Lessons Learned About Services

Managing Service Companies Using IT

The manual system of management was for a very long time in use in the management of companies. Such manual systems were only used before the discovery of technology. Most often than not the manual system was plagued by many cases of inefficiency. Effects were felt immediately after companies took up the use of technology in management of their affairs.

There are two broad groups 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. Secondly there are service companies that offer services only to their clients. 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. The use of an audit firm which is purely a service company would serve to create more clarity in this matter.

The core business of auditing service is to audit other organizations. The fact that this does not require transfer of solid goods means that the IT system being used by the company needs to only track the service transaction as opposed to tracking solid goods. 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.

The software used by service companies allows for running of several operations. First of all, storage of data is of paramount importance for such service companies. 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.

The second type of software used by IT managed service companies is the networking software. When in the service industry, it is important to have a system that keeps track of different steps of transactions. 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. The other department could deal with taxation and remuneration. Finally the entire audit process will be concluded.

It is possible to use one software that would manage the steps mentioned above. The software serves to ensure that efficiency is at its highest level. Research has it that management of service companies using Information Technology platforms actually translate to a 50% increase in efficiency. There is then an obvious positive correlation between this efficiency and the eventual financial performance of the company.

Advanced reading: next