Asset Management continues to be one of the main concerns of organizations everywhere in the world. Why? Assets drive businesses. Fashionable companies rely heavily on physical assets to maintain effectively. Asset management process also helps companies derive more value from an asset and achieve business goals.

While the idea of asset management has been in existence over a number of decades, it continues to be an ever-evolving domain. So, it is critical to keep tempo with the evolution and adapt to changes on the fly. How well firms embrace change will determine which prosper within the years ahead.

Asset management is the process of planning and controlling the acquisition, operation, upkeep, renewal, and disposal of organizational assets. This process improves the delivery potential of assets and minimizes the prices and risks involved. Adequate maintenance and proper deployment of systems, individuals, and processes guarantee a positive enhancement of capital over the asset lifecycle.

What’s asset lifecycle?

Asset lifecycle is the number of phases that a corporation’s asset goes by means of in the course of the lifespan of an asset’s ownership. It’s the period that a company can successfully and effectively utilize an asset to perform its enterprise goals. An asset lifecycle typically covers all phases of an asset’s life from acquisition by way of maintenance and eventual disposal.

Types of asset management

While the definition of asset administration might differ from one group to another, they can be vastly classified into three types: physical, monetary, and contractual.

Physical asset administration stands for the process of dealing with things like fixed asset administration, inventory administration, infrastructure, and public asset management.

Monetary asset management refers back to the process of managing procurement, developing an investment strategy, controlling funds and costs, dealing with cash, bonds, and stocks.

Contractual compliance streamlines processes like IT asset administration, digital asset management, contractual maintenance, and management of intangible assets.

Pain points in managing company assets

A number of the biggest points dealing with asset administration is the hurdle with monitoring and managing existing assets manually. When your assets have been on the grid for years, it can end up as loss or worse, compromised.

In addition to this dilemma, manual asset management is topic to the pain factors which are listed beneath:

Manual data entry, error-ridden processes, and inaccurate data

The unstructured asset management process

Lack of writerity to enforce asset administration policies

Poor or non-existent change management

Little to no tracking and reporting of real-time asset worth and location

Inability to assess the potential data risk or prevent it

Seven best practices for efficient asset administration

An effective asset administration process helps companies monitor and handle their assets using a systematized approach. With a strong process, organizations can improve productivity and efficiency of an asset thus enhancing the return on improvement.

Key components of an efficient asset administration process embody:

Making ready an asset register: A listing list of available assets

Determine asset conditions and score system

Track asset depreciation accurately at well timed intervals

Determine the worth of assets and their replacement value

Move away from reactive to predictive asset maintenance

Focus more on change management to ensure database integrity

Remove paperwork and automate tasks like data collection, asset reporting, and more