THEORETICAL ASPECTS AND THE NECESSITY OF IMPROVING SERVICE SECTOR MANAGEMENT IN THE CONTEXT OF THE DIGITAL ECONOMY

SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 12 DECEMBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 159 THEORETICAL ASPECTS AND THE NECESSITY OF IMPROVING SERVICE SECTOR MANAGEMENT IN THE CONTEXT OF THE DIGITAL ECONOMY M.B. Maratova Karakalpak State University, Assistant, Department of Economics and Tourism https://doi.org/10.5281/zenodo.18063726 Abstract. This article examines the specific features of managing the service sector and increasing its efficiency in the context of economic digitalization. It also identifies the criteria for assessing labor potential and the main directions for its effective utilization. In addition, the article demonstrates that managing the economy through digitalization in New Uzbekistan—by encompassing all existing platforms in society—creates broad opportunities to improve performance indicators, increase the added value generated in the economy, and expand the development of e-commerce in the service sector. Keywords: service sector; digitalization of the economy; management; digital technologies; the role of the service sector in economic growth. Introduction. In developed countries worldwide, the annual growth rate of the digital economy’s contribution to economic growth is estimated at nearly 20%. In 2010, the Boston Consulting Group, based in Boston, projected that digitalization would generate revenues of approximately USD 2.3 trillion for a group of 20 countries. With sustained growth rates over the next 10–15 years, the share of the digital economy in global GDP is forecast to increase to 30– 40%. In New Uzbekistan, managing the economy through digitalization—by encompassing all existing platforms within society—has demonstrated significant potential to improve performance indicators, increase the value added generated in the economy, and create broad opportunities for the expansion of e-commerce in the service sector. The Digital Uzbekistan–2030 Strategy sets out objectives such as improving the quality of products and services through the introduction of modern information systems and software solutions; reducing costs and production disruptions; enhancing transparency in financial and economic activities; improving the regulatory and legal framework for the implementation of innovative automated management systems and software products; strengthening management information support systems, including the introduction of real-time business analytics; and increasing the share of large business entities that have implemented enterprise resource planning (ERP) systems to 90 percent by 2025. In this regard, examining the scientific and methodological foundations of these objectives is particularly relevant. Literature review. Fundamental studies on improving service sector management, economic growth, sustainable development of the service sector, enhancement of service quality and competitiveness, efficient utilization of production factors in service delivery, increasing social and economic efficiency, development of modern service industries, improvement of labor productivity, and the innovative development of the service sector have been addressed in the works of John Maynard Keynes [7], Alfred Marshall [10], Joseph Schumpeter [17], Kamil Haksever, Barry Render, Ralph Russell, Robert Merdik [9], Manuel Castells [6], and Anthony Okoye [11]. The socio-economic significance of service sector development, the description and classification of services, mechanisms for improving socio-economic efficiency in service enterprises, effective utilization of labor in organizations, enhancement of labor efficiency and productivity, ensuring service intensity, fully meeting consumer demand through improving service quality in service enterprises, as well as the factors and characteristics of service sector SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 12 DECEMBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 160 development and the organization of service processes have been examined in the studies of Arabov N.U. [1], Rubtsova N.V. [8], Vesnin V.R. [2], Yerofeeva A.P. [3], Kalmuratov B.S. [5], Ismaylov B.A. [2], and Urakov J.R. [10]. Research Methodology. In the course of the study, a dialectical and systemic approach was applied to examine economic systems and relationships in assessing economic growth across sectors and industries. Methods such as comprehensive assessment, comparative and factor analysis, statistical and dynamic approaches, as well as grouping techniques were employed. The impact of intensive and extensive factors on economic growth in various sectors and industries was evaluated, and an overall index of economic growth dynamics was determined. Analysis and results. Under the conditions of building New Uzbekistan, certain aspects of the organizational and economic mechanisms for digitalizing the service sector have been examined. However, due to the insufficient scope of research focused on enhancing the economic efficiency of organizations, enterprises, and business entities through the development of organizational and economic mechanisms of digitalization in the service sector, there is a clear need for in-depth scientific and methodological investigation in this area. In the current period, characterized by the rapid intensification of globalization processes, the content and essence of economic development are undergoing fundamental transformations. These changes are driven, in particular, by the transition of national economies to digital formats, the expansion of international trade, increased inflows of foreign capital, and the innovative advancement of the financial services sector. In this regard, the following statements by the Head of State deserve special attention: “To advance confidently toward modern development, acquiring digital knowledge and effectively using information and communication technologies is one of the most urgent tasks. This path enables us to take the shortest and most efficient route toward progress, as processes of digitalization and the use of ICT are deepening across all sectors in the current global environment.” Furthermore, it has been emphasized that ensuring macroeconomic stability and increasing the practical effectiveness of reforms in the Republic of Uzbekistan require the formation of a digital economy and its broad implementation in practice. As noted by the country’s leadership, while the development of a digital economy demands substantial infrastructure, financial resources, and labor inputs, delaying this process would be detrimental. Therefore, an active transition to the digital economy has been identified as one of the highest priorities for the next five years. The introduction of digital technologies creates opportunities to significantly accelerate economic processes; however, whether this acceleration leads to economic growth or decline depends largely on the level of human capital development. In an era marked by the rapid growth of the digital economy and the increasing value of information, society is undergoing profound changes. It is particularly important to emphasize that in a digital economy, the most valuable asset of a country is human capital and its quality. Specialists who possess deep knowledge of new technologies, are capable of applying them in practice, and can further develop existing systems are regarded as the main driving force of economic development [8]. When discussing the concept of “digitalization” in the economy (in English, digitization, meaning the conversion into digital form, and sometimes digitalization, referring to the broader process of becoming digital), it is first necessary to clarify the terminology. In its broadest sense, digitalization refers to a socio-economic transformation initiated by the widespread adoption and assimilation of digital technologies. It encompasses technologies for creating, processing, exchanging, and transmitting information. Under current conditions, the rapid development of digitalization has led to the emergence of a so-called “new economy.” Although this market sphere has not yet been fully explored, it continues to expand steadily, offering producers optimal opportunities to organize effective marketing campaigns, achieve maximum returns with minimal costs, and successfully market goods and services. For consumers, buyers, and clients, high-quality services and enhanced SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 12 DECEMBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 161 convenience are being created. These developments go beyond simple practices such as ordering meals online during busy hours, calling a taxi via mobile applications, or transferring money to relatives at a distance; they also include broader opportunities such as cross-border business cooperation, e-commerce platforms, and remote offices. The digital economy is an economic activity based on digital technologies, closely linked to e-business and e-commerce, and focused on the production and provision of digital goods and services. Digitalization facilitates global processes in several key ways:  Increased use of digital platforms leads to a reduction in the costs of cross-border transactions, enabling enterprises to communicate and interact with customers and suppliers in any country.  The positive effects of globalization, which were previously characteristic mainly of large transnational corporations, have also created opportunities for small and medium-sized enterprises to participate in international trade. Due to intensifying competition, developing countries have also gained opportunities to enhance the economic potential of their own transnational companies. However, compared to developed economies, developing countries need to address shortcomings in economic and technological adaptation and to learn how to manage the digital economy effectively, particularly in relation to cybersecurity challenges. As a result, there has emerged a need to create an ecosystem that ensures the systematic implementation of advanced innovations and appropriate business strategies in the management of modern companies operating in a digital environment [5]. Based on the theoretical considerations outlined above, the following author’s definition is proposed: the digital economy is a virtual production environment formed on the basis of digital technologies and oriented toward producing goods and services tailored to human needs. Through the digitalization of the service sector, this system enables improvements in service quality, increased efficiency of production processes, reduction of costs and technological downtime, and enhanced transparency of financial and economic operations. Moreover, the digital economy encompasses all processes and objects that can be formalized, with their management carried out through strictly logical and algorithmic frameworks. The technologies and approaches applied within this system continuously transform efficiency levels into evolving forms of knowledge, thereby expanding the space of socio-economic relations. In modern market conditions, the successful implementation of digital transformation largely depends on the level of development of digital culture, which is considered a crucial component of the transformation process. Under contemporary economic development conditions, the market for goods and services has acquired strategic importance. On the one hand, the effective functioning of this market serves as a key means of improving the population’s quality of life and overall well-being; on the other hand, it represents an essential factor for ensuring stable and expanded production activities for producers, that is, economic entities. Against the backdrop of steadily growing demand for goods and services, measures aimed at maximizing the satisfaction of public needs constitute one of the priority directions of the socio-economic policy pursued in the country. Within this policy framework, increasing the share and functional significance of the service sector in the economy and diversifying the structure of services based on innovative technologies are regarded as urgent tasks. In particular, developing service infrastructure in rural areas—especially through the expansion of public utility services, housing construction and repair, and the processing of agricultural products—plays a vital role in stimulating economic activity at the local level. At the same time, there is a growing need to rapidly develop promising areas within the service sector, such as banking, finance, insurance, consulting, leasing, and valuation services that correspond to the real needs of the population, as well as to establish institutional mechanisms aimed at improving the qualifications, retraining, and professional development of personnel employed in these fields. SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 12 DECEMBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 162 Conclusion and recommendations. In general, digital technologies have become an indispensable factor in the activities of all participants in global economic systems, serving as an integral element of socio-economic, political, and cultural life. They constitute the foundation of modern social development and function as a strategic resource that drives development processes forward. At the same time, the Republic of Uzbekistan, alongside many developing and developed countries, stands on the threshold of a new technological revolution and a transition to a new stage of modern civilization shaped by the rapid growth of science, technology, and information flows. Under these conditions, abandoning the traditional economic model and gradually transforming it into a digital economy based on modern information and communication technologies and high intellectual potential is emerging as one of the most pressing strategic tasks. Such a transformation not only accelerates economic growth but also directs the entire socioeconomic structure toward an innovative trajectory, enhances global competitiveness, and serves as a crucial factor in achieving sustainable development. REFERENCES 1. Арабов Н.У., Артиков З.С. Сервис корхоналарида хизмат кўрсатиш сифатини ошириш. Инсон капитали ва ижтимоий ривожланиш журнали//Самарқанд, СамДУ, № 1, 2021, 153-164 б. 2. Веснин В.Р. 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