Abstract
-
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.