L.E.K’s Business Services Model for Profitably Crafting a Business
Business services are intangible goods and services that organizations use to help them achieve their goals. These include IT, banking, insurance, legal, and transportation services that help businesses function smoothly.
Business Services perform:
Using a broad range of expertise and sector insights, L.E.K helps companies in this industry create competitive advantage by developing scalable business models that satisfy evolving regulatory and environmental requirements, while generating attractive ROI for shareholders. These services span the entire value chain, including supply, delivery and operations.
The service model for profitably crafting a business is based on four critical elements: the soundness of the product, its management, the customer experience and scalability. These core features of the business can be combined into a single, unified framework that managers can use to ensure their service offerings are robust, sustainable, and profitable.
This model can be used to guide decisions about business strategy and product development, marketing and sales, and organizational structure. It can also be used to evaluate the performance of existing business units or to develop new ones, and it can help executives make better-informed decisions about business investments.
Many service industries have a strong scalability factor, allowing them to scale up or down quickly as business needs change. This enables a service business to respond to changes in market demand, technology platforms and other factors that affect profitability and growth, as well as minimize risk.
For example, companies can hire delivery services to deliver essential supplies directly to their workplaces or customers, saving them time and money. They can also hire real estate agents to find offices or stores for rent and arrange rental agreements.
Another type of business service is maintenance, which includes fixing malfunctioning appliances or equipment and ensuring company properties are maintained properly. This service helps prevent code violations and ensures employees have access to clean and safe workspaces.
Other services are less tangible, such as security, where professionals provide protection for companies and individuals against unauthorized or illegal activity. These professionals can also provide pest control, which is needed to protect against rodent infestations or other pests that can cause health problems.
These services can be delivered in person, through mail or by phone. Some are provided by local service companies, and others are offered through online platforms.
A large number of these services are available for businesses to choose from, ranging from office cleaning and trash removal to property management. Some companies even offer childcare services to help workers balance work and home life.
The most important factor in running a successful business is the ability to efficiently and effectively deliver the products or services that consumers need. This is the foundation of any business model, and it’s the reason why the term “customer experience” has become so popular in recent years.
In the past, traditional techniques were used to craft profitable product businesses, and they have remained in place for good reason. But as new opportunities open up, such as big data and the roles of customers, these tools are being challenged. That challenge calls for fresh thinking about how service businesses operate and how they can be managed successfully.