The ROI of Digital Asset Management: Calculating the Value for Your Business

Mar 28, 2024

Boost service engineer productivity with digital asset management software. Learn how to measure and optimize ROI in our comprehensive guide.

The ROI of Digital Asset Management: Calculating the Value for Your Business

In today’s competitive landscape, skilled service engineers are a manufacturer’s gold, and digital asset management (DAM) can be the lever to enhance their productivity and retention.

There’s a talent crunch across Europe—finding and keeping top talent is a constant battle, according to the latest European Commission Report. It is especially true when the brain drain is also on the rise, with an average of 3.66 across 41 countries in Europe.

Machine and plant operator turnover rates are skyrocketing, with a jump of over 5% just from 2021 to 2022. At the same time, Europe’s workforce is shrinking, with a declining working population reaching a mere 265 million by 2022.

The bottom line? Retaining your top engineers is no longer a luxury, it’s a necessity for survival. DAM can be the tool to help you achieve that.

Imagine if you could empower your service engineers, reduce wasted time spent searching for manuals and specs, and free them to focus on what they do best – fixing machines, improving OEE for customers, and keeping customers happy with proactive support.

Digital Asset Management (DAM) can be your secret weapon, boosting engineer efficiency and satisfaction, all while delivering a measurable digital asset management ROI for your business.

Why Digital Asset Management is Important (DAM)

Efficiency is key in the fast-paced world of machine manufacturing. Digital Asset Management (DAM) helps you achieve this by centralizing all your digital resources.

Think of manuals, schematics, product photos, and training videos – DAM is a secure library for these critical assets. It goes beyond simple storage by offering powerful organization tools like tagging and version control.

This ensures everyone – from service engineers to designers and marketing – has immediate access to the latest, accurate information. No more wasted time searching for buried files or relying on outdated versions. DAM streamlines workflows and helps provide high-quality service for your customers.

Challenges Faced by Service Engineers without DAM

For service engineers working in fields that require quick access to technical documentation, parts manuals, instructional videos, and other digital resources, the absence of a DAM system can present several challenges:

  • Lacking Centralized Machine Resource Management:
    Without a DAM system, managing and organizing installed base becomes cumbersome. Engineers may have to sift through disorganized directories or multiple storage solutions to find what they need, leading to wasted time and frustration.
  • Difficulty in Accessing Updated Information:
    A DAM system ensures that the most current versions of digital assets are readily available. Without it, service engineers might use outdated information, leading to errors in service execution or delays.
  • Collaboration and Sharing Challenges:
    Sharing digital assets among team members without a DAM can be inefficient, primarily if the team is distributed across different locations. This can hinder collaboration and slow down project progress.
  • Scalability Issues:
    As a company grows, so does its installed base. Without a DAM system, scaling asset management efforts to meet growing needs can be a significant challenge, potentially leading to disorganization and inefficiency.
  • Increased Risk of Data Loss:
    Without centralized management and proper backup protocols that a DAM provides, there’s an increased risk of losing critical digital assets due to accidental deletion or hardware failures.
  • Compliance and Licensing Issues:
    Managing licensing and compliance for digital assets can be complex. Without a DAM system, tracking usage rights is more challenging, leading to potential legal issues.
  • Difficulty in Measuring Asset Performance:
    DAM systems often include analytics to track asset usage and performance. Without these insights, it is more challenging to make data-driven decisions about which assets are most effective and how they should be improved.
  • Compromised Response Time and Service Quality:
    Quick access to the correct information at the right time enables engineers to address customer inquiries, troubleshoot issues, and perform repairs more swiftly and effectively. This responsiveness enhances after-sales quality and contributes to higher customer satisfaction and loyalty. Without Digital Asset Management, response time and service quality is compromised.

Measuring the ROI of Digital Asset Management

Measuring the Return on Investment (ROI) of Digital Asset Management (DAM) systems, especially for service engineers, involves evaluating both the quantitative (numerical) and qualitative (non-numerical) benefits that these systems provide.

Quantitative Measures of DAM ROI

Time Saved on Asset Search and Retrieval:

  • Calculation:
    Estimate the amount of time service engineers and other staff previously spent searching for assets, multiply by their hourly rates, and compare against the time spent after implementing DAM.
  • Impact:
    Reducing search and retrieval time translates directly into labor cost savings and allows engineers to focus more on their core duties

Improved Asset Utilization Rates:

  • Calculation:
    Measure the increased usage of available assets, indicating more efficient use of resources.
  • Impact:
    This can lead to fewer purchases of redundant assets and better use of existing materials, directly affecting the bottom line.

Reduced Asset Recreation Costs:

  • Calculation:
    Compare the costs of recreating lost or hard-to-find assets before and after DAM implementation.
  • Impact:
    Avoiding the need to recreate assets saves time and resources, providing clear financial benefits.

Qualitative Measures of DAM ROI

  • Enhanced Collaboration Among Engineering Teams:

    • Assessment:
      Assessment: Evaluate improvements in project timelines and error rates due to better collaboration facilitated by DAM.
    • Impact:
      While more challenging to quantify, enhanced collaboration can lead to faster project completions and higher-quality outputs.
  • Increased Protection and Compliance for Digital Assets:

    • Assessment:
      Consider the risk mitigation achieved through secure asset management and adherence to compliance standards.
    • Impact:
      Reducing the risk of data breaches and compliance violations can prevent substantial financial penalties and reputational damage.
  • Streamlined Workflow and Increased Productivity:

    • Assessment:
      Observe changes in workflow efficiency and productivity metrics post-DAM implementation.
    • Impact:
      Streamlining operations can lead to a more agile and responsive engineering function, which can contribute to overall organizational performance.

Implementing DAM in Your Business

Here are key steps to choose the right DAM software or system tailored to the needs of service engineers:

Identify Digital Asset Management Requirements:
Understand the specific needs of your service engineers and other stakeholders. What types of digital assets do they use? What problems do they face with current asset management practices?

Set Objectives:
Define clear objectives for what you want to achieve with the DAM system, such as reduced search times, better version control, or improved collaboration.

Essential Features:
Ensure the DAM system offers key features that meet the unique needs of service engineers, including advanced search capabilities, version control, mobile access, and offline accessibility.

Integration Capabilities:
Check if the DAM system can integrate seamlessly with other tools and systems your engineers use, such as CRM, ERP, or project management software.

User-Friendly Interface:
Choose a DAM system with an intuitive user interface to ensure quick adoption by your service engineers and minimize training requirements.

Evaluate the system’s security features, including access controls, encryption, and compliance with relevant data protection regulations, to ensure the protection of your digital assets.

Implementation Plan:
Develop a detailed plan for rolling out the DAM system, including data migration, integration with existing systems, and any custom development required.

Training Program:
Design a training program for your service engineers and other users to ensure they are comfortable and proficient with the new system from day one.

Case Studies Demonstrating DAM Utility in Engineering

  1. American Express Publishing
  2. The successful implementation of a Digital Asset Management (DAM) system at American Express Publishing (AEP) shows challenges and digital asset management best practices associated with transitioning from theoretical planning to practical implementation in a production workflow environment

    This outlines the critical decisions and actions the DAM team must take to implement the DAM system successfully.

  3. Siemens
  4. A global powerhouse in industrial automation, Siemens utilizes Digital asset management software to manage a vast library of technical documents, product images, and marketing materials. This ensures consistent brand messaging and empowers their service engineers with immediate access to the latest product information.

  5. John Deere
  6. This American agricultural machinery manufacturer utilizes DAM to manage a complex library of product manuals, service guides, and training materials in multiple languages. This ensures clear and consistent communication with their global dealers and service technicians network

  7. Mitsubishi Power America
    Mitsubishi Power’s solution, TOMONI, offers a future-proof digital strategy for power plants. It centralizes data management and ensures smooth operation throughout the plant’s lifespan.

Wrapping Up!

Digital Asset Management is a pivotal tool for manufacturers aiming to navigate the complexities of modern service delivery and asset management efficiently. By centralizing digital resources, facilitating instant access to accurate information, and enhancing collaboration, DAM significantly elevates the productivity and satisfaction of service engineers.

It addresses the talent challenges head-on, optimizing operational efficiencies and ensuring a measurable return on investment.
DAM isn’t just a strategic move in today’s competitive landscape; it’s a necessity to foster innovation, improve service quality, and ensure long-term success.

To experience these benefits firsthand, consider exploring Makula software. Makula offers a comprehensive solution tailored to meet the unique needs of service engineers and businesses, ensuring seamless management of digital assets.

The only CMMS offering 3D capabilities for businesses involved in selling, servicing, using, or operating machinery and assets.

With Makula’s digital solution, streamline communication and simplify operational tasks in maintenance activities .

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