IBM Global Business Services
Physical assets dominate the balance sheet of many companies, are a major
corporate cost and are vital to operational performance. Asset Management
is the holistic management of all asset classes that allows organisations
to optimise performance. Getting Asset Management right can increase
shareholder value, reduce costs, increase return on capital employed,
support the core business, manage risk and deliver business flexibility.
We have an execellent reputation for asset management consultancy and
an extensive coverage of asset classes, with capabilities to manage change
programmes spanning across the whole lifecycle.
Real estate and facilities
Land, offices, industrial facilities, warehouses, retail space, schools,
Plant and production
Power stations, pharmaceuticals, textiles, chemicals, petroleum,
electronics, consumer goods.
Infrastructure and utilities
Railways, electricity/gas distribution, highways, telecoms, water, wastewater.
Mobile assets and transportation
Military, airlines, fleet management, shipping, rolling stock, public
transport, intelligent transportation.
Computers, routers, networks, software, auto discovery, service desk.
We have two decades’ experience in delivering solutions that are tailored
to meet our clients’ needs, across all asset classes. We can help you to
improve your performance through:
BETTEr rEal EsTaTE manaGEmEnT and faciliTiEs
• POrTfOlIO STrATeGy And PlAnnInG
• PrOcureMenT STrATeGy And IMPleMenTATIOn
• PrOceSS And OrGAnISATIOnAl deSIGn
• SuSTAInABle reAl eSTATe And fAcIlITIeS MAnAGeMenT
BETTEr assET manaGEmEnT
• STrATeGy And dIAGnOSTIcS
• STrATeGIc PrOcureMenT And OuTSOurcInG
• SuSTAInABle ASSeT MAnAGeMenT
• WOrkfOrce MAnAGeMenT
BETTEr assET manaGEmEnT sysTEms
• ASSeT MAnAGeMenT cOnSulTInG
• ASSeT MAnAGeMenT SySTeMS IMPleMenTATIOn
• IBM MAxIMO ASSeT And ServIce MAnAGeMenT
BETTEr PrOGrammE and cHanGE manaGEmEnT
• cAPITAl PrOGrAMMe MAnAGeMenT
• BuSIneSS cASe develOPMenT
• PrOcureMenT STrATeGy And MAnAGeMenT
• cHAnGe MAnAGeMenT
IBM is taking our clients to the next generation of Asset Management through
strategy, process and technology programmes. These address emerging
trends such as sustainable (green) asset management; collaborative asset
supply chain management; intelligent assets and condition-based analytics;
mobile workforce management; capital programme portfolio management;
business process outsourcing; and Asset Management systems consolidation
along with through–life application management.
• POrTfOliO sTraTEGy and PlanninG
• PrOcurEmEnT sTraTEGy and imPlEmEnTaTiOn
• PrOcEss and OrGanisaTiOnal dEsiGn
• WOrkPlacE TransfOrmaTiOn
• susTainaBlE rEal EsTaTE and faciliTiEs manaGEmEnT
Many organisations fail to make the best use of offices, factories and
warehouses.yet property assets are probably one of the largest items on
your balance sheet. In our experience, introducing best practice shows
that you can improve the way you use your property and reduce your
costs by as much as 15-20%.
Portfolio strategy and planning
Property and facilities management transformation
Southwest One is a joint venture company comprising IBM,
Somerset County Council, Taunton Deane Borough Council
and the Avon and Somerset Constabulary. As part of a
broad transformation agenda, we are working with the client
bodies to transform property and facilities management from
three separate organisations with a total of over 200 staff
into a single, customer-facing organisation. In addition, we
are rationalising over 100 property related systems into a
PROPERTy CARBON AUDIT
streamlined and integrated property management solution.
We have developed a competitive diagnostic of an
Our team is looking to repeat the success it has organisation’s real estate carbon contribution. Maturity
had delivering significant property savings in the past. profiling through staff interviews are combined with data
Previous examples include reducing facilities management analysis and benchmarking to identify carbon reduction
opportunities. Our property management carbon fact
spend for a global manufacturer and rationalising the IBM
sheet provides further details and can be found at
UK property portfolio. In both cases, savings in excess of ibm.com/services/uk/bcs/pdf/ibm_facilities.pdf
10% were achieved.
SUSTAINABLE FACILITIES MANAGEMENT
PROCUREMENT STRATEGy organisational design
A major UK Government Department needed to re-procure
its facilities management for 250 buildings and to reduce
costs whilst improving environmental sustainability. In doing The Home Office
so, it sought to create mechanisms that incentivised the estates organisation change programme
supply chain to reinvest savings into sustainability initiatives.
IBM Asset Management:
The Home Office managed its real estate operations of over
• Compared the environmental performance of the buildings in 2,000 buildings within a mixture of small, local departments
their estate. and larger, business-focused operations. There was a desire
• Engaged with the facilities management-supply market to to amalgamate these functions into a shared-service ‘Centre of
understand their ability to drive sustainability through a long-
Excellence’ for estates and a need to drive down costs in line
• Developed a strategy for re-procuring facilities management with Government targets. Our team:
incorporating sustainability performance measures.
• Assessed the maturity of the client’s property organisation in • Rationalised the estates functions through the design and
implementation of an Estates Shared Service Centre model.
Benefits included estimated financial savings of 10% of • Supported the re-procurement of facilities management,
core facilities management costs with additional savings estates and projects contracts.
identified for utilities and project costs. Included were realistic
investment levels by the supply chain and a mechanism for
The benefits were substantial. Annual savings of around
driving sustainability through the property portfolio, over the
period of the contract. £40 million and the formation of an Estate shared services
organisation that aligned with industry best practice processes
• PlanT and PrOducTiOn • sTraTEGy and diaGnOsTics
• BusinEss TransfOrmaTiOn and PErfOrmancE imPrOvEmEnT
• sTraTEGic PrOcurEmEnT and OuTsOurcinG
• susTainaBlE assET manaGEmEnT • WOrkfOrcE manaGEmEnT
MOBIle ASSeTS And InfrASTrucTure
In addition to the traditional issues such as maintenance cost and availability,
fleet managers must place increasing focus on rising fuel prices and capital
management as a way to manage the total lifecycle cost of critical mobile
assets. Achieving the desired levels of performance depends on successful
integration of cross-functional interests, tasks and capabilities within an
organisation. It is not just about the optimisation of the maintenance function –
lowest maintenance cost does not mean lowest total cost.
recognising the trade-offs between capital and operating expenditure can
reduce an organisation’s working capital and significantly impact its bottom
line. IBM can help you increase asset utilisation, output, economic life, and
the reliability of systems and components, while reducing capital investment,
maintenance costs, and the total number of systems and components.
Strategy and diagnostics
nuclear Generation – Asset Supply chain Strategy
British Energy is an asset intensive, geographically dispersed Our work resulted in multi-million pound cost savings and
organisation in a safety critical industry. We worked with them working capital reduction both in excess of business case
to reduce costs, improve performance and transform the Asset targets. In addition, Supply Chain safety performance
Supply Chain, including: improved by 300%, the supplier base was rationalised from
12,000 to 1,600 and output-based incentivation contracts
• A rapid diagnostic to frame the issues. were developed.
• Development of a thorough Supply Chain strategy.
• Production of an implementation road-map. “A critical factor [in selecting IBM] was its unique
• Introducing risk/reward partnering contracts. Physical Asset Management expertise leveraged
with skills in procurement, supply chain and inventory
THE WHITE PAPER John sexton, Head of supply chain for British Energy.
‘An evaluation of the capability and capacity of the UK and
global supply chains to support a nuclear build programme
in the UK’, can be accessed online at ibm.com/services/uk/
Business transformation and performance improvement
Ministry of Defence ChevronTexaco
Asset performance improvement upstream petroleum –
and cost reduction maintenance improvement programme
The Ministry of Defence needed to reduce the cost of ChevronTexaco needed to reduce outsourced maintenance
delivering Defence Logistics outputs by 20% over a five-year spend by 25%, without impacting the reliability or availability
period. We worked with the Ministry of Defence to deliver of its two principal North Sea producing platforms. We used
an asset performance management improvement our business and asset maintenance experience to help
programme comprising: ChevronTexaco:
• Spares inventory optimisation. • Revise their maintenance strategy and tactics.
• Repair programme management. • Rationalise sub-contracted service provision and improve
• Contract rationalisation and management. contract management.
• Modification strategy review. • Implement robust budget control.
• Introduction of performance targets • Enforce comprehensive use of SAP.
and management. • Revise drill rig maintenance.
Our approach resulted in a £600 million reduction in asset and This comprehensive approach has put ChevronTexaco on
inventory levels with a further programmed cost reduction track to meet its financial targets and improved the reliability
of £100 million per year. and availability of valuable plant equipment.
• assET manaGEmEnT sysTEms cOnsulTinG
• assET manaGEmEnT sysTEms imPlEmEnTaTiOn
• iBm maximO assET and sErvicE manaGEmEnT
IBM can identify which Asset Management system best meets the needs
of your asset class. We can make your existing systems work better
for you and help you review your options. Our extensive knowledge of
Maximo, SAP, Oracle, Tririga, GIS, cAd and many others can help you
select and implement the right system.
Asset management systems consulting
Home Office Estates Review
The Home Office has an estate of over 2,000 sites across The Estate’s Management Information System was targeted to
the UK operated by over 40 independent property units and centralise and improve the quality of information to enhance
served by over 200 contracts. We helped: planning, investment and decision-making.
• Rationalise and consolidate into two property ‘Centres
PROPERTy PERFORMANCE MANAGEMENT
of Excellence’ (one for offices, one for prisons).
• Produce an IT strategy to allow the new centres to extract IBM has 800 buildings across Europe, all supported by 3rd party
key performance data from their major suppliers. service providers. We have built a new type of solution to manage
• Produce a requirement specification and the business the performance of our portfolio and our providers. We are now
incorporating this capability into Maximo.
case for the solution.
Better asset management systems
IBM Maximo for asset International Power
and service management We implemented a single maintenance management system
IBM Maximo asset and service management solutions are for over 40 plants across the world to support the business
helping organisations to manage better the complete lifecycle model for future growth and to improve effectiveness and cost
of all assets strategic to their business – whether production, control. Our solution provides:
facilities, transportation or IT assets.
• Real time access to up-to-date asset information.
Benefits include: • Greater visibility of information, assets and working structures.
• Improved asset utilisation and asset life. • Excellent reporting enabling Sarbanes-Oxley compliance
• Enhanced asset reliability and availability. requirements.
• A reduction in asset maintenance costs.
• Improved workforce productivity. Tube Lines
• Better managed and optimised spare parts inventory. With over 200 miles of track, 255 trains, 100 stations, 2,395
• Increased return on assets. bridges and structures, 71 lifts and 227 escalators, Tube
• Better data relating to assets’ energy consumption and Lines is constantly striving to implement more efficient and
carbon footprint. effective ways of maintaining the entire infrastructure for three
of London’s tube lines. Our solution provides:
From traditional, asset intensive companies through to service
providers, organisations have a myriad of assets to manage • Consistent and proactive approach to maintenance
and maintain. management across 15 asset classes.
• Better understanding of trends in asset performance.
Whatever the industry, there is an IBM Maximo asset and service • Integrating asset maintenance activity and equipment
management solution that is available to meet an organisation’s history with financial planning systems.
“creating a single source of all asset information
has provided unprecedented visibility of asset
performance across the three lines management
martyn capes, asset systems Technical manager, Tube lines.
• caPiTal PrOGrammE accElEraTOr
• sTraTEGic PrOGrammE manaGEmEnT
• BusinEss casE dEvElOPmEnT
• PrOcurEmEnT sTraTEGy and manaGEmEnT
• PrOGrammE sTarT-uP
Organisations are increasingly looking at their capital programmes to support
and drive the change agenda. We can help, across all asset classes, in two
ways: defining and implementing strategic programmes and, through our
“accelerator” increasing dramatically the capability and performance of client
teams. We have earned an excellent reputation for helping clients to deliver
on their change journeys.
We have worked with our clients to improve programme management of
all asset classes, helping them to develop their business cases, carry out
options appraisals and set up and manage their capital programmes.
Better programme and change management
Ministry of Defence
Main Building redevelopment
The Ministry of Defence successfully used a 25-year PFI Ministry of Defence Main Building was delivered on budget,
programme to transform its Whitehall Headquarters to a bright, ahead of schedule and the change programme has proved
modern, flexible and inspiring working environment for its 3,300 a benchmark for others in supporting the transformation of
head office staff. the workplace.
Our team supported the Ministry of Defence through The programme:
development of the business case, procurement, and • Reduced London Footprint from 8 to 3 buildings.
negotiation. We also continued to provide change • Increased occupancy by 25%.
management support to shape, deliver and advise on the • Transformed the way the Head Office operated.
Procurement process management Workplace Transformation
Ministry of defence – PfI Programme management dvlA – Planning and Implementing Workplace
The Ministry of Defence established Project Allenby
Connaught as an £8 billion PFI to build, refurbish, manage The Driver and Vehicle and Licensing Agency wished to
and operate living and working accommodation for 18,000 optimise the use of property assets within their campus site,
military and civilian staff at Aldershot and five garrisons on whilst promoting a more flexible and dynamic set or working
Salisbury Plain. As lead advisor we: practices amongst their staff.
• Developed the procurement strategy. Our team:
• Assisted with business case and programme management. • Developed a business case demonstrating net present
• Worked to determine the “sweet spot” to mitigate risk and value savings of greater than £9 million over 10 years.
satisfy the Ministry of Defence, commercial bidders and the • Piloted a programme for 100 staff and rolled out the
funding institutions. arrangements amongst the remaining 6,000 staff.
• Successfully managed the change, communications,
technology and security programme to minimise the
“IBM consultants played a pivotal role in developing
potential adverse effects of change on the people
the commercial framework for the project, developing
and the organisation.
and implementing procurement strategies, handling
negotiations with commercial consortia and finalising
The utilisation of the property assets increased by
contracts with the preferred bidder.”
approximately 30% and enhanced working practices and
mike cooper, ministry of defence, Project manager.
productivity amongst the 6,000 staff. This project won the
CoreNet UK innovation award in 2006.