IT Asset Tagging: How to Tag Software And Hardware Assets

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IT asset tagging is the practice of labeling IT assets with unique identifiers to track and manage them throughout their lifecycle. In IT Asset Management (ITAM), IT asset tagging is essential for improving visibility, security, and compliance. Without it, keeping track of hardware, software and other IT assets can quickly become chaotic.

In this article, we’ll explore how to tag IT assets effectively and why it’s a game-changer for IT Management. Let's dive in. 

What is IT asset tagging?

IT asset tagging is the process of labeling IT assets with unique identifiers that store essential details like their type, owner, status, location, and usage history. These tags can be physical or digital, making it easy to track and manage assets throughout their lifecycle.

What is an IT tag?

It may seem obvious, but it’s important to establish a clear definition to avoid confusion. An IT tag is a label—either physical or digital—that uniquely identifies an IT asset and provides essential information about it. They are specific to technology-related assets, such as laptops, servers, or software licenses, and are a subset of asset tags.

Types of IT asset tags

IT asset tags come in two types: physical and digital. Physical tags, like serial numbers, barcodes, or QR codes, attach directly to assets for easy identification. A physical asset tag example would be a technician scanning a QR code on a laptop to instantly access its warranty, maintenance history, and user assignment.

Digital tags exist within ITAM systems, categorizing assets based on conditions to improve tracking and maintenance. A digital asset tag example would be an ITAM system auto-tagging devices in a branch office and alerting IT when updates are due, ensuring compliance and security.

How to perform IT asset tagging

IT asset tagging is a process. This means that to do it correctly, you need to follow a series of steps. While each step follows a structured framework, they are not rigid—you can adapt the process to fit your goals and resources.

Here’s how to perform IT asset tagging:

  1. Define tagging standards – Establish what information each tag should include, such as asset type, serial number, ownership details, and tracking codes.

  2. Select the right tag type – Choose between physical or digital tags based on the asset type and your ITAM needs.

  3. Apply the tags – Attach physical labels to hardware or assign digital tags within your ITAM system.

  4. Integrate with ITAM software – Ensure that tags link to your ITAM tool for regular tracking and Asset Management.

  5. Regularly update and audit tags – Conduct routine checks to verify tag accuracy, update asset information, and retire tags for decommissioned assets.

How to do physical IT asset tagging?

Physical tagging of hardware assets is a central part of Hardware Inventory Management. It involves affixing identification labels to individual hardware assets. Here's a guide on how to do it with InvGate Asset Management.

To start, let’s see the different types of tags that can be used for hardware asset tagging:

  • QR codes - Two-dimensional barcodes that can store large amounts of information. They can be easily scanned using smartphones or specialized scanning devices, allowing for quick access to asset details. 

  • Barcodes - Vertical lines of varying widths that represent data, typically encoded with numbers. You need barcode scanners to read and decode the information.

  • RFID tags - Radio Frequency Identification (RFID) tags use radio waves to transmit data wirelessly. They are commonly used for asset tracking in large-scale environments, as RFID readers can capture information from multiple tags simultaneously.

When tagging hardware assets, include name or inventory name — which should contain the asset type and a distinctive number, the code tag, and any other pertinent details that help identify and track the asset.

Though physical tags are usually created with third-party tools, InvGate Asset Management allows you to generate QR codes directly from your instance. This way, you can access the assets’ profiles as soon as you scan them, giving you the ability to perform various actions such as changing its state, updating its data, or creating a related ticket through the InvGate Service Management integration.

InvGate Asset Management allows you to generate QR codes directly from your instance to tag hardware assets.

How to do digital IT asset tagging?

Digital IT asset tagging is used to manage IT assets by attaching digital tags (or metadata) to them within IT Asset Management software.

The most common ones you can use on InvGate Asset Management are:

  1. Categories - Assets can be tagged based on the classifications set by the organization. They are usually static categories like productivity software, design tools, communication applications, location, or the age of the hardware. Categorizing software assets helps to organize and group them for better visibility and management.

  2. Licensing information -Tags can be used to indicate the licensing status, such as whether they are licensed, unlicensed, trial versions, or expired. You can even automate notifications to get an alert when a license is about to expire. This is especially useful for License Management.

  3. Usage or department - Tagging software assets based on their usage or department can be helpful for tracking software allocation within an organization. It allows for better resource allocation and cost optimization.

  4. Version or release - Tags can also be used to indicate the specific version or release of software assets. This is particularly useful for Software Management, including managing updates and patches.

Even though digital tags are mainly related to software assets, that doesn’t mean that you can’t also use them on hardware. In fact, InvGate Asset Management allows both options. In addition, InvGate Asset Management offers you the possibility to turn any tag into a smart tag so that, once you design its conditions, it is automatically assigned to the CIs that meet them, providing real-time asset visibility.

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4 benefits of asset tagging

Implementing asset tagging as part of your ITAM strategy can offer you several benefits:

  1. Better organization - Quick and efficient asset tracking minimizes the risk of lost or misplaced assets, ensuring better control over the whole IT infrastructure.

  2. More accurate information - Automating digital asset identification and tracking streamlines tasks such as Inventory Management, audits, and maintenance.

  3. Complete IT Asset Lifecycle Management - Tagging assets with relevant information allows organizations to track asset data through acquisition, deployment, utilization, maintenance, and retirement. This enables better decision-making regarding asset replacement, upgrades, and maintenance schedules and allows you to apply protocols in different stages of its lifecycle.

  4. Enhanced visibility and reporting - With improved visibility, you can generate accurate reports on asset utilization, maintenance history, and compliance. 

Remember that asset tagging can be done physically or in digital environments. In the following sections, we will delve deeper into the specific considerations and best practices for tagging with each method.

InvGate Asset Management as your IT asset tagging system

View of InvGate Asset Management's smart tag configuration to enable ITAM automation.

InvGate Asset Management simplifies IT asset tagging by providing built-in tools for both physical and digital tagging. For physical assets, it allows you to generate QR codes directly, ensuring seamless hardware identification and management. Scanning these codes grants instant access to asset profiles, enabling updates, status changes, and even ticket creation through InvGate Service Management.

For digital tagging, InvGate Asset Management offers custom smart tags that automatically categorize assets based on predefined conditions. Once set up, they automatically update as conditions change, providing accurate visibility without manual intervention. 

With smart tags, IT teams can:

  • Segment assets by categories like "missing antivirus" or "outdated software" to quickly identify risks.
  • Streamline queries by instantly locating high-risk assets and prioritizing mitigation.
  • Customize parameters to ensure tagging reflects the latest asset conditions.

Setting up smart tags with InvGate Asset Managament

Setting up smart tags is simple: navigate to Settings >> General >> Tags, create a new tag with a name, description, and color, and enable the smart tag option. Define the conditions that will automatically trigger the tag, and InvGate Asset Management will handle the rest.

Once configured, you can filter assets by tag to focus on critical areas, improving both security and efficiency.

To sum up

Accurate IT asset tagging is a way to simplify and organize asset tracking, making sure everything is correctly identified and easy to track down and access. It works as a starting point in your ITAM processes to manage your assets through its complete lifecycle.

You can do so by using both physical and digital tags, according to what assets and information you need to keep an eye on.

To start implementing IT asset tagging, ask for InvGate Asset Management’s 30-day free trial! And don’t worry about losing any data, as you can later turn it into your working instance!

Frequently Asked Questions

What is an example of asset tagging?

An example of asset tagging is affixing a barcode label to a computer or attaching an RFID tag to a server for easy identification and tracking.

Which assets should be tagged?

Generally, both software and hardware assets should be tagged. This includes computers, servers, mobile devices, software applications, and other IT infrastructure components.

What should an IT asset register contain?

An IT asset register should contain essential information about each asset, such as asset name, unique identifier, description, owner, location, purchase date, warranty details, and any other relevant license or maintenance information.

How do you asset tag a computer?

To asset tag a computer, you can affix a physical label or sticker containing a barcode or QR code to the device. This label should include essential information like the asset name, serial number, and any other relevant details.

What is the tagging process?

The tagging process involves assigning unique identification labels, such as barcodes, QR codes, or RFID tags, to assets. These tags are associated with relevant asset information in an Asset Management system, allowing for easy identification, tracking, and management of the assets.