The strategic role of engineering asset management

The current concept of an asset management (AM) system focuses on the lifecycle of engineered assets

and little has been done in the literature on its link to organizational strategy. In this paper, the AM

system′s position within an organizational structure and its role in competitive strategy has been

explored. Two case studies involving AM have been analyzed using a proposed framework which is

comprised of a set of planning and control activities maintaining a control mechanism and a relationship

with the strategy-making process. It is argued that the AM system structure and the mechanism play a

key role in the organizational strategy. The existence of the AM system is hypothesized by this

framework which stipulates the asset performance required for strategic success. The use of this

framework allows for conclusions to be drawn on the requirements for building an effective connection

between AM activities and strategy development. This connection is achieved through planning and

control mechanisms acting on the asset-related activities. On one hand, the effect of inadequate or

missing elements of the framework has been shown to result in negative impacts on cost, productivity,

quality, business outcomes and ultimately strategy achievement. On the other hand, the existence of

elements of this framework has been shown to have positive impacts on strategy achievement.