What is Asset management? Importance of Asset management | Asset management softwares.

Summary

This video provides a comprehensive overview of asset management, emphasizing its significance for organizations. It defines asset management as the process of developing, operating, and maintaining assets effectively. The video categorizes asset management into physical, financial, and contractual types, and outlines a strategic plan involving asset inventory, lifecycle cost analysis, service level setting, and long-term financial planning. The importance of asset management in risk management and compliance is highlighted, along with the benefits of automation. Finally, five popular asset management tools are introduced, offering viewers insights into effective solutions for managing their assets.

Takeaways

• 😀 Asset management is crucial for organizations as it helps drive business success by maximizing the value of assets.
• 📊 There are two main categories of assets: fixed assets (long-term) and current assets (short-term liquidity).
• 🔍 The three types of asset management are: physical asset management, financial asset management, and contractual asset management.
• 📝 Developing a strategic asset management plan involves four key steps: completing an asset inventory, computing lifecycle costs, setting levels of service, and exercising long-term financial planning.
• 💰 Understanding the lifecycle costs of assets is vital, as it includes more than just the initial purchase cost, factoring in maintenance and disposal expenses.
• ⚙️ Setting levels of service helps determine the necessary maintenance and operational activities to keep assets in optimal condition.
• 📉 Effective asset management aids in risk management by identifying potential risks related to asset ownership and utilization.
• 🚫 A strategic asset management plan can help eliminate ghost assets—those that are lost, damaged, or stolen—from the company's records.
• ⚡ Automating asset management tasks saves time and allows teams to focus on more strategic activities, enhancing overall efficiency.
• 🛠️ Popular asset management tools mentioned include ServiceNow, Kisflow Finance and Operations Cloud, SAP ERP Suite, IBM Maximo, and Oracle E-Business Suite.

Q & A

What is asset management?

Asset management refers to the process of developing, operating, maintaining, and selling assets in a cost-effective manner to maximize value and achieve business goals.

Why is asset management important for organizations?

Asset management is crucial as it helps organizations keep track of their assets, manage risks, eliminate ghost assets, and improve compliance with regulatory requirements.

What are the two main categories of assets?

Assets are categorized into fixed assets, which are acquired for long-term use, and current assets, which can be converted into cash within a short time.

What are the three types of asset management?

The three types of asset management are physical asset management, financial asset management, and contractual asset management.

What is the first step in developing a strategic asset management plan?

The first step is to complete an asset inventory, which involves taking stock of all assets, their values, purchase dates, and expected lifecycles.

Why is it essential to compute lifecycle costs in asset management?

Computing lifecycle costs is essential because it helps organizations understand the total cost of ownership for each asset, including maintenance, condition, performance, and disposal costs.

What does setting levels of service involve in asset management?

Setting levels of service involves describing the quality, capacity, and roles of the services provided by the assets, which helps determine necessary operating and maintenance activities.

How can automation benefit asset management processes?

Automation can benefit asset management by streamlining repetitive tasks, allowing businesses to focus on more strategic, value-added activities instead of manual processes.

What are some popular asset management tools mentioned in the video?

Some popular asset management tools include ServiceNow, Kisflow Finance and Operations Cloud, SAP ERP Suite, IBM Maximo, and Oracle E-Business Suite.

What is a ghost asset, and why is it important to eliminate them?

Ghost assets are assets that are lost, damaged, or stolen but still appear on the books. Eliminating them is important for maintaining accurate financial records and improving asset management efficiency.