What is the Risk of Doing Nothing to Improve the Tracking of Physical Assets?
For a business, implementing an asset management system to better track the life cycle information of physical assets requires investment, including capital and employees’ time to implement the system and learn the system.
When to make this investment is often a reflection of the leadership’s vision for the business, and the ability of the core team to think strategically and position itself for sustainable competitive advantages.
There is a famous saying, “I skate to where the puck is going to be, not where it has been.”
I have seen how businesses watch where the puck is going to be, position itself well, and continue to grow.
- A publicly traded manufacturing company has invested in better asset management process to protect Intellectually Property. It started the investment almost 5 years ahead of its peers. At that time, it had the second largest market share in the U.S. and was trailing the market leader by a big margin. Since then, this manufacturer has been gaining market share at the expense of the market leader. Beating quarterly earnings expectations consistently, the company has seen its stock price increasing by 200% in the past 5 years.
- A defense and aerospace company invested in our software eQuip! to manage Government Property. It started 4 years ago, when it was still a small business. At that time, they had a few hundred items of government furnished property (GFP). Most of businesses would continue to use spreadsheet, but this company invested in a commercial off the shelf system that has embedded best practices for asset management. Recently, the company won a large contract worth a couple of billions, as the prime contractor. Their success in growing the company is the result of their strategic vision and great leadership.
When a leader shows the vision to invest in critical areas of the business for growth, the employees embrace the leadership, which motivates them to contribute to the business. On the flip side, if the leader delays these types of decisions and allows the business to operate in inefficient processes, employees lose confidence and they might look to join another team.
Recently, I met a customer, who is working with us to install our Government Property Management system in his company. He told me that 3 years ago, he worked at another company and he had proposed to his leadership to buy the eQuip! system, but he was out voted. Now he joined this growing company and excited about the company’s strategic direction.
So next time when you are facing the decision of whether to invest in a system to improve the tracking of physical assets, ask “what is the risk of doing nothing?”. It’s the loss of employees’ confidence in the leadership’s vision and the loss of market share.
If you want to learn more about how to use asset management system to protect Intellectual Property, please download the eBook “Transform the Process to Protect Product Samples embedded with Intellectual Property”.