Archivi tag: overhead

New ways of thinking

 

The main difference between an old economy business and a new economy one can be found in savings.

Top level managers, high school teachers or famous financial advisors have been talking about all the cost-effective activities for many years, so we know there are several manners helpful for keeping costs down: lower times for manufacturing due to higher workers’ experience with the passing of the time, economies of scale due to increasing total quantity of products, degree of control in negotiations with suppliers due to increasing purchases, everything focused on the internal aspects of the business, according to the traditional theory of manufacturing industry.

In the 2000s, the traditional vision must be renovated because of the uniqueness of the product created, so e-commerce or e-community firms have to take care of marketing aspects related to financial entries (outside perspective), and also have to approach new accounting procedures for controlling overheads (inside perspective) such as rent, personnel, software licenses, hardware, etc.

First of all, a click & click industry must assess what is demanded in terms of work: if it couldn’t keep up with demand, it would lose a lot of faithful clients (and other potential clients), and everybody knows that’s extremely difficult to make customers come back as long as they’ve no physical presence and their geographic location is all over the world! Budgeting activity is getting very important!

Ford’s T-model times are finished: we have to be aware businesses are being managed in a more and more virtual global village where every client likes a particular and tailored merchandise or service, and management efforts to reduce standard costs typical of the massive production aren’t so frequent.

A clever web manager needs to use human resources and financial capital in order to achieve goals in terms of users and clients who push up profits through a great amount of revenues. But more creativeness doesn’t mean less rationality!