Definition of asset
To the average person, an asset is a property/item purchased and owned by a person, which can sometimes be a necessity but most of the time; that person need the asset to function in his/her community or in other words, providing a service. Typically, a person might own a house, a car and a piece of land and these are his assets.
When a person owns a cat, can we categorize the cat to be an a
sset to that person? Is our existing and future environment an asset?
Well, the cat is not an asset to an average person so is the environment. But, the environment will be affected when we procure and dispose of our asset.
Generally, an asset is plant, machinery, property, buildings, vehicles and other items that have a distinct value to the organization. The distinct value always relate to the provision of service by the organization. In other words, the assets are for the proper functioning of the organization in delivering its services.
The need for asset management
We cannot run away from expressing an asset as something that has value to us, whether it is monetary or not. The irony is that by creating an asset, we destroy some of our existing environment and possibly our future environment.
We need trees to build houses. We use raw materials to create anything that we need or want to use. We use natural resources to operate our assets. In a way, what we use now meant for our children, our great grandchildren and so forth.
We must manage the way we create an asset in order to sustain our vulnerable environment. We do not simply just dispose and recreate assets to satisfy our undying needs for material richness.
In short, we must manage the creation, operation, maintenance and disposal of our existing and future assets, not because we have to but it has become a necessity. The relationship between man, asset and the environment has always been in place but most of us tend to ignore it. When man creates an asset, the creation has an impact to the environment. Likewise, the environment will also determine the choice of asset. Man, asset and the environment must complement each other and co-exist in a sustainable environment. I once heard from an asset practitioner a phrase befitting this that is “We’re living in our children’s time”. We must ensure nothing will affect our environment now and forever.
Finally
At the end of the day, we need asset management principles to manage our assets and a good asset management will sustain today and the future environment besides deriving economic benefits from the assets.
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To the average person, an asset is a property/item purchased and owned by a person, which can sometimes be a necessity but most of the time; that person need the asset to function in his/her community or in other words, providing a service. Typically, a person might own a house, a car and a piece of land and these are his assets.
When a person owns a cat, can we categorize the cat to be an a
sset to that person? Is our existing and future environment an asset?Well, the cat is not an asset to an average person so is the environment. But, the environment will be affected when we procure and dispose of our asset.
Generally, an asset is plant, machinery, property, buildings, vehicles and other items that have a distinct value to the organization. The distinct value always relate to the provision of service by the organization. In other words, the assets are for the proper functioning of the organization in delivering its services.
The need for asset management
We cannot run away from expressing an asset as something that has value to us, whether it is monetary or not. The irony is that by creating an asset, we destroy some of our existing environment and possibly our future environment.
We need trees to build houses. We use raw materials to create anything that we need or want to use. We use natural resources to operate our assets. In a way, what we use now meant for our children, our great grandchildren and so forth.
We must manage the way we create an asset in order to sustain our vulnerable environment. We do not simply just dispose and recreate assets to satisfy our undying needs for material richness.
In short, we must manage the creation, operation, maintenance and disposal of our existing and future assets, not because we have to but it has become a necessity. The relationship between man, asset and the environment has always been in place but most of us tend to ignore it. When man creates an asset, the creation has an impact to the environment. Likewise, the environment will also determine the choice of asset. Man, asset and the environment must complement each other and co-exist in a sustainable environment. I once heard from an asset practitioner a phrase befitting this that is “We’re living in our children’s time”. We must ensure nothing will affect our environment now and forever.
Finally
At the end of the day, we need asset management principles to manage our assets and a good asset management will sustain today and the future environment besides deriving economic benefits from the assets.
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