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Key Metrics to Measure Your ITAM Performance

Key Metrics to Measure Your ITAM Performance

We all know the importance of having a strong and efficient IT Asset Management (ITAM) tool in our organization to manage our IT assets and automate basic and advanced ITAM operations. A strong ITAM tool is an essential capability for an organization to ensure the smooth running of their business operations sans the worry and headaches of ensuring all assets are duly utilized and properly maintained.

However, it is equally important to continuously monitor the performance of our ITAM tool to ensure optimal results. ITAM operations encompass hardware and software assets, vendor integration, warranty tracking, cycle count, asset life history, and more. While you may believe your ITAM tool is delivering as intended, do you know how efficiently each operation is running? Is there room for improvement?

To accurately gauge the performance of your ITAM operations, you need to establish the right metrics and Key Performance Indicators (KPIs). These indicators serve as the ultimate guide to measure the effectiveness of your ITAM operations and make informed decisions to improve your business operations.

In this article, we will discuss the various key elements and indicators you need to keep in mind to check the performance and success of your ITAM tool. By understanding these elements and tracking the relevant KPIs, you can optimize your ITAM operations for better business outcomes.

Hardware Assets

Hardware asset management is a critical aspect of ITAM, as hardware assets are the backbone of any IT infrastructure. To ensure that your hardware assets are being effectively managed, it’s important to track the right metrics.

Here are some key ITAM metrics to consider for hardware asset management:

  • What is the average cost of a workstation, and what kind of computers are your employees using? Desktops or laptops?
  • What is the average cost of server hardware, and what does your data center setup look like? Are you using Windows, Linux, or other operating systems for your servers?
  • What is the average cost of core network hardware, and how does your core network infrastructure look?
  • Technical debt is a common issue in network services. Are you maintaining your network equipment in accordance with industry best practices to prevent this?

Tracking these will allow you to gain valuable insights into the performance of your hardware asset management strategy. You can identify areas where costs can be reduced, optimize your IT infrastructure, and ensure that your hardware assets are being effectively utilized.

Ultimately, effective hardware asset management can help to reduce downtime, increase productivity, and enhance the overall performance of your organization. By staying on top of the right ITAM metrics, you can ensure that your hardware assets are contributing to the success of your business.

Software Assets 

Effective management of software assets is crucial for any organization, as it helps to ensure compliance, reduce costs, and optimize software utilization. To achieve this, it’s important to track the right ITAM metrics for software assets.

Here are some key metrics to consider: Total number of software assets, including those “under management,” to give you an idea of the size of your software environment.

  • Total number of software assets and those “under management” to help you understand the scale of your software environment.
  • Total number of licenses required to ensure you have enough licenses for your software environment.
  • Total number of installed software instances to prepare for audits. Auditors often ask for proof of software installations versus license purchases.
  • Total number of licenses available to check if you have enough licenses to meet demand.
  • Threshold alerts for the ratio used to purchase licenses, so you can take action once the limit is reached.
  • Average amount of various versions of each application deployed. Ensure you have the appropriate licensing in place to meet your software vendor obligations, as not all licenses cover all software versions.

By tracking these metrics, you can gain valuable insights into your software asset management strategy. You can identify areas where costs can be reduced, optimize your software environment, and ensure that your organization remains compliant with software vendor obligations.

Effective software asset management can also help to improve security, reduce the risk of software-related downtime, and enhance overall business performance. By staying on top of the right ITAM metrics, you can ensure that your software assets are contributing to the success of your business.

Operation report Metrics

To further enhance your ITAM performance, it is important to track operational report metrics. These metrics include:

  • The proportion of active devices for which present hardware and software inventory is accessible and in use, i.e. what proportion of your environment is live and under ITAM control?
  • The percentage of network devices that are not recognized as known assets – this is an important metric to track when managing risk.
  • The percentage of devices observed active on the network, but in reality are inactive, such as assets that have been retired and/or are awaiting disposal.
  • The percentage of assets that do not have a recorded location or owner – you will need to initiate a task or process step to investigate ownership and/or redeploy these assets.
  • The number of assets assigned to people who have left the organization in order for them to be collected (if necessary) and effectively reassigned.

To ensure a successful ITAM strategy, it is essential to track and analyze the metrics and key performance indicators discussed earlier. By doing so, you can identify areas that need improvement in your ITAM operations, make informed decisions, and implement changes to increase efficiency and reduce risk. Ultimately, tracking these metrics can lead to a more successful and effective ITAM strategy for your organization.

Conclusion

ITAM is more than just managing hardware and software assets. It is a critical function for any organization, encompassing not only hardware and software assets but also virtualized and cloud-based assets. It involves managing the entire IT landscape, including cost reduction strategies such as asset depreciation and total cost of ownership.

By using appropriate metrics and measurements with your ITAM tool, such as those provided by the Teqtivity platform, you can quickly assess the performance and identify areas for improvement. This allows your organization to increase efficiencies and continuously improve your IT services, resulting in greater overall success.