Key resources can be physical, financial, intellectual, or human. They are considered tangible assets that the organization uses to create a value offering and a value proposition for its customers. Physical resources can include equipment, buildings, inventory, the manufacturing plant and the distribution network, which are extremely crucial for the business to function properly. While these requirements are mandatory for the company that has an offer of tangible products, for the company that offers intangible services, a manufacturing plant, a distribution network, etc., would not be required.
Human resources are also important in customer service and as problem solvers to understand the nature of the problem (the customer) and offer personalized solutions. Qualified scientists, who are people, work to come up with innovative ideas and new drugs to cure diseases, and an efficient sales team, comprised of human resources, helps sell drugs to end customers, who are doctors. Starting in 2000, companies realized the importance of intellectual resources, and this can be clearly seen in the increase in patents filed around the world. Most companies have financial resources on a regular basis, but few companies will have extremely strong financial resources, such as banks, which rely exclusively on financial resources and use them as a key resource.
The last economic resource is entrepreneurship, which is the ability of an individual to take the initiative to create a business. Businesses need four main resources in order to operate successfully: physical resources, human resources, intellectual resources and financial resources. Physical resources are important for the functioning of the organization since without elements such as equipment, inventory and the manufacturing plant it is difficult for the company to function. Human resources combine physical resources with technology to make organizations more productive and efficient.
Intellectual resources are seen in the increase in patents filed around the world and are considered one of the main drivers of business growth. Financial resources include cash, credit and lines of credit along with stock plan options for employees. It is essential that businesses understand if their physical resources will be able to meet their expectations or not. In addition to physical resources, businesses should also be able to know if their current human resources will be sufficient or if they would need more talent to be hired in order to meet their requirements.
Companies should also consider how they can use their resources differently from their competitors in order to innovate and create value for their customers. The best approach to managing financial resources is important for achieving a company's objectives and goals. Earth is any natural resource involved in the business process and should also be taken into consideration when assessing key resources available to a business. Insurance companies work exclusively on financial bases and use finance as their fundamental resource while other businesses may need specialized production plants or robots in their production processes in order to improve accuracy and reduce costs.
In conclusion, businesses need four main types of resources: physical, human, intellectual and financial in order to operate successfully. It is essential that businesses understand if their physical and human resources will be able to meet their expectations or not. The best approach to managing financial resources is important for achieving a company's objectives and goals.
