ASSET MANAGEMENT AND SOFTWARE
An asset can be defined as anything owned by an individual that has a cash value, including property, goods, savings, and investments. Asset management, therefore, refers to the management of the assets by money managing teams. Though the major emphasis is on managing the investment portfolios of a company, asset management also includes management of physical assets such as money, equipment and property, as also the non-tangible assets such as information and the workflow processes.
Assets, in any commercial set up, include the monetary investments, plants, infrastructure and its human resources. Asset management is, therefore, a process that aims at the optimum utilization of resources for maximum returns at the minimum investment or costs.
The first priority of any asset management team is to identify the company’s ‘assets’ or resources. Once these are identified, the team can then focus on the business process or, in other words, understand the functioning of the tangible or non-tangible assets, which can be any of the following.
Preparing the monetary investment portfolios is an important aspect of asset management. The investment portfolios give a clear picture of the income- expenditure ratio, as well as the financial status of a company. Based on the study, the asset management team can remove deficiencies, or modify the investment structure to maximize returns.
Property, plant, and equipment are the tangible assets of the company. Asset management involves the study and analysis of the actual property on which the plant is built and all the equipment that is required to run the business. Plant and equipment need effective management. Their depreciation values needs to be studied. Their analysis helps the team to arrive at a decision whether to repair or replace machinery in order to reduce running costs.
Human Resources include the non-tangible resources of the company. Managing human resources involves studying individuals, departments; divisions, planning for improvement of skills, improving comfort level and security, and, thereby evolving a policy for maximum output by the employees.
Asset management is the management of a company’s assets by a team dedicated entirely for this purpose. The company’s assets, apart from its capital portfolios, also involve its infrastructure, plant, property, and human resources.
Now, consider a scenario in which these assets have to be managed manually. These will involve some disadvantages. First of all, the chances of human error increase, not to mention the consumption of the time of the professionals involved. This in turn means waste of resources and also the resulting inefficiencies that slow down business returns.
The answer to this problem lies in asset management software. The software is designed to keep a track of the company’s assets, provide for analysis, and thereby prove an effective tool in managing a company’s resources. In other words, asset management software helps to keep track, monitor and analyze business processes and resources. It automates the work processes that were previously manually done. This, in turn, helps to speed up the work and minimize errors.
Another advantage is that people who are involved in manual file management can be diverted to more productive work. Also, skilled professionals will save time in searching for required data. This results in the optimum utilization of resources, thereby adding to the productivity of the company.
As said, asset management involves the management of all assets in a company by a professional team. Now, to manage these assets, the team first of all needs to know what the assets of a company are. This is where the role of the asset management software comes in.
The software can keep a track of an asset. This includes its initial purchase value, running costs, service costs, depreciated value, and upgrades. The team can then use this information to assess the present value of the asset. The information can also help the company charge individual departments for the usage of that asset. The current value and condition of an asset can also help the procurement department of a company in that the people can decide whether the asset is in a usable condition, needs upgrades, or needs to be replaced altogether.
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