Last month, I saw one of the 21st century economic reports. Article Digital China's transformation of IT services suffered financial difficulties or would be repeated. At that time, I wanted to officially write something, but it was delayed due to busy work. I always feel that I am in arrears. Today I will take some time to give a simple sentence. The profits of consulting companies mainly come from two aspects: Software and Hardware distribution and projects (consulting, development, and upgrade). The profits are mainly determined by the number and scale of tickets. There is nothing to say about hardware and software. It is similar to selling department stores. Based on the manufacturer's discount standards, we will talk to the customer and make a Commission based on the price rebate. For consulting companies, what really can make food is a project. The cost structure of the consulting company is relatively simple, and the salary of the personnel is controllable (base salary + Commission). I think the high sales and other expenses are the main cause of the loss of the consulting company. Pre-sales is required, but the signing rate (quantity and amount) must be linked with the pre-sales staffing, income, and other elements to increase the input-output ratio of this part of the cost. In addition, it is essential to cooperate with Agent product vendors to make necessary media PR and soft advertising investment. This marketing expense is not a key factor affecting profits because it is not a high proportion of the total operation expense of the consulting company. During the implementation of the project, the cost of consultants and the customer are calculated by person/day. In this way, the risk of the consulting company is not high unless the project fails to be implemented. However, the current fierce competition in the consulting industry in China basically adopts the customization system. Therefore, controlling the project implementation cycle is the key to affecting the profitability of the entire project. project cost control is very important. At present, many project managers of consulting companies are generally senior consultants of a certain module. The method of project management is to understand some, but most of them have not studied PMP in depth, there is no concept of project cost control. Of course, this is also related to the company's requirements, because the project manager's goal is to successfully implement the project as soon as possible, but the consultant's salary, travel expenses, subsidies, and so on are not within their controllable scope. Some companies require the project manager to manage them. In fact, they are also the beneficiaries of these fees, so the results are not satisfactory. In my opinion, the consulting industry can actually use the practices of some traditional industries to bind costs and income. Of course, do not detain fees, but a mechanism should be established. The cost saved by consultants can be partially converted into income. For example, many consulting companies allow consultants to fly home on weekends to spend the weekend (or go back to the company) and fly back to the customer on Monday. If you use subsidies to encourage the consultants who choose to stay, the situation will be completely different. Although the consulting industry is less lucrative than the previous years, it should be regarded as "Blue Ocean" than the traditional industry ". All the people working in this industry are highly intelligent talents. How to improve their productivity through management and incentives is the foundation of profit. Establishing cost awareness and strengthening cost control is also a factor that affects profits for most consulting companies.
