Enterprise Asset Management Software Key Terms

Terms you will discover as you research enterprise asset management software

By Ann Starr

Enterprise asset management refers to the process of managing an organization’s physical assets. It covers everything from design to decommissioning and replacement. Enterprise asset management software can help small businesses and large enterprises. By managing assets efficiently, organizations can reduce their capital and operating costs substantially as well as extend the life of an asset and improve return on assets. As you research the various software packages on the market, you’ll want to familiarize yourself with some of the common terms you will find.

Managed service provider

Managed service provider (MSP) is an outsourced solution that consists of transferring the day-to-day management of an organization to an external entity. Typically, the client does not give up the overall management responsibility but instead oversees the service provider and holds them accountable. Enterprise asset management software can be included as part of what a managed service provider offers to its customers.
Try: WebMediaBrands has a definition of managed service provider.

Capital costs

Capital costs are those incurred during the purchase of buildings, land, construction and equipment that is used in producing goods or rendering services. Enterprise asset management software can help track capital costs for an organization.
Try: Go to BusinessDictionary.com for another definition of capital costs.

Whole-life cost

Whole-life cost refers to the total cost of ownership of an asset and includes such things as planning, design, construction, operation, maintenance, renewal and replacement or disposal. Enterprise asset management software can track whole-life cost for many assets.
Try: AllBusiness.com offers more information on whole-life cost.

Return on assets

Return on assets (ROA) is usually expressed as a percentage and shows how profitable a company's assets are. ROA tells how many dollars of revenue a company can get from each dollar of asset they control. Enterprise asset management software can help track a company's ROA.
Try: See InvestorWords.com for a definition of ROA.

Data migration

Data migration is the process of moving data between storage types, formats or computer systems. Once an organization has selected an enterprise asset management software solution, it can begin the process of moving data from legacy or current systems to the new software.
Try: InfoTechNet describes the process of data migration in more detail.

Radio-frequency identification (RFID)

Radio-frequency identification (RFID) refers to the use of a tag applied to a product for the purpose of identification and tracking using radio waves. Enterprise asset management software usually incorporates RFID technology for asset tracking.
Try: TechTarget explains how RFID works.