Asset Management

10712 Words Jun 25th, 2013 43 Pages
CHAPTER ONE THE PROBLEM AND ITS SETTING

1.0 INTRODUCTION Asset management is a concept that companies use to ascertain the value of their assets. It provides a quick measure of the worthiness of the organization and so becomes easier for organizations to prepare their final accounts as they are able to quickly estimate the value of their assets. Well managed organizations are required to perform regular fixed asset audits. Tracking and managing corporate assets and equipment is a challenge to most organizations especially when there is a large volume of assets or when those assets move frequently between departments or multiple branches. However in today‟s regulatory environment, it has become more important than ever for companies to
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c. What were the difficulties experienced in using the manual system?
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d. Did the users have enough skills to operate the system? e. Where and how would the asset register be kept and updated? 1.6 JUSTIFICATION OF THE STUDY. The proposed study was recommended as it was of paramount importance to organizations which had accepted and undertook the information technology era into their businesses to have good and reliable ITAMS. The previous excel spreadsheets which were used in recording assets were highly prone to errors and presented a lot of paperwork, which required large storage space, and thus inappropriate and inefficient for the organization to achieve optimum performance.

The researcher focused on managing IT assets only because past and existing manual systems had too many loopholes which resulted in the organization losing valuable IT assets due to theft and or abuse by employees. Unlike other tangible assets of the organization IT assets have a shorter life span and often switch many hands within a short period of time hence difficult in most cases to trace their whereabouts.

The proposed study would facilitate quick decision making and also reduce the amount of time taken in locating computer hardware and software. Under the manual system it took a lot of time in trying to locate and monitor IT assets in the organization. The study was also meant to reduce operation costs in the IT department as the organization would now

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