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The Imperative for Intelligent Asset Management in the Digital Era

In today's digital age, effective management of critical assets is paramount. Traditional methods fall short, leaving businesses vulnerable to risks. This article presents a seven-step framework for intelligent asset management, with Asset360 by WWT at its core. Powered by AI and machine learning, Asset360 revolutionizes asset management, integrating data, enabling real-time tracking, and automating workflows.
Introduction 

In today's rapidly evolving digital landscape, effective management of all hardware assets, including data center equipment, operational technology (OT), and Internet of Things (IoT) devices, has become a critical factor in determining an organization's success. However, traditional asset management approaches are insufficient, leading to significant challenges and missed business opportunities. As companies increasingly rely on technology to drive their operations, the complexity of managing these assets has grown exponentially, exposing the inadequacies of legacy systems and processes. 

The Problem: Fragmented Data, Siloed Processes, and Increased Risks 

One of the most pressing issues organizations face is the need for a single source of truth due to fragmented data across multiple systems. Organizations require a wide range of asset data, including IT, OT, and IoT devices, to meet the needs of different stakeholders; yet, often, critical information needs to be systematically collected and shared with those who need it.1 This leads to conflicting information and hinders decision-makers from making informed choices. In fact, research reveals that most organizations do not have a complete asset management life cycle process that tracks location and status from procurement through disposal, and physical inventories are rarely completed beyond physical IT touchpoints.

Compounding this problem is the prevalence of siloed processes and legacy technologies. Legacy technologies implemented to manage today's assets were deployed in silos, managed by different parts of the organization, and deployed to solve one or two narrow business problems.1 This limits asset life cycle optimization, can increase operation risks, and leaves value stranded. The consequences of these siloed approaches include suboptimal resource allocation, increased operational risk, and missed cost optimization opportunities. It is estimated that organizations waste millions of dollars on stand-alone asset management tools and limited, short-sighted processes that do not provide an end-to-end solution or address potential savings or risk avoidance on noncompliance areas.

Furthermore, poor asset management practices can lead to various risks, including:

  • Financial losses due to unnecessary expenses, asset depreciation, and inefficient use of resources. Research indicates that violations of regulations and fixed asset tax audits are driving fines and audit expenses. Most are associated with inaccurate location management or lost or stolen assets.
  • Decreased productivity resulting from downtime, slow performance, and inefficient asset utilization. If assets are not properly maintained and managed, they can break down or malfunction, leading to costly downtime. Downtime can result in a loss of productivity, as critical systems may become unavailable.
  • Security vulnerabilities, such as unauthorized access, malware, and data leakage. Outdated or unpatched software and hardware can be vulnerable to cyber-attacks and malware, putting sensitive data and systems at risk. It can lead to data breaches, loss of data, and damage to the organization's reputation.
  • Compliance issues, including licensing violations, data privacy breaches, and regulatory non-compliance. Many industries have regulatory requirements that dictate how assets should be managed. Poor asset management can result in non-compliance with these regulations, leading to fines, legal action, and reputational damage.
  • Reputation damage stemming from data breaches, system failures, and IT-related issues. If sensitive data is compromised due to poor asset management practices, it can lead to a loss of trust and confidence among stakeholders. This loss of trust can result in reduced sales, negative publicity, and legal action against the organization.

Organizations need a structured approach that encompasses best practices, advanced technologies, and a holistic view of the asset lifecycle to address these challenges and mitigate the risks associated with poor asset management. By adopting a comprehensive framework for asset management, businesses can lay the foundation for improved operational efficiency, reduced costs, and enhanced security.

A Framework for Effective Asset Management 

To mitigate these risks and overcome the challenges associated with poor asset management, organizations can follow a simple framework:

  1. Conduct regular audits: Regularly auditing assets helps identify inefficiencies and compliance issues, allowing for timely corrective action. It is recommended that organizations monitor and audit the verification of assets. From a client survey, the most common answer is once per year, but 24% of clients in the same survey reported that they had not verified their assets in the last five years.
  2. Develop a comprehensive asset management plan: Create a plan that outlines policies, procedures, and controls for managing assets throughout their lifecycle, from procurement to disposal. Organizations should define the governance scope of asset management by including all other data-generating hardware (such as IoT devices), regardless of whether the organization owns it, as part of the total process.
  3. Implement an asset tracking system: Utilize an asset tracking system to monitor the location, condition, and value of assets, enabling quick identification of missing or stolen items. Automated data collection through bar codes or RFID tags may be available to speed data collection — especially for more extensive, geographically distributed organizations.
  4. Train employees: Train employees on the proper use and maintenance of assets, emphasizing the importance of asset management best practices. Creating and implementing a change management plan, including culture change and skills development, is crucial, particularly in IT/OT skills cross-training.2
  5. Establish a risk management framework: Identify and assess potential risks associated with asset management and develop strategies to mitigate those risks. Organizations should proactively manage reputation risk around ESG controversies and greenwashing allegations. Regularly audit public sustainability claims against the latest regulatory guidelines.
  6. Leverage technology: Employ asset management software and tools to automate and streamline processes, reducing errors and improving efficiency. It is predicted that by 2025, 15% of enterprise asset management (EAM) deployments will require CIOs to include OT software configuration, maintenance, and tracking in the scope of the maintenance solution due to the intrinsic embedded software in the asset.
  7. Monitor and evaluate: Continuously monitor and assess asset management practices to identify areas for improvement and make necessary adjustments. Organizations should adjust the IT strategy to accommodate the asset management strategy. Both will need to change as the dynamics of the asset and business environments evolve and new capabilities emerge.

While the above framework provides a solid foundation for effective asset management, implementing it can be challenging, especially for organizations with complex IT environments and limited resources. This is where intelligent asset management solutions like Asset360 come into play, building upon the framework's principles and leveraging advanced technologies to streamline and automate the asset management process.

The Solution: Asset360 - Intelligent Lifecycle Management

Asset360, developed by World Wide Technology (WWT), is an intelligent asset management solution that harnesses the power of artificial intelligence and machine learning to revolutionize asset lifecycle management for all hardware, including data center equipment, OT, and IoT devices. By building upon the principles outlined in the asset management framework, Asset360 enables organizations to take their asset management practices to the next level.

Seamlessly integrating data from multiple sources, including asset, financial, and telemetry systems, Asset360 provides a unified view of an organization's entire asset landscape. Its key capabilities align with the recommendations outlined in the research, such as real-time asset tracking, predictive maintenance, financial modeling, and automated workflows. Asset management technologies will use an integrated data set generated by systems across domains (IT, OT, ET, and IoT).

Real-World Results: Proof of Asset360's Effectiveness 

The effectiveness of Asset360 has been demonstrated through real-world implementations across various industries. For instance, one client struggling with End-of-Vendor-Support (EOVS) compliance leveraged Asset360 to achieve a 99.4% compliance rate, reduce manual labor by 30-50%, and establish a scalable machine learning platform for ongoing optimization. Another client utilized Asset360 to rationalize their asset inventory, resulting in initial savings of over $6 million, accelerated data center decommissioning, and actionable insights through data visualization.

The Way Forward: Embracing Intelligent Asset Management 

As the pace of digital transformation accelerates, the need for intelligent asset management solutions like Asset360 will only continue to grow. Companies that embrace this shift will be well-positioned to navigate the complexities of the digital age and achieve sustainable competitive advantage. It is predicted that by 2025, 15% of enterprise asset management (EAM) deployments will require CIOs to include OT software configuration, maintenance, and tracking in the scope of the maintenance solution due to the intrinsic embedded software in the asset.1 By partnering with a trusted provider like WWT and leveraging the power of Asset360, organizations can accelerate their journey toward intelligent asset management and unlock the full potential of their investments in all hardware assets.

Final Thoughts

In conclusion, effective asset management for all hardware, including data center equipment, operational technology, and IoT devices, has become a business imperative in the era of digital transformation. By following a structured framework and adopting intelligent asset management solutions like Asset360, organizations can mitigate risks, optimize performance, reduce costs, and drive innovation. Research underscores the urgency of this shift, highlighting that the long-term success of asset-intensive organizations is tied directly to the availability and reliability of their assets.1 The time to act is now - embracing data-driven decision-making and intelligent automation is crucial for securing a competitive edge in the digital future.

 

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  1. Gartner, "Market Guide for Hardware Asset Management Tools," 2023
  2. Gartner, "Create an Asset Management Practice as the First Step to Reducing Cost and Audit Risks," 2023
  3. Infraon, "Top Problems Due to Poor Asset Management," 2023
  4. Gartner, "Corporate Sustainability Priorities for 2024," 2024