Stick or Twist: Does Your Mid-Sized Business Really Need a New Asset Management System

Why Medium-Sized Businesses Need Asset Management Software

Summary: Medium-sized businesses need greater functionality, more asset visibility across multiple sites, and better collaboration to meet complex asset management tasks – that’s where Asset Management Software can help. Whether upgrading from an existing system or transitioning from spreadsheets, choosing the right asset management solution is key to aiding the continued growth of a mid-sized enterprise.

The journey from an SMB to a medium-sized business/enterprise has brought with it many changes. You’re taking on more employees, generating more revenue, purchasing more assets, and you’re spending more than ever.

This growth needs to be sustained. So, when it comes to your asset management, questions are raised about the capabilities of your current asset management system:

  1. Does it provide the right accessibility for more users and teams?
  2. Can it handle the significant increase in asset data?
  3. Does it provide the tools to keep your data secure?

Sure, your existing entry-level tool was effective for managing a smaller subset of asset data, but can it handle the complexity of your current operations – something that a more sophisticated AMS tool with more functionality would provide?

But, don’t discredit your existing asset management system just yet. After all, it’s got you this far – why can’t it take you further?

Why There’s Nothing Wrong With Your Existing Asset Management System

For a continuously growing business, dipping into the market for a new asset management system seems only natural. Especially as you’ve got more money to spend than before. But, do you actually need to swap out your existing system?

Here’s why you should think twice before doing so:

Remember, Your Existing System Still Works

Whether you’re using spreadsheets or an entry-level solution, your asset management system still works. You’re still able to track and collect asset data, report on asset performance, and calculate depreciation values.

Outsourcing Asset Management Is Good

With your current system, it’s most likely you’re outsourcing your asset management. Having an outsourced system saves you time when it comes to analysing and reporting on data – particularly with financial decisions. It also saves you the cost of recruiting in-house financial and accounting personnel.

It’s Helped You Grow Significantly

You might believe that a new system is required to take that extra step when it comes to further growth. This might be the case if you’re limited to data restrictions with your current product. But, if there are no user restrictions, why can’t your current asset management system help propel you forward into a Fortune 500 company? After all, it’s worked before, so it’ll work again.

Reasons Why Some Medium-Sized Businesses Upgrade Their Existing Systems

There are several reasons why mid-sized companies look to implement a new asset management system:

  • Looking to decrease human error in data collection
  • Increasing detailed financial and procurement decision-making
  • The need for more secure data management
  • Needing a system to work across multiple sites and locations
  • An overload of data that requires more storage space
  • Requiring separate asset management tasks for multiple departments
  • Wanting to bring asset management in-house for better security

If you’ve decided it’s time to take the leap and replace your existing system with something more sophisticated, you’re not alone. 12% of all Comparesoft users have searched for a system to help manage their assets with a valuation of up to £25m.

While 17% of users need a new system to manage assets with a valuation of over £25m.

Valuation of assets

Benefits of Purchasing Asset Management Software For a Mid-Sized Business

The substantial growth that your medium business has experienced, and aims to maintain, means your mindset of asset management has shifted. Alongside simple tracking and analytical data, teams require a system that offers more flexibility to deal with new complex issues.

This is where specifically targeted mid-market Asset Management Software can help.

Store and Back-Up More Asset Data

Alongside growth comes the purchasing of more assets and the subsequent collection of more data. To keep up, you need a system that can handle this constant stream of new data. It also needs to provide the memory that allows you to back up asset data, in case of failure.

Data storage is a common issue with vendors, where they provide a solution that is limited to a certain amount of items. For instance, A smaller system would limit asset managers to inputting 1000 items. Whereas a more professionally-sized product would offer unlimited items to import into an asset management system.

Become More Fiscally Sound

Growth in operations and revenue also means your costs go up. When you take into account factors like purchasing, insurance, and recruitment, margins reduce. Asset Management Software provides a greater focus on what your assets are costing. That includes insurance costs, asset depreciation, and operational costs.

This allows financial teams to identify the TCO of your assets and see what assets are costing the most to run or maintain. Effectively, this leads to better decision-making when it comes to asset procurement and disposal. As well as greater cash flow management to help keep costs under control.

Work Closely With In-House Teams

A more enterprise-focused Asset Management Software will generate greater collaboration. Whereas your current solution may be limited to how many users can access data, a more professional system will have an unlimited user count.

An influx of new team members and departments will be accessing and uploading large amounts of asset data. They’re more than likely spread across multiple sites and locations, too. These include:

  • Maintenance teams
  • Finance teams and accountants
  • Logistics and operations teams
  • Field service workers
  • Workshop employees

Increase Security Measures

As with all premium Asset Management Software, security and support features are upgraded. Products offer benefits such as 24/7 support and the option to encrypt data. A desire for tighter security might even mean investing in an on-premise asset management system with a dedicated support team on-site. Albeit as a more costly solution.

Research shows that 89% of ex-employees have access to at least one application from a former employer. Out of those, 45% reported having access to confidential data. While 62% of employees admitted to having access to data they shouldn’t have.

This shows that whatever asset management solution you might choose, it needs to have an advanced security protocol in place for employee offboarding.

Choosing a New Mid-Sized Asset Management System

You’ve now got the revenue to spend big on a system that will take you beyond mid-market and into enterprise territory. When doing so, keep these five points in mind:

  1. Find the right vendor for you
  2. Choose a product that has the features you need
  3. Make sure the new system aligns with your budget
  4. Set aside time for user training and support
  5. Build a strong and detailed implementation plan

For a more detailed guide on how to choose and implement Asset Management Software, read our AMS buyer’s guide.

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