Why Assets Cannot Be Managed Through Projects

In the world of corporate IT, massive information systems are created, modified, maintained, operated, and eventually decommissioned. These systems, often the backbone of operations, result from years of investments totaling hundreds of millions. Strangely, despite their monumental importance and substantial business investments, these systems are rarely managed as real assets. The root cause of this disconnect? A misalignment of roles and responsibilities within the corporate IT landscape.

Pipes and Sewage: A Familiar Analogy

To understand this misalignment better, let's examine a relatable analogy—the management of city infrastructure. Imagine a team of city workers tasked with digging a trench beneath a street pavement to connect water and sewage pipes for a newly constructed house. Their mission is to ensure the new house is connected according to a specific deadline that considers the schedules of numerous stakeholders. The promoter, new homeowners, and the general contractor, all have a vested interest in this connection happening promptly. In this scenario, timeliness is the primary yardstick of success.

However, what sets this apart is that the roadworks team, responsible for the connection, is not the entity overseeing the underground infrastructure as a whole. There's a separate body tasked with managing these assets, ensuring their longevity and functionality. While the roadworks team is focused on immediate results, the asset manager adopts a broader perspective. They view this connection as an opportunity to perform essential maintenance and upgrades, considering the infrastructure's long-term health.

The Asset Management Void: Corporate IT's Dilemma

Now, let's shift our focus back to corporate IT, where a significant difference emerges. In this domain, IT teams act as busy bees, tirelessly developing, enhancing, maintaining, and retiring systems. All these activities occur within the confines of yearly budgets and projects. Surprisingly, the ownership of these assets often falls into a gray area. The departments responsible for the initial creation of these assets assume IT will manage them. From their side, IT built them, and, more importantly, are running the computing mill on a daily basis. Meanwhile, the IT department is swamped with project-based objectives that consume a significant chunk—between 25% to 40%—of the total IT budget. From their side, they ssume that these systems belong to those that asked for it and, more inportantly, are using them on a daily basis.

The assets created in this whirlwind, however, often lack true ownership or management. They are like orphaned creations, left in the corporate IT landscape without attention.

Segregating Is the Key: A Blueprint for Change

To rectify this situation and bring about a healthier balance, we need to establish a clear segregation of responsibilities. Specifically, accountability for information system asset management must be delineated from the realm of short-term project management. Those tasked with project delivery should not be the same individuals managing the assets' well-being. Just like the city workers digging the street to install pipes are there to do the job, now, and as fast as possible. While this division may introduce tension between long-term asset management and short-term project goals, it's a healthy tension—one that can recalibrate the current imbalance.

The Path Forward: Unlocking the Hidden Value of IT Asset Management

In closing, the future of corporate IT hinges on creating a stark demarcation between asset management and project-driven roles. By fostering a culture of accountability and a clear division of responsibilities, we can unlock the hidden value of IT asset management. It's time for a transformative shift away from a project-centric approach toward one that nurtures long-term asset growth and sustainability, ensuring the full potential of our IT investments is realized.