What is Asset Management?
The asset management process is the process of managing a company's assets, regardless of their type. An asset management team is accountable to the firm and is in charge of ensuring that the company's assets achieve maximum market value. Managing a company's financial or infrastructure assets should be done in such a way that the property's value increases as much as possible over time.
Types of Assets
Any property or resource owned by a corporation is considered an asset of that company. Assets can be divided into six groups in general. They are, indeed.
- Financial Asset.
- Digital Asset.
- Infrastructure Asset.
- Enterprise Asset.
- IT Asset.
- Fixed Asset.
Any procedure used to manage and arrange these assets is referred to as asset management. Asset management would not be complete without the sale of assets at the highest possible market price.
Who is responsible for Asset Management?
Unlike human resources or customer service, which are often handled by a small group of employees, asset management is a process that requires the participation of personnel of various levels and grades. Everyone from a company's Chief Operating Officer to a manager and an accounts officer to a member of the maintenance crew will play an important part in guaranteeing asset management efficiency.
Aside from personnel, a subcontractor or client might assist the company in ensuring asset management success. In a nutshell, asset management is a procedure that aids in the comprehension of an asset's lifespan.
Why should there be an asset management system?
Asset management is a broad term that refers to the management of wealth. Asset management, on the other hand, is primarily concerned with an organization's properties. Asset management ensures that all of a company's assets are organized in a methodical manner. There is no other reason why the vast majority of large corporations employ an asset management staff.
Importance of an ERP tool for Asset Management
Asset management is a complex process that involves a variety of assets. It also necessitates the cooperation of several departments and inter-departmental coordination for asset management to run smoothly. If we use an ERP application to manage assets, we will undoubtedly benefit from a more effective system for tracking assets and assessing their current location and worth. The ERP technology assists investors in ensuring that asset users are accountable and that the assets are managed by ensuring timely maintenance and repair work.
Don't get me wrong: we're talking about solid assets, not object assets. The maintenance management system will include asset management as well.
Asset management is supported by ERP, allowing for centralized asset management. The departments may examine the asset's efficiency and schedule purchase or repair actions in advance if they have a good tracking system in place.
Highlights of ERP support for Asset Management
- Interdepartmental actions that are quick and efficient.
- A system for risk management that is effective.
- Reduces the amount of time and resources wasted.
- Accuracy has been improved.
- Better asset management.
- Property usage that is transparent.
Steps to complete Asset Management
Asset management is a sequence of actions that must be completed. It's what's known as a multi-step activity. Asset management becomes an automated procedure when ERP systems are used.
Let's take a look at the important phases in the asset management process. Before you begin the asset management process, you must verify that you have the right instrument for the job.
- Compile a list of all the assets that the firm uses.
- Determine the purpose of each asset and follow its movement.
- Arrange the assets by tagging and organizing them.
- Track the asset using serial numbers or other codes.
- Connect the serial number of the asset to the tracking system.
- Use preventative and corrective procedures to ensure asset upkeep.
- Keep track of the asset's life cycle.
- Dispose of the asset or sell it.
Let us return to the categories of assets and their management now that we have covered the many components of asset management in depth.
Types of Asset Management
We should design a plan for managing that specific sort of asset whenever we manage assets. That is to say, we should have a dedicated asset management system for a certain asset type. The asset management type you utilize is also determined by the sort of business you have.
Financial Asset Management
The word that springs to mind when we hear the phrase asset is wealth or finance. The company's investment in real estate or the stock market is referred to as a financial asset. This type of business needs assistance in tracing a share's market rate, taxes, or obligations.
Fixed Asset Management
When it comes to a corporation, fixed assets account for the majority of its assets. The fixed asset of a firm includes anything from the building where the firm is located to a laptop utilized by a management.
All machinery, electrical, and plumbing installations, we may state. The term "fixed assets" refers to any moveable or immovable property or equipment owned by the firm. Fixed asset management is essential since we must use these assets for a longer length of time before disposing of or selling the production. We'll have to keep track of these assets and figure out how much they're worth over time. As the life period of fixed assets shortens, their value depreciates year after year. In this instance, we turn to maintenance in order to extend the asset's life. If the asset is no longer useful to the firm, we will have to decide whether to scrap it or sell it.
Digital Asset Management
The majority of a company's digital assets are its intellectual property. Digital assets might be software in the case of a software corporation. It is the building plan for an architecture firm. The sharing or sale of access rights to digital information is part of digital asset management. Managing client access to digital content, including tracking who uses it, for how long, and so on.
IT Asset management
All instruments utilized in information technology are considered IT assets. This might contain computers, routers, and other such devices. This aids the organization in storing, organizing, retrieving, and sharing data pertaining to IT assets.
Infrastructure Asset Management
Engineering and contracting organizations benefit the most from infrastructure asset management. It entails having access to roads, water, and power, among other things.
Enterprise Asset Management
The management of physical assets and their records are examples of enterprise assets. Enterprise management includes report documentation and management. This involves properly creating customized reports. ERP tools may also be used to handle emails, data, charts, and other items.