SPEAKERS & SESSIONS
Meet the Speaker:
University of Wisconsin-Madison
Session: The Value of Assets
The Value of Assets
Thomas Smith, Faculty Emeritus, University of Wisconsin-Madison
Asset Management is: the coordinated activity of an organization to realize value from assets. This definition from the ISO 55000 Standard for Asset Management is widely quoted, but what does it mean? How is value defined and more importantly, how is it measured? Can one approach to defining value serve both asset-intensive organizations and those where assets might be only a few percent of the balance sheet? Can the same approach serve public organizations as well as private? How can value be effectively managed across business cycles and election cycles, which are often out-of-sync with asset lifecycles? This paper approaches these questions from the value-chain concept pioneered by Michael Porter. It provides a basic introduction to the value-chain and a definition of asset management within this perspective. The value chain is an analytical tool, which opens a new vista in our understanding of truly comprehensive asset management. It also aligns well with ISO 55000 and supports the development of an effective asset management system in this context.