Asset Management Software: What Does It Do?
Asset management seeks to enhance the value of an organization’s assets, in terms of the benefits
they provide compared to their installation and maintenance costs. These days, asset
management also involves complying with legal requirements regarding health, safety and
environment. For example, computers need to be disposed off in ways allowed by the law.
Asset management software helps businesses to achieve the objectives mentioned above. In a
large enterprise, for example, the software can
ensure that legal requirements are highlighted so
that compliance is facilitated all across the
We look at asset management issues in a little
detail before proceeding to look at the software
Asset Management Issues
accounting for all the assets, and maintaining
them in good condition.
Assets are acquired by businesses to help earn revenues. For example, fixed assets like plant &
machinery help in producing products that are sold at a price above production costs in the
market. The production costs and quality can be improved by managing the asset, plant &
Managing involves not only regular maintenance to keep the equipment in excellent working
condition but also extends to the original design. It is design that determines production
performance and running and maintenance costs. Managing the asset also involves replacing it
when it becomes obsolete or too costly to operate and maintain.
Asset management is thus much more than just accounting and maintenance. Businesses have to
develop maintenance schedules, monitor asset-operating costs, look at new technologies, comply
with health & safety regulations and attend to other aspects. The overall objective is to maximize
Return on Assets.
Return on Assets is improved through:
¾ Appropriate design and installation of the assets to ensure reliability and productivity
¾ Ensuring optimal availability through preventive mai