In this post I take a broad-based look at the common organisational structures within the IT industry. Looking at the advantages and disadvantages of each and explaining how we have developed HarmonyPSA, business automation software, to support IT businesses of every configuration.
Multi-divisional organisational structure
Multi-divisional means that there is one parent company, and that parent company owns smaller companies that use its brand and name. The whole organization is ultimately controlled by central management, but many decisions are left to autonomous divisions.
A multi-divisional instance of Harmony can support transfer pricing arrangements and separate base accounting currencies for each division. However, under this system there can be no cross division of projects, users must work in a single division.
Multiple legal entities within one division
Often resulting from acquisition, many IT businesses have a structure that includes a number of separate legal entities, these would normally be marketed under distinct branding and may require separate account journal exporting for financial reporting.
Harmony can now support multiple legal entity operations from a common instance. This gives the flexibility to manage a single customer account across subsidiaries, increasing opportunities to cross-sell and allowing projects to be delivered across the division, taking advantage of efficiencies where possible whilst retaining the separate brand identities and fulfilling financial reporting requirements.
CTO Steve Powell says “We have included this feature in response to a number of customers who operate in this way. Operating multiple legal entity businesses with a single organisation and management team is tough with conventional solutions that tend to split the world down legal entity lines. Harmony allows users to define product lines that are tied to their operating entities but cross-sell and cross-deliver projects with ease. This addresses a core problem in an industry that is built on acquisition”
Multiple branding is commonly used to differentiate products produced by the same company. Multiple brands can be supported by Harmony. All documentation and outbound customer communication produced by the system can be set up to reflect the company brand name through which the respective products or services were purchased.
We think we have got it covered but it is always great to receive feedback so please share your thoughts and questions or get in touch via www.harmonypsa.com.
About the Author: Harmony Business Systems Ltd (HBS) is the company behind HarmonyPSA, the most complete cloud PSA software on the market. Developed with functionality to cater for even the most complex needs of MSPs, VARs, ISVs and Professional Services organisations, HarmonyPSA truly is the next generation of PSA systems. HBS is an independent company based in the UK. Follow HarmonyPSA on Twitter or LinkedIn