Management in any establishment or setting can be a tedious job as it requires an eye for detail and a desire for the appropriateness and optimal functioning of all the assets concerned. Particularly managing digital assets, as a result of their heightened use. The benefits of assets both in the long run and short run can’t be overemphasized as they are those beneficial and vital tools that businesses deploy in realizing profit or return on sales or investment.
This article would answer the following questions:
What is asset management?
What are the benefits of asset management?
What are the types of asset management? Is one superior over the other or do they complement each other? These questions would form a fundamental part of the general framework of this piece.
Management has earned its coveted place as the top preventive measure that can be taken to prevent issues and causes of degradation, ruin, mismanagement, spoilage, and general breakdown. Companies generally essentially run and carry out their day-to-day activities using their assets hence they are of great value in making a profit and ensuring continuity.
By the end of this piece, you would understand the various types of asset management and the uses which they can be deployed into. It would give you a sense of clarity concerning the type of asset management you deem fit for your organization.
What is Asset Management?
Asset management can be defined as a predetermined system applied in the management, organization, and supervision of assets to ensure that they are working at the highest optimal level. Anybody can be involved in asset management ranging from personnel in the IT team, managers or chief of operations, marketers, plumbers, and electricians.
For any organization which does not want to spend its money on fixing damages or degradation that could have been avoided, asset management is the best bet as it involves the following elements:
(1) Performance tracking or optimality
(2) Management and supervision of objects in question
(3) Taking inventory albeit carefully and meticulously.
Types of Asset Management
The following are the types of asset management:
1. Digital Asset Management
Any company that wants to be relevant and make great returns on investment must heavily prioritize its digital assets. They must put in place effective and efficient measures, structures, and systems that would explore the inherent potentials of digital assets. Most of the steps to be taken in this direction involve preventive maintenance and supervision. To ensure the highest level of maintenance, digital asset software is needed to organize, sort, and distribute assets following a predetermined order.
Any company that neglects its digital asset is courting a fatal disaster that would wreck its image, finances, workflow, and overall processes. You would need to set various reminders and notifications to prevent cases of copyright infringement and intellectual property issues.
You would also need to run regular security checks and surveys in addition to security features that have been pre-installed on your system.
2. Fixed Asset Management
Fixed assets as the name implies are assets or items that a company uses to generate income and profits. They are often in a fixed spot or location. They include plumbing installations and machinery. They are broadly categorized into Property, Plant, and Equipment. Instruments like this are susceptible to damage due to wear and tear and frequent usage. Hence, they require constant routine checks and preventive maintenance or regular servicing.
3. It Asset Management
This management involves the maintenance of your company’s hardware and software. The importance of technology to every modern-day establishment cannot be sidelined. You need to take care of your computers and other related devices by maintaining strict usage ethics ranging from keeping your systems from damage triggers like spillage of drinks, electrical faults, or sparks. This maintenance is not only limited to hardware components as software components ranging from software subscriptions, licenses, patents, and other related software.
This type of management ensures security, data protection, and effectiveness.
4. Financial Asset Management
Finance is at the core of every organization or business. As finances are needed to launch publicity campaigns, purchase systems and internet service provider subscriptions, pay for rent or lease in the case of rented spaces. You have to be meticulous in managing your financial assets. This process involves proper planning and preparation. You must be aware of necessary tax reductions, rates levies, and fees. Having a watertight audit system would ensure you detect loopholes in your financial statements.
5. Infrastructure Asset Management
We all know the importance of buildings and structures to any organization as they improve the aesthetic appeal and charm of your business environment. They are pivotal as most of your activities are carried out within the ambit of these structures. The structures may be internal or external depending on their location. They include buildings, bridges, water supply systems, and the like. Such maintenance aims to maintain, replace and rehabilitate structures to extend their lifespan and run time. It also seeks to improve the quality of the structure in question. It’s both preventive, corrective, curative, and approach.
6. Enterprise Asset Management
This involves the combination of systems, services, and processes to manage operational assets and equipment. It seeks to attempt a holistic evaluation of a company’s assets to increase their life throughout their lifecycle. It involves diagnosis, asset life cycle management which involves comprehensive reporting, analytics, contract designation, labor-management inclusive.
In conclusion, assets are meant to be shielded by all means necessary to prevent degradation and damage. However, this process like other similar processes is an intentional one. You must do all of these with a goal and objective in mind. It should be noted that all of your well-meaning plans for your assets can dissipate into nothingness if you do not back your plans up with sufficient, time-conscious actions.