Asset management is the key to any business success. Careful and effective management of the assets helps expend economically and generate profits.
Assets can be procured, stored, and used for the organization's benefits. Moreover, they provide value-added services. Assets can be classified as tangible and intangibles. Tangible assets refer physically felt items such as Tools and machinery, while intangible assets refer to databases, license agreements, etc.
Spending revenue on those assets that generate less output is a significant loss of time. When your business is small, it is easy to manage your assets. However, as your business grows, the greater necessity lies in attaining more assets, managing them better, and delivering the best outputs.
So, the slightest negligence to maintain them well could lead to loss of finance and at the same time.
Importance of asset management?
Investment in asset management reaps enormous benefits, and the profits generated need not necessarily take shape as just finance alone. Prominently they build responsibility and perfect planning.
Asset management can be appropriately guided with automated tools designed to overcome difficulties due to old traditional practices.
Furthermore, automated systems enabling enhancive planning can cause cost savings resulting in increased efficiency.
Who is the asset manager?
The asset manager is responsible for maintaining a particular group of assets. Preparing an effective strategy, tracking the assets, reducing the wastage, and creating savings for the organization include vital roles and responsibilities of any asset manager.
Currently, asset management is happening within the organization with the help of asset managers surpassing the traditional means, wherein managing assets was outsourced to external organizations.
Asset managers hire analysts and researchers who can assess the performance and provide valuable advice. Prominently, asset managers are the first to invest in those opportunities that are likely to create more excellent benefits.
The key departments that an asset manager should be familiar with include the following: Finance, operations, and administration. Moreover, their association with the business stakeholders should be strong.
Asset life cycle
The various phases an asset goes through its lifetime can be termed as an asset life cycle. The significant stages of it include planning, acquisition, operation& maintenance, and disposal.
The key points of the planning stage include:
- Identify and list the required assets
- Identify if the existing assets are sufficient
- Check whether assets are well maintained and accountable
- Check for the asset's accessibility
- Prioritize and choose assets based on the finance constraints
Important factors for acquisition include cost, relevancy, and functioning. This helps determine how best the asset can meet business essentials.
The prior step includes whether the asset would be outsourced or built within the organization. Later consider the cost essentials and the essential timelines. And finally, based on the budget constraints, the money should flow to procure the asset.
Operation and maintenance:
The operation and maintenance stage mainly includes using, managing, and maintaining the product to serve the organization's needs seamlessly. The significant operations during this phase include new licenses procurement, upgraded versions, repairs, and fulfilling compliance audit.
An asset reaches the disposal stage when it comes to the end of its lifespan or is performing low. The teams responsible for disposal have to ensure that the asset goes through the required certifications stating that the asset no longer is capable of working fine.
Managing assets is prominent, for they can significantly influence business growth. Knowing the significance and the various key phases of the asset lifecycle can quickly and easily turn businesses into successes.
O-Counting is an AI-enabled device that can help manage inventory easily through automation. The product maintains data security and helps skip manual errors to attain efficiency. Leveraging the tool's usage can turn asset management quick and easy.