assetsmanagement

Asset management is the systematic process of developing, operating, maintaining, upgrading and disposing of assets in a cost-effective manner. It aims to maximize asset value while controlling costs, mitigating risk, and ensuring regulatory and safety compliance. In practice, asset management covers the planning and optimization of physical assets as well as associated information and financial aspects across the asset lifecycle.

Scope and types: Asset management applies to a range of asset classes, including physical assets such as machinery, equipment, facilities, and infrastructure; and financial or information assets such as software licenses and data. In enterprises, it is commonly organized into IT asset management (ITAM), enterprise asset management (EAM) for plants and facilities, and fleet or facilities management.

Core processes: Asset lifecycle management includes planning, procurement, deployment, operation, maintenance, renewal and disposal. Asset tracking uses registers, tagging, barcodes or RFID, and data management to maintain an accurate picture of asset location, status and ownership. Financial management covers depreciation, amortization, asset valuation, budget planning and total cost of ownership. Compliance and risk management address regulatory requirements, safety standards, audits and security controls.

Tools and standards: Many organizations implement asset management through specialized software—ITAM systems, EAM/CMMS, CAFM or ERP modules—often with asset registries, maintenance scheduling, and reporting dashboards. Standards such as ISO 55000 provide a framework for governance, risk management and continuous improvement.

Outcomes and challenges: Effective asset management can improve reliability, extend asset life, reduce downtime, optimize capital expenditure and support strategic decision-making. Challenges include data quality and integration, siloed information, organizational change, and aligning assets with business objectives.