Unlike product-based businesses that produce physical goods, business services deliver value through intangible products and expertise. These activities include consulting, labor and other forms of assistance. Examples of business services include design services, utility services and waste management. Almost every company requires some form of business service.
Moreover, companies in the business service industry provide a lot of jobs. In the US, this sector provides more than a third of all employment. It also accounts for 11% of the EU’s GDP.
To succeed in this field, you’ll need to create compellingly designed services, and manage employees who are both consumers and producers. You’ll need to balance customer needs and expectations against your own costs and profit goals. And you’ll have to find creative ways to generate revenue – such as generating recurring payments from long-term contracts or upselling additional services.
As a result, businesses in the business service industry often have complex, dynamic, and global operations. This makes it important to use tools and techniques such as dependency mapping, service level agreements and a common language to define and communicate what business services are needed, available, and in-use. Then you’ll be able to measure, monitor, and improve your business services.