What Are the 4 Key Stages of Asset Management Lifecycle?

What Are the 4 Key Stages of Asset Management Lifecycle?

IT asset management (ITAM) will help your company get the most out of the computer equipment you invest in. The processes of ITAM are typically conducted through four key stages that follow an asset’s lifecycle from beginning to end. 

This article will cover each of those key stages in detail. By the end, you’ll have a better idea of how ITAM is managed and how each individual process benefits a company. Keep reading to get all the details. 

What Are the 4 Key Stages of Asset Management Lifecycle?

The asset management lifecycle can be broken down into four stages. Those stages are:

  1. Creating an inventory for tracking assets on hand
  2. Procurement and deployment of new assets
  3. Routine maintenance and audits
  4. Disposition of assets as they age

There’s a lot to cover about each of these stages. The following sections will break each one down in more detail. 

Creating an Inventory for Tracking Assets

The backbone of your ITAM system will be the inventory that records every piece of equipment you have on hand. Without this step, it will be difficult, or even impossible in larger companies, to manage the other stages of the lifecycle. 

When you bring on an ITAM team, they will use discovery systems and processes to find all the assets you own and create a streamlined database with information on each one. That way, if you ever need to know about specific assets, you can find them easily within the system. It also tracks when assets must be maintained and when they should be replaced as they age. 

Procurement and Deployment of New Assets

There are typically two instances where you will need to buy and deploy new assets. The first will be when old assets age and need to be replaced. The second is when business expansion happens and the amount of computer equipment you need increases. Either way, there are processes you can put in place to make this stage more successful. 

IT professionals are knowledgeable about which equipment will be the best investment for a company. All you have to do is work to create a budget and let your IT team do the work of negotiating the best price with vendors and finding the right equipment that will last a long time within your current system. 

Once the equipment has been purchased, it will need to be deployed into daily operations. IT professionals can schedule this process at times when it won’t disrupt business operations. Additionally, the IT team will ensure everything is running smoothly upon setup to avoid any malfunctions that can be common with new equipment. 

Routine Maintenance and Audits

Computer equipment is constantly changing. There are always new updates or things that need to be fine-tuned as technology ages. An IT team can schedule routine maintenance as part of the asset lifecycle to keep everything running smoothly. Audits can also be conducted to estimate when equipment needs to be replaced before it starts having any issues. 

Regular maintenance of equipment also helps save you money by keeping it running better for longer. That way, you don’t need to invest in new equipment as often. 

Disposition of Assets as They Age

Eventually, all assets will age out of usefulness. Assets will either start having issues or new, more efficient technology will be released that your company will benefit from investing in. 

Whatever the case, your IT team can help dispose of old assets once they are replaced. Asset management professionals will negotiate with vendors to sell old assets for the best possible value, all while ensuring all your company data is destroyed to avoid any security threats. Getting value back for assets saves you money when investing in new equipment. If assets can’t be sold, they’ll be disposed of following proper regulations. 

What Are the Processes of Asset Management?

The processes of asset management typically follow the stages of the asset lifecycle. Common processes include:

  • Planning: Like all business functions, asset management requires significant planning. That includes estimating the asset lifecycle, budgeting for future expenses, and scheduling routine maintenance. 
  • Negotiation with vendors: Asset management teams work with vendors to negotiate the best prices when purchasing new equipment and selling old equipment. That helps you get the best value for equipment in both of those stages. 
  • Communication with all teams involved: The management of computer equipment will affect nearly everyone throughout the company. Proper communication is necessary whenever maintenance must be done or changes are being made to ensure everyone is on the same page. 
  • Risk management: Risk management procedures must be conducted when setting up new equipment or changing processes. One malfunction can disrupt a lot within a business, so IT professionals must take every precaution to prevent that. 

A lot goes into each stage and process of asset management. If you’d like help to manage everything involved, Multiply will be an excellent resource for your organization. 

How Multiply Can Help

Multiply is a team of IT consultants and senior service technicians. We partner with businesses to help create streamlined systems for success in IT asset and data management. Multiply can help facilitate this process by creating successful inventory systems and bridging communication throughout a company to get everyone on board with the process. 

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

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