Business services are activities that support a company’s operation, but do not produce a tangible product. These include marketing, information technology and other miscellaneous help businesses may need. They are considered the tertiary sector of an economy, while the primary and secondary sectors involve creating or distributing physical goods. The types of work performed in this industry are as varied as the businesses themselves, ranging from consulting to providing transportation and logistics.
The most common types of Business services include administrative, management, human resources, information technology, security and transportation. All of these services are crucial to a company’s success, but each requires a different skill set to perform effectively. For example, an administrative assistant could be responsible for coordinating travel or handling office expenses, while an IT manager might handle system upgrades and oversee IT security. A transportation or logistics professional might manage warehousing, freight transport, and shipping. Similarly, a security employee might handle building access control, and an IT professional could focus on software development and implementation.
Many people are interested in pursuing careers in Business services, as they offer opportunities to meet the needs of diverse clients. However, the work can be stressful and fast-paced, so it’s important to consider whether you have the right skills for this type of career. Those interested in Business services might need to have strong interpersonal and communication skills, as the job often involves close collaboration with clients.
Another type of Business service is called a business-to-business transaction, which takes place between trade organizations. An example of this is when a car manufacturer makes B2B transactions with the wholesaler that supplies them with tires and rubber hoses. Compared to business-to-consumer and business-to-government transactions, B2B transactions tend to be more complex and have longer lead times.
A key challenge of service businesses is that unlike products, which can be stored and resold in the future, services are consumed at the same time they are produced. Because of this, service managers must shift their perspective from thinking about what characteristics will attract customers to instead focusing on creating the desired experiences for those customers. This approach is known as service design and focuses on four critical elements: