Asset Management
Simply put, asset management is the process of managing a group of asset. These can be a physical, financial or intangible assets like Goodwill, intellectual property, etc. These assets are managed over their life cycle to drive value from their use.
Asset Management is a systematic process of acquiring, maintaining, operating, upgrading or disposing of asset to generate value from them. The asset management process ensures that assets are used in the most effective and efficient manner. We achieve this with minimum risks and enhance the asset performance attributes to ensure the Meximum value. The people who manage the assets are called aset manager.
Asset management initially linked with managing financial assets. Today, it is a widely used for managing different assets, including digital, infrastructure and IT. The purpose of the asset management function is to gain value from operating the assets, managing them effectively and disposing of them to earn profit. When multiple assets are in play, there is a greater need for efficiency and organisationl accountability. Effective asset management enhance a company's reputation. It benefit the management, employees and customer. The value of underlying holdings or assets increases with proper management.
The following are the various aspect of acid management :
• Overseeing various assets
• Making purchase decisions.
• Organising maintenance schedules.
• Conducting regular checks or b scanning of items.
• Gathering and analysing data from the above actions.
• Taking management decision based on the above.
A well-chosen asset management system ensures a steady stream of data. When asset tracked in real-time, it encourages accountability and keep department performance on the track. Inaccurate data is eliminated, and asset performance is properly monitored. Risk management and regulatory compliance are also improved.
Asset management is essential for the following reasons:
• It helps business to keep track of their asset and enhance the efficiency of asset performance.
• In the case of shared assets, proper asset management leads to a reduction in disputes over ownership or revenue sharing.
• Healthy safety, regulatory and legal requirements become easier to comply with.
Types of Asset Management :
We've come a long way from the times when asset only meant furniture, building and cash or cash equivalents. The term "asset" now encompasses a much larger variety of capital holdings with an organisation or individual.
Following are the various assets that fall under the purview of asset management :
• Financial Asset Management
• Digital Asset Management
• IT Asset Management
• Fixed Asset Management
• Enterprise Asset Management
• Infrastructure Asset Management
The different type of Asset Management are summarised below:
Digital Asset Management:
Digital asset management is a software system designed to centrally store and manage the digital asset of a business. Digital asset include documents, images, audio content, video content, animation, media files, graphics, presentation etc.
Internal and external stakeholders are given a controlled access to digital asset through centrally designed digital asset management system. In Marketing, digital asset management is used to optimise campaign
management and ensure consistency of brand marketing. With Digital asset management software, user can create, organise, collaborate, distribute, store and measure performance. Digital asset are stored in specific electronics libraries. These system has advanced search capabilities, such as digital search for or document or image and the ability to retrieve digital files.
With the use of digital asset management software, users can gain access to the version history and file type of any of the aforementioned asset digital types. The digital assets can be uploaded on the Internet to the streamline the review and approval process. However to maintain integrity asset owners can set access levels and permissions for various contributors.
The key benefits of Digital Assets management include the following:
• Organise the content in one system where all stakeholders can access their requirements.
• Streamlines the workflow.
• Re-purpose the best performing contents.
• Ensure brand consistency.
• Align the work of content creator s and publishers
• Make content available wherever it is needed.
• Monitor content effectiveness.
• Publish brand-approved content.
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Fixed Asset Management:
Any organisation has a multiple fixed asset like buildings, plant and machinery equipment and more. Fixed asset include long term tangible assets used in the operations of a business. These assets are held for a period of a year or longer. The financial accounting and preventive maintenance of fixed asset undertaken under this facet of Asset Management. Thefts and pilferage are also reduce avoided. Here normally the following tasks are performed:-
• Oversee and track fixed assets.
• Monitor fixed asset in multiply location.
• Minimise maintenance costs.
• Increase the net output of fixed assets in operational activities.
• Help to maintain an accurate record of fixed assets.
• The following benefit are derived from Fixed Asset Management:
• It provides a centralised information system.
• It help in cutting operational costs.
• It enables equipment maintenance.
IT Asset Management :
Technological infrastructure is the backbone of any organisation today. We need IT systems to perform many business operatios. In IT Asset management, we manage an organisation software and hardware asset.
Lack of proper ITAM results in limited asset visibility, erroneous inventory record, wasted resource, unnecessary service delays and Hefty costs. Through IT Asset Management, asset owners understand asset life cycles and asset utilisation. Trend identification, data analysis, and understanding of procurement routines are improved with proper IT asset management. We can efficiently manage all asset from a single platform.
The benefits of IT Asset Management include the following task :
• Saving cost
• compliance with organisational policies.
• Control of the IT environment.
• Ensure greater governance and compliance in the organisation.
• Resolve problems faster.
• Reduce risk and eltiminate waste.
What does an Asset Management company do?
Asset management companies are investment firms that invest from the pooled funds of their clients. They allocate capital to work in assets like equities, bonds, real state, mutual fund, ETFs (Exchange Traded Fund) and other financial assets. Mutual funds companies are also asset management companies which manage pooled portfolios. They create unit for the investor in the fund.
Asset management companies are fiduciary firm held to a higher legal and ethical standard. Asset management companies have the advantage of accessing pooled investment of investors. They benefit from economies of scale. This also allows investor to engage using minimal capital. Investor can benefit from lower costs of asset management.
Asset Management frames charge free ring from 1% to 3% P.a this is in admission to transaction cost and other expensive Asset Management frames employee equity analyse to perform equity to fixed and come research this enables the portfolio managers management friends to take in from decision
As mentioned before, portfolio manager have the authority to take investment decision without seeking prior permission. Asset management frims provide their client with greater portfolio diversification and multiply investment options. Investor can engage with a diverse basket of equities, fixed income or other asset classes. Discretionary asset Management require client to invest large amount of funds. It is important to remember that using the service of an asset management company does not make an investor portfolio immune to risk.
The Bottom Line :
Proper asset management is the key to the success of a mutual fund, an
organisation or enterprise.asset management play a key role in creating the appropriate investment strategy, better utilising scarce natural resources, minimising cost, or reducing risk.
Investors cannot underestimate the central role of proper asset Management in all type of asset physical, IT, software, digital, financial or intangible. An organisation or an enterprise's success is achieving its business mission and goals by employing in reliable and sound Asset Management principles.
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