According to Gartner Group, by 2010 half of most enterprises capital budgets will be allocated to IT spending. Gaining improved accountability over IT assets while simultaneously extracting increased value from them is becoming increasingly critical to businesses. Accomplishing this goal will require that enterprises develop the processes, management discipline, and best practices that are part of a comprehensive, effective IT asset management program.
Financial Limitations and Reporting
In these difficult times, organizations are under tremendous pressure to do more with less. Finance and IS face the dilemma of shrinking budgets and higher productivity expectations. Efficient, effective IT asset management is vital to the enterprise. As the pace of change accelerates, IT asset managers must react quickly to new management and reporting requirements. The Sarbanes-Oxley Act of 2002 has forced public companies to tightly control spending and placed increased burden on accurate financial reporting.
Asset management, once a back office function, has now taken on a proactive role in company wide management decisions. Asset management has moved to the forefront of issues that effect business strategy and profitability. An effective asset management discipline has become a critical success factor in determining how well enterprises can effectively model, plan, decide, procure, and demonstrate value of IT for the business.
Enterprises must focus asset management efforts on collectively implementing process, personnel, technology, and support programs to achieve optimal return on IT assets. Optimal IT asset management relies on proven process engineering, integration and management techniques, team-based organizational structures across the IS and Finance organizations, and formal measurement programs.
In today’s rapidly evolving technology and business environment, managing your IT infrastructure is more complex than ever. Multiple vendors and the variety of systems, users, and locations can thwart your operations and cost the organization millions. If you experience any of these difficulties you may have asset management problems:
- Uncertain of your server or desktop software compliance
- Depreciating more assets than you physically have
- Paying for maintenance, warranty, or service on systems you don’t own
- Inability to reconcile actual configurations with lease-return configurations
Gartner Group research has shown that best-in-class IT asset management programs can dramatically reduce an IT infrastructures total cost of ownership (TCO) by as much as 30% during the first year and between 5% and 10% annually during the next five years. However, in order to achieve best practices in IT asset management an organization must begin with a solid baseline by first identifying, tracking, inventorying and accurately reporting IT assets.
What Makes An Amazing IT Asset Management Program
Organizations featuring best-in-class IT asset management programs address the following:
- Formalize IT asset management strategy and program implementation plans
- Review comparative IT spending data and how it should be used for planning purposes
- Identify top 10 issues facing IT asset managers
- Use TCO analysis to justify IT investments and optimize spending
- Analyze Windows migration strategies and Microsoft software licensing issues
- Outline the benefits of effective IT asset management processes and tools
- Identify keys to effective PC life cycle management from procurement through disposal
- Implement software licensing best practices
- Prepare for software audits and avoid surprises
- Understand pitfalls of “financially engineered” IT service contracts
For more information about how your organization can achieve best in class IT asset management contact Assertive Industries today at 678-447-0028.