Asset Management Concepts

Updated on 23 Aug 2024
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Asset Lifecycle Status

The Asset Lifecycle Status provides a dynamic framework for categorizing and tracking the progression of assets through various key statuses, each signifying a distinct phase in their lifecycle.

The following table provides details about the various Asset Lifecycle statuses and their significance:

Asset Lifecycle Status	Description
🆕 New	The status New is a default status that cannot be selected by the users. It is assigned by the application after an asset is created.
🏬 In Store	The status In Store is assigned to an asset when it is physically present and stored at a specific location within the organization.
👤Allocated	An asset attains the Allocated status when it is designated for use by a specific user, location, or department within the organization.
🔨 In Repair	Assets undergoing maintenance, whether for hardware or software issues, are categorized as In Repair.
⛔ In Active	Assets deemed irreparable due to factors such as high cost, extensive damage, or loss are classified as In Active.
✈️ In Transit	Assets in movement are captured under the status In Transit, indicating that the process of asset relocation or transfer has been initiated.

Asset Categories

Asset Categories typically refer to classifications or groupings of IT assets based on various criteria such as their function, type, lifecycle stage, or ownership. The specific categories may vary depending on the organization and its IT infrastructure and the selected Asset Type.

The following table provides details about the various Asset Categories:

Asset Category Type	Examples
🖥️ Fixed Asset Categories	Laptop, Desktop, Tools and Hardware, Router, Firewall, Manufacturing Equipment, Server etc.
🎧 Accessory Categories	Monitor, Mouse, Keyboard, Microphones, Flashdrives etc.
✏️ Consumable Categories	Cleaning Supplies, Office Supplies, Batteries, Cables and Connectors etc.
📤 Software Categories	Note For Software, the categorization is done based on Publisher and License Details.

Asset Actions

Asset Actions refer to the various processes and operations carried out during the lifecycle of an IT asset. These actions are crucial for maintaining an organized, secure, and efficient IT environment. Here are brief explanations for some key Asset Actions:

Asset Action	Description	Purpose
Allocation	Allocation involves assigning an IT asset, such as hardware devices or software licenses, to a specific user, department, or location.	This ensures that resources are appropriately distributed, and it helps in tracking the ownership and responsibility of each asset.
Deallocation	Deallocation is the process of unassigning or releasing an IT asset from a user, department, or location.	It helps in optimizing resource usage by reclaiming assets that are no longer needed, allowing for efficient reallocation elsewhere.
Deactivation	Deactivation involves disabling or turning off an IT asset, such as software licenses or user accounts, temporarily or permanently.	This action is typically performed when an asset is not in use or needs to be temporarily disabled, reducing security risks and optimizing system performance.
Reactivation	Reactivation is the process of enabling or restoring a previously deactivated IT asset.	When assets need to be brought back into active use, reactivation ensures a seamless transition without the need for reinstallation or reconfiguration.

Variance

Variance refers to the deviation between expected and actual quantities or states of hardware and software assets within an organization's inventory. Organizations need to monitor and manage variance to ensure accurate accounting, optimal resource allocation, compliance, and security.

Hardware variance
This typically involves discrepancies between the expected and actual quantities, conditions, or locations of physical IT assets such as computers, servers, networking equipment, and peripherals.
Example: ACME IT Services expects to have 100 desktop computers in its inventory, but upon physical audit, it discovers only 90 computers. This represents hardware variance, indicating that there are 10 fewer desktop computers in stock than expected. The variance could be due to theft, loss, misplacement, or incorrect recording.
Software variance
This refers to differences between the expected and actual quantities, versions, licenses, or usage of software applications and licenses within an organization's IT infrastructure.
Example: ACME Solutions purchases 50 licenses for a specific software application but finds during an audit that it has installed the software on 60 computers. This indicates a software variance of 10 licenses. It could be due to unauthorized installations, failure to track installations accurately, or improper license management.

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