Today, the use of distributed networks and the rate at which technology is evolving have resulted in a volatile base of hardware and software that is only increasing the importance and complexity of asset management.
Most executives acknowledge that asset management is a difficult, time-consuming, and expensive task that has not been made any easier by the dawn of client/server computing, which has made it virtually impossible to reflect the value of IT assets in the general ledger.
As a result, fundamental information such as the current location and value of an organisation`s IT assets often remains unknown until the year-end inventory, but assets are acquired, moved, changed and retired on a daily basis, rendering the inventory almost immediately obsolete. Organisations lease or buy new assets, and upgrade or retire others. Yet, it is often impossible to find these items in the asset register, and valuing them is generally a thumb-sucking exercise. In addition, the asset register does not normally reflect any changes to a particular asset.
When you think about the fact that IT constitutes around 25% of the costs of operating a business, the impact of inconsistent asset tracking on the balance sheet becomes clear. Consequently, companies produce inaccurate financial records, incorrect depreciation values and imprecise tax assessments. It`s no wonder then that finance and business people view the IT department as a department which just keeps on buying new stuff.
Companies need to know what they have before they sign any more cheques for the purchasing of new equipment. And to be able to do this accurately, they must answer these basic questions: What assets do we currently have? Where are these assets located? How are these assets changing over time?
With an asset tracking solution, these answers can be readily available in a central asset repository. Once it is understood that an asset`s lifecycle has a cost attached to it in terms of purchase, implementation, maintenance and disposal, this enables companies to effectively manage and leverage the IT assets that employees depend on for their core job functions. In turn, this leads to improved end-user productivity and substantial cost savings.
Consider the following:
* How much time and money are spent ensuring software licence compliance?
* How many hours are required to reconcile fixed asset accounting system data with installed assets?
* How much money is lost due to inaccurate asset depreciation rates?
* How many hours of lost productivity can be attributed to poorly planned software and hardware upgrades?
* How much money can be saved from reduced help-desk response times?
* What kind of monetary and productivity losses are organisations experiencing due to the theft of computer components?
As a process, asset management improves the efficiency of IT assets. It documents information on distributed hardware, software and network devices on a regular basis and stores this asset in an open repository which includes an accurate, up-to-the-minute view and a historical perspective of IT assets - information essential for asset planning and corporate decision-making. It can be used to facilitate decision-making for departments in the organisation, including purchasing, IT, operations and finance, resulting in cost savings and productivity enhancements across the board.
The benefits to the organisation are numerous:
* Laborious and costly physical inventories can be eliminated.
* Embarrassing variances between the fixed asset accounting system and installed assets can be prevented.
* More accurate financial reports can be produced.
* IT decision-makers can improve the planning and budgeting of departmental and corporate IT asset changes.
* With information on software licences and the true cost of software upgrades, decision-makers can better budget, plan and manage software purchases, leading to an improved return on investment.
* With information on suspicious asset activities, such as missing hard drives and memory, appropriate action can be taken to protect the organisation and its resources.
* With access to users` hardware and software configuration changes, as well as network infrastructure information, support staff can resolve technical problems faster, removing any technological obstacles to end-user productivity.
Companies need to know what they have before they sign any more cheques for the purchasing of new equipment.
Inana Nkanza, MD, iLayo Software Solutions
In a case where an organisation is hit by a virus, for example, a proper asset management database can quickly inform you which PCs are affected, and where to deploy your anti-virus software.
Given the benefits and importance of asset information, asset tracking is a logical first step towards the implementation of any asset management solution as it helps organisations plan ahead, and requires minimal investment in personnel and other resources. An asset tracking solution enables organisations to determine exactly what their assets look like today, as well as the speed and direction of their change. This asset information is critical to the selection of other asset management functions. Once an asset tracking solution is implemented, the organisation will realise immediate benefits, and the other asset management requirements will begin to fall into place. However, there is no Holy Grail. An asset management solution is only as good as the processes in place to support it. These processes must be defined across the various disciplines of asset management, standardised and then implemented in an automated fashion.
Whether the organisation is using asset tracking information to ensure software licence compliance, enforce desktop standards, plan technology upgrades, minimise help-desk support requirements, or prevent computer component theft, the far-reaching benefits of asset tracking can be realised by every functional unit of the organisation.
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