IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING

Modern ITAM
in the digitallytransformed
enterprise
November 2022 EMA eBook
By Valerie O’Connell
Sponsored byTable of
Research
Findings

1

Modern business demands modern ITAM

2The ITAM/IT connection

2

IT service quality and budget

3

The digital transformation factor

4

An inflection point for ITAM

5

ITAM brings business value to the business5

Business measures of ITAM effectiveness6

Effective security starts with effective ITAM

8

Cloud, ITAM, and FinOps

10 ITAM impacts employee experience
11

Diversity of uses for asset information

12

What’s next?

12

Beyond audit – to the edge and back13 Intelligent automation
16 EMA perspectiveModern business demands
modern ITAM
IT teams can’t rely on ITAM approaches and toolsthat were designed for less complex times
IT asset data and information accuracy is foundational to excellence in the deliveryof business-driven IT service. That fact is magnified in environments that are pervasively hybrid, increasingly complex, and in a constant state of change.
Digital transformation raises modern challenges and offers new possibilities forthe management of IT assets in the data-driven digital enterprise.
Advances in AIOps, ML, analytics, and automation reshape cross-functional workflows and boundaries in enterprise-wide initiatives, efficiencies, andinnovations.
Work-from-anywhere means assets are everywhere.
The very definition of “IT asset” is expanding across clouds, hybrid workplaces,
IoT, edge, and new enterprise assets in addition to well-established disciplines.

A volatile environment of business innovation and technology enablement presents
new challenges as well as new opportunities for asset management teams. This independent research asked 250 global IT leaders to take a detailed look at the asset
management function today and how it is likely to evolve in the near future. Thiscross-IT view asks the question:

What constitutes effective modern IT asset managementin the digitally transformed enterprise?

Top-level finding:
When ITAM information is complete,accurate, and current, good things happen
to the business and to the ITAM teams
serving that business. The level of IT quality
rises and is rewarded by budget, along witha better ITAM seat at the corporate table.

Modern ITAM in the digitally transformed enterprise.1

The ITAM/IT connection
IT service quality and budget
The global panelists were asked to rate the overall quality of service that IT delivers to theirorganizations. Their ratings were:

Which statement best describes IT’s areaof responsibility?
4.8%

28%

60%

12%

Outstanding

Good

Average

30.8%

64.4%

They were also asked how their IT annual budgets changed from last year to this year:

22%
More than
20% increase58%
5-20% increase

14%
No change

6%
DecreaseThose respondents who rated the quality of IT service as outstanding also reported the highest
level of budget increase. Fully one-third of those in the outstanding category received morethan a 20% increase in budget compared to only one-tenth of those whose IT service is average.
The strong correlation between quality of IT service and budget increase makes businesssense. When high value is delivered, it is rewarded with funding. That funding, in turn,enables investments that improve service quality in a productive cycle of reciprocity.
Increasingly, IT organizations are being held accountable for the business impact of theiruse of that budget. A convincing 76% of organizations that earned in excess of a 20% budget
increase hold IT responsible for the business impact of its investments.

Budget follows IT service quality and business impact.

IT is increasingly held responsible for thebusiness impact of its investments
IT is only responsible for the performance andavailability of the service it delivers
IT works within a budget, but how they use
it is up to them

As it turns out, ITAM data accuracy has arock-solid correlation with the quality of
IT service delivered. Of the many reasonsfor this connection, the most basic is that
asset visibility is foundational to the ability
to serve, secure, control, and optimize thecomponents of IT service. Performance,
cost, and security depend on the completeness and accuracy of ITAM information.

Modern ITAM in the digitally transformed enterprise.2

The digital transformation factor
IT and the business
As amazing as it might seem, IT equality with the business it serves is far from universal. The
responses of this panel of IT leaders were very consistent with other EMA research initiatives
across IT functions when asked, “Which statement best describes the state of IT in yourorganization?”
IT is strategic - an equal partner with the business

19.2%

IT is a critical success factor - enabler of business
operations

25.2%
14.0%

The role of IT is evolving from operational to strategic
Digital transformation is elevating/changing therole of IT
IT's role differs in each part of the organization
IT is primarily operational vs. strategic

The surprisingly small 19% portion that see IT
as a strategic, equal partner with the business
today is somewhat offset by the combined
34% that see the role of IT as evolving fromoperational to strategic (14%) and digitaltransformation as elevating the role of IT(20%). As it stands today, the breakdown is:

19%

IT is a strategic/equal partner46%

IT is operational

34%

IT’s role/status is changing

20.4%
8.8%
12.4%

ITAM and IT
Digital transformation also directly impacts the organizational role of the ITAM team—forgood or for bad. The difference is in the level of ITAM maturity. Asked, “Which statement best
characterizes the effect of digital transformation initiatives on the role of ITAM in your organization?” there was almost an exact split between:
Increased reliance on IT has raised
ITAM’s role and influence

The scope and speed of innovation haveincreased the number and types of tools

One group finds digital transformation as a positive force for elevation, while the other experiences it as a negative source of added complexity.

What makes the difference? The levelof ITAM maturity was consistently thedifference between the two groups. Thoseorganizations with average ITAM maturity
experienced digital transformation as yet
another wave of changes and complications. In sharp contrast, those with highlevels of ITAM maturity were able to meetchanging business demands with agility
and effectiveness.
Modern ITAM in the digitally transformed enterprise.3

An inflection point for ITAM
This period of change is a potential inflection point for ITAM teams. It is an opportunity topromote the function and extend its influence on the basis of business value. Historically, ITAM
has not enjoyed influence or organizational status on par with its nominal peers across IT.
However, ITAM’s fortunes may be on the rise as indicated in the answers to the question:
When it comes to influence in your organization, what statement best characterizes the asset
management team compared to other IT groups like DevOps, IT service, NetOps, and FinOps?
29.6%

62.0%
4.8%
3.6%

Equal to other groups

Less influential

Not well understood

Growing in importanceAt first glance, ITAM professionals may bediscouraged that a 70% majority see ITAM
as not equal to its IT peers. The silver liningis that, while disparity definitely exists,change is well underway. For 62% of the
respondents, the role of ITAM is growing
in importance. The speed and level of thatgrowth are directly determined by the value
ITAM brings to the business—delivered in a
way that the business values.
Reporting structure both reflects andimpacts ITAM organizational status. The
31% of ITAM teams that report to the CIO or
CISO performed significantly higher in allmeasures of effectiveness than did the 22%that report to an IT manager. There was noclear correlation in the other groups: 38%
report to IT VP/Directors and 9% to the VP
of Finance.

Modern ITAM in the digitally transformed enterprise.4

ITAM brings business value to the businessBusiness measures of ITAM effectiveness
ITAM effectiveness is increasingly
measured by business metrics. This fact isgood news for ITAM teams. It means thatthe function is perceived and valued as a
critical success factor in business outcomes.
The top business metrics used to measure
ITAM success reflect top-of-mind businessconcerns in general and C-level initiatives
in particular:• Security• Cloud (migration and spend)• Employee productivity/experience

Which business metrics are used to measure the success of your ITAM programs?
Minimized security risks

46.4%

Audit performance and accuracy

45.2%

Employee productivity

41.6%

Optimization of cloud spend

38.0%

Level of automated processes/efficiencies

36.4%

Reduction in overall IT spend

36.0%

Enhanced user experience

34.8%

Migrating workloads to the cloud

34.0%

Service to non-IT stakeholders, such as HR

25.6%• Cost avoidance and reduction

Modern ITAM in the digitally transformed enterprise.5Effective security starts with effective ITAM
Cybersecurity team’s view of ITAM
The topic of security and risk is the top
concern, challenge, and priority of IT leadersacross industries and functions. It is no
surprise then that it is also top of the list for
ITAM. Security was the number-one choice
for both the top ITAM priority and ITAM use
having the highest business impact.
The reason is clear. Step one in securing
the IT estate is knowing what needs tobe protected. What exists where? Assetvisibility is the non-negotiable foundationof security and risk management. Logically,
ITAM information is the bedrock of cybersecurity efforts. However, the results fromthe field are less definitive.

How does your organization's cybersecurity team view asset information?
Asset information is critical to identifying andprotecting attack surfaces

44.4%

Asset information would be useful if it werecurrent, accurate, and readily available

44.4%

Our cybersecurity team does not regularly use
IT's asset information
There are too many sources of asset information
to be of any security use

10.0%

1.2%

More than half of the respondents statedthat asset information is not as useful totheir organization’s cybersecurity teams
as it could and should be. The difference isaccuracy.

Modern ITAM in the digitally transformed enterprise.6

Asset information of most interest to security teams
Security teams that use asset information as a critical factor in identifying and protecting
attack surfaces are found in organizations that have the highest level of ITAM maturity,
automation, and data accuracy. Those organizations with less mature ITAM functions fallshort of their potential as a source for security efforts.
Which areas of asset information are of most interest to your cybersecurity teams?
64.0%

Cloud

62.0%

Software

50.0%

SaaS
Hardware

39.6%

IaaS/PaaS

39.6%
37.2%

End-user

34.4%

IoT/OT

31.6%

Enterprise assets
APIs
Edge

The areas of asset information that mostinterest security teams are cloud, software,and SaaS. It doesn’t stop there. The spanof interest is broad and growing across theenterprise as asset types and uses multiply.

26.4%
22.8%

Modern ITAM in the digitally transformed enterprise.7

Cloud, ITAM, and FinOps
Cloud challenges and spend waste
Cloud opens a world of possibility for business innovation at speed and scale, but these gains
are not without challenge. In fact, “cloud” is the number-one challenge both to deliveringhigh-quality IT service and for ITAM team effectiveness. Note: silos are another shared
impediment to excellence.*

What are the biggest challenges toWhat are the top challenges fordelivering high-quality IT service?

ITAM teams?

1• Cloud – visibility and separate operations

1• Cloud2• Talent shortage or automation to fill the gap

2• Fast pace of change

3• Gaps in end-end visibility for a unified view

3• Budget4• Legacy systems

4• Increased audit activity and risk

5• Discovery and business context mapping5• ITAM function not highly valued

6• Siloed systems and tools*

6• Siloed tools and functions*

Cloud challenges come from many
directions, including resources that spin up
and down in minutes or linger unattended
for chargeable days. Visibility is an operational challenge and a financial one as well.
Asked, “Can you estimate how muchis being wasted on the use of public
and private cloud resources (applications, instances, infrastructure) acrossdepartments and users?” the answers
weighed heavily in the direction of significant waste. It should be noted that, once
again, ITAM maturity highly correlatedwith cloud waste under 5%. For the majorityof respondents, cloud waste was estimatedbetween 5% and 25% of overall cloud spend.
Enter FinOps.
2.4%
22.8%
32.4%

42.4%
< 5%

Between 5% and 10%

Between 10% and 25%

More than 25%

Modern ITAM in the digitally transformed enterprise.8

FinOps and ITAM
FinOps is mainstream, adding high value to most organizations. Only 11% of respondents considered their organizations to be early or just starting; for a bewildering 2%,
it is not applicable. Although FinOps is delivering much-needed control and understanding to cloud spend, the group is typically separate from ITAM teams in almost
all organizations.
In this research, 12% of the respondents noted that there is currently an active drive to
integrate FinOps with other teams. Increased collaboration between FinOps and ITAM
is the direction most organizations foresee. Asked, “What will the long-term relationship of FinOps and ITAM most likely be?” only 12% responded, “FinOps and
ITAM are fundamentally different. They will remain separate.” The 88% majority see
the two functions coming together—whether in a merged or separate organization—on the basis of specialized tools normalized for use on an enterprise-wide platform.
In the meantime, FinOps teams bring specialized expertise that can directly benefit
ITAM teams. Top answers to the question, “What challenge(s) does FinOps
address that complement ITAM?” were:

1
Software used bycloud instances
may or may not belicensed/included
as part of cloud
payments, making
it difficult totrack and manage
software licensing
compliance2
Cloud services
are not always
composed of readily
identifiable assets

3
The large numberof virtual IT assetsthat are created in
the cloud4
Software licensing
models can differ
between cloudand on-premises
environments

5
Use of multiple
clouds makes it
difficult to get acomprehensive viewof what is in use

6
Virtual cloud assets
can be created anddestroyed rapidly

Modern ITAM in the digitally transformed enterprise.9

ITAM impacts employee experience
Work-from-anywhere means assets are
everywhere, bringing ITAM challenges
from all points of the globe. It also brings aheightened opportunity for the ITAM team
to deliver business value. Employee productivity hinges on their experience withthe systems they use. In the isolation of“anywhere” workplaces, the ITSM team is
the productivity lifeline when tools andsystems behave badly.

CxOs recognize ITAM’s critical rolein enabling the service team to serve
employees. In fact, asked to name thehighest impact use of IT asset information,
the executive respondents named service
desk/ITSM as second only to security andrisk. Anyone who has ever sat helplessly
waiting for a service desk agent to exercise
his or her detective skills can appreciate thedifference that fast, accurate, and complete
asset information can make in identifying
and remedying a problem.

ITAM brings more than visibility to theemployee experience; it brings understanding. Knowledge of usage patterns,
performance, licensing, and warranty allcontribute to effective management of theend-user experience. Employees “see” theservice desk, but ITAM is a power source
for that service.

Which uses of IT asset information have the biggest impact on your organization?
59.4%

Security and risk

37.5%

Service desk/ITSM

34.4%

Incident response
Cost cutting
Business agility and innovation

25.0%
21.9%

Modern ITAM in the digitally transformed enterprise. 10

Diversity of uses for asset information
When IT asset information is accurate,complete, and accessible, it gets widely usedby many groups. When it lacks any of thesefactors, groups that have need of the information will simply establish their own asset
management systems.
The question, “Many different groups
use IT asset information. Which groups
have their own asset management tools
and processes?” produced the following
categories:

Top choice by far» ITAM (hardware and software)

Most commonly cited» IT finance» ITSM (service management)» Cloud CoE/operations

Well represented» HR (human resources)» SAM (software)» Procurement» ITOps

Not surprisingly, the information in these various asset management systems may or, more
likely, may not agree with each other. On a departmental or localized level, that disparity
can be incidental. However, these differences have definite consequences when it comes toenterprise initiatives, such as automation and cross-functional workflows.
Incomplete, siloed, conflicting, or inadequate asset information has what effectin your organization? (Choose the top two.)
21.4%

Increases costs and decreases efficiency

16.5%

Puts security and compliance at risk
Stands in the way of automation

15.1%

Disrupts cross-functional workflows

14.8%
13.7%

Complicates cloud migration
Stifles new business initiatives

9.5%

It is not an issue in my organization

9.0%

It is reasonable that specialized functions have specialized
requirements for asset information. It is not reasonable for competingsystems with conflicting data to inhibit business innovation.
In fact, only 32% of respondents view the needs of different groups to be so completely
different that they require separate systems. The clear majority, while acknowledging thelegitimacy of specialized needs, stated that collaboration using rationalized and enriched data
in a shared ITAM system/platform is ideal. Fully 80% of the research panel cited ease of integration as one of the top factors in successful platform adoption.

Modern ITAM in the digitally transformed enterprise. 11

What’s next?
Beyond audit – to the edge and backA sign of the times is the fact that a research
paper on modern ITAM can near its end
before the first mention of audit. Of course,
audit preparation and defense remain
mainstays of the ITAM function. In fact,
audits are increasing in frequency andferocity. However, digital transformationand global events have combined to break
ITAM out of the cost-cutting mold into thesphere of business partner with IT.
The reach of ITAM is extending as it focuseson business value—the business context
of asset facts. For instance, when it comesto optimizing software use and spend, thetop factor considered is now “value to thebusiness” ahead of the more traditional“software cost” and “budget.”That reach is also broadened with new asset types to consider, including edge, IoT, APIs,
containers, and non-IT assets managed by IT.
Which non-IT assets (owned by the business but managed by IT) does IT manage
in your organization?
Edge devices - computing services that are close
to the physical location of a user or device

53.6%

IoT - physical devices attached to internet,
such as sensors

60.0%

OT - operational technology, such as connectedfactory machines (industrial IoT)
Non-connected physical business/enterprise assets(facilities, back-office equipment, frontline assets, etc.)
IT doesn't manage non-IT assets

40.0%
18.0%
10.8%

As business and technology innovations take hold, thevery meaning of IT “asset” is being redefined.

Modern ITAM in the digitally transformed enterprise. 12

Intelligent automation
Asset tool consolidation
The future of ITAM is well underway in the most progressive organizations. Digital transformation was slammed into overdrive by global events, which fast-tracked automation and AI/
ML initiatives, as well as movement to the cloud. The increased reliance on IT as the fabric ofbusiness requires intelligent automation to comprehend the scope and pace of change. Silosthat hamper that automation are a luxury organizations can no longer afford.
Step one is tool consolidation. In response to the question, “Is there any effort to consolidate asset-related tools?” a resounding 86% answered “yes” and 8% said, “no, but there
should be.” Only 5% of respondents were content to simply say, “no.”
8.4%
5.2%

31.2%

Platform use plays amajor role in the battle toconsolidate asset tools
and unify asset visibility.

55.2%
Yes, we're reducing a lot of duplication and overlap
Yes, we use a platform to unify asset visibility, workflow, and automationNoNo, but there should be

Modern ITAM in the digitally transformed enterprise. 13

Platform use as best practice
Platforms that collect, normalize, and consolidate asset data minimize the impactof silos and lay down tracks for intelligent automation, including cross-domain
workflows. In this research panel, platform use dominates the tool conversation, with
71% in some stage of platform adoption. A high-performing, forward-looking 18% of
respondents plan to manage all asset types on one platform.
Which statement best describes the state of ITAM tools in your organization?
We use a platform to collect, normalize,
and consolidate asset data, so silos
are minimized

20.8%

We use multiple platforms

20.4%

We are actively planning to manage all
asset types on one platform

18.4%
15.2%

It varies by group
Legacy and siloed tools hamper crossfunctional workflows and automation

12.4%
11.2%

We are moving to a platform approach
Siloed tools are no problem for us

There is an iron-clad correlation
between platform use and qualityof IT service, budget increase,asset accuracy, degree ofautomation, and organizational
status of the ITAM team.

1.6%

Modern ITAM in the digitally transformed enterprise. 14

Automation in asset management
Automation in asset management iseverywhere that assets are found. In
response to the question, “Which assetrelated functions use AI/ML and/or
automation in your organization?”
the top three were:
1

Cloud

2

Security

3

ITSM ticketing and service

Those responses were followed in order by:• HR employee onboarding/offboarding• Configuration management

Asked, “How would you characterize the use of automation in your asset management
program?” the breakdown leaned heavily toward automation:• 43% We have a high level of process automation aided by AI/ML and a workflow platform• 27% Automation is increasingly a part of our asset management effectiveness, but it isstill new
• 30% Tools, teams, and policies limit cross-functional process automation
When it comes to value, investment in asset management automation is almost guaranteed
to be a winner. The question, “In terms of cost, what value has your investment in asset
management AI and automation returned?” found that 85% of the respondents rate
automation and AI investments as profitable ventures, with another 10% seeing at least a
breakeven proposition. A 0.4% sliver of the respondents was disappointed that the benefits
didn’t offset the costs, and 4% of the pool was too early to tell.

• Audit readiness and defense• Facilities• Discovery

0.4%
10.4%

4.0%
29.2%

High value - the savingsand benefits are atleast double the cost
Good value - it morethan paid for itself,
probably returning inexcess of 20%• Dependency mapping• CMDB update

Breakeven - it paid for
itself and then some

56.0%

Disappointing - thebenefits do not offset
the costs
Too early to tell

Regarding technology,
four out of five
respondents plan tochange their current
ITAM systems either
by adding on tothem or completely
replacing them.

Modern ITAM in the digitally transformed enterprise. 15

EMA perspective
This research was based on the premise that modern IT teams
can’t rely on ITAM approaches and tools that were designed for lesscomplex times. As it turns out, they don’t: four out of five organizations actively plan to change their ITAM systems in the next 12-18
months. Most have already upgraded their systems and made organizational changes as well.
Effective asset management today is a business-aligned functionthat executes intelligently automated processes on enterprise-wide
platforms. A unified platform is the approach of choice for businessagility, automation initiatives, and the ongoing ability to adapt tochanging requirements.
Those changing requirements are both technology-based and organizational as the role of ITAM expands to include new asset types
and new uses of asset information. Security is one of those new usesin the sense that accurate ITAM data plays a critical role in an organization’s ability to identify and protect itself. That data is now
fundamental to every aspect of security and IT operational health.

Asset visibility is table stakes for IT. The next step is complete
understanding of the entire IT estate. Gaining full control of the IT
environment means knowing everything about IT assets at all times,
including location, usage, current status, performance, licensing,
and warranty.
Understanding the business context of IT assets drives modern
ITAM to deliver new value to more functions across the enterprise.
More uses by more stakeholders translates into higher budgets forautomation and headcount, as well as an elevated role for ITAM
teams in the corporate pecking order.
The fortunes of ITAM teams will continue to rise with that of IT
in the digitally transformed enterprise if—and only if—the ITAM
policies, processes, and technologies deliver information that isaccurate, complete, current, and accessible. This level of asset information gets used, valued, and funded. It also requires constantinvestment in people and technologies to automate and execute
end-end lifecycle management of all assets.
There are many good options available for ITAM teams; standing still
is not one of them.

Modern ITAM in the digitally transformed enterprise. 16About Enterprise Management Associates, Inc.
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