Annotated Bibliography: Asset Management Strategies in Utilities

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Assessment 1 Part A: Annotated bibliography on
Asset Management Strategy in the Utilities Industry
1

Table of Contents
Introduction......................................................................................................................................3
Annotated Bibliography...................................................................................................................4
References........................................................................................................................................8
2

Introduction
The paper has been developed to discuss and state the findings from different academic sources
on the topic of asset management. Asset management can be considered as management practice
which develops for maintaining and overviewing the assets in different stages of a project or
throughout the business life cycle. Asset management is necessary for the contemporary and
dynamic business enterprises and industries to ensure effective operations and accomplishment
of goals and objectives. The industry on which the paper will research academic articles is
Utility Industry. This industry includes for companies and business organizations that provide
for basic services and amenities for the public such as natural gas, electricity, water, and power
etc. It is essential for the utility industry to engage with effective asset management strategies
and policies to ensure for management of operations and functions in the industry in an effective
manner.
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Annotated Bibliography
Guillen, AJ, Crespo, A, Gómez, J, González-Prida, V, Kobbacy, K., and Shariff, S, 2016.
Building Information Modeling as an Asset Management Tool. Ifac-Papers online, 49(28),
pp.191-196.
Link: https://www-sciencedirect-com.ezproxy.scu.edu.au/science/article/pii/
S2405896316324570
According to the thoughts and viewpoints of the authors, Building, Information Management is
altering and simplifying the manners in which public facilities and infrastructures are managed
and conceived by the management authorities. These modelling systems have developed asset
management and administration in an effective and strategic manner. The systems have
strategized for constructing and designing the use of BIM in the processes of constructing and
delivering the projects in the utility industry. The disadvantage of Building Information
Management is that concentrates only on the aspects of preplanning and designing the projects
for the initial stages. It is necessary for the project managers and asset managers to monitor and
regulate the maintenance and operational costs for the projects and the assets included in the
project. It has been identified that costs and expenditures for the projects in the utility industry
are 60% constituted with maintenance and operation costs.
Asset management is required to structure and monitor in the utility industry to support effective
management and systems of the projects. Asset management is considered as a broader
discipline in facilities management. Asset management in the utility industry is required to
function for effective development and management of the lifecycle of the projects and facilities
conceived and processed. The paper has researched and communicated on the development of
Asset Management in the utility industry with the application of Building Information
Management. It also studies the aspect of effective assessment management with the application
of information systems.
4

Barucci, E, and Marazzina, D, 2016. Asset management, High Water Mark and flow of
funds. Operations Research Letters, 44(5), pp.607-611.
Link: https://www-sciencedirect-com.ezproxy.scu.edu.au/science/article/pii/
S0167637716300591
The journal article has strategically conversed about asset management in the water/utility
industry. The paper has demonstrated an understanding of issues and conflicts identified in asset
management by a portfolio manager. The paper has depicted a description for when a project
manager is witnessed with High Water Mark incentive fee and a management fee. As the
industry operates under high pressure of demand it requires constant management of asset to
support for effective operational management. The paper has focused on categorizing the inflow
and outflow of funds as a strategic dimension of asset management. The paper has depicted that
flow of funds creates pressure over the asset which further impacts on the performance of the
asset in the utility industry. The paper has developed an understanding that flow of funds
whether in or out highly impacts on the investment strategy. Asset management in the utility
industry is essential to focus on the operations and the overall costs of the projects.
5

Helms, T, 2016. Asset transformation and the challenges to servitize a utility business
model. Energy Policy, 91, pp.98-112.
Link: https://www-sciencedirect-com.ezproxy.scu.edu.au/science/article/pii/
S0301421515302597
The paper has strategized to develop an understanding of the asset management and asset
transformation in the energy utility services. The paper has developed that through traditional
energy utility business model energy service industry is witnessing increased amounts of
pressure of demands. It has been developed that energy services play an eminent role in energy
transition and energy transmission. The experts in this field have argued for innovating and
altering the business models in the utility industry for effective and affirmative management of
the asset and resources available. The business models in this industry are required to be altered
from product oriented, capital intensive business model based on tangible assets to service-
oriented business models. The utility industry is required to be developed as an expense
intensive business model for strategic and effective asset management.
The paper has highlighted the aspect of transforming the utilities into service providers. The
paper has discussed the lack of research conducted on the aspect of transforming the utility
industry as service providers. The management and development of asset in the utility industry
is a requirement for effective business operations and overcoming the challenges faced by the
industry. The paper has discussed and developed efforts towards understanding the barriers that
restrict servitization within the Swiss and German utility companies. The paper has identified
that it is required in the utility industry to transform from tangible asset to intangible asset
service provider. It has been identified that policymakers can support for systematic
transformation by developing favourable regulatory frameworks.
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de la Fuente, A, González-Prida, V, Crespo, A, Gómez, J.F. and Guillén, A, 2018.
Advanced Techniques for Assets Maintenance Management. IFAC-PapersOnLine, 51(11),
pp.205-210.
Link: https://www-sciencedirect-com.ezproxy.scu.edu.au/science/article/pii/
S2405896318313843
The paper is aimed at identifying and discussing the importance of different asset management
and maintenance strategies for supporting decision making. The paper has developed for
examining the need for effective management framework to ensure for clear map processing and
corresponding with the Information Technology in asset management. It is necessary for
business systems and processes of the industry to ensure or continuous improvement. The paper
has developed for discussing key fundamental processes and frameworks that ensures for
developing and designing effective asset management in the business processes. These strategies
are further aimed at developing business policies that improve operational work processes and
maintenance of assets throughout the lifecycles.
7

References
 Barucci, E. and Marazzina, D., 2016. Asset management, High Water Mark and flow of
funds. Operations Research Letters, 44(5), pp.607-611.
 de la Fuente, A., González-Prida, V., Crespo, A., Gómez, J.F. and Guillén, A., 2018.
Advanced Techniques for Assets Maintenance Management. IFAC-
PapersOnLine, 51(11), pp.205-210.
 Guillen, A.J., Crespo, A., Gómez, J., González-Prida, V., Kobbacy, K. and Shariff, S.,
2016. Building Information Modeling as Asset Management Tool. Ifac-Papers
online, 49(28), pp.191-196.
 Helms, T., 2016. Asset transformation and the challenges to servitize a utility business
model. Energy Policy, 91, pp.98-112.
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