Things You Should Know About Asset Consultants

For some businesses, the efficient tracking of their installed base or in-service equipment, and also the management of their spare parts inventories are main reasons in determining the prospects for internal productivity and customer service profitability. On the flip side, many organizations do not yet utilize a comprehensive asset tracking and management process to ensure the supply of quality data that can be used to generate the business intelligence that will ultimately save them money and improve efficiency. This is unfortunate, because the tools are readily available - it's simply a matter of making it a top priority.

There are numerous definitions of "asset management", although most deal primarily with financial factors. Some are according to evolving upkeep management systems; some on the management of factory floor equipment configurations; and some for the purpose of monitoring network equipment or maybe railway car and container locations. Alternatively, irrespective of what situation or application your business deals with, the core definition remains constant; asset management is "a systematic process for identifying, cataloging, monitoring, maintaining, operating, upgrading and replacing the physical assets of the business on a cost-effective basis".

To be truly effective, the asset management process must be built upon a foundation of widely accepted accounting principles, and supported through the proper blend of sound business practices and financial acumen. It can provide management having an effective tool that may be used to derive better short- and long-term planning decisions. Because of this, it's an element that every business should consider adopting - and embracing.

Poor asset management leads to poor data quality - and poor data quality can negatively affect the business over-time. In reality, experience shows that there are a number of common causes that may lead to poor asset management, including lack of business controls for managing and/or updating asset data; lack of ownership for asset data quality; and an out-of-balance investment professional in people, process, data and technology. Likewise, some businesses may not consider asset management to be a critical function, focusing on audits only; while others might not consider asset data to be a significant component of the business's intellectual property.

The primary symptoms of poor asset management are usually fairly ubiquitous, and may include everything from numerous compliance and security issues, to uncontrollable capital and/or expense budgets, excessive network downtime and poor performance, under- or over-utilized assets, incompatible software applications, increasing operational costs and headcount, and non-matching asset data derived from different organizations and/or business systems.

What's more, poor ongoing asset management practices can impact a business by degrading customer service delivery, polluting the current installed base of data and distracting sales resources with customer data issues As an example, Service Delivery might be impaired by inaccurate depot sparing creating customer entitlement issues, increasing escalations to upper management and lowering customer support. An uncertain installed base lengthens contract renewal cycle-time, limits revenue opportunities and inhibits technology refresh planning.