Definition of Strategic Asset Management

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Every organization or company has to acquire and maintain various assets to operate and develop it. The management has to invest huge capital in the acquisition of assets, the strategic policies related to assets will allow management to significantly manage the asset. The detailed strategic plan of the company will provide deep information about currently available assets, their value, future value and cost of acquisition and maintenance or disposing of them. The plan must contribute towards the overall plans and policies of the company. Strategic asset management is not just related to tangible assets it also includes intangible assets such as reputation, brands, patents, copyrights, etc. There are different methods for managing the assets of the company strategically. Which are as follows:

1.Preparing Strategic Asset Management Plans: steps followed in this method are as follows:
• The management must evaluate the importance of strategic management plan.
• Collect the total information about all assets of the company.
• Decide the most important asset to focus more.
• Design a strategy for each asset.

2. Designing a strategy for each asset: The steps followed under this method are as follows:
• Evaluate the requirements of the company to acquire new assets
• Plan the operations to be undertaken on a particular asset.
• Properly plan the maintenance of each asset acquired by the company.
• Plan about the disposal of old assets of the company to replace it with new ones.
• Plan the acquisition of new assets and source of funds required.
• Properly evaluate the risk associated with the asset and measures to manage it.

3. Using the ISO 55000
• Deeply study and understand the ISO 55000
• Analyze the treatment measures of assets under ISO 55000
• Evaluate the process of treating asset ISO 55000.
• Strategically evaluate a good asset management plan.

The points to be considered while formulating Strategic Asset management plan of the company are as follows:
• The strategic asset management plan of the company must fill the gap between current asset performance of the company and required performance to achieve desired objectives.
• Maintain the proper documents of information about the assets of the company providing usefulness of the asset for the company.
• To design SAMP, management must understand the need and justification of initiatives to be taken. The justification must include:
• Organizational policies, the external environment of the company and competitive pressures.
• Forecast the trends in asset management performance.
• Evaluate risk and opportunities associated with asset management.
• Identify the gap between the current position of asset management of the company and the required performance.
• The management must ascertain the initiatives to be taken appropriately.
• The formulated plan must be updated regularly to maintain high efficiency and cope up with the changing environment of a business.

Importance of following Strategic Asset Management is as follows:
• Strategic Asset Management provides the proper track of all assets possessed by the company, the location, usage, and changes made to the assets. The better track record of the asset will ensure better control.
• Ensure management of the assets at different locations to create an inventory report of the company.
• Provide adequate information for insurance and leasing practices.
• It helps in determining the accurate amortization rate of the asset and ensure the accuracy of the financial statements of the company.
• The proper record and maintenance of asset management policies will provide an indication to the management of the company to replace the old asset with a new one at an appropriate time to maintain efficiency.
• The proper maintenance will ensure less wastage of resources and proper maintenance of all operations depending upon the functioning of assets.
• SAPM removes ghost assets in the inventory of the company.
• The chances of theft and dislocation of assets will be less.