Business services are activities or solutions that support the core functions of a company. They don’t produce any physical products, but rather help businesses improve their productivity and efficiency and stay competitive. Examples of business services include IT services, consulting services, accounting, marketing services, insurance services, and more.
The business services industry has significant growth potential, particularly in emerging markets and countries. However, some of the biggest challenges facing this industry are lower than average productivity and persisting legal barriers. The EU is working to address these issues through new legislation and policy actions.
Unlike tangible goods, business services are intangible and can be delivered either physically or digitally. They can also be provided by one company or by a network of companies. These companies can be small, such as a hair salon or massage business, or large, such as an airline or hotel chain. In addition to their intangibility, business services can be delivered over long distances and are often complex. This makes them difficult to manage and can lead to inconsistencies in service delivery.
While the definition of business services is relatively straightforward, the actual implementation of a business service management (BSM) program can be challenging. BSM aims to align IT services with business goals, which can be difficult in large organizations with diverse systems and processes. It also requires a shift in mindsets and culture. This can be especially challenging for IT departments and business stakeholders who have been operating in siloes. Ineffective communication and misalignment between these groups can lead to inefficiencies, inconsistencies, and duplication of efforts.
A BSM program begins with a comprehensive service catalog that outlines all available IT services and their corresponding business impacts. This catalog serves as a central reference point for both IT and business users, facilitating better communication and decision-making. It also helps to streamline compliance and governance processes by providing comprehensive visibility into IT services and their performance.
The BSM approach has many benefits, including reduced operational costs, improved agility and scalability, and a competitive advantage over competitors. By outsourcing non-core functions to specialized business services providers, companies can focus on their core competencies and increase profitability.
In the era of digital transformation, the role of business services is becoming increasingly important. By focusing on customer experience and supporting internal and external customers, these services can help companies become more innovative and competitive.
When creating a business service, make sure to select a team (only available on Business, Enterprise for Incident Management, and Digital Operations (Legacy) plans). You can also add other technical services that support the business service, but it is best to keep these to a minimum. This is because any disruption to those technical services may not be immediately visible to the end user. For example, if a DNS or collector service fails, this won’t impact the availability of a website hosted by a web server that is backed up by a cloud storage provider.