Lifecycle Management must now focus on Asset Disposition. ITAD vendors manage data and environmental risks for surplus or obsolete assets.
According to the IBM and Ponemon Institute’s Cost of Data Breach 2016 Study, the average total cost of a data breach is close to $4 million. That is approximately $158 for every lost or stolen record. HIPAA Security Policy mandates Mobile Devices (Phones) must be wiped clean of data before being sold or returned to the vendor. In highly regulated industries like finance or healthcare, the cost of a breach can be as much as $355 per record, because of fines and higher than average rate of lost business and customers.
Many organizations focus on programs to address security risks and data breaches protecting and monitoring IT devices that are in use. Now it is time to consider another major threat. Inventory visibility and accuracy, risk mitigation and compliance are just as relevant when the asset leaves the end user’s environment. Too often there is little or no management for those assets after they are removed from service.
Lifecycle Management is now being redefined to broaden the focus beyond procurement, sourcing and ongoing management. A new critical step in lifecycle management now focuses on Asset Disposition. Disposition refers to the proper removal of a company’s surplus or obsolete assets.
With IT assets, this often means working with a vetted, certified ITAD provider who specializes in those services. A competent ITAD vendor will manage data and environmental risk, helping organizations to avoid penalties and remediation costs. ITAD vendors will refurbish and remarket assets, which lowers the total cost of ownership (TCO) and maximizes the ROI. They will provide detailed, serialized asset tracking for inventory control and transparency. They may also be able to offer repair of damaged IT assets and redeployment, minimizing future capital expenditures. Lastly, an ITAD vendor should have the ability to collect data throughout their processes that can be leveraged for integrations, reporting and business intelligence.
The Cost of Data Breach Study reports that between 2013 and 2016, the average total cost of a data breach increased 5.4% and the per capita or record cost increased 2.9%. The average size of the data breach increased 3.2 percent. Clearly these megatrends show us that in the future, risk mitigation and environmental compliance will become increasingly important.
Learn more about Dynamic ITAD, its disposition services and partner opportunities at www.dynamicitad.com