What are Business services? They are technical services that provide value to internal or external customers. They are non-transferable and require proprietary equipment. The economic value of a business service is non-quantifiable and non-transferable. In contrast to a commodity, which is not easily interchanged, business services are non-quantifiable. If you’re in the business of selling software or designing a website, you are selling a service.
Business services are technical services that provide value to internal or external customers
In a nutshell, business services are a company’s IT operations. They may include anything from verifying the availability of internet access, to website hosting and online banking to remote backup and storage. Each business service is accompanied by an associated Service Level Agreement (SLA) and terms of service. These agreements help determine the power and availability of each service. If your organization is planning to expand or reduce its reliance on external service providers, consider extending the definition of business services.
They are non-transferable
Business services cannot be transferred to another person or entity. This is because they are not tangible, which means that they cannot be stocked or stored. Furthermore, unlike products, business services cannot be exchanged for another product or service. This means that a lady who pays a beautician to do her hair cannot buy that service, which means she will have to pay again. Unlike physical goods, business services cannot be transferred from one person to another.
They are a continuum between service and commodity
In general, business services fall somewhere between commodity and service. On the pure service end of the continuum, the product is purely a service, with no physical products. In between the two extremes, are products that combine both goods and services, such as an air-conditioner that provides both a physical and a virtual service. Examples of products that fall in between the two extremes are furnaces and automobiles.
They require proprietary equipment
When you need to provide services to your customers, it is not unusual to need to install and service equipment. OEMs offer these services at discounted prices. However, the companies that provide these services also charge high fees for preventive maintenance and servicing. Not to mention the fact that these services limit your options and cause downtime. The real cost of proprietary equipment is often hidden in the fine print. So, how do you avoid these costly situations?
They are primarily sold to organizations
Businesses sell a wide variety of services to their customers. Some of these services include consulting, technology, financial services, and labor. Other businesses specialize in certain areas, such as marketing or advertising. Many businesses also provide services to other businesses. For example, many companies provide advertising, media production, and sales outsourcing. Another type of business service is manufacturing. Manufacturing firms provide products and services for companies with their own brand. A business-to-business ecommerce site is a common example of a business-to-business marketplace. And there are also engineering and design services.