Gartner MQ on EAM for Delivery Utilities

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Magic Quadrant for Delivery Utility EnterpriseAsset ManagementPublished: 18 September 2013

Analyst(s): Kristian Steenstrup

Utilities responsible for the delivery of services via pipes or wires aresearching for EAM software solutions for plant and equipment maintenance.Here, we analyze best-of-breed (point solution) and suite-based softwareproducts that solve asset management problems.

Market Definition/DescriptionGartner bases the concept of a Magic Quadrant on a customer-oriented market analysis. Consistentwith the approach espoused by business author Geoffrey Moore, a market is "a set of actual orpotential customers for a given set of products or services who have a common set of needs orwants, and who reference each other when making a decision."

Enterprise asset management (EAM) consists of asset register, work order management, andinventory and procurement functions in an integrated business software package. Supply chain isincluded in EAM, but may be more limited than some companies need, leading to specializedsupply chain and parts planning being added to the solution. Additionally, EAM provides a platformfor business intelligence applications that focus on asset management decision support, and forapplications that minimize the cost of support and the risk of failure.

An EAM solution (see the Context section below) includes work order creation; plannedmaintenance history; maintenance, repair and operations (MRO) inventory and procurement; andequipment, component and asset tracking for hierarchical assemblies of equipment. In its mostevolved form, the functionality is extended by the addition of basic financial management modules,such as accounts payable, cost recording in ledgers, and HR management for rostering and skillsrecording.

EAM applications are designed to scale to larger numbers of users (typically more than 100concurrent users) and to run on multiple sites from a single central database — thereby catering towhole-of-business requirements, rather than departmental or site requirements.

Buyers often refer to the majority of the EAM market as the best-of-breed (BOB) or point solutionmarket for EAM. Buyers usually evaluate products from multiple vendors and look for pointsolutions rather than suites (on a ratio of approximately 2-to-1, based on an annual Gartner analysisof license fee expenditures), so the ability to sell the EAM module by itself is an important criterion

for a successful vendor, corresponding to the market seeking specialized and flexible solutions. Theadvantage of point solutions may progressively change, and we have seen some movement on thisin the past year as ERP vendors develop further functionality and aggressively market to theircustomer base. Clients already invested in an ERP suite would be wise to review the EAMcapabilities offered by the ERP vendor suite (see "Q&A: What ERP Is and What the AssociatedTerms Really Mean" [Note: This document has been archived; some of its content may not reflectcurrent conditions]).

What the Market Does Not Include

The market does not include IT asset management (see "Agenda Overview for IT AssetManagement and Procurement, 2013"), facilities workplace management (that is, an integratedworkplace management system — see "Magic Quadrant for Integrated Workplace ManagementSystems") or financial asset management (see "IT Market Clock for Financial ManagementApplications, 2013"), which are separate software markets covered elsewhere by Gartner. Inaddition, the market does not encompass the service parts planning market, which is related toEAM because it supports the provisioning of spare parts for a repair environment (see "SupplyChain Transformation: The Service Life Cycle Management Maturity Model"). Clients shouldseparately consider coverage of these topics, particularly financial asset management, to plan andmanage the depreciation of — and investment return from — physical assets over time.

Magic QuadrantPositioning on this Magic Quadrant reflects Gartner's assessment of the market. It focuses on thesolutions available, includes the point solution and suite offerings, and takes into considerationfunctionality, customer experience, and the fit to purpose. This assessment focuses on the vendorsproviding applications that are used to manage work associated with transmission (for example,electric transmission lines/substations and gas pipelines) and distribution (for example, electricwires, gas pipes and water pipes). It also covers various work types, including construction (capital),inspections, operations and maintenance, and service orders.

Clients should bear in mind that the market for EAM products is very broad and populated withhundreds of vendors. Gartner has reviewed what we consider to be the most relevant products forthe clients operating in this market segment. All vendors listed are active and successful in thismarket, and are considered top echelon. In essence, this Magic Quadrant represents the top-rightcorner of a much larger "virtual" Magic Quadrant of vendors that are not considered herein (seeFigure 1).

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Figure 1. Magic Quadrant for Delivery Utility Enterprise Asset Management

Source: Gartner (September 2013)

Vendor Strengths and Cautions

CGI-Logica

Logica is now owned by CGI of Canada. Logica's EAM product, the Asset and ResourceManagement (ARM) Suite, is the result of combining functionality from prior products, the Work

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Management Information System (WMIS) and Storms. ARM is more oriented to work managementthan asset management.

Strengths

■ CGI-Logica specializes in the transmission and distribution (T&D) subsector, and has goodclient and market understanding.

■ Its vision for future products is consistent with industry needs, and it retains essential productfunctionality for work management.

■ It has large, global, in-house implementation resources. Combined with CGI, Logica has thepotential to leverage CGI's mobile workforce applications (for example, PragmaCAD), inaddition to its own capable mobile workforce scheduling features.

■ It has ready-made integration with multiple ERP vendors and runs on multiple platforms.

■ It has a good industry fit through its user interface and product terminology.

■ Product investment is evident with the release of ARM Performance Manager (BusinessAnalytics Solution) and ARM Data Manager, and with the increase in dedicated staff resources.

■ It may be cost-attractive to some, since EAM modules are based on the number of utilitycustomer accounts (instead of number of users), and CGI-Logica charges relatively lowermaintenance fees.

Cautions

■ Although not required by all clients, there is no procurement and inventory functionality, andonly limited asset maintenance functionality (asset maintenance is an area of continuinginvestment).

■ At its core, CGI-Logica is a system integrator and consulting company (with some softwareproducts), not a software product company.

■ By doing its own implementations, there are limited implementer options.

■ It has a U.S.-centric customer base and sales, resulting in few experienced resourceselsewhere.

■ ARM (the EAM/work management product) is not prominent in CGI-Logica's marketing.

■ Overlap with CGI's mobile workforce products gives more options, but creates uncertaintyregarding future plans.

■ There are limited, but growing, ARM-experienced resources outside North America.

■ List prices make ARM appear to be expensive to license, compared with the average of vendorslisted here; however, there are frequent reports of significant discounting. ARM is only availableon the Oracle Database.


IBM

IBM, with its Maximo Asset Management product, continues to have a strong EAM presence in theutility industry. Since its beginnings at PSDI, through its time at MRO Software and continuing afterits acquisition by IBM, the Maximo product has been developed to cater to EAM needs acrossmultiple industries on multiple platforms. Although it is positioned in the Cloud & SmarterInfrastructure group (formerly Tivoli) within IBM, the team is largely left to determine its own futureand leverage IBM products where relevant.

Strengths

■ Maximo has a low-risk future because of IBM's financial stability.

■ Global support and diverse implementation resources make the solution widely available.

■ Combined with other software from the Cloud & Smarter Infrastructure group, IBM Maximo isable to manage operational technology (OT) software assets with the same solution that is usedto manage physical plant assets.

■ High R&D investments in EAM product and the leveraging of IBM's research capabilities allowfor advanced maintenance functionality, such as reliability analytics (based on ILOG, SPSS andCognos) and mobility based on IBM Worklight.

■ Maximo supports integration with a wide variety of ERP suites and OT systems, and it hasversatility across multiple OS and database platforms.

■ There is an optional extension for Linear Asset Manager and strong native integration with EsriArcGIS.

■ A real-time asset locator and Health, Safety and Environment additions can be useful for someclients.

■ Clients report a high degree of product satisfaction and good relations with the vendor.

Cautions

■ A specialized version is required for T&D operations — at an additional cost.

■ Maximo is relatively expensive to license, compared with the average of the vendors listedherein.

■ Syclo, which has been IBM's preferred mobile application portfolio, continues to be an IBMpartner. However, it has been acquired by competitor SAP, thereby raising partnership risks forIBM.

■ Native Maximo mobile capability lags behind the functionality of specialist vendors.


IFS

IFS, which is from Sweden, is an ERP vendor that is able to separately deliver the EAM module as apoint solution. It has had expanded sales in new geographies; however, there are still no utility salesin the U.S. Its modular, flexible architecture continues to be an advantage for deployment options,and functionality has been extended for construction processes.

Strengths

■ IFS's solution can be implemented as part of its ERP suite, or as a point solution for EAM.

■ Its componentized service-oriented architecture provides a high degree of flexibility, and ishighly scalable so sequenced implementation projects can be managed better.

■ The solution has innovative and rich maintenance functionality, including constructionprocesses, workforce scheduling and fleet maintenance functionality (for vehicles andnonvehicle fleet assets, like transformers or substations).

■ IFS supports multiple OS platforms.

■ It offers very competitive pricing and charges relatively low maintenance fees.

■ It has improved financial performance.

■ A partnership between IFS and Intergraph (owned by Hexagon, also from Sweden) to enhance360 Scheduling is beneficial to clients for visual support of workforce optimization, schedulingand routing.

■ Significant development efforts mean that linear asset management, meter reading, compatibleunit estimating and Esri integration are available now to early adopters (and generally availablebefore the end of the year).

■ There is an optional RCM Toolkit.

■ An expanded partnership network (including BT, CGI-Logica, Infosys and Tech Mahindra) givesmore delivery capability.

Cautions

■ It is not widely deployed in delivery/network utilities (although there is increasing functionalityand sales in this area).

■ The existing customer base is heavily weighted toward EMEA.

■ IFS supports only Oracle Database.

■ Available resources need to be examined closely prior to project commencement in regionswhere IFS has not had significant industry sales. There are an increasing number of systemintegrator partnerships, but their relevant experience needs to be evaluated.

■ In our survey of users, the average response ranked IFS lower on the question, "How good isthe vendor to deal with?"


Infor (EAM)

This product, formerly known as Datastream 7i, had been focused mainly on manufacturing.

Infor has increased its EAM product focus and closed new business with utility companies (powerand water), underlining the market overlap with Infor Public Sector. A significant amount of work hasbeen done to improve product functionality and expand delivery capability.

Strengths

■ Infor has far more experience than most vendors in delivering EAM as software as a service.

■ It has broad functionality covering the major EAM functions within a utility-specific version.

■ Infor is capable of supporting a broad mix of assets (for example, linear, hierarchical, andcapabilities for fleet maintenance functionality for vehicles and nonvehicle fleet assets, liketransformers or substations).

■ In-house capabilities include an integration platform and tools (for example, Intelligent OpenNetwork [ION] and Databridge); also, it has a wide choice of platforms.

■ Based on survey results, it has a higher degree of product and vendor satisfaction than itscompetitors do.

Cautions

■ Infor EAM is focused on distribution utilities, water and city infrastructure — resulting inoverlaps with Infor Public Sector.

■ There is no inherent lockout/tag-out functionality, which many other EAM vendors provide.

■ It has fewer implementation partners than many other EAM products, although it is growing itslist of system integration partners.

Infor (Public Sector)

Infor Public Sector (originally acquired from Hansen) is focused on a client type (the public sector,particularly water authorities), rather than a functional process. This creates a broader solution, butoverlaps in some functionality with its sibling product, Infor EAM. The relative positioning in thismultisector Magic Quadrant obfuscates the value this product will have for water utilities(particularly in the public sector) in English-speaking markets.

Strengths

■ Infor's product has a strong focus on the public sector — particularly on water utilities.

■ Its product includes related functionality that extends beyond EAM and is suited to a mixedinfrastructure environment (for example, pipes, roads, facilities and parks), including permittingand billing.


■ Users have the ability to reflect pipe network connections, as well as linear, area, point andother asset types.

■ Infor has native GIS integration and a mobile workforce capability.

■ The product is certified by the Pipeline Assessment and Certification Program/LateralAssessment and Certification Program (PACP/LACP), and participates in a number of waterindustry groups.

■ The product has embedded Asset Management Tools and risk management tools, includingLife Cycle Analysis and financial modeling.

Cautions

■ Infor Public Sector has functional overlap with Infor EAM, but it is stronger in some geographies(for example, Australia and New Zealand).

■ This is not a globally delivered solution, although there is a substantial presence in NorthAmerica and Australia/New Zealand. Despite attempts to grow a presence in the U.K., SouthAfrica and South America, this still has not been achieved.

■ The solution is not focused on electric power or gas.

■ It has fewer implementation partners than many other EAM products, although it is growing itslist of system integration partners.

Invensys

Invensys Avantis is more adept than other EAM products at the integration of IT and OTrequirements because of its Invensys family "DNA." However, for delivery utilities, it loses pace withmarket demands because of the absence of compatible unit estimating. It has a Microsoft-centricuser interface and platform focus, which can be strengths for some clients, but might be seen aslimiting if this is not your technology platform of choice. (Invensys' impending acquisition bySchneider Electric has not been factored in because the transaction was not completed at the timeof publication.)

Strengths

■ Avantis has a well-regarded and efficient implementation methodology with a "wizard" tool.

■ It includes useful native business intelligence.

■ It has a broader asset strategy of OT system links than its competitors do, as well as supportfor condition-based, predictive and reliability-centered maintenance functionality.

■ Invensys has a global sales and support presence.

■ It has an in-house optional mobile workforce solution through the acquisition of SAT'sIntelaTrac product.


■ Based on survey results, there is good product functionality satisfaction, and the company isseen as one that is good to deal with.

■ Invensys offers Avantis.DSS (decision support solution), which complements Avantis.Pro toprovide a reliability analysis capability that is similar to asset performance management (APM).

■ Invensys has relatively low maintenance fees, and has continued a steady sales rate.

■ There is a capital construction capability to budget and plan construction, not just repairs andrefurbishment.

Cautions

■ EAM and business applications are not central to the Invensys OT product portfolio (which isprimarily around process automation), so Avantis is not as highly prioritized.

■ Invensys' future under Schneider Electric is unknown because the (potential) new owner doesnot have many business applications in its portfolio.

■ Invensys has fewer resources (internally) for development than other more focused EAMproviders.

■ The Avantis product is more focused on manufacturing and generation than on distribution.

■ The EAM product's pricing is at the upper end of affordability for midsize companies.

Oracle (E-Business Suite)

Oracle E-Business Suite continues a steady progression of functional improvements, and isapproaching a complete EAM/ERP suite solution for delivery utilities. There is a growing globalutility customer base. Existing clients of Oracle E-Business Suite should look first at the Oracle eAMmodule and benchmark any point solution alternative against it. The advantages of built-inintegration may outweigh functional shortfalls.

Strengths

■ Oracle E-Business Suite's eAM functionality is approaching parity with specialist EAM solutionsafter release 12, and should be on Oracle E-Business Suite customers' shortlists in anyevaluation of EAM solutions.

■ We are seeing a growing, global list of clients and system integration partners.

■ Oracle has good usability, and the product has an increasing amount of distribution utilityfunctionality.

■ There is strong project management functionality natively and with Oracle Primavera P6integration, giving a capability to budget and plan construction as opposed to repairs andrefurbishment.

■ Oracle includes compatible unit estimating and GIS integration.


■ It has a global presence and very strong financial stability.

■ It has growing sales in Europe, not just the U.S., including power generation and T&D sales.

■ Oracle is leveraging Endeca (a technology platform to process, store, manage, search, andanalyze structured and unstructured information) for faster internal search capabilities, and toprovide integrated analytics EAM and inventory analysis.

Cautions

■ Oracle eAM has not been integrated with ERP solutions (other than E-Business Suite) as a pointsolution, and is not marketed as such. For non-Oracle customers looking for an EAM solution,Oracle eAM is not a practical candidate.

■ Only Oracle Database support is provided.

■ Oracle has OT integration capabilities for eAM, but a limited track record of being integratedwith OT systems.

■ There is no clear mobile workforce solution (Oracle Utilities Mobile Workforce Management isnot the default mobility option), nor is there linear asset management or lockout/tag-out.

■ Oracle also has a different point solution, Utilities Work and Asset Management (WAM),positioned for non-E-Business Suite users. Thus, Oracle's efforts are diluted by supportingmultiple solutions for one market segment.

■ It is unclear how the eAM module will be positioned with future Oracle Cloud Applications(Fusion).

■ Oracle chose not to provide Gartner with reference clients. In prior Gartner surveys andinterviews, product satisfaction and dealings with Oracle were below average for EAM vendors.

Oracle (Utilities Work and Asset Management)

Oracle WAM, formerly Synergen, is an EAM point solution brought in through the acquisition of SPLWorldGroup (which itself had acquired the Synergen product). This product is Oracle's EAMcomponent option when E-Business Suite is not being sold. Oracle has taken steps to use thebroader family of Oracle technologies in WAM, and to extend the capability from basic EAM toinclude device and network management. The perception of being focused on small, local utilitiesmakes larger deals difficult to come by.

Strengths

■ Oracle WAM is well-suited to municipalities and water utilities.

■ Oracle has a global presence and very strong financial stability.

■ Oracle is competitive with EAM leaders in situations where a municipality is looking for lowercost and complexity.


■ Open integration with multiple ERP suites and integration with other Oracle applications (suchas Primavera P6) are being progressively delivered.

■ The integration with network visualization and network management tools gives a much broadersolution footprint than competitors do.

■ There are in-house options for mobile and dispatch solutions, and Oracle WAM is able tomanage OT software assets with the same solution that is used to manage physical plantassets (Operational Device Management).

Cautions

■ Oracle WAM's long heritage as Synergen — acquired first by SPL WorldGroup and then byOracle — has resulted in product overlap within the Oracle E-Business Suite. Thus, Oracle'sefforts are diluted by supporting multiple solutions for one market segment.

■ Oracle WAM is available only on the Oracle Database.

■ The countries and regions in which Oracle has qualified WAM staff and established clients arestill limited, but include North America, Europe and a growing Asia/Pacific presence.

■ Oracle WAM has limited capabilities for fleet management.

■ Based on customer surveys, clients ranked Oracle WAM lower than competitors in thequestions, "Has the vendor's EAM software worked reliably and bug free?" and "How good isthe vendor at fixing problems?"

SAP

SAP Business Suite 7 (previously referred to as ERP Central Component [ECC] 6) has continued toaddress functionality shortfalls. Through progressive SAP enhancement package releases sinceSAP Business Suite 7, functionality is no longer a liability. SAP ERP users should benchmark anypoint solution offering against the latest evolution of the SAP EAM solution.

Strengths

■ SAP has the most EAM functionality that the majority of utilities would require (the exceptionsbeing around MRO materials management and reliability-centered maintenance [RCM]capability).

■ It has enhanced key performance indicators and analytics for assets, which will also form partof the new Rapid Deployment solutions.

■ It has a well-developed partner program to fill functional gaps, and it is available on a widechoice of platforms and databases.

■ As a combined solution, SAP Business Suite 7 provides a single view into all aspects of workand asset management — from HR to materials management, and from plan/design/constructthrough decommissioning.


■ The program of enhancement package releases has provided progressive functionalimprovements with fewer disruptions than a traditional upgrade.

■ Clients are using SAP Manufacturing Integration and Intelligence to do OT data integration. Inaddition, thanks to the Right Hemisphere acquisition, SAP offers multiresource scheduling anda visual support tool for clients to do 3D plant modeling of assets.

■ The SAP for Utilities (IS-U) package extension provides further utility-specific functionality, suchas meter management.

■ SAP has developed productized, supported GIS integration with a number of GIS vendors,including Esri.

■ It has good fleet support functionality (for vehicles and nonvehicle fleet assets, like transformersor substations).

■ SAP has followed up on its acquisitions of Syclo and Sybase by renewing efforts to build out itsown mobile workforce applications.

Cautions

■ SAP's EAM application, although theoretically capable of being implemented as a stand-aloneapplication, requires extensive implementation of other components of SAP's suite solution,such as materials management, financial and HR. Thus, for all practical purposes, it is alwaysmarketed, sold and implemented in the context of a full SAP ERP deployment. For non-SAPcustomers looking for an EAM solution, SAP is not a practical candidate.

■ Clients must check to see whether their users need an improved user interface and a visualparts selection (which require additional software products, such as Personas and NetWeaver).

■ SAP is midway through the integration of Syclo within the SAP Mobile Platform (SMP) (whichshould be complete by the end of 2013). Continuing with alternative partners could create someconfusion. SAP supports a number of choices for mobile app development within SMP,including jQuery Mobile, Dojo, SAPUI5 (its new HTML5/JavaScript framework) and Syclo'sAgentry, as well as partners Sencha and Appcelerator. Furthermore, SAP has released Fiori (asuite of lightweight apps for desktop and mobile Web use) based on SAPUI5 and NetWeaverGateway. Fiori does not require — and currently cannot leverage — SMP. While offering a highdegree of choice, this broad range of technologies raises questions about the degree of supportfor a given approach, as well as the future direction for SAP mobile apps in general.

■ Inventory and procurement designed around manufacturing and reseller needs sometime fallshort of MRO functional requirements.

■ Buyer objections continue concerning pricing and the negative sentiment toward the userinterface (the NetWeaver Business Client and Personas show promise, but buyer reaction is notyet clear). These can be mitigated by a number of additions and overlays.

■ Users report relatively low usability satisfaction.


Ventyx (Asset Suite)

Asset Suite (and its predecessors, Indus Passport and TSW Empac) from Ventyx, an ABB company,has been focused almost exclusively on the EAM market for utilities. Since ABB's acquisition ofVentyx and Mincom (and the EAM product Ellipse), ABB has reinforced Ventyx's commitment to theutilities industry. Continued investment should result in the closer alignment of these EAM productsin the future. In the meantime, Asset Suite remains better known in the North American market, andlimited resources are available in the Asia/Pacific region.

Strengths

■ Ventyx is a focused utilities specialist with the EAM user interface and functionality to suit theindustry.

■ It has a long history of industry involvement and focus.

■ Clients believe Ventyx delivers good products with a higher degree of product satisfaction thanits competitors do.

■ Ventyx has successfully integrated the FocalPoint product from the Obvient acquisition tocreate a new asset health center product. Ventyx also offers Service Suite (based on the formerMDSI product) as a complementary mobile workforce solution. There is increasing OTintegration supporting analytics and repair planning based on equipment condition andperformance data.

Cautions

■ Ventyx is missing some key distribution functionality, such as linear asset management.

■ Resourcing projects in its noncore regions, such as Asia/Pacific and Africa, will be challengingfor Ventyx.

■ Efforts are diluted by supporting multiple solutions for one market segment.

■ Ventyx has experienced a low number of recent sales in the distribution sector.

■ Ventyx is not as responsive to software faults as clients would like, and it can be difficult to dealwith.

Ventyx (Ellipse)

Mincom was acquired by ABB (its product is now known as Ventyx Ellipse) and reports into theVentyx U.S. division, thereby resolving many of the financial challenges. Ventyx offers Ellipse aseither an ERP suite or an EAM point solution, while Ventyx Asset Suite is just EAM. ABB developsand markets the two EAM products with similar functionality in many areas — although, functionally,Ellipse is stronger in delivery utilities. Historically, they have had different geographic emphases,and this is how Ventyx is choosing which product to propose in new deals.


Strengths

■ The Ellipse solution is flexibly deployed as a point solution or an ERP suite.

■ ABB ownership means financial stability after successive years of poor financial performance byMincom.

■ Ellipse has a strong utility record in its home country of Australia.

■ Historically, this product focused on asset-centric industries, such as utilities and mining.

■ It is capable of supporting fleet functionality (for vehicles and nonvehicle fleet assets, liketransformers or substations) and linear assets.

■ It is available across multiple platforms and databases, and is highly scalable.

■ There has been good progress in upgrading clients to version 8, but slower progress in gainingnew clients.

■ There are signs of leveraging the Ventyx products (such as Service Suite, Shift OperationsManagement System [eSOMS] and Asset Health Center) to work with Ellipse.

Cautions

■ Historically, Ellipse has done well only in Australia, South Africa and the U.K., and had a limitedpresence in North America.

■ There is a relatively sparse choice of resources and partners.

■ It is relatively expensive to license, compared with the average of vendors listed herein.

■ Although its financial position has been resolved, the number of new sales to utilities has beenin decline. Efforts are diluted by supporting multiple solutions for one market segment.

■ Customer references have been below average for the Ellipse product and for dealing with theentity formerly known as Mincom.

Vendors Added and Dropped

We review and adjust our inclusion criteria for Magic Quadrants and MarketScopes as marketschange. As a result of these adjustments, the mix of vendors in any Magic Quadrant orMarketScope may change over time. A vendor's appearance in a Magic Quadrant or MarketScopeone year and not the next does not necessarily indicate that we have changed our opinion of thatvendor. It may be a reflection of a change in the market and, therefore, changed evaluation criteria,or of a change of focus by that vendor.

Added

No vendors have been added.


Dropped

No vendors have been dropped.

Note: We have frequently seen Digital Inspections' Cascade in the market for condition-basedmaintenance in substations, but we do not see it as an overarching EAM solution.

Inclusion and Exclusion CriteriaSoftware products must address the majority of functional capabilities we have listed. Becausethere are more than 300 vendors in the EAM/computerized maintenance management system classof software, and because most of these are too small in company size or product scope to be ofinterest to Gartner clients, we evaluated only the top products worldwide that our clients requestedvia inquiries. These products have demonstrable track records in utilities (that is, a significantportion of their license revenue is from utilities), they have estimated license fee revenue of at least$2 million generated during the past 12 months, and they cover multiple geographies. Oracle andSAP have been included because they are commonplace in utilities and have effective EAMmodules. Although they are rarely implemented as point solutions, they are a significant market inthemselves, so users of these ERP suites should evaluate the EAM modules offered.

We believe that the products assessed in this Magic Quadrant are of the greatest interest to ourclients. The vendors actively sell and market their products in the U.S. and at least one othermarket. However, there may be reasons for other products to be included on an enterprise'sshortlist, such as prior use, price or specific geographic presence. Only products that have beenimplemented and are in production have been evaluated.

Evaluation Criteria

Ability to Execute

For network/delivery utilities seeking EAM software, the Ability to Execute is primarily a combinationof factors driven by product functionality, global strength and the ability to deliver a point solution(or BOB, as it is sometimes known) in the market.

Primary and secondary research was used, including inquiry, client visits and a reference survey.We specifically looked at customer experience in our questions. Customers were asked aboutvendor performance in four areas:

■ Does the software do what it is supposed to do?

■ Is the software reliable and bug-free?

■ How good is the vendor at fixing problems?

■ How satisfied are you with the overall relationship?


Using a numeric scale (from extremely dissatisfied to extremely satisfied), and taking the entire poolof references from all vendors in this process and the concurrent "Magic Quadrant for PowerGeneration Enterprise Asset Management Software" process, an average score of overall customersatisfaction was determined, and then each vendor was ranked according to the scoring ofresponses specific to each vendor versus the average. A separate piece of research is planned todiscuss those results in detail.

Table 1. Ability to Execute Evaluation Criteria

Criteria Weight

Product or Service High

Overall Viability Medium

Sales Execution/Pricing Medium

Market Responsiveness/Record High

Marketing Execution Medium

Customer Experience High

Operations Medium


Completeness of Vision

For distribution utilities seeking EAM software, Completeness of Vision is primarily a combination offocus on the EAM and field service segments, an appropriate go-to-market strategy, and a focus oninnovation in EAM functionality.


Table 2. Completeness of Vision Evaluation Criteria

Evaluation Criteria Weighting

Market Understanding High

Marketing Strategy Medium

Sales Strategy Medium

Offering (Product) Strategy High

Business Model Medium

Vertical/Industry Strategy Medium

Innovation High

Geographic Strategy Medium


Quadrant Descriptions

Leaders

Leaders in this market have a global presence, an installed base in distribution utilities of all kinds,strong viability, and a combination of rich features, including functionality, interfaces with differentERP applications, and a capable and global implementation partner community. IBM, with itsMaximo Asset Management product, continues as the Leader in the point solution EAM space.Although it also has clients outside of utilities, it has a strong presence in the industry.

Challengers

Challengers in this market show good execution, but may lack focus on functional or technologicalinnovations, which restricts their desirability — particularly as stand-alone applications. There are noChallengers in this iteration of the Magic Quadrant.

Visionaries

Ventyx Ellipse is in the Visionaries quadrant, with a view toward integrating OT links because of theABB acquisition and a changed technology approach in the Ellipse 8 release. However, VentyxEllipse has a limited global reach.


Invensys Avantis is also considered a Visionary because of its implementation toolkit, Microsoftcompatibility, inclusion of mobile workforce management, and ability to link to OT systems fromFoxboro, Wonderware and others.

Oracle Utilities WAM is ranked as a Visionary because it interacts with and draws on the resourcesof Oracle. It has a demonstrable vision for closely integrating the monitoring and control ofinfrastructure with traditional EAM features. This will be particularly beneficial in the power sector(including integration with in-house network management and outage management system [OMS]functions), and some aspects will also extend to gas and water utilities.

IFS has moved to the Visionaries quadrant due to many advances in functionality aligning withwhere we see EAM needs emerging.

Niche Players

Vendors are classified as Niche Players because of one or more of the following factors, including:

■ Narrow platform support

■ Lack of global presence

■ Inability to assess long-term viability because of nontransparent or poor financial performance

■ Limited presence in the distribution utilities market

The Niche Players quadrant contains two classes of vendors:

■ Those that offer EAM as a stand-alone point solution application (for example, CGI-Logica, InforEAM, Infor Public Sector and Ventyx Asset Suite)

■ Those that offer EAM as part of a suite (for example, Oracle E-Business Suite and SAP)

Some ERP suites have EAM modules that can't be sold easily as separate products (for example,Oracle and SAP). This limitation of being usable only within the larger ERP suite reduces broaddemand and impacts execution and vision. We have found that two-thirds of implementations are ofan EAM point solution. It is an important buying criterion as clients avoid vendor lock-in and look tohave more limited-scope projects. SAP and Oracle continue to invest in their EAM modules asintegral parts of their ERP suite strategies. In both cases, EAM functionality has improved (forexample, SAP via the use of enhancement package releases, and Oracle by recoding the IP fromOracle Utilities WAM, Oracle JD Edwards EnterpriseOne and Oracle PeopleSoft into the Oracle E-Business Suite) to the point where SAP and Oracle should always be included in EAM evaluations. Ifutilities already have a significant ERP investment in Oracle or SAP, then they should include theirERP vendor in EAM competitive procurement evaluations.

EAM point solution vendors are classed as Niche Players because of one or more of the followingfactors:

■ Narrow platform support

■ Lack of global presence


■ Inability to assess long-term viability because of nontransparent or poor financial performance

■ Limited presence in the power generation market

ContextThis research updates the 2012 "Magic Quadrant for Delivery Utility Enterprise Asset Management,"and provides guidance for companies that are investing in management software for physicalassets and equipment. We evaluate EAM products for power generation in the "Magic Quadrant forPower Generation Enterprise Asset Management Software," with a greater focus on the uniquefeatures and vendor experience in that subsector.

Point solution (aka BOB) EAM products that are suitable for delivery companies (that is, power T&D,water, wastewater and gas) are a specialized area of software. Some suite vendors also activelymarket their EAM modules as point solution offerings and sell them as specialized maintenancesolutions. Other suite vendors offer only EAM modules as part of the ERP suite being marketed;thus, these vendors' EAM market is limited to their own customer bases. In the past, thesedifferences have often been simplistically reduced to the "better functionality" of the point solutionvendors, contrasted with the better integration of a single-vendor ERP. This is no longer such asimple argument, because the EAM investment by ERP vendors has steadily reduced the functionaldifference to the point where functionality is not the main differentiator between suites andspecialized point solution products. Now, we see discussions about the risk of vendor lock-in, thesize of ERP projects versus EAM, and the broad user interface needs of ERP versus the focuseduser interface of EAM. However, the majority of deals are still EAM point solution sales.

The vendors here come from two perspectives. Some have always been focused on the utilitiessector and, over time, have created capabilities to other industries (for example, Infor Public Sector,Oracle Utilities WAM and Ventyx Asset Suite), while others are generalized EAM products that havehad industry-specific additions and adaptations applied over time (for example, IBM Maximo,Oracle E-Business Suite and SAP). It should also be noted that, although this sector has beenestablished for more than 12 years, and has shown steady growth, a large number of acquisitionshave taken place over time. However, this has not reduced the number of offerings in themarketplace. Customer resistance to migrating to another product, coupled with sufficientdifferentiation of functionality, has meant that many vendors (Infor, Oracle and Ventyx) have multipleproducts in this market space. We expect this to continue for the near future, but change over time.

In this sector, clients need to look at their overall application portfolios and plan how their EAMsolutions will interact with other related components, such as GISs, customer information systems(CISs), outage management and mobile work scheduling. As evidenced by our growth forecastsand the inquiries we receive on this topic, many utilities are considering upgrading to or reinvestingin asset management software. Because investments in EAM can address issues with aging assets(by better maintenance), the aging workforce (retention of knowledge in tasks and processes) andnetwork reliability (preventive and predictive maintenance) — resulting in better overall customerservice — regulators are likely to decide favorably on cost recovery for these investments.


Utilities need to make key technology architectural decisions — such as choosing between an EAMpoint solution approach and an ERP suite solution — as part of their EAM selection processes.Based on the relative importance of asset reliability and availability to the overall success of thebusiness, a company should select the vendor that best fits its technical architecture, and offers theoptimal mix of functionality for the company's asset portfolio. Vendors vary widely in scalability andfit to purpose, and a solution that is appropriate for one client may lack key features needed byanother. Long-term vendor viability and product viability are factors in most customer evaluations,and potential buyers should examine current profitability as well as a long-term commitment to EAMand utilities.

Although the scope of this assessment is global, some vendors specialize in geographies — andthey may be small globally, but significant regionally — so do not choose vendors based on sizealone. Because the Magic Quadrant process is, by necessity, an averaging of vendor offerings andperformance, we always recommend that clients consult the author of this report to get specificadvice regarding their needs, location and industry subsector (such as electric, gas or water).

Market OverviewThe market segment considered for this Magic Quadrant is delivery utility companies (that is, powerT&D, water, wastewater and gas) that seek software solutions for the management and support ofinternally owned assets in a geographically distributed environment. Their focus is to keep plant andequipment facilities, as well as linear assets (pipes and wires), available with minimal downtime andat the lowest cost to maximize revenue through reliability.

These systems usually encompass asset management and materials management (for example,inventory and purchasing) functionalities, as well as a work management capability. They alsoinclude mobile workforce capabilities (or at least formal partnerships). Most installations involveintegration with other software products, such as:

■ Native or third-party ERP to support budgeting and financial management

■ Inventory, supply chain management and procurement

■ GISs to support asset management

■ OMSs for network recovery

■ CISs to support customer service

The global EAM market slowed in 2012, with an estimated growth of 2.3% to a market value ofmore than $1.39 billion in total software revenue. Gartner remains cautious, but optimistic, that thismarket will have steady growth.

Vendors with broad offerings — for example, mobile workforce, advanced scheduling, outsourcedservice management, work management (construction/maintenance/service) and supply chainmanagement — will continue to lead this market. The drive to automate the end-to-end businessprocess will force consolidation and extension to other applications (for example, customer service,asset management and mobile workforce management). Utility companies will benefit by having


fewer vendors to manage, and, in the long term, by having access to capabilities for distributedasset and resource optimization.

Gradually, we see application convergence to create an enterprise solution covering the asset lifecycle (that is, design to procure, operate, maintain — the key EAM coverage areas — and retire)and task-supporting functionality (that is, mobile workforce, work and asset management, customerand field service, and business analytics) necessary to achieve resource and asset optimization.Utilities should also plan on developing enterprise architecture and enterprise informationmanagement strategies to enable more advanced asset analysis capabilities, and to prioritize agingasset risks. EAM, GIS and analysis tools with good enterprise architectures will enable utilities toanalyze the multiple perspectives of viewing the assets (see "The Value of Asset Intelligence forUtilities" [Note: This document has been archived; some of its content may not reflect currentconditions] and "Asset Management and Reliability: A Strategic Road Map").

For delivery utilities (aka network companies), the functionality must be capable of distributed assetsupport, with particular importance attached to linear asset structures, remote locations of assets,short-term work, reactive or failure-triggered work, condition and performance monitoring,preventive maintenance, and construction capability for network extensions. Particular emphasis isplaced on the planning and execution processes. More recently, we have seen a rising need tointegrate with OT devices to capture condition and failure data closer to the source, and to trackand manage all the OT devices and systems. This has been particularly accelerated with the needsof the smart grid and new-generation IP addressable supervisory control and data acquisition(SCADA) systems. Typically, we see EAM systems interfaced with the data historian as a proxy forOT integration, and we expect vendors to reflect this growing client need more specifically in thecoming years.

The following are the main functional features expected:

■ A detailed asset registry combined with parts and support descriptions (internal and external)

■ Support for complex inventory relationships for indirect (MRO) goods — that is, thingsconsumed internally that are not assembled and resold — that are associated with theforecasting of planned and unplanned work on installed assets

■ A supply chain capability for indirect goods, with demand planning linked to maintenance andrepair schedules

■ Probability-based, "just in case" MRO-focused inventory and procurement, rather than "just intime" or material requirements planning based on MRP II

■ Support for manufacturer logistics processes for equipment under warranty

■ Human capital management capabilities to match location, skills, training and availability withwork requirements

■ Statistical analyses of equipment performance and reliability

■ Condition-based triggers for asset health and performance (OT integration)


■ Serial number tracking and tracing for equipment and parts

■ Financial support via detailed cost analysis

■ Integration with whatever ERP (financial and HR) GIS and CIS packages are deployed

■ Extensive warranty tracking to component levels, and support for manufacturers' recordsrequirements for equipment under warranty

■ Capital construction planning (based on compatible unit estimating) defining linear assets andgeographic locations (integration with GISs)

■ Long-term maintenance, project and work schedules

■ Short-term maintenance, client requests and failure recovery work schedules

■ Inclusion of, or partnering with, mobile workers and a field service support system

■ Inclusion of fleet maintenance support functionality for vehicles and nonvehicle fleet assets, liketransformers or substations

■ Lockout/tag-out or "permit to work" functions

Recommended ReadingSome documents may not be available as part of your current Gartner subscription.

"How Gartner Evaluates Vendors and Markets in Magic Quadrants and MarketScopes"

"Asset Management and Reliability: A Strategic Road Map"

"Energy and Utility EAM Client Reference Survey, 2012"

"Market Snapshot: ERP Software, Worldwide, 2013"

Evaluation Criteria Definitions

Ability to Execute

Product/Service: Core goods and services offered by the vendor for the definedmarket. This includes current product/service capabilities, quality, feature sets, skillsand so on, whether offered natively or through OEM agreements/partnerships asdefined in the market definition and detailed in the subcriteria.

Overall Viability: Viability includes an assessment of the overall organization's financialhealth, the financial and practical success of the business unit, and the likelihood thatthe individual business unit will continue investing in the product, will continue offeringthe product and will advance the state of the art within the organization's portfolio ofproducts.


Sales Execution/Pricing: The vendor's capabilities in all presales activities and thestructure that supports them. This includes deal management, pricing and negotiation,presales support, and the overall effectiveness of the sales channel.

Market Responsiveness/Record: Ability to respond, change direction, be flexible andachieve competitive success as opportunities develop, competitors act, customerneeds evolve and market dynamics change. This criterion also considers the vendor'shistory of responsiveness.

Marketing Execution: The clarity, quality, creativity and efficacy of programs designedto deliver the organization's message to influence the market, promote the brand andbusiness, increase awareness of the products, and establish a positive identificationwith the product/brand and organization in the minds of buyers. This "mind share" canbe driven by a combination of publicity, promotional initiatives, thought leadership,word of mouth and sales activities.

Customer Experience: Relationships, products and services/programs that enableclients to be successful with the products evaluated. Specifically, this includes the wayscustomers receive technical support or account support. This can also include ancillarytools, customer support programs (and the quality thereof), availability of user groups,service-level agreements and so on.

Operations: The ability of the organization to meet its goals and commitments. Factorsinclude the quality of the organizational structure, including skills, experiences,programs, systems and other vehicles that enable the organization to operateeffectively and efficiently on an ongoing basis.

Completeness of Vision

Market Understanding: Ability of the vendor to understand buyers' wants and needsand to translate those into products and services. Vendors that show the highestdegree of vision listen to and understand buyers' wants and needs, and can shape orenhance those with their added vision.

Marketing Strategy: A clear, differentiated set of messages consistentlycommunicated throughout the organization and externalized through the website,advertising, customer programs and positioning statements.

Sales Strategy: The strategy for selling products that uses the appropriate network ofdirect and indirect sales, marketing, service, and communication affiliates that extendthe scope and depth of market reach, skills, expertise, technologies, services and thecustomer base.

Offering (Product) Strategy: The vendor's approach to product development anddelivery that emphasizes differentiation, functionality, methodology and feature sets asthey map to current and future requirements.


Business Model: The soundness and logic of the vendor's underlying businessproposition.

Vertical/Industry Strategy: The vendor's strategy to direct resources, skills andofferings to meet the specific needs of individual market segments, including verticalmarkets.

Innovation: Direct, related, complementary and synergistic layouts of resources,expertise or capital for investment, consolidation, defensive or pre-emptive purposes.

Geographic Strategy: The vendor's strategy to direct resources, skills and offerings tomeet the specific needs of geographies outside the "home" or native geography, eitherdirectly or through partners, channels and subsidiaries as appropriate for thatgeography and market.


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Documents

Gartner MQ on EAM for Delivery Utilities