounting, standardization and order tracking Facilities Managers can see assets across to optimize power consumption and reduce unplanned outages Risk Managers can see asset detail to ensure regulatory compliance and mitigate risk Contract Managers can see asset related contracts; negotiate vendor T&Cs and monitor supplier performance Engineering can see failure information and maintenance status to implement corrective changes Operations can see asset conditions in sufficient detail to improve asset utilization & performance 8

Success is driven through a holistic approach to delivering and managing services that adapts to changing business priorities… VISIBILITY CONTROL AUTOMATION See and understand your business in real time Transform and adapt while limiting risks Standardize best practices and achieve greater efficiency 9

Business Impact of Asset Management Maximize output Increase availability & reliability Improve planning & scheduling Business Alignment Limited Resources Compliance Framework Maximizing Return on Assets Highest reliability Lowest cost Visibility – asset-based services view Reduce labour costs Able to manage risk Add agility into operations Retain knowledge & enhance operational performance Comply with regulations Reduce Inventory 10

IBM’s Asset Management Solution: Maximo Addresses asset management challenges for line of business operations and IT Consolidates point solutions for Asset and Service Management into one logical suite of applications Manage risk and compliance Includes enhanced Workflow Event Driven Context-based Escalation Manager Provides Service Management capabilities for Asset Owners Asset Managers Service Providers Next generation J2EE Technology Platform Support ITIL processes Service Oriented Architecture (SOA) ASSET WORK Management PROCUREMENT SERVICE MATERIALS CONTRACT Management MAXIMO ASSET MANAGEMENT 11

Easy Customer Configuration Capabilities Database CECOM AMCOM Site 1 Corpus Christie Site 4 Tobyhanna TACOM Red River Site Role-based User Interface Multi/Site – Multi/Org Data Segmentation Business Process Configuration Packaged ERP Integration 12 12

IBM Maximo Asset Management; a deeper look Work Management Materials Management Purchasing Contract Management Service Management Locations Repair Facilities Asset Asset Templates Failure Codes Linear Assets Visual Control Condition Monitoring Meters Meter Groups Request for Quotation Receiving Receiving Inspections Shipment Receiving Purchase Requisitions Invoices Invoice Reversals Purchase Orders Revisioning Receipt Tolerance Desktop Requisitions Item Master Storerooms Inventory Inventory Usage LIFO/FIFO Costing Consignment Transfer via Shipment Default Costing Condition Codes Stocked Tools Service Items Job Plans Routes Service Requests Work Order Tracking Assignment Tab Hard/Soft Reservations Safety Quick Reporting Labor/Crafts Tools Preventive Maintenance PM Forecasting Master PM Purchase Contracts Master Contracts Warranty Contracts Lease/Rental Contracts Labor Rate Contracts Premium Pay Rates Payment Schedules Service Groups SLA Management Change Management Incidents Problems Changes Releases Solutions Manage Physical Assets – Core EAM Business Processes Workflow – Event Driven, Escalation Manager Performance Management – EAM KPI’s Advanced Analytics Service Oriented Architecture Platform 13

Example – Register Assets 10/10/08 02:22 PM Example – Register Assets Asset Management Work Management Materials Management Purchasing Contract Management Service Management Locations Repair Facilities Asset Asset Templates Failure Codes Linear Assets Visual Control Condition Monitoring Meters Meter Groups Request for Quotation Receiving Receiving Inspections Shipment Receiving Purchase Requisitions Invoices Invoice Reversals Purchase Orders Revisioning Receipt Tolerance Desktop Requisitions Item Master Storerooms Inventory Inventory Usage LIFO/FIFO Costing Consignment Transfer via Shipment Default Costing Condition Codes Stocked Tools Service Items Job Plans Routes Service Requests Work Order Tracking Assignment Tab Hard/Soft Reservations Safety Quick Reporting Labor/Crafts Tools Preventive Maintenance PM Forecasting Master PM Assignment Manager Purchase Contracts Master Contracts Warranty Contracts Lease/Rental Contracts Labor Rate Contracts Premium Pay Rates Payment Schedules Service Groups SLA Management Change Management Incidents Problems Changes Releases Solutions Manage Physical Assets – Core EAM Business Processes Workflow – Event Driven, Escalation Manager Performance Management – EAM KPI’s Advanced Analytics Service Oriented Architecture Platform 14 File Name Here.ppt 14

Powerful Integration Framework 10/10/08 02:22 PM Maximo Integration Platform Powerful Integration Framework Native, message based XML integration Compatible with current industry standards (OAG, WSI) Designed to fit centralized EAI strategy Exposed as Web Services “Loosely Coupled“ - supports Platform evolution communication protocols, & business process changes Out-of-the-box “productized” integration ERP- Oracle & SAP E-Commerce – OCS 15 File Name Here.ppt 15

Automated Condition Based Maintenance Asset performance management is much more than just an EAM application Sensing Metering Real-time monitoring of data Detection of issues within the Plant Predictive models Anticipate and circumvent outages Automate and optimize processes and improved decision support Real Time Data Integration Real Time + Historical Data Feedback, possible procedure or plan updates Work results, Actions and Outcome reviews Incentives and actions to change behavior Feedback to user and data source; Data Modeling + Analytics Visualization + Decisions Work Execution 16 16 16

Leveraging investment in Operational Systems 10/10/08 02:22 PM Leveraging investment in Operational Systems SCADA Operational statistics Power usage Load Management DCS Remote Assets Intelligent Componentry Real Time Operations & Events OsiSoft Event Capture Systems PLC Systems Integration to other Business Applications Financial Spatial Document Management Maximo 17 File Name Here.ppt 17

Smart Assets Enable Innovation Control Automation Visibility Improve service quality to achieve high customer retention See what you have, where it is, who is using it and what it costs Contextual role based views with KPIs Optimize business decisions with accurate and timely information Maximize return on assets & reduce risk Control and reduce TCO of asset infrastructure throughout the lifecycle Mitigate regulatory environmental and safety compliance risk Increase efficiency of workforce while capturing knowledge Streamline processes & accelerate growth Reduce asset related service outages with proactive practices Automate workflows to enhance operational efficiencies Help IT and Operations work together to support IT-enabled assets. 18 18

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