Business services are a recognized subset of economic services. Although they differ in many ways, business services have a number of common characteristics. For example, businesses act as both service provider and service consumer. In the process of providing business services, businesses need to develop and maintain a service system. This includes the use of technology and processes to provide better services.
Intangible nature of business services
The intangible nature of business services poses a challenge to marketers. They can’t be seen or touched, and consumers can’t tell if a product is good before they buy it. To attract customers and retain them, a business must offer these services in a way that satisfies customers.
Intangible products and services are often people-intensive. They can be difficult to test or measure in advance, and are prone to errors and delays. Because of their intangible nature, they often lose customers. On the other hand, tangible products and services are guaranteed to meet customer needs.
Careers in business services
Careers in business services can be both exciting and rewarding, and are highly flexible. Many of these jobs can be completed from home or on the road as long as you have reliable internet access. Whether you are interested in working for a multinational company or helping small businesses find the best deals, there is a career in business services for you.
In business services, you can find positions in accounting, human resources, and information technology. If you are good with people and love helping people, you may want to look into a career in human resources (HR). Many jobs in this field can be done remotely and don’t require a degree in accounting, mathematics, or business.
Impact of digitalization on business services industry
The digitalization of business services industry has changed the way the services are provided to the customers and has pushed businesses to innovate. It has also prompted companies to attract knowledge workers who handle cognitive tasks. This development has also led to changes in organizational structures and practices. Kretschmer and Khashabi labeled these changes as internal process evolution and strategic renewal. Tronvoll et al. identified three main facilitators of digital transformation and suggested that the first is the availability of real-time information.
The second step to making the transition to a digital business model is to change the mindset of the company. Rather than developing solutions in silos, industrials should create a unified digital ecosystem that integrates all aspects of the business. This will enable a single team to oversee digital initiatives and act as the air-traffic control for the company. This group will drive the transformation of the company’s culture, processes, and operating model.
Growing demand for business services
Despite the challenging economic times, business services firms are experiencing a growing demand for their services. After a two-month slump, American consumers are spending again. This correlates to increased corporate profits, which indicates a resurgence in business-to-business activity. Consequently, the industry should continue to grow and see an increase in profits in coming years.
The market for business services is expected to grow at a compound annual growth rate of 6% through 2026, which provides firms with ample opportunity to position themselves for the future. Investing in the latest technologies and human capital is critical for firms to capitalize on this growth. Automation and data analytics are two key areas of focus for business services firms.