American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 11, Dec., 2022 218 | P a g e DIVERSIFYING THE SERVICE FIELD UNDER DIGITALIZATION S. B. Bobokulov Associate Professor of the Department, SamISI Digital Economy +998941891989, ferdu_www@mail.ru Abstract This article presents the author's views on the issues of diversification of the service sector, development processes and digitalization of the sector. Also, proposals and recommendations for the digitalization of the service sector were developed. Keywords: service, service, digital, digitalization, digital economy, digital service, blockchain, cloud technologies, diversification, modernization, innovation. Introduction In the circumstances of the transition to the digital economy, the socio-economic reforms implemented in our country make an important contribution to the development of the country and serve to improve the standard of living and well-being of the population. It is appropriate to mention the service sector as one of the main locomotives in the development of socio-economic reforms. In our country, legal and economic conditions are created for the organization and development of the service industry, and preferential assistance is provided. At present, the public service sector makes a significant contribution to all aspects of economic processes. However, its effectiveness in the national economy depends on the formation and development of new social labor relations. The President of the Republic of Uzbekistan Sh.M.Mirziyoyev stated that "... it is necessary to develop and put into practice the "National Concept of Digital Economy", which envisages the renewal of all sectors of the economy based on digital technologies" [1], the economy of our country is a network and the gradual transfer of the industries to the digital technology program and the priority goals of increasing its share in the gross domestic product to at least 30% by 2030 remain one of the main tasks. The implementation of such tasks is one of the priority tasks of economic reforms, requiring the development of the service system and its diversification based on digital technologies. This is one of the urgent issues in the current transition to the digital economy. American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 11, Dec., 2022 219 | P a g e Literature Review In the process of developing new types of services, the role of digital programs and technology and ways of effective use of digital technology by managers in the implementation of services, as well as ideas on attracting investments to improve the technological level in the field of digital services are presented, as well as suggestions and recommendations were developed [3]. R.H.Ayupov, G.R.Boltaboyeva, in their textbook "Basics of Digital Economy", discuss issues related to modern e-commerce and problems that are the basis of digital economy, mechanism of transition to digital economy, several effective business models of e-commerce and e-business[4]. M.Q.Pardaev, Q.J.Mirzaev, O.M.Pardaev considered the specific characteristics of each sector and this sector the ways of evaluating and accounting in their book "Economics of the Service Sector". Also, the content of the activities of the utility service sector and the ways of their accounting are analyzed [5]. M.M. Payazov's scientific article entitled "Transformation of the service sector is a priority in managing the economy" is devoted to issues of digitization of the service sector, the role of digitization of the service sector in ensuring the quality of life of the population, the role of the state system in the transformation of the sector issues such as the digitization of production enterprises, the use of internet stores and internet banking services by the population, the analysis of the situation in the regions, the improvement of the well-being of the population as a result of the digitization of the service sector [6]. J.N. Fayzullaev's scientific article "Analysis of Scientific Approaches to the Essence of the Concept of Digital Economy" comparatively analyzed and grouped scientific approaches to the formation of the concept of "digital economy", its content and essence. The meaning of the concept of "digital economy" as an economic category was explained [7]. Research Methodology The study of this problem was studied based on the use of a number of methods, including mainly the results of monographic analysis of foreign experiences, monographic research, analysis and synthesis, systematic analysis, etc. has gained importance in revealing the possibilities of doing. Analysis and Results According to many researchers, the formation of the concept of "Digital economy" first defined by American scientist N. Negroponte. According to N. Negroponte, the digital economy as a new economic system is characterized by the fact that digital products do not have physical weight and their size is replaced by information size, the area occupied by the product is several times smaller, the resource costs for the production American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 11, Dec., 2022 220 | P a g e of electronic goods are low, through the Internet network puts forward the opinion that it has advantages such as very fast global movement of products [8]. D. Tapscott was the first to identify how new technologies and digital business strategies, together with changing business processes, can be a way to produce and sell different products and services, form a new structure of the enterprise and define effective business rules. As one of the most important results of digitalization, according to D. Tapscott’s institutional theory of the firm, include significant reduction of transaction costs, including the costs of searching for information and concluding a contract, and as a result, supply of goods and the consumer directly interact without intermediaries. By introducing innovative, digital technologies, the work of qualified personnel and improving the legal basis of the service sector, we can improve the efficiency of service delivery, develop the country's economy, and improve the well-being of the population. As we know, one of the first fronts in the development of the digital economy is the service sector. At first, the digital economy began to implement the processes of providing services to the population through the "internet of things" and "media internet" software. Due to the efficiency, low cost, system transparency, and open operation of digital technologies in these processes, manufacturers and users have attracted great interest. This situation, in turn, accelerated the process of transition of social production processes to new economic procedures, dramatically changed the internal and external processes of people's socio-economic activities, sharply prevented corruption in the system, and created the basis for an increase in its effectiveness. From an economic point of view, it can be said that the digital economy should serve to increase economic efficiency, labor productivity, and create added value in the material component of the production of social wealth, and this will become its first economic content in the economy of the information society. In this regard, according to the scientists of our country, "the digital economy, or in other words, the web economy represents a system of economic, social and cultural relations organized using modern digital technologies" [4]. opinions are presented. Therefore, the digital economy is distinguished by its vertical economic growth in the field of tangible and intangible production. Currently, our country is moving to the digital economy based on the "Development" model. In this regard, a number of works are being carried out to modernize the socio- economic sphere and digitize it. In particular, the field of information economy and e- commerce is developing rapidly (Table 1). American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 11, Dec., 2022 221 | P a g e Table 1. Volume of gross added value created in the fields of information economy and e-commerce (billion soums) [9] Indicators 2017 year 2018 year 2019 year 2020 year 2021 year Information economy and e- commerce sector 6 377,8 7 934,0 8 701,4 11 121,8 17 738,7 Information and communication technologies (ICT) sector 5 849,0 7 059,0 7 508,4 9 399,3 12 298,8 ICT production 238,3 307,3 283,7 551,2 777,1 ICT trade 281,6 240,4 299,0 261,8 381,4 ICT services 5 329,1 6 511,3 6 925,7 8 586,3 11 140,3 Content sector and mass media 518,7 767,7 928,3 1 120,6 1 511,3 Electronic commerce 10,1 107,3 264,7 602,0 3 928,6 Analyzing the data of the above table, in 2017, the gross added value created in the fields of information economy and electronic commerce was 6,377.8 billion. amounted to 17,738.7 billion soums by 2021. amounted to soum. Of this, ICT (information and communication technologies) is the leader with 5,849.0 billion in 2017. amounted to 12,298.8 billion soums by 2021. soum has achieved growth dynamics. Of this, the lowest indicator was shown by the e-commerce sector, the volume of its created gross added value in 2017 was 10.1 billion. amounted to 3,928.6 billion soums by 2021. reached a growth trend of soum. However, we can see that the share of the e-commerce sector is small. One of the main reasons for this is the fact that the industry is newly established and is receiving attention at the present time. We can see that the volume of gross added value created in the fields of information economy and e-commerce has almost tripled in 2021 compared to 2017. In our opinion, the achievement of this growth trend was achieved based on the legal, economic, social and financial conditions created by our country. At the same time, on effective organization of digital government, digital medicine, internet banking, digital education, e-commerce, e- business activities in our country conditions are created and practical results are obtained. This will lead to an increase in the share of the digital economy in the GDP in the near future, as well as an increase in the quality of services provided. During our research, we see that the digital economy has entered a decisive phase in 2017, and it is a confirmation of our opinion that half of the population of the planet is connected to the Internet. According to McKinsey Global Institute (MGI) analysis, in the next 20 years, up to 50% of the world's manufacturing and service sectors will be digitized, the scale of this process is XVIII-XIX can be compared with the industrial revolution that took place in the centuries [3]. Also, the higher the dynamics of economic diversification and growth, the greater the circulation of unique information inside and outside the country, and the more important the source of information American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 11, Dec., 2022 222 | P a g e within national economies. Therefore, the digital economy develops rapidly in markets where the number of participants is large and information technology services are widespread. Nowadays, we can see digital services in many aspects of the service industry. For example, the digitization of delivery, online sales, e-business, e-commerce, media, education, communal services, medicine, public services, banking services and other areas will increase the efficiency of the sector, increase the quality of services, increase the transparency of the system, reduce corruption. serves to eliminate. However, the lack of full digitization of the service sector is an obstacle to the full use of the sector's activities. In the context of the transition to the digital economy, digitization of services in the field of transport services, household services (hairdressing, car repair, food), real estate services, architecture, engineering research, technical testing and analysis. It leads to an increase in the overall efficiency of the display area. Digitization of this service sector by using software and technical tools such as artificial intelligence, blockchain, internet of things, 5G communication system, 3D printers, virtual reality, drones, etc. we can meet the unlimited needs and achieve economic growth by saving costs. Digitization of the above-mentioned service areas is one of the priority tasks of the current period. In this regard, the President of the Republic of Uzbekistan, Sh.M. Mirziyoyev, "…improve the quality of products and services, reduce their cost, production stoppages, and increase the transparency of financial and economic activities due to the introduction of modern information systems and software products" [2] that they stated, defines the tasks that should be implemented in the socio-economic sphere. For this purpose, it is necessary to provide financial, legal, and customs support to enterprises that bring digital technologies to the territory of our country, as well as to create conditions for investors who produce digital technology tools, to organize the activities of digital technology-based enterprises in our country. digital technology programs, providing tax incentives to producers of their goods, training existing personnel in countries with developed digital economy, training qualified personnel in higher educational institutions for digital services, meeting the standards of the time, as well as digital within the framework of public-private partnership We can achieve service efficiency and vertical growth of our country's economy by implementing such goals as forming the activity of service entities. Also, digitalization of the service sector can have the following positive advantages: – To reduce the costs of making payments for the service process; – The possibility of obtaining detailed and faster information about the provided services; – Entry of tangible and intangible goods produced in our country to the world market; American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 11, Dec., 2022 223 | P a g e – Rapid improvement of goods and services due to quick feedback (consumer opinion); – Creation of a faster, better quality, more comfortable environment in the process of service delivery; – Prevents the development of the secret economy. Conclusions and Suggestions Based on the above-mentioned points, we have come to the following conclusions and proposals for the purpose of digitizing the service sector: Firstly, increment of the volume of digital trade and improve customer service, effective use of digital technologies (blockchain technology, cloud technology, artificial intelligence, 3D technology, 5G communication system, Internet of Things) and digitalization of the service sector diversification with technologies and improvement of interaction mechanisms with customers (customers); Secondly, development of the sector by training qualified personnel in the service sector, fundamentally improving the level and quality of educational activities in the sector, retraining and improving the skills of service specialists, attracting specialists from countries with developed digital economy to the service system; Third, further development of the system of electronic payments for digital services and services, as well as improvement of the information infrastructure in the economy and finance, taking into account the possibilities of receiving and processing payments in the provision of electronic government services; Fourthly, modernization of postal and logistics infrastructure, which plays an important role in the development of electronic commerce, as well as implementation of postal and logistics services; Fifth, the support of the activities of entities operating in the field of digital services from the socio-economic point of view, and to improve the legal framework in the field of conducting electronic commerce. The implementation of these proposals and recommendations will lead to the development of the country's economy, an increase in the share of services in GDP, an increase in the well-being of the population, saving non-renewable natural resources, rapid access to the world market, and reaching the level of 30% of the digital economy in GDP by the year 2030, set by the President. References 1. Decree No. PF-6079 of the President of the Republic of Uzbekistan, Sh.M. Mirziyoyev, "On approval of the Digital Uzbekistan - 2030" strategy and measures for its effective implementation. Tashkent city, October 5, 2020, www.lex.uz http://www.lex.uz/ American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 11, Dec., 2022 224 | P a g e 2. Address of the President of the Republic of Uzbekistan Sh.M. Mirziyoyev to the Oliy Majlis on December 28, 2018 on the most important priority tasks for 2019. People's word. 2019 year. 1 count 3. Fotis Kitsios, Maria Camariotou. “Digitalization of the service innovation process: areas for use and research” https://www.emerald.com/insight/content/doi/10.1108/JHTT-02-2019- 0041/full/html 4. R.H. Ayupov, G.R. Boltaboyeva Basics of digital economy. Textbook. T.: TMI, 2020, 575 pages. 5. M.Q.Pardaev, Q.J.Mirzaev, O.M.Pardaev "Economy of the service sector". Study guide. "ECONOMY-FINANCE", 2014. 384 p. 6. Murad Maksudovich Payazov "Transformation of the service sector is a priority in economic management" http://www.pedagoglar.uz/index.php/ped/issue/view/65 7. J.N.Fayzullaev “Raqamli iqtisodiyot tushunchasining mohiyati bo‘yicha ilmiy yondashuvlar tahlili”. Axborot texnologiyalar iqtisodiyoti jurnali. Iqtisod va moliya / Экономика и финансы 2022, 1(149). 8. Nicholas Negroponte. Being Digital. – London: Hodder & Stoughton, 1995. – 243 p. http:// governance40.com/wp-content/uploads/2018/12/ Nicholas- Negroponte-Being-Digital-Vintage-1996.pdf. 9. https://stat.uz/uz/rasmiy-statistika/raqamli-iqtisodiyot https://www.emerald.com/insight/content/doi/10.1108/JHTT-02-2019-0041/full/html https://www.emerald.com/insight/content/doi/10.1108/JHTT-02-2019-0041/full/html http://www.pedagoglar.uz/index.php/ped/issue/view/65