In ServiceNow HAM, what does asset utilization refer to?

Asset utilization in the context of ServiceNow Hardware Asset Management (HAM) specifically pertains to the effectiveness of hardware assets in use. This concept focuses on how well the organization is leveraging its hardware assets to meet operational needs. High utilization indicates that the assets are being effectively used to support business processes, contributing positively to productivity and efficiency.

By measuring asset utilization, organizations can identify underutilized or overutilized resources, allowing for informed decisions regarding asset investments, reallocations, or retirements. This understanding is critical in optimizing asset management strategies and ensuring that the organization is not maintaining excess inventory or facing shortages in critical hardware resources.

Other options, while relevant to asset management, do not accurately represent the concept of asset utilization. The frequency of hardware asset purchases relates to procurement strategies rather than how effectively assets are used. The total number of assets owned focuses on inventory tracking rather than utilization, and the duration of each hardware asset's lifecycle pertains more to asset planning and management rather than how well those assets are currently being used in daily operations.