NetLife Asset Value Management
Capex and cost efficiency matters more than ever now.
These numbers matter for executives, finance teams and shareholders but originate in network planning and operations day to day workflow. Free cash flow metrics are the core driver of share price, and CapEx is a key driver of that number. Network OpEx and CapEx now feature prominently in company investment analysis, these are controllable costs which require attention, focus and resources. CTOs, CFOs and their teams now need to stay informed with real time data and intelligent analysis on asset performance to make smarter decisions for the future, today. Managing asset value challenges and driving CapEx efficiency drives shareholder value tomorrow so it needs to be given a high priority now and until stability is attained
Network Asset value tracking can be often overlooked until it becomes a problem for Supply Chain and Finance teams via financial statements. The most prominent financial issues arise at the ‘end of life’ stage when network equipment is de-installed and finance teams face the difficult task of securing approval for asset write-downs or ‘accelerated depreciation’ events which often require board approval. While these events are a footnote in the financials, they are also a tale of events which are no longer actionable today
Network Asset value tracking can be often overlooked until it becomes a problem for Supply Chain and Finance teams via financial statements. The most prominent financial issues arise at the ‘end of life’ stage when network equipment is de-installed and finance teams face the difficult task of securing approval for asset write-downs or ‘accelerated depreciation’ events which often require board approval. While these events are a footnote in the financials, they are also a tale of events which are no longer actionable today.
The future is bright. And the financial stories of today can be changed now, to impact the future
NetLife SaaS maintains a real time, accurate, intelligent view of assets and their technical use, is central to network planning and maintenance decisions driving shareholder value
Asset related write downs are sometimes explained to investors as ‘one time’ events but are in fact a complex ongoing challenge for network operators in a constantly evolving technology landscape. The root cause, solution design and delivery are complex and connected to the corporate culture and working practices in each operator, with a common root cause. In addition, the useful lifecycle of technology is becoming shorter, and life of as asset on the balance frequently doesn’t match its useful life in the network. A range of solutions exist in addressing this, involving technology re-use planning, extending the useful life of assets and driving network cost efficiency, these outcomes remain the purpose of NetLife SaaS and our sister company, GSM Systems
The ‘birth’ of an asset takes place before importation and warehouse receiving, and the root cause of high CapEx ratios, or idle assets can originate as early as the purchase requisition stage. This challenge requires a planned, program based approach with a multi-year vision for financial, environmental and technical sustainability. NetLife SaaS is an essential tool in the journey from “Cradle to Grave” of any asset. Capturing asset value and technical attributes at the ‘birth’ stage is made more complex due to contract conditions, discounts, bundles and site-based BoM procurement
The ‘birth’ of an asset takes place before importation and warehouse receiving, and the root cause of high capex ratios, or idle assets can originate as early as the purchase requisition stage. This challenge requires a planned, program based approach with a multi-year vision for financial, environmental and technical sustainability. NetLife SaaS is an essential tool in the journey from Cradle to Grave of any asset. Capturing asset value and technical attributes at the ‘birth’ stage is made more complex due to contract conditions, discounts, bundles and site-based BoM procurement.