CIO Forum: Change management seen as key to asset management analytics success

Insights from the inside: CIOs weigh in

To understand the state of analytics in transportation, DXC Technology recently conducted a CIO Forum: a series of one-on-one discussions and roundtable sessions with leading freight, rail and logistics chief information officers (CIOs) from around the globe.

Executives suggested that predictive analytics are important areas of focus for driving more profitable, efficient operations throughout the entire logistics and transportation footprint. For example, by leveraging the internet of things (IoT), sensors and related edge devices, organizations can anticipate shutdowns, determine fuel considerations and forecast ridership.

CIOs are seeking to expand into using artificial intelligence (AI), robotics, and autonomous technology in vehicles, machines and equipment. However, moving to that next level is not easy. Migrating to a predictive maintenance model often requires a shift in resources, updates of legacy applications, new governance requirements and a significant change management process.

The most pressing issues in bolstering asset management through analytics arise with corporate culture and talent. Some associates in the organization may simply be reluctant to learn new business processes or share information. Whether it’s an aging IT workforce averse to shifting digital priorities, or department leaders who don’t want to give up control of their segmented database, the human component of adopting new analytics strategies is especially challenging.

Roundtable participants also noted the difficulty of securing rights to data from third-party vendors. One CIO cited a trend of legacy proprietary system providers protecting their data sources as a means of protecting themselves from digital disruption. Without a centralized version of the truth, however, companies and their partners find it difficult to stay ahead of maintenance problems.

Get buy-in for analytics success

Historically, organizations have focused on technical challenges associated with asset management, while neglecting the strategic role of technical and engineering employees. These employees are among those who ensure assets are properly maintained, and as such, they are vital to these assets’ longevity and sustainability.

Securing buy-in and alignment from front-line staff and management is essential for implementing and deriving value from analytics-based asset management. Transparency and two-way dialogue are key. CIOs believe that building an analytics fact-based culture is crucial for success in the age of analytics — but what does this entail?

• Build a proactive engagement culture. Getting the most out of analytics requires instilling a culture of being proactive rather than reactive — one in which people place a strong emphasis on turning information into actionable insights. Managers are encouraged to take ownership, be responsible, build relationships with their support teams and establish a cadence of engagement. When allocating resources and assigning tasks for new projects, managers should be sure to consider the teams’ work preferences.
• Establish specific key performance indicators (KPIs). Our CIO Forum members agree it is essential to establish KPIs, but also to resist establishing too many. Members cited three to five KPIs as the suggested range. Getting people to focus on a small number of goals is much easier than trying to have them grasp pages and pages of data.
  One member stated that while the IoT is great, it does generate massive data that is difficult to manage. Another executive warned against getting stuck in analysis paralysis.
• Develop focused campaigns for specific messages. CIOs believe organizations need to overcommunicate, but each communication should be kept short and purposeful to be powerful, such as informing people what is important for them to know and do. Examples of a steady diet of communication include newsletters, presentations and meetings, but not so many that people feel inundated with information. It’s better to incorporate opportunities for two-way dialogue and involve all employees in sharing information, solving problems and making suggestions.
• Focus on maintaining fresh skills. CIOs stress the importance of talent reinvention. Building a culture that supports the age of analytics requires employees to understand what’s possible. Realizing the relevance of AI/machine learning, as well as context-setting intelligence such as competitive intelligence, is crucial for staying on top of technical roles.
  Whether upskilling through specialized recruiting or redeveloping training programs for in-place employees, leaders should know that there’s no one-size-fits-all approach. Whenever possible, experiences should be tailored to the audience. For instance, millennials may favor online training, whereas older employees may prefer learning in a conference room alongside peers. Additionally, existing staff can and should be leveraged for ideas about developing business and technology acumen across the entire organization.
• Establish governance and assign accountability. Forum participants noted that setting up steering committees is helpful. One executive described a program in which each group has someone designated as a process champion, which naturally allows for people to take ownership of changes in their area, and then provides an organizational structure that knits the various areas together.
• Show successes. To generate buy-in at all levels, IT leaders need to provide success stories that demonstrate business benefits all stakeholders can relate to. This means documenting cases where analytics provided significant gains in the area of asset management and provided improved asset visibility (see “CIO Perspectives: Analytics case studies” below for examples). Once achievements are identified, celebrate across the workplace!

CIO Perspectives: Analytics case studies

• A freight shipping company used internet of things (IoT) sensors to track the mileage, fuel consumption and driving habits of its truck fleet. With the help of a data startup, the organization has been able to use analytics to identify trends, which they then use to optimize scheduling, driver training and route planning. This information has not only helped increase driver efficiency, but has also helped the organization create a stronger maintenance program.
• By measuring utilization information gleaned from edge devices, a United Kingdom-based railway maintenance team focuses on the parts of the rail network that are most heavily traveled. The team also uses analytics to determine which times are best for maintenance crews to do their work.
• Tracking power consumption enables a leading railway to keep tabs on how much electricity it uses, where it can save on electricity and whether the power companies are billing it fairly, which in turn enables the railway re-charge operating companies for actual usage consumed by locomotives. It also helps the railway quickly pinpoint outages, so workaround strategies can be developed, minimizing disruptions and improving on-time performance.

Get on the road to asset management success

To become more proactive and less reactive, more customer-centric and less technically focused, more successful in terms of asset management performance and less driven by cost management, it’s necessary to change organizational culture. It is important to remember that cultural change cannot be mandated, but rather has to be approached with a long-term focus. Short-term tactics are not sustainable when applied to changes in human behavior.

In the rail, freight and logistics industry, companies need to stay ahead of maintenance problems and optimize operations, and the best way to do that is through using data to gain better insights. The benefits of systemizing asset management include ensuring quality, safety and efficiency, as well as having more confidence in budget projections and reporting procedures. By recognizing the key challenges facing organizations today and implementing solutions to tackle those challenges, organizations can go a long way toward achieving asset management success.

Read our industry perspective paper How mass transit can digitize enterprise asset management, and contact us to learn more about how you can get on the road to asset management success.