We Need Asset Management!

[Terrie Wolfe]

I realized recently that I subconsciously cringe at when I hear someone say “we need Asset Management”!  I know it’s because each person within earshot has a different definition for what that means.  Not only that, they typically don’t have a clue as to what is involved in asset management.  The image that comes to my mind is that of a really large elephant in a very small room!  

What is IT Asset Management?

Wikipedia defines IT asset management (ITAM) as “the set of business practices that join financial, contractual and inventory functions to support life cycle management and strategic decision making for the IT environment. Assets include all elements of software and hardware that are found in the business environment.”

I’ve discovered to find out what is actually meant when they say “we need asset management” we need to understand what the business challenges they are expecting asset management to resolve.

What do You Really Want?

I know there are real business requirements driving the “we need asset management” comment.  Understanding what those needs are and then getting those business requirements documented and prioritized is a critical first step. 

For many organizations, the requirements tie directly to cost avoidance or cost savings.  It is frequently around discovering what assets they currently have and then linking costs to the hardware and software assets.  Or perhaps it is a requirement to manage expensive software licenses to avoid under-utilization, or to avoid penalties for over-allocation.

What are You Looking to Accomplish?

Maybe inventory management is enough – it depends on the requirements.  Even if it’s not, in order to be successful in IT asset management, you need to be successful in IT inventory management. Understanding what assets and how many you have is the asset inventory function.  This is a key part of asset management.  If inventory management is not in place, or is not accurate, then asset management will not be accurate.

A first step, or phase, should be a successful inventory management implementation.  This then provides a framework from which to build on the financial and/or the contractual elements needed for asset management.  Categories of hardware and software can be used to logically break down the implementation of inventory management into workable steps.  For example, the procedures and the information tracked for server inventory management is not the same as the procedures and information tracked for laptop inventory management.  The IT functional teams involved in each are also usually different teams.   The same is true for other categories of hardware and software, so it is important to plan for each.  It’s also important to realize that inventory management and asset management are functions that keep data current.  This is not simply a once and done project. 

IT Asset Management doesn’t have to be the elephant in the room.  It’s about planning and deploying a long-term, solid solution that meets the business needs and provides a framework from which to build over time.