If your summer garden is growing off the charts, you probably have tactics and plans to gather all the vegetables, herbs, and fruits before they go bad and keep things under control. So how can companies stay organized when they’re growing faster than your radishes?
The economy is growing and prospering, which allows many companies to expand and thrive. One key factor for handling growth is data management, especially regarding assets. A surge in growth can be accompanied by an increase in employees, materials, equipment, locations, and other expanding operations. Tracking these new assets is vital for staying organized and informed amidst the chaos of development.
Aberdeen research shows the positive effects of monitoring fixed assets. Companies with fixed asset management (FAM) strategies in place are 21.4% more likely to have the ability to share and integrate data across the enterprise. By providing a platform for this flow of data, FAM technology brings all areas together as a cohesive unit, allowing for holistic visibility, organization, and, ultimately, growth. To further investigate the benefits of utilizing FAM strategies, we will consider the connections between the capabilities of Best-in-Class companies, the use of FAM technology, and the impact FAM has on businesses.
Best-in-Class Financial Reporting Trends
Financial data in particular needs to be accurate; otherwise, compliance and economic risks come into play. Motivated by the rise in the power of analytics and the desire for detailed visibility, companies feel more comfortable providing people with access to financial data if it’s accurate. Best-in-Class companies handle their financial reporting more efficiently and accurately than other companies (Figure 1).
Figure 1: Best-in-Class Deliver Efficiency and Accuracy
Best-in-Class companies are more transparent with their financial reports and performance than average and laggard organizations. They also have more reports that were 100% accurate last year, indicating their techniques to prevent financial mishaps are effective. Examining how Best-in-Class companies handle their financial reporting and asset tracking can help uncover the best practices for financial reporting. One possible method is utilizing FAM technology.
Impact of FAM Technology
Those with a mature approach to financial management, including the use of FAM technology, are seeing business results in profitability and efficiency. The change in several metrics that companies observed over the past two years reveals how FAM strategies are affecting a wide range of business processes (Figure 2).
Figure 2: Business Impact of FAM
Companies with a FAM strategy in place improved substantially more in all areas than those that do not. Increases in efficiency can be observed through the margin for effective business processes as well as greater performance from employees (productivity) and agility of assets (inventory turns). Thus, businesses utilizing FAM strategies are excelling in other areas in addition to financial management, particularly profitability and expedience.
FAM technology is beneficial to add to your arsenal if you’re planning to expand. It can help you track all your assets that often get misplaced, forgotten, or incorrectly depreciated. You can save money and stay ahead of the curve because companies using FAM strategies are 86% more likely to have preventative maintenance capabilities for their fixed assets. While FAM isn’t the only strategy for keeping businesses organized, it’s the strategy with the most ties to actions of Best-in-Class companies.
Best-in-Class companies are accurate and transparent with their financial reporting, and FAM technology can help laggard and average companies get there. Companies that utilize FAM strategies are 50% more likely to modernize their technology infrastructure and applications — it’s clear that the benefits of FAM don’t stop at financial reporting. These strategies are correlated with increases in profitability and overall progress.
During times of growth, staying organized is essential, and taking control of your assets can provide you with security and stability as you launch your business toward future success.