Business management tools

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Business management tools are all the systems, applications, controls, calculating solutions, methodologies, etc. used by organizations to be able to cope with changing markets, ensure a competitive position in them and improve business performance. [1] [2]

Contents

Overview

There are tools related to each organization's department which can be classified for each aspect of management. [3] For example: planning tools, process tools, records tools, employee related tools, decision making tools, control tools, etc. A classification by function would consider these general aspects:

Nowadays, management tools have evolved dramatically in the last decade thanks to fast technology advances, so fast that it is difficult to select the best business tools for any situation in any company. [4] This is caused by a never-ending fight for lower costs and increase sales, the willingness for understanding the customers' needs, and the fight for delivering the products that meet their need in the way they require.

Under this scenario, managers should take a strategic attitude to business management tools instead of going for the latest tool. Usually, managers rely on the tools without any adaptation which leads to an unstable situation. Business management tools should be selected carefully, and then adapted to the organization needs and not the other way around. [5]

Most used

In 2013, a survey conducted by Bain & Company [5] showed how business tools are used around the globe. These tools reflect how their outcomes contribute to each region's needs, considering the downfall and companies' market situation. The top ten includes:

Software application for businesses

Software or collection of computer programs used by business users to carry out various business operations is referred to as business software (or a business application). These business applications are used to boost output, gauge output, and carry out various other company tasks precisely. [6]

It started with management information systems and extended into enterprise resource planning systems. Then customer relationship management was added to the solution and finally the whole package moved into the cloud business management space. [7]

Although there is an actual correlation between IT efforts and the organizations' performance, [8] two elements are key to add value to the sum; these are the implementation's effectiveness and the proper tools selections and adaptation process. [9]

Tools for SMEs

The tools focused on SMEs are important because they provide ways to save money and make the entrepreneur's businesses more profitable. [10] These tools have different functionalities such as project management, tracking finances, managing projects, sharing documents, connecting and networking with people, managing social media, and carrying out marketing, [11] as well as everyday uses such as word processing or spreadsheets.[ citation needed ] Their main objective is to help entrepreneurs perform everyday duties in simple, low-cost ways. [12] The downside to take in consideration is that some of the apps may be unreliable or will require organizations to advertise them. [13]

Related Research Articles

Customer relationship management (CRM) is a process in which a business or another organization administers its interactions with customers, typically using data analysis to study large amounts of information.

<span class="mw-page-title-main">Enterprise resource planning</span> Corporate task of optimizing the existing resources in a company

Enterprise resource planning (ERP) is the integrated management of main business processes, often in real time and mediated by software and technology. ERP is usually referred to as a category of business management software—typically a suite of integrated applications—that an organization can use to collect, store, manage and interpret data from many business activities. ERP systems can be local-based or cloud-based. Cloud-based applications have grown in recent years due to the increased efficiencies arising from information being readily available from any location with Internet access.

<span class="mw-page-title-main">Intranet</span> Network of private resources in an organization

An intranet is a computer network for sharing information, easier communication, collaboration tools, operational systems, and other computing services within an organization, usually to the exclusion of access by outsiders. The term is used in contrast to public networks, such as the Internet, but uses the same technology based on the Internet protocol suite.

Business intelligence (BI) consists of strategies, methodologies, and technologies used by enterprises for data analysis and management of business information. Common functions of BI technologies include reporting, online analytical processing, analytics, dashboard development, data mining, process mining, complex event processing, business performance management, benchmarking, text mining, predictive analytics, and prescriptive analytics.

New product development (NPD) or product development in business and engineering covers the complete process of launching a new product to the market. Product development also includes the renewal of an existing product and introducing a product into a new market. A central aspect of NPD is product design. New product development is the realization of a market opportunity by making a product available for purchase. The products developed by an commercial organisation provide the means to generate income.

A management information system (MIS) is an information system used for decision-making, and for the coordination, control, analysis, and visualization of information in an organization. The study of the management information systems involves people, processes and technology in an organizational context. In other words, it serves, as the functions of controlling, planning, decision making in the management level setting.

An information system (IS) is a formal, sociotechnical, organizational system designed to collect, process, store, and distribute information. From a sociotechnical perspective, information systems comprise four components: task, people, structure, and technology. Information systems can be defined as an integration of components for collection, storage and processing of data, comprising digital products that process data to facilitate decision making and the data being used to provide information and contribute to knowledge.

A balanced scorecard is a strategy performance management tool – a well-structured report used to keep track of the execution of activities by staff and to monitor the consequences arising from these actions.

In business administration, absorptive capacity is defined as a firm's ability to recognize the value of new information, assimilate it, and apply it to commercial ends. It is studied on individual, group, firm, and national levels. Antecedents are prior-based knowledge and communication. Studies involve a firm's innovation performance, aspiration level, and organizational learning. It has been said that in order to be innovative an organization should develop its absorptive capacity.

<span class="mw-page-title-main">Data management</span> Disciplines related to managing data as a resource

Data management comprises all disciplines related to handling data as a valuable resource, it is the practice of managing an organization's data so it can be analyzed for decision making.

Information technology management is the discipline whereby all of the information technology resources of a firm are managed in accordance with its needs and priorities. Managing the responsibility within a company entails many of the basic management functions, like budgeting, staffing, change management, and organizing and controlling, along with other aspects that are unique to technology, like software design, network planning, tech support etc.

<span class="mw-page-title-main">Wanda Orlikowski</span> American computer scientist

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Business analysis is a professional discipline focused on identifying business needs and determining solutions to business problems. Solutions may include a software-systems development component, process improvements, or organizational changes, and may involve extensive analysis, strategic planning and policy development. A person dedicated to carrying out these tasks within an organization is called a business analyst or BA.

Business development entails tasks and processes to develop and implement growth opportunities within and between organizations. It is a subset of the fields of business, commerce and organizational theory. Business development is the creation of long-term value for an organization from customers, markets, and relationships. Business development can be taken to mean any activity by either a small or large organization, non-profit or for-profit enterprise which serves the purpose of 'developing' the business in some way. In addition, business development activities can be done internally or externally by a business development consultant. External business development can be facilitated through Planning Systems, which are put in place by governments to help small businesses. In addition, reputation building has also proven to help facilitate business development.

In organizational theory, dynamic capability is the capability of an organization to purposefully adapt an organization's resource base. The concept was defined by David Teece, Gary Pisano and Amy Shuen, in their 1997 paper Dynamic Capabilities and Strategic Management, as the firm’s ability to engage in adapting, integrating, and reconfiguring internal and external organizational skills, resources, and functional competences to match the requirements of a changing environment.

Innovation management is a combination of the management of innovation processes, and change management. It refers to product, business process, marketing and organizational innovation. Innovation management is the subject of ISO 56000 series standards being developed by ISO TC 279.

E-HRM is the planning, implementation and application of information technology for both networking and supporting at least two individual or collective actors in their shared performing of HR activities.

Ann Majchrzak is an American academic. She is a Professor of Digital Innovation in the Department of Data Sciences and Operations within the USC Marshall School of Business. Majchrzak holds the USC Associates Chair in Business Administration.

Alok Gupta is an American information scientist, economic engineer, and academic. He is the Professor of Information and Decision, a Senior Associate Dean of Faculty, Research and Administration, and Curtis L. Carlson School Wide Chair in Information Management in the Carlson School of Management at the University of Minnesota.

The Market Opportunity Navigator(MON) is a methodology in strategic management that aims to help innovators and entrepreneurs identify and select the most valuable market opportunity to pursue current and future resources and capabilities. It was added as the fourth tool in the lean startup toolset and can be used with the Business Model Canvas developed by Alexander Osterwalder and Yves Pigneur and the Minimum Viable Product.

References

  1. ↑ "Management". Business Dictionary. Archived from the original on 3 May 2019. Retrieved 28 October 2014.
  2. ↑ "10 BPM tools every manager needs to know" . Retrieved 28 October 2014.
  3. ↑ Piccoli, Gabriele; Ives, Blake (2005). "Review: IT-Dependent Strategic Initiatives and Sustained Competitive Advantage: A Review and Synthesis of the Literature". MIS Quarterly. 29 (4): 747–776. doi:10.2307/25148708. ISSN   0276-7783. JSTOR   25148708.
  4. ↑ "Selecting Management Tools Wisely". Harvard Business Review. December 2007. Retrieved 29 October 2014.
  5. 1 2 Rigby, Daniel; Bilodeau, Barbara. "Management Tools & Trends 2013". Bain & Company. Retrieved 29 October 2014.
  6. ↑ Kohli, R.; Devaraj, S. (2003). "Measuring information technology payoff: A meta-analysis of structural variables in firm-level empirical research". Information Systems Research. 14 (2): 127–145. doi:10.1287/isre.14.2.127.16019.
  7. ↑ Drnevich, P.; Croson, D. (2013). "Information technology and business-level strategy: toward an integrated theoretical perspective". MIS Quarterly. 37 (2): 483–509. doi:10.25300/MISQ/2013/37.2.08.
  8. ↑ Barua, A.; Kriebel, C.; Mukhopadhyay, T. (1995). "Information technologies and business value: An analytic and empirical investigation". Information Systems Research. 6 (1): 2–23. doi:10.1287/isre.6.1.3. JSTOR   23010849.
  9. ↑ Brynjolfsson, E.; Hitt, L. (1998). "Beyond the productivity paradox". Communications of the ACM. 41 (8): 49–55. doi: 10.1145/280324.280332 .
  10. ↑ Henricks, Mark. "6 Free Cloud-Based Business-Management Tools". Open Forum American Express. Retrieved 30 October 2014.
  11. ↑ Neidlinger, Julie. "The 8 Must-have Free Online Business Tools you need". Todaymade. Retrieved 30 October 2014.
  12. ↑ Barone, Lisa. "7 Best Business Management Tools for SMBs". Small Business Trends. Retrieved 30 October 2014.
  13. ↑ Gehl, Derek (2005-06-27). "12 Free Tools for Online Businesses". Entrepreneur. Retrieved 30 October 2014.
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