Technology Tips for The Average Joe

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.

There are two categories of companies in the world. 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. The main item of trade for such companies is service.

The management of service companies is slightly different to that of companies that deal with tangible goods. The difference is more visible when it comes to employing information technology within the management structures. 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. Software is the main tool used for management of companies on the information technology platform. The type of work being done by a company determines the type of software to be employed.

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. Storage of service information can be tricky and that is why it must be stored in computerized systems. 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. Services sometimes require step by step organization and transmission. For instance, an audit firm would naturally be divided into departments that handle the different levels of auditing. In many situations, audit firms start with the in-depth analysis of financial statements and balance sheets of the company under audit. The other department could deal with taxation and remuneration. 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. 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%. The efficiency in turn translates into financial growth of the company in the short and long run.

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