In the current economy, many utilities are struggling to improve company performance and reduce costs. Limited access to funding combined with reduced revenue present challenges, but these challenges can present opportunities. This is the optimum time for utilities to rethink internal business processes and how they can become successful.
An effective asset-management business model coupled with best-practice implementation helps turn chaos into stability. It allows companies to come out of survival mode, become successful and even thrive. Asset management is still evolving as a viable business model. Some companies that have adopted portions of its core principles are having difficulty realizing significant performance-improvement benefits. It might be a result of not understanding basic asset-management principles, improper application of core practices, a lack of technology or the not-invented-here factor. Conversely, companies that follow the core principles of asset-management—fact-based decision-making integrated with risk management—are successful in balancing limited spending with company performance.
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