Service (economics)

In economics, a service is an intangible commodity. That is, services are an example of intangible economic goods.

Service provision is often an economic activity where the buyer does not generally, except by exclusive contract, obtain exclusive ownership of the thing purchased. The benefits of such a service, if priced, are held to be self-evident in the buyer's willingness to pay for it. Public services are those, that society (nation state, fiscal union, regional) as a whole pays for, through taxes and other means.

By composing and orchestrating the appropriate level of resources, skill, ingenuity, and experience for effecting specific benefits for service consumers, service providers participate in an economy without the restrictions of carrying inventory (stock) or the need to concern themselves with bulky raw materials. On the other hand, their investment in expertise does require consistent service marketing and upgrading in the face of competition.

Characteristics

Service

Service may refer to:

Acts of service

Religion

Service (business)

Business services are a recognisable subset of Economic services, and share their characteristics. The essential difference is that Business are concerned about the building of Service Systems in order to deliver value to their customers and to act in the roles of Service Provider and Service Consumer.

Service definition

The generic clear-cut, complete, concise and consistent definition of the service term reads as follows:

A service is a set of one time consumable and perishable benefits

Service (systems architecture)

In the context of enterprise architecture, service-orientation and service-oriented architecture, the term service refers to a set of related software functionalities that can be reused for different purposes, together with the policies that should control its usage.

OASIS defines service as "a mechanism to enable access to one or more capabilities, where the access is provided using a prescribed interface and is exercised consistent with constraints and policies as specified by the service description."

Service engineering

An enterprise architecture team will develop the organization's service model first by defining the top level business functions. Once the business functions are defined, they are further sectioned into services that represent the processes and activities needed to manage the assets of the organization in their various states. One example is the separation of the business function "Manage Orders" into services such as "Create Order," "Fulfill Order," "Ship Order," "Invoice Order" and "Cancel/Update Order."