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

All You Need to Know about Asset Management for Companies in the Middle East

Top asset management companies in UAE manage different kinds of physical assets. Asset management is required in a company to plan and control the acquisition, maintenance, operation, renewal, and disposal of organizational assets. The types of asset management classified into 3 categories are physical, financial, and contractual. Physical Asset Management - It is the process of controlling things like inventory management, fixed asset management, infrastructure, and public asset management. Financial Asset Management - This refers to developing an investment strategy, managing procurement, controlling the budget, and handling cash flow, bonds, and stocks. Contractual Compliance - It streamlines processes like digital asset management, IT asset management, contractual maintenance, and management of intangible assets. Challenges in Managing Company Assets Manually Monitoring and managing assets manually create huge problems in calculations due to human error. Lack of aut...

Asset Management Solution for Asset Intensive Organisations

Resource and asset optimization are crucial aspects of any organization's growth. Asset-intensive organizations integrate asset management systems to effectively manage their fixed asset which include maintenance, longevity, and productivity. As per the reports, the global market of asset management software is expected to reach 5.2 billion U.S. dollars in the year 2024. Maintaining asset health and operational excellence is possible with this futuristic solution. Here are some of its benefits: Increase Efficiency Asset management systems utilize centralized data for carrying out a variety of tasks related to the fixed and intellectual property of the organization. The focus remains on rapid scaling through increased traceability and reusability of assets. Predictive maintenance is another crucial element of asset health maintenance. It helps in eliminating any unplanned downtime and unexpected equipment failures. Customized Solution Every organization has different r...

Top Techniques for Using IoT and Connected Devices to Improve Asset Management

The secret to establishing a competitive edge in the manufacturing sector is asset management. And the Internet of Things (IoT) makes it simple to improve your asset management skills. You can better monitor your remote assets using IoT and connected devices. Thanks to the adoption of IoT, asset tracking has become a thing of the past century. With connected assets, several sectors are replacing their outdated systems. Even though the initial cost of adoption may be high, it has significant long-term benefits. We'll be concentrating on IoT use cases and connected assets in asset management systems in our blog today. Follow along as we explore all the IoT in industrial applications possibilities. What is the IoT Implementation Engine? The use of IoT has been increasing for a while. By 2025, there will be 37 billion industrial IoT connections, predicts research from Juniper Research. What is the cause of this rapid adoption? Explore now. Asset management systems built on the Interne...

maximoesolution

Search This Blog