How Asset Management Can Enhance Business Operations

Asset Management / September 2019

Updated: May 2021, August 2021, January 2022

Reducing costs and implementing effective solutions, such as an Asset Management system, can be highly beneficial for business growth. So, when a business intends to expand, it’s important to understand that spending and merging aren’t the only options; a plan for managing company assets can be just as vital. In this guide, we’ll cover:

What Is an Asset Management System?

Firstly, let’s get our head around this question. In simplest terms, it is the process of managing of all assets across a business; both intangible and tangible. This can be monetary assets, employees, buildings, software and hardware equipment.

The term ‘management’ means having control over all aspects that correlate to managing these business assets, of which there are many.

By knowing the basics, we then begin to understand what asset management software is and the benefits it can offer a business.

Who Users Asset Management?

The aim of an asset managing system is to minimise the total cost of acquiring, maintaining and operating assets. It enables you to control operations more efficiently, allowing assets to run at peak performance. This can be essential for:

  • Containing costs
  • Maintaining production quality
  • Maximising returns

However, to implement an effective asset management plan, it’s important to understand that there are many aspects to managing assets.

For example, an asset tracking application uses technologies like GPS and RFID to track physical assets such as employees, IT equipment, and vehicles.

Other aspects of an effective asset management system can include managing IT assets and software asset management.

What Are the Benefits of Managing Business Assets?

The benefits of an asset management system, to both large and small businesses, are huge; Yet, are so commonly overlooked.

A well-implemented software that manages business assets can:

  • Allow you to monitor and track all assets in one centralised ‘hub’
  • Manage all assets from any location
  • Identify and manage risks to assets
  • Understand and monitor an asset’s life-cycle
  • Identify and remove ghost assets
  • Effectively plan maintenance schedules without disruption to services
  • Produce in-depth asset reports and audits

Using an asset management system instead of spreadsheet

With the ability to monitor all assets in one centralised system, an asset management system can also eliminate the need for spreadsheets.

Choosing spreadsheets over software can cause a number of problems, as Karen Pickersgill, at Salford PCT, discovered:

“Using spreadsheets to manage our fixed assets presented a number of problems, including the fact that formulae would often not read through to the following table, resulting in unstable and inaccurate data. The entire process was also very time-consuming as we had to enter and process data manually. With the number of assets increasing we realised it was just not viable to continue with this system, and we decided to invest in a specialist package.”