Business services are intangible activities that assist business operations without delivering any tangible products. These can be internal or external to a business and include IT, marketing, accounting, etc. In recent years, technology and digitalization have changed the way Business services operate, and they continue to evolve in response to changing customer needs and demands.
The core of service business management is understanding how to develop and deliver a customer experience that generates sustainable profit growth. To do that, managers must make a fundamental shift from product thinking to service thinking, which requires new tools and new ways of working.
Intangibility – Because they are not tangible, Business services are non-physical and cannot be stored like inventory for later use. Production and consumption of a service are also inseparable, as the former must take place before the latter can occur.
Efficiency – Business services can be very effective at improving overall productivity for a business, as they allow a company to focus its efforts on the most valuable aspects of its operations. Furthermore, outsourcing can be more cost-effective than bringing in-house staff to perform a task.
B2B – Business-to-business services refer to the various types of interactions between trade organizations, such as a wholesaler and a manufacturer or a retail store and its suppliers. These services can include shipping, warehousing, value-added processing services like labeling and light assembly, order entering and fulfillment, and coordinating processes and establishing supply chains between suppliers and retailers.