Digitalisation as a Factor of Service Sector Development

Abstract

The purpose of the study is to summarise and present the main advantages of digitalisation as a factor in the development of organisations, in particular in the service sector. Research methods. The study used such general scientific research methods as generalization and systematisation (to distinguish approaches to the definition of digitalisation from previous studies), observation, analysis and synthesis (to specify the benefits of digitalisation in the activities of organisations), which allowed the authors to analyse the concept of “digitalisation” in the context of its impact on the development of service sector enterprises. The scientific novelty of the study is to highlight and actualize the main advantages of the impact of digitalisation on the development of the service sector. Conclusions. The current challenges facing the development of the service sector require enterprises and organisations to act following current market conditions, such as globalization and digitalisation. That is why digital transformation or digitalisation is becoming a priority area of their development. It is found that, in general, digital transformation is understood as the process of integrating digital technologies into all areas of business, which is manifested in fundamental changes in how business operates and how it brings value to consumers. It is determined that digitalisation is inherent in virtually every sphere of human activity, especially in the service sector and the provision of various services, as the Internet plays an important role and has a significant impact on the daily activities of service users around the world. Digital transformation helps to increase the efficiency, effectiveness, sustainability and innovation of service offerings by developing and delivering new types of services, engaging customers in the processes of creating and delivering services and improving their quality, etc. The article also examines such motivational factors for the transformation of various business structures as changes in consumer behaviour and expectations, digital shifts in companies, and changes in the competitive environment. It is established that the most active digitalisation is taking place in the public services sector. An example of such a transformation is the introduction of the Diia portal, which allows most of the needs of citizens and businesses to be met with electronic services. Digital transformation processes are also observed in education, healthcare, real estate, construction, finance, etc. The article highlights the main advantages of digitalisation as a factor in the development of the service sector, including improving the efficiency of communications with consumers, modernising information and communication technologies, expanding competitive advantages, improving the quality of services, optimising production costs and implementing improved business processes, developing digital literacy, developing the production of digital products and services, creating a positive image of the organisation in the market, etc. Digital transformation is one of the biggest trends of the 21st century, affecting a significant number of organisations moving forward.