Business Management System (BMS)
A Business Management System (BMS) is a set of policies, practices, procedures, and processes used in developing and deploying strategies, their execution, and all associated management activity.
The Need for Business Management System
Effective business management software helps businesses address their scaling growth and operations by keeping things simple. Here are 5 ways companies can benefit from an investment in a business management system.
- Simplicity keeps things moving smoothly: With a modern, high-quality business management system, companies are able to access everything they need to know about their business easily and efficiently. With just a few clicks, they’re able to easily navigate from one screen to another, moving from accounting to CRM with ease, and more importantly, integrating these processes (more on this to come!).
- Keeping costs down is just good business: When you’re new to the business world, you can often find free cloud-based programs that will meet your needs. As your business expands, however, finding an all-inclusive (and free) solution becomes considerably more difficult. Many programs are free up to a point, but then require you to pay if you’re invoicing, selling, or generating more than a certain number of reports. Each individual piece of software may be reasonable, but paying for them all together can be much more expensive than one comprehensive solution.
- Better integrated software = more efficient employees: And of course, to be a successful entrepreneur, you need to count costs not just in terms of dollars, but in terms of personnel hours spent on any project. If having multiple pieces of software causes your employees to take longer to complete tasks, then you start to lose productivity dollars. This can become especially problematic when information must be transferred from one program to another, taking up valuable staffing time (and costing you even more).
- Avoiding errors is always better than catching them after the fact: Every time you take information from one platform to another, you introduce the possibility of errors. You either have to tolerate those errors or you have to spend even more labor on checking for them. With a comprehensive business management solution, you put in information once; the software does the rest. For many businesses, this type of automation and simplicity greatly reduces the chance of errors.
- Accessibility rules in business management systems: The best business management systems allow you to access them anywhere. Harnessing the power of the cloud, 21st-century business management platforms make sure that executives and salespeople alike have access to the parts of the system they need — no matter where they are. At the same time, great systems let your IT team make sure that no one has access to more than they need, matching access to responsibilities and confirming that information stays as secure as needed.
Functional Groups Of BMS
A business management system is a multilevel hierarchy of business solutions that represent how a profit-oriented organization will carry out different functions (like Sales, Purchasing, Marketing, and Staffing) to accomplish a task and achieve a goal successfully. The BMS hierarchy consists of three major top-level functional groups, such as Business Management Strategies, Business Management Tactics, and Business Management Implementation. Let’s review each of the business management system groups in detail.
- Business Management Strategies: This high-level group of BMS is dedicated to the identification and planning of the general business management direction which refers to an organization’s policies. The direction is a strategy or a set of strategies to determine high-level priorities and preferences of the organization. Policies will be the tools for specifying the strategy and identifying a plan of action to determine and influence business management decisions, activities, and processes. Therefore, business management policies are the key tools for identifying the business strategy for profit-oriented organizations and establishing standards and plans for achieving strategic goals and objectives.
- Business Management Tactics: This BMS functional group identifies the tactical approaches and techniques to the implementation of the business plans linked to the business strategy and according to the policies. The tactical solutions should be presented during the business decision-making process and put into practice according to the time frames outlined in the business management strategy document (however, additional business schedules can be created and assigned to the tactical implementation practice). Therefore, Business Management Tactics group refers to activities to follow the business standards identified in the policies and to implement business plans and tasks in order to meet prioritized goals and objectives determined in the organization’s business management strategies.
- Business Management Implementation: This functional group of the System includes guidelines and processes for developing business management plans. The guidelines contain practical directions and instructions to show decision-makers how to manage tactical solutions. The processes include procedures and operations to demonstrate to performers how to accomplish day-to-day tasks and activities. Therefore, Business Management Implementation group is about directing an organization’s staff toward the execution of the business solutions and recognition of implementation plans in line with the management tactics.
Benefits of Business Management System
The benefits of an effective business management system include:
- Well-defined and understood performance metrics
- Strategic objectives cascaded to all levels of the organization
- Cross-functional teams effectively working together on company-wide goals
- Increased management and employee engagement
- Faster achievement of top priority objectives.