Identification of motivation, challenges, impact and critical success factors of asset management system in multiple organisations in Malaysia

Abstract

The International Standard Organization launched the first version of the ISO 55000 series on asset management in 2014 clearly describes the significant benefits for organizations in implementing the asset management system, but there are very few empirical researches to support these claims. This research endeavors to answer the questions of what are the motivation, challenges, effects as well as the critical success factors in asset management system implementation besides filling the gap of the lack of empirical data on the impact of the systems, by analysing experiences of multiple organizations in Malaysia. More than 300 questionnaires distributed to high asset based and capital-intensive organisations like oil & gas, airlines, property development banking etc. The respondents who are from various level in organisations, they were carefully selected from various disciplines like asset management, finance, risk management, and operations in order to form holistic view on the asset management system. From the research, organisations are motivated to implement the system to improve control and professionalize internal process and risk management. Additionally, improvement in the performance of existing assets, regulations, ease of top-down management decision and reduction or costs optimization are also the relevant motivation factors for the implementation of the system. The most relevant positive effects inspired the organizational effectiveness by articulation of roles and responsibilities, enhanced transparency apart from improved risk management. Negative effects are the unforeseen amount of time and effort and the resistance amongst and double-work for the employees’ due to departmental restructuring. Obtaining high quality data on assets along with fathoming the essential cultural changes have been the most relevant challenges for organization and consequently effective leadership and securing commitment from all employees concerned have shown to be the most relevant critical success factors. Generally, organizations are satisfied with the impact of the asset management system implementation. Regardless of the perceived challenges and negative effects from the implementation, these are regarded by the organizations as short terms. The motivations and positive effects of the implementation of asset management system outweigh the negativity and challenges in the long run, thus benefiting the organizations.