IT assets should be managed with a cohesive strategy with every division's support.
Leaders at small businesses should know that IT asset management doesn’t just mean the proper cataloging of computers and software. It's crucial to grasp how their assets are used and the potential risks they pose. Gartner emphasizes that having a cohesive strategy where various teams, such as finance and operations, manage their assets alongside each other helps prevent mismanagement and even misplaced assets.[1]
Phyllis Drucker[2], a service management expert, echoed this sentiment during our conversation:
"When individual departments tackle asset management independently, the approach becomes disjointed and the data unreliable. This lacks a big-picture view, making the whole effort less effective."
Phyllis Drucker
Service management expert
True IT asset management goes beyond mere tech tracking. Discover how to make savvy business decisions around your IT devices, including adhering to standards such as HIPAA and PCI to sidestep hefty penalties and fines tied to them.
Discover and create a detailed inventory of all your IT assets
Drucker emphasizes the importance of a detailed inventory for effective IT asset management. Without it, you risk making redundant purchases and exposing your network to security vulnerabilities, such as unauthorized access. This process is also known as a hardware inventory audit.
1. Discover the assets inside your home network
Your business’s home network is the backbone of your company’s IT infrastructure. It includes desktops, laptops, printers, network switches, and more. Neglecting this can lead to security risks such as data breaches and operational inefficiencies such as network downtime.
2. Locate assets outside your home network
Drucker advises not to overlook assets outside your internal network, such as remote laptops, mobile devices, cloud-based tools, and more. Failing to account for these infrastructure components can result in compliance penalties, such as General Data Protection Regulation (GDPR) fines for mishandling customer data.
Techniques for asset discovery and inventory creation
Drucker talks about a few asset discovery techniques that are used in the industry to properly identify and catalog IT assets. These techniques ensure that you have a comprehensive and up-to-date inventory.
Agent-based technique: An agent is a small software program installed on each device to actively monitor and send data back to a centralized system. These agents are installed to collect information such as software versions and hardware statuses. IT professionals use IT asset management software (ITAM) to manage these agents.
If not configured properly, these agents can consume system resources such as processing power or storage, slowing down the IT device. However, when executed well, they offer detailed insights such as real-time hardware performance metrics and software license statuses.
Agentless technique: IT professionals scan the network for devices without installing any software, making it less intrusive as it doesn't consume device resources. It's generally performed using network scanning tools that have features such as SNMP (Simple Network Management Protocol) to collect data. While it's less intrusive, it may not capture all details, such as real-time performance metrics or detailed software licensing information.
For small businesses with budget constraints and very limited resources, Drucker recommends the agentless technique. It’s a much quicker and less resource-intensive way for them to get a snapshot of their IT assets.
Get everyone on the same page about what counts as an asset
According to analysts at Gartner, asset inventory management isn't just an IT responsibility; it's a team effort. Why? Because each department interacts with assets differently, affecting their lifespan and compliance.
IT often oversees assets across various business units but may not have full visibility into all of them. This is why IT often juggles multiple priorities, from financial concerns to operational needs and facility management. Gartner suggests setting up a cross-functional team to address the diverse needs of each department.[1]
Drucker warns that small businesses often ignore tracking less expensive items such as mobile devices. "Ignoring these can lead to security risks like unauthorized access or data breaches," she adds.
How each department can work with IT for better asset management
Finance team: They focus on tax planning and asset depreciation. When a new asset, such as a computer, is bought, they need to update financial records. By sharing budget data and financial constraints with the IT department, they can help plan future asset purchases more effectively.
Business operations: This team uses tools such as CRM software and project management apps daily. They can help the IT department by regularly updating them on what tools are actually in use, helping to eliminate redundancies and save costs.
Facilities: They manage assets such as security cameras and smart thermostats. By sharing information on the status and effectiveness of these assets, they can help the IT department focus on securing and optimizing the right equipment, reducing both security risks and operational costs.
End-user IT: This includes personal devices such as laptops, smartphones, and smartwatches. The end user can assist the IT department by promptly reporting any issues or requirements, ensuring that these devices are both secure and functional for tasks such as remote work.
Data center IT: They're responsible for servers and storage units. By providing real-time data on the performance and security status of these assets, they can help the IT department take timely actions to prevent vulnerabilities and optimize performance.
By understanding and respecting each department's unique ITAM requirements and fostering a culture of inter-departmental collaboration, businesses can create a more effective and comprehensive IT asset management strategy.
Yet, Gartner emphasizes it's crucial to have a leader who ensures everyone follows the asset management rules, making the process more effective and compliant.
Meet all regulatory and licensing requirements
Gartner analysts emphasize the importance of ensuring that your business meets all regulatory commitments, asset usage terms, and licensing conditions before it is audited. Failing to do so can lead to hefty fines and damage your reputation. It’s smart to check out the U.S. Department of Health and Human Services’ policy for information technology asset management.[3]
Who can audit you?
Audits can come from various sources, both internal and external.
What do you need for an audit?
There are seven key components you may need when facing an audit:
Hardware inventory: Auditors often request this to ensure that all physical assets are accounted for and are being used efficiently. This includes computers, servers, printers, etc. You can gather this information through fixed assets management software, which will provide a detailed list of all hardware assets.
Environmental compliance: This is crucial for verifying that your business is following environmental laws, such as Waste Electrical and Electronic Equipment (WEEE) or Restriction of Hazardous Substances (RoHS). Auditors may ask for this to ensure you're responsibly recycling or disposing of old hardware. You can maintain records of your recycling or disposal methods to present during an audit.
Virtualization inventory: This is requested to keep track of all digital assets such as virtual machines and cloud storage. It's managed by a software asset management (SAM) system, which can automatically catalog these virtual digital assets. Knowing what's in your virtual environment can help you optimize costs and improve security.
Software deployment/consumption: Auditors want to see this to ensure you're complying with software license terms. SAM tools can alert you if you're nearing your license limit or have unused licenses, helping you avoid penalties.
Cybersecurity compliance: This is vital for confirming that your business is secure against cyber threats, and involves both hardware and software asset management. SAM ensures all software is updated with the latest security patches, while hardware asset management confirms that devices have the necessary security configurations. You can use a combination of SAM and hardware asset management tools to gather this asset data.
User data: This includes information such as user profiles and saved passwords. Auditors may request this to ensure that user data is secure and managed appropriately. Both hardware and software assets management tools can help you compile this information.
Entitlement data: This is all about making sure you're using the software within its licensing terms. Auditors will ask for this to confirm you're not violating any terms, which could lead to penalties. SAM software can help you easily gather this information by tracking license usage and limitations.
On average, businesses get hit with about two to three software audits every year. So, it's not about "if" you'll be audited, but "when." Being prepared with a solid asset management plan can make these audits go smoother and catch fewer mistakes.[1]
Sometimes, businesses miss tracking hardware that's not connected to their network, which can cause problems during an audit. By staying ahead of the game and using software tools to manage your critical assets, you're making audits easier and keeping your business on the right side of the law. This is good for both your reputation and your wallet.
Manage your IT assets from start to finish
It's easy to lose track of your business assets, such as laptops or smartphones, if you don't have a solid plan. A department often orders a new device, but once it arrives, there's no system to ensure it's properly managed. This can lead to gaps in your asset management strategy.
Drucker recommends doing a physical check of where your assets are stored. If it's a place many people can access, you should do this every quarter. But if it's a secure location with specialized staff and asset tracking systems such as RFID, once a year should do.
Right now, many businesses manually add new assets to their asset management systems, and these assets might sit around until someone remembers to deal with them. This is a problem, especially when different departments such as IT, finance, and operations all have a stake in asset management. So, make sure your IT asset management process includes everyone who needs to be involved.
Don't wait for an audit to catch you off guard. Regularly check your asset management process to make sure you're covering all your bases:
Request, approval, and procurement: This is when you identify what assets you need, like a new batch of laptops, and get the green light to buy them. Make sure you have a system, either manual or automated, to log these new assets as soon as they arrive. Overlooking this can lead to gaps such as unrecorded assets or mismatched inventory data.
Asset storage/provision: This involves knowing where your assets are, even if they're not in use. For example, a printer may be network-connected but stored in a different building. Gartner warns that up to 30% of assets can go missing, so secure them in a locked location.
Discovery: This is about identifying new assets connected to your network. For instance, if someone plugs in a new router, it should be formally approved. A formal process helps by setting guidelines for what can be connected, ensuring only secure and necessary items are added.
Monitor/audit: This is your asset health check. For example, you might review software licenses annually but check high-risk items such as servers every quarter. It includes verifying the condition and compliance status of these high-value or high-risk assets.
Service/version control: This ensures your software is up to date. For example, make sure all PCs run the latest antivirus version. It's crucial for security and functionality. Also, keep tabs on assets that are offline for maintenance to avoid a wild goose chase later.
Retirement/disposition: This is the end game for your assets. Gartner suggests using a third-party service for this. Make sure your IT asset disposition partner sanitizes all data-bearing devices as per NIST 800-88 standards[4] and recycles them according to industry standards like R2[5] or e-Stewards.[6]
Drucker stresses the need for timely equipment refreshes, such as replacing laptops every three to four years. Failing to do so can lead to issues such as slow performance, affecting both employee productivity and customer service. To make this routine, set reminders or schedule periodic reviews to assess the condition of your assets.
Monitor the numbers you need to know
Drucker says that ITAM reports are crucial for making your ITAM process as efficient as it can be. They help you gauge how you are doing at each step.
If you aim to craft a savvy IT budget, consider these ITAM metrics
Determine the average cost of each computer setup to better forecast your IT budget. For instance, if a typical workstation setup costs $1,200, you'll have a starting point for budgeting future tech upgrades or new hires.
Get a handle on the average cost per software license to better manage your software budget. For example, if a typical office software suite costs $150 per user, you'll know how much to set aside when you're planning to expand your team.
Assess your yearly spending with each of your vendors to pinpoint where the bulk of your IT budget is going. For instance, if you're spending $5,000 a year with one supplier and $2,000 with another, you'll know which relationships might need renegotiating.
Calculate the total value of all your IT assets to get a full picture of your tech investment. If the combined worth of your laptops, servers, and software comes to $50,000, you'll have a better understanding of your IT capital.
If you want to make well-informed purchasing choices, keep an eye on these metrics
Track the rate at which your assets depreciate to make smarter buying choices. For example, if laptops lose half their value in two years, you might opt for a more durable model next time.
Keep tabs on the average fines you're paying for lease violations. If these fines are adding up, it might be time to reevaluate your leasing agreements.
Calculate the average cost to maintain each asset, including repairs and software updates. If you're spending $200 a year to keep a $1,000 laptop running, you'll know it's time to consider alternatives.
Monitor the number of workstations currently in repair. If you find that a significant number are often out of commission, it could be a signal that your hardware needs an upgrade.
If you seek to stay compliant with software licenses, consider these metrics
Measure the ratio of used licenses to purchased ones to avoid either underusing or overbuying. For instance, if you've bought 50 licenses but are only using 40, you might want to reconsider your needs.
Keep an eye on software licenses sorted by their expiration dates to prevent unexpected service interruptions.
Track the number of licenses you have available in reserve so you're never caught short.
If you need to spot inconsistencies in your IT environment, look at these metrics
Monitor the number of unauthorized configuration items in your system. A high number could be a security risk.
Identify which assets are frequently causing service failures. This can help you improve system reliability.
Keep a close watch on your audit history for any irregularities that might indicate issues with asset management or security.
If you're looking to make the most of your existing resources, these metrics can help
Take note of unassigned workstations. These are valuable assets that aren't currently being utilized.
Identify users who have more than one workstation assigned to them. Correcting this could lead to cost savings.
Spot users who should have a workstation but currently don't. This could indicate a gap in your resource allocation.
Modern ITAM tools come with smart report-generating features that can create customized reports for your business at the click of a button. Here are some components you might want to include:
Workstations by operating systems: This shows the distribution of operating systems, (Android, Mac OS, Windows) across your workstations. It's useful for ensuring compatibility and planning upgrades.
Software usage: This metric helps you monitor which software is rarely used, unused, or frequently used. It's crucial for optimizing software investments and reducing waste.
License compliance details: This provides an overview of your software license compliance status. It's essential to include this to avoid legal issues and financial penalties.
/ Advisory note
It's completely understandable to feel overwhelmed by the complexities of managing an entire IT asset management lifecycle, not to mention the diverse metrics you need to track. That's why partnering with an IT service agency can be a game-changer for you, whether you're an IT asset manager or a small-business owner.
Capterra offers a verified list of IT service agencies that can help automate your IT asset management lifecycle. They can connect you with an IT asset disposition provider, set up in-house ITAM software, and share reports quarterly or semi-annually, depending on your agreement.
IT asset management is a continuous journey toward professional execution
Managing your small business IT assets is a continuous process that grows more complex as your business evolves. For asset procurement managers, it's crucial to lay a strong foundation for your company’s IT asset management program. This foundation should be continually strengthened with the five asset management best practices we've discussed in this article.
Navigating the complexities of managing IT assets often involves multiple software solutions and partner interventions. If you're unsure about which hardware asset management software, IT service agency, or asset disposition partner to choose, Capterra offers a free software and vendor comparison template. Fill out the form below to download it.