Benefits of IT Asset Management System
An IT Asset Management System has its complexities but it not impossible. With the involvement of people who fully understand it, your organization’s tools can become the priority of this process. There are a lot of components in this and each is important. For instance, in investments, the IT costs have to be evaluated, deliberated, and measured to ensure the ROI before spending. This should be a standard in every business practice of organizations.
Risky to Finances
There are a couple more of the processes that need to be gathered from asset data compared to the majority of what IT and financial leaders learn. Some of the obvious examples include tax calculations and IT vendor contracts. The majority of the companies have to pay a yearly property tax based on the company asset value. The IT and procurement departments are normally efficient in recording newly acquired assets, but not as diligent in removing assets after disposing of them. Bad management of assets causes asset value overstatement.
Another risk that is usually related to not having it is non-compliant. About 68% of enterprises do asset management auditing annually at least once. The majority of organizations have no realization of when auditing is done and if the company violates usage management. This can cause them big fines if they violate it. A firm can win a lawsuit against another company that does not have asset management. If found non-compliant, they can be held liable for paying millions of dollars.
It may be less obvious but the impact of unsatisfactory asset management is disturbing because the company could experience security risk. When there is no clear idea of the IT assets, it is hard to find out if there is a security attack and determine your company’s vulnerability to this. The risk assessment, incident response, and patching are a few of the most important processes in IT. These processes utilize the data gathered by IT management to make sure completeness and smart decision making. An outdated, incomplete and poorly managed assets could be detrimental to your company’s security events.
Money wasted is a negative impact of not having IT asset management. Actually, in a span of 4 years, a study results from an estimation of over $30 billion wasted by the companies that do not have it. If a lot of departments in the organization just purchase assets whenever they think there is a need for it, then an overlap of purchases will happen. A centralized program dedicated to management makes sure this does not happen. One of the jobs of the IT Asset Management System is addicting once a year and any unrecorded expenses will be detected.
There is No Proper Documentation and Equipment Safety Check
Inspection matters a lot and reviewing the asset means assessing the general compliance, which is not considered an inspection of certification. When the equipment is not checked and they just assume it is in good working condition, it creates a risk to everyone in the organization. Therefore, when it is inspected, it could easily be shut down to refrain anyone from using it. This will be documented and recorded so it can be fixed.
IT Asset Management System is a necessity for any organization to avoid extra costs, failing and eventually losing profit. Moreover, when you are making a business plan, this should always be included because you cannot risk not having it.