INNOVATIVE SERVICE MANAGEMENT: DIGITAL TOOLS, MODELS, AND MANAGERIAL PRACTICES

Abstract

In the current conditions of digital transformation and increasing global competition, service activities are becoming a key factor in shaping organizations’ competitive advantages. Service innovation management is gaining particular relevance due to rising consumer expectations regarding service quality, speed, and personalization, as well as the active implementation of digital technologies in business processes. This article examines service innovation management as a key factor for enhancing the efficiency and competitiveness of organizations in the context of economic digital transformation. The growing role of service activities in the modern economy is substantiated against the backdrop of globalization, intensified competition, and changing consumer expectations regarding service quality, speed, and personalization. The theoretical foundations of innovative service management are explored, based on the integration of concepts from the service economy, innovation and strategic management, as well as business process digitalization. The impact of digital tools and modern management models on the transformation of service processes is analyzed, including the use of CRM systems, data analytics, cloud platforms, AI-based solutions, and service automation. Their role in increasing customer value, optimizing operational costs, ensuring business process flexibility, and transitioning to data-driven management is highlighted. The managerial effects of implementing digital tools and their strategic significance for the development of service organizations are outlined. The article emphasizes the importance of developing employees’ digital competencies, fostering an innovative organizational culture, and effectively managing change as prerequisites for the successful implementation of service innovation management. Key challenges of service digitalization related to human resources, cybersecurity risks, and the adaptation of managerial practices are identified. It has been proven that a systematic combination of technological innovations, modern managerial models, and human capital development creates the basis for sustainable innovative development of service organizations in the digital economy.