Difference Between Asset & Facility Management

Often in the process of using asset management solutions, there is confusion between the use of two concepts. On the one hand it may appear that they have similar objectives, but in fact they differ in objectives, methods and tools. In this article we suggest to understand the difference between Asset Management vs. Facility Management.

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The first concept is Asset Management - an approach to managing the company's assets over a specifically defined period: from acquisition to disposal. Its purpose is to maximize the value of the used assets, optimize the processes of interaction with them and minimize management risks. Management aspects include strategic planning processes, target utilization of assets, and financial analysis.

At the same time, Facility Management differs from Asset Management in that it provides solutions for managing buildings and infrastructure. The goal of this approach is to provide an optimal environment for the business, maintaining the performance of the team's systems and equipment. This can include the management of real estate, engineering systems, space, services and more.

In practice, the concepts of Asset vs Facility Management are related, but have different areas of impact. The former focuses on the long-term goal achievement, while the latter approach provides an optimal environment in short-term planning. Understanding their differences and functions will help you choose the right system that will optimize resources, increase efficiency and reduce costs in your company.