Businesses – Getting Started & Next Steps

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. 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 group is that of companies that trade in services. The main item of trade for such companies is service.

The management of service companies differs slightly with that of other types of companies. One can see the difference more clearly when information technology is used in management of the companies. To understand this difference, let us understand the running of a service company such as an audit firm.

Audit firms carry out the service of auditing for their clients. In such a situation, technology only aids in management of the entire process of auditing since there are not tangible goods to be managed. Information Technology mainly works by the use of software. The software must be designed in such a way that it facilitates the work of the specific company that requires it.

The software used by service companies allows for running of several operations. 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. This is not the case for companies dealing with tangible goods since sometimes the goods could serve as records of transactions.

Networking is the other key feature of software used in running service companies the world over. Services do require regular and orderly tracking of the steps being followed and transmitting it accordingly. For example, several steps must be followed precisely during an audit process. One department could start with financial analysis of the balance sheet of the client. This could be followed with analysis of taxation and remuneration matters. This would culminate in the final audit of the company.

It is possible to use one software that would manage the steps mentioned above. Efficiency is maintained by the use of such software. Researchers posit that the use of Information technology could boost efficiency of the company by over 50%. There is then an obvious positive correlation between this efficiency and the eventual financial performance of the company.