Asset Management: Meaning and Types

When companies decide to acquire and own assets, they need a plan regarding investment, operating, maintaining, and disposing of assets. They need this plan to make sure that the assets they acquire prove to be profitable for the company. To devise such a plan, they need help of asset management companies.

Meaning of Asset Management

Asset management is the formulation of a strategy for investing, operating, maintaining, upgrading and disposing of the asset. Asset management is important to make sure that the company doesn’t incur costs more than its revenue from the asset.
Asset management is both for tangible and intangible assets and has become an important part of business strategy. Some of the industries that are employing asset management are oil and natural gas, finance, defense, aviation, manufacturing, IT, and service industry.

Types of Asset Management

1. Financial Asset Management

It means management of financial assets like shares, debentures, insurances, bank accounts, etc. It involves investment and disinvestment in financial assets. The process is about finding ways to procure funds and distributing profit among the investors.

2. Enterprise Asset Management

This involves management of fixed as well as intangible assets of an organization. Fixed assets include property, building, machines, furniture and vehicles. Examples of intangible assets are software, goodwill, trademark, and copyrights.

3. IT Asset Management

The management of the IT infrastructure of an organization is called IT asset management. It basically means governing and controlling hardware and software and involves maintenance and contract management of IT tools.

4. Digital Asset Management

An organization has digital assets like databases, software, websites, visual designs, patents and trade secrets, and email addresses. Management of all these assets is called digital asset management.

5. Transportation Asset Management

Transportation asset management is the concept of maintaining the transport facilities of an organization. It is applied to optimize that performance and cost-effectiveness of transportation facilities.

There is no organization today that is not using asset management. With the help of asset management, companies are able to ascertain the longevity of their asset and better management of it.

Comments

3 Best Reasons to Use CAFM System for Your Business

For companies and organizations, facility management is crucial in running their business successfully. Facility management involves monitoring, optimizing and maintaining assets, including equipment, devices, and infrastructure. CAFM, or computer-aided facilities management system, is changing the way facility management is done in a company. The software is used by facility managers to reduce costs, improve efficiency, and streamline processes. The CAFM system can be used in asset management in various industries, such as hospitals, manufacturing plants, office buildings, etc. The software comes with a user-friendly interface, assisting facility managers in planning, executing, tracking, and monitoring diverse business components. Here are some of the best reasons to use computer aided facilities management system in your business. Centralized Data Management In the conventional method, facility management requires handling a huge amount of data spread across...

3 Reasons Why Asset Management Software is Vital for Improving Work Productivity

Asset management encompasses the strategies and practices employed to effectively manage and maintain business assets. Tracking and monitoring company assets play a vital role in saving valuable resources, including time and money. Implementing asset management software offers the convenience of streamlined asset management processes and brings forth various benefits that contribute to enhanced work productivity. Mentioned below are three reasons why utilising asset management software is crucial for improving productivity. 1. Asset Tracking One primary advantage of utilising asset management software is the convenience provided to business managers in tracking and monitoring all company assets. This software enables managers to efficiently locate assets, monitor their usage, and track any modifications made to them. The valuable data obtained from the management software facilitates seamless asset recovery and enhances overall returns for the business. 2. Easy Handlin...

How to Set Up an Asset Management System - 3 Key Steps

The need for an asset management system in an organization has rapidly increased in the past few years. This is primarily due to its beneficial characteristics that allow a business to flourish in any industry. Asset management software helps in monitoring each asset, be it physical or virtual, throughout its lifecycle. Besides this, it helps in maximizing the potential of every asset that your company owns. Here are 3 key steps that can help you set up a reputed asset management system in your organization: Get Your Team On Board If you wish to set up a reliable asset system, it would be wise to get your team on board. This is an essential step because if your fellow team member or management department is not sure about its benefits, then it might get underutilized. It is your responsibility to educate all employees about the advantages of an asset management system. By doing this, you might even get a few suggestions and ideas on how to initialize it in a better way....

maximoesolution

Search This Blog