What Are Business Services?

Business services

Business services are the tasks and activities that a company undertakes to maintain its operations without producing any tangible product. Examples of these services include information technology which assists many other business services like procurement, finance and shipping etc.

These services help companies by addressing their needs, such as production, safety, cost and convenience. They are used by businesses across the world to assist their work processes and meet demands.

Unlike goods, which can be stored and sold later, business services need to be delivered when they are requested. They cannot be held in stock for future use and therefore customer involvement is important when providing these services.

There are five key characteristics of business services that differentiate them from goods: Inventory, Involvement, Intangibility, Inconsistency and Inseparability.

Service differentiation is another key factor in defining and designing successful Business Services. The most effective ones are able to distinguish their product from the competition, which helps them create a reputation that serves as a barrier to entry.

In most cases, the value of a service is determined by the market rather than by the cost of it. This can make it difficult to compare prices and ensure a fair price for the customer.

This is where the Service Design process becomes a major focus. The process identifies what customers and other stakeholders want, translates it into simple measurable requirements, and then determines your Service Value Proposition (SVP) and the assets and resources required to deliver this. Then, you can decide on an appropriate position in the market, and develop the right strategies to achieve this.

Posted in: Gembing