Asset intensive firms turn to IT to squeeze more value

THE proposed major overhaul of the Singapore bus services sector has thrown into sharp focus the critical issue of how corporations, whether in the private sector or in the government, optimise heavy assets.

In recent decades, significant sums have been invested in enterprise resource planning to improve productivity and cash flow. But many organisations have until now not zeroed in on possibly the last mile of corporate efficiency - how to squeeze more value out of physical assets such as infrastructure and heavy equipment.

As being played out in the proposed Singapore bus sector revamp, traditional roles have been upended - a government which had long kept ownership of these assets at arm's length now suddenly finds itself as its steward. Similarly, the bus operator has to relook at remaining assets differently while seeking to protect or enhance shareholder value.