What Are Business Services?

Business services are intangible goods that businesses provide to other organizations for a fee. These services may include warehousing, banking, marketing and inter and intra-departmental communication. They can also include specialized business services, such as information technology (IT) services and security.

What are the differences between goods and services?

Goods can be stored for future use. They are physical products that can be purchased and sold. Service businesses cannot store their services for future use because they are intangible. They must be provided when requested or at least within a reasonable timeframe.

How can business services improve the quality of life for employees?

For example, a company may hire a caregiver to host an in-office day care so employees can get a better work-life balance. This type of service can save time and money for the company while providing a safe, comfortable environment for employees.

Insurance is a service that reduces the cost of a company’s liabilities and protects against losses that could result from employee injuries. This service is often a must for companies of all sizes as they may need to cover their employees in the event of an accident or illness.

Real estate is another important business service that helps companies find space to rent or lease. These services are offered by agents or firms and include finding workspaces as per the company’s needs and negotiating rental agreements.

Utility service is another common business service that provides water, electricity and gas to companies. This is necessary for businesses to run properly and safely.

Software services are another common business service that upgrades features and adds security to computers and other devices. These services offer anti-virus protection, application updates and more to help companies and individuals keep their devices secure.

A company’s infrastructure is an essential part of its business. This is why many companies outsource their IT infrastructure to professional service providers that have expertise in this area.

How can businesses create the most effective digital business services?

To ensure the effectiveness of digital business services, an organization must create a system of engagement that consolidates and simplifies how customers access them. This system should be based on a service catalog that consumers can access through a service portal. This system should also include a service portfolio management process that oversees the creation, maintenance, and retirement of services grouped by objective, capability, organization, or geography.

Practitioner insight: Create a set of use cases that describe how customers will engage with your digital business services. Involve Enterprise Architecture teams from the beginning to define how your system of engagement connects with a digital business service and the workflows for fulfillment. Once you’ve identified the use cases, assign service owners for each one. These service owners are accountable for the most critical KPIs for each service, such as number of business transactions supported and quality of service/reduction of errors. These metrics are the foundation for measuring service optimization. Start with them and then move to more granular, specific measures as your customers’ goals change.