How do you manage your Digital Services Company?

Reading time: 7 minutes.

Whatever its size, to remain competitive and therefore sustainable, an IT services company needs to be efficient.

Steering an ESN is therefore vital, as it enables us to monitor the achievement of objectives, evaluate performance, diagnose the situation in figures, and support the decisions we need to make.

According to a study conducted by Implid and Entreprise du futur, one-third of companies prioritize accelerating their digital transformation to drive performance and operational excellence.

Managing an IT services company requires a thorough understanding of internal processes and the ability to adapt quickly to changes in the digital market.

Visualizing the results of your Digital Services Company is a decision-making tool to help you grow your business.

In this article, we explain how to manage your ESN through various performance indicators. We’ll also talk about the tools available to you to support your piloting.

The performance indicators you need to monitor to manage your ESN

The management of your ESN requires the assessment of key performance indicators. These will enable you to determine whether the actions you have put in place are conducive to achieving your objectives, or whether you need to readjust your strategy.

KPIs (Key Performance Indicators) also allow you to take a long-term view and anticipate risks related to your business.

Sales figures

Sales are a measure of a company’s ability to generate value. When analyzing this performance indicator, we need to distinguish between several elements:

• Invoiced sales, corresponding to all invoices;
• Revenue from services rendered;
• The invoice to be issued corresponds to services performed but not yet invoiced;
• Deferred revenues, corresponding to services not performed but invoiced.

Effective activity reporting makes it possible to track these elements in real time, thereby facilitating strategic decision-making.

Average Daily Cost (ADC)

The average daily cost is also a key performance indicator that an IT services company should monitor. It provides insight into the company’s profitability. The average daily cost corresponds to the estimated costs of an employee’s work on a project.

There are several ways of calculating it, depending on the employee’s status.

Simple calculations :

Automating activity tracking makes it possible to calculate these costs accurately and quickly, thereby reducing human error.

Average Daily Rate (ADR)

The Average Daily Rate is the average amount billed to Digital Services Company customers for one day. The rate must cover the ADR to avoid losses.

A time-tracking tool simplifies the calculation of the average daily rate by consolidating billing and production data.

Activity rate excluding vacations (TACE)

Also known as the staffing rate, the activity rate excluding leave provides insight into the digital services company’s operational performance.

This rate is essential for performance management, as it reflects the actual utilization of human resources.

Activity rate including vacations (TACI)

The same as TACE, except that vacations are included.

Monitoring consultants using these metrics helps optimize project planning and resource management.

The workforce

The company’s employees also have an influence on the profitability of the Digital Services Enterprise, sincethey have a non-negligible cost.

Several indicators can be used to assess workforce-related performance:

• Turnover;
• Average seniority.

An ERP system allows you to centralize employee information, making it easier to analyze these metrics while complying with GDPR regulations.

The margin

Margin is also a good indicator of ESN performance, since it allows us to analyze the money earned by the company through its services.

Performance management requires regular analysis of margins.

Outstanding receivables

Outstanding receivables provide an overview of the average number of days your invoices are overdue and the total number of outstanding receivables. Outstanding accounts receivable can have a negative impact on ESN’s growth, as it worsens the cash position.

An ERP system for digital services companies allows these outstanding balances to be tracked in real time, thereby simplifying cash flow management.

The essential tool for managing your ESN

It’s one thing to know the performance indicators you need to manage your ESN, but it’s equally important to create dashboards to monitor these different indicators. On the other hand, making decisions based on reliable data is a very important point, indeed the most important.

Yes, dashboards and charts are great tools for tracking the performance of your digital services business. You have a clear idea of where improvements are needed.

However, if you use spreadsheet programs like Excel or multiple management tools that are independent of one another, several issues may arise:

• The data are scattered;
• Data differ from one software package to another, or from one file to another, making it difficult to exploit the data and thus analyze ESN performance.

This is why, when you use an ERP-type management tool, you have :

• First, several UN-based software applications ( CRM, HRIS, accounting, etc.), which allow for the centralization of data;
• secondly, the data is updated automatically and every time an employee performs an action, ensuring that the information is up to date and reliable.

An ERP system for IT services companies provides a comprehensive overview of business processes, from IT project management to consultant tracking, as well as billing and human resources management.

In addition, the Business Intelligence technology built into the ERP solution correlates the various integrated data points and automatically generates reports to measure performance.

Integrating a time-tracking tool also automates activity tracking, thereby reducing administrative tasks and improving data accuracy.

Manage Your Digital Services Company Effectively with VSActivity

Rigorous, centralized management is essential to ensuring the profitability, operational performance, and sustainable growth of a digital services company.

With this in mind, we have developed VSActivity, our ERP software designed specifically for digital services companies. It helps you optimize your business operations, manage your resources, and track your IT projects.

Centralize your data and gain greater visibility

With vsa, you gain a comprehensive and unified view of all your business processes:

• Tracking assignments and time spent by each consultant;

• Performance management using comprehensive dashboards;

• IT project management with precise task planning;

• Automated and customizable activity reporting.

Automate activity tracking and time management

VSActivity enables your company to:

• Automate time entry and approval;

• Manage your employees’ absences, time off, and availability;

• Anticipate underloading and overloading;

• Track key financial and operational metrics in real time.

Why Choose VSActivity for Managing an IT Services Company?

Choosing vsa means adopting an ERP system designed for the specific needs of digital services companies, with tangible benefits:

• Centralization of data (CRM, HR management, projects, finance);

• Reduction of manual tasks through the automation of activity tracking;

• Decision-making facilitated by up-to-date and reliable indicators;

• Time savings and improved project profitability.

But that’s not all! Whether you’re a consulting firm, a service company, or a software publisher, VSActivity lets you effectively manage:

• Your sales management (quotes, orders, invoicing);

• Your financial management (cash flow, accounts receivable, margins);

• Your time and activity management;

• Consultant oversight and end-to-end IT project management.

Request your free demo today and discover how VSActivity can become the true control center for your digital services agency.