The number of technology assets that is required to keep a business moving is constantly growing. Yet asset management visibility is a rough point for most small and medium size businesses. Even enterprise-sized organizations struggle to maintain visibility into all of their assets. In fact, according to a study conducted in 2013, ¾ of organizations find it difficult to identify and track IT assets.
Still, the cost of poor asset management has multiple consequences for companies of all sizes. In light of the importance of proper asset management practices, we have decided to outline the cost of poor asset management and the effects that can have on an organization.
Poor Return on Technology Investment
Just like any investment, the ability to track an asset dramatically determines whether or not you can track your ROI. One major cost of poor asset management practices is that you don’t have the data available to determine this ROI.
Misallocation of Resources
Whenever you add new resources to your network, there are a multitude of other assets and people associated with it. For example, if your sales team is about to walk in to a client meeting, their computer issues should be a higher priority than perhaps fixing and HR computer. However, without the proper data associated with different assets, this becomes impossible. When considering the cost of poor asset management, you should evaluate whether you currently have the ability to categorize assets and give them some sort of a hierarchy within your infrastructure.
Inability to Remotely Manage Inventory
The ability to remotely monitor and manage your technology infrastructure is extremely important when it comes to maintaining systems. From Patch updates to security monitoring, you have to have the ability to remotely maintain your technology infrastructure.
Drive Up Insurance Costs
Another cost of poor asset management comes into play when the outdated and un-maintained technology assets within your network lead you to fail a regulatory compliance audit. Like we mentioned above, centrally managing your technology assets allows you to easily keep track of what systems need software updates. Several compliance regulations require that all systems contain current and patched software or the company can be subjected to various penalties and fines. If your company is subjected to regulatory compliance audits, this is an extremely likely scenario.
Inability to Pass Software Audit
Software licenses come with strict instructions and limitations as to how they are to be applied. Without holistic asset management practices in place, it becomes very difficult to keep track of who has what license and how many seats are available. It is common for multiple major vendors to regularly conduct software audits.
Inability to Determine When Assets are Not in Use
When someone in your organization needs a new computer or technology component, you need to know whether or not that is currently available. A huge cost of poor asset management is when an asset is purchased because an available asset that is sitting in the closet has not been tracked properly.
These contributors to the high cost of poor asset management definitely show the importance. Still, managing all those assets can be a daunting task. That is not a good enough reason to not do something about it!! Outsource your asset management to a managed services firm like Orion for full support and insight into your technology assets.