Top 10 IT Asset Management Best Practices for Maximizing ROI and Minimizing Risk
IT asset management and maintenance is an absolute must for smooth business operations. The completeness and accuracy of IT asset information are fundamental to IT service quality and funding. When IT asset information is accurate, complete, and accessible, it gets widely used by many groups/departments in the organization.
The role of ITAM and software asset management (SAM) has grown into a strategic function that maximizes value from IT investments. This blog delves deep into what is ITAM, the need for IT assets management, and best practices in information technology asset management.
Table of Contents
What is IT Asset Management?
Information technology asset management or ITAM is a system of business practices that seeks to maximize the value of IT assets within an organization. IT asset management combines financial, contractual, and inventory data management to track the status of IT assets across their lifecycle. Business growth and IT growth go hand in hand. More sales and revenue means more employees, and more employees means more computers, servers, and larger networks.
What is an IT asset? In simple terms, IT assets include hardware and software systems, or information that an organization values. IT assets have a finite period of use. To maximize the value an organization can generate from its assets, the asset lifecycle needs to be efficiently managed. The IT asset management lifecycle includes stages like planning, procurement, deployment, maintenance, and retirement.
Growing businesses would require an IT assets management protocol that allows you to manage hardware and software assets efficiently throughout their lifecycle. What is ITAM? IT assets management is a system of business practices that seek to maximize the value of IT equipment within an organization. Here is how asset management in IT applies to each category –
Hardware
Organizations with robust IT infrastructure can own and manage a lot of computer hardware, that includes, desktops, laptops, keyboards, printers, copiers, and more. To ensure that the hardware is well-maintained, organizations must track the assets they own, where they are deployed, how they are used, their repair status, and when they need to be replaced or disposed of.
Software
Software assets are licensed by the organization depending on the number of users that will install the software. IT asset management processes for software enable organizations to monitor their compliance status with the end-user licensing agreements that allow them to use licensed software applications. The role of IT asset management is to help organizations extract the maximum value from their investments.
Need for IT Asset Management
Wasted information technology (IT) remains a challenge in most organizations. A recent survey showcases how organizations need to change their focus and investment priorities in governing IT assets to reflect the changing landscape and new ways of licensing hardware and software. The survey also reveals that –
- A vast majority of respondents believe that they lack a truly effective ITAM initiative in place in their organizations.
- Nearly 90% of respondents believe that the rapidly changing business, regulatory, and technology environment makes it more challenging to enhance ITAM maturity in their organizations.
- Organizations are seeking external assistance to supplement internal capability in addressing their biggest pain points.
Increasing complexities and pressure to optimize costs are expected to drive an increased focus and investment in ITAM. Current methods of managing IT assets are lacking in several areas that result in ineffective utilization and tracking of IT assets. ITAM tools help organizations overcome these challenges. Why do you need asset management in IT?
Lack of visibility
This is one of the biggest challenges faced in IT asset management. Lack of visibility into IT infrastructure makes it difficult to track and manage assets, which leads to inefficiencies and increased costs. Asset IT management systems can help overcome this challenge by providing real-time visibility into IT infrastructure.
Manual processes
Manual methods of tracking and managing assets can be time consuming and error prone, leading to delays and inaccuracies in IT management. Automating IT asset management processes like asset discovery, tracking, and reporting, helps overcome this challenge.
Compliance
Compliance with industry standards and regulations can be challenging for IT asset management. Implementing IT asset management solutions helps organizations manage and secure their IT assets so that they comply with compliance requirements.
Shadow IT
Shadow IT refers to the use of IT resources without the knowledge or approval of the IT department. Such transactions can lead to security risks, as well as inefficiencies and increased costs. To overcome this challenge, organizations must implement policies and procedures to prevent the use of unauthorized IT resources.
Scalability
As organizations grow and their IT infrastructure expands, managing IT assets can become more challenging. Overcoming this challenge requires organizations to implement IT asset management solutions that scale with organizational growth.
Costs
Managing IT assets can be costly when manual processes are followed. Organizations need to balance the costs of IT asset management with the benefits of a well-managed IT infrastructure. Implementing IT assets management solutions provides cost-effective and efficient management of IT assets.
Integration
Managing disparate systems in the organization can be a challenge for the IT team. Implementing an ITAM solution helps integrate disparate systems like Enterprise Resource Planning, IT service management, and other IT systems, for a single point of truth.
Decoding the IT Asset Management Process
IT asset management is crucial for organizations, as it helps them ensure that their IT assets are utilized efficiently and effectively. Efficient management of IT assets enables organizations to improve their overall productivity, minimize costs, and ensure compliance with regulatory requirements. Regardless of the industry to which you belong, it is important to prioritize IT asset management to remain competitive and achieve business goals.
The asset management IT is not a one-time project, but rather a continuous process that teams need to execute on a regular basis as and when assets, goals, and tools change. Let us look at the steps in the IT asset management process.
Create Asset Inventory
The first step is to get all the assets organized by creating a detailed IT inventory. The IT asset inventory includes complete details on what assets are owned by the company, where they are located when they were acquired, and the cost at which they were purchased. The IT inventory must be created in an easily readable format and stored at a centralized location for easy access. Update access to this inventory is usually with the IT department.
Calculate lifecycle costs
Once the asset inventory is created, the lifecycle for all the assets listed must be calculated. For each asset the average lifespan is calculated by factoring added costs, maintenance capital, and disposal costs. The inventory is made accurate and actionable by calculating the life of the asset.
Monitor assets
It is important to monitor the asset throughout its lifecycle. Assets can be tracked via an ITAM tool. The aim is to continuously monitor IT assets by keeping a close eye on things like contract, warranty, and license. Continuous tracking of the asset throughout its lifespan helps you stay ahead of the fourth step in the asset management process, which is maintenance.
Maintenance
Maintenance of IT assets involves activities like repair, upgrade, servicing, and replacement. All maintenance activities should be duly tracked by the ITAM tool so that the data can be used to understand the overall performance of the asset. Future decisions regarding the purchase of similar assets can be made based on the performance data.
Plan finances
The final step in the IT asset management process is planning the budget for IT assets, their costs, and their lifecycle stage, so you can plan for future purchases effectively. The main goal of financial planning is to determine the budget required for maintaining and improving service levels for the most important assets in the organization. An asset that was managed successfully with a high level of service, like a service desk and dedicated team, will require the same level of service going forward. Assets that have underperformed may need higher levels of service in future, which will increase the cost of maintenance.
Getting Started with ITAM
We have listed the key steps in the IT asset management process, but how to get started? A complete overhaul of the way IT assets are managed currently may seem like a daunting task. The best way to implement ITAM is to start from where you are and gradually extend the process to the entire IT asset management. Automating the information technology asset management process provides significant benefits to asset management. You can start automating the current process.
Start by evaluating and analyzing the current process and infrastructure. A thorough analysis of the process helps you identify areas that need improvement and make gradual changes to optimize the asset management strategy. Focusing on the most critical aspects of asset management and addressing the biggest pain points first, enables teams to achieve quick wins.
The choice of the ITAM tool for automating IT asset management is critical for the success of implementation. You should choose a tool and an approach towards asset management as per the requirements of your business. Moreover, the tool must be flexible to adapt to the emerging needs of the organization. A no-code workflow automation tool like Cflow can automate the IT asset management lifecycle effectively. The visual form builder in Cflow enables even citizen developers to build workflows easily and quickly.
Once the software is chosen, the next step is to map out the steps in the process. An accurate process map helps identify the bottlenecks and the repetitive steps that can be automated. Identify the dependencies of these steps and include them while defining the workflow. When you use a no-code workflow software like Cflow, all you need to do is arrange visual elements and connect them according to business rules.
Ensuring collaboration and transparency is important for the success of IT asset management. You need to ensure a complete buy-in from the stakeholders before you implement the automated workflow. You should also ensure that the right people can access the information as and when needed. This fosters a more efficient and productive work environment.
Why is ITAM important?
For starters, ITAM provides a single source of truth. One of the most common issues faced by organizations is that assets are tracked in a ton of different places. Having disparate systems to track and manage assets only leads to chaos and inconsistencies. Making informed decisions on the status of assets is challenging without access to relevant data. An IT asset management tool brings order, and offers a single source of truth for IT teams, the management, and ultimately the entire organization.
Another reason why ITAM is important is that it keeps asset information updated and guides teams in waste elimination and optimal resource utilization. IT asset management software also saves money by avoiding unnecessary purchases and cutting licensing and support costs. The IT team gets better control over the assets, which enforces compliance with security and legal requirements.
Lastly, ITAM tools enable productivity without compromising on reliability. With digital transformation altering the way organizations operate, modern asset management goes far beyond just tracking laptops and desktops. The asset management processes need to keep up with evolving needs of DevOps teams. These tools need to efficiently deliver new functionality and services quickly, without compromising on quality and reliability. The increased control, visibility, and responsibility provided by ITAM tools helps teams reduce excess consumption or overprovisioning of assets.
Features of ITAM Software
IT asset management is a discipline that is based on the collection and analysis of asset information. Staying updated on the data pertaining to IT assets helps organizations make informed decisions on how IT equipment is managed. Here are the key features of ITAM software that must be considered while making a choice –
Complete tracking of software and hardware
A comprehensive data tracking system is at the core of every IT asset management system. The ability of the software to track assets and their attributes across several dimensions is a critical value driver for organizations looking to leverage IT asset management. The inventory tracking capabilities of ITAM tools extend beyond a simple list of assets owned by the organization, to include complete details and specifications for hardware and software that provide deeper transparency into IT capabilities.
IT asset management software can be used to track their computing assets, along with details like product number, SKU, and date of purchase. Specific details like CPU type, processor speed, memory, available disk space, IP address and other parameters, are also included in the asset tracker.
Compliance management functionality
Software license compliance is a matter of concern in most organizations that license third-party software. If you license software to multiple users at your organization from a third-party supplier, you may be subjected to external audits that ensure that you are compliant with the SLA. The bottom line here is that organizations need to remain compliant with license agreements to avoid expensive software audits that attract heavy fines.
IT asset management software allows organizations to automatically detect what software is installed on each computer that is connected to the company’s network. Automated ITAM systems can be cross-referenced with SLAs to ensure compliance and to avoid heavy fines associated with unsuccessful software audits.
Software usage data and analysis
In some cases, an organization purchases 10 software licenses but installs the software 15 times. This warrants penalties for violating the SLA with the software provider. When IT asset management software is used, the excess costs associated with unused software licenses. Software applications can be used to track the number of machines on which a certain application has been installed, and the actual usage statistics for the application.
Purchasing functionality
In some organizations, the procurement function is tasked with tracking IT purchases. The IT inventory is managed through a separate system. Very often, these two systems are not linked. This means that the IT department lacks the visibility into SLAs and contracts that govern software licenses, hence, may not be able to properly plan for future purchases.
The IT asset management software should provide the big picture view of how the organization is addressing its needs for software and hardware by integrating the IT and procurement functions. Transparency into purchasing allows IT asset managers to budget correctly for turnover of IT inventory or plan for new purchases according to listed inventory approaching the end of lifecycle.
What is an IT Asset Management Database?
While we discuss IT asset management solutions, it is important to explore ITAM databases. The ITAM database can be divided into – physical, financial, and contractual.
Physical
The physical information on the assets is gathered using the discovery and inventory sources to accept data that shows what is deployed. This data also provides visibility into all IT assets owned by the organization, including those that are in the stockroom and are not yet deployed or scheduled for retirement. The stockroom information is usually gathered manually, bar code readers or RFID systems.
Financial
The second component of ITAM is the financial data that is collected from a purchasing system or from a purchase order. It indicates the purchase order number, vendor name, quantity, model and make, purchase price, depreciation, cost center, and other financial attributes that the organization might need visibility into. Tracking financial attributes of the asset can be used to understand total cost of ownership, return on investment, and assign costs to projects and IT business services. Financial data on assets also helps organizations understand technical debt-associated legacy applications, which in turn enable better decision making about end-of-life for an asset.
Contractual data
This data is gathered from the reseller directly or from the vendor/supplier, or from the contract management system. Contractual data includes information from the final negotiated version of the contract and not the iterations during negotiation. This data includes version number, license entitlement, license type, vendor SKU, training days, service levels, and other important contact info. For cloud or Software as a Service purchases, the details will include quantity, license type, device count, purchase price, contract timeframe, and others.
ITAM versus Configuration Management
Configuration management can be considered a separate discipline from IT asset management. IT asset management is the process of creating an inventory and maintaining, upgrading, and disposing of IT assets. ITAM includes software, hardware, networks, data, and more. Configuration management focuses more on documenting the relationships between hardware, software, and networks used by an IT organization. The aim of configuration management is to provide the information required to make better business decisions and run efficient ITSM processes.
Having a large number of assets means that you will have a large number of interdependencies required to be tracked in a configuration management database (CMDB). Almost all configuration items in a CMDB will be tracked in your ITAM tool, but not all items tracked in your ITAM tool will also be found in a CMDB.
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Benefits of ITAM
When IT asset management is not prioritized, there are various risks your organization could face, such as lost devices and potential business disruptions. A thorough IT asset management program provides various operational and financial benefits for your organization. Let us delve into the benefits that ITAM brings to the table –
Streamlined asset management
A comprehensive IT asset management strategy will provide organizations with a clear process to upload assets, assign them to employees, send things for repair, and more. Streamlined asset management workflows can significantly reduce manual effort and decrease the risk of errors or siloed information.
Deeper visibility
ITAM tools offer deep visibility into asset statuses by providing an in depth view of your IT environment. These tools play a pivotal role in helping an organization define and control its IT infrastructure, from scratch. With all the asset data in one centralized platform, teams will be able to access the full lifecycle history of your IT devices. You can clearly see who a device is assigned to over its life, the number of times it has been repaired, if there is a remaining warranty on it, and any other relevant data points you are tracking.
Improved operational efficiency
Streamlining the asset management process enables teams to save a lot of time and resources in managing IT assets. As opposed to manual tracking with spreadsheets, the team would rather deploy devices quickly with as little as a barcode scan. Improving the overall efficiency of the asset management workflow gives everyone time to work on other projects that are important to the business.
Optimal Utilization of Devices and Assets
When you have visibility and control over the full lifecycle of the IT hardware, you can easily optimize its utilization. Optimal asset utilization ensures that the devices are being used to their best ability and that all employees are equipped with the right tools to perform their jobs effectively. Unwanted IT spending can also be reduced by optimizing asset usage and controlling IT asset purchases.
Improved compliance
An IT asset management software helps organizations stay compliant and be prepared for audits at all times. By knowing exactly which assets are part of your network. You can identify any rogue devices or other threats to increase security. Access to accurate, real-time data on your asset inventory ensures that you remain compliant with state or federal regulations or funding requirements.
Improved warranty and contract management
When asset records are maintained separately for each asset, you can also store warranty and service contract information for every IT asset. Having an updated and complete record can help you forecast when an item might need replacement or a service contract renewal.
IT Asset Management Best Practices
Embrace a team-centric approach
Creating a culture of transparency and collaboration can be challenging in ITAM. The team-centric approach helps you decide on what you need to track for each asset. A finance team will need to know the cost of assets while the Ops team will focus on the lifecycle of those same assets. So, you should work with teams around the business to create a standard set of qualities that are tracked across all assets in the ITAM tool.
Start from current state
The IT infrastructure library (ITIL) is a widely accepted set of best practices designed to support IT service delivery. One of the 4 principles of ITIL is to start where you are. This encourages teams to analyze the services, methodologies, people, and tools you already have and use those insights to evaluate current status and where and how to begin. Teams can benefit from first honoring the people and systems already in place, and deciding what you will continue using, what you will change, and what you will build upon.
Adopt a top-down approach for quick wins
It would be a good idea to first focus on the assets and services that are most visible and most critical for your business, instead of diving right into the nitty gritty of infrastructure and microservices. You can consider the following questions for identifying some quick wins –
- What type of IT devices are important for you to track?
- What type of software licenses do you track?
- What do you need to track when onboarding employees or contractors?
- What do you need to understand about them?
Once you have answers to all these questions, business leaders will be able to see the value of ITAM investments.
Choose the software that matches your needs
There are a few common features that everyone needs when you are investing in an ITAM tool. There are also some advanced features that only mature ITSM teams can benefit from. It is better to take an adaptive approach by starting with where you are today and scaling as you go. The ideal tool must limit context switching and keep asset information alongside the operations and support workflows. The tool must also combine an asset repository with the configuration management database.
Communicate and celebrate success
The rate of adoption of ITAM can be increased with seamless communication. Teams that celebrate success throughout the process have several touchpoints with the business than a team writes a wrap up blog once everything is sorted. As you work towards completion, you can offer ways for teams and individuals to get involved. Support and operations can get trained on finding assets fast and business teams can get a run down of what gets tracked and why.
Conclusion
Business operations rely on a range of physical assets, from computers and servers to equipment machinery and vehicles. These assets need to be constantly selected, acquired, deployed, managed, reassigned, and retired, for smooth business operations. Tracking the company’s most valuable and important assets is crucial. When asset information is accurate and accessible, all the teams can use them. The IT asset management system helps track and manage all your assets. ITAM tools automate the entire asset management workflow.
A workflow automation solution like Cflow can automate the workflow without the need to write even a single line of code. Businesses can make informed decisions while managing their IT assets with the insights provided by real-time reports and analytics from Cflow. If you are looking to automate your IT assets management workflow, then sign up for the free trial right away.
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