In today’s complex IT environment, insurance is considered a necessary evil by many facility managers to help mitigate risk and protect their business in the event of a disaster. It is normal, prudent and advised – just ask the insurance agent, lawyer or financial advisor representing that specific financial investment tool. The challenge with insurance, however, is that it is structured to help you recover from a negative event. Insurance doesn’t get you ahead, rather, it seeks to get you back to even after your business has been impacted by some catastrophe.
Monitoring, on the other hand, should be an investment to make you run more efficiently and create positive ROI value. To realize the full benefit of monitoring, the monitoring system needs to include a predictive framework that includes continuous generation of recommendations on what actions to take and updates to perform, so that risks to the business are addressed far in advance. Further, these recommendations, predictions, and insights are best produced by experts with specialized knowledge, historical know-how, and attention to detail.
Specifically, predictive monitoring drives value in three main ways:
- Outsourced expertise reduces staff burdens and provides expert insight with accurate preventative action steps
- You don’t need to train and staff an expert on each and every piece of equipment
- Your team can focus on the core operations of running your business, as well as strategic initiatives for growth
- Robust reporting drives reduced maintenance costs and delivers visibility throughout the organization
- Systemic measures replace periodic manual checks, allowing your staff to better utilize their time on long-term planning
- Visibility and shared understanding of your team help create better coordination of regular maintenance, as well as avoid costly emergency maintenance
- The data collected and analyzed supports warranty replacement situations and proves manufacturer deficiencies
- Predictive analytics optimizes operations and extends asset lives
- Delays capital outlays for replacements, preserving cash and improving the reliability of budget forecasting
- Enhanced planning and accurate predictions for end of life offers additional procurement savings opportunities
Regardless of whether you have the opportunity to leverage actual performance data to inform your purchase and maintenance decisions, monitoring services should produce positive ROI for your business. When considering the service price, make sure you factor in each of the areas for cost avoidance, as well as the opportunity to increase operational efficiencies into your ROI assessment. Contemplate the value of the data – reduced staff time, cohesive maintenance plans (other than the passage of time), informed replacement timing, and faster decision making based on facts and figures.
Then, once the case is made, you can rest easy knowing you’ve taken steps to proactively reduce risks to your business, instead of just buying an insurance policy to cover the damages post-disaster.