We have previously published MarketScopes for generic, cross-industry, enterprise asset management (EAM) and enterprise resource planning (ERP) suites for this category. Changes in customer buying criteria and vendor offerings — resulting in more industry-specific needs and expectations — are reflected in our new market separation. We evaluate EAM products for generation and distribution utilities, as well as manufacturing and natural resources, in separate publications.

Component EAM (and computerized maintenance management system [CMMS]) products suitable for manufacturing companies have increasingly become a specialized area of software. Some suite vendors also actively market their EAM modules as stand-alone offerings and sell them as specialized maintenance solutions. (Other suite vendors offer them only as part of the ERP suite, and thus limit the EAM market to their own customer base.)

Manufacturers should make key architectural decisions, such as a component or single-suite solution, part of their EAM selection processes. Then, based on the relative importance of asset availability to the overall success of the business, they should select the vendor that best fits into their architecture, while offering the optimum mix of functionality for their particular styles of manufacturing. Vendors vary widely in scalability and functionality, and a solution appropriate for one industry may lack a critical functionality appropriate for another industry.

Although the scope of this assessment is global, some vendors specialize in geographies; thus, vendors should not be chosen based on size alone. Because any Magic Quadrant is by necessity an "averaging" of vendors' offerings and performances, we always recommend consulting the authoring analysts to get specific advice on your needs and issues. Likewise, certain industries, such as pharmaceuticals, other life sciences and aerospace manufacturing, have industry-specific requirements from the U.S. Food and Drug Administration and the U.S. Federal Aviation Administration.

This initial Enterprise Asset Management for Manufacturing Magic Quadrant does not differ radically from previous cross-industry editions. This is to be expected, because manufacturing itself is a collection of multiple industries.

Some vendors that served the utilities sector are omitted. Those are included on the appropriate Enterprise Asset Management for Transmission and Distribution Magic Quadrant.

Oracle and SAP have been added because they are commonplace in manufacturing, although not implemented as component solutions.

EAM packages that are manufacturing-oriented primarily have material and maintenance management functionality (or the vendor packages and sells that format) that is scalable to multiple sites and caters to intermediate-to-advanced maintenance management functions. A sometimes interchangeable term is "CMMS package." CMMS packages include material and maintenance functionality, but they are simpler in scope and are focused on single-site deployments. They may even be used by large enterprises if a site-by-site or a departmental solution is required.

For manufacturing companies, the functionality must be capable of complex fixed-plant support, with particular importance attached to hierarchical plant structures, condition and performance monitoring, preventive maintenance, and shutdown planning for refurbishments. Emphasis is particularly placed on the planning and execution process. This is reflected in the requirements listed here and will be satisfied by the software products in that category:

• Detailed asset registry, combined with detailed parts and support descriptions
• Long-term maintenance, project and work schedules
• Support for complex inventory relationships for indirect (that is, blue-collar maintenance, repair and overhaul [MRO]) goods that are associated with forecasts of planned and unplanned work on installed assets
• Supply chain capability for indirect goods, with demand planning linked to maintenance and repair schedules
• Probability-based, "just in case," rather than "just in time," inventory and procurement
• Support for manufacturer logistic processes for equipment under warranty
• Human capital management (HCM) capabilities to match skills, training and availability with work requirements
• Statistical analysis of equipment performance and reliability
• Remote electronic monitoring of asset health and performance
• Serial number tracking and tracing for equipment and parts
• Financial support via detailed cost analysis
• Integration with whichever financial and human resources packages are deployed
• Extensive warranty tracking to component levels
• Shutdown project planning

See "The EAM Market Shows Growth and Consolidation" for more information on these applications.

In the words of Geoffrey Moore, a noted author of many business books, a market is "a set of actual or potential customers for a given set of products or services, who have a common set of needs or wants, and who reference each other when making a decision."

Buyers normally refer to this particular market as the component, or point solution, market for EAM. Manufacturing companies evaluate and procure EAM products as maintenance modules when solving physical-asset-care requirements or when providing maintenance support in the manufacturing facility. Many also look to extend the application to facilities management for supporting offices and mobile equipment used in material transfer within the manufacturing facility.

EAM functionality evolved from the CMMS applications that encompass work and material management for fault repair and regular, preventive maintenance and service activities. An EAM solution includes work order creation, planned maintenance, maintenance history, and MRO inventory and procurement, as well as equipment, component and asset tracking for hierarchical assemblies of equipment. In its most evolved form, the functionality is extended by the addition of basic financial management modules, such as accounts payable, cost recording in ledgers, and human resource management for rostering and skill recording.

Technically, EAM applications are designed to scale for larger numbers of users (for example, beyond 100 concurrent users). The applications also run on multiple sites from a single central database, thereby catering to the whole of business requirements, rather than departmental or site requirements. Because buyers usually evaluate products from multiple vendors and look for component solutions rather than suites (on a 76-24 ratio, based on license fee expenditures in 2006), the ability to sell the EAM module as a stand-alone is an important criterion.

The market does not include IT asset management, facilities workplace management (integrated workplace management system) or treasury/financial asset management. These are separate markets for software covered elsewhere by Gartner. It also does not encompass the related service-parts-planning market, which is related to EAM in that it supports the provisioning of spares for a repair environment (see "MarketScope for Service Parts Planning, 2Q05").

Software products must address the majority of the functional capabilities listed here. There are more than 400 vendors in the CMMS and EAM class of software, and most of these are too small in company size or product scope to be of interest to Gartner clients. Therefore, we will evaluate only the top products worldwide. They will also have these criteria:

• Have a demonstrable track record in manufacturing and generate at least a third of their EAM revenue from manufacturing companies
• Have at least $20 million in EAM revenue or be part of a larger organization with revenue of more than $1 billion
• May be a stand-alone component solution or be delivered only as part of an EAM or ERP suite
• Must serve more than two sectors of the manufacturing industry — as classified by Gartner, these include automotive; aerospace and defense; high tech; consumer products, including food and beverage, alcohol and tobacco, soft goods, durables, consumer electronics, and household products; life sciences, including pharmaceuticals, biotechnology, and medical devices, equipment and supplies; chemicals; and other discrete manufacturing. Semiconductors are explicitly excluded from this evaluation, because within that sector maintenance functionality is generally linked to manufacturing execution applications.

This is the first iteration of this industry-specific Magic Quadrant.

This is the first iteration of this industry-specific Magic Quadrant.

In the manufacturing EAM space, ability to execute is primarily a combination of factors driven by product functionality, global strength and the ability to serve the component solution market.

In the manufacturing EAM space, completeness of vision is primarily a combination of focus on the EAM segment, an appropriate go-to-market strategy and a focus on innovation in EAM functionality.

Leaders in this market have a global presence, a large installed base in manufacturing, strong viability, and a combination of rich features that include functionality, interfaces to many different ERP (and supporting EAM) applications, and a capable and global implementation partner community. IBM Maximo Asset Management and Infor EAM Enterprise remain the leaders in the component solution EAM space as we shift to an industry-focused view. Although they have clients outside of the manufacturing space, they remain the two vendors that should be on any manufacturer's shortlist of EAM applications for evaluation.

Lawson Software is the only challenger in the EAM for manufacturing Magic Quadrant. Lawson exhibits the classic characteristics of a challenger: It has good execution, but lacks a focus on component EAM that restricts its desirability as a stand-alone application.

Avantis is the only visionary in the EAM for manufacturing Magic Quadrant. Invensys exhibits classic visionary characteristics: It has a strong focus on EAM and good functionality, and it is affordable and scalable for many manufacturers. However, being embedded within a process-automation-focused company such as Invensys, the Avantis product is not receiving the visibility required to drive market execution toward the Leaders quadrant.

The Niche Players quadrant contains two classes of vendors:

• Those offering component EAM as a stand-alone application (AssetPoint and Mainsaver)
• Those offering EAM as part of a suite that — although technically capable of being used in conjunction with a different application suite — in reality is never implemented that way (Oracle [E-Business Suite eAM and JD Edwards EnterpriseOne] and SAP).

In the latter case, being usable (for all practical purposes) only within the larger ERP suite, along with the cost associated with that, limits desirability and impacts both execution and vision. In the first case, the component solution suppliers are classed as niche players because of one or more of several factors, including:

• Narrow platform support
• Scalability issues
• Lack of global presence
• Inability to assess long-term viability due to nontransparent financials
• A small presence in manufacturing in that model — although capable of being implemented as a stand-alone EAM application, as in the case of IFS

• The vendor offers an application service provider (ASP) model or a self-hosted model (approximately 45% of customers).
• Price points make it attractive for small or midsize businesses (SMBs), but it is usable for large, global implementations as well.
• Functionality is suitable for large manufacturing companies, yet scalable to SMB needs.
• It has continuously invested in functionality enhancements.

• The offering was developed on a Microsoft platform (which may be a strength to some buyers), but supports Oracle database.
• It is primarily a North America-centric company, but has a global presence, especially among multinational companies.
• It is privately held, so viability is more difficult to assess, although there are no readily apparent issues.

• Under IBM ownership, Maximo Asset Management (an MRO software) has extremely high viability.
• A global sales and implementation resource (IBM Global Services) makes the solution widely available.
• Combined with Tivoli software, IBM Maximo Asset Management offers the capability of managing IT-enabled assets with the same solution that is used to manage traditional EAM assets.
• It has high customer satisfaction within the manufacturing sector.
• It is scalable to very large manufacturing organizations.
• It supports integration with a wide variety of ERP suites.
• It has versatility across multiple platforms.

• Because it is now a part of IBM, contracts and negotiations may be converted to standard IBM, and some previously demonstrated flexibility may not be available.
• It is one of the most expensive products on the market (but has very high functionality).
• The vendor's seeking of multiple markets may compromise future innovation.

• The solution can be implemented as part of an ERP suite or as a stand-alone EAM.
• Componentized service-oriented architecture (SOA) gives high flexibility.
• It has innovative and rich maintenance functionality (however, this may impact deployment times to achieve maximum functionality).
• It has good customer references for customer satisfaction.

• The vendor predominantly targets process manufacturing in Scandinavia and Eastern Europe.
• It supports only Oracle Database.
• It is not widely deployed in manufacturing outside of Europe, the Middle East and Africa (EMEA).
• Although recently improved, its financial position is not as strong as the other suite solution competitors evaluated in this research.
• Available resources must be examined closely prior to project commencement.

• The vendor has global presence and support availability.
• It has a large installed base in manufacturing and satisfactory customer references.
• It offers moderate pricing and is affordable for midsize manufacturers.
• It has the ability to integrate with a large number of ERP suite solutions.

• As one of many applications in the Infor portfolio, it competes for resources and visibility internally.
• Recent reorganization around geographic business units, instead of product business units, could negatively impact its EAM focus in some regions.

• The vendor has a large installed base in manufacturing.
• Its implementation methodology is well-regarded and efficient.
• It has good, native business intelligence.
• It offers linkages to automation and support of reliability-centered maintenance (RCM) functionality.
• It has global sales and support presence from Invensys.
• It has versatility across multiple platforms.

• EAM is not central to Invensys' product portfolio.
• Pricing is at the upper end of affordability for midsize manufacturers.
• It has fewer resources internally for development.
• Its user interface and platform focus are Microsoft-centric (which will be a strength for some clients).

• The merger of Intentia (and its Movex product now called M3) with Lawson increases viability and offers the opportunity for a more balanced global presence.
• Product scalability makes it suitable for larger manufacturing organizations.
• It can be implemented as a stand-alone EAM application or as part of an ERP suite implementation.
• Functionality meets or exceeds most manufacturing-company requirements.

• The focus on EAM within a larger ERP context is smaller than some competitors.
• Its EAM presence is EMEA-centric.

• The vendor has a large manufacturing installed base.
• Its component EAM application offers open integration with multiple ERP suites.
• It is affordable, with a high functionality-to-cost ratio.
• It has high customer satisfaction with good references.

• Implementation outside the U.S. is exclusively via channel partners.
• It offers a Microsoft-only platform option.
• It is a privately held, small company with more limited resources for development.

• Oracle's E-Business Suite's eAM functionality approaches parity with the best component solution applications after Release 12.
• It has good customer references.
• It offers good usability.
• It offers strong project management functionality.
• The Oracle eAM application should be on the shortlist of any evaluation of EAM solutions for Oracle E-Business Suite customers.

• Oracle eAM has not been integrated with other ERP solutions as a component solution and is not marketed as such. For non-Oracle customers looking for an EAM solution, Oracle is not a practical candidate.
• It offers only Oracle Database support.
• Engagement from large system integrators is limited, but a community of boutique providers exists.

• Oracle's JD Edwards EnterpriseOne EAM functionality meets or exceeds most manufacturing-company requirements.
• It has good customer references.
• Its midmarket pricing is suitable for SMBs and larger manufacturing clients.
• Global distribution and support are part of Oracle.

• It is not implemented outside of the full-suite model, so it is viable only for JD Edwards EnterpriseOne ERP customers.
• Significant EAM-specific product functionality investment is minimal (however, new supplemental products, such as condition-based maintenance, equipment cost analysis and resource assignments/crew scheduling, are now available). As part of an "Applications Unlimited" path, some investments will continue to be made.

• The vendor is augmented by a growing ecosystem of complementary EAM extension solution providers, so the total offering has high functionality.
• It has satisfactory references.
• It has the majority of the EAM functionality that most manufacturers would require.
• It has a well-developed partner program to fill functional gaps.
• When integrated with the SAP ERP suite (now referred to as ERP 6.0), the combined solution provides a single view into all aspects of work and asset management — from HR to material management.
• It offers the potential to leverage the SAP supply chain management (SCM) for material planning.
• The program of enhancement packages (currently at No. 2) will provide progressive functional improvements.
• Recent improvements in warranty management, clearance control and configuration management are derived from other industry solutions.
• It offers versatility across multiple platforms.
• SAP EAM should be on the evaluation list of any SAP ERP customer.

• SAP's EAM application, although theoretically capable of being implemented as a stand-alone component solution, requires extensive implementation of other components of SAP's suite solution. Thus, for all practical purposes, it is always marketed, sold and implemented in conjunction with a full SAP ERP deployment.
• SAP EAM has not been integrated with other ERP solutions as a component solution and is not marketed as such. For non-SAP customers looking for an EAM solution, SAP is not a practical candidate.
• Broadly defined, future enhancements are expected to alleviate the problem of conflicts with certain industry-specific options, but with no further future release (other than enhancement packs) announced, the resolution remains ill-defined. Greatest functionality is achieved with the Discrete Industries/Mill Products version, which is not capable of being simultaneously implemented with the Oil or Mining versions (because of switchframe compatibility and dependency issues).
• Some functionality such as improved user interface or visual parts selection is available only as an xApp, which requires additional investment and SAP NetWeaver to get the maximum benefit.