7 Reasons Why Your Business Needs IT Asset Management

IT Asset Management ITAM

Several businesses have no notion regarding the number of assets they possess, have lost, or are currently using. So, what is the answer to this? An asset management system.

Now, let’s address the primary topic we will address here. IT asset tracking is defined as keeping track of information about an IT asset such as hardware and software. 

This practice is necessary since each firm’s assets are valued. Regular monitoring of your IT assets manually is a significant undertaking that can be frantic and disorganized.

As a result, the IT asset tracking system is highly beneficial, practical, and effective. We’ll explain why your firm requires IT asset management in this post.

7 Primary Rationales behind implementing IT asset management in your business

The advantages of IT asset management are numerous, especially if you’re replacing an antiquated model or a documented technique. Seven essential benefits, however, shine out above all others.

  1. Enhance visibility of your IT assets

As you’re probably aware, your company comprises various IT assets, and each asset has a distinct function. 

These IT assets include laptops, computers, mobile gadgets, servers, routers, switches, and software assets.

As a company grows, so does the number of resources it has. As a result, tracking them all in a worksheet might be a lengthy and almost-impossible operation.

An IT asset management software includes all of the functionality needed to ensure that your resources are searchable and viewable. The usage of asset monitoring tools is particularly significant. 

This data is kept in a central database, also referred to as the asset register. Large volumes of data about each IT asset can be found in this repository, such as:

  • Price of purchase
  • Buying date and location
  • The number of units that are currently available
  • ID numbers that are unique

Asset transparency is advantageous to all sizes and types of businesses, even though a startling percent of firms admit an IT asset access gap since the pandemic has intensified the problem.

  1. Access data from the cloud in real-time

As market dynamics, business requirements, and economic conditions change, firms have begun to embrace cloud-based services. 

According to several surveys, over 80% of businesses are predicted to shift to cloud-driven platforms by 2025. 

The cloud network is a technology that allows enterprises to operate in different operating venues while increasing efficiency and production.

Hence, it would help if you considered migrating your IT asset management model to the cloud as well. Using a cloud-based IT asset management platform provides your employees with various functionalities. 

To begin, anybody in the firm, at any moment and from any place, can obtain your total asset directory in contrast to non-cloud-based methodologies such as excel sheets.

Mobile access to an IT asset management software is possible via a smartphone application or a devoted web browser. It enables users to see, upgrade, and include additions to the asset register while not on-site. 

This means that a ground technician, an asset professional, inventory supervisors, and maintenance workers can all access the information they require to accomplish their tasks.

Mobile phones with built-in QR codes and barcode readers, and camera systems can be utilized to update information on the move regularly.

  1. Remove ghost assets, theft risks, and cybersecurity threats

Assets that show up in your IT asset repository but cannot be physically taken into account are referred to as ghost assets. 

These can be lost or damaged hardware or software that has been incorrectly documented but still exists in your system.

An IT asset management software with functionalities including real-time monitoring can instantly help find and remove troublesome ghost assets. 

That is, you are not paying any taxes or exaggerated insurance premiums on non-existent assets.

Again, the digital age has seen an increasing rise in IT thefts and cybersecurity risks. In fact, 60% of small-business owners believe it’s unlikely cybercriminals will target them.

Consider the following scenario: you require a particular IT tool, you search your storehouse, but you cannot locate it. 

This is, of course, an example of poor administration. In this situation, you either misplaced your resource or it was stolen, but it was stated on records.

This will significantly raise your extra spending, and IT assets that are not physically present but are included in your documentation are referred to as ghost assets. 

However, how can you be sure that it is indeed a phantom asset? Could it be a result of theft or a cybersecurity breach? So, what is your remedy for this theft or loss? There exists a  single solution — an IT asset management system.

Your asset can never be lost or stolen because you own an asset monitoring system. As a result, you will not purchase an asset that’s not essential, and you’ll always know where your assets are located and who would be using them.

You could also monitor maintenance records and see if any IT asset is requiring more upkeep than necessary so that you are able to sell off that resource at a disposal value.

  1. Boost lifecycle management of your IT assets

IT asset management enables your business to comprehend the entire life cycle relevant to each asset. 

Knowledge of life cycle management in depth guarantees that resources are bought, managed, maintained, and discarded efficiently — in addition to gaining a deep understanding of asset performance information.

The IT asset life cycle is divided into four phases:

  • Planning entails determining any need to acquire an IT asset.
  • Buying and allocating a resource is referred to as acquisition.
  • Operation plus maintenance account for the most time-consuming stage of any IT asset’s lifecycle after it is deployed for use.
  • Disposal is the process of estimating an IT asset’s depreciation rate and determining when to discard it.

In fact, IT asset lifecycle management is among the most essential features when selecting an IT asset tracking software. Note that you need to look for other vital features well. For example, an IT asset management system’s attributes, abilities, and potential should have the possibility of being applied to companies of all sizes and types. 

Those firms that depend on their IT assets to drive revenue, in particular. IT asset tracking tools ought to be customized to meet the needs of a company. 

  1. Remove the need to use tedious excel sheets

One significant advantage of implementing an automated IT asset tracking system is the ability to eliminate manual methods like spreadsheets. When it concerns asset management, excel sheets fail for multiple reasons:

  • They are prone to mistakes.
  • They are hard to share among teams.
  • Spreadsheets do not keep a previous data record.
  • They are lacking in the most recent technology and features.

At first, downloading worksheet formats for asset management and tracking can seem to be a smart option. 

However, as your company expands, so will the quantity of IT assets. This necessitates more data collection, making excel more prone to errors.

The dearth of functionalities, incapability to track IT assets instantly, and cloud-based limitations all point to one conclusion: a digital IT asset tracking system is much more beneficial in the long run.

  1. Save costs

Organizations frequently have a large gap with both their disclosed IT assets as well as what they genuinely have in reality. 

An effective IT asset tracking tool will give your company a better vision of the type and quantity of assets it already owns, making future planning more manageable.

Baselining your live surroundings or a minimum of the top 5 most essential systems will allow you to truly comprehend the basic components that comprise professional services. 

This will enable you to own a more accurate description of what’s operating in your manufacturing environment.

Actually knowing what’s available allows you to predict more precisely and stay in a better position when negotiating with software and hardware companies. 

Furthermore, by understanding the placement and company use of your firm’s IT assets, you will be able to identify unused or underutilized resources which can be repurposed and rerouted somewhere else instead of investing in new assets.

  1. Forecast budgets, determine trends, and operate effectively

Having a total background of an IT asset, from acquiring to its end-of-life, allows for an effective evaluation of acquiring future assets. 

This could also aid in the planning of future corporate expenditures and budgets.

An IT asset tracking system also enables you to find out a lot of insights regarding your IT assets and identify trends. It’s helpful in understanding the life cycle of an asset. 

Knowing this allows you to plan repairs and maintenance more effectively — guiding you in identifying and responding to problems before they result in major disruptions in operations.

Once an IT asset tracking system is implemented, you can come to recognize the function of each resource in each business sector. 

This will include their functionality, the manner they can be used most effectively, a thorough return on investment (ROI), as well as whether or not they must be discarded to save funds.

Conclusion

Asset tracking systems, whether large or small, are efficacious in all industry sectors if implemented correctly. 

Monitoring not only tracks tangible assets instantly, but it also helps your business grow.

When everything is in place, you will have access to all asset information. 

You shall be able to track your resources, determine asset depreciation, taxes, and other essential variables. You will notice an increase in employees’ performance.

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Atreyee Chowdhury

Atreyee Chowdhury

Atreyee Chowdhury works full-time as a Content Manager with a Fortune 1 retail giant. She is passionate about writing and helped many small and medium-scale businesses achieve their content marketing goals with her carefully crafted and compelling content. She loves to read, travel, and experiment with different cuisines in her free time. You can follow her on LinkedIn.