Management elements change from time to time. Basic Elements, however, have not changed for a long time. Recently, even these basic elements have been affected due to development of Internet communication.
If one has involved in company management, he might have learned that there are 3 important resources of company management. i) People (basically employee, or Human Resources), ii) Products, and iii) Money (Fund, Capitals, Expenses, or Spending)
The resource can look like a triangle. They are interactive each other. It goes without saying the importance of people for business. It is quite self-explanatory model, including money and products. Now these Management Elements are changing to be “5 Management Elements” instead of basic 3.
It appears the importance of these 3 elements has not changed much in Internet age. One can call them classical management elements. They are there in the new model. What are 5 elements, then? Because of the change of communication media, centered on Internet, people’s mind, business behavior, available business tools, market elements, or management resources are no longer 3.
One needs to understand the following 5 elements of management and make use of them, in addition to legacy 3 elements. 4th is “Information”. 5th is “Branding”. Now the elements look like satellite system. Center, like the Sun, is “People”. Satellite planets going around the “People” are “Information”, “Branding”, “Products”, and “Money”.
Obviously, 5 elements model replaced 3 elements, since no one can ignore the power of “Information”, through Internet. Branding is no longer only for a big organization with a lot of money. People can easily band themselves through broadcasting tools in Internet. In this way, the importance of “People Elements”, namely Information and Branding, are increasing in management and marketing models. People do not have to spend large amount of money for Information and Branding. The ones who can manage information and brand will win the next game.
Business is a series of action helping others. Still, “People” is always the center of these elements or any other factors in business. This basic is unchangeable. Business or selling is a mechanism or ruled game. Who makes this mechanism moving? Who participates in the game? PEOPLE does. The Idea was that People being the center of the entire operation managing “Information” and “Brand” promote the flow of “Products” and “Money”.
The difference, from the traditional 3 elements model, is “People” is not sitting on the top of other elements, but accessing and utilizing all other 4 elements. “People” is not necessarily the master. They are still the center of all the elements. Instead of “People” are equally positioned in legacy 3 elements model, in the new model, “People” is the center and access all other elements. In the period of change, “People” element increases its value and importance, gaining more tools and resources.