ASSET MANAGEMENT – TRENDS & TECHNOLOGY
WHAT IS ASSET MANAGEMENT?
The process of operating, developing, maintaining, and selling assets cost-effectively is referred to as asset management. Every business entity needs to keep track of its assets. It provides stakeholders with valuable information regarding the availability of assets that can be employed to provide optimal returns.
FUNCTIONS OF AN ASSET MANAGER
The two primary functions of an asset manager are to :
- Understand the role of asset management
- Develop a good asset management plan
IMPORTANCE OF ASSET MANAGEMENT
Businesses should be concerned about asset management for the following reasons:
Assists in guaranteeing the accuracy of amortization rates
- It helps a business to account for all its assets
- Enables identification and management of risks
- Helps remove ghost assets in the company’s inventory
HOW TO DEVELOP A STRATEGIC ASSET MANAGEMENT PLAN FOR THE FUTURE
The strategic enablers that will help organizations deal with the disruptions that the present and the future hold are :
Enabling sustainable cost reduction
Year-over-year costs continue to eclipse revenue growth. Organizations need to establish a framework and a culture to optimize their cost models and return on investment. Some critical levers that can catalyze cost structure transformation are artificial intelligence, shared services, and modernization of operations & technology.
Improving infrastructure agility
The operating model transformation is focused on agility in the manner in which a business is run. Business enterprises need to deliver value almost instantly via acquisition, a significant transformation initiative, or a new product launch. The core to any strategy will be delivering frequent incremental value.
The ability to anticipate the needs of retail and institutional clients will define the future of product development in asset management. A more personalized set of products would need to be created for them. A fresh look at the offerings provided and existing product portfolios is required. Identifying products driving profitability is the first step towards prioritizing the product road -map and capital investment.
Enabling advanced technologies
An organization’s data foundation is critical in facilitating data-powered business use cases. Advantage must be taken of analytical tools that can extract insights from both structured and unstructured data. The key to driving innovation and growth is using emerging technologies like AI, advanced analytics, and machine learning.
An organization’s asset management must have the competitive agility required to pivot quickly in response to unforeseen market events. Sophisticated analytics technologies are essential to steer a business toward sustainable growth. Data Direct can help you respond to today’s complex marketplace and assure you of better opportunities tomorrow.