First, globalization has created markets and demand for almost all products purchased online and delivered by global systems to anywhere for anyone.
Second, labor skills and costs are now distributed around the world, so customer support and administrative activities are now performed by a qualified and educated workforce around the world.
Third, technology has advanced to a point where old traditions of business processes and management are being displaced by information and insights becoming available to owners in real time and on mobile devices. It’s changing the structure of how business organizes.
Back office operations are a bright example of how technology has changed to empower more effective business performance.
1960’s & 1970’s – Time of “Big Iron” – large mainframes used to process information. Required cooling rooms and raised flooring to support process.
1980’s – Mini-computers evolved. Smaller versions of “Big Iron” needed less space and used more flexible software written for the platform.
1990’s – Personal computers developed and early networks created, using internal wiring and low bandwidth connection to process data.
2000’s – Networks of personal computers developed, with smart devices to manage them “on-premise”, beginning the need for IT support staff.
2010’s – “Software as a Service“ (SAAS) processes developed to replace on-premise networks.
The stage is set for current business practices to move to SAAS based models as an advance in effectiveness and efficiency.
In summary, the business world has changed for the better. Companies embracing and integrating these changes will rise above their competitors and succeed in an ever-increasing competitive world.
Stephen Gross is a big picture thinker and connector, with 40 years of rich and diverse experience in the C.P.A., business consulting, and venture capital worlds. Steve was an early adopter and evangelist of cloud-based accounting, as well as the concept of a virtual C.F.O. or Controller as a method of outsourcing the position in small businesses and startups. Steve brings his extensive experience as an entrepreneur, board member, and business advisor to his role at TCFOS. Learn More About Steve…
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