Business services are non-product based services that support businesses with their everyday operations. These services may include marketing, consulting, human resources, logistics, waste management and other support functions such as security. Business service providers are a significant component of the economy and make up 11% of EU GDP. They are vital for European competitiveness and help to create value by linking goods and services in new combinations, as well as supporting manufacturing.
Companies that provide business services are usually known as service-based firms or knowledge-intensive companies. They have a different business model to product-based firms, which are typically more concerned with developing products that have high market value and meet customers’ needs. In contrast, business services firms produce services that are tailored to the requirements of each individual client and are rarely shared with other clients. These firms have lower start-up costs because they do not need to invest in the production of physical products.
Unlike goods, which can be stored and used when needed, services have to be provided immediately when demanded. This is one of the main differences between goods and services. In addition, business services are more complex than goods because they require a higher level of skill and creativity to produce and are often intangible. In order to manage a business service firm successfully, managers need to undergo a shift in thinking. They must move away from a focus on product design and towards the creation of customer experiences.
In recent years, business services have become increasingly sophisticated and technologically driven. This has been a result of the rapid growth of digitalization and new communication technologies. Technology has also transformed the way that businesses operate and interact with each other. This has led to a new set of business models that are characterized by outsourcing and the use of web platforms, systems and mobile apps.
These changes are transforming the way that firms operate and introducing new types of services. Some of these are designed to improve the quality of employees’ lives by providing services such as entertainment, fitness, education and daycare. Other services are designed to enhance the functionality and value of goods by adding new features and improving their quality.
One example of a business-to-business service is the sale of materials that are needed for the manufacture of a good. For example, a car manufacturer performs B2B transactions with wholesalers to buy the tires, rubber hoses and other components needed to build cars. Other examples of business services are logistics, such as warehousing and transportation services, as well as marketing and inter-departmental communications.
Those who work in the field of business services need to have strong communication and interpersonal skills. They should be comfortable working in a fast-paced environment and have the ability to adapt quickly to changing conditions. In addition, they should be able to handle pressure and work long hours as many jobs in this industry require. However, if you are not willing to work hard and have a flexible schedule, this is not the career for you.