The business services industry accounts for a significant share of employment and the economy in many countries. This supersector includes employment in services such as financial services, insurance and cleaning. Unlike product-oriented businesses, service businesses focus on offering skills and knowledge rather than physical products. The success of a service business depends on four key areas: people, process, technology and culture. Students interested in pursuing an Online Master of Business Administration (MBA) degree may be particularly interested in learning how to manage a service-oriented company.
As a general rule, customers cut back on services during tough economic times. This means that the cost of a service may rise, or the quality of the service may decline. It also means that the customer is more likely to substitute a service for another or to buy it from a competitor. To survive and prosper, the business service industry must provide value to its customers.
To do this, it must create and deliver digital business services that meet a customer’s functional and technical requirements. It also must develop and implement a system of engagement that simplifies how customers access and transact with these services. This system of engagement typically consists of a service catalog and a self-service portal. It must also include incident and request management, and it must have a way to create, maintain and dispense digital business service knowledge throughout the lifecycle. It should also have a process for measuring service effectiveness and efficiency, and it must have a way to identify and implement service improvement plans in response to those measurements.