IT asset management (ITAM) plays a key role in business operations. Most modern businesses use technological components throughout daily operations. Properly acquiring, managing, taking inventory, and tracking the lifecycle of IT assets throughout a company keeps things running smoothly and helps get the most value out of the equipment you invest in. 

This article will take a deeper look into the IT asset management process.You’ll also learn how an asset management team can increase your company’s efficiency and save you money in the long run. Keep reading to get the details and learn more about the different types of services an asset management team might offer. Keep reading to get all the details. 

ITIL Asset Management Process

ITIL is an acronym that stands for Information Technology Infrastructure Library. ITIL is a framework that is designed to create a standard procedure for the delivery of IT maintenance, and the overall lifecycle of IT services within a business. Within that framework are standardized guidelines for how ITAM services should be delivered. 

Hiring a partner  that can help your IT team stay within the ITIL guidelines is a good idea to ensure you get the best results. 

What Are the Types of Asset Management in IT?

There are six types of asset management defined by the ITIL. Those types of asset management are:

• Financial management for IT assets
• IT asset procurement
• IT asset inventory
• Software license management
• IT asset requisition
• IT asset disposal

Each of these types of ITAM has a place within a business. There are also specific processes to keep each asset management category running smoothly. The next sections will break down each one in more detail. 

Financial Management for IT Assets

As with any business operation, financial components need to be considered. Before making any big decisions with IT assets, it’s important to figure those financial aspects out. The financial section of ITAM covers budgeting, accounting, financial goals, and policies. A lot of it has to do with accounting regulations and correctly adding assets to the books and financial statements. 

To keep this process simple, it typically consists of:

• Defining assets in the accounting books under capital assets.
• Assigning an estimated value of the assets in their current state.
• Receiving invoices for newly purchased assets and regularly occurring expenses from assets, like software with monthly or yearly charges. 
• Paying invoices and amounts that are due. 
• Adjusting asset value over time for depreciation. 
• Adjusting financial records when assets are sold or disposed of. 

Following this whole financial process helps a business stay on top of its expenses and the value of the assets they have on hand. 

IT Asset Procurement

Asset procurement is the process IT teams follow to purchase new assets for the company. The process provided by the ITIL helps ensure assets are purchased from suppliers at economical costs and with good quality. The typical process for procuring new assets will be:

• Creating a purchase request with reasoning for why new equipment is needed. 
• Getting information from vendors about different types of equipment and how much it will cost. 
• Obtaining approvals to purchase equipment in defined quantities that fit within the company’s budget and needs. 
• Placing and closing the order for new equipment. 

Following this process while buying new assets ensures everyone in the company is on the same page. This process can be time consuming and tedious, making it difficult to prioritize within the rest of an IT team’s functions.

IT Asset Inventory

Along with the financial and procurement processes, you also need to keep track of the current inventory of IT assets that are on hand. A reliable inventory system also helps ensure other areas of ITAM can run smoothly. The typical process for IT asset inventory is:

• Using discovery tools, software, and other processes to locate all digital and physical inventory of IT assets being used within a company. 
• Determining appropriate systems for tracking inventory on hand. 
• Creating systems for regularly auditing current IT asset inventory. 
• Creating processes and estimations for when assets must be replenished, refurbished, or disposed of. 

The inventory process ensures you know which assets you have on hand and how often you should be checking up on those assets. Consistent auditing and maintenance are important to ensure business operations can continue running smoothly. 

Software License Management

The majority of businesses will use a lot of software programs in their daily operations. Software license management helps manage the purchase, utilization, and retirement of commonly used software assets. The typical process of software license management is:

• Purchasing and receiving software licenses as needed. 
• Regularly monitoring licenses to ensure they stay up to date. 
• Performing audits to ensure the software is still working well and being used effectively. 
• Retiring old software and getting rid of licenses that are no longer being used. 

Managing software licenses can be tricky since these digital products may have recurring expenses. That’s why following this process is essential. It ensures you stay on top of the software being used in your business, so you don’t end up paying for things you don’t need. 

An asset management team can help run this process effectively to ensure nothing goes untracked or missed within daily operations. 

IT Asset Reclamation

The IT asset requisition process is used when equipment needs to be removed from daily operations or repurposed to other areas of the business. This is typically done with old assets that will be replaced with new models. It can also occur when assets aren’t being used and are no longer needed in their current place. The typical process of asset requisition is:

• Identifying assets that need to be replaced or repurposed. 
• Sending out and reviewing asset requisition requests. 
• Ensuring requests meet appropriate criteria. 
• Updating and following through on requests. 

Like other processes in ITAM, these steps ensure everyone in the business is on the same page. It prevents any problems in daily operations that could occur if employees or managers aren’t made aware that there will be changes to assets being used. 

IT Asset Disposition

At a certain point, all IT assets will run their course in a business. It’s a natural part of the ever-evolving technological space. When assets become outdated or stop working how they should, they will need to be disposed of. IT asset disposal can cover selling old assets to get value back from them or following correct procedures for throwing out or recycling old assets. 

The typical process for asset disposal consists of:

• Evaluating the condition of assets.
• Checking to see if assets need to be replaced.  
• Making sure parts of business operations aren’t dependent on assets before disposing of them. 
• Working with vendors to sell old equipment for enough value. 
• Following proper regulations for disposal. 
• Receiving disposal certificates. 

Each step in the asset disposal process ensures that company operations aren’t affected, so everything runs smoothly. Asset management teams are experienced professionals who can ensure you get enough value from old assets. What Is the Difference Between ITAM and CMDB ServiceNow?

Along with the process of ITAM, it’s also important to note the difference between ITAM and CMDB ServiceNow. These two can often go together, so it can lead to confusion between the two. 

ITAM is the complete process of managing assets within a business. It covers all of the six categories we just broke down. 

CMDB ServiceNow is a configuration management database. To put it simply, it is a program that helps monitor and track assets within a business. So CMDB can be used as a helpful tool to make the whole process run smoother. While it is a helpful tool, you still need a fully defined ITAM process to use it effectively. 

What Are the Different Roles in Asset Management?

To get a better idea of the scope of ITAM, it’s important to understand the roles and responsibilities of an asset manager. The core responsibilities of an IT asset manager or management team will be:

• Set and communicate policies to managers and employees throughout the company. 
• Coordinate who manages different tasks, the processes for tasks, and how operations will be reported. 
• Identify and assess various risks in different processes while aiming to mitigate any risks or things that could disrupt business operations. 
• Facilitate and track solutions to problems that are occurring. 
• Assign assets to different categories and who is responsible for managing them. 
• Provide evidence of compliance with regulations. 
• Help the team work together. 

Altogether, executing these roles and responsibilities make the whole process outlined by the ITIL run smoothly. 

What Are the IT Asset Management Lifecycle Stages?

There are five stages of the ITAM lifecycle. These stages typically follow along with the six core processes of asset management. The five stages of the asset management lifecycle are:

1. Create an inventory of all assets on hand within a business. 
2. Acquire any new assets as needed. 
3. Set up and deploy new assets as they are purchased. 
4. Maintain current assets during daily operations. 
5. Dispose or repurpose assets as they age or are no longer needed. 

If all processes of ITAM are followed correctly, it makes it much easier to manage each stage of the asset lifecycle. To get additional resources to set up the ITAM process and manage the asset lifecycle, Multiply can help. 

How Multiply Can Help

Multiply is a team of IT consultants and experienced technicians that help bridge connections and drive efficiency through IT asset and data management. Our team helps create a streamlined system within businesses to manage assets effectively. 

With Multiply’s team on your side, you won’t have to worry about the hectic moments that can come with technology not working right in daily operations. We’ll stay on top of everything for you to keep things running smoothly so you can focus on the bigger picture.

To learn more about how Multiply can help, contact us today!