Business services are the tasks and activities that help a business perform its trade. This includes banking, warehousing and marketing. It also includes inter and intra-departmental communication, as well as specialized tasks such as labeling, order entering and fulfillment, and performing light assembly.
This type of service is often performed by a dedicated group or department within the organization. This is because the work does not create a tangible product, but rather supports the operations of the company. For example, a firm may need to hire interpreters or translators for seminars, conversations and meetings with clients or customers who speak different languages. This type of business service helps to remove language barriers and encourage inclusion.
Another example of business services is technical support for computer or network issues. Companies may need to hire workers that are skilled at troubleshooting tech problems in order to keep employees productive and avoid downtime.
The business-to-business service industry is one of the fastest growing sectors of the economy, accounting for 11% of European GDP. The sector faces challenges, including poor productivity and legal barriers, but EU internal market legislation and policy actions are designed to address these issues and stimulate competitiveness.
The key to success in the business service industry is the ability of managers to understand and appreciate the differences between their own companies’ business services and those of other firms. To be successful, they must have a clear tool kit for managing the business service model and an understanding of how it differs from the product model.