Hardware Asset Management: Lifecycle, Steps to Implement, and More 

What is Hardware Asset Management?

Hardware asset management is procuring, monitoring, maintaining, and eventually disposing of hardware devices and equipment within an organization.

Any physical piece of technology a company owns is technically a hardware asset. This includes active devices, those stored away, and even supporting equipment.

Effective hardware asset management helps keep hardware performing at its best. It also ensures that you’re never understocked or panicking about getting mechanics or replacements for malfunctioning devices. 

Organizations lose 3 to 5% of their hardware budgets annually to ghost assets. This is because hardware cannot be automatically tracked and monitored unlike software applications. 

Ok, that’s HAM in a nutshell? But how do you implement it in an organizational setup? 

Let’s find out.

The Hardware Asset Management Lifecycle

Managing hardware assets is a phased process. 

It includes multiple steps, beginning with planning and preparing for what hardware assets to buy and considering options for their safe disposal.

Hardware asset management is essentially thus the process of managing their lifecycle.

Here’s what a typical hardware asset management process looks like.

Planning and procurement

The HAM lifecycle begins with the planning stage. 

Here, you revisit your current inventory and forecast the use of new resources.

At this point, you have to ask yourself: Which devices do I need to push my business forward, and if they fit within my financial framework?

Once you have answers, decision-makers will initiate discussions with vendors to secure devices that meet your business's technical demands. You then take delivery of those assets, marking the completion of this stage.

This initial step is critical. It sets the stage for a hardware ecosystem that grows and adapts alongside the organization.

Deployment

After delivering new hardware, you configure and set up the devices so employees can use them. That’s the deployment phase. 

The stage involves physically setting up devices and installing them in specific work environments, such as a central office, remote workspace, or hybrid setting.

Sometimes, employees might also need to accept the new hardware formally. Onboarding sessions and clear instructions on usage policies often follow it. 

Management

The real game begins once your devices are installed and ready to use. Yay, that’s because you’re now in the management stage. The longest phase of the hardware asset management lifecycle, it involves overseeing every asset’s security, maintenance, and efficiency, 

Of course, the phase also involves managing spare parts inventory, scheduling required system upgrades and security patches, and evaluating asset utilization and depreciation (by IT teams, often in coordination with your finance staff).

It involves everything you do to keep your hardware running smoothly until it gets very old and needs to be retired.

Retrieval

At some point, certain hardware assets need to be recalled from active duty—maybe for upgrades, repurposing, or due to shifts in business strategy. Retrieval is concerned with reclaiming these devices securely and then, depending on their condition, decommissioning them from duty.

Here’s when you need hardware retrievals:

• Employees leaving your organization

• Devices that a breach has compromised

• Devices due for an upgrade due to outdated specifications

Retrieval and decommissioning of corporate hardware are sensitive affairs. You need to ensure the physical safety of the hardware and safe and secure data handling. 

How you handle retrievals is crucial for the smooth and secure transition of active devices to the next stage of their life. 

Disposal

This stage is the final goodbye to your retired assets.

Depending on the sensitive data stored on your assets, you might need to use specialized data wiping methods, such as degaussing and physically destroying HDDs, to guarantee that nothing stored on those drives can ever be recovered.

You could also donate usable assets to local institutions like orphanages or schools (which we recommend). You can send them to a recycling facility following e-waste guidelines if they are completely unusable.

How to Implement an Effective HAM Strategy

So, those were the fundamental steps that form the basis of hardware asset management.

But how do you implement it for your organization? Below, we'll list how to manage your own hardware through these phases.

Create a centralized inventory

The foundation of any HAM strategy is a single source of truth. This is a centralized inventory where you see and monitor all your assets across your organization in real time.

But why do you need this?

Without this inventory, asset tracking would be fragmented. Plus, a single system to track asset status, location, and ownership across multiple departments and locations is a huge convenience. 

An ITAM system is your best bet for building such a centralized inventory. Consider cloud-based solutions like Workwize, which are better scalable and integrate with existing IT ecosystems. 

Next, categorize your assets, either by ownership (corporate-owned or employee-owned under CYOD/BYOD policies), location (on-prem, remote, data center), or something custom.

Pro-tip: To maintain data integrity from day one, limit who can add, edit, or remove assets from the system, preferably with role-based access control.

Tag assets for easy identification

Once your inventory system is in place, the next step is to tag physical assets. Even the best asset management system will fail without proper tagging because of missing or duplicate records.

There are more than one method of asset tagging, like

• Barcodes: Low-cost and widely used, but needs close-range scanning.

• QR codes: Stores more data than barcodes and can be scanned with mobile devices. These are suited for detailed asset tracking.

• RFID (Radio frequency identification): Best for secure environments and large-scale deployments because it allows bulk scanning without direct line-of-sight.

Remember to standardize your tag placement: Place tags in consistent locations across all asset types (e.g., the bottom-left corner of laptops, the back panel of monitors).

Once tagged, scan and link each tag to its digital record during procurement or deployment.

Choose the right HAM software

Manually tracking hardware assets with spreadsheets or static databases might work for a small business, but as your infrastructure grows, so do the risks of inefficiency and human error.

A HAM software handles asset issues and automates asset discovery, lifecycle tracking, and reporting.

When you purchase a HAM solution, look for these features:

• Look for solutions that integrate with Active Directory, Microsoft Intune, or SCCM for automatic device registration. Workwize ticks all the boxes.

• If it’s cloud-based, it should have agentless discovery for remote assets.

• It should track the entire hardware lifecycle, including warranty details, routine maintenance, and usage logs.

• It should generate real-time audit reports for compliance with SOX, HIPAA, ISO 27001, and NIST standards.

Workwize is a trusted hardware asset management solution, and we recommend you try it today for stress-free hardware management.

Schedule maintenance to prevent downtime

IT hardware is only as reliable as the maintenance behind it.

Arrange regular servicing, firmware updates, and security patches to keep hardware assets performing at their best. This will reduce the risk of unexpected failures and cyber-attacks.

The best way to tackle maintenance is to create a quarterly or biannual schedule for hardware servicing, firmware updates, thermal paste replacements (for high-performance machines), and internal cleaning. Scheduled maintenance is necessary to prevent downtime and productivity loss.

Apply security patches based on CVE security levels and prioritize critical vulnerabilities. Store past maintenance records in a configuration management database (CMDB) for future troubleshooting.

Automate offboarding and disposal

Most companies don’t take this step seriously enough, only to risk millions in cyber attack risks if something goes haywire (not to mention the irreversible hit on reputation).

From a security standpoint, offboarding is one of the most sensitive areas with the highest chance of data leakage. Make a mistake here and you risk sensitive corporate data falling into the wrong hands and doing catastrophic damage.

Even factory resets aren’t always enough—forensic tools recover deleted data if devices aren’t properly sanitized. Scared? You should be. Here’s how to decommission devices safely:

• Create an automatic deactivation workflow in your HAM solution that revokes access when an employee leaves.

• Trigger asset return procedures for departing remote employees.

• Follow NIST 800-88 and DoD 5220.22-M standards for secure data destruction.

• Clean HDDs and SSDs with certified tools like Blancco and BitRaser.

• Maintain a chain-of-custody record for all decommissioned devices.

Once wiped clean, work with R2 or e-Stewards certified partners to responsibly dispose of your assets. If they still have usable life, sell them or donate them to charitable organizations.

With Workwize, you can remotely lock and retrieve employee devices with a click. Employee offboarding shouldn't trigger headaches within IT teams. 

Hardware Asset Management Best Practices

“Good management has an extraordinary way of making money for you, and bad management, no matter how favorable the environment, has a way of missing opportunities.”

• Robert Wilson 

You cannot always follow the rules when you’re in charge of something as complex as an organization's entire hardware ecosystem. There will be times when you have to sway. 

But if you have an overall system for hardware management that is right, you will avoid many troubles. 

Here are some hardware asset management best practices you might want to implement:

Automate workflows and reporting wherever possible

Automating workflows should always be a part of your HAM strategy. 

For example, you can set up processes for assets to update their statuses when certain things happen (like when someone checks out a laptop, it automatically shows as "Assigned to employee") or automatic reports to review the status of your IT inventory.

They help save time and strengthen security. You'll also always have the right amount of inventory, minimal ghost assets, and better procurement plans.

Asset managers can save up to 40 hours weekly with Workwize automated workflows. Set up reminders for maintenance, onboard new members easily, and much more, all within Workwize.

Make use of location and condition tracking

Hardware asset tracking is essential to prevent theft, loss, and damage to your assets. 

Always go for hardware management software that provides real-time hardware location data.

You may want to use RFID tags and QR codes for devices that are not connected to the Internet, such as printers, storage drives, biometric scanners, and webcams.

Add environmental tagging systems

An environmental context system can tag assets with specific environmental conditions, such as temperature ranges, humidity levels, or dust exposure. 

Doing so helps predict maintenance needs more accurately and can extend asset lifespan.

Create power consumption profiles

If you want more asset visibility and control over power usage, create a system that accommodates power consumption profiles for each asset type. 

Unexpected increases would indicate hardware issues before they become damaging. This data can also help optimize your data center layout and cooling requirements. 

Monitor the performance of your hardware vendors

The performance and quality of your hardware depend largely on which vendor you acquire it from.

To choose the right vendor during your next upgrade cycle, monitor things like:

• Mean time to receipt of replacement parts

• Quality consistency across different manufacturing batches

• Accuracy of vendor-provided MTBF estimates

• Historical variance in repair costs

Challenges That Can Hinder Hardware Asset Management

Managing your hardware assets might seem simple on paper—but in reality, it’s littered with varying obstacles. 

Here are some challenges you’re likely to face:

• Keeping processes optimized: Organization is the biggest hurdle you'll face. Without a proper inventory, how can you possibly know what hardware you own, who's using it, or where it's located? That's why most modern HAM solutions are built to automate inventory tracking and give you clear visibility of your assets.

• Lack of automated tracking: Some companies still rely on spreadsheets from days gone by and homegrown tools to manage their hardware inventory. While this might work for a while, you'll see more inconsistencies and human errors creeping in as your company grows.

• Inconsistent inventory and maintenance records: Another common issue is completing your records. Sometimes, assets don't make it into the inventory, or maintenance records are left incomplete. This often comes back to bite you; you miss a maintenance schedule and could be looking at significant downtime and productivity losses.

• Service issues: Your hardware will need fixing or troubleshooting at some point. If your maintenance records are incomplete or information is missing, you have to spend extra time digging around for basic details before you can even start solving the problem. A good HAM solution fixes this by consolidating all this information.

Why Partner With Workwize For Hardware Asset Management

Worwize is a globally recognized IT hardware lifecycle management platform. It saves IT teams valuable time and lets them do their jobs better. 

Here’s why you’ll love Workwize. 

See your costs go down

Workwize reduces the resources involved in hardware procurement, maintenance, and retrieval. You can eliminate unnecessary purchases and reduce the need to manage multiple vendors and contracts. You can even extend the life of your devices with optimal maintenance. With Workwize, all your resources are always used correctly. 

Never risk your security and compliance 

Workwize takes security seriously.  We are an ISO 27001-compliant organization with strict adherence to GDPR guidelines. We ensure all assets are transported safely with 100% secure data handling.  

With Workwize, you always know where your assets are. When it’s time to bid them goodbye, you can count on us for secure data erasure and fully compliant asset disposition. 

Enjoy more productivity as an IT Team

Workwize organizes all your IT hardware into one neat platform. 

Never waste time determining what to buy and when or what asset to retrieve. Workwize keeps you informed about everything, so you can act fast. 

Take advantage of our many automation possibilities to stay current with the right information and never say, “I forgot.” Trust Workwize and save up to 40 hours per week.

Ensure sustainability and CO2 reduction

Workwize is committed to caring for the environment. We promote local procurements and disposal to reduce emissions and environmental impact. We also help you refurbish and reuse assets to extract maximum juice from your hardware investments.

Don’t trust us until you try us. Book a demo now to see Workwize in action.

FAQs

What is Hardware Asset Management (HAM)?

It is the process of monitoring every piece of equipment in your IT environment, from when you purchase it to when it's time to retire it. It means knowing exactly what hardware you have, where it is, and how well it's performing.

How does HAM help IT teams save time and money?

HAM gives IT teams a clear picture of all hardware assets, which makes it easier to schedule repairs, plan upgrades, and avoid unnecessary expenses. Since everything is monitored, you spend less time tracking down missing devices and more in keeping systems running optimally.

How do businesses implement a HAM system?

It usually starts with a clear process to track every piece of hardware. You then establish an inventory system, install monitoring software on new devices right away, and put procedures in place for regular maintenance and eventual disposal.