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How Digitalization can push your assets towards accelerated growth

Harvard recently conducted a studyon 344 enterprises listed on the U.S exchange to measure the effects of digitization on business profits and growth. In the report it termed the organizations who embraced digital technologies sooner as ‘Digital Leaders’ and those who adopted it at later stages as ‘Digital Laggards’. Key observations from the study are mentioned below: -

1. • 3 years average gross margin enjoyed by Digital Leaders is 55%, 18 percentage points higher than that enjoyed by Digital Laggards (37%)
2. • 3 years average operating margin of Digital Leaders is 18% against 10% recorded by Digital Laggards.
3. • 3 years average profit margins of Digital Leaders(11%) is 4 percentage points higher than Digital Laggards(7%)

Infra-Asset Industry- The Digital Laggards

This study clearly points out that digitization is a pre-requisite for any enterprise to stay ahead of the game. Unfortunately, the Indian infrastructure-asset industry is severely lagging behind on this front. As manual record keeping and operator led asset management are acting as termites to their profit margins and growth, they are losing out largely on digital opportunities. As per statistics, less than 1% digital technology is being used to manage an infra-asset during its complete lifecycle. This statistic explains the reason for irregular asset maintenance schedules, frequent asset breakdowns and heavy operational cost.

Hurdles of Digitalization

Why is Indian infra-asset industry’ not yet digitalized? What is stopping it from taking the faster route to progress? Here is the answer:

1. • Lack of a system that suits Indian environment Infra-asset industry in India runs on its own parameters, quite dissimilar to those functioning elsewhere. It has its own list of stakeholders, unique processes involved and intermittent issues to be resolved. Unavailability of a customized digital solution designed specially to cater to Indian asset-management environment acts as the biggest hurdle towards digitalization. The asset owners thus prefer to use manual methods that are easy to mould as per individual requirements and flexible to incorporate future changes.
2. • Different modules for different stakeholders Lack of synergy is another crucial reason interfering with the industry’s move towards digitalization. While there are several different platforms available to record purchase of an asset, keep track of fuel consumption, look out for maintenance schedules, maintain expense ledgers, etc., a single solution that can club all aspects under one umbrella and integrate them to draw collective benefits is required.
3. • Inefficient systems that do not predict major failures Digitalization of infra-asset management is not just about getting maintenance alerts or a detailed report on fuel consumption and other expenses. It should also facilitate prediction of major failures based on system inputs. Lack of robust systems that can perform this function act as a deterrent to adoption of digitalization.

TappetBox: An unconventional approach to digitalization

TappetBox, the leaders in helping your assets enjoy the merits of digitalization, is an infra-asset management solution built to suit the Indian asset environment. Developed after closely studying the challenges of infra-asset industry, it has been able to successfully join the missing links through its unconventional approach.

With our expansive features and comprehensive process flow, we bring together the asset owners, operators, vendors, buyers, sellers and customer care teams under one roof to efficiently digitalize every aspect of the asset lifecycle. The pool of information is then used to reduce expenses, create maintenance alerts, predict failures, prevent asset overhauls, improve inventory management, increase asset productivity, sharpen human capital management and enhance customer experience.

We strive to make asset operation a joyful experience for you and are committed to help you achieve the following:

1. • 15% reduction in repair and maintenance cost
2. • 30% reduction in asset breakdown
3. • 40% reduction in monitoring manpower

Gear your assets for enhanced performance. Adopt digitalization.

Register for a free demo today!