Understand how Asset Management Lifecycle increases your Business ROI

Definition of Asset Life Cycle

The series of processes involved in optimizing your business asset. The assets can be tracked in various methods in every company. With the life cycle, assessment, you can manage the cost of spending on the asset, its reliability, and its importance.?

By following the Asset Management cycle, businesses can able to manage their valuable assets. Businesses that fail to maintain might face unexpected delays in work and breakdowns.

Benefits of Asset Management Lifecycle

Asset Management Lifecycle helps you to decide on IT services and products. Also, it helps in purchasing the asset whenever needed from various resources. By maintaining the asset inventory, if you know any assets are about to expire in some days, you can raise PO.?

• Make purchase decision
• Planning and Forecasting your business needs
• Understanding the cost structure of the asset
• Improving the IT products and services.?

Stages in asset management lifecycle

Asset Management Lifecycle is the strategic approach for business management. Business assets are measured with Asset Management Software to collect accurate data information. The asset management Lifecycle can be categorized into different stages:

• Planning
• Acquisition
• Usage
• Maintenance
• Disposal

PLANNING

The planning stage involves analyzing and brainstorming activities to determine the required assets based on the existing data. These methods could be done with the help of management software that can analyze data, helps in decision making, and improve the value of the asset.?

The planning stage helps in controlling the Financial investment by researching which assets that fulfill the business goals and contribute to generating ROI.

ACQUISITION

So, once decided on which asset suits the business objectives it needs to be acquired.?

The acquisition does not mean to be only a purchasing activity also it involves the process of utilizing the asset to achieve the goals.?

The acquisition stage involves handling the financial phase by purchasing the assets within the pre-defined budget. After acquiring the asset, it has to be monitored throughout the lifecycle with asset management software.?

USAGE?

Now you can access all the assets! Once started using the asset you need to find ways in maintaining the assets. Identify if the asset could be able to handle the regular maintenance. This helps you to ensure that the tasks you are handling could get completed in a minimal time by improving their efficiency.

MAINTENANCE

Finally, the asset is currently used for its intended purpose like improving the business process and helping in increasing the ROI. The asset will monitor on regular basis to identify if any error is found unexpectedly.?

If found any error, it should be resolved and maintained. Maintenance is the longest stage in the asset management lifecycle. The maintenance stage involves;

• Extending the asset lifetime
• Reducing the cost spent on repairing
• Increasing the uptime and minimizing the downtime.

DISPOSAL

In the end, after serving its complete purpose the asset can be recycled or sold, or removed completely.?

At this stage, the asset has lost all its value. It can be removed permanently after resetting it to avoid any data leakage.?

If the organization requires the same software again after some time period or whenever required, it could be replaced and the asset life cycle begins again.?