Business Services and Shared Services

Business services

Business services are those that are essential for the functioning of a business and comprise of those connected with banking, insurance, transportation, warehousing, communication etc.

They also help in achieving the goals of the organization. These can include improving the customer-manufacturer relationship, reducing costs, or increasing output.

Shared services are when a business consolidates its support functions into a centrally managed organization, operating as a business within a business and utilizing a well-defined infrastructure to enable higher value service delivery. Common examples of shared services include human resources, finance, and IT.

The business of providing these services is known as a service business, which exchanges work performed for payment. The three major types of service businesses are business-to-business (B2B), social, and personal services.

Business-to-business is the most popular form of service, which involves companies that sell a product to a business for a flat or hourly rate. The service industry is essential to a company’s success, allowing it to achieve its objectives and improve the relationship with its customers.

In order to create a successful business, managers must understand the differences between product and service businesses. They must also understand that service designers have to shift their perspective from the characteristics of products and focus instead on the experiences customers want to have.

Managers who understand this difference can craft a successful service business that will stand the test of time. Ultimately, they will need to be able to combine the four critical elements of service design to ensure that their business is a healthy, profitable, and sustainable operation.