Technology-Based Management of Service Companies
Management of companies many years ago was very manual. This was the era that was devoid of technological platforms for doing so. Most often than not the manual system was plagued by many cases of inefficiency. The change was instant after the discovery of information technology.
There are two broad groups of companies in the world. First there are companies that deal with tangible goods. These companies actually manufacture or trade in goods such as cars, industrial goods and others. The second category consists of companies that are service related. These companies actually sell services to their clients.
The management of service companies is slightly different to that of companies that deal with tangible goods. The difference is more visible when it comes to employing information technology within the management structures. To understand this difference, let us understand the running of a service company such as an audit firm.
The core business of auditing service is to audit other organizations. Since auditing does not involve transfer of goods, the technology based system used to manage it is only responsible for tracking the flow of services as required by the client. To properly use technology in management, companies use computer software. The software must be designed in such a way that it facilitates the work of the specific company that requires it.
IT managed service companies usually use software that allow for different operations on a technology based platform. Among the most important functions of software used by service companies is data storage. This is the only sure way of storing information that is related to services rendered and not transaction of goods. Goods could serve as storage of evidence and information when it comes to companies trading in tangible goods.
Networking is the other key feature of software used in running service companies the world over. Services sometimes require step by step organization and transmission. For instance, an audit firm would naturally be divided into departments that handle the different levels of auditing. One department could start with financial analysis of the balance sheet of the client. Remuneration and taxation could be undertaken next by another department. This would culminate in the final audit of the company.
Software can be used to manage the above named processes. One thing that is well achieved by using technology such as in the use of software is efficiency. It has been established through research that companies that employ information technology in their management usually achieve efficiency that runs to the tune of 50%. The efficiency in turn translates into financial growth of the company in the short and long run.
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