IT asset management (ITAM) is a "set of business practices that incorporate computer assets in all business units within an organization or company.

An IT Asset Management program is more effective if the necessary tools are provided to support the processes of using IT data.

Building an effective IT asset management program is always about people, processes and tools. Getting all three to work together effectively is not easy.

Asset management is important because it can help organizations to:

1. Reduce the total costs of operating your assets
2. Reduce capital costs of investing in the asset base
3. Improve the operational performance of your assets (reduce the failure rate, increase availability, etc.)
4. Reduce the potential negative effects on the health of operating the assets
5. Reduce the security risks of operating the assets
6. Minimize the environmental impact of operating the assets
7. Maintain and improve the reputation of the organization
8. Improve the regulatory performance of the organization
9. Reduce the legal risks associated with the operation of the assets

The key to good asset management is that it "optimizes" the aforementioned benefits and determines the best combination of activities in order to achieve the best balance for the benefit of the organization.

The ITAM is explicitly oriented to help organizations meet the defined objectives and determine the optimal combination of activities according to these objectives.

Assets have a life cycle based on 4 essential points that are worth examining and understanding this key concept of asset management.

1. Acquire: Plan, design and buy an asset. The correct application of these activities ensures that the asset is correct for its purpose.

2. Start-up: This includes all activities to install / create or build the asset and ensure that it is fully operational

3. Operate: During this period the asset must undergo monitoring, maintenance, renovation and potential updates appropriate to comply with any type of change in operational or state requirements. For many assets, this phase lasts decades. This is the phase with which engineers are most familiar.

4. Disposal: This is a key period in the life of an asset. Key activities during this period include removing the asset from operation, disposing of or recycling the asset or its components and providing information for planning the replacement of the asset according to the efficiency of the operation and the failure modes with which we we find.

Assets can last longer than the life of a human being and therefore it can be difficult to consider asset disposal when this will happen in such a distant future.

Asset management teaches us that if we ignore any stage of the life cycle of an asset we do so at our own risk.