For most businesses, the efficient tracking of their installed base or in-service equipment, and the management of their spare parts inventories are key factors in determining the prospects for internal productivity and customer service profitability. However, many organizations do not yet utilize a comprehensive asset tracking and management process to guarantee the availability of quality data that can be used to generate the business intelligence that may ultimately save them money and improve efficiency. This is unfortunate, because the tools are readily available – it is just a matter of making it important.
What is Asset Management?
There are lots of definitions of “asset management”, although most deal primarily with financial considerations. Some are based on evolving maintenance 833-498-1276 management systems; some on the management of factory floor equipment configurations; plus some for the purposes of monitoring network equipment or even railway car and container locations. However, whatever situation or application your business deals with, the core definition remains constant; asset management is “a systematic process for identifying, cataloging, monitoring, maintaining, operating, upgrading and replacing the physical assets of the business on a cost-effective basis”.
To be truly effective, the asset management process must be built upon a foundation of widely accepted accounting principles, and supported by the proper mixture of sound business practices and financial acumen. It could provide management having an effective tool which you can use to derive better short- and long-term planning decisions. Therefore, it is a thing that every business should consider adopting – and embracing.
After years of studying and supporting the info Technology (IT) needs and requirements of clients in all major fields of business, we would rather define asset management in a more dynamic way, encompassing each of the following four key components:
An enabler to generate and keep maintaining critical management data for use internally by the business, as well as with its respective customers and suppliers (such as for example installed base or maintenance entitlement data).
A comprehensive process to obtain, validate and assimilate data into corporate information systems.
A flexible system allowing for either the manual acquisition and/or electronic capture and reconciliation of data.
An application with accurate and intelligent reporting of critical business and operational information.
Asset management isn’t merely the identification and inventorying of IT and related equipment; it’s the procedure for making the assets you possess work most productively – and profitably – for the business. Further, it is not a system you can purchase; but is, instead, a business discipline enabled by people, process, data and technology.
What are the Signs, Symptoms and Ramifications of Poor Asset Management?
Poor asset management leads to poor data quality – and poor data quality can negatively affect the business enterprise over time. Actually, experience shows there are many common causes that can lead to poor asset management, including insufficient business controls for managing and/or updating asset data; lack of ownership for asset data quality; and an out-of-balance investment in people, process, data and technology. Furthermore, some businesses might not consider asset management to become a critical function, focusing on audits only; while others may not consider asset data to be a significant component of the business’s intellectual property.
The primary outward indications of poor asset management are also fairly ubiquitous, and could include anything from numerous compliance and security issues, to uncontrollable capital and/or expense budgets, excessive network downtime and poor performance, under- or over-utilized assets, incompatible software applications, increasing operational costs and headcount, and non-matching asset data derived from different organizations and/or business systems.