What is asset management software?

What is an asset management software?

Asset management software is a digital tool designed to help companies track, maintain and optimize their assets, ranging from equipment to machinery to IT resources. By automating these processes and centralizing the information, businesses can maximize efficiency while reducing costs and operational disruptions.

 This article will look at different types of software asset management, how it works and the diverse benefits it can provide.

How does it work?

Over time, companies accrue more and more assets. Eventually, one of the smartest investments they can make is putting resources towards ensuring these assets are being used to their greatest benefit. 

This is where enterprise asset management comes in. These programs provide a centralized platform where businesses can easily sort and analyze information about every asset they own, no matter its age or location.

While investing in bureaucracy to fight bureaucracy might seem counterintuitive, it’s important to contemplate how difficult and time-consuming it is to track even a small number of assets. When you consider how messy it can be to keep track of every streaming service, utility cost, car repair and monthly bill a single person has to pay, it’s easy to see how a business with complicated assets would benefit from handing over these responsibilities to high-powered software.

Types of assets

Quality asset management software is versatile, able to oversee multiple kinds of investments.

• Physical assets: machinery, vehicles, real estate and equipment
• IT assets: software licenses, computers, servers and network devices

 Some platforms are superior at managing different kinds of assets, so it’s important to research these differences when looking at which software will best benefit your company.

Advantages to using asset management software

While simply being organized is its own strength, there are more benefits to asset management that flow from that organization.

Efficiency

By automating the tracking of every asset they own, companies are able to reduce the manpower required to constantly update the status of their every investment. Efficiency also comes from data-driven decisions.

Improved decision making

When a business can look at a simple chart that informs them of the productivity of a certain asset over a given amount of time, it suddenly becomes easy to tell if that asset is worth its cost or if it can be used more effectively. A warehouse that feels important might prove to be underutilized, or a software license that was a good investment five years ago might now rarely be utilized by employees. 

This data, provided by asset management software, is what lets companies make smart decisions about the investments they own.

 Cost savings

Of course, this efficiency and data-driven decision-making leads to saved money and time. An underused asset is a wasted resource, and when assets are ignored, it’s more likely that they unexpectedly break.

Preventative care

Part of asset tracking is making sure investments, both physical and digital, are cared for. Just as large production machines have regularly scheduled maintenance, most assets benefit check ups and preventative care. Unexpected breakdowns causing delays or surprise expenses can be hugely detrimental to companies. 

Again, this amount of information is difficult to manage and almost impossible to oversee if it isn’t kept in one place. Asset management software fixes that.

Compliance

As assets are tracked and preventative maintenance is scheduled, management software can measure the state of those assets against regulatory statutes. Particularly with IT assets, different types of software licensing models come with specific compliance requirements, making it essential for companies to stay informed to avoid legal and financial penalties.

 Accuracy

Gone are the days of a thick book next to a machine documenting who checked it when. These methods are not only time consuming, they’re riddled with opportunities for human error.
 

Covering your assets

 Once a business reaches a certain size, its assets become too difficult to track manually. With quality asset management software, companies can follow the status of every one of their investments and ensure that it’s being used to its maximum benefit safely.

To learn more about the fine print of introducing asset management to your company, check out our post on software license agreements!