Business services are activities that help maintain a business. They can include consulting, marketing, transportation, warehousing, communication, waste handling and staffing. These activities are distinct from those of goods businesses because they do not produce or sell a physical product. Instead, they offer intangible benefits to consumers. Business service providers may offer their services to companies in a number of ways, including through contracts and subscriptions. Many of these services are delivered by outsourcing firms.
A business-to-business (B2B) service is one that takes place between businesses and does not involve a consumer or government entity. For example, a car manufacturer conducts B2B transactions with wholesalers to purchase the tires, rubber hoses and other components needed to build cars. The manufacturer also performs B2B services when it needs to rent space for its operations or to store raw materials.
B2B services are a vital part of the economy, and are a major component of the European Union’s (EU) service sector, which accounts for 11% of the EU GDP. In recent years, the sector has grown rapidly thanks to advances in technology and digitalization. However, the industry still struggles with low average productivity and persistent legal barriers to cross-border provision of services. The EU’s Internal Market legislation and policy actions aim to remove these barriers and enhance competitiveness in the sector.
The types of business services offered by companies can vary widely and include IT, accounting, travel, hospitality and staffing. They can also be more specialized, such as consulting or marketing services, or they may focus on specific industries such as pharmaceuticals or construction. The most common business services are information and communication, accounting and taxation, and management and administrative services.
A company’s business services can help it achieve its growth goals and remain competitive in the marketplace. By providing these valuable, intangible services, companies can increase the productivity and profitability of their operations without the need to invest in costly capital assets. This makes it important for business services professionals to continue learning how to maximize their value to companies.
Defining business services starts with understanding what customers need and then translating these needs into simple, measurable requirements. This helps identify which devices and services are most critical to deliver the desired outcome. It’s also necessary to understand how the different services and devices work together in order to provide the final business service.
The best way to understand what a business service is can be to take advantage of our extensive library of free virtual courses on Break Free Academy. These classes can help you develop skills in sales, leadership and project management — all essential to business success.
A streamlined approach to managing business services can make it easier for companies to scale their operations and meet customer demand. In addition to minimizing complexity, it can also reduce cost and improve efficiency by eliminating duplication of effort, reducing unnecessary expenditures, and optimizing resource utilization. To do this, it’s essential to start with a small set of pilot use cases that are representative of typical business services.