--- title: What Is Asset Life Cycle Management? A Comprehensive Guide --- # What Is Asset Life Cycle Management? A Comprehensive Guide Last Reviewed: March 16, 2026 9 min read [1 comment](https://www.selecthub.com/eam/asset-lifecycle-management/#comments) [ ![Kriti Agarwal](https://www.selecthub.com/wp-content/uploads/2021/09/Kriti-Headshot-96x96.jpg) ](https://www.selecthub.com/author/kriti-agarwal/) [Written by Kriti Agarwal](https://www.selecthub.com/author/kriti-agarwal/) Technical Content Writer [ ![Ryan McElroy](https://www.selecthub.com/wp-content/uploads/2021/06/Ryan-McElroy-Headshot-96x96.jpg) ](https://www.selecthub.com/author/ryan-mcelroy/) [Edited by Ryan McElroy](https://www.selecthub.com/author/ryan-mcelroy/) Content Editor Table of Contents * [What Is Asset Life Cycle Management?](#What%5FIs%5FAsset%5FLife%5FCycle%5FManagement) * [Stages](#Stages) * [Planning](#Planning) * [Acquiring](#Acquiring) * [Using](#Using) * [Maintaining](#Maintaining) * [Disposing](#Disposing) * [What Is IT Asset Life Cycle Management?](#What%5FIs%5FIT%5FAsset%5FLife%5FCycle%5FManagement) * [Primary Benefits](#Primary%5FBenefits) * [Improve Business Outcomes](#Improve%5FBusiness%5FOutcomes) * [Increase Efficiency](#Increase%5FEfficiency) * [Reduce Costs](#Reduce%5FCosts) * [Raise Productivity](#Raise%5FProductivity) * [Minimize Risk](#Minimize%5FRisk) * [Enhance Decision-making](#Enhance%5FDecision-making) * [Maintain Compliance](#Maintain%5FCompliance) * [Importance](#Importance) * [Best Practices](#Best%5FPractices) * [Conclusion](#Conclusion) Extending the usefulness of your assets can be a major cost-saver on replacements, but how do you do it? Asset life cycle management, a form of [enterprise asset management](https://www.selecthub.com/category/cmms/eam/), can help you get the most out of your assets before replacing them. [Compare EAM Software Leaders](https://pmo.selecthub.com/request-custom-scorecard/?category=EAM%20Software) ![What is Asset Life Cycle Management?]() ## What Is Asset Life Cycle Management? Asset lifecycle management is a technique of asset management where facility managers maximize the usable life of assets through planning, purchasing, using, maintaining, and disposing of assets. The main aim of asset life cycle management is to reduce costs and increase productivity. Since tracking assets’ life cycles with the appropriate software enables a constant data supply, organizations invest in asset life cycle management. It improves responsibility while facilitating on-time equipment upkeep and planning. ## Stages The asset life cycle stages typically fit into the categories listed below. Establish the asset’s purpose before the start of the first phase of its life cycle. ![Asset Life Cycle Management Stages]() The life cycle of an asset has five essential phases. ### Planning When current assets cannot satisfy the needs of your business, planning for new assets is the first stage of its life cycle. Your [procurement](https://www.selecthub.com/category/eprocurement/) team may collaborate with several departments to identify unique needs. When buying an asset, consider budgetary restrictions as the main concern should be whether it will meet the organization’s needs. ### Acquiring The next stage is to purchase the asset after you’ve identified your requirements. This entails doing market research on many suppliers and selecting the one that offers the best equipment at an affordable price. Deployment involves assembling, testing for any problems and checking for flaws, which are also a part of the acquisition step. After installing the asset, the maintenance team determines whether it requires replacement parts. The spare parts for the asset should fit within your inventory. Perform additional testing after you deploy the asset to ensure it functions properly. Train your personnel on using and maintaining the asset. ### Using This stage involves the initial use of the asset before any maintenance. During this point, you put the asset to use as intended, anticipating the production to boost your organization’s profitability. It’s vital to remember that although you should start planning before acquiring an asset, it continues during this phase for the asset’s life cycle and upkeep. Numerous factors affect how long an object may operate without needing initial maintenance. These factors include the asset’s kind, frequency of usage, complexity, availability of the organization’s maintenance resources and maintenance strategy. [Compare EAM Software Leaders](https://pmo.selecthub.com/request-custom-scorecard/?category=EAM%20Software) ### Maintaining A new asset enters the maintenance stage of its life cycle once it needs its first maintenance task. [Preventive and reactive maintenance](https://www.selecthub.com/cmms/preventative-vs-reactive/) are the two categories that they fit into. #### Corrective Maintenance You perform corrective maintenance when an asset experiences a problem, and its goal is to fix the issue and restore the asset’s proper operation. This is the most prominently used form of maintenance because you carry out the corrective repair as needed, regardless of how intricate a maintenance team’s plan is. #### Emergency Maintenance When an asset completely breaks down and you must fix the problem immediately, it is called emergency maintenance. A task that is part of [emergency maintenance](https://www.getmaintainx.com/learning-center/emergency-maintenance-em/) may eliminate a threat to safety or prevent harm to a machine, product or structure. #### Preventive Maintenance Preventive maintenance helps you avoid machine breakdown and production delays. [Computerized maintenance management system (CMMS) software](https://www.selecthub.com/cmms-software/) eases preventive maintenance scheduling with precision and consistency. To keep assets in top shape, preventive maintenance programs comprise a list of tasks. A few typical examples include: * Lubricating machine parts * Replacing furnace filters * Changing the oil in a service vehicle * Painting a building’s wall #### Condition-based Maintenance Many major organizations regularly perform condition-based and predictive maintenance work, albeit not every organization does so. This is only possible if your organization has adequate maintenance resources. [Condition-based maintenance](https://www.micromain.com/condition-based-maintenance/) is necessary in response to the actual condition of an asset. With condition-based maintenance, the aim is to avoid doing pointless maintenance procedures. ### Disposing Disposing of the asset represents the final phase of the asset’s life cycle. When a fixed asset reaches the end of its useful life, disposal occurs as part of the asset’s life cycle. The type of asset and the material it is made of will determine whether it should be recycled or discarded. Before you dispose of an asset, you may be able to repurpose it in several sectors. Repurposing of production assets doesn’t take place very frequently, however. When you replace an asset, the life cycle restarts with the new asset. Determining whether your company can upgrade to a better product while reducing costs is always a good idea at this point. [Get our EAM Software Requirements Template](https://pmo.selecthub.com/eam-requirements-onsite/) ## What Is IT Asset Life Cycle Management? Maintaining track of all the devices inside a business would be difficult without IT asset documentation and management. IT asset life cycle management involves keeping track of a resource from when you acquire it to when you retire it. This entails monitoring and keeping track of the item and making sure employees use, secure and dispose of it when it is no longer required. It can also assist in lowering the cost of maintaining and upgrading assets. ## Primary Benefits IT asset lifecycle management offers many benefits, such as helping organizations make informed decisions, increased efficiency and productivity, and reduced costs. ![Benefits of IT Asset Life Cycle Management]() Below are some of the benefits of performing IT asset life cycle management. ### Improve Business Outcomes IT personnel will have better visibility over all IT assets and their return on investment with an effective IT asset management (IT asset management ) life cycle strategy in place. To improve business outcomes, IT teams can ensure that the organization’s technology aligns with its strategic objectives. ### Increase Efficiency Creating a strategic asset management life cycle plan can also improve the efficiency of your IT department. IT personnel can save time by automating crucial procedures like software upgrades and asset management so that they can focus on more important responsibilities. ### Reduce Costs Cost savings are another vital advantage of good IT asset lifecycle management. IT professionals may make more informed judgments about when to upgrade or replace assets since they have better insight into their equipment. As a result, your company can spend less on unneeded upgrades and asset replacement. ### Raise Productivity Productivity gains are another benefit of efficient IT asset management. When manufacturers correctly design assets and you properly maintain them, they can function smoothly and increase user productivity. On the other hand, old or malfunctioning assets might cause annoyance and wasted time. Additionally, your organization can prevent disruptions from broken or old equipment by routinely maintaining your assets. ### Minimize Risk Managing IT assets’ life cycles can also help lower risk. You can prevent the loss or theft of expensive equipment by keeping track of assets and knowing where they are. Additionally, by keeping up with asset maintenance, you can lower the chance of data breaches and other security issues. ### Enhance Decision-making A successful IT asset life cycle management strategy also results in better decision-making. You can choose which assets to invest in and how to use them most effectively by having visibility into all assets and their ROI. This results in enhanced resource management and general improvement in outcomes. ### Maintain Compliance Effective IT asset management life cycle implementation also improves your ability to adhere to legal requirements. For instance, laws and regulations govern data management and storage protocols in many different businesses. By monitoring assets and being aware of where they are, you may ensure that you’re abiding by these requirements. [Get our EAM Software Requirements Template](https://pmo.selecthub.com/eam-requirements-onsite/) ## Importance IT asset lifecycle management involves more than just compiling an asset inventory. The advantages come from continuously collecting asset information to boost operational value, reduce risk and optimize returns. IT administrators can reduce expenses by using their existing resources judiciously, avoiding money wastage and increasing productivity. Additionally, effective IT asset management practices can assist your firm in avoiding frequent asset management errors. When protocols are lacking, businesses frequently overlook important life cycle phases. Proper asset life cycle management helps you avoid costly errors and reap huge benefits. With that in mind, let’s get into some best practices so you can extend asset life cycles to their full potential. ## Best Practices The International Association of Information Technology Asset Managers defines [12 key areas for IT asset management](https://www.cybiant.com/knowledge/12-key-process-areas-of-it-asset-management/). Read them below: **Program Process:** All life cycle stages should include coordinated and documented IT asset management. You must maintain a documented record to build plans and support ongoing IT activities. **Program Management:** Organize asset management processes to follow all industry standards. Developing an IT asset management strategy is easier for firms to navigate when they follow a pre-established structure. **Policy Management:** Clearly outline and follow all IT assets and IT asset management policies. Policies must be easy to understand for employees and important stakeholders. **Communication and Education Management:** Your organization must have a culture that promotes continual IT asset management policy training, education and awareness. **[Project Management](https://www.selecthub.com/category/project-management/):** To ensure that efforts are well-organized, IT asset management needs effective leadership. Enterprises with efficient project management can maintain IT assets easily. **Documentation Management:** For the IT asset’s life cycle, all related documentation, such as purchase receipts, software licenses and authenticity certificates must be kept up to date. **Financial Management:** This involves all activities involved in managing finances like: * Budgeting * [Chargeback](https://www.shopify.com/in/encyclopedia/chargeback) * Financial audit planning * Invoice reconciliation * Forecasting * Billing **Compliance and Legislation:** IT asset management initiatives should emphasize reducing risk and maintaining audit compliance. **[Vendor Management](https://www.leadsquared.com/what-is-vendor-management/):** IT asset management relies heavily on third-party vendors. It is important to establish clear communication channels with these vendors. **Acquisition Management:** Before acquisition or deployment, establish needs for assets in the early stages of the life cycle. Develop a thorough awareness of all applicable laws, regulations and life cycle procedures. **Asset Identification:** It is necessary to identify and catalog each unique IT asset to simplify identification. **Disposal Management:** Make a plan for asset disposal after their useful lives are up and determine replacement requirements. [Compare EAM Software Leaders](https://pmo.selecthub.com/request-custom-scorecard/?category=EAM%20Software) ## Conclusion Asset life cycles impact all company areas, not simply the IT division. Critical assets play an important part from acquiring them until you dispose of them. The return on investment from IT assets can be even higher when they are carefully chosen, set up and maintained while reducing unforeseen problems. These assets may lead to losses if you don’t address life cycle activities properly. Understanding asset life cycles is a key component of a preventative maintenance approach if your organization is sincere about deploying an IT asset management solution. What benefits have you received from asset lifecycle management? Let us know in the comments! ### Trending Topics #### [Enterprise Asset Management](https://www.selecthub.com/category/eam/) [Enterprise Asset Management Trends: The Future Of EAM](https://www.selecthub.com/eam/eam-market/) [The enterprise asset management market is booming. 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Without… ](https://www.selecthub.com/eam/eam-software-requirements-checklist/) [ ![Riya Jamble](https://www.selecthub.com/wp-content/uploads/2023/11/cropped-Riya-Headshot_Meet-the-Team-96x96.jpg) Riya Jamble ](https://www.selecthub.com/author/riya-jamble/) Mar 16, 2026 Originally published in August 2024 and last updated in March 2026\. Contributions from Kriti Agarwal, and Ryan McElroy. ## About the Contributors The following team members helped research, create, and review this content. [ ](https://www.selecthub.com/author/kriti-agarwal/) Written by [Kriti Agarwal](https://www.selecthub.com/author/kriti-agarwal/) Technical Content Writer Kriti is a Technical Content Writer at SelectHub, covering CMMS, EAM and facility management. She is an avid reader, daydreamer and animal lover, especially dogs. A perfect Saturday evening for her is a cup of coffee with a classic book. She is talkative, cheerful, and outgoing. For an ideal vacation, she would prefer mountains over beaches. [See Full Bio](https://www.selecthub.com/author/kriti-agarwal/) [ ](https://www.selecthub.com/author/ryan-mcelroy/) Edited by [Ryan McElroy](https://www.selecthub.com/author/ryan-mcelroy/) Content Editor Ryan McElroy is a Content Editor and Senior Market Analyst at SelectHub who writes and edits content on various software types, along with their broader concepts and the industries they serve, including medical, construction, CMMS, supply chain management and legal. He studied at the University of Missouri (Mizzou) and earned his BA in Journalism in 2016\. During his free time, you’ll find Ryan playing video/card/board games, sipping coffee and reading speculative fiction, or listening to music his loved ones often describe as “headache-inducing.” [See Full Bio](https://www.selecthub.com/author/ryan-mcelroy/) Riya JambleThe Top 12 Asset Management System Requirements * ‹ * › ### Conversation (1) ![Avatar](https://secure.gravatar.com/avatar/281d3616cf761f3582c0d76c23517846?s=32&d=mm&r=g) Write a response [Cancel reply](https://www.selecthub.com/eam/asset-lifecycle-management/?noamp=mobile#respond) Your message Your name \* Your email \* Website Save my name, email, and website in this browser for the next time I comment. * ![Avatar photo](https://secure.gravatar.com/avatar/9df085c4787b7382e39a4879db83acf987b616bb82789fe1fda34f03b2265175?s=96&d=mm&r=g) #### **Asset Thread** \- April 7, 2026 In this blog, asset lifecycle management is explained as a strategic approach to track assets from acquisition to disposal, improving efficiency, reducing costs, and enabling better data-driven decisions throughout operations. **[Reply](#comment-203136)** **Tier 1:** Fully/moderately supported out-of-the-box allowing for quick and easy deployment. Fully or moderately supported out-of-the-box with industry-leading capabilities and is immediately available after installation without needing any add-ons, integrations, or custom development. **Tier 2:** Supported with workarounds or add-ons that may require additional costs. Not directly available in the software, but can be accomplished using other built-in features, workarounds, or add-ons/products from the vendor with or without any additional cost. **Tier 3:** Requires partner integrations or custom development that is often at an additional cost. Requires additional integrations, plugins, marketplace applications from a third-party vendor, or custom development using the APIs, libraries, extensions, and development framework supported by the software, with or without any additional cost. 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