In a technology-driven world, businesses now rely heavily on their IT assets, whether they realize it or not. Gone are the days of a one-person IT department keeping track of a few desktop computers and printers. Cell phones, laptops, payroll systems, software, and scores of other assets are now crucial components for businesses of every size. Maintaining these assets throughout their lifecycle can be a hefty undertaking, especially without a good system. According to Gartner, most businesses use manual methods such as spreadsheets for inventory management, often to their detriment. In fact, 51 percent of companies turning to management software cite inefficiency as the reason for the change.
In an episode of The Distillery Podcast, Teri Bobst, senior director of ITX practice at Cask NX, talked about IT asset management and how it adds value and reduces waste for organizations. In the spirit of April Fools’ Day, she shared a few funny and sometimes scary real-life IT asset management mishaps and how to avoid them. From zombie phones to $300 paperweights, here are a few examples of why businesses should have a strong ITAM program.
Centralized inventory is essential
Organizations often struggle with poor asset storage with little to no oversight or organization, making it difficult to maintain accurate records.
Teri recounted an experience she had at a previous organization where inventory was scattered in various places, including closets and CONEX trailers. She and her team began the work of bringing all the inventory into a single, centralized warehouse furnished entirely with repurposed surplus equipment.
“Once we had them consolidated, we realized we were sitting on tens of thousands of dollars of usable equipment that no one even knew existed in the organization,” she said. These items were then redeployed where needed, avoiding unnecessary new purchases.
Teri highlights the incredible impact inventory management can have on a company’s bottom line. With a centralized inventory, a business can not only have greater organization but also significantly reduced waste and costs.
Overlooked assets lead to hidden costs.
Even when companies have an asset management program in place, gaps in the plan can lead to overlooked costs and major inefficiencies.
Teri described an instance in which a company discovered dozens of cell phone plans paid for by the business for employees who no longer worked there. Though they believed they were doing well with their asset management program, these “zombie” phone plans were significant oversights that cost thousands of dollars every month.
In another story, a $16,000 router vanished during the deployment phase. After a long, frustrating search, the router was found by following the trail of asset records and transfer orders. The router was hidden in plain sight: sitting under the desk of an employee who had signed for the router and forgotten all about it.
“Don’t let ‘It’s under my desk’ be part of your ITAM strategy,” Teri said.
These instances underscore the need for visibility, ownership, and a documented chain of custody for assets to ensure that nothing falls through the cracks. The cost of missing assets or unnecessary purchases can add up quickly.
Proactively prevent waste and failure
A critical component of inventory management is ensuring that assets are in working order and consistently updated. Teri pointed out how poorly managed equipment can cost companies and even lead to major issues.
In one case, $300 IP phones were being discarded “by the dozens” due to minor issues, typically a broken back stand, despite the devices being otherwise functional. By partnering with a third-party vendor specializing in refurbishing Cisco phones, the company was able to extend the lifespan of these assets at a fraction of the replacement cost. With a refurbishment cost of just $55 per phone, the company saved enough over two years to purchase a forklift for their asset warehouse.
Another cautionary tale shows how even one poorly managed asset can cause nightmares for a company. One business she worked with did not refresh its hardware; instead, it waited for machines to fail before disposing of them. This organization ran its entire payroll system on a nine-year-old laptop with no backup options. The worst-case scenario came true when the laptop failed — over a holiday weekend, no less — leaving the company scrambling to find an identical model laptop to rescue the system and get payroll processed. This catastrophic failure underscored how damaging it can be to have aging equipment and no refresh system.
“Things like this are the reason that you have to refresh your assets, especially critical assets in your organization,” Teri said. “And also have redundancy. Don’t have it running on a single laptop.”
IT assets are integral to a business’s strategic plan, and properly managing them ensures that the company gets the full value from its assets. A strong IT asset management system enables businesses to cut unnecessary costs and utilize assets efficiently.
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Distill the Power of ServiceNow by listening to the full episode on the Distillery or read the transcript.
We’re with you for what comes next
You're working in a rapidly shifting environment.
Global dynamics, AI advancements, heavy competition–the only certainty is change.
We get it. And we’re here to help you harness the full potential of ServiceNow to simplify transformation.
Let's navigate the future together.
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