What is Asset Management

In its simplest form asset management is the process of maximising the value of organisations assets while minimising the risk an organisation faces through use of those assets.

Asset Management should be seen as a program of work rather than a one-off project. It needs to be seen as something that outlives any individual and is the responsibility of everyone within an organisation.

The key to asset management success is support from the owners and decision makers. This ongoing support is the one factor that prevents the program fading into oblivion.
A good asset manager will work toward implementation of a governance program that shows the value and one which management sees as a major benefit to the organisation.

Cost Benefits

The cost below are indicative and many times specific benefits will be much greater.

More highly leveraged buys: Reduce asset acquisition costs by 8-5 percent
Better matching of software licenses to organization needs: Reduce software costs by 6-10 percent
Enhanced service and warranty coverage: Reduce warranty costs by 3-15 percent
Increased component standardization: Rescue mean-time-to-repair and improve uptime by 3-7 percent
Reduced IT component complexity: Improve help desk first call resolution rate by 5-12 percent
Better contractor/vendor selection process: Improve contractor performance by 20 percent
Better negotiation of terms and conditions safeguarding performance: Reduce risk of noncompliance by 50 percent
Improved asset tracking, proven usage compliance and ease of audit: Reduce noncompliance risks by 80-90 percent

Source: Jack Heine, Gartner Fall Symposium, 2002

And dont be concerned by the date...These figures are just as valid today!

Operational Benefits

There are many and varied benefits of good IT Asset Management in any organisation. An outline of some of are:

Increase asset life
optimise maintenance planning
Minimise asset downtime
Increase asset productivity and availability
Improve real-time visibility of assets
Reduce maintenance and operating costs
Optimise outage scheduling
Decrease incidents of neglected maintenance
Maximise the strategic use of the planning function, and
Decrease capital tied up in operating assets.

Of course, it's the effect on the business that is important:

Lower cost of IT through better managed assets
Reduced impact of an asset cost on end product or service cost
Increased maintenance management efficiencies
Increased availability of an asset for production
Increased production from existing assets
Improved ability to respond to short and long term market demands
Reduced impact of maintenance cost on end product or service cost
Improved flexibility and reduced impact of outages on production capacity
Reduced rate of forced outages
Increased effective use of assets, and
Increased resources available for other activities and reduced capital financing costs.

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