Business services are the activities that benefit companies without supplying physical products. They are often essential for large businesses who need to keep up with production, safety, cost and convenience demands.
Service industries are a vital element in the European economy, and they contribute to about 11% of GDP. The industry includes a range of sectors including information technology, engineering, architecture, legal and employment services.
The nature of the industry has changed significantly over the years. Some of the biggest changes include increased affluence, an increasingly busy work force, and a growing trend toward personal service businesses.
When managing a service-oriented company, managers need to learn a different way of thinking about strategic management. They must move away from the traditional product-oriented approach to a customer-centered approach. This involves changing the language they use to talk about their business.