On the interest of Financially managing IT equipment

Today most IT teams use an asset management tool. Each piece of equipment is monitored during its whole lifespan. This is the management of equipment moves. Well, it is the same with the financial management! You buy a PC for 1000 €; you know that the fast technological progress will make this value close to nil in two or three years: we are talking about obsolescence...Therefore, the first thing you need to think about is how to renew your IT assets.

However, with which Indicators?

The Accounts Department can provide you with information: list of fixed assets, parts and consumable prices, etc. But accounting information usually lacks the precision you require: accountants deal with invoices, you manage equipment...

Furthermore, this information is generally annually processed and not differentiated by division or site. Making equipment management decisions (strategies) on the basis of this sole information is risky.

For all these reasons, you need your own database (available at any time) with the indicators that you would have pre-defined. Controlling the information is always strategic...

You think that it will lengthen your management process! Admittedly, the time spent entering this information cannot be recovered but this way you will secure a fair return on investment... Besides, the flexibility and the reactivity provided by the database will give you the possibility to re-estimate your analysis at any time:

• - Greater budget monitoring with a de-centralization of IT purchases (database);
• - Knowledge of costs per category (software, hardware, maintenance, etc.);
• - Knowledge of your asset purchase value;
• - Knowledge of your asset Net Book Value;
• - Possibility to reconcile fixed assets with the Accounts Department, etc

This information will allow you to:

• • Negotiate with your suppliers according to annual purchases and the age of your IT assets;
  • Have more credibility for your Finance Department and strength in the negotiation of budgets;
  • Calculate a realistic TCO without resorting to an auditing firm (this indicator groups costs related to equipment acquisition and use);
  • Charge your services by activity within your organization (IT department equipment and services).

  You need to follow-up, to control and to know information to anticipate the evolution trends of your assets. You will then be able to monitor towards greater management and to optimize your resources.

  Cherry on the cake: you will also allow your Finance Director to curb down taxes related to fixed assets as you will be able to tell exactly what your asset pool includes. No more obsolete and unused equipment that increases the calculation base of your professional tax or a useless insurance contract...

  This financial management initiative could be totally integrated to the quality procedure of your organization or to an ITIL procedure.