Its amazing to consider just how much our dependence on IT has increased since a decade ago.I challenge you to find one section of your organization that doesn’t rely on IT to function these days. So much so that efficient use of IT has given many a company the competitive edge over its rivals.
Along with this symbiotic relationship with computing comes a strong dependence on the IT infrastructure supporting it. By this I mean computers, peripherals, screens, software and specialised electronic equipment. Just in the United States this amount is in the $trillions.
But IT assets are notoriously tricky to keep track of and manage, particularly in large, sprawling organisations. Without tight control, monitoring and a strategic approach to replacing and renewing equipment, things can and frequently do descend into chaos. There isnt anyone in the organization with a handle on what IT equipment is being used and by whom. Noone has an handle on software usage and whether that software is properly licensed. The IT helpdesk gets inundated with requests that it can’t deal with because of a lack of information about users’ machines. Operations for upgrading equipment or switching software platforms spiral into months of inefficiency. Does this sound familiar? The truth is that most organizations today face exactly this problem. And what’s more, the cost of these problems can be exorbitant. Especially when you factor in the accounting side of things, where knowing exactly what IT assets you have and their depreciation value can mean significant tax savings.
The bottom line is that without managing your IT assets you could be haemorrhaging unknonwn amounts of cash through related costs. The answer comes down to a process called fixed asset management. When it comes to IT asset management, there are two basic parts that your business needs to be aware of:
Physical Asset Management. Essentially this is all about keeping a record of the IT equipment, hardware and software existing in the company or organization. This comprises information on inventory, as well as where and how each item is used. A robust system of asset tracking provides you with invaluable information on which you can act and introduce greater levels of efficiency.
Financial Asset Management. This is where a business can plug some serious leaks in costs.After recording the equipment being used it is then possible to make a calculation of expected depreciation in value. This information is music to your accounting deparment’s ears, as cutting costs on fixed assets can sometimes be the difference between profit and loss in a financial year.
A lot of businesses are aware of these issues relating to their IT equipment. The question for most is how to go about fixing a typically complex problem. Traditionally spreadsheets are used to try and keep track of assets but these can become unwieldy and are very inflexible and time intensive. However there are now highly sophisticated asset management software solutions on the market that are designed to tackle all aspects of asset tracking, accounting and management. It might be time for your business to think about investing in fixed asset management - it could be key to survival in the recession.
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