- Executives are often aware of the benefits asset management offers, but many organizations lack a defined program to manage their hardware.
- Efforts to implement hardware asset management (HAM) are stalled because organizations feel overwhelmed navigating the process or under use the data, failing to deliver value.
Our Advice
Critical Insight
- Organizations often implement an asset management program as a one-off project and let it stagnate.
- Organizations often fail to dedicate adequate resources to the HAM process, leading to unfinished processes and inconsistent standards.
- Hardware asset management programs yield a large amount of useful data. Unfortunately, this data is often underutilized. Departments within IT become data siloes, preventing effective use of the data.
Impact and Result
- As the IT environment continues to change, it is important to establish consistency in the standards around IT asset management.
- A current state assessment of your HAM program will shed light on the steps needed to safeguard your processes.
- Define the assets that will need to be managed to inform the scope of the ITAM program before defining processes.
- Build and involve an ITAM team in the process from the beginning to help embed the change.
- Define standard policies, processes, and procedures for each stage of the hardware asset lifecycle, from procurement through to disposal.
Member Testimonials
After each Info-Tech experience, we ask our members to quantify the real-time savings, monetary impact, and project improvements our research helped them achieve. See our top member experiences for this blueprint and what our clients have to say.
9.4/10
Overall Impact
$30,242
Average $ Saved
28
Average Days Saved
Client
Experience
Impact
$ Saved
Days Saved
State of New Mexico Early Childhood & Care Department
Guided Implementation
10/10
N/A
120
Fayetteville State University
Guided Implementation
10/10
$64,999
50
Kansas City Chiefs Football Club
Guided Implementation
10/10
$12,999
5
State of South Dakota Bureau of Information and Telecommunications
Guided Implementation
9/10
N/A
N/A
Renown Health
Guided Implementation
9/10
N/A
5
City Of Chesapeake
Workshop
10/10
$97,499
50
Oklahoma Office of Management and Enterprise Services
Workshop
9/10
$90,999
4
Stockman Bank
Guided Implementation
9/10
$32,499
20
City of Tempe
Guided Implementation
9/10
N/A
5
Donor Network West
Guided Implementation
8/10
$30,549
5
Stockman Bank
Guided Implementation
10/10
$12,999
10
City of Peoria, AZ
Guided Implementation
9/10
N/A
N/A
City of Tempe
Guided Implementation
10/10
$11,699
20
Insmed Incorporated
Guided Implementation
8/10
$116K
50
City of Danville, VA
Workshop
9/10
$12,999
5
Draper Laboratory
Guided Implementation
10/10
$12,599
10
City of Tempe
Guided Implementation
10/10
$12,599
20
Chickasaw Nation Department of Commerce
Guided Implementation
10/10
$31,499
20
CSC Global
Workshop
10/10
N/A
110
O'Neill Vintners & Distillers
Guided Implementation
10/10
$31,499
120
Sun River Health
Workshop
10/10
$71,499
5
Nevada Gold Mines LLC
Guided Implementation
9/10
$31,499
18
Omaha Public Power District
Guided Implementation
10/10
$12,599
50
Town of Normal
Guided Implementation
10/10
$32,499
5
Omaha Public Power District
Guided Implementation
10/10
$2,519
50
James R. Glidewell, Dental Ceramics, Inc
Guided Implementation
10/10
N/A
N/A
Westconsin Credit Union
Guided Implementation
10/10
N/A
5
Pueblo City Schools
Guided Implementation
10/10
$2,355
5
Rosens Diversified
Workshop
9/10
$11,339
10
University of North Texas System
Workshop
10/10
$31,499
10
Workshop: Implement Hardware Asset Management
Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.
Module 1: Lay Foundations
The Purpose
- Build the foundations for the program to succeed.
Key Benefits Achieved
- Evaluation of current challenges and maturity level
- Defined scope for HAM program
- Defined roles and responsibilities
- Identified metrics and reporting requirements
Activities
Outputs
Outline hardware asset management challenges.
Conduct HAM maturity assessment.
- HAM Maturity Assessment
Classify hardware assets to define scope of the program.
- Classified hardware assets
Define responsibilities.
- Job description templates
Use a RACI chart to determine roles.
- RACI Chart
Identify HAM metrics and reporting requirements.
Module 2: Procure & Receive
The Purpose
- Define processes for requesting, procuring, receiving, and deploying hardware.
Key Benefits Achieved
- Defined standard and non-standard requests for hardware
- Documented procurement, receiving, and deployment processes
- Standardized asset tagging method
Activities
Outputs
Identify IT asset procurement challenges.
Define standard hardware requests.
Document standard hardware request procedure.
Build a non-standard hardware request form.
- Non-standard hardware request form
Make lease vs. buy decisions for hardware assets.
- Procurement workflow
Document procurement workflow.
Select appropriate asset tagging method.
Design workflow for receiving and inventorying equipment.
- Receiving and tagging workflow
Document the deployment workflow(s).
- Deployment workflow
Module 3: Maintain & Dispose
The Purpose
- Define processes and policies for managing, securing, and maintaining assets then disposing or redeploying them.
Key Benefits Achieved
- Policies and processes for hardware maintenance and asset security
- Documented workflows for hardware disposal and recovery/redeployment
Activities
Outputs
Build a MAC policy, request form, and workflow.
- User move workflow
Design process and policies for hardware maintenance, warranty, and support documentation handling.
Revise or create an asset security policy.
- Asset security policy
Identify challenges with IT asset recovery and disposal and design hardware asset recovery and disposal workflows.
- Asset disposition policy, recovery and disposal workflows
Module 4: Plan Implementation
The Purpose
- Select tools, plan the hardware budget, then build a communication plan and roadmap to implement the project.
Key Benefits Achieved
- Shortlist of ITAM tools
- Hardware asset budget plan
- Communication plan and HAM implementation roadmap
Activities
Outputs
Generate a shortlist of ITAM tools that will meet requirements.
Use Info-Tech’s HAM Budgeting Tool to plan your hardware asset budget.
- HAM budget
Build HAM policies.
- Additional HAM policies
Develop a communication plan.
- HAM communication plan
Develop a HAM implementation roadmap.
- HAM roadmap tool
Implement Hardware Asset Management
Build IT services value on the foundation of a proactive asset management program.
ANALYST PERSPECTIVE
IT asset data impacts the entire organization. It’s time to harness that potential.
"Asset management is like exercise: everyone is aware of the benefits, but many struggle to get started because the process seems daunting. Others fail to recognize the integrative potential that asset management offers once an effective program has been implemented.
A proper hardware asset management (HAM) program will allow your organization to cut spending, eliminate wasteful hardware, and improve your organizational security. More data will lead to better business decision-making across the organization.
As your program matures and your data gathering and utility improves, other areas of your organization will experience similar improvements. The true value of asset management comes from improved IT services built upon the foundation of a proactive asset management program." - Sandi Conrad, Practice Lead, Infrastructure & Operations Info-Tech Research Group
Our understanding of the problem
This Research Is Designed For:
- Asset Managers and Service Delivery Managers tasked with developing an asset management program who need a quick start.
- CIOs and CFOs who want to reduce or improve budgeting of hardware lifecycle costs.
- Information Security Officers who need to mitigate the risk of sensitive data loss due to insecure assets.
This Research Will Help You:
- Develop a hardware asset management (HAM) standard operating procedure (SOP) that documents:
- Process roles and responsibilities.
- Data classification scheme.
- Procurement standards, processes, and workflows for hardware assets.
- Hardware deployment policies, processes, and workflows.
- Processes and workflows for hardware asset security and disposal.
- Identify requirements for an IT asset management (ITAM) solution to help generate a shortlist.
- Develop a hardware asset management implementation roadmap.
- Draft a communication plan for the initiative.
Executive summary
Situation
- Executives are aware of the numerous benefits asset management offers, but many organizations lack a defined ITAM program and especially a HAM program.
- Efforts to implement HAM are stalled because organizations cannot establish and maintain defined processes and policies.
Complication
- Organizations often implement an asset management program as a one- off project and let it stagnate, but asset management needs to be a dynamic, continually involving process to succeed.
- Organizations often fail to dedicate adequate resources to the HAM process, leading to unfinished processes and inconsistent standards.
- Hardware asset management programs yield a large amount of useful data. Unfortunately, this data is often underused. Departments within IT become data siloes, preventing effective use of the data.
Resolution
- As the IT environment continues to change, it is important to establish consistency in the standards around IT asset management.
- A current state assessment of your HAM program will shed light on the steps needed to safeguard your processes.
- Define the assets that will need to be managed to inform the scope of the ITAM program before defining processes.
- Build and involve an ITAM team in the process from the beginning to help embed the change.
- Define standard policies, processes, and procedures for each stage of the hardware asset lifecycle, from procurement through to disposal.
- Pace yourself; a staged implementation will make your ITAM program a success.
Info-Tech Insight
- HAM is more than just tracking inventory. A mature asset management program provides data for proactive planning and decision making to reduce operating costs and mitigate risk.
- ITAM is not just IT. IT leaders need to collaborate with Finance, Procurement, Security, and other business units to make informed decisions and create value across the enterprise.
- Treat HAM like a process, not a project. HAM is a dynamic process that must react and adapt to the needs of the business.
Implement HAM to reduce and manage costs, gain efficiencies, and ensure regulatory compliance
Save & Manage Money
- Companies with effective HAM practices achieve cost savings through redeployment, reduction of lost or stolen equipment, power management, and on-time lease returns.
- The right HAM system will enable more accurate planning and budgeting by business units.
Improve Contract Management
- Real-time asset tracking to vendor terms and conditions allows for more effective negotiation.
Inform Technology Refresh
- HAM provides accurate information on hardware capacity and compatibility to inform upgrade and capacity planning
Gain Service Efficiencies
- Integrating the hardware lifecycle with the service desk will enable efficiencies through Install/Moves/Adds/Changes (IMAC) processes, for larger organizations.
Meet Regulatory Requirements
- You can’t secure organizational assets if you don’t know where they are! Meet governance and privacy laws by knowing asset location and that data is secure.
Prevent Risk
- Ensure data is properly destroyed through disposal processes, track lost and stolen hardware, and monitor hardware to quickly identify and isolate vulnerabilities.
HAM is more than just inventory; 92% of organizations say that it helps them provide better customer support
Hardware asset management (HAM) provides a framework for managing equipment throughout its entire lifecycle. HAM is more than just keeping an inventory; it focuses on knowing where the product is, what costs are associated with it, and how to ensure auditable disposition according to best options and local environmental laws.
Implementing a HAM practice enables integration of data and enhancement of many other IT services such as financial reporting, service management, green IT, and data and asset security.
Cost savings and efficiency gains will vary based on the organization’s starting state and what measures are implemented, but most organizations who implement HAM benefit from it. As organizations increase in size, they will find the greatest gains operationally by becoming more efficient at handling assets and identifying costs associated with them.
A 2015 survey by HDI of 342 technical support professionals found that 92% say that HAM has helped their teams provide better support to customers on hardware-related issues. Seventy-seven percent have improved customer satisfaction through managing hardware assets. (HDI, 2015)
HAM delivers cost savings beyond only the procurementstage
HAM cost savings aren’t necessarily realized through the procurement process or reduced purchase price of assets, but rather through the cost of managing the assets.
HAM delivers cost savings in several ways:
- Use a discovery tool to identify assets that may be retired, redeployed, or reused to cut or reallocate their costs.
- Enforce power management policies to reduce energy consumption as well as costs associated with wasted energy.
- Enforce policies to lock down unauthorized devices and ensure that confidential information isn’t lost (and you don’t have to waste money recovering lost data).
- Know the location of all your assets and which are connected to the network to ensure patches are up to date and avoid costly security risks and unplanned downtime.
- Scan assets to identify and remediate vulnerabilities that can cause expensive security attacks.
- Improve vendor and contract management to identify areas of hardware savings.
The ROI for HAM is significant and measurable
Benefit | Calculation | Sample Annual Savings |
---|---|---|
Reduced help desk support
|
# of hardware-related support tickets per year * cost per ticket * % reduction in average call length | 2,000 * $40 * 20% = $16,000 |
Greater inventory efficiency
|
Hours required to complete inventory * staff required * hourly pay rate for staff * number of times a year inventory required | 8 hours * 5 staff * $33 per hour * 2 times a year = $2,640 |
Improved employee productivity
|
# of employees * percentage of employees who encounter productivity loss through unauthorized software * number of hours per year spent using unauthorized software * average hourly pay rate | 500 employees * 10% * 156 hours * $18 = $140,400 |
Improved security
|
# of devices lost or stolen last year * average replacement value of device + # of devices stolen * value of data lost from device | (50 * $1,000) + (50 * $5,000) = $300,000 |
Total Savings: | $459,040 |
- Weigh the return against the annual cost of investing in an ITAM solution to calculate the ROI.
- Don’t forget about the intangible benefits that are more difficult to quantify but still significant, such as increased visibility into hardware, more accurate IT planning and budgeting, improved service delivery, and streamlined operations.
Avoid these common barriers to ITAM success
Organizations that struggle to implement ITAM successfully usually fall victim to these barriers:
Organizational resistance to change
Senior-level sponsorship, engagement, and communication is necessary to achieve the desired outcomes of ITAM; without it, ITAM implementations stall and fail or lack the necessary resources to deliver the value.
Lack of dedicated resources
ITAM often becomes an added responsibility for resources who already have other full-time responsibilities, which can quickly cause the program to lose focus. Increase the chance of success through dedicated resources.
Focus on tool over process
Many organizations buy a tool thinking it will do most of the work for them, but without supporting processes to define ITAM, the data within the tool can become unreliable.
Choosing a tool or process that doesn’t scale
Some organizations are able to track assets through manual discovery, but as their network and user base grows, this quickly becomes impossible. Choose a tool and build processes that will support the organization as it grows.
Using data only to respond to an audit without understanding root causes
Often, organizations implement ITAM only to the extent necessary to achieve compliance for audits, but without investigating the underlying causes of non-compliance and thus not solving the real problems.
To help you make quick progress, Info-Tech Research Group parses hardware asset management into essential processes
Focus on hardware asset lifecycle management essentials:
IT Asset Procurement:
- Define procurement standards for new hardware along with related warranties and support options.
- Develop processes and workflows for purchasing and work out financial implications to inform budgeting later.
IT Asset Intake and Deployment:
- Define policies, processes, and workflows for hardware and receiving, inventory, and tracking practices.
- Develop processes and workflows for managing imaging, change and moves, and large-scale rollouts.
IT Asset Security and Maintenance:
- Develop processes, policies, and workflows for asset tracking and security.
- Maintain contracts and agreements.
IT Asset Disposal or Recovery:
- Manage the employee termination and equipment recovery cycle.
- Securely wipe and dispose of assets that have reached retirement stage.
Follow Info-Tech’s methodology to build a plan to implement hardware asset management
Phase 1: Assess & Plan | Phase 2: Procure & Receive | Phase 3: Maintain & Dispose | Phase 4: Plan Budget & Build Roadmap |
1.1 Assess current state & plan scope | 2.1 Request & procure | 3.1 Manage & maintain | 4.1 Plan budget |
1.2 Build team & define metrics | 2.2 Receive & deploy | 3.2 Redeploy or dispose | 4.2 Communicate & build roadmap |
HAM Maturity Assessment | Procurement workflow | User move workflow | HAM Budgeting Tool |
Classified hardware assets | Non-standard hardware request form | Asset security policy | HAM Communication Plan |
RACI Chart | Receiving & tagging workflow | Asset disposition policy | HAM Roadmap Tool |
Job Descriptions | Deployment workflow | Asset recovery & disposal workflows | Additional HAM policies |
Asset management is a key piece of Info-Tech's COBIT- inspired IT Management and Governance Framework
Cisco IT reduced costs by upwards of $50 million through implementing ITAM
CASE STUDY
Industry IT
Source Cisco Systems, Inc.
Cisco Systems, Inc.
Cisco Systems, Inc. is the largest networking company in the world. Headquartered in San Jose, California, the company employees over 70,000 people.
Asset Management
As is typical with technology companies, Cisco boasted a proactive work environment that encouraged individualism amongst employees. Unfortunately, this high degree of freedom combined with the rapid mobilization of PCs and other devices created numerous headaches for asset tracking. At its peak, spending on hardware alone exceeded $100 million per year.
Results
Through a comprehensive ITAM implementation, the new asset management program at Cisco has been a resounding success. While employees did have to adjust to new rules, the process as a whole has been streamlined and user-satisfaction levels have risen. Centralized purchasing and a smaller number of hardware platforms have allowed Cisco to cut its hardware spend in half, according to Mark Edmondson, manager of IT services expenses for Cisco Finance.
This case study continues in phase 1
Info-Tech delivers: Use our tools and templates to accelerate your project to completion
HAM Standard Operating Procedures (SOP)
HAM Maturity Assessment
Non-Standard Hardware Request Form
HAM Visio Process Workflows
HAM Policy Templates
HAM Budgeting Tool
HAM Communication Plan
HAM Implementation Roadmap Tool
Measured value for Guided Implementations (GIs)
Engaging in GIs doesn’t just offer valuable project advice, it also results in significant cost savings.
GI | Measured Value |
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Phase 1: Lay Foundations |
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Phase 2: Procure & Receive |
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Phase 3: Maintain & Dispose |
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Phase 4: Plan Implementation |
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Total savings | $25,845 |
Info-Tech offers various levels of support to best suit your needs
DIY Toolkit
“Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”
Guided Implementation
“Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”
Workshop
“We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”
Consulting
“Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”
Diagnostics and consistent frameworks used throughout all four options
Guided Implementation overview
1. Lay Foundations | 2. Procure & Receive | 3. Maintain & Dispose | 4. Budget & Implementation | |
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Best-Practice Toolkit |
1.1 Assess current state & plan scope 1.2 Build team & define metrics |
2.1 Request & procure 2.2 Receive & deploy |
3.1 Manage & maintain 3.2 Redeploy or dispose |
4.1 Plan budget 4.2 Communicate & build roadmap |
Guided Implementation |
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Results & Outcomes |
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Workshop overview
Contact your account representative or email Workshops@InfoTech.comfor more information.
Phases: | Teams, Scope & Hardware Procurement | Hardware Procurement and Receiving | Hardware Maintenance & Disposal | Budgets, Roadmap & Communications |
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Duration* | 1 day | 1 day | 1 day | 1 day |
* Activities across phases may overlap to ensure a timely completion of the engagement | ||||
Projected Activities |
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Projected Deliverables |
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Phase 1
Lay Foundations
Implement Hardware Asset Management
A centralized procurement process helped cut Cisco’s hardware spend in half
CASE STUDY
Industry IT
Source Cisco Systems, Inc.
Challenge
Cisco Systems’ hardware spend was out of control. Peaking at $100 million per year, the technology giant needed to standardize procurement processes in its highly individualized work environment.
Users had a variety of demands related to hardware and network availability. As a result, data was spread out amongst multiple databases and was managed by different teams.
Solution
The IT team at Cisco set out to solve their hardware-spend problem using a phased project approach.
The first major step was to identify and use the data available within various departments and databases. The heavily siloed nature of these databases was a major roadblock for the asset management program.
This information had to be centralized, then consolidated and correlated into a meaningful format.
Results
The centralized tracking system allowed a single point of contact (POC) for the entire lifecycle of a PC. This also created a centralized source of information about all the PC assets at the company.
This reduced the number of PCs that were unaccounted for, reducing the chance that Cisco IT would overspend based on its hardware needs.
There were still a few limitations to address following the first step in the project, which will be described in more detail further on in this blueprint.
This case study continues in phase 2