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By: Sree

Why Do We Need an Asset Management System


What is Asset Management?
Managing the assets of a company despite the type of the asset is called the asset management process. An asset management team is accountable to the company and is responsible to ensure that the assets of the company get maximum value in the market. Managing the financial or infrastructure assets of a company should be done in a way that the value of the property gets maximum appreciation in the market. 
Types of Assets
Any property or resource of a company is considered an asset of that particular company. Generally, we can categorize assets into six types. They are,
- Financial Asset
- Digital Asset
- Infrastructure Asset
- Enterprise Asset
- IT Asset
- Fixed Asset
Asset management can be any process that is followed to manage and organize these assets. The sale of the assets at maximum market price is also an inevitable part of asset management.
Who is responsible for Asset Management?
Unlike human resources management or customer management which are usually managed by a selected group of employees, asset management is a process that has to be completed with the support of employees of different levels and grades. From the Chief Operating Officer of a company to a manager and an accounts officer to a member of the maintenance team will play a valuable role in ensuring efficient management of assets. 
Apart from the employees, even a sub-contractor or client can help the business to ensure the successful management of assets. In short, asset management is a process that will help us to understand the lifecycle of that particular asset.
Why should there be an asset management system?
Asset management can in general be considered as the management of wealth. But when it comes to an organization, asset management mostly deals with the properties of an organization. Asset management is sure to bring in a systematic management system to organize all properties of a company. There is no other reason why the majority of the large companies manage a team for asset management. 
Importance of an ERP tool for Asset Management
Asset management is a complicated process involving different types of assets. It also requires the support of different departments and inter-departmental coordination for the smooth management of assets. If we are using an ERP tool to manage assets it is sure to help us with an efficient system to track the assets and assess the real-time position and value of the asset. The ERP tool helps the investors to ensure that the users of assets show accountability and manage the assets by assuring timely maintenance or repair work. 
Don't be mistaken, we are talking about the solid assets or object assets here. Asset management will also be a part of the maintenance management system here.
ERP support for asset management ensures support for centralized management of assets. With an efficient tracking system in force, the departments can analyze the efficiency of the asset and plan purchase or maintenance activities in advance. 
Highlights of ERP support for Asset Management
- Quick and efficient interdepartmental operations
- Efficient risk management system
- Avoids wastage of time and resources
- Improved level of accuracy 
- Better control over assets
- Transparent use of properties
Steps to complete Asset Management
Asset management is a process that requires a series of activities. It can be termed as a multi-step activity. With the use of ERP tools, asset management becomes an automated process. 
Now let us check the major steps which are part of the asset management process. Before starting the asset management process, you have to ensure the use of an appropriate tool for the process. 
- Collect the details of all assets which are used by the company
- Identify the use of each asset and track the movement of the asset
- Tag the assets and organize the assets
- Use the serial numbers or other codes to track the asset.
- Link asset serial number with the tracking system 
- Ensure the maintenance of the assets using preventive or corrective measures
- Manage the life cycle of the asset
- Scrap or sell the asset
As we have discussed in detail the different aspects of asset management let us get back to the types of assets and management of these assets.
Types of Asset Management
Whenever we are managing assets we should develop a strategy for managing that particular type of asset. That means we should have an exclusive asset management system for a particular type of asset. The type of your business also decides the asset management type used by you. 
Financial Asset Management
When we use the term asset, wealth or finance is the word that comes to our mind. Financial asset means the investment of the company in real estate business or share market business. This kind of business requires support for tracing the market rate of a share, taxes, or liabilities. 
Fixed Asset Management
When it comes to a company a major share of the assets belong to the fixed asset category. From the building where the business operates to a laptop used by a manager belongs to the fixed asset of a company.
We can say that all machines, electrical or plumbing installations. That means any movable or immovable property or equipment that belongs to the company is called fixed assets. Fixed asset management is very important as we have to use these assets for a longer period and dispose of or sell off the production. We will have to track such assets and find out their value corresponding to a period. The value of fixed assets usually depreciates over the year as the life span decreases. It is in this case that we go for maintenance to increase the life span of the asset. We will also have to choose scrapping or selling off of the asset if the asset is of no more use for the business.
Digital Asset Management
Digital assets mostly include the intellectual property of the company. When it comes to a software company, digital assets could be software. For an architecture consultancy, it is the building plan. Digital asset management includes the sharing or selling of access rights to digital information. Managing client access to digital content tracking who is using the content, for how long, etc.
IT Asset management
IT assets include all instruments used for information technology. This could include computers, routings, etc. This helps the company to store, organize, retrieve and share data related to IT assets. 
Infrastructure Asset Management
Infrastructure asset management is mostly useful for engineering firms or contract firms. It includes access to roads, water electricity, etc. 
Enterprise Asset Management
Enterprise asset includes the management of physical assets and its records. The documentation and management of reports are part of enterprise management. This includes the creation of customized reports accurately. We can also manage emails, data, charts, etc also with ERP tools.
Hope you have realized the significance of using ERP to manage assets

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