Reasons for the rise of consulting service industry

Historically, the rapid development of consulting services is mainly due to the following reasons:

1. The needs of social development

The development of consulting service industry is the need of social progress, which can be seen from the development of market economy and consulting service industry in western developed countries. The modern market economy in western developed countries was basically mature in the 1940s, and the consulting service industry started in this period and was basically standardized in the 1960s. With the continuous improvement of the maturity of the market economy, especially since the late 20th century, the management consulting service industry in major developed countries in Europe and America has been growing at an annual rate of 20%-30%. No other industry can compare with it. The increasingly significant influence of consulting activities has penetrated into many fields of politics, economy and life. Driven by social demand, educational institutions in western developed countries made timely adjustments, which provided the source power for the rapid expansion of management consulting companies. In addition, large accounting firms have joined the consulting service industry, and introduced their traditional income items (auditing, accounting and taxation) and computer technology into their business, and developed management information and control systems.

2. The result of in-depth development of social division of labor

Consultation is the product of the specialization process of social division of labor. The diversification and comfort of social needs promote the specialization of production. This requires people with professional knowledge to work in a certain field in order to provide more professional and comfortable products or services. In the development and management of various organizations, there are many experiences that need not be summarized and sorted out by themselves, but are carried out by specialized experienced professionals, so the social division of labor is becoming more and more detailed. Some countries even separate the consulting information industry from the tertiary industry as the fourth industry, and its proportion in the whole social economy reflects the degree of social demand for "intelligent" products and "knowledge-intensive" products. The average output value of consulting services in the world accounts for 2 1% of its gross national product, and developed countries generally account for 2%-3%.

3. The needs of enterprise scale expansion

In the whole industrial chain, consulting service industry is in the upstream stage and is the driving engine of social progress. With the continuous expansion of enterprise scale, external factors become complex and changeable: the differentiated expansion of customer demand, the continuous shortening of product life cycle and the increasingly fierce market competition have caused tremendous pressure on the sustainable development of enterprises, and any mistakes made by enterprises in any link will fall short. The limited rationality, information and resources of enterprises determine that they can't cover everything, which requires more professional institutions to provide help in all weak links. Since the 1990s, the business community is facing unprecedented global competition, and the internal factors of the enterprise are constantly changing. Production technology, management technology and information integration technology are relatively backward and lack of core competitiveness, which has become the shackles of enterprise development. The demand for new technology, organizational structure adjustment and new ideas has led to a huge demand for consulting services.

4. The change of social consultation consciousness

Consulting consciousness is a series of psychological states and concepts that people understand, value, accept and use consulting service industry. It is closely related to the development of consulting business. When the consultation consciousness is deeply rooted in people's hearts or advanced appropriately, the consulting service industry will develop rapidly and promote the healthy and sustainable development of the economy; When consultation is not recognized by people or consultation consciousness lags behind, the development of consulting service industry will be restricted, and at the same time, it will also restrict the all-round development of economy. As far as management consulting is concerned, American enterprises spend almost a lot of money on consulting activities related to the survival and development of enterprises. Therefore, there is a strong demand for management consulting in the American market. It can be seen that the role of consulting consciousness is direct, and the demand for consulting by enterprises or governments increases with the continuous enhancement of consulting consciousness. Only by constantly improving the understanding of the usefulness, compensation and guidance of consulting by enterprises and governments can we stimulate the demand for consulting. The research results show that if the consultation rate of social managers and enterprise managers on important issues is above 50%, it indicates that the level of social consultation consciousness has reached the general standard, and then the consulting service industry can develop healthily.

5. National industrial policy support

The healthy and smooth development of consulting industry must be supported by corresponding industrial policies. In developed countries, the development of consulting service industry has always been in the advanced state, which is inseparable from the policy and institutional support provided by the government. Industrial policies directly related to consulting services mainly include investment policy, opening policy, tax policy, credit policy and other preferential policies. Industrial policies indirectly related to the development of consulting service industry include tertiary industry policy, soft science policy and other indirectly related policies. In Germany, for example, the soft science research and consulting expenses of small and medium-sized enterprises are subsidized by 25%-75% of annual sales. In Britain, one-third of the consulting market comes from the government, which is the largest customer of the consulting service industry. In addition, the incentive effect of tax policy is greater than direct investment or subsidies, because tax can be linked to the operating performance of consulting institutions. Therefore, many countries give very preferential tax policies to consulting services. For example, South Korea will reduce the income tax of consulting companies by 50%. From the experience of foreign consulting service industry, the development of consulting service industry can not be separated from the support of national industrial policies, whether direct or indirect industrial policy support will play a positive role in the development of consulting service industry.

The wide application of 6.6. information technology

The rapid development and application of IT technology, especially Internet technology, has caused a revolution in human society from the era of industrial economy to the era of knowledge economy. Business rules and "bureaucratic" management mode in the era of industrial economy can no longer make enterprises adapt to the external environment characterized by customers, competition and change, and even become a serious obstacle to the survival and development of enterprises. In order to adapt to the new competitive environment, enterprises need to reform the traditional "bureaucratic" organization, realize flat management, break through the limitations of traditional organizational management, and establish efficient process management that responds to the market quickly, which is called Business Process-Engineering (BPR). However, it is found that business process reengineering is inseparable from information technology, especially the application of enterprise resource planning (ERP). Without the application of information system, it is generally difficult for BRP to achieve the goal of further improving management performance. On the other hand, if the ERP system is applied without reorganizing the business process, it will be difficult to achieve the expected results. The combination of BPR and ERP system has become the core content of modern enterprise reform, and this management reform project needs professional consultants to provide special services for enterprises. This has opened up an important consulting service field of modern consulting service industry, including helping enterprises to reorganize their management mode to adapt to the trading rules in the e-commerce environment, formulating IT technical solutions, building their own information management systems, establishing knowledge management systems, and enhancing their long-term core competitiveness. The wide application of the Internet also gave birth to the network consulting service industry, which gained the trust and support of customers through the value-added services of information.