ASPs For Metalworking: Software You Can Use But Don't Have To Buy

Modern Machine Shop, Nov, 2000 by Mark Albert

It is interesting to note that Made2Manage now does about quarter of its business via an ASP business model. And it's not just the small shops that have responded to its ASP offerings. The company is experiencing strong demand among another segment as well--large manufacturers with facilities in many locations. By using the Made2Manage system in the ASP mode, the large manufacturer effectively achieves multisite shop management without the expense of maintaining its own infrastructure.

Other hosting applications also may be enticing because they offer benefits in areas most small- or mid-sized companies rule out as simply beyond reach. Few small shops, for example, have the resources for a systematic approach to asset management. However, Datastream Systems, Inc. (Greenville, South Carolina) offers MPXconnect (www.MPXconneot.com) as an enterprise asset management service available as a hosted application.

Asset management is a service that attends to all of the administrative details associated with owning, maintaining and ultimately disposing of equipment such as machine tools. Asset management covers the life of the machine. This includes archiving the machine's original specifications and run-off data, compiling all maintenance records, scheduling preventive maintenance actions, keeping track of spare parts availability, and so on. These are many of the chores smaller companies let fall through the cracks whereas large plants often have their own maintenance departments or repair crews to attend to these important functions.

For example, when a scheduled maintenance item comes up on the calendar, MPXconnect automatically issues a work order and tracks its completion, ensuring that the maintenance will not be overlooked. According to Courtney Millwood, VP of corporate communications at Datastream, MPXconnect resides at a secure data center, rather than having a unique database at each customer site. This arrangement eliminates database administration for the customer and significantly reduces the requirement for on-site data processing support. Customers access the system from any standard Web connection.

Because Datastream has partners in other areas of e-commerce, it can order spare parts or repair kits online automatically. And when the decision is made to dispose of the machine, Datastream will handle an online auction. Bidders have the advantage of being able to review maintenance records and compare current performance with as-new performance.

The company is looking at various pricing structures, including one in which monthly fees would be as low as $50 per user.

Let The Provider Take Over

Outsourcing is yet another type of ASP model that deserves brief mention. Outsourcing means moving specific elements of a company's information technology infrastructure to an outside service provider, including the provision and operation of the data network, upgrades, the monitoring of service levels experienced by users and the provision of specific applications themselves. Managed service provider is one of the other terms used to describe this approach.