The risk factor of business

An asset management system is no longer an option, it has become a need for any organisation to thrive. From managing your employees, managing movable and immovable assets within the company to keeping financial records – an asset management system has proven to be one of the most crucial aspects for any business

It continues to be one of the primary priorities of organisations all over the world. Understanding the asset management process also helps businesses derive more value and achieve the business goals. Knowledge and understanding of assets within an organisation unlock efficiency and greater accountability. Management systems play a huge role when making crucial business decisions, as they can be used as a guide.

A fit-for-purpose system in place that speaks to your business is key, as it enables you to  have a record of assets, maintenance plans and, moreover, has all relevant information about the actual asset. A well-chosen asset management system creates a steady data stream through asset tracking in real-time, encourages accountability and keeps planning on track. You could mitigate risks that can affect the business or operations negatively.

We have seen a revolution in different aspects – businesses and organisations are catching up very fast. Smart businesses don’t waste time with manual tasks where they can easily, accurately and productively complete the tasks electronically effortlessly and use the time to focus more on value-added activities. Tracking and managing assets digitally help avoid pain points of inaccurate data with no way of knowing where the assets are and how they are performing.

Benefits of an asset management system

  • Save time and resources;
  • Better risk management;
  • Less legal risk; and
  • Improved accuracy compared to manual system.

Types of asset management that needs an asset management system

  • Digital asset management – Efficient organisation of digital media and content as well as storing it.
  • Fixed asset management – All items used by an organisation to generate income, eg, machinery, equipment, PPE.
  • IT asset management – Management of hardware and software.
  • Enterprise asset management – Organises, integrates and optimises any physical asset or infrastructure a company owns through their entire life cycle, eg, documents, productivity, records.

Risks associated with having no asset management system in place

Lack of inventory of company assets can lead to loss of assets, increased costs, compliance breaches and poor performance.

  • Poor ROI.
  • Failure to comply with regulations around your assets may drive up your insurance costs.
  • No asset information, loss of income as assets can be misplaced and no one will have a clue.
  • Ghost assets, which might not exist, as there is no tracking system in place.
  • Inaccurate data, which will affect operations within the company.

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Editorial contacts

Ntombi Mazibuko
Chief Marketing Officer
Marketing@maredit.co.za