What is IT Asset Management and Why is It Beneficial To Get It For Your Business?

The world of information technology is constantly changing, which means that businesses and IT departments have to adapt quickly. In order to keep up with the pace of innovation, many organizations implement new processes and technologies, while decommissioning old ones as quickly as possible. 

That being said, this doesn’t mean that any and all IT assets are free from risk. Using the right asset management system is paramount to ensuring business continuity in case of a disaster, natural or man-made. 

However, did you know that 43% of businesses do not track inventory and assets effectively? 

Regular monitoring of your company’s assets is a key task that will allow you to save both effort and money. The practice of expanding a company’s assets in order to produce considerable returns for its shareholders is known as asset management. Typically, it also involves asset recovery. 

Businesses have a diverse mix of assets, which include both liquid and fixed assets. A business must have authority over its assets in order to maximize its value.

This blog post will explore seven benefits of IT asset management & how it can help your business.

How is IT Asset Management Beneficial For Your Business?

IT asset management is becoming an integral part of any IT firm. A number of software are available in the market that can help you efficiently manage your IT assets. 

You can read more about IT management software in Zluri’s blog post. The article is a comprehensive insight into everything about IT asset management including features to consider when buying one. 

Here are seven ways asset management can be beneficial for your business. 

1. Reduce costs
2. Know which assets are at risk
3. Maintain business continuity
4. Ensure regulatory compliance
5. Help with auditing and reporting
6. Track software licenses and maintenance contracts
7. Boost employee productivity

Read on to learn more. 

1. Reduce costs

One of the biggest benefits of implementing a robust asset management solution is the fact that it can help you reduce costs. These include those associated with the acquisition, installation, maintenance, and decommissioning of software and hardware. In other words, it can help you make informed decisions about which assets your business actually needs.

This will lead to better decision-making and less wasteful spending. Additionally, an asset management system can help you track maintenance contracts and software licenses. This way, you will know when to renew your licenses or if you need to replace them with newer versions. This can save your business thousands of dollars each year.

2. Know which assets are at risk

Another key benefit of IT asset management is the ability to know which assets are at risk. For example, when you purchase new hardware and software, it comes with a limited warranty. This warranty is put in place to protect the manufacturer from potential lawsuits in the event that their product malfunctions or breaks down. 

When using an asset management system, you can track the warranty period of each asset. This way, you will know when to replace or repair individual pieces of hardware before they break down completely and shut your business down completely. This will save you a significant amount of time and money in the long run.

3. Maintain business continuity

Asset management can help you maintain business continuity during a disaster. When you’re using an asset management system, you can track which assets are critical to your business. This way, you will know which assets to replace as soon as possible in case of a disaster. 

For example, let’s assume that you’re a doctor who uses a computer in order to write prescriptions. If the computer breaks down, your business will be affected since you won’t be able to write prescriptions. 

By tracking the critical assets, you can replace the broken computer as soon as possible in order to restore business continuity.

4. Ensure regulatory compliance

IT asset management has the ability to ensure regulatory compliance. Many industries, such as the healthcare and financial sectors, require their employees to use computers. However, computers break down: it’s a fact of life. By using an asset management system, you can track the lifecycle of each asset. 

Moreover, you can also check whether you need to buy new hardware or repair existing ones. This way, you’ll know if your hardware is still in good condition or if you need to purchase new equipment. This will ensure regulatory compliance, as well as reduce the risk for your business.

5. Help with auditing and reporting

Another way asset management can benefit you is through auditing and reporting. At the end of each year, a lot of businesses conduct audits in order to determine if the company is meeting its goals. Additionally, they also audit their financial records in order to file their taxes on time. 

This is when an asset management system can come in handy. By tracking each asset, you’ll have the data you need to conduct an audit or complete financial reporting. Moreover, you’ll also know if you need to replace any broken or faulty equipment. This can save you a significant amount of time and money.

6. Track software licenses and maintenance contracts

Another key benefit of IT asset management tools is the ability to track software licenses and maintenance contracts. Let’s say that you own a bar and you purchase a POS (Point of Sale) system in order to process payments. Once the POS system is installed, you won’t be able to return it. This means that you will have to live with the consequences of your decision, both good and bad. 

For example, let’s assume that you purchase a POS system that requires a specific operating system. If your preferred OS is discontinued or gets discontinued, you won’t be able to patch it. This can lead to significant problems down the road. By using an asset management system, you will be able to track the software licenses for each asset.

Moreover, you can also track the maintenance contracts for the software installed on your computers. This way, you will be able to determine whether you need to renew the contracts or upgrade your licenses.

7. Boost employee productivity

Asset management also has the ability to boost employee productivity. When you know which assets are being used by your business, you will be able to use them more efficiently. This will lead to increased productivity and fewer errors. 

For example, let’s assume that your employees use a spreadsheet to calculate their monthly salaries. If you don’t know which spreadsheet they are using, you won’t be able to determine if there are any errors. By tracking all assets, you will know which spreadsheet your employees are using and be able to track it more accurately. 

This will enable you to identify any errors in the spreadsheet and correct them. This will, in turn, boost employee productivity and reduce errors.

Conclusion

That’s all for this article. Overall, IT asset management is a crucial component of any successful IT department. By tracking all assets, such as computers, software, and networks, IT departments are able to maintain regulatory compliance, reduce costs, and boost employee productivity. 

This will ensure that your business is protected from the unexpected. It will also enable you to be prepared for uncertain events by maintaining a healthy level of preparedness. By implementing an asset management system, you will be able to reap all of these benefits, as well as many others.

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