Why are less than 10% of businesses using IT assest
management programmes, asks Jon Mein
IT asset management projects can help businesses to
reduce costs, comply with corporate governance regulations and
improve the performance of hardware or software. It is therefore
surprising that, according Gartner, fewer than 10% of businesses
have adopted robust asset management programmes.
Gartner defines IT asset management as the business roles and asset
tracking software that enable organisations to control IT assets
throughout their lifecycle.
Put simply, you must first understand what you want from your asset
management projects and then work to achieve this vision by
combining the correct bundle of processes and tools. You should
look to manage assets throughout their entire lifecycle - from
requisition to procurement, deployment, maintenance and, finally,
retirement.
Gartner research shows that businesses that manage IT assets
throughout this lifecycle reap significant rewards. IT asset
management will reduce the cost per asset by as much as 30% in the
first year, and between 5% and 10% annually in the next five
years.
Much of the first-year savings result from process improvements -
standardising on fewer products, suppliers and contracts will
streamline administrative processes and generate savings.
Reconciling invoices and examining contracts to ensure that
negotiated cost savings are realised also offer opportunities for
immediate savings.
To generate these rewards, IT directors need to make a long-term
financial commitment to asset management - about 3% of their annual
IT operating budget. Because of this, it is essential to get
management buy-in.
Much of the cost will go on employing the right people for the job:
picking a good asset manager to drive the programme will be at the
heart of this. This person will need to work with different
departments within the business (such as accounting, legal and
human resources) and will need good communication and business
skills. These skills are in short supply so it may be necessary to
develop someone internally.
Also, expect to spend money on asset management tools. Too many
businesses acquire software tools thinking they will be the
solution to all their IT asset management problems. However, tools
are most effective when they are used to automate existing
processes that are already efficient.
Whether you are just starting an asset management programme or
re-invigorating an existing one, there are key steps you will need
to take.
Learn from the successes and failures of those that already have
robust asset management programmes.
Develop a long-term strategy that focuses on business needs, and
employ an effective and empowered asset manager as team leader to
deliver the strategy.
Finally, choose a project that will generate immediate savings to
demonstrate value to senior managers.
Jon Mein is research director, software asset management, at
analyst firm Gartner
