Assets
August 9, 2023
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The market is more competitive than ever, in spite of the threat of recession looming large in some parts of the world.
It is highly probable that the market will continue to be volatile for some time to come, increasing pressure on small and emerging asset managers to adapt or perish.
Companies now have to re-evaluate models of operations urgently, and think about ensuring their services can stand out.
This is especially so thanks to rapidly fluctuating demands of investors and the constant pressure on fees.
So, what’s in store for 2023 and beyond?
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Let’s take a look at some of the asset management trends for the year.
Inflation is at a high that’s not been seen in decades, and it is affecting the cost of operations for asset managers, be it salaries, data expenses, or technology.
This means that asset managers have to rethink operating structures, processes, and the technology component in the cost of ownership, in order to keep a lid on costs.
Increasingly, companies are thinking of outsourcing activities like risk management to external service providers, to improve efficiency.
Asset managers have to be innovative to protect assets from the damaging effects of the inflation which doesn’t look like climbing down any time soon.
Asset classes, strategies, and geographies which were hitherto rejected are now being considered favorably.
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Thanks to increasing demands and concerns for sustainable development, there is an exponential increase in ESG (environmental, social and governance) investments, and it is only likely to keep going up.
Consequently, asset managers are under greater pressure than ever to deliver consistent reports and more detailed data about ESG investments.
ESG regulations are increasing as well; the SFDR – II is being rolled out with more stringent requirements with regard to ESG, MiFID II sustainability preferences etc. are also now part of the ESG regulations that asset managers have to comply with.
Increased regulations and compliance requirements are crucial asset management industry trends.
Non-compliance with rules and regulations can attract hefty penalties and legal action which obviously no company wants to face.
Not maintaining assets properly can lead to breakdowns and failures which could have far-reaching consequences; this makes it essential for auditors to verify that regular maintenance of assets is carried out.
Asset management software can send notifications when maintenance is due, or software licenses are nearing expiry date, which will help asset managers to maintain compliance.
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Maintenance of physical assets has to be the top priority for any asset manager.
When machinery, equipment, or vehicles are not properly maintained, you can have breakdowns, leading to loss of precious time, which in turn lead to production and delivery delays.
At Tranquil, we understand its importance, and have a powerful asset management module in our ERP solution that helps companies to streamline, automate, and improve maintenance tasks.
With proper asset maintenance, you can extend the life of assets, reduce the cost of maintenance, and minimize the chances of machinery and equipment failing.
Preventive maintenance of assets involves scheduling servicing of equipment at specific intervals to identify possible issues before they blow up into big problems.
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Every business has physical assets, but companies that manufacture or sell products have a lot more equipment, along with inventories.
It is imperative that these assets and inventories are tracked and supervised meticulously to avoid them being stolen, lost, or misplaced.
Tranquil ERP’s asset management module helps companies by delivering important information about the location and status of the asset.
In the post-pandemic era, remote working and hybrid working has become more common, with an increasing number of employees preferring to work from the comfort of their homes.
To facilitate remote work and proper collaboration among different teams, it is essential that everyone has access to all the necessary information; only then can the work proceed smoothly.
With Tranquil’s asset management module you get a central dashboard where all the information can be accessed by employees based on their roles, so that everyone is on the same page.
Asset tracking software can also be tweaked to accommodate the varying needs of different organizations
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Asset management is undergoing a significant transformation in the year 2023 – with the Internet of Things or IoT being a big part of the technology that is driving this change.
Asset managers are able to easily monitor the performance of assets in real-time and store important data about them thanks to IoT technology.
IoT uses embedded sensors to collect information about assets and sends that information to connected networks.
Asset managers enjoy several benefits like enhanced tracking, maintenance, and reporting on assets, just to name a few, because of IoT technology.
They can make use of predictive analysis models to make predictions about future events that could possibly have an effect on their assets.
IoT solutions are especially valuable tools of data collection for industries that rely heavily on assets; it is fairly certain that this advanced tech will affect the manner of performing asset management in the foreseeable future.
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In the near future, we will see asset management strategies depend increasingly on artificial intelligence and machine learning, and not just the Internet of things.
AI and ML can help in further automating activities related to asset management and can help to monitor assets even more precisely.
With AI technology, data is used to improve not only tracking of assets and maintenance, but also get a better picture about performance and understand the performance metrics better, and have improved access control.
Machine learning helps in identifying patterns within the lifecycle of assets by mining asset data both real-time and historical.
Asset managers can leverage these cutting-edge technologies for streamlining operations, optimizing the use of assets, mitigating risks, reducing expenses, and eventually, achieve enhanced utilization of organizational assets.
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The methodology of the management of fixed assets is evolving swiftly, with more and more businesses wanting to implement cloud-based and mobile-friendly solutions to achieve streamlining of asset lifecycle management and asset tracking.
Continuing with manual methods to manage your assets won’t cut it anymore.
Industry experts believe that 2023 will be the year when organizations will move to cutting-edge technology (read asset management software solutions), and abandon paper and manual spreadsheets.
The software will allow them to get access to asset information in real-time, regardless of wherever they are, and whenever they want.
The use of asset management software can help organizations reduce and bring down capital expenditure, track asset depreciation more effectively, and decrease asset downtime.
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Experts predict that there will be a greater use of robotics and automation, with machines helping to streamline processes related to asset maintenance and tracking.
This approach to asset management offers several advantages – from ensuring compliance to improving performance, as robots will be able to handle static asset data with greater speed and precision as compared to human employees.
Already there is a certain level of automation, and it has brought in several beneficial changes in asset management, by detecting irregularities in inventories, optimizing maintenance schedule calendars, and so on.
Seeing how the use of robotics and automation is increasing, experts predict that asset managers will employ robotic tech for better-informed decision-making regarding asset acquisition in the future, and the reorganization of assets that are not needed in the organization anymore.
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Security threats continue to become more serious in nature in the realm of asset management, making it all the more necessary to have better tracking of assets.
Thanks to increased digitization, the risk of asset theft has multiplied manifold.
Malicious individuals keep trying to hack into asset systems and steal confidential customer information.
Therefore, it is crucial that asset managers are vigilant and pay extra attention to maintaining the safety and privacy of information.
Asset managers can consider using encryption software, installing robust firewalls, anti-malware software, using multi-factor authentication for data access, and other protective measures to safeguard critical information from cyber-attacks.
Data breaches can be damaging to the reputation, and also cause the organization great expense.
This is why tracking of assets needs to be seen as an integral part of asset management in any business anywhere in the world; this will promote more effective utilization of assets, improved assessment of risks, and better operational efficiency.
Security of data is probably going to be one of the most critical trends to be prominent in this year, as asset managers scramble to do whatever it takes to safeguard customer data.
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We touched briefly upon ESG as part of moving towards more sustainable development.
Today companies are making a shift towards practices of circular economy to support sustainability initiatives, along with recognizing and managing asset lifecycles.
By concentrating on optimizing assets and boosting efficacy of work processes, asset managers can make use of fixed asset management to minimize asset failures and downtime, reduce costs, boost utilization of assets, ensure compliance, and optimize asset maintenance.
Along with helping companies attain their objectives of sustainable development, circular economy practices help in bringing down the net carbon footprint of procedures related to asset management.
Above all, the management of fixed assets can also be used to improve traceability and transparency of assets across their lifecycles to attain better governance and accountability.
This is in fact, an important part of achieving sustainability objectives more effectively.
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Knowing what the trends are in fixed asset management can help you as a business to manage your assets properly to get the most out of your investment in them by keeping them in top operational condition for longer, and avoiding downtime which hampers productivity.
Learn how Tranquil can help you achieve streamlined asset management and sustainable development: schedule a FREE demo to know more.
