Chapter 6 Asset Management
The IT Asset Management Architecture defines the policies, standards, and guidelines required for the tracking and reporting of assets owned by the government entity.
The State of Oregon will have an IT asset management program that collects and provides information to:
• Report on the “state of the state’s” IT assets at any given point in time
• Track IT assets and determine the total cost of ownership throughout the asset’s life cycle
• Leverage the state’s purchasing power by knowing the state government-wide need, and the volume and timing of need for future IT hardware and software purchases
• Ensure software license optimization and compliance
• Establish an initial, current and disposal value for the state’s IT assets
• Plan for a common, shared, state government-wide information technology infrastructure; and
• Acquire the information needed for state government-wide information resources management decision-making
6.2 Scope and Business Rationale
In response to the budget crisis and in support of the Governor’s priorities relating to government efficiency and effectiveness, the State Enterprise Information Resources Management Strategy and to fulfill state obligations under ORS 184.473-184.475 – the Department of Administrative Services (DAS) and state agencies must do what we can to gather information about our existing IT environment to better understand what we are spending on IT and how those IT investments are performing over time.
Achieving both the Enterprise and Agency goals will provide Oregon state government enhanced abilities to:
• Make informed IT planning, procurement and investment decisions
• Calculate IT asset value and understand the total cost of ownership (TCO) of those assets
• Manage the acquisition and maintenance of key asset types, including hardware, software, business systems, and data
• Optimize software license usage and comply with software license requirements
• Manage hardware and software maintenance contracts
• Manage leased assets
• Monitor compliance with IT standards
• Plan for technology migration projects
• Allocate support resources efficiently and effectively
• Protect and secure IT assets
• Provide timely and accurate financial reports
• Ensure adequate Insurance coverage, and business continuity and recovery plans exist
6.3 Context and Diagrams
There are three primary attributes of IT asset management — physical, financial and contractual. Capturing and integrating physical, financial and contractual data supports the management functions that are necessary to effectively manage and optimize IT asset performance. The focus is on managing the life cycle of these assets not only to reduce costs, but also to reduce liability exposure, improve software compliance and better match use with contract terms. Figure 1 illustrates how the data from each attribute area can be shared and integrated electronically to deliver on the promise of IT asset management.
• IT Investments must be identified, evaluated, and selected so expenditures are made for solutions that are feasible and employ proven and reliable technologies.
• Information technology assets must be employed in ways that achieve the business objectives of the state and its agencies.
• Accurate IT asset management is performed to ensure continued alignment with the State’s technical architecture and to assist the State of Oregon in achieving Total Cost of Ownership (TCO) objectives.
• IT asset data is captured in a way that facilitates analysis and reporting.
• IT asset data should be accessible as individual records or aggregated into groups of related items.
• IT asset information detail required for an agency to efficiently and effectively manage its information technology operations (assets) is expected to meet or exceed the level of detail required at the state government-wide level.
• The cost and effort required to manage assets should not exceed the total value of the asset over its lifecycle. Value is based on purchase price plus value added factors like maintenance, ongoing support, disposal, and any potential risk to the state, such as legal or political impact.
6.5.1 Enterprise Goals for IT Asset Management
To establish IT Asset Management Architecture and related standards. By following an adopted “best practice approach” to IT Asset Inventory/Management across the enterprise, Oregon state government will be better able to:
• Help accomplish the governor’s priorities, goals and objectives;
• Contribute to earning the public’s trust in government as a steward of the resources that have been entrusted to it;
• Fulfill our shared obligations relating to IT Asset Inventory and total cost of ownership (TCO) under law (ORS 184.473-477);
• Accomplish the goals and objectives outlined in the Enterprise IRM Strategy (August 2002);
• Establish appropriate guidelines for managing key asset types including hardware, software, business systems, and data.
6.5.2 Agency Level Goals for IT Asset Management
• Identify all IT assets; determine where they are located; establish and manage asset lifecycles; understand total cost of ownership; and, determine when and how IT assets should be redistributed/disposed of/retired over time.