Asset management for local government


Nov 18, 2013 (4 years and 5 months ago)


Thought Leadership White Paper
Asset management for
local government
Achieving unified enterprise asset management with
IBMMaximo software
2 Asset management for local government
3 Handling today’s complex challenges
4 Unifying a fragmented asset management world
6 Strategic asset management for municipalities
6 Understanding the unique needs of municipalities
7 A comprehensive solution in a converging world
7 Reducing complexity, increasing control
7 Extending the power of asset management
8 For more information
8 About Tivoli software from IBM
Executive summary
Whether they are called cities, counties, villages, boroughs—or
something else entirely—local government municipalities of all
proportion around the world shoulder the same responsibility to
provide essential services to their constituents. Amid flat or
shrinking budgets, local governments today are expected to
accomplish more with fewer resources. Governments aim to
maintain and develop the type of community where people
desire to live and businesses can thrive, but they often struggle
to fulfill those roles while conforming to a complex web of
regulations. To meet their responsibilities and achieve their
goals, local government organizations must improve their
internal operations, achieve economies of scale across their
departments and find efficiencies to free resources for other
The task of improving operations in local government is
complicated by the very nature of the organization. Often, there
are dozens of departments, each with a specific charter and
sometimes an independent budget. The breadth and scope of
assets and services for which municipalities are responsible,
when coupled with financial pressures, is unlike anything in the
private sector.
Consider this sample of assets that municipalities manage:

Buildings and property:Local governments own and manage
a large number of physical structures and places, from city hall
to office buildings, parks and recreation land, to perhaps the
largest physical space requirement—public schools.

Roadways:In addition to roads themselves, assets such as road
signs, traffic signals and street lights require the appropriate
levels of service to ensure they function properly and conform
to regulatory standards.

Utilities:Local governments may be responsible for some,
if not all, of the deployment and maintenance of delivering
critical utilities such as electricity, gas, water, sewer, storm
water and telecommunications networks.

Public safety:Police, fire and other first responders must have
well-maintained equipment capable of performing as required
in an emergency. Primarily this means cars, trucks and other
vehicles, but it can also include specialty equipment.

Public transit agencies:Heavy and light rail systems require
maintenance of right of way, track, vehicles and stations. Bus
systems must maintain buses, but also paratransit vehicles,
accessibility equipment and shelters.
When individual departments use separate systems to manage
their own assets, the result can be a complex, multi-layered
enterprise. Local governments need to look at enterprise
solutions that allow them to take an enterprise asset manage-
ment approach to maintain their assets, deliver services and
improve performance of the government as a whole.
Handling today’s complex challenges
Three challenges have emerged for local governments with
regard to improving their internal operations. First, as govern-
ment employees reach retirement age, municipalities must
make a successful transition to a younger and less experienced
workforce while retaining years of accumulated institutional
knowledge. Second, local governments must find efficiencies
in operations by consolidating applications to support an
increasingly converged traditional and intelligent asset environ-
ment. Third, as governments promote sustainability practices
within their community, they need to develop their own capabil-
ity to improve building operations through green building
practices, smart redevelopment and use of available technology
to reduce energy use in existing government buildings.
Managing workforce and infrastructure transitions
Making the transition from a retirement-age workforce to a
younger and less experienced one poses a significant challenge
for local governments today, but it also creates an opportunity.
As large numbers of highly qualified personnel leave, local gov-
ernments risk losing practical and institutional knowledge about
their assets and operating history. Each department must be able
to capture knowledge and asset management best practices from
experienced employees and deploy them as proven workflow
Not only is the workforce aging—the assets underlying opera-
tions are also getting older. Minimizing the impact of the aging
infrastructure requires local governments to:

Provide a central repository containing asset condition and
maintenance records.

Use historical data to prioritize asset replacement.

Program the maintenance of assets based on criticality, usage,
history and other factors in order to optimize asset lifespan,
minimize risk and comply with regulations.
Asset management for local government
Consolidating operational applications
To effectively manage all of their assets, local governments
need a way to harness the data they already have. Then they
need a well-defined process to control and manage day-to-day
work-related functions. Lastly, they require analytics tools to
make informed decisions based on their asset and work data.
Accomplishing this requires a rational set of industry standard
tools, including enterprise asset management, which can func-
tion across the local government enterprise. Governments that
seek to do this must:

Establish a core set of information systems necessary for
the function of government including financial management
and geospatial citizen response, as well as asset and work

Have an integrated asset management solution to manage
all types of assets—buildings, roads, parks and physical
plants—that enables optimal return on assets, complies with
regulations and helps minimize risk.

Link the processes between these systems to support
government-wide requirements such as integrated supply
chain management.
Creating sustainable building operations
Local governments must constantly find ways to become smarter
through sustainable building operations that are clean, safe and
optimized for energy efficiency at a reduced cost over time.
Because local governments are bound to environmental health
and safety regulations, ensuring that these requirements are met
means that any incidents must be tracked, and any resources
used to respond to environmental incidents involving hazardous
materials and the like must be ready and available.
There’s also the issue of optimizing the existing building space
local governments already have. Making the most of the build-
ings governments possess by maximizing the use of existing
physical space and resources can conserve energy and increase
overall operational efficiency. This approach can also help delay
costly new construction, further lowering costs and lessen the
environmental impact.
To help create sustainable building operations and processes,
local governments need a way to:

Enable a central repository for space management and data
center infrastructure to optimize space utilization.

Develop processes that can optimize energy consumption.

Allow asset-intensive divisions of the government to develop
smarter processes that support all types of assets such as emer-
gency rooms, fire doors, buildings or other facilities.
Unifying a fragmented asset
management world
Municipal asset management challenges are further exacerbated
by the fragmented nature of most asset management software
solutions used today. Individual assets types (school buildings
versus park system assets, for example) are generally managed by
standalone, legacy systems that are often poorly integrated,
expensive to operate and difficult to change.
The islands of data that these systems produce cannot be
aggregated in a way that supports informed decisions. Similarly,
standalone systems make it next to impossible to comply with
recognized industry standards such as the Publicly Available
Specification 55 (PAS) from the British Standards Institution
(BSI), and the Governmental Accounting Standards Board
(GASB) Statement Numbers 34 and 42 in the United States.
The ideal solution instead provides a unified platform to track
and manage the full spectrum of municipal assets and service
providers; addresses compliance, accounting and asset-related
IBM Maximo Asset Management
K-12 school
Motor pool
Roads and
Parks and
IBMMaximo Asset Management software delivers a unified platform to track and manage the full spectrum of municipal assets.
challenges across multiple departments; and integrates smoothly
with key systems such as geographic information systems (GIS),
enterprise asset management (EAM), customer information
systems (CIS) and ERP.
Municipalities that are ready to adopt a new approach can
leverage today’s superior technologies to unify asset manage-
ment, optimize asset life, deliver services more efficiently and
stretch shrinking budgets. This unified asset management
approach embodies a set of processes and practices that enable
Asset management for local government
municipalities to optimally manage the performance of their
critical assets according to the expectations and requirements of
key stakeholders.
Strategic asset management for
With effective, unified management of assets, local governments
are empowered to make more informed decisions about
resource allocation and utilization. Unified asset management
also improves governments’ ability to track the results of their
decisions over time. Better executive decision making is made
possible by improving the quality and timeliness of information.
In particular, an asset management approach enables resource
allocation decisions to factor in not only the funding required
for major projects, but also the utilization of value-added
resources including staff, equipment, materials and real estate.
The end result is a pragmatic, systematic process for maintain-
ing, upgrading and operating physical assets and managing
services in a highly cost-effective manner.
Understanding the unique needs of
With a strategic view of all essential assets, municipalities can
obtain the right levels of visibility, control and automation to
more effectively and more proactively manage assets throughout
their life cycles. While the primary capabilities and associated
benefits of asset and service management apply to any organiza-
tion, local governments and municipalities have additional,
unique requirements including:

Flexibility:Perhaps most important, it is vital that municipal
asset management solutions be highly flexible and config-
urable, in order to support the diverse compliance and
accountability requirements of individual municipal depart-
ments. It should be possible to configure the application’s
interface and workflow to better align with each department’s
specific processes, and to give each decision maker an optimal
view on the available data.

Scalability:An asset management solution for local
governments should also scale to manage the great volume
and diversity of municipal assets and service provider relation-
ships. Ideally, the solution would also allow for the manage-
ment of IT assets including servers, networks, desktop and
laptop computers, software and telephony equipment.

Functionality:In addition to supporting multiple types of
assets, the solution should offer built-in features that local
governments and municipalities will find particularly useful.
These include workflow and automated alerts that can be asso-
ciated with procurement decisions or problem escalations;
modules for contract management, warranty management,
labor certification and service management; built-in deprecia-
tion calculations for trucks and repair equipment; and a host of
other functions specific to government operations.

Integration:It is critically important that the solution can
integrate with other key municipal systems in order to lever-
age current IT investments for maximum value. Integration
capabilities that are particularly important for local govern-
ments fall into the areas of CIS, EAM, ERP and GIS.

Standards-based:Any work and asset management solution
should be built on advanced, standards-based architecture that
can mesh with evolving initiatives and reduce infrastructure
complexity. It should not create another legacy application that
requires support and integration.
A comprehensive solution in a converging
On today’s smarter planet, where everything from utility meters
and roadways to nuclear power plants and electric grids is
becoming infused with microprocessors, firmware, software,
network connectivity and more, assets have unprecedented
The resulting convergence of smarter assets is bringing substan-
tial changes to the traditional help desk, which until now has
always focused on a narrow class of incidents such as water
main breaks, power outages or road closures from particular
infrastructures. Convergence transforms the traditional help
desk into a consolidated help desk capable of providing support
for all assets from a single software instance.
Reducing complexity, increasing control
Achieving asset management success in today’s complex world is
a major challenge for municipalities. IBM®Maximo®Asset
Management software delivers a complete work and asset man-
agement solution for local governments. From a single unified
platform, municipalities can monitor and manage their efforts to
address regulatory requirements, improve safety and services,
maximize asset performance and reduce costs.
Maximo Asset Management provides industry-leading asset
modeling that is suited for all asset infrastructures—be they
parks, schools, power lines or road repair equipment—to better
support the growing need for timely maintenance and repair
over asset replacement.
Built-in features tailored to local governments—such as service
level agreements, service desks, mobile capabilities, contract
management and standard integration adapters—help shorten
time-to-value. Maximo Asset Management also enables local
governments to manage the increasing number of service
providers, whose performance directly impacts asset accountabil-
ity, and capital and operating budgets.
Maximo Asset Management streamlines operations by unifying
not only the various processes for asset tracking and asset
management, but also the legacy systems used for tracking
and management. T
o further reduce complexity and improve
reliability and data integrity, Maximo Asset Management man-
ages all assets from a single, central data repository. Built on a
standards-based, service-oriented architecture, the IBM solution
supports a centralized implementation across multiple depart-
ments and locations, and it integrates with key financial and
business systems including ERP and GIS
Extending the power of asset
Maximo Asset Management can easily be extended to include
procurement and supply chain solutions for asset-related
materials, and to provide mobile access to asset data via smart
phones and other devices. With IBMMaximo Spatial Asset
Management software, users gain visibility to see complex GIS
information by providing a dynamic, geospatial context of work,
assets and relevant land-based features. This unifying framework
brings technology together so that key stakeholders have the
information they need.
Please Recycle
A proven solution built on decades of experience in enterprise
asset management, Maximo Asset Management delivers a
comprehensive asset and service management solution that is
used by hundreds of municipal customers around the world.
Maximo Asset Management helps local governments deliver
higher service levels with fewer resources, while providing
budget justification and asset accountability.
Maximo Asset Management allows local governments and
municipalities to see the full range of assets, identify untapped
potential within them, and deliver the knowledge and control
they need with the accountability legislators and taxpayers
demand. The result is a consolidated, trusted platform for easily
and effectively managing everything from individual tools at a
public works maintenance facility to every building in a public
school system.
For more information
To learn how IBMMaximo Asset Management can help your
municipality meet today’s unique challenges, contact your
IBMrepresentative or visit:
About Tivoli software from IBM
Tivoli software from IBMhelps organizations efficiently and
effectively manage IT resources, tasks and processes to meet
ever-shifting business requirements and deliver flexible and
responsive IT service management, while helping to reduce
costs. The Tivoli portfolio spans software for security, compli-
ance, storage, performance, availability, configuration, operations
and IT lifecycle management, and is backed by world-class
IBMservices, support and research
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