IT Asset Management – Asset Management Process

IT Asset Management Process

IT Asset Management (ITAM) is a business practice which comprises of some prime Asset Management process like:

Financial management for IT assets which defines a standardized process for establishing the budgeting, accounting, and charging goals, policies, and various other financial aspects of IT assets.

IT Asset procurement which defines a standardized process for procuring IT assets from a supplier at economic costs and with good quality.

IT Asset inventory which defines a standardized process for tracking, arranging and managing the organization’s stock of valuable IT assets in structured way.

Software license management which defines a standard process to manage and optimize the purchase, deployment, maintenance, utilization, and retirement of software within the organization.

Asset Disposal which defines a standard process to decommissioning the IT assets (due to damage/ loss/ theft/ EOL) as per the organizational, legal, and environmental requirements.

IT Asset Management Process, Asset Management Process
IT Asset Management Process

 

IT Asset Management Scope

In Scope

  • Classifying the IT asset portfolio according to type, model, manufacturer, and so on, from introduction to disposal whether in the productive or non-productive state
  • Managing the lifecycle of IT assets
  • Associating IT assets to people, places, things, cost center, cost type, purchase order and contract
  • Tracking costs related to IT assets
  • Tracking contracts related to IT assets
  • Reconciling data on the IT asset identifier
  • Recording IT asset attributes useful for the Service Management processes

Out of Scope

  • Purely Configuration Management – configuration items (CIs) will be included within the total number of assets managed but these will appear as physical items
  • Change or Release Management for configuration items
  • Associating CIs with CIs
  • Tracking changes related to CIs or the fixed asset register within accounting or enterprise resource planning terminology
  • The central contract management solution
  • Reconciling data on the CI name
  • The Service Management solution

IT Asset Management Objectives

The objective of IT Asset Management is to:

  • To give real time and accurate view on IT assets, creating an IT Asset repository that is up to date and accurate information for decision making and establishing compliance with regulations and policies.
  • To control assets under contracts ensuring the organization doesn’t use IT assets more than what is licensed for, or pay for IT Assets which they no longer have or use.
  • To retire securely and effectively to ensure adherence to environmental regulations and data security policies and improve IT asset reuse.

IT Asset Management Processes

Financial Management For IT assets – Process flow

Financial Management For IT assets
Financial Management For IT assets

 

Step 1: IT Finance Manager creates Fixed Assets (Capital Assets) in the Fixed Asset Register (FAR).
Step 2: IT Asset Manager relates the fixed asset number to the corresponding assets in the Asset Management System (AMS).
Step 3: IT Asset Manager determines the book value and residual for assets.
Step 4: IT Finance Manager adjusts the Fixed Asset Register (FAR) based upon the impairment information received from the IT Asset Manager.
Step 5: IT Finance Manager determines the book value for fixed assets.
Step 6: Accounts Payable receives the invoices sent by suppliers.
Step 7: IT Asset Accounts Payable Manager books all invoices. Invoices must be matched to a contract or a purchase order and the individual PO Lines or Assets involved.
Step 8: The IT Accounts Payable Manager verifies against documents like purchase order, receipt of assets, asset invoice, inspection of unpacked assets.
Step 9: Accounts Payable pays the invoice.

IT Asset Requisition – Process Flow

IT Asset Requisition - Process Flow
IT Asset Requisition – Process Flow

 

Step 1: IT Asset Coordinator reviews the IT asset request. Verify if the request and the request lines containing the IT assets are valid.
Step 2: IT Asset Coordinator checks if decommissioning of IT Asset is required based upon the individual request lines.
Step 3: IT Asset Coordinator identifies which type of IT Asset component need decommissioning.
Step 4: IT Asset Coordinator checks whether the requested IT Hardware and Service Assets can be delivered, are part of the IT Catalog, and that they are fit for purpose.
Step 5: IT Asset Coordinator updates the IT asset request stating if the IT Asset is a valid or invalid based on the outcome of the IT Asset Planning and Portfolio Management activities.

IT Asset Procurement – Process Flow

IT Asset Procurement - Process Flow
IT Asset Procurement – Process Flow

 

Step 1: IT Asset Procurement Manager creates the IT asset purchase request.
Step 2: IT Asset Procurement Manager uses the vendor selection and contract selection activities to determine the best vendor and contract options for the purchase.
Step 3: IT Asset Procurement Manager requests a quote for the purchase order’s non-catalog items from the vendor
Step 4: IT Asset Procurement Manager receives a quotations from the suppliers.
Step 5: IT Asset Procurement Manager obtains technical & financial approvals.
Step 6: IT Asset Procurement Manager orders the IT assets from the selected vendor. The order is based upon pre-approval or on the quotation and approval.
Step 7: IT Asset Procurement Manager closes the order when all IT assets ordered are received in full and after all invoices are paid. Before closing, validation is taken from other relevant processes and the organization.

Software License Management – Process Flow

Software License Management – Process Flow
Software License Management – Process Flow

 

Step 1: Software Asset Manager checks if sufficient licenses are available for the requested software.
Step 2: Software Control and Distribution Manager processes the entitlement and/or license for software.
Step 3: Software IT Asset Manager receives the proof of software license.
Step 4: The Software Control and Distribution Manager monitors the software entitlements and types of licenses.
Step 5: Software Asset Manager audits the license, entitlement & usage pool.
Step 6: Software IT Asset Manager checks and determines if product de-installations or license purchase is required to be compliant with both external legal regulations and internal company policy. Accordingly Software License Analysts will revoke or de-install in order to achieve compliancy.

Inventory Asset – Process Flow

IT Asset Inventory – Process Flow
IT Asset Inventory – Process Flow

 

Step 1: IT Asset Inventory Manager checks if the requested IT Assets are in stock.
Step 2: IT Asset Inventory Manager checks if Asset needs to be refurbished. If the asset needs refurbishment, IT Asset Inventory Manager initiates the process to refurbish IT Assets.
Step 3: IT Asset Inventory Manager determines the minimal stock levels for the IT Catalog items and replenishes stock as necessary.
Step 4: IT Asset Inventory Manager determines the suitable method of tracking identification. Determine how and via which attributes IT Assets should be identified.
Step 5: IT Asset Inventory Manager tags the IT Asset. The IT Asset tag is used for tracking the asset.
Step 6: IT Asset Inventory Manager notifies the IT Asset Manager that the IT Assets are tagged and can be deployed within the organization when needed.
Step 7: IT Asset Inventory Manager audits the inventory of the entire organization both on deployed assets (installed base) and operational stock assets.

IT Asset Retirement and Disposal – Process Flow

IT Asset Retirement and Disposal – Process Flow
IT Asset Retirement and Disposal – Process Flow

 

Step 1: IT Asset Coordinator determines whether IT assets must be retired or disposed.
Step 2: IT Asset Coordinator checks if replacement is required for the assets in use (As per the organizational policies).
Step 3: IT Asset Coordinator verifies if there are IT assets in use and if there are any dependent assets.
Step 4: IT Asset Disposal Manager determines if multiple assets can (or will) be reused. Decide whether asset components can and will be reused.
Step 5: IT Asset Disposal Manager carries out the disposal or resell procedures as per the policy and guidelines. Also removes all components from the asset (for future (re)use of for disposal).
Step 6: IT Asset Disposal Manager receives the disposal certificate from the disposal company.
Step 7: IT Asset Disposal Manager notifies the IT Procurement Manager and IT Financial Manager that the disposal is complete. This notification is required to close and satisfy the order to the disposal company.

 

 

You May Also Like

About the Author: Santoshi Para