A key part of the IT asset management (ITAM) process is tracking and planning for the lifecycle of assets your company uses. Managing the lifecycle of assets helps determine when new assets need to be purchased, and old assets should be disposed of. Establishing a consistent cycle helps the entire process of acquiring and disposing of assets run smoothly to avoid disrupting business activities.
This article will cover what asset lifecycle management is, best practices, and the stages of this process. We’ll also link you to a full PDF with more detailed information at the end. Keep reading to get all the details.
Asset Lifecycle Management
Asset lifecycle management involves monitoring and maintaining assets from when they are first purchased until they are disposed of or sold after they no longer have a use within the business.
Monitoring the lifecycle of assets helps manage:
- Routine maintenance that all computer equipment requires at different points in time.
- Important updates for things like software assets that have technology change frequently.
- When assets need to be replaced as they begin aging in their lifecycle.
Overall, it’s important to thoroughly manage each of these aspects that go into the IT asset lifecycle. To do this effectively, you can follow some common best practices.
Asset Lifecycle Management Best Practices
To get the most out of asset lifecycle management, here are some best practices.
- Inventory: Having a complete inventory of assets on hand will help manage their lifecycle effectively. Upon purchasing new assets, they should all be inventoried or accounted for in your system. Once assets are replaced or disposed of, that should also be accounted for to accurately reflect how much equipment is on hand.
- Asset lifecycle management software: One of the best ways to track and create an inventory of assets is through open-source software for asset management. Many of these software programs can also help schedule and notify you when it’s time for routine maintenance of equipment.
- Coordinate who manages what: Coordinate which members of your IT team are supposed to manage various parts of the asset lifecycle. Assigning teams to specific tasks like inventory, maintenance, audits, etc., can be helpful. You can also divide teams to manage different types of assets like hardware or software.
- Estimate when assets need to be replaced: When you get a new shiny computer or other tech tools, it can be hard to think about when it’ll need to be replaced. However, all asset lifecycles come to an end. Plan for how long you think each asset will last and what budgetary considerations will need to be taken once replacing the current assets.
Considering all these best practices will help manage the asset lifecycle effectively. It’s vital to have a plan in place to avoid any confusion or frustrations that can affect all business operations greatly.
Asset Management Lifecycle
Now that you know more about the asset lifecycle and how it can affect the management of IT equipment, let’s look at the actual steps in the process to manage it effectively. There are typically five key stages of lifecycle management that progress as equipment ages.
What Are the 5 Key Stages of Asset Lifecycle Management?
The five key stages of asset lifecycle management are:
- Creating an inventory: As mentioned, inventory is a big part of managing the overall lifecycle of assets. When you begin an ITAM system, it’ll be one of the first steps you take to set your company up for success. All assets must be accounted for, including hardware, software, cloud-based, and fixed assets you own.
- Asset procurement: This is when new assets are purchased. During the procurement stage, the IT team uses an appropriate budget to buy new equipment that can be allocated to the company’s current needs. Purchasing new equipment is usually done due to business expansion or replacing old assets that aren’t functioning properly.
- Asset deployment: Here is where new assets are set up and deployed into the business’s daily operations. IT teams work to smoothly transition to new equipment without disrupting any business activities. This usually involves a full risk management process to assess and manage the situation effectively.
- Routine maintenance: Once deployed, assets must be monitored and maintained regularly. Having a scheduled maintenance routine helps this process run smoothly. It also keeps assets functioning well to prevent anything from breaking down, along with extending their lifecycle.
- Disposition: Unfortunately, all assets have their lifecycle come to an end. In this stage, assets are disposed of or sold. In most cases, IT teams will start by trying to sell old assets to get the most value back from them. In cases where they can’t be sold, they will be disposed of properly, following all legal regulations.
A lot goes into each of these stages of asset lifecycle management. Having a plan and a knowledgeable team managing it is important to get the best results. Partnering with a IT asset management company can also be a great way to ensure that you are getting the most value out of your assets throughout each lifecycle stage.
Asset Management Lifecycle PDF
To get additional information and tips about the asset management lifecycle, you can download the complete PDF here.
How Multiply Can Help
If you would like help managing the entire asset lifecycle from beginning to end, Multiply is a partner you can rely on to assist in this process.
Multiply is a team of IT consultants that partners with businesses of all shapes and sizes. We help create streamlined IT asset and data management systems to make the lives of our clients easier at every stage of the asset lifecycle.
To learn more about how Multiply helps with asset management, contact us today!