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An is classified as any company-owned, system or hardware that is used in the course of business activities. The IT asset management process typically involves gathering a detailed inventory of an organization's hardware, software and network assets and then using that information to make informed business decisions about IT-related purchases and redistribution. ITAM applications are available to organizations to assist in the ITAM process.

ISO/IEC 19770-1 is a framework of ITAM processes to enable an organization to prove that it is performing software asset management to a standard sufficient to satisfy corporate governance requirements and ensure effective support for IT asset management overall.

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These applications can detect the hardware, software and network assets across an organization and then capture, record and make the data available as needed. Some of these applications integrate ITAM with the service desk, keeping all the user and access information together with the incidents and requests.

Why ITAM is important ITAM is about more than creating an asset inventory. It's about continually using the captured asset data to maximize returns, minimize risk and drive increased business value. By avoiding unnecessary asset purchases and making the best use of current resources, IT asset managers can cut software licensing and support costs, eliminate waste and improve efficiency.

ITAM also helps increase the companywide understanding of IT's business value, improves communications and understanding between IT and other departments, enforces compliance with cybersecurity policies and regulatory requirements, improves productivity through technology support, and limits overhead costs of managing the IT environment. Effectively assets can also improve visibility and control of IT assets, and swiftly identify and replace stolen hardware and software components. ITAM can offer support to other ITIL processes by providing accurate information about the assets affected by an incident, problem or change. ITAM also makes organizations more agile by allowing for quicker and more accurate migrations, upgrades and companywide changes. IT asset and configuration data can be critical in the aftermath of natural disasters and other unexpected events. Proper ITAM can help leaders quickly identify the impacts of such events and more confidently make decisions to restore services.

IT asset management processes ITAM is a continual and systematic process, so the asset lifecycle concept is often used to structure activities and help support decision-making. The cycle starts with strategic planning across the organization to determine what assets are needed, how to procure them, the specific ways they'll be used and how they'll be funded. This often includes (TCO) estimates and a cost-benefit analysis of alternatives. Next is the procurement phase, in which organizations build, purchase, lease or license the assets they need. Following procurement is the integration phase, during which the assets are installed and introduced into the IT ecosystem. This includes properly integrating the assets with other components, establishing support and operations processes and specifying user access.