Question

Research an asset management system and discuss why this system would be beneficial to a company. When researching solutions, think about different business types—small business versus large business.? Please Explain

Answer 1

The International Infrastructure Management Manual(IIMM) says asset management is "The combination of management, financial, economic, engineering and other practices applied to physical assets to provide the required level of service in the most cost-effective manner". In other words, it is a systematic approach that helps a company to operate and govern all of their assets. This leads to skillful fertility that can increase a company's return on investment. The assets owned by a company can be divided into two categories: fixed and current assets. Fixed assets are assets acquired for long-term use while current assets are assets that can be converted into cash in a short time interval.

Benefits of asset management:

1. Improving the purchase and use of equipment by building a strategy that can find out the wasteful purchasing practices and solve it by creating a better strategy for buying the equipment needed by workers.         

2. Improving flexibility such that when there is a need to compile reports at the end of the financial year, they can easily access the information thereby saving time.

3. Proper record of valuable assets by maintaining a detailed asset history.

4. This ensures the fast growth of a business.

Why Small business asset management is beneficial?

Whatever kind of business it may be, it owns property that provides products and services. Assets can be a key component of the company's success. It can make or break a business. The company’s assets need to be carefully maintained. Fixed asset management is worthwhile for small businesses to organize information about their property. These assets can be long-term items that add value to a small business. Long-term intangible property can also be called a fixed asset, like a trademark or patent.

Ways fixed asset management can help small business succeed:

• The fixed asset management process is used for accounting, preventative maintenance, and theft deterrence.
• Unexpected repairs and other property issues can be smoothly recovered.
• Rely on employees to manually enter asset data, which can lead to errors.
• The best time to purchase new assets can be known.
• Accurately calculates depreciation expenses and looks over an asset’s depreciation status.
• It can determine and add value to the overall worth of the company. This is important for selling a small business and speaking with investors.

Large business asset management is very much crucial whether it be fixed assets or current assets.

Why asset management is required for a large business?

• Tracking and monitoring fixed assets
• Oversee equipment and machinery in multiple locations.
• Lower maintenance costs and improve operational efficiency
• Maintain a record of retired, sold, stolen or lost assets.
• Fixed asset management might be complex for global enterprises or companies with large inventories like a car rental business or manufacturing multinational.
• Asset tracking software like location tracking and management solutions are used to oversee fixed assets.
• IBM Maximo provides a central platform for managing all fixed assets. It integrates asset data from across the asset lifecycle: acquisition, operations, maintenance, depreciation, and renewal or replacement.
• The Internet of Things (IoT) offers deep insights and enables greater control of fixed assets. Some correlate data from sensors and devices to provide timely visibility into asset health and performance. It enhances asset management by analyzing status, assessing value and risk, and anticipating failures.
• A blockchain can also be used to look over on proper asset verification and create an accurate record for asset managers to use.