Everybody knows you have to have systems in place to be successful. But what kind of systems do you have? All businesses need one thing in common to start up and run smoothly: systems. Having the right systems in place makes your business run with maximum efficiency.
Systems are an organizational structure that allows you to create processes for how your business functions, whether it’s running a smooth day-to-day operation or breaking down big goals into manageable tasks. When you take the time to map out your systems, things become easier and help your team be more equipped with making decisions. The result is more streamlined action that brings about continuous improvement.
Why do you need to implement a business system?
A successful business system connects operational strategy, people, and tools. It’s important to implement it with your business for the following reasons:
- Employee Engagement: The right systems and tools will allow your workers to excel in their role and feel like they’re positively affecting the team and impacting their work.
- Consistent Results: A system gives you a set of tools and principles to build a repeatable solution. It provides a pattern for managing things with efficient results.
- Meeting Expectations: A systematic approach will allow your organization to solve problems and meet people’s needs. It can also help you know exactly where to put your energy to provide the best service to your customers.
Here are the key functional areas of a business.
Strategic Management
Strategists analyze your competition and market to give you a clear path to business success. Strategic management systems help you to identify the direction of your business. They will highlight your strengths and identify ways to make them even stronger. Its ideas are something you must follow to retain your competitive advantage in the market. It requires clarity of vision, consistent implementation, and alignment with the goals of the business.
Marketing/Sales
Marketing is an integral part of corporate strategy. The marketing department blends science and art to design strategies for getting customers to buy the company’s products and services. It also handles everything else related to promotion and building brand loyalty that will attract more customers.
As the gatekeeper to consumers, marketers must do everything in their power to capture consumers’ attention and motivate them to purchase products or services. This department is also responsible for the company’s Internet presence, such as its blogs, social media platforms, company website, and online campaigns and advertisements. They use business tools such as Search Engine Optimization (SEO), video and event marketing, Customer Relationship Management (CRM), and Lead Capture and Conversion.
Sales functions can vary depending on the nature of your business and the company size. It works to exploit the leads made by the marketing department. It is also considered as the engine that powers the organization.
Operations
Operations, also known as the System, Client Fulfillment, or Production, is the core function of the business. It plans, directs, coordinates, and controls activities that transform inputs into outputs (products). It is an essential component and the core of day-to-day operations, providing goods and services at a high level.
There are several terminologies of this department, depending on your company type. For instance, if you’re a digital agency business, the ones who are managing client projects will be the account managers. Other examples of departments under operations are Product Delivery, Customer Service, Project and Task Management, and Quality Assurance.
Research and Development
The goals of this system are to create better designs, new products, and cost-saving methods to update existing lines for current market demand. They also serve the broader needs of the company to prepare for future trends. They are composed of thought-leaders, subject-matter experts, scientists, researchers, and industry analysts.
Information
It is the system in charge of providing needed information that a company uses to manage itself efficiently. This system typically uses technology and computer systems, but it can also be as simple as using pen and paper. The primary components of a business information system are data, hardware, software, and procedures like design and documentation.
Housed in the Information System is the Information and Technology (IT) responsible for providing internal technology tools to the company. Several organizations have an IT department since they oversee installations and maintenance of network systems and are the first and last line of defense with your company’s digital security. Business networks are vulnerable to cyberattacks without updated software and security networks, just like WannaCry’s 2017 ransomware attack due to not updating their Windows system.
Under IT, there is what we call an IT asset management that monitors assets’ (hardware and software) moving in and out of the company. Other assets include software licenses that help support computer software. In the past, the IT department was in charge of the assets within their domain, but it can be difficult to manage organizations’ equipment. With ServiceNow software asset management, organizations can define every asset and reduce failures and maintenance costs.
Finance
It is also known as the cash flow system and helps businesses control their money, ensuring that they can pay their bills on time and make business decisions confidently.
The finance function involves planning for, obtaining, and managing funds for your business. Finance also helps you figure out whether it’s more cost-effective to get a short-term loan or go with equity financing, and if equity financing is the best choice, whether you should get it from one of the big banks or via the stock market.
Accounting is a crucial part of the finance area. Known for their attention to detail, accountants prepare internal audits, help track cash flow, and handle everything from payroll to taxes.
Human Resources/People Management
Getting the right people is the first step to operating your business, but training them to perform up to expectations can be a crucial task. The people management system ensures that the staff is well-trained for their roles. There are solutions designed to improve recruitment, performance management, and training.
Systems are what make companies run. Without them, you can’t survive. These systems are proven to make businesses grow, flow, endure and sell. When implemented effectively, the systems become very tangible assets for a business.
