Business services are the actions/activities that help companies but don’t always result in a tangible product. They are mainly used by large firms and in many cases, they are essential for all aspects of the industry.
The value of each service is intangible, which means that the worth of a particular service cannot be measured by the amount of goods it produces or the quantity it can be stored for future use. This intangible value makes business services important to a company’s success.
Examples of business services are insurance, banking, warehousing, transportation and communication. Businesses also hire IT and tech support workers to handle any technological issues that crop up.
Business service providers also offer employee-oriented services, such as workout facilities and relaxation areas. They also provide employees with transportation and other services to facilitate their work-life balance.
Customer-oriented services are those that give customers a favourable experience and satisfy their demands and preferences. These services differ from one customer to the other, based on demand, expectations and the preferences of the person providing the service.
Generally, service production and consumption occur simultaneously in services; this is different from the case of physical products.
Managing service businesses is very different from managing product businesses, requiring new approaches to strategic management. These new approaches focus on four core elements, which together are a “service model.” By examining these four critical components of service design, students learn how to build profitable, successful service businesses.