Effective IT Asset Management, also known as ITAM, is essential for organisations looking to optimise their IT infrastructure, control costs, ensure compliance, and maximise the value of their IT investments.
With so much of our professional lives relying on technology to run smoothly and efficiently, IT departments play a vital role in the success of a company. Therefore, it is important to ensure that hardware and software assets are used correctly.
In this article, we will discuss what IT asset management is, what it involves and how to choose ITAM software that meets the needs of your business.
What is IT asset management (ITAM)
ITAM is the process of managing and optimising IT assets throughout their lifecycle. It involves tracking and monitoring all hardware and software assets, including computers, servers, laptops, networking devices, and software licences.
The goal of ITAM is to ensure that a company’s assets are used efficiently, minimising costs and mitigating risks. With proper IT asset management, organisations can gain better control and visibility over their technological needs, leading to improved decision-making, increased productivity, and reduced operational and financial risks.
Here are some o ITAM’s most common activities:
Asset inventory
Asset inventory is an important part of ITAM, as it involves creating and maintaining a comprehensive record of a database of all IT assets a company has.
The inventory should contain detailed information about each asset, including its characteristics, specifications, location, ownership, and other relevant data. With every asset mapped out, the inventory serves as a repository of information, enabling IT teams to manage and optimise assets. It gives IT teams more visibility and control over their infrastructure.
Asset tracking
With asset tracking, IT teams monitor and trace the movement, changes, and status of IT assets throughout their lifecycle. It enables organisations to have real-time visibility into the location, use, and condition of assets.
Asset tracking can be achieved through various methods, depending on the type of assets and available technology. Common methods include barcode scanning, radio frequency identification tag, asset tags with unique identifiers, or asset management software. The idea is to monitor assets from acquisition through deployment, maintenance, upgrades, and eventual disposal.
By monitoring usage, companies can also analyse usage patterns, identifying when an asset is underutilised and improving resource allocation and cost optimisation.
Through a robust asset tracking process, organisations can optimise the use of assets, reduce loss or theft, improve maintenance planning, enforce compliance, and make informed decisions about asset investments.
Asset lifecycle management
Asset lifecycle management involves planning, procurement, deployment, maintenance, upgrades, and, ultimately, the appropriate disposal of IT assets. The goal of this aspect of ITAM is to ensure that assets are utilised optimally, costs are minimised, and risks are mitigated.
The first stage in asset lifecycle management is assessing existing assets, identifying gaps, and developing a roadmap for acquiring new assets.
Throughout the asset lifecycle, organisations need to maintain accurate and up-to-date records, which facilitate effective tracking, maintenance planning, and decision-making.
Licence management
An important part of ITAM is the process of managing software licences to ensure compliance with licencing agreements, minimise costs, and mitigate risks.
It is important that IT departments ensure that software deployments are in compliance with licensing agreements. Therefore, it is necessary to monitor the usage and distribution of software licences to prevent overuse or unauthorised use.
It is not rare for companies to be paying for a licence they no longer need or underuse. Preventing this is also included in licence management, leading to cost optimisation. IT departments also need to keep track of licences that need to be renewed to avoid disruptions.
Effective licence management enables organisations to optimise software spending, prevent legal and financial risks associated with non-compliance, and ensure efficient utilisation of software.
Financial management
Financial management in ITAM focuses on dealing with the financial aspects of IT assets, budgeting, conducting cost analysis, return on investment calculations, and overall financial optimisation. The goal is to ensure that IT assets are acquired, utilised, and managed in a way that maximises value while minimising costs and financial risks.
By integrating financial management into ITAM practices, organisations can optimise investments and align their IT assets with overall business goals. It helps create a transparent and accountable financial framework for managing assets effectively and efficiently.
Risk and security management
This aspect of ITAM focuses on identifying, assessing, and mitigating risks associated with IT assets. It involves implementing security measures, ensuring compliance with regulatory requirements, and protecting sensitive data and systems from potential threats and vulnerabilities.
By integrating risks and security management into ITAM practices, companies can protect their assets, ensure data confidentiality and integrity, comply with regulations, and minimise the risks associated with potential security incidents. It helps create a secure IT environment and safeguards the organisation’s overall operations and reputation.
Maintenance and support
As seen with other aspects of ITAM, maintenance is extremely important to ensure efficient resource allocation. IT teams must conduct the necessary repairs, upgrades, and support services to optimise asset performance.
Maintenance and support include taking proactive measures to prevent failures, responding to breakdowns or malfunctions, and upgrading assets.
By prioritising maintenance and support, organisations can prolong the lifespan of IT assets, optimise performance, and improve user satisfaction.
Reporting and analytics
Reporting and analytics involve the collection, analysis, and presentation of data and insights related to IT assets. It enables organisations to make informed decisions, assessing the overall performance of ITAM.
Reporting provides a comprehensive view of asset-related information, while analytics involves using data to identify patterns, trends, and opportunities for improvement. Through analysis, companies can gain a holistic understanding of their IT assets. It helps teams demonstrate the value and impact of ITAM efforts, leading to smarter decisions.
The benefits of ITAM
Implementing IT Asset Management offers several benefits to organisations. We have already indicated some of these benefits while listing the main activities in ITAM, but here are some of the key advantages of effectively managing assets:
Cost optimisation
ITAM helps companies optimise their IT asset spending.
By having a clear understanding of their asset inventory, usage, and lifecycle, organisations can identify opportunities to reduce unnecessary purchases, avoid over-licencing, and eliminate underutilised assets.
ITAM enables better budget planning, cost allocation, and negotiation with vendors, resulting in cost savings and increased financial efficiency.
Improved asset visibility and control
Proper ITAM provides companies with comprehensive visibility into their assets, including hardware, software, licences, and associated data. This visibility allows better control over asset deployments, maintenance, upgrades, and retirement.
IT asset management enables organisations to track the location of assets, monitor usage, ensure compliance, and make informed decisions about what to acquire and where to employ assets.
Enhanced compliance and risk management
ITAM helps organisations maintain compliance with software licencing agreements, regulatory requirements, and industry standards. Companies can track when licences are about to expire, how often software is being used, and reduce the risk of non-compliance.
With this attention to potential issues, ITAM supports risk management, mitigating security vulnerabilities, ensuring data privacy, and protecting against unauthorised access or breaches.
Increased operational efficiency
ITAM streamlines IT operations by providing a structured approach to asset management. It reduces manual efforts, automates asset tracking, and simplifies processes such as procurement, provisioning, and maintenance.
By having centralised asset information, companies can efficiently respond to user requests, troubleshoot issues, and minimise asset downtime, leading to improved productivity and user satisfaction.
Better decision-making
As we discussed, ITAM provides organisations with accurate and reliable data about their IT assets. This data serves as a valuable resource for informed decision-making.
Companies can assess the performance and use of assets, analyse trends, plan for future needs, and align IT investments with business goals. It supports strategic planning, helps optimise asset lifecycles and guides decisions related to upgrades, replacements, and technology investments.
Enhanced security
IT asset management enables organisations to track and manage security patches, software updates, and vulnerabilities across their inventory. Through ITAM practices, IT departments can enforce access controls, data encryption, and compliance with data protection regulations. It also facilitates proactive identification and mitigation of security risks, reducing the potential for data breaches or system compromises.
Support for IT service management (ITSM)
ITAM also integrates closely with ITSM practices, such as incident, change, and problem management. It provides valuable inputs for effective service delivery and support, helping teams respond quickly to incidents, plan changes, resolve problems, and optimise service levels.
How to choose ITAM software
By now, you should have a better understanding of what ITAM is and how it can benefit your business. To successfully implement ITAM practices, it is essential to implement the right software. Therefore, making this choice requires careful planning:
Identify your requirements
Start by clearly defining your organisation’s ITAM requirements. Consider factors such as the types of assets you need to manage, the size and complexity of your asset inventory, your desired level of automation, reporting and analytics capabilities, integration with existing systems, and any specific compliance or security needs.
Having a clear understanding of what your company needs will help you evaluate software options.
Scalability and flexibility
Ensure that the ITAM software you choose can scale and accommodate the growth of your asset inventory. Consider the number of assets it can handle, multi-site support, and the ability to adapt to changes in your IT environment.
The software should be flexible enough to meet your evolving needs and accommodate different asset types and configurations.
Asset tracking and inventory management
Evaluate the software’s asset tracking and inventory management capabilities. It should provide features for accurate and real-time tracking of assets, including details such as asset identification, specifications, ownership, location, maintenance history, and software licenses. The software should support automated asset discovery and provide mechanisms for manual data entry and updates.
Lifecycle management
Consider whether the software supports the entire asset lifecycle, including asset acquisition, deployment, maintenance, upgrades, and disposal. It should provide workflows and automation capabilities for managing asset workflows, tracking maintenance schedules, planning for upgrades or replacements, and managing asset retirement or disposal.
Licence management and compliance
Assess the software’s ability to manage software licenses effectively. It should support license tracking, usage monitoring, compliance reporting, and license optimisation.
The software should help you avoid over-licensing and non-compliance penalties by providing mechanisms to track entitlements, manage allocations, and generate compliance reports.
Reporting and analytics
Evaluate the reporting and analytics capabilities of the software. It should provide pre-built and customisable reports, dashboards, and visualisations to provide insights into asset performance, utilisation, compliance, and financial aspects. It should also enable you to generate meaningful reports and derive actionable insights from your asset data.
Integration and interoperability
Consider the software’s ability to integrate with other IT systems and tools within your organisation. It should have the capability to exchange data with configuration management databases (CMDBs), IT service management (ITSM) tools, procurement systems, and other relevant systems. Integration capabilities facilitate data sharing, streamline processes, and avoid duplication of efforts.
Vendor support and reputation
Evaluate the reputation and track record of the software vendor. Consider factors such as their experience in ITAM, customer support quality, product roadmap, and their commitment to product updates and enhancements. A reputable vendor with a strong support system can provide reliable assistance and ensure the software meets your ongoing needs.
User experience and ease of use
Consider the user interface and overall usability of the software. It should have an intuitive interface, easy navigation, and logical workflows. User-friendly software reduces the learning curve for your ITAM team, promotes user adoption, and increases efficiency.
Total cost of ownership
Assess the total cost of ownership of the software, including initial purchase or subscription costs, implementation costs, training expenses, ongoing maintenance fees, and any additional costs such as customisation or integrations. Consider the value the software provides in relation to its cost and ensure it fits within your budget.
Conclusion
IT asset management can significantly cut IT costs for your organisation, optimise licence usage, and ensure your company remains compliant. In this context, choosing the right software is a critical decision that can impact your business practices.
Consider what we have explained and listed in this guide, as well as your organisation’s needs and plans for the future. ITAM can be a great tool for companies of all sizes, reducing risks and the probability of asset downtime.
