By David Horseman, Director, Professional Services, Brightly Software
The landscape of asset management is more intricate than ever. From escalating budget pressures to the unpredictable impacts of climate change, those entrusted with our vital infrastructure face a constant balancing act: investing for safety, reliability, and long-term resilience.
It is within this demanding environment that Strategic Asset Management (SAM) emerges as an indispensable framework for informed decision-making. With insights from 165 participants, our latest State of Strategic Asset Management report delves into these evolving dynamics, offering a comprehensive look at where the sector stands and the path forward.
SAM Maturity on the Rise
One of the most encouraging findings from this year’s report is the increase in SAM maturity. Awareness of SAM is now near universal amongst asset management professionals, with a 95% familiarity rate. This growing recognition translates into more organisations actively integrating SAM principles into their investment and service-level strategies, moving away from reactive measures towards proactive, data-driven planning. SAM provides the tools to model long-term consequences, replacing guesswork with foresight.
Persistent Funding Challenges
However, progress is rarely without its hurdles. Even with rising maturity, 57% of participants still cite funding constraints as their greatest challenge. Inflationary pressures on construction, operations, and labour costs are intensifying, forcing difficult conversations about cost control and investment prioritisation. In such an environment, the imperative for robust, reliable data becomes undeniable. Decision-makers are increasingly required to justify funding requests with evidence-backed insights, underscoring that inaccurate data can lead to misguided investments, unnecessary expenditures, and elevated risks.
The Data Imperative: Building AI on Solid Foundations
Looking ahead, the report highlights AI’s role as a transformative force in asset management; 58% of participants consider it a major initiative shaping their practice in the coming 10 years. The promise of AI – from enhanced efficiency and cost savings to superior predictive analytics – is immense. Yet, its realisation hinges entirely on the quality of underlying data. More than 50% of the participants surveyed still grapple with fundamental data hygiene: maintaining accurate asset registers, ensuring seamless system integration, and establishing consistent data flows. These foundational elements are the bedrock of any effective asset management system.
Integrating Climate Risk and Sustainability
Furthermore, the growing urgency of climate risk and sustainability profoundly influences long-term asset planning. Environmental, Social, and Governance (ESG) goals remain a critical issue for local governments and other asset intensive organisations, with 62% indicating that ESG requirements are somewhat or significantly tied to their asset management practices. This requires precise data collection and benchmarking to set achievable targets for building more resilient infrastructure.
The insights from this year’s survey, drawing on the collective experience of 165 participants, paint a clear picture: the SAM landscape continues to evolve as practitioners adapt to new challenges and harness new technologies. It underscores the critical role of data in every facet of asset management, from securing funding to embracing AI and achieving sustainability objectives. For a comprehensive look at these trends, including the complete dataset of participant responses, and practical guidance for advancing your own SAM initiatives, download the full State of Strategic Asset Management report.
