Managing Service Companies Using IT
The manual system of management was for a very long time in use in the management of companies. This was the era that was devoid of technological platforms for doing so. The manual system occasioned inefficiency and slow growth of companies financially. This however changed after information technology was discovered and started being employed in the running of companies.
There are two categories of companies in the world. The first category comprises of companies that trade in solid 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. The main item of trade for such companies is service.
The management of service companies differs slightly with that of other types of companies. During the use of information technology is when the difference between the management of the two types of companies comes to the fore. In order to fathom the difference with clarity, let us use the case of an audit firm as a case example.
Auditing is the main area of business for all audit firms in the world. In such a situation, technology only aids in management of the entire process of auditing since there are not tangible goods to be managed. To properly use technology in management, companies use computer software. This means that the software to be employed must conform to the type of company being managed.
IT managed service companies usually use software that allow for different operations on a technology based platform. Data storage is one among the key functions carried out by computer software for service industry. 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.
The second type of software used by IT managed service companies is the networking software. Services do require regular and orderly tracking of the steps being followed and transmitting it accordingly. Case example are the different steps that must be followed during auditing by an audit firm. Analysis of financial records of the company under audit is the first step in most cases. Remuneration and taxation could be undertaken next by another department. Lastly, the process would end with final general auditing.
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. Research has it that management of service companies using Information Technology platforms actually translate to a 50% increase in efficiency. With efficiency it is clear that the company would definitely end up performing better either immediately or in subsequent financial years.