INTERVIEW: Dave Loesch, Oracle’s Sr. Director of Enterprise Asset Management (Part 2)
This is part 2 of our exclusive interview with Dave Loesch, Oracle’s Sr. Director of Enterprise Asset 
Management. Part 1 can be found here.
Part 2
MIPRO Consulting: What would you say to a customer about PeopleSoft Enterprise EAM versus, say, a best-of-breed MM solution?
Dave Loesch (Sr. Director, Enterprise Asset Management at Oracle): Pay close attention to the integration. When creating our product, we had to build over 40 separate integrations from PeopleSoft Enterprise EAM to the rest of the PeopleSoft Enterprise ERP suite (for example, Human Capital Management, Financials, Projects) and every single one of those interfaces has to be tested each time the ERP side or the EAM side issues a new releases (and in most cases, even a patch). There is no such thing as productized integration between different vendors’ application products. And, with an application as complex as EAM, integrating multiple business processes can result in very high IT support costs and complexity that keep customers from upgrading. With PeopleSoft Enterprise EAM, we take on the full burden of developing, testing, and maintaining that integration for customers.
MC: Realistically, what options do customers have for implementing an EAM/Maintenance Management system?
DL: For the most part, they can acquire an EAM module as part of their ERP acquisition (PeopleSoft, Oracle E-Business Suite, JD Edwards, SAP, etc.) or they can license a standalone product from a specialty vendor.
MC: What are the key benefits that an asset-intensive PeopleSoft shop can expect after implementing Maintenance Management?
DL: If a customer already as an EAM/CMMS system in place (which probably 85 percent of the Fortune 2000 do) our benefits will come primarily in the form of lower IT costs (interfaces, upgrades, simplified tech stacks); better information (integrated enterprise view of information, process standardization and apples to apples comparisons of departments/plants); and more rapid response to changing market dynamics (easier upgrades, integration of new technology etc.).
There is also the value in the long-term stability and partnership that a company like Oracle offers. When a customer partners with Oracle, they know they’re buying from a company that has made a major long-term commitment. Virtually every informed analyst or thought leader will acknowledge the days of standalone EAM specialist vendors are numbered because once an ERP company like Oracle has a functionally rich EAM system, the cost of maintaining the integration far outweighs the marginal benefits of “bells and whistles” functionality.
If the customer doesn’t have an EAM or CMMS installed, Oracle’s EAM system offers the standard benefits of increased asset capacity (lower capital budgets); lower maintenance and material operating costs and improved regulatory compliance (and penalty/fine avoidance).
MC: Related specifically to PeopleSoft, what is your main challenge in selling the product?
DL: Awareness. Oracle likes to spend its money on developing great products so customers don’t see us as much in regional or industry-specific shows that appeal to the maintenance folks. Because PeopleSoft got its start in HR and financials, many people don’t even think to ask if we have an operational solution like EAM.
MC: OK, final question. Why is it important to choose an experienced implementer/consulting company like MIPRO for an application like Maintenance Management? What sets one implementer apart from another? Is who you choose really important?
DL: Picking the right integrator WILL BE the difference between a successful EAM project and a failed one. Unlike HR laws or GAAP accounting principles, the “best” maintenance practice depends on a number of variables (repair cost and priority, equipment type, skills sets, plant configuration etc.) that are different for every industry, every plant and even between departments in the same plant. That means there is no cookie cutter way to implement an EAM system. Your integrator must not only understand the EAM product and its underlying technology, they must understand how to apply EAM to a wide range of customer circumstances and requirements.
MC: Dave, that about wraps it up. Thanks so much for your time and information you’ve provided. Hopefully, it has made for a valuable series of blog posts for our readers.
DL: You’re more than welcome. Thanks for giving us the chance to talk about PeopleSoft Enterprise EAM. We are very proud of the system and excited about the value it can bring to our customers.
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MIPRO Consulting is a nationally-recognized specialist in PeopleSoft Enterprise EAM implementations. If you’d like to learn more about PeopleSoft EAM or would like to learn how it can help your organization, please feel free to contact us or download our whitepaper, entitled PeopleSoft Maintenance Management: An Introduction and Overview of Benefits.
