What's an Asset? Let's be clear on the definition.

Words are important.

In an asset intensive industry such as power generation, mining, transportation, utilities, or pulp&paper, the answer to this question seems obvious. But you'd be surprised how many times I'm questioned on what the term "asset" really means.

Financial? At the end of the day, this answer is correct. Physical assets in an asset intensive organization are the source of revenue for the product or service that the physical assets produce. It's the end-goal.

Practically speaking, assets as I refer to them are infrastructure (bridges, roads, sidewalks), facilities (a university, city, hospital, or building), plants (water-waste water plants, power generation plants, smelters, vessels), or equipment (a pulp or paper line). They are the heart-beat of the organization that depends on these assets to produce the product or service that are the source of revenue. Reliable assets are a must.