Technology-Based Management of Service Companies
Companies have in the past being managed manually. This was the era that was devoid of technological platforms for doing so. Inefficiency was the order of the day during the era of manual systems of managing companies. The change was instant after the discovery of information technology.
There are two broad groups of companies in the world. First there are those companies whose core business is to deal with goods or tangible commodities. Such companies trade in items such as cars and industrial goods that can actually be felt. Secondly there are service companies that offer services only to their clients. 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. 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.
The core business of auditing service is to audit other organizations. 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. The software must be designed in such a way that it facilitates the work of the specific company that requires it.
Different operations of the service industry can be done by the use of specific software designed for the task. Data storage is one among the key functions carried out by computer software for service industry. Service information can only be stored using data on an appropriate platform. The case of companies dealing in goods could be different since one can use the goods as evidence of transaction.
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. In many situations, audit firms start with the in-depth analysis of financial statements and balance sheets of the company under audit. Remuneration and taxation could be undertaken next by another department. This would culminate in the final audit of the company.
It is possible to use one software that would manage the steps mentioned above. One thing that is well achieved by using technology such as in the use of software is efficiency. Researchers posit that the use of Information technology could boost efficiency of the company by over 50%. The efficiency in turn translates into financial growth of the company in the short and long run.