Infrastructure Of A Company: What It Is And Components

The infrastructure of a company is the facilities, structures and basic services on which the construction of a business lies. It is common to think of infrastructure as physical things, but software and basic 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 a new product is added, more space and machinery may have to be purchased to make the item, in addition to increasing the number of people to operate the machinery.

What is business infrastructure?

The 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 the data network of a company that operates within a specific location are also infrastructure for the business, as they are required to support business operations.

In Keynesian economics, the term “infrastructure” referred only to 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 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 profits. Managing the day-to-day operations and administration of the company can cost a lot. 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 physical establishment, you should be in an area where you are most likely to have enough customers to stay in business and obtain supplies for the business.

Location is a critical factor in generating income. Make sure the physical and online location can help you get the most out of your business.

Physical infrastructure

It is important to design the physical space. The functions of the company, the number of employees, the teams, etc. must be considered.

You have to choose the tools you need in order to keep your business competitive.

– Processes

Every company needs a process to manage and deliver products or services at the time requested by the client. A workflow must be created that details the business needs and general and specific objectives.

Next, a checklist of activities is written to achieve the objectives. Then a good management and oversight strategy is put in place to ensure this is done.

– 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 the business in bad shape.

To avoid this, you must hire qualified personnel, establish administrative rules, and provide adequate salaries and benefits.

– 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 share and move data efficiently within the workplace. The IT infrastructure is made up of:

Hardware platforms

They include client machines and server machines, as well as laptop computers.

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 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 standards for networking.

Internet Platforms

Internet-related infrastructure includes the hardware, software, and also services to maintain corporate websites, intranets, and extranets.

Infrastructure plan

A business infrastructure plan creates a roadmap that is used to start and manage a business.

– Business structure

You have to choose between a sole proprietorship, partnership, limited liability, corporate or non-profit.

The business requirements and documents necessary to start the business vary from country to country.

– Develop a business plan

Investigate 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, set out business goals in addition to growth expectations.

Define the type of operating environment

Determine whether offices will be leased, existing property will be purchased, or construction of a new building will begin.

Budget and finances

The budget should include start-up costs, salaries, operating costs, and marketing costs. Itemize the capital required 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 org chart

The positions necessary to start the company should be detailed, from the CEO and management, to the general staff.

Describe specific duties, as well as to whom each charge can report. Classify each position according to need and budget.

Create a projected growth list

Include future employees needed and also materials or tools that may be needed as the business expands.

References

  1. Lisa Kling (2019). How to Plan a Business Infrastructure. Small Business-Chron. Taken from: smallbusiness.chron.com.
  2. Quora (2019). What does company infrastructure mean? What does it include? Taken from: quora.com.
  3. Universidade do Porto (2019). Infrastructure Components. Taken from: paginas.fe.up.pt.
  4. ALC Commercial (2019). The 3 Components of a Successful Business Infrastructure Plan. Taken from: alccommercial.com.au.
  5. 10gea (2019). Why is a solid network infrastructure important for a business? Taken from: 10gea.org.
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