Asset management tracks the ownership, cost, and value of resources like hardware and software.
Configuration management tracks the technical details, configurations, and relationships of those resources.
Together, they offer a full view of IT assets for better decisions, efficiency, and risk management.
What Is Asset Management?
Asset management is the systematic process of managing assets—both financial and physical—throughout their lifecycle to maximize value, minimize risk, and support business objectives. Financial asset management involves professionals investing in stocks, bonds, and other instruments to grow clients’ wealth, with roles like portfolio managers, traders, and support staff playing key parts.
Physical and operational asset management focuses on overseeing tangible assets like equipment and real estate by tracking, maintaining, and making strategic decisions about their use and disposal. Together, these approaches ensure efficient resource control and long-term value generation.
Objectives of Asset Management
The primary goal of asset management is to maximize the value of assets while minimizing associated risks and costs throughout their entire lifecycle. This involves aligning assets with organizational goals through a blend of financial, operational, and strategic practices.
Key Objectives:
- Financial Optimization: Reduce total lifecycle costs—including acquisition, operation, maintenance, and disposal—while maximizing return on investment (ROI) through effective budgeting, cost control, and resource allocation.
- Risk Mitigation: Minimize the chances and consequences of asset failures by ensuring regulatory compliance and managing external risks like inflation or market volatility through strategies such as diversification.
- Operational Efficiency: Boost asset performance and reliability to enhance productivity and reduce downtime, focusing on extending asset life and optimizing usage.
- Strategic Alignment: Align asset use and performance with broader business objectives by providing insights for informed planning, investment, and decision-making.
- Lifecycle Management: Oversee every phase of the asset lifecycle—from acquisition and use to maintenance and disposal—to ensure consistent value delivery.
- Compliance and Control: Maintain adherence to legal, regulatory, and internal standards throughout the asset’s lifecycle, ensuring accountability and governance.
