Strategic Asset Management Report: Semester 1, 2024

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STRATEGIC ASSET MANAGEMENT
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Table of Contents
Introduction......................................................................................................................................3
Workshop 1......................................................................................................................................4
Topic 1: What is Asset Management and Asset Management Strategy......................................4
Topic 2: MIT fish banks simulation............................................................................................5
Workshop 2......................................................................................................................................7
Topic 1: Asset Management Decision Theory and case study....................................................7
Topic 2: Asset Capability Delivery.............................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
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Introduction
In this report, the strategic asset management and its associated components such as asset
management, assets management strategy, assets capability delivery systems, assets management
decision theory will be discussed. One of the critical factors of asset management is MIT fish
banks simulation which is a game and provides the knowledge of how to use resources with
sustainability from a shared resource pool. It all helps to understand that asset management is
required to achieve the success of any organisation.
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Workshop 1
Topic 1: What is Asset Management and Asset Management Strategy
According to (Berzin et al., 2013) asset management is a systemic approach to the control of the
investments in the organisation on behalf of others. This process includes developing, operating,
maintain, upgrading and disposing of assets with proper cost efficiency. Cost efficiency consists
of all sorts of risks and performance attributes.
Assets refer to those items which are appropriately owned by a person or a company which has
value though. In financial terms, assets include tangible and intangible assets owned by the
company. These things must produce some profit or at least have some economic value to the
organisation. It showed the importance of ownership which can quickly be converted into cash
(El-Akruti et al., 2013).
Asset management strategy includes those strategies which are responsible for implementation
and documentation of asset management. It consists of some plans, practices and process which
we have to follow to achieve our desired outcomes within the organisation.
The purpose of asset management
After attending workshop 1, I came to understand that asset management is a vast industry and it
is one of the fastest rapidly growing sectors. Asset management helps to manage risks in an
economic and social context and make returns to the organisation's customers. It helps me to
understand that it is one of the essential things to allocated capital in the organisation. The
primary purposes of running asset management programs are managing risks related to the
respective industry and enhance its profitability (Alvarez et al., 2012).
The standards of Asset management
ISO 55000, 55001 and 55002 are the first family set of international rules for asset management
which was launched in January 2014. These three international standards for asset management
are considered to be the most important one because they represent the global consensus in the
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asset management industry. Before using that the British standards institution published a
publicly available specification (PAS 55) in 2004 for physical assets (Morrison & Nicola, 2013).
Asset management strategy
According to Ethiraj, et al., 2018 Strategic management is very tool to achieve goals and targets.
It includes a few stages which help to lead to the path of success and achieving goals. It is the
management of the strategy which company is following to achieve its goals and targets.
Asset management strategy is the tool for implementation and documentation of assets
management including practices, plans, process etc. it helps to make a profit without put
organisation on superior risk. It helps the organisation to maintain the risks.
Derivation of asset management
The asset management was initially founded by a team of investment managers who were
working on the traditional investment process for years and who are very experienced in their
respective sector (Gârleanu et al., 2018).
Topic 2: MIT fish banks simulation
There are three four stages of learning by experiences. It includes reflective observation, abstract
conceptualisation, active experiments and actual experiences. All these four stages help me to
understand the concept of experimental theory learning. It covers reading, listening and writes
about it also which helps to understand the topic very well (Ferreira et al., 2018).
Fishbanks is a web-based simulation where multipliers can play at the same time. They have to
play the role of fishers, and other players play the part of other competitive anglers. Their target
is to compete against each other and maximise their net worth which indicates a winning sign in
the game. Players have to deal with variations in fish stocks and their catch. Players can buy, sell
and build ships and negotiate about the place where to fish. Policy for boat auction, new boats
and their permits are included.
Fishbanks simulation helps me to understand the challenges which I can deal with while
managing resources sustainability in a shared resource pool, with practical resources dynamics.
This game is all about sustainable resources management. Each session ideally takes 2 hours in
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the game which can stretch with the limits of two days maximum. The game goes well if 5 to 30
players play at a time. A little practice and creativity help make a master of the game. This game
helps me to understand how to fulfil a variety of goals which are not related to any specific
problem focus. It makes me understand the importance of being friendly and co-operative with
others not just in this game but also in the life to solve the problems and manage resources with
sustainability.
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Workshop 2
Topic 1: Asset Management Decision Theory and case study
Decision making is one of the essential parts of the asset management theory because, without
effective decision making, proper assets management is impossible to be done. Decision making
can be complete if data which given is sufficient, accurate and documented, it will not only help
to make better identification about current resources and situations of the company, it means it
provides a better view of the company’s current position. It can help us to take the better decision
not only about asset management but also about all the operational management in the company.
Asset management is most often, but mainly it has five step processes to follow (Baah et al.,
2013).
Pre-analysis – It is one of the most critical steps and including essential things such as
identification of the problem, including the management of expectations and needs of
stakeholders. Assets management will be a total failure if the company fails to create a proper
engagement with its stakeholders.
Structural analysis – It is the second stage where the information received from pre-analysis
will be analyzed according to the original report. It is essential to step that if when companies are
failing to do structural analysis effectively, there are chances that they often fail to reach the
desired outcomes from the assets management process.
Uncertainty analysis – these steps include the study of the uncertainty of the assets
management. It could be easily ignored, but this analysis is critical to predicting the change
which is required for the effective and proper assets management at the organisation.
Utility or value analysis – It includes the Analytic Hierarchy process for calculating the utility
value of the company. It helps to study asset management effectively.
Optimisation analysis – This step is trivial; it includes the strategy that maximises the utility. It
helps me to understand the value of this last step of assets management (Merring et al., 2018).
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In the end, I would say that pre-analysis and structural analysis are the most critical steps in this
process which have the most of them in asset management theory.
After attending workshop 2, I came to know that stakeholders are a massive part of this assets
management process, so it is required that we give priority to the requirements and expectations
for running an effective assets management.
Topic 2: Asset Capability Delivery
The capability delivers models shows the process and discipline areas which help to reach to the
delivery path of the organisation's objectives and goals with the use of some physical assets of
the organisation. It helped me understand that this model can only tell us which steps we should
follow to achieve the targets or goals of the organisation (Malkiel & Burton, 2013). The
capability delivery models have few essential factors which are interrelated with each other.
 Demand management - In this step, the management of demand includes which helps to
identify the need at various level of the organisation.
 Operations and maintenance – It is one of the critical steps in this delivery process; it
starts with the purchase of any assets and ends with its dispose of in the organisation.
 System engineering – system engineering helps to ensure the output of the process with
organisation/stakeholders requirements. It includes design management in it.
 Configuration management – It is a systemic engineering process for developing and
managing the constant performance of any products. It also includes functional and
physical attributes according to the requirements, designs and information from the
operational activities.
 Continuous improvement – Continous improvement includes the performance of asset
management and then analysis the requirements for growth at an optimum level. It
consists of the demand analysis, concept development and specification etc.
All of these factors play an essential role in the assets capability delivery, and those help to make
strategic management more effective in the organisation.
Capability delivery system has few essential elements including stakeholders, demand
management, need analysis and need a solution (Nankervis et al., 2013).
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Conclusion
Assets management is a strategic process which includes different stages, but it helps to
understand that it can't be ignored; thus it is one of the essential things to follow if a company
wants to achieve success. Assets management and its components which are related to it have
been intensely discussed in this report. A game called Fish bank simulations and its impact on
strategic asset management has been considered.
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References
 Alvarez, Fernando, Guiso, Luigi & Lippi, Francesco 2012, 'Durable Consumption and
Asset Management with Transaction and Observation Costs', The American Economic
Review, vol. 102, no. 5, pp. 2272–2300,
 Baah, Kelly, Dubey, Brajesh, Harvey, Richard & Mcbean, Edward 2015, 'A risk-based
approach to sanitary sewer pipe asset management', Science of the Total Environment,
vol. 505, pp. 1011–1017.
 Berzins, Janis, Liu, Crocker H. & Trzcinka, Charles 2013, 'Asset management and
investment banking', Journal of Financial Economics, vol. 110, no. 1, pp. 215–231.
 El-Akruti, Khaled, Dwight, Richard & Zhang, Tieling 2013, 'The strategic role of
Engineering Asset Management', International Journal of Production Economics, vol.
146, no. 1, pp. 227–239.
 Ferreira, Miguel A., Matos, Pedro & Pires, Pedro 2018, 'Asset Management within
Commercial Banking Groups: International Evidence', Journal of Finance, vol. 73, no. 5,
pp. 2181–2227.
 Gârleanu, Nicolae & Pedersen, Lasse Heje 2018, 'Efficiently Inefficient Markets for
Assets and Asset Management', Journal of Finance, vol. 73, no. 4, pp. 1663–1712.
 Malkiel, Burton G 2013, 'Asset Management Fees and the Growth of Finance', The
Journal of Economic Perspectives, vol. 27, no. 2, pp. 97–108,
 Maring, Linda & Blauw, Maaike 2018, 'Asset management to support urban land and
subsurface management', Science of the Total Environment, vol. 615, pp. 390–397.
 Morrison, Nicola 2013, 'Meeting the Decent Homes Standard: London Housing
Associations' Asset Management Strategies', Urban Studies, vol. 50, no. 12, pp. 2569–
2587.
 Nankervis, Alan & Chan, Christopher 2013, 'Strategic human asset management:
evidence from North America', Personnel Review, vol. 42, no. 3, pp. 281–299.
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