Lessons Learned About Services

Managing Service Companies Using IT

Management of companies many years ago was very manual. 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.

Companies are usually classified into two categories. The first category comprises of companies that trade in solid goods. Such companies trade in items such as cars and industrial goods that can actually be felt. The second category consists of companies that are service related. Service is the main commodity of sale for such companies.

There is a small difference when it comes to the management of service companies in comparison to companies that deal with tangible goods. One can see the difference more clearly when information technology is used in management of the companies. 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. 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. 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.

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. Storage of service information can be tricky and that is why it must be stored in computerized systems. Goods could serve as storage of evidence and information when it comes to companies trading in tangible goods.

Software for management of service companies must also have features that enable networking. Services do require regular and orderly tracking of the steps being followed and transmitting it accordingly. For instance, an audit firm would naturally be divided into departments that handle the different levels of auditing. 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.

All the steps to be followed in ensuring flawless running of the different steps of a service company can be well managed using software. The software serves to ensure that efficiency is at its highest level. 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.