"Accurate IT inventory was a prerequisite for Year 2000 success. Having gained that better grasp of inventory, it would be criminal indeed if organisations did not implement the procedures necessary to maintain it..."

As companies go through the annual process of allocating budgets, increasing reliance on technology means that IT departments are looking to secure more and more funds.

A sizable portion of the average IT department's annual budget is spent replacing lost equipment - not only equipment that has been stolen, but also equipment that cannot be located.

"It is a sad comment on the state of IT that most organisations have a better inventory of such business critical systems as chairs and desks than they do of their IT systems..."

Increasing use of compact and more portable computers means that companies are commonly exposed to the costs of replacing equipment following theft or loss. Even when fully insured, the time and inconvenience of replacing equipment should be considered, as should the potential cost of losing sensitive information and company data. The Loss Prevention Certification Board states that "the actual total cost of loss for every pound spent on laptop hardware is really £18."

Companies also seldom know exactly what IT equipment they have, or where it is. Poor supervision of these assets results in resources being wasted as companies 'hunt' for missing equipment and replace equipment unnecessarily when it is not lost, merely misplaced. Case studies from organisations such as Standard Life several years ago have demonstrated the very considerable cost savings that can be obtained from good IT inventory.

Rob Green, managing director of asset management and protection specialist, ISIS comments, "It is no wonder that budgets are stretched and that financial directors are being asked to find more and more money for IT departments when the scale of loss within the industry is so large. Rather than wasting funds on replacing lost equipment, financial directors should encourage IT departments to invest in protecting and managing their assets efficiently."

Related Information:

Aspects™ For Business