A very common statement that I hear when discussing the elements of an effective information technology asset management (ITAM) process is: “It is so complex. Where do we start.” One of the most disheartening things you can do at the onset of any complex project or process is to look at the entire perspective. After all, we’re only human and, when we try to envision something we have never done before, analysis paralysis tends to push us away from getting started. This entry is the first in a series of very simple methods you can use to get an initial handle on ITAM.

“The first secret is that you probably already have the talent and necessary baselines within your organization to accomplish ITAM tasks with very little initial intrusive impact.”

Keep in mind that implementing an ITAM process is a matter of scale. Although smaller companies have the ability to grab onto results more quickly than larger companies, they also have fewer qualified people—who probably have less time to devote to the task—than their large counterparts. Smaller companies tend to have fewer technology assets and contractual obligations than larger companies. Their environments tend to be less complex—and the list goes on. However, the methods for establishing the initial processes for ITAM are virtually identical no matter what size company you have.

“The second secret is to establish more effective processes and procedures for the environment as it stands right this minute.”

Many companies make the mistake of grabbing onto the entire range of ITAM methodologies and attempting to implement them all in one fell swoop. The resultant surge in complexity, process, and cultural disruption will most frequently doom the project to failure. Instead, take a hard look at your existing processes and procedures. Conduct a realistic SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to identify and prioritize your needs. (Read the SWOT Briefing: You'll be glad you did.) For example: Precisely how solid is your disaster recovery process?

“Industry experts have noted that fewer than one-third of companies have a disaster recovery plan. Although it is believed that systems backups are occurring in over 90% of companies, those backups are not part of an organized plan—in fact, they’re usually stored in a file cabinet right beside the system. Couple these statistics with another indicating that nearly 93% of the companies that experience a disaster-related data loss will be out of business within five years.”

If your company relies heavily on its technologies to function, the DR process should be very high on your list of priorities in terms of changing your ITAM procedures—and, yes, certain elements of a DR process are part of ITAM responsibilities. If, on the other hand, your company rarely uses technologies or you are part of a remote management system, you may place DR at a lower level of priority. The key is to look carefully at the ways you are doing things right now and consider your options for improvement along with those ever-critical priorities.

“You don’t know what you don’t know.”

This concept is vitally important. A majority of companies simply do not know precisely what technology assets they own; or who is using them; or where the assets are located. They are very frequently unsure of the legal document, contract, or license terms and conditions that they are obligated to follow. Many companies do not reconcile invoices to ensure that they receive precisely what they purchased—and the list goes on and on. As a result, they spend significantly more scarce revenue on technologies than they need to spend. These same companies are also exposed to substantial risk due to misuse of technologies, copyright violations, software piracy, and agreement non compliance. Consider these examples:

If you do not have a clear understanding of your software license terms & conditions, you cannot possibly be in compliance with them.

If you do not monitor the manner in which support & maintenance levels are determined and used, you could easily over-invest by as much as 100%.

If you have no way of tracking patches & fixes, your systems will not be secure, nor may your strategic data.

Here is the thing: For most companies, the three ITAM processes listed here usually require only a minimal investment to reap substantial rewards in terms of cost reductions and risk avoidance. Yet, these are three very important processes where a majority of companies can, and should, improve.

If you have no way of tracking patches & fixes, your systems will not be secure, nor will your strategic data. Of even more importance: You will not be able to use these figures during negotiations.

In the real world of complex operating systems & software, as in the world of diverse systems that may, or may not be compatible, most of us have discovered a need to constantly apply patches & fixes to our systems. In most IT environments, the status of these patches & fixes is incredibly difficult to track—unless you have an effective automated discovery tool. If you have that tool, it takes only seconds to accurately identify precise computing systems that have received a given patch as well as those that have not received the patch. If you do not have the tool, this identification could consume a very expensive amount of technician time and effort. (For detailed information on acquiring & implementing a strategic systems configuration discovery tool, look at the June, 2006 Professional Briefing in the members’ area. You’ll find it logged under: Asset Management Content.)

“If you can’t find it and quantify it, you can’t manage it.”

Finally, at least for this paper: Here is where you will begin your most beneficial ITAM methodology. If you have any more than three or four systems, you really need to acquire an automated systems configuration discovery tool. This software application is generally placed on a server and it should inventory the contents and status of any hardware or software products that are part of your network environment. In other words, the discovery tool will give you the information you need to accurately identify, quantify, and manage the assets.

Summary

First: Understand that an ITAM initiative is only as prohibitively complex as you allow it to become. Scale the processes back to what you can handle and grow it slowly. Be very aware of the concepts behind effective organizational and human change management. They are every bit as important as any other element of ITAM.

Second: Get started with the people and tools that you have. Conduct that SWOT analysis and set priorities according to your actual needs and the potential for genuine process improvement. When you first start the initiative, there are plenty of no-cost or low-cost processes that you can use to improve existing ITAM methods.

Third: Remember that most companies simply do not know what they do not know. ITAM can represent significant cost cutting opportunities to virtually any company. Please keep in mind that we’re only skimming the surface of ITAM. You should read more of the materials on this site to gain a perspective of the potential you are about to tap into. You will be amazed at the number of options you have to improve your environment.

Fourth: Implement and manage an automated configuration discovery tool for your company. This is the single most important tool you can possibly use. A good tool will tell you precisely what you possess and its status. Without an automated tool you are quite literally flying blind. Review the Professional Briefing. You’ll appreciate how easy this tool can make your life.

More to come…

At the end of the day, if you do not take control of your technology environment—from initial concept of a technology need through its entire life cycle to disposal of the asset—you will find that you have literally thrown away as much as 30% to 50% of the money you invest in technologies.