Asset lifecycle management is referred to delivering the process of real-time digital valuations for large assets such as a building that is in development, the IT assets owned by a company, vehicle fleets, etc. It is very difficult to value assets and once its done laborious cross-checking is required to make sure that the figures calculated are appropriate. For instance, when a car is being calculated a crash on it brings its value down and the amount charged by the garage for repairing the damage should be reconciled against the car’s worth.
There are other variables included as well such as the condition of the car and its mileage, they also play a role in the performance of the car and therefore they require an inspection from third parties. Let us take another example of real estate assets and the other factors that play an important role include maintenance, rental returns, location of the property, etc. Thus it can be concluded that the real-time and instant valuation of an asset is difficult and therefore the amount calculated can not be used in an open market.
New digital measurements are introduced by the companies in the market that can undermine the value of an asset.
What is asset lifecycle?
Asset management involves a key process to understand the lifecycle of an asset. The life cycle involves four major stages that are classified below. Asset lifecycle should also be managed by following asset lifecycle management best practices Middle East to improve the performance of assets. Continue reading to know about the lifecycle of an asset in detail-
- Planning – It is the first stage of an asset lifecycle, and it helps to establish and verify the requirements of the asset. Asset requirement is established keeping the valuation of an existing asset and their capacity to meet the delivery needs. Throughout the stages of planning, it is important to check that the development process adds value to the organization.
- Acquisition – Acquisition planning can only be done once the organization chooses the cost it can spend and what is its requirement and which plant will be best suitable. The planning involved in the acquisition refers to the process that is involved in purchasing an asset to ensure that the new acquisition is cost-effective. Appropriate allocation of various activities ensures that the asset is fit to use.
- Operation and management – This stage indicates that the management of the asset that includes its maintenance as well and the organization’s aim to deliver quality services are met effectively. Asset management issues are a high priority in this stage and it is ensured that they are monitored regularly and improvements are done if the operational management requires such.
- Disposal – When the asset can no longer work effectively and has reached the end stage of its life then it can be either treated as a surplus or be considered as an underperforming asset. All organizations have to deal with asset handling and therefore it is important to set a strategic management plan. Asset management also provides security to the organization.
The lifecycle can be made more clear with the help of asset lifecycle management lifecycle diagram Middle East to help people better understand.
Best Practices
Many organizations implement the practices of managing assets when a particular situation occurs or calls for it. We have listed some of the best practices to help you going.
- Asset discovery – You should create a full list of all IT equipment owned by the organization that exists in the business landscape. It includes network, data centre, user workstations, etc. It also includes hardware, software, mobile devices, etc.
- Prioritization of assets – Not all assets are considered equal. You should determine which one is a critical asset. Important assets require more oversight and management than others.
