The Business services industry includes any company that does not produce a tangible product, such as consulting and advertising firms. It also includes the work of people who help others perform their jobs better, such as interpreters and translators. In addition, it includes workers who provide services that help companies and individuals stay up-to-date with technological devices, such as software services.
The success or failure of a service business often depends on whether the company gets four things right. These are the elements of service design, a concept developed as a core teaching module at Harvard Business School.
A key difference between service and product businesses is that in a service business, production and consumption are simultaneous. That means that every interaction with a customer can affect the cost and quality of the service, even if the customer does not directly order or purchase a particular good or service. For example, a slow customer at a fast food restaurant might cause everyone else behind him to have to wait longer for their orders.
A successful service business requires employees to be able to anticipate what their customers need and then quickly and efficiently provide it. It also involves creating a system that provides consistent experiences at all locations. This can be a challenge because of the wide range of customer needs, preferences and cultures.