Definition of Core Business Services
Core business services are the outputs an organization delivers to its customers. They represent the value provided to customers, fulfill the organization's purpose, and generate its revenue. Core business services are the main products of companies and organizations operating in the service sector. These services are provided by entities that do not produce goods, raw materials, or other tangible products. This includes a wide range of companies from trade, transport, finance, and education to social services, essentially covering all sectors except production, mining, and agriculture.
Key Characteristics of the Organization's Core Business Services
- Main Company Output: They represent the primary value proposition of the organization.
- Customer Focused: They are designed to satisfy customer needs or solve customer problems.
- Revenue Generation: These services are a source of revenue for the organization and contribute to its market position.
- Top of Value Chain: They are at the top of the company's value chain.
- Strategic Importance: They align with the mission and long-term goals of the company.
- Critical Inputs: They rely on essential inputs that are necessary to provide these core business services, which are crucial for the company's operations.
- Core services need support services to run smoothly
Service as the Main Product in the Service Sector
Service is the main product of all companies and organizations operating in the service sector. This means providing services to the customers and not producing goods or materials outputs. This includes a large spectrum of companies from trade, transport, finance, education to social services. That is, practically everything except production, mining and agriculture.
- The provision of services consumes inputs and resources such as finance, information, people and human labour, material and other assets
- Service (provided to the company customer) as a main product stands at the top of the company's value chain
- All the inputs that are needed to provide the service are critical for the company
Examples of Core Business Services:
The nature of core business services varies by industry:
- Retail: Product sales and customer service.
- SaaS Companies: Software development, platform delivery, and technical support for clients.
- Manufacturing: Production, quality control, and distribution of goods.
- Consulting Firms: Strategy development, advisory, and training services.