The Smart Software Symposium: Asset Management

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

Agenda The CHALLANGE – how do we remain competitive with constant change The OPPORTUNITY - Intelligent Assets support a Dynamic Infrastructure The SOLUTIONS – Industry deep solutions, Agile platform, Industry Standard integrations, Process consolidation and Data standards Some PROOF points - MAXIMO in use across various industries

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 4

The Challenge - Customer pain points
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 ROI, ROA & Value for Customers Risk, Compliance Management • Regulatory compliance • Operational control Operational Excellence • Productivity & Energy Efficiency • Reliability 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 5

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 6

It’s not just about the asset …
it’s about what the asset does… Speaker notes: Objective: This slide is intended to talk to the transformation from an internal asset-centric organization into an external service-centric organization. The maintenance organization needs to consider the fact that they are maintaining a pump, but that the pump is part of the cooling system of the utility which makes sure the utility can produce electricity. And that electricity is delivered to the customer in the home as a service. Now, a lot of maintenance organizations have implemented business processes that support part of this process. Typically this is done in the form of asset criticality. And when an incident is reported on a pump, the planner can see that the pump is part of the cooling system and as a result, the work order gets a high priority associated with it. This process is dependent on the people and the knowledge of the people operating the systems. As our workforce is aging, there is a need to capture more knowledge as part of our systems instead of having it only in the heads of our most experienced engineers. So instead of starting at the level of the asset and its criticality, it makes sense to start capturing the service provided to the customer in the system. Because that makes it more transparent to manage the performance of the service using service levels. The performance in our example is agreed at the level of the availability of the cooling system. Instead of measuring the SLA outside the maintenance system, let’s extend it to cover the entire end-to-end process. ..and services delivered to the customer.

Performance Services Applied
ABB APM Performance Services Applied “Power by the Hour” 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 “MRI By the Image” Proven business models re-defined industry definition of “performance”.

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

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 required to develop an business case for major IT investments Final purchasing decisions are sliding back to the CFO… We need to solidify a buying decision by strengthen client’s business case Asset Management models now part of IBM Business Value Assessment approach Link to W3 site… Business Scenarios ROI Points Customer Example: Transportation Industry Labor Utilization Up 10-20% A major railroad saved Euro 5M by better tracking labor to specific work Asset Utilization Up 3-5% A large OEM reduced overhaul process time from 56 days to 21 days Equipment purchases Down 3-5% A fleet management company saved Euro 9.5M by meeting 100% availability with less Warranty recoveries Up 10-50% A consumer products company with a medium size fleet increased warranty recovery 50% Inventory needs Down 20-30% A large passenger railroad was able to identify Euro18M in excess or obsolete inventory Inventory carrying costs Down 5-20% A railroad reduced saved US $1.8M impacting financing, insurance, handling, overhead, etc. Material Costs Reduced 10-50% A rail maintenance service company reduced costs 20% by optimizing material purchases Purchasing labor A fleet management company reduced purchasing staff by 20% 10

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!

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 There is a rapid rise of machine to machine (M2M) and remote monitoring of assets and equipment. This is across the board and includes wired and wireless connections. This creates opportunities and challenges. GLOBAL M2M MARKET WILL REACH $250 BILLION IN SOURCE: THE FOCALPOINT GROUP

The Changing Landscape: Embedded IT Components
Fieldbus and IEC (UCA) technologies for instrumentation and control need self-discovery and software-configurability tools. The typical plant has thousands of devices with some degree of embedded intelligence used for real-time performance monitoring. Virtually every mobile asset today 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 with Bluetooth to microprocessor based engine controls — even mobile equipment is now IT-dependant. Key Issue: What technologies support remote monitoring and analysis? It seems everything now has embedded intelligence. Whether it is the computer that controls our automobile or the radio frequency identification (RFID) tags that can locate a piece of equipment anywhere in the factory, IT-enabled business assets are a fact of life in business today. The challenge that manufacturers face is that no tools available can help them manage the constantly expanding universe of IT-enabled assets. Original equipment manufacturers (OEMs) provide proprietary technology and classic IT asset management (ITAM) vendors have focused on supporting the assets that the CIO owns and operates, not the business-owned assets. These ITAM solutions lack the functionality associated with the traditional maintenance activities vital to the core functionality of the asset. Despite attempts to add functionality to EAM applications — such as MRO Software's (now IBM Maximo) acquisition of MainControl — the EAM vendors have not been able to displace core ITAM applications. The benefits in having a single integrated solution seems obvious, so why haven't vendors been able to cross over into each others space? For the EAM vendor, it is mostly credibility and the ability to deploy critical IT functionality. For the ITAM vendor, it is a large functional gap coupled with no plant experience. For the OEM providers, there is no economic incentive to cede revenue to the other players. So what is a manufacturer to do?

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.

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” “Dumb iron” – pumps, trucks, etc – once very simple, now much more complex, rate of complexity is accelerating. E.g. sensor s in bridges. On-board diagnostics in trucks, beaming performance metrics to satellites (vehicle health management). Hardware, disk drives, memory, all part of the greater complexity in the world of asset convergence – Convergence can mean two things: IT and physical assets uner the same management platform IT management absorbing non-traditional IT devices (e.g. embedded IT on the shop floor, in a vehicle, etc) Dynamics within orgs – facilities and IT coming together, IT scope expanding Benefit of convergence – run business more effectively – you need management as sophisticated as the devices themselves Service: Not just focus on the asset, focus on the service delivered by the assets – e.g. applying principles of ITIL to operating assets, like a pump in a refinery – how handle from an incident versus problem management perspective? Fix it? Replace it? Failover? Cost: Looking at assets in a new way, business dependence on assets, value they provide to the business – likely to change business processes – e.g. don’t fix the pump for 12 hours when you can replace it in 3 hours – keep the operation of the business going Manage assets according to the needs and priorities of the busienss Pure cost – extend asset lifecycles – requires more maintenance, asset mgmt business processes; efficient use of labor, optimal inventory (e.g. spare parts) Risks: Environmental health and safety, financial visibility, Sarbanes-Oxley – risk to the business, fines and penalties, environmental impacts Speed Manage complexity, don’t be a victim of complexity – active RFID, meshed networks, “smart dust” (nanotechnology) that you could literally sprinkle around a checmical plant that would detect escaping gases

2017年4月19日星期三7时55分19秒 The Service Management from IBM Delivering quality service and enabling business innovation The knowledge and capability to deliver a specified business outcome when it needs to occur, within the time and cost parameters you promised it would. 17 File Name Here.ppt 17

Swiss Rail Outage – June 22nd 2005
2017年4月19日星期三7时55分19秒 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 File Name Here.ppt 18

Convergence through Consolidation
Application Consolidation Manage all assets in one IBM system for greater efficiency and return on investment Unified IBM solution to manage all critical assets across the enterprise Convergence through Consolidation 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. IT Facilities IT Transportation Production There are many flavors of Asset Convergence. One has to do with Application Consolidation where IT, Finance, and Operations are looking to reduce cost and streamline operations by reducing the number of applications that are being used. ORGANIZATIONS ARE LOOKING TO GET RID OFF DISPARATE ASSET MANAGEMENT SYSTEMS AND ARE LOOKING TO CONSOLIDATE THESE INTO ONE SYSTEM. FURTHER, WITH THE RISE OF BEST PRACTICE FRAMEWORKS SUCH AS IT INFRASTRUCTURE LIBRARY (ITIL), WE ARE SEEING ASSET INTENSIVE COMPANIES ADOPT IT AS A ‘DE-FACTO’ STANDARD FOR SERVICE MANAGEMENT. The end result is a unified end-to-end service management that delivers IT services linked to business imperatives. IBM ASSET & FINANCIAL MANAGEMENT SOLUTIONS SUPPORT 7 ITIL PROCESSES OUT OF THE BOX: INCIDENT, PROBLEM, CHANGE, RELEASE, SLA, CONFIGURATION AND AVAILABILITY. IBM’ offers several advantages around asset convergence. Customers can now effectively use One application suite from one vendor to manage all the critical assets across the enterprise This offers: Lower initial software and implementation costs, lower lifetime ownership costs Lower IT administration costs Lower hardware and software infrastructure costs Lower end user training costs Lower operational risk Higher regulatory compliance such as better support of Sarbanes-Oxley related initiatives. Business process similarities between EAM and IT Service Management (ITIL)

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 Speaker notes: The Maximo product consists of the following modules: - Asset Management - Work Management - Inventory Management - Procurement Management - Contract Management - Service Management Built on a Maximo foundation that provides base capabilities such as: - Startcenters (role-based portal) - Workflow - Escalations - Security - Integration - Etc.

Maximo Asset Management manage all assets, their conditions and work processes
Industry Solutions (optional) Asset Management Work Management Materials Management Purchasing Contract Management Service Management Service Provider (optional) Locations Asset Failure Codes Condition Monitoring Meters Meter Groups 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 Item Master Storerooms Inventory Lot Management Kitting Issues & Transfers Condition Codes Stocked Tools Service Items 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 Customer Customer Agreements Customer Management Customer Billing Bill Review Sales Order Response Plans Service Address Price Schedule As discussed earlier Maximo Asset Management manages the lifecycle of traditional, enterprise assets and their associated financials. The basic philosophy of Maximo’s Asset Management is to have a single services oriented platform to manage all critical assets the organization is looking to govern, Maximo offers a solution to manage the entire lifecycle of the asset – cradle to grave. The KEY MODULES OF MAXIMO include a common repository for all assets (Asset Management), a module to manage work activities (Work Management), a module to manage spare parts & inventory (Materials Management), a module to procure parts (Purchasing), a module to track warranties (Contract Management), and a Service management module which places the activities of the organization in alignment with the business. Maximo has an integration adapter called the Maximo Enterprise Adapter that supports Web Services Integration with a variety of other applications. A very important group of adapters are the ERP adapters to SAP and Oracle which are productized and tested by the QA department. The Maximo Enterprise Adapter technology can also be used to create interfaces to other applications such as GIS, SCADA, and other pervasive devices such as RFID, Sensors, and Mesh Networks. Maximo supports ITIL processes such as incident, problem, change and release. Service Level Management and Service Catalog capabilities allow for the formalization of services offered to the business and their expected performance levels. In order to govern and ensure the compliance with SLA’s and to streamline work activities, Maximo is built on a business process engine that separates the processes from the application. It also includes a visual process designer that enables the power user to model new processes. Maximo applications all have a common user interface that is based on XML. The internationalization capabilities are strong and support double byte characters. Besides translations of the screens, Maximo also supports translation of descriptions. Maximo can be accessed over the internet as it uses a http protocol for its UI. Maximo comes with a strong reporting engine that enables the customization of all reports and the creation of new reports to support the end user community. Configuration – UI, Database Fields, and Applications Enhanced Workflow – Event Driven, Context-based / Escalation Manager Maximo Enterprise Adapter KPIs / Reporting / Analysis Security & Administration

Architecture Matters Built from the ground up in a true Web Architecture Evolution of technology since 1997; stable on platform 2015+ Non-proprietary standards 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

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… Users of competitive service desk solutions commonly struggle with customizing the application and the lack of ease-of-use in making changes. Any changes to user interface, workflow, communications templates, reports require development coding work. Often developers are required on-site to do this custom coding. Many service desk solutions are based on older, proprietary technology, making these products difficult, time-consuming and expensive to support, maintain, configure and upgrade. The Tivoli Service Desk has flexible configuration tools for database configuration and applications design enable users to easily and quickly configure the UI, dashboards, KPIs, reports and more on the fly. No development custom coding is required to make changes. This screenshot shows the built in Application Designer tool. It allows you to make changes to UI on the fly with drag-and-drop actions. You can add new fields to an application, or create a new application using the Database Configuration tool.

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 A key business challenge is the inability to measure performance of your business services, and how you are supporting these, what the service desk performance metrics are and how SLAs are being met. IBM Tivoli Service Desk provides visibility into the performance metrics and SLAs through configurable role-based start center portlets, real time KPI dashboards, seamless integration of ITIL based processes, and configurable graphical representation.

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 SMS, Altiris, Radia, Tivoli…

ERP Support in Maximo

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 To assist industries and companies in their transformation activities, IBM has architected a series of frameworks or software platforms based on business specific processes and usage patterns. These frameworks include industry-specific extensions grounded in business & technology standards, are based on open, service oriented architectures, and leverage an ecosystem of partners providing both software and services assets. The frameworks create the underpinnings of industry solutions that help drive alignment with business processes…..thus speeding time to deployment, and lowering project risk and cost. <on click> PDIF, or product development integration framework…is a framework supporting the area of product development in primarily the Aerospace, Automotive, and Electronics industries. PDIF is designed to help companies improve collaboration across the extended design and value chain, increase business flexibility, and identify opportunities for creating innovation. MIF, or manufacturing integration framework….is a framework appropriate for the Aerospace and Automotive industries. MIF is tasked with helping clients increase flexibility and agility within their manufacturing operations, by integrating processes between the plant floor and enterprise systems. Lastly, IIF, or integrated information framework….is a framework supporting the Chemicals and Petroleum and Industrial Products industries. IIF is aimed at helping clients increase the productivity of expensive and sometimes difficult to manage assets, including oil platforms and refineries, while reducing costs throughout the value chain. At it’s core IIF is a set of integrated tools and technologies that allows for efficient remote monitoring and management of various devices and processes. Business Integration Business Optimization IT Operations IIF Integrated Information Framework SOA Foundation

Differentiators.. ERP vrs EAM
Maximo is the market-leading, best in class solution for Asset Management. Most MAXIMO customers have implement 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 29

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

Working in Partnership with Clients
Group Type Advisory Council Special Interest User Groups Development Partners 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

Maximo Industry Solutions
Life Sciences Pharmaceuticals Utilities Nuclear Power Generation Oil & Gas Transportation / Fleet Government ITSM FM Speaker notes: Objective: Point out that one of the Industry Solutions are one of the key differentiators for Maximo. Attention: Only use this slide if the customer is in one of the industries listed here. Otherwise, use the industry overview slides in the back to give a broad overview of the industries that Maximo is used in. General grouping of industries: - Energy & Utilities - Manufacturing - Government - Transportation & Travel - Other Maximo is used extensively in each of these industries and we have references in each of these industries.

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!

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 configurations and 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

Overview 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

Product Expansion Model – Transportation
Maximo for Transportation 6.3 modules Alerts Maintenance Alerts PM Alerts Warranty Alerts Inventory Position Codes Count Books Customer Configuration Industry Solutions Labor Assignment Manager Labor Certification Asset Information Asset Alias Asset History Equipment Groups Equipment Status Licensing & Insurance Serial # Changes Specifications & Vehicle Data Maximo 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 Present the Product Expansion concept of Maximo. The “core” is Maximo. (click) The next layer is Industry Solutions – for Transportation, Nuclear, Utilities Transmission and Distribution, Oil & Gas, Pharmaceuticals, etc. (click) The outside layer is the customer’s configuration using Maximo’s configuration tools. (click) Maximo Asset Management Transportation adds a significant number of Transportation specific features to Maximo. These are layered on top of Maximo and address specific requirements unique to transportation customers. (click) Additionally, we use Partner solutions to provide specific capabilities for Linear Assets and Planning & Scheduling. There are standard interfaces to Primavera and MS Project, and interfaces are being developed for Optram and Barchan. Warranty OEM Warranties Part Warranties Warranty Tracking & Recovery Line Codes Support of VMRS/AAR/ATA Industry Codes Work Management Mechanic Work Order Recent & Repeat Repairs Repair Orders Dispatching & Scheduling Motor Pool

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

Energy & Utilities Value Chain
Commercial Customer Retail Customer Extraction Generation Transmission 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

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 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

Trends in Distribution Operations
Traditional Distribution Infrastructure Intelligent Utility Networks 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 Improve the quality of customer care. Re-engineer customer service operations for better control and lower cost per customer. Provide differentiated service to customers through multiple contact channels. Leverage the newest customer care technologies. Get the most out of existing legacy systems. Responsive Service New Construction and planning Inventory and Procurement integration Decreased capital cost Emergency & Unplanned Planned Source: IBM Institute for Business Value (IBV) analysis

Practical Benefits for Businesses Around the World
2017年4月19日星期三7时55分19秒 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 costs Monitoring 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 processes Gained a 33% increase in end-user satisfaction, a key indicator of increased bid accuracy 42 File Name Here.ppt 42

Transportation Case Study – Tube Lines
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 following is information taken from Tube Lines case study) Tube Lines takes stock of its assets with IBM Maximo asset management ■ The Challenge Reversing the effects of decades of under-investment in the London Underground. Responsible for over 200 miles of track, 255 trains, 100 stations, 2,395 bridges and structures, 71 lifts and 227 escalators, Tube Lines requires up-to-date asset information in order to understand the trends in asset performance that will drive proactive maintenance strategies to maximize performance and minimize passenger interruptions. ■ The Solution IBM Maximo Asset Management. ■ Key benefits Consistent approach to maintenance management across 15 classes; real time access to up-to-date asset information for engineers and contractors enabling efficient job scheduling; reduced duplication and improved information accuracy resulting in more effective proactive maintenance strategies. Transport Investment On 31 December 2002, Tube Lines assumed responsibility for the maintenance and upgrade of the entire infrastructure on the Jubilee, Northern and Piccadilly lines as part of the largest improvement program the Tube has ever seen. Tube Lines has a 30 year Public Private Partnership (PPP) contract with London Underground. The contract is output based, meaning Tube Lines is rewarded for good performance and penalized for poor performance. Reversing the effects of decades of under-investment in the Tube is a huge task requiring an injection of resources on the scale of which the Underground has never seen before. Tube Lines is involved in a massive improvement program, tripling investment and committing over £4.4 billion to improve the Jubilee, Northern and Piccadilly lines in the first 7½ years – the equivalent of spending almost £1.6 million per day. Tube Lines is responsible for over 200 miles of track, 255 trains, 100 stations, 2,395 bridges and structures, 71 lifts and 227 escalators and is constantly striving to implement new, more efficient and effective ways of improving the Underground. Martyn Capes, Asset Systems Technical Manager, Tube Lines, says, “Passenger safety is the primary objective on the railway. However, after years of under investment Tube Lines needs to ensure that the planned capital investment is used as effectively as possible. Excellent asset management is essential both to minimize passenger disruption and to drive out inefficient, costly processes that have become endemic across the underground network.” Asset Management Underpinning the new strategy has been a complete overhaul of the IT infrastructure. When Tube Lines took over in 2003, information on assets was distributed across almost 500 disparate systems and 1500 Excel spreadsheets. As Capes explains, “Without excellent, up to date asset information, Tube Lines could not attain any understanding of trends in asset performance to drive the proactive maintenance strategies required to maximize performance and minimize passenger interruptions.” The company set up its £30 million X.Calibre project, which encompassed new connectivity and desktop hardware as well as Enterprise Resource Planning (ERP) and Enterprise Asset Management (EAM) applications. Having undertaken a comprehensive market evaluation, the company opted for the IBM Maximo asset management solution to manage its assets. “IBM Maximo is a best of breed application that was selected for its depth of functionality, its unique web architecture and its ease of integration. Critically it has open application programming interfaces (APIs) and interfaces with Oracle applications for its ERP solution, Documentum for document management and Primavera for project planning, enabling Tube Lines to create a comprehensive, asset based information resource,” Capes confirms. Using IBM Maximo, the company now records detailed information on its asset, including a complete history, Asset Condition Inspection (ACI) and Asset Condition Assessment (ACA). The company also records when an asset was last maintained, what work was carried out, and by which engineers or maintainers. The company has 15 different asset groups, including fleet, tracks, signals and premises, some of which are maintained by Tube Lines, others by contractors including Otis, Marconi and Alstom. Asset information can be searched in multiple ways – by class, route, station, or simply using its unique section code. “Creating a single source of all asset information has provided unprecedented visibility of asset performance across the three lines managed by Tube Lines,” he says. Tube Lines has also leveraged a close collaboration between the IBM Maximo team and Syclo, who jointly developed the off-the-shelf IBM Maximo Mobile Suite. Specifically, Tube Lines utilized the IBM Maximo Mobile Work Manager solution to provide mobile access to asset information for 1,000 staff and is currently developing a Geographical Information System with GPS to achieve pinpoint accuracy of asset location. Efficiency Transformation Tube Lines is now better able to monitor the condition of each asset to make more informed decisions for maintenance and renewals. Integrating asset maintenance activity and equipment history in IBM Maximo with financial and planning systems is helping the company meet its financial targets, plan for long-range capital investments and improve the rail infrastructure. For example, asset refurbishment is now carried out on the basis of performance rather than age. Capes explains, “Tube Lines now has a league table of best and worst performing assets every month. Using this to prioritise refurbishment based on performance has reduced both the cost of repairs and the costs associated with penalties for missing the service levels agreed with London Underground.” Linking this information into procurement also enables Tube Lines to monitor the performance of goods supplied, highlighting issues with specific asset types. For example, the company has recently undertaken a wholesale replacement of door seals after IBM Maximo identified persistent problems. “Prior to implementing a single asset management system the company simply would not have had visibility of this issue. By replacing the seals Tube Lines has significantly reduced the maintenance problem,” he confirms. Proactive Strategy Detailed analysis of the worst performing assets also considers the need for a change to the maintenance schedule – for example if the asset persistently fails on the same day. With some 60% of assets actually above the ground, and affected by the weather, the company has a constantly evolving set of asset management challenges. As Capes says, “It is essential to minimize the impact of maintenance on passengers. Using the IBM Maximo Train Movements module, for example, the timetable is embedded in the system to ensure train maintenance is scheduled effectively and efficiently. The use of IBM Maximo mobile technology is also supporting a far more efficient, effective maintenance strategy. Utilizing a range for devices from PDAs to tough books, Tube Lines has significantly streamlined maintenance processes. Each engineer receives a work order online and can then sign off the job online once complete. Information is recorded once, transforming accuracy, and consistent data definitions reduce incidents of duplication or confusion. Furthermore, adding GPS to the mobile system will enable engineers to locate assets to within one metre, which has significantly reduced the duplicated reports of asset faults. Tube Lines is currently implementing IBM Maximo asset management in its fault reporting centre, emergency response, transport and Health & Safety business. This is enabling a shift from telephone based to based fault reporting direct into the system, further reducing the administrative overhead. Using workflow and escalation processes the company can ensure that faults are resolved within the set Service Level Agreement. Financial Return The implementation of IBM Maximo has transformed Tube Lines’ effectiveness. Emergency maintenance has been reduced with a concomitant increase in proactive maintenance. As a result, asset failure rates are down enabling Tube Lines to achieve compliance to its service level agreements with London Underground. Streamlined processes have enabled Tube Lines to reduce its previous reliance on contract staff to carry out administrative roles. “In the past, it would take several people days to locate asset information,” he says. “Now that information is available within seconds. The resultant reduction in contract staff has delivered annual cost savings.” The Benefits Improved cost collection and accountability Fast remote access and greater management of assets System consolidation to a single asset solution

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. Deploying a single asset management solution across the enterprise to streamline processes, drive proactive maintenance strategies, maximize performance and reduce passenger interruptions. 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 (The following is information taken from Tube Lines case study, available on the ibm.com website) Tube Lines takes stock of its assets with IBM Maximo asset management The Challenge [Reversing the effects of decades of under-investment in the London Underground.] Responsible for over 200 miles of track, 255 trains, 100 stations, 2,395 bridges and structures, 71 lifts and 227 escalators, Tube Lines requires up-to-date asset information in order to understand the trends in asset performance that will drive proactive maintenance strategies to maximize performance and minimize passenger interruptions. Key benefits Consistent approach to maintenance management across 15 classes; real time access to up-to-date asset information for engineers and contractors enabling efficient job scheduling; reduced duplication and improved information accuracy resulting in more effective proactive maintenance strategies. Transport Investment On 31 December 2002, Tube Lines assumed responsibility for the maintenance and upgrade of the entire infrastructure on the Jubilee, Northern and Piccadilly lines as part of the largest improvement program the Tube has ever seen. Tube Lines has a 30 year Public Private Partnership (PPP) contract with London Underground. The contract is output based, meaning Tube Lines is rewarded for good performance and penalized for poor performance. Reversing the effects of decades of under-investment in the Tube is a huge task requiring an injection of resources on the scale of which the Underground has never seen before. Tube Lines is involved in a massive improvement program, tripling investment and committing over £4.4 billion to improve the Jubilee, Northern and Piccadilly lines in the first 7½ years – the equivalent of spending almost £1.6 million per day. Tube Lines is responsible for over 200 miles of track, 255 trains, 100 stations, 2,395 bridges and structures, 71 lifts and 227 escalators and is constantly striving to implement new, more efficient and effective ways of improving the Underground. Martyn Capes, Asset Systems Technical Manager, Tube Lines, says, “Passenger safety is the primary objective on the railway. However, after years of under investment Tube Lines needs to ensure that the planned capital investment is used as effectively as possible. Excellent asset management is essential both to minimize passenger disruption and to drive out inefficient, costly processes that have become endemic across the underground network.” Asset Management Underpinning the new strategy has been a complete overhaul of the IT infrastructure. When Tube Lines took over in 2003, information on assets was distributed across almost 500 disparate systems and 1500 Excel spreadsheets. As Capes explains, “Without excellent, up to date asset information, Tube Lines could not attain any understanding of trends in asset performance to drive the proactive maintenance strategies required to maximize performance and minimize passenger interruptions.” The company set up its £30 million X.Calibre project, which encompassed new connectivity and desktop hardware as well as Enterprise Resource Planning (ERP) and Enterprise Asset Management (EAM) applications. Having undertaken a comprehensive market evaluation, the company opted for the IBM Maximo asset management solution to manage its assets. “IBM Maximo is a best of breed application that was selected for its depth of functionality, its unique web architecture and its ease of integration. Critically it has open application programming interfaces (APIs) and interfaces with Oracle applications for its ERP solution, Documentum for document management and Primavera for project planning, enabling Tube Lines to create a comprehensive, asset based information resource,” Capes confirms. Using IBM Maximo, the company now records detailed information on its asset, including a complete history, Asset Condition Inspection (ACI) and Asset Condition Assessment (ACA). The company also records when an asset was last maintained, what work was carried out, and by which engineers or maintainers. The company has 15 different asset groups, including fleet, tracks, signals and premises, some of which are maintained by Tube Lines, others by contractors including Otis, Marconi and Alstom. Asset information can be searched in multiple ways – by class, route, station, or simply using its unique section code. “Creating a single source of all asset information has provided unprecedented visibility of asset performance across the three lines managed by Tube Lines,” he says. Tube Lines has also leveraged a close collaboration between the IBM Maximo team and Syclo, who jointly developed the off-the-shelf IBM Maximo Mobile Suite. Specifically, Tube Lines utilized the IBM Maximo Mobile Work Manager solution to provide mobile access to asset information for 1,000 staff and is currently developing a Geographical Information System with GPS to achieve pinpoint accuracy of asset location. Efficiency Transformation Tube Lines is now better able to monitor the condition of each asset to make more informed decisions for maintenance and renewals. Integrating asset maintenance activity and equipment history in IBM Maximo with financial and planning systems is helping the company meet its financial targets, plan for long-range capital investments and improve the rail infrastructure. For example, asset refurbishment is now carried out on the basis of performance rather than age. Capes explains, “Tube Lines now has a league table of best and worst performing assets every month. Using this to prioritise refurbishment based on performance has reduced both the cost of repairs and the costs associated with penalties for missing the service levels agreed with London Underground.” Linking this information into procurement also enables Tube Lines to monitor the performance of goods supplied, highlighting issues with specific asset types. For example, the company has recently undertaken a wholesale replacement of door seals after IBM Maximo identified persistent problems. “Prior to implementing a single asset management system the company simply would not have had visibility of this issue. By replacing the seals Tube Lines has significantly reduced the maintenance problem,” he confirms. Proactive Strategy Detailed analysis of the worst performing assets also considers the need for a change to the maintenance schedule – for example if the asset persistently fails on the same day. With some 60% of assets actually above the ground, and affected by the weather, the company has a constantly evolving set of asset management challenges. As Capes says, “It is essential to minimize the impact of maintenance on passengers. Using the IBM Maximo Train Movements module, for example, the timetable is embedded in the system to ensure train maintenance is scheduled effectively and efficiently. The use of IBM Maximo mobile technology is also supporting a far more efficient, effective maintenance strategy. Utilizing a range for devices from PDAs to tough books, Tube Lines has significantly streamlined maintenance processes. Each engineer receives a work order online and can then sign off the job online once complete. Information is recorded once, transforming accuracy, and consistent data definitions reduce incidents of duplication or confusion. Furthermore, adding GPS to the mobile system will enable engineers to locate assets to within one metre, which has significantly reduced the duplicated reports of asset faults. Tube Lines is currently implementing IBM Maximo asset management in its fault reporting centre, emergency response, transport and Health & Safety business. This is enabling a shift from telephone based to based fault reporting direct into the system, further reducing the administrative overhead. Using workflow and escalation processes the company can ensure that faults are resolved within the set Service Level Agreement. Financial Return The implementation of IBM Maximo has transformed Tube Lines’ effectiveness. Emergency maintenance has been reduced with a concomitant increase in proactive maintenance. As a result, asset failure rates are down enabling Tube Lines to achieve compliance to its service level agreements with London Underground. Streamlined processes have enabled Tube Lines to reduce its previous reliance on contract staff to carry out administrative roles. “In the past, it would take several people days to locate asset information,” he says. “Now that information is available within seconds. The resultant reduction in contract staff has delivered annual cost savings.” “Creating a single source of all asset information has provided unprecedented visibility of asset performance …” July, 2008

Transportation Case Study – Bombardier
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 (Information provided by MRO Software Professional Services and interviews with Bombardier Transportation in Canada) Bombardier Transportation Environment/Application Used by Services Division to provide outsourced maintenance services on rail rolling stock at sites such as Go-Transit, Tri-Rail, South New Jersey light rail, San Diego Trolley, Las Vegas Monorail Also used by Customer Services Division who are responsible for Maintaining Delivered Train Systems Used to support after market part business Currently manage over 6,000 locomotive and passenger car assets with 2,000 users Project Metrics Client Led Implementation Model, MRO Software Providing “Support” As Needed Implementation Goals and Objectives Provide a Packaged Maintenance Solution with Bombardier Train Systems or as an aftermarket service for rail maintenance and operations Implement Inventory and Consignment Stock Functions Implement Work Order and PM Functions To manage train configuration down to a detailed level Accomplishments Maximo Inventory and Consignment Stock up and running at multiple sites Inventory Optimization project, with Maximo partner Xtivity, reduced inventory by 20% at the three sites it has been added to Maximo Work Order and PM Implemented Warranty Tracking Functionality Implemented Equipment Failure Tracking Implemented. Failure Information is Provided To All Bombardier Customers Who Have Similar Types Of Equipment Maximo has been adopted as long term strategic EAM solution for Bombardier Recently purchased Maximo Mobile Also use Maximo to manage customer configuration of delivered rail assets, and for managing their aftermarket parts business Integrated to SAP ERP Have implemented Maximo 6 at two sites, Go-Transit and Tri-Rail, and will have a third site live in July 07 in San Diego Future Maximo To Be Part Of Train Systems Marketed and Sold Worldwide Integration to Bombardier condition monitoring solution, Orbita, a cornerstone for Predictive Maintenance Integration to RFID– applications in Configuration Management, Security, Health Monitoring, to begin testing Q2 2008 The Benefits Improved Warranty tracking Failure reporting available to all Bombardier customers Reduced inventory by 20% through optimization

Tivoli - How does it reduce costs, How much, How fast to implement, 1 customer example
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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 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. IBM Asset Management for Service Providers solution is a combination of Maximo Enterprise Asset Management and Maximo for Service Providers. This SOLUTION helps SERVICE PROVIDERS achieve business goals by reducing costs and complexities and allowing Service Providers to focus on their business priorities. HELP REDUCE TOTAL COST OF OWNERSHIP BY LEVERAGING A SINGLE DEPLOYED INSTANCE TO MANAGE MULTIPLE CUSTOMERS Improve efficiency of service delivery with automatic notification and automatic assignments Manage multiple customers with many physical locations Provide unique customer agreements and rules to define entitlement of services and pricing Provide detailed and more accurate billing with a review and approval cycle

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

Summary Its only going to get more competitive. We need to be able to adapt, manage costs, ensure compliance and support new business models OPPORTUNITY - Agility and Dynamic Infrastructure are key to driving constant change across a complex heterogenous landscape SOLUTIONS – Asset mgmt needs strong industry focus including products, industry councils, user driven initiatives PROOF points – Don’t try to reinvent what’s already successfully in play…you can add to it

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