Group computers the way that makes sense for you. Computers can belong to any number of collections.
There are two types of collections; Dynamic and Static. Dynamic collections are populated automatically when a computer matches the criteria that you define. Static collections are populated manually by dragging the computer object into the collection.
Examples of Dynamic Collections:
All Windows 10 computers that have a certain GPO applied
All computers with Microsoft Office 2010
All computers with more than 2GB RAM
All computers that DO NOT have your most recent version of Anti-Virus
Here is a custom collection. We want to know which Windows 10 machines with a version number older than 1909.
We can see that we have two Windows 10 machines that could probably use an update.