With the expansion of emerging technologies, Digital transformation has recently gained popularity as businesses are looking for ways to keep up with the developing technological norms. Therefore, digital transformation in asset management is no exception.
Although, it is no surprise that digital transformation is now mainstream. The shift from traditional framework to digital is massive. 57% of US business leaders think that it is now their most important strategic initiative.
Moreover, asset management in digital transformation is offering unmatched advantages like cost reduction, enhanced efficiency, and better customer experience. Therefore, we expect a steep upward trend in the future as more businesses adopt this mechanism.
As the digital transformation in asset management is reshaping industries, it is not just a buzzword. In this article, we will explore the future of digital asset management through the lens of digital transformation.
What is Digital Transformation?
The process of using technology to change the way a business operates is digital transformation. 74% of businesses say AI is now significantly changing the way they work (Broadridge study report on North American firms. Since the purpose of digital transformation is to bring agility and efficiency, it includes everything from automation to adopting new digital tools.
However, each business has its motivating factors to go for digital transformation like upgrading traditional systems, staying competitive, or improving its operations.
The Existing Asset Management Landscape
Traditional asset management involves manual or batch processing, paperwork, and dependence on physical interaction. However, with digitalization, a major shift is happening in how we manage our tasks and assets.
A report suggests that the asset and wealth management industry is expected to reach $145.4 trillion by the end of 2025, where a significant coincides with digital adoption. As machine learning, artificial learning, and data analytics are taking business by storm, we can expect best practices in digital asset management to completely wipe out traditional ways of managing assets.
The Impact of Digital Transformation on Asset Management
Digital transformation is having a massive impact on asset management companies. Like other businesses, asset management is also observing a massive shift in how it can work best for other businesses. Digital asset management has also brought numerous benefits for businesses that have adopted it.
Let us look at digital transformation's impact on asset management.
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Real-time Information
Digitalization of asset management provides the ability to retrieve real-time information is driving organizations to make learned decisions, as they understand the performance of their assets. Moreover, they use this updated information to optimize asset utilization and reduce maintenance costs.
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Predictive Asset Management
Digitalization is helping businesses to make predictive decisions rather than reactive. Managers are now better placed to examine trends over a period and identify problems before they happen.
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Centralized Control
Assets management has improved after digitalization as it provides centralized control. You can sit anywhere in the world and access your assets thus offering better management solutions.
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Improved Visibility
Since you can access your assets remotely, this significantly improves visibility. Moreover, it also equips managers to make informed decisions.
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Improved Asset Utilization
Digital asset management best practices to help managers better understand their assets. Therefore, enabling them to better utilize and efficiently manage their assets. It will reduce underlying costs and improve revenues.
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Faster Asset-Related Decision Making
Since, digitalization supports a quick supply of information through data analysis and identifying trends, thus, enabling organizations to make better business decisions. The decision-making speed is also backed by efficient and accurate data study techniques.
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Greater Transparency And Asset Traceability
Visibility is the key for any asset throughout its lifecycle, which is promised by digital transformation. Since, you can view your assets from anywhere in the digital world, meaning you have better control over your assets. Moreover, traceability also helps you better accountability in asset management.
Embracing Digital Transformation
Businesses are under pressure to adopt digital transformation to stay competitive. In 2020, a worldwide in-depth study of trends and concerns in the asset management space concluded that 72% of respondents are planning to develop digital assets over the next three years. Meaning, asset management is one of the industries feeling the heat from stakeholders for adoption.
However, how can organizations adopt asset management digital transformation? Let us have a look.
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Willingness and Budget
Willingness is one of the key aspects of embracing digitalization at work. Despite the world moving to new methods, some managers are reluctant to adopt the change.
Therefore, you must show willingness and set aside finance as a token of confirmation of your interest.
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Change Acceptance
Motivating your employees and fostering a change acceptance culture is mandatory for running a successful digital transformation. Therefore, creating an environment where people are open to accepting new ideas and technologies is critical for asset management digital transformation.
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Develop a Team
To roll out digitalization, you must assemble a team from within the organization who are fully aware of the business process to oversee the shift. By doing so, you are also making them responsible for successful implementation and being trained for future requirements.
The Future of Asset Management is Digital
Long gone are the days when you would an asset manager would request a file to check the status of its assets. The Internet of Things has already transformed businesses and their conduct from predictive maintenance to asset tracking.
Furthermore, the advent of artificial intelligence and machine learning has equipped businesses to automate working while maintaining a high level of accuracy. Cloud computing dominates today’s digital imperatives. Almost all (96%) high revenue-generating companies are currently leveraging cloud computing to drive digital and operational transformation. They also rank it as the single most important technology at present.
Likewise, we expect asset management to become a data-driven industry, with asset managers having access to real-time insights. Moreover, they will be able to make well-informed decisions about asset utilization and risk management.
Additionally, asset management in the digital world will be more collaborative, as mobile apps and cloud storage will make access to these assets easy. Thus, enabling teams to work on complex problems while staying apart.
In short, the future of asset management lies with digital transformation as it will optimize processes; reduce operational costs, and increase profits.
Frequently Asked Questions
What is digital strategy for asset management?
Here are the key steps involved in digital transformation.
- Defining objectives
- Review existing assets
- Establish metadata
- Determine access and permission
- Choose a digital asset management system
- Develop a workflow
- Set up governance
- Train the team
- Monitor and measure
- Optimize and update
What does digital asset management do?
Digital asset management is the organizing, storing, and retrieving of assets.
Who needs digital asset management?
Anyone looking to optimize business processes should adopt a digital asset management system. It can include both small and large-scale businesses.
Does digital transformation have a future?
The business dynamics suggest that the digitalization of assets is here to stay. Since AI and machine learning have already transformed the entire arena, so we expect that will have a long-term say in business conduct.
Parting Thoughts
Asset management digital transformation is one of the best things to happen to the business world in the recent past. Since the business world is moving to digitalization, thus asset management has also gained enormously from advancements.
Further, asset managers are equipped with real-time information about their assets. Therefore, they are now best placed to make timely and accurate decisions.
Likewise, with the dawn of artificial intelligence and machine learning, businesses can predict the future based on available trends, hence offering excellent risk management techniques.
Digital transformation is the future of asset management as it supports high efficiency, safety, and accessibility. In short, digital transformation is everything a business can ask for, thus becoming a need of the hour.
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