Business services are the non-financial activities that a company uses to support its goals without producing a tangible product. They can include advertising, marketing, consultation, logistics (including travel and facilities services), waste handling, staffing, shipping, administration, security and other support functions.
These are intangible assets, but can be experienced by the customer. These services are delivered by people and organisations to the customers through a system of communication. These can be done by a web platform, a computer system or an app.
They can be used for a range of purposes, such as teaching, treating patients or delivering goods. These services cannot be produced or stored for future use as in the case of physical products, but can be offered on a demand-supply basis.
There are many different types of business services and the type a company offers depends on its needs and preferences. For example, a business may be more likely to require consulting services than it might need to buy a new computer.
Some examples of business services are IT consulting, accounting and legal advice, insurance, and management consultation. These services provide companies with the expertise they need to run a successful business.
A good IT service is one that aligns IT resources with the organization’s strategic goals and supports those goals, enabling the company to become more profitable. This is achieved by documenting the value IT has to a business and by providing IT support to employees and other departments.
The service industry has been experiencing a significant growth in recent years and it is expected to continue growing at a rate of about 1% per year over the next decade. This rapid growth is driven by a number of factors including technology, increased business demands and changing consumer expectations.
What makes the business service industry different from other industries?
The most distinguishing characteristic of the service sector is that it is concerned with building and delivering service systems, rather than simply selling or buying products. This means that it is a more complex and dynamic sector than the manufacturing industry.
There are also differences in the way services are designed and marketed. Whereas product-oriented businesses are designed and marketed around specific features that they believe buyers will like, service-oriented businesses are designed and marketed around experiences that they believe customers will like.
Another difference between the two types of companies is that service-oriented businesses tend to develop a reputation for their type and quality of service, which becomes a barrier to entry for potential competitors. This is because service-oriented companies often produce very abstract and complex services, which are difficult to market successfully.
Managers of service-oriented companies must overcome these obstacles to create a profitable service business. But they can do so if they understand and apply the four key elements of service design to the process: