What is Enterprise Asset Management (EAM)?
EAM is all about managing the lifecycle of physical assets within an organization from acquisition to disposal. EAM manages assets that have a significant impact on operations, like machinery, vehicles, infrastructure, and facilities. The goal of EAM is to ensure that these physical assets stay productive and cost-effective, and they’re maintained to reduce downtime.
For example, a city's public transportation department uses EAM to manage its buses. This includes tracking fuel costs and scheduling maintenance. EAM ensures that each bus is operational, safe, and cost-efficient.
P.S. If you are just getting started with your asset management journey and you're lost in the galaxy of terminologies, check out this easy glossary to make yourself familiar with everything.
What is IT Asset Management (ITAM)?
ITAM is focused on the digital and hardware assets that support an organization’s technology infrastructure. ITAM tracks and manages computers, servers, software licenses, and other IT resources. This ensures that these assets are used in compliance with their licenses.
Unlike EAM, ITAM focuses on keeping software and hardware up-to-date and secure. Its main goal is to ensure that these tools provide value to the organization. ITAM is responsible for the lifecycle of technology that supports everyday operations, from laptops to cloud licenses.
For example, at a large retail company, ITAM is used to centralize and manage thousands of software licenses across locations. This way, the IT team monitors compliance, tracks license renewals, and avoids unnecessary costs.
Key Differences: EAM vs. ITAM
EAM deals with the physical infrastructure: assets like HVAC systems, manufacturing equipment, or even entire facilities. It gears itself toward industries that heavily depend on physical machinery, such as manufacturing, utilities, and healthcare. By contrast, ITAM is more concerned with IT equipment and software, which are typically not physically taxing on operations but are essential for enabling smooth workflows across the organization.
EAM and ITAM both manage asset lifecycles, but the steps involved differ based on the nature of the assets. In EAM, lifecycle management includes tracking equipment through maintenance, repairs, and preventive checks to ensure minimal downtime. Meanwhile, ITAM lifecycle management is focused on tracking licenses, warranties, and upgrade cycles. This ensures that the software complies and the hardware optimizes without security risks.
In a manufacturing plant, EAM manages the maintenance of production machines to prevent breakdowns. Meanwhile, ITAM makes sure the plant’s IT systems and software are current and secure.
EAM systems focus heavily on maintenance schedules, operational costs, and asset performance to maximize the lifespan of assets. This often means working with systems like Computerized Maintenance Management Systems (CMMS). This helps to schedule repairs and maintenance efficiently.
ITAM, however, is data-focused in terms of compliance and security. It needs to track software licenses, ensure compliance with vendor agreements, and manage the security of digital assets, which often involve different regulatory standards than physical assets.
Here is a more snackable overview of the differences between EAM and ITAM:
|
Aspect |
Enterprise Asset Management (EAM) |
IT Asset Management (ITAM) |
|
Asset Type |
Physical assets like machinery, vehicles, infrastructure, facilities. |
Digital assets such as computers, servers, software licenses, and IT hardware. |
|
Primary Focus |
Maximizing productivity and lifespan of physical assets, minimizing downtime. |
Optimizing the usage, compliance, and security of IT assets. |
|
Lifecycle Management |
Includes asset acquisition, preventive maintenance, repairs, and disposal. |
Tracks licenses, warranties, upgrades, and decommissions obsolete assets. |
|
Key Industries |
Manufacturing, utilities, healthcare, transportation. |
Most industries including technology, retail, finance, healthcare. |
|
Data and Compliance Needs |
Focuses on operational costs, maintenance schedules, and performance tracking. |
Focuses on license compliance, software security, and asset allocation. |
|
Example in Action |
Managing a city’s bus fleet for efficiency and scheduled maintenance. |
Managing software licenses across a retail company to avoid compliance issues. |
EAM and ITAM in Onboarding and Offboarding Employees
Both EAM and ITAM play crucial roles when onboarding and offboarding employees. For example, during onboarding, ITAM makes sure new employees get all the right hardware and software. They also ensure these employees have the correct access rights. On the other hand, EAM involves onboarding by making sure physical tools, vehicles, or machinery required for specific roles are in place.
For offboarding, ITAM handles the return of IT assets like laptops. They also revoke software access and deactivate all licenses. Conversely, EAM’s offboarding looks at getting back physical assets. This is important if leaving employees had tools or equipment for their jobs.
Similarities Between EAM and ITAM
While EAM and ITAM processes cater to different needs in an organization, there are a few areas where they correlate and learn from each other.
Centralized Asset Tracking – Both EAM and ITAM benefit from centralized tracking systems that maintain real-time asset data, often using unified dashboards.
Automate Where Possible – Automation, especially in areas like routine maintenance for EAM and license renewals for ITAM, reduces errors and keeps the organization running smoothly – especially in minimizing asset downtime.
Regular Audits – Periodic audits in both EAM and ITAM ensure that records are up-to-date and that assets are not only properly utilized but also correctly depreciated. For instance, an ITAM audit could uncover unused software licenses, and help avoid unnecessary costs.
Next: Learn More About ITAM
If you'd like to enrich your knowledge about ITAM, here are some starter videos for you to keep learning: