A business service is a type of transaction that involves an intangible good rather than a physical product. In the context of business, this includes services like marketing, consulting, IT support, logistics, travel and facilities management to name a few. These are all essential to businesses in a wide range of industries. Many of these businesses rely on outside service providers for efficiency, safety, cost and convenience reasons. A number of different types of business services are available, and they are used by almost every company that exists in some capacity.
Unlike products, which are manufactured and shipped in bulk, the vast majority of business services are delivered as an experience to the customer. This makes them difficult to scale and creates a different set of challenges for managers than other types of companies. Business services companies must be able to provide quality experiences at scale, and this requires a unique mindset that focuses on understanding and anticipating customer needs.
The most common form of business service is a consumer-facing experience, which is also the fastest growing area of the economy. Examples of consumer-facing business services include retail, restaurants, entertainment and financial services. Consumer-facing business models are often more complex to manage than other types of companies, and they require stronger leadership from top executives. This style of leadership can be a challenge for some individuals who are accustomed to working with revenue-generating line managers, but it is important to the success of any business.
In addition to consumer-facing business services, there are a number of other types of business services that help companies operate and grow. These include utility services, which are provided by companies that charge customers based on power consumption, real estate services, which allow companies to rent office and retail space rather than own it, and employee support services, which are offered to employees in the form of day care, medical care and fitness centers.
All business services are designed to meet the needs and desires of attractive groups of consumers, which can be a challenge for these kinds of companies. Unlike product designers, who focus on the characteristics of the product that consumers will value, business services designers must understand what the customers value in their experience with the brand. They may be more interested in things like convenience, friendly interaction, or extended hours of operation than the features of the final product.
Business services are a significant part of the European economy, and they are increasingly being utilized to enhance products by adding new functions. These innovations can increase productivity and reduce costs, making this an important industry to watch. The European Commission has set up a high level group on business services to help develop this sector and address remaining barriers to competitiveness. This group’s reports and recommendations can be found in the Business Services Supersector page. In addition to the group’s reports and recommendations, the EU Internal Market provides detailed information on employment in this industry including data on gross job gains and losses and projections of occupational change.
