We know what asset management is, right! Managing assets for boosting productivity and increasing asset life so that business outcomes increases and so on. Strategic asset management also does kind of the same! However, the only difference it includes long-term planning!
What exactly is strategic asset management, what is the objective it, and how it can be helpful? We will find out in this blog now! So let us begin.
According to Grand View Research, “The global asset management market size was valued at USD 216.98 billion in 2019. It is expected to expand at a compound annual growth rate (CAGR) of 25.9% from 2020 to 2027.” It is also expected that strategic asset management will grow as it is involved in the planning and maintenance of the infrastructure & assets.
What is strategic asset management?
It is the long-term plan of asset management. Since this process is long, planning is done long term goals are made as per the data available so that the business process is improved. By long term plan we mean 5, 10, 15-year planning ahead
This strategic asset management helps in improving maintenance and operation. The main goal of is to minimize expenses and increase asset productivity.
What assets we own, where are they located, what is their condition strategic management provides an answer to these questions. With strategic asset management, you can plan how to increase uptime, how to decrease downtime, and how asset performance can be optimized.
The aim is to identify and eliminate existing issues once and forever. It also works as a forum that identifies knowledge gaps and gives guidance. For this purpose, you can create a knowledge base that can help in future projects.
Whenever an organization bought something new, the purpose is to increase productivity, optimize return on investment. Strategic management exactly does the same. It plays a crucial role in optimizing asset life. When asset life can work longer when it works longer return on investment increases.
What is the aim of strategic asset management?
Below we have mentioned a few of the main aim:
- Enhancing return on investment is one of the major aims.
- Recognizing the actual worth of strategic asset management to utilities over regular asset management practices,
- Showing this asset management begins from the utility corporate strategy and mission
- Creating strategic management arrangement across utility strategies, cycles, and methods
- Incorporating other business capacities, critical to completely and appropriately apply strategic asset management, like human resources, data the executives, account, material administration, and client and partner the board, and
- Fulfilling utility business aims, rehearses, hazard the executives that drive resource ventures and upkeep.
How strategic asset management helps organizations?
It helps organizations by allowing them to extract maximum value from assets and inventories. Strategic asset management is focused on assets that have a long life such as a facility, building, etc. It takes care of maintenance, not every month or 2-month but in years.
Strategic management can help your organization’s employee mindset from short-term planning to long-term planning. It is helpful in optimizing the asset lifecycle.
Key resource the board offers your association the responses to significant inquiries like how much financing do you need for explicit resources, where you ought to spend your spending plan, and which resources are probably going to fizzle.
Industry-explicit calculations help precisely anticipate the future condition and administration condition of a resource portfolio and help make amazing perceptions that delineate what distinctive subsidizing methodologies would mean for resources and administration to illuminate and adjust partners across jobs.
Strategic asset management can be helpful in long-term maintenance especially facilities and buildings. As these buildings and facilities need maintenance regularly but strategic management can help in long-term maintenance. Maintenance is expensive so it should be effective and long durable so that maintenance expenses are justified.
However, asset management software is helpful to organizations in managing assets efficiently. It is helpful in increasing asset life. Moreover, it avoids the sudden breakdown of an asset by providing maintenance on time. This software provides proactive maintenance, not reactive maintenance. Furthermore, it offers several benefits such as ensuring compliance, asset tracking, audit, etc.
Asset management and strategic asset management both are helpful to businesses in their own way. It has the potential to take your business to another level. Asset management can give you an extra edge and might help in keeping ahead of your competitors.