Success often lies in the details. This is particularly true when managing an organization’s IT assets. Gartner Group has highlighted the importance of thorough asset management in their reports, emphasizing that many organizations fail to assess their resources accurately. They note that some companies miscalculate their assets by over 50%, which is significantly higher than the acceptable margin of error in business cases, which is typically around 20%.

Facing the Harsh Reality

As an IT manager, you may not always be fully aware of the assets under your responsibility — whether it’s the number of systems or the staff managing them. If you don’t know, you’re bound to find out sooner or later, and it’s better to learn through proactive discovery rather than being caught off guard in a board meeting by a colleague who might not have your best interests at heart.

Unfortunately, realizing what you don’t know can be costly and time-consuming, especially in a medium to large organization. Three common assumptions often hold true:

1. The inventory of hardware and infrastructure is likely inaccurate.
2. No one really knows where the licenses and maintenance agreements signed over the last decade are stored.
3. There are critical flaws in the information systems that could cause significant issues.

The Discovery Process

The discovery process is essential and must be thorough, covering every corner of the business. It’s not just about cataloging hardware and software; it’s also about understanding the duration, conditions, and operational scope of each asset. For example, a comprehensive IT asset management system should track purchase details, financial management aspects like rentals and depreciation, legal compliance, electronic orders, software contracts, transfers, additions, and changes.

You might encounter hidden employees, equipment, contractors, and consultants who fall outside the official IT budget. Gathering this information might meet with resistance, but it’s crucial that all data is meticulously cataloged and stored in a system that is easily accessible. Remember, the information you gather will change over time, so ensure you have the right processes and staff in place to keep it updated.

Scoping the Work

The scope of this task includes:

• Contractual Agreements: All IT-related employment contracts, whether directly with the IT unit or other business units.
• Software and Hardware Inventories: Detailed technical documentation, maintenance records, and specifics about capacity, usage, and business ownership.
• Communication and Networking Equipment: This includes everything from modems to LAN hardware, often managed outside the IT department.
• Licensing and Maintenance Agreements: For databases, utility programs, development tools, system management, and networks.
• Disaster Recovery and Business Continuity Agreements: Whether internal or external.
• External Resource Utilization Contracts: These may involve IT or other business units.
• Office Equipment: Items like whiteboards, fax machines, desks, and office space, which can impact the resources available to you.

Discovery Challenges

During this process, you might discover discrepancies regarding the IT department’s role in managing certain IT assets. These discrepancies often arise with “departmental applications,” such as spreadsheets or small-scale databases created by non-IT professionals. These applications typically surface in engineering, accounting, marketing, and statistical departments and are only handed over to IT when they start causing significant problems.

Additionally, there are applications and technologies on the fringes of traditional IT, such as telecommunication software, internet telephony management systems, and customer-facing electronic links, which may need to be integrated into your management scope.

The discovery process also raises sensitive issues regarding ownership and responsibility for technology-dependent assets. Expect resistance from those who are reluctant to allow IT to take control of their operations. However, it is crucial to define the assets under your management in detail. Failing to do so will lead to an IT management role filled with constant anxiety and firefighting.

Mapping the Scope and Service Level Agreements (SLAs)

In a previous discussion on SLAs, we mentioned that one of the critical benefits of the discovery process is ensuring that future SLAs are based on accurate knowledge. If SLAs and the complex network of people, tools, and structures needed to support them are built on inaccurate data, failure is inevitable.

For example, if an SLA commits you to support 500 desktop computers but you later discover that there are actually 700, your IT department will face severe resource shortfalls. Effective technical support usually requires a 1:50 ratio of IT support staff to desktop computers. Misjudging this ratio, say by assuming a 1:200 ratio, can leave your IT department severely understaffed.

Creating a Discovery Team

Discovery is a challenging task. You will need to assemble a small, multi-skilled team. If this is your first time conducting such a process, the complexity of the task might seem overwhelming. To make the discovery process effective, your team should possess a minimum of five specialized skills:

1. Project Management: To plan and oversee the process.
2. Inspection Skills: To identify and track assets and business information.
3. Records Management: To create a detailed inventory of discovered items.
4. Infrastructure Analysis: To document the current infrastructure accurately and understand its limitations.
5. Financial Analysis: To ensure that current and projected costs for future deliverables are grounded in a solid framework.

Financial Analysis and Technology Issues

Don’t rely solely on the latest financial statements for an accurate picture of IT costs and revenues. These reports likely exclude hidden IT costs and may be based on flawed financial principles. Accurately modeling the true cost of IT is challenging but necessary for establishing proper budgeting and reporting guidelines.

During the scope mapping, you may uncover administrative issues such as expired licenses needing renegotiation or assets requiring reassessment. For instance, discovering and legally reconciling unauthorized software could be costly. Moreover, certain assets, like software with untraceable suppliers, might be challenging to identify accurately.

Conclusion: Why This Matters

The discovery process is time-consuming and tedious, but it’s essential. If not undertaken, you’ll face both personal and financial troubles later on. Knowing the scope of your IT environment is crucial for effective management. The better you understand your organization’s business scope, organization, processes, people, and IT, the better equipped you’ll be to manage them effectively.

Key Takeaways:

1. Understand that a thorough discovery process is necessary to avoid unexpected challenges.
2. Assemble a skilled team to ensure all aspects of IT assets are identified and managed.
3. Financial and technology evaluations should be accurate and comprehensive.
4. Always be prepared for the impact of unexpected discoveries on your IT management.