Asset management is still one of the most pressing concerns for businesses all around the world, largely because businesses are propelled by their assets. To stay afloat, modern enterprises rely significantly on tangible assets and the management method also aids or in maximizing the value of their assets and achieving their objectives.
Although asset management has been around for decades, it is still a dynamic field, therefore, keeping up with the development and adapting to changes on the go is crucial. A company that will thrive in the coming years will be known for how quickly it adapts to change.
In this article, we will examine the concept of asset management, the deliverables it brings, and its prospect for the future.
Asset management defined
The method of coordinating and integrating the acquisition, operation, maintenance, renewal, and disposal of corporate assets is known as asset management. This procedure increases the asset’s delivery potential while lowering costs and hazards. Over the asset lifecycle, proper maintenance and deployment of technology, people, and procedures ensure a positive capital increase.
The flow path that a company’s asset goes through during its ownership lifecycle is referred to as the asset lifecycle. It is the time during which a company can successfully and efficiently use an asset to achieve its business objectives. The term asset lifetime refers to the process of acquiring, maintaining, and eventually disposing of an asset.
Types of asset management
Asset management can best be defined according to business, but it has three main categories namely: physical, financial, and contractual management.
Physical assets management is the process of organizing and controlling fixed assets, stock control, infrastructure maintenance, and public assets.
While financial asset management refers to managing procurement, formulating an investment plan, controlling budget and costs, and handling cash, bonds, and stocks.
On the other hand, contractual assets have to do with the management of digital assets, contractual maintenance, and intangible assets.
Challenges of asset management
One of the most significant challenges in asset management is physically monitoring and administering current assets. When your assets have been in existence for a while, they may become lost or compromised.
In addition to this conundrum, manual asset management suffers from other setbacks such as manual data entry, error-prone processes, and erroneous data, no real-time asset value and location tracking and reporting, as well as inability to assess or prevent a potential data risk.
Therefore, the best way to solve this imminent issue is to adopt a systematized method in tracking and evaluating company assets using an optimal resource management procedure. Organizations can also monitor the productivity and efficiency of an asset by using a sound procedure, which would increase the return on investment.
Advantages of automating asset management
Smart firms don’t waste resources repeating the same inefficient process to execute basic and recurring asset management activities manually. Investing in asset management software allows firms to automate time-consuming and monotonous asset management tasks, allowing the administration staff to focus on higher-value activities.
However, because deploying an asset management system is such a significant decision, you should be certain of the perks before taking the plunge. Asset management software should: extend the useful life of your assets, aid in the effective rehabilitation, repair, and replacement of assets, satisfy customer needs while also ensuring the long-term viability of the system, and allow you to concentrate on the activities that are most important for long-term success.
Finally, automating your company’s asset management allows you to exceed service standards as well as regulatory needs.