Comparing asset management and facilities management

In Malaysia, organizations often treat asset management and facilities management as separate functions. However, with the rise of smart building technologies, IoT-based monitoring, and digital twin solutions, there’s a growing need for a more integrated approach. Globally, some organizations have successfully integrated these functions, leading to greater efficiency, cost savings, and sustainability in property and asset management.​

Forward-thinking companies are now adopting technologies to bridge the gap between these disciplines. This shift will lead to greater efficiency, cost savings, and sustainability in property and asset management. We discussed the comparison between facilities management and property management in this article.

Defining Asset Management and Facilities Management

Asset management and facility management are two closely related fields that are often mistaken for each other. The comparison of asset management and facilities management is rarely happened in Malaysia due to a lot of reasons. However, they have distinct roles and objectives. Both fields are often interwoven, but they are distinct disciplines with specific goals and responsibilities.

Asset Management

Involves the planning, organisation, and oversight of an organisation’s assets, which may include buildings, equipment, or intellectual property. Its primary goal is to ensure that these assets are utilised efficiently, maintained properly, and safeguarded effectively. (Source: IWFM & IFMA)

Facilities Management

Focuses on managing the organisation’s physical environment. This includes tasks like cleaning, maintenance, security, and energy management. The goal is to create a safe, comfortable, and productive space for employees and customers that supports the organisation’s core business. (Source: IWFM & IFMA)

Key Differences Between Asset and Facility management

Here is a table that summarises the key differences between both fields:

In practice, these disciplines often overlap. For example, a facility manager might handle asset maintenance, which falls under asset management.

The Benefits of Collaboration

By working together, both teams can:

• Improve Asset Performance: Identify potential issues early, reduce downtime, and extend asset lifespan.
• Optimise Resource Allocation: Allocate resources effectively to maximise asset value and operational efficiency.
• Enhance Decision-Making: Leverage data-driven insights to make informed decisions about asset investments and maintenance strategies.
• Reduce Costs: Identify cost-saving opportunities through efficient asset management and facility operations.

In some other organisation setup, both might be a centralised role.

Examples of Collaboration Between Asset and Facility Management

• An asset manager can analyse data from a facility management system to identify assets at risk of failure. This insight helps prioritise maintenance and repairs, reducing downtime.
• A facility manager can leverage information from an asset management system to optimise energy use, implementing cost-saving and sustainability measures.

By working together, asset and facilities management can enhance asset value and improve the performance of the physical environment. Hence, facilities managers or asset managers need to broaden their knowledge base. IFMA acknowledged that asset management is a subset of skills for facility managers.

In Malaysia’s context, it is, however, rare to see an intertwined of both roles in an organisation.

Conclusion

By understanding the distinct roles of these two fields, organisations can optimise their asset portfolios and create more efficient and sustainable facilities. For further insights into asset management and facility management best practices, consider exploring resources from organisations like the International Facility Management Association (IFMA).