The infrastructure of a company They are the basic facilities, structures and services on which the construction of a business rests. It is common to think of infrastructure as physical things, but basic software and services can also be considered infrastructure.
Infrastructure means the basic structure of an organization or system. The infrastructure of a company would include all the fixed assets, such as the building, equipment, machinery and tools necessary to manufacture the products.
Although people are not fixed assets, they must also be included in the infrastructure of a company. In addition to the owners, a management team and employees are required to operate the machinery. Office workers will need desks, filing cabinets, chairs, computers, etc.
The expansion of the company will increase the infrastructure. For example, if you add a new product, you may have to buy more space and machinery to make the item, as well as increase the number of people to operate the machinery.
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What is business infrastructure?
Infrastructure can include a wide variety of systems and structures, as long as physical components are required.
For example, the physical cabling and components that make up a company’s data network that operates within a specific location are also business infrastructure, as they are required to support business operations.
In Keynesian economics, the term «infrastructure» referred only to the public assets that facilitated production. It did not include private assets for the same purpose.
However, in Post Keynesian times the term has become increasingly popular. Its meaning has also been expanded and today includes the internal framework in any business organization or technology system.
Because infrastructure often involves the production of public goods or goods that lend themselves to generating natural monopolies, it is very common to see public financing, control, supervision, or regulation of infrastructure.
general components
Each component of a company’s infrastructure must be analyzed independently of the others.
– Daily operations
It is what is done daily to generate profit. Running the day-to-day operations and administration of the company can be costly. It also requires commitment, because all actions can directly affect the success of the business.
Location
If you are online, you must be visible enough to reach your target market. If you are a brick-and-mortar store, you should be in an area where you are most likely to have enough customers to stay in business and obtain business supplies.
Location is a critical factor in generating income. You have to make sure that the physical and online location can help you get the most out of the business.
Physical infrastructure
It is important to design the physical space. The functions of the company, the number of employees, the equipment, etc. must be considered.
You have to choose the tools that are needed in order to keep the business competitive.
– Processes
Every company needs a process to manage and deliver the products or services at the time requested by the customer. A workflow must be created that details the business needs and the general and specific objectives.
A checklist of activities to achieve the objectives is then written. A good management and supervision strategy is then put in place to ensure that this takes place.
– Employees
If you don’t have the right manpower to deal with the wide variety of tasks in operation, mistakes will soon be made that could put your business in a bad light.
To avoid this, qualified personnel must be hired, administrative rules established, and adequate salaries and benefits provided.
– Information technology
Many technical systems are often referred to as infrastructures, due to the critical function they provide within business environments.
Without an information technology infrastructure, many companies would struggle to efficiently share and move data within the workplace. The IT infrastructure is made up of:
hardware platforms
They include client machines and server machines, as well as laptops.
Operating systems
They are software that manages the resources and activities of the computer. They act as an interface for the user.
business applications
For example, SAP, Oracle, and PeopleSoft, as well as the software used to link a company’s existing application systems.
Storage devices
They include traditional methods, such as hard drives and tape libraries, and newer technologies, such as storage area networks.
Network and telecommunications platforms
Almost all local networks and many wide area networks use the TCP/IP networking standards.
internet platforms
Internet-related infrastructure includes the hardware, software, and also services to maintain corporate websites, intranets, and extranets.
infrastructure plan
A company infrastructure plan creates a roadmap that is used to start and run a company.
– Business structure
You have to choose between a sole proprietorship, partnership, limited liability, corporate or non-profit.
The business requirements and documents needed to start the business vary from country to country.
– Develop a business plan
Research potential competitors in the area
Get an overview of the market and demographics compared to the business model, as well as compare products and prices.
write mission statement
Describe what the new business will do, what it will take to start the new business, and what the business will bring to the community. In short, outline business objectives, in addition to growth expectations.
Define the type of operating environment
Determine whether to lease offices, purchase existing real estate, or begin construction on a new building.
budget and finance
The budget should include startup costs, salaries, operating costs, and marketing costs. Detail the capital needed to survive the first year, moving forward through the next five years from inception.
Define what financial assistance is needed to start the business, as well as where the financing will come from.
– Administration
Create an organization chart
The positions needed to start the company should be detailed, from CEO and management, to general staff.
Describe the specific duties, as well as who you can report to each position. Classify each position according to need and budget.
Create a projected growth list
Include future employees needed and also any materials or tools that may be needed as the business expands.
References
Lisa Kling (2019). How to Plan a Business Infrastructure. Small Business-Chron. Taken from: smallbusiness.chron.com.
Quora (2019). What does company infrastructure mean? What does it include? Taken from: quora.com.
University of Porto (2019). Infrastructure Components. Taken from: paginas.fe.up.pt.
ALC Commercial (2019). The 3 Components of a Successful Business Infrastructure Plan. Taken from: alccommercial.com.au.
10gea (2019). Why is a solid network infrastructure important for a business? Taken from: 10gea.org.