• rm@rmbastien.com

Assets…What Assets?

Assets…What Assets?

As far as true assets go, corporate IT manages only the components that are purchased or leased from third parties — mainly the infrastructure. The rest are managed as expenses. The difference between how corporate IT manages the infrastructure and the portfolio of information systems that run on the infrastructure is astounding. 

Huge Investments

Many of these information systems — composed of infrastructure, application, and data — have millions of dollars spent on them each year. Creating, maintaining, or enhancing digital applications in large organizations chews up on average between 25 to 40 percent of all money put in technology. Those costs add up to dozens or hundreds of millions over the life span of information systems. 

No Asset Management Practices for Digital Systems

This information that supports your daily operations — and holds your future in many ways — is not managed as an asset.  Your IT function probably has little to no asset management processes in place for information systems, despite the magnitude of the investments over the years, their importance, and their long-lasting nature.  It is likely that those in charge of making these systems see the light of day, grow and evolve, have at best a cursory knowledge of what an asset is, and even less of an understanding of its management.

Projects and Investment Are Managed, Not the Outputs

At the end of each year, the people who make up your IT function will have a hard time showing you the list of assets created or enhanced and how much money was “invested” in them.  The best they can do is approximate expenditures on a high-level list of applications.  And even when they do manage to make a list, the figures will be wrong. False, because the numbers originate from processes and tools that collect and ventilate costs for the main purpose of managing projects, not what comes out of them.

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