The emergence of digitization, automation, and artificial intelligence has transformed service delivery, allowing businesses to increase productivity, tailor client experiences, and provide cutting-edge solutions. The delivery, use, and accessibility of services are changing in various service sectors due to innovations. Among them, healthcare, education, and finance have received considerable attention in recent years. To synthesize prior research on innovations in the service industry, the chapter attempts a thematic, sentiment, and bibliometric analysis of the research domain. For the analysis, data was extracted from the Scopus database and was filtered by application of inclusion-exclusion, with the use of NVivo and Bibliometric software VOS viewer. Most productive and influential articles, authors, journals, and affiliations were recognized. Thematic mapping and trend analysis revealed past and present research subdomains that were used for the prediction of future research agendas.
Top1. Introduction
The digital era has appeared in a transformative wave of technological advancements, reshaping how we live, work, and interact. By fostering an innovative culture, leveraging digital capabilities, and staying attuned to market trends, organizations can position themselves as industry leaders and seize the opportunities presented by the digital era. In the modern era of cutthroat competition and global cooperation, achieving flexibility and adaptability has become imperative for business survival. Amid the digital revolution, companies must navigate between two distinct strategies: a closed approach that relies on internal capabilities and a more open system that leverages external resources to meet evolving market demands. This delicate balance is essential for successful digital innovation (DX) in today's rapidly changing environment. To understand deeply, we can opt for a 2 × 2 typology, classifying firms into four types based on their collaboration scope and innovation approach. The operational innovator (Type 1) focuses on internal efficiency and productivity, employing defensive innovation strategies. The technological innovator (Type 2) collaborates widely while embracing technologies like IoT and AI. The competitive innovators (Type 3) prioritize customer value creation and delivery through aggressive innovation, while the transformative innovators (Type 4) build open digital networks for business model innovation (Park & Hong, 2022). The rapid progress of digital technology has opened up new possibilities for enhancing transparency in the value chain. Visual management, a fundamental Kaizen technology in the IoT era, is crucial in navigating abundant information. By visualizing data and embracing digital tools such as IoT, AR, VR, and more, businesses can expand their understanding of processes, detect abnormalities, and implement effective countermeasures (Hodapp & Hanelt,2022).
Moreover, as visual management evolves, integrating other senses like hearing, touch, smell, and taste becomes essential to develop a holistic approach to problem-solving and decision-making. By honing all five senses, businesses can achieve safe, high-quality, and efficient operations, ensuring sustainable growth and resilience in an ever-changing landscape of the digital era (Murata, 2019). Integrating digital technologies provides unprecedented insights into human behavior, enabling targeted influence through microtargeting and nudge tech. This empowers businesses to tailor value propositions and communication strategies and launch innovative products and services (Pochenchuk et al., 2018).
Rapid innovation has defined this era, with breakthroughs in computing power, connectivity, and data analytics leading to a wide array of novel applications and solutions (Zhang et al., 2022). Several vital technological enablers have fuelled the pace of innovation in the digital era. These include artificial intelligence (AI) and machine learning advancements, which have unlocked new possibilities in data analysis, natural language processing, and predictive modeling. The proliferation of the Internet of Things (IoT) enabled billions of devices to connect and share information, creating intelligent environments that optimize efficiency and enhance user experiences.
Fintech startups have revolutionized payment systems, lending, and personal finance management in the financial sector, while blockchain technology has opened up possibilities for secure and transparent transactions (Cai,2018). Healthcare has witnessed significant advancements through telemedicine, personalized medicine, and wearable health devices, improving patient care and outcomes. In the education sector, online learning platforms have expanded access to knowledge and skills, making education more inclusive and flexible as shown in Figure 1.
Figure 1. Innovations in the digital era (generated by the author using generative AI)