A Lean Service Conceptual Model for Digital Transformation in the Competitive Service Industry

Abstract

In today's competitive service industry, the pressure to boost productivity, cut costs, and improve service quality is immense. By integrating lean principles and digital transformation, organizations can streamline processes and reduce waste. Although various lean models have been developed for different service industry, there is no universal standard. Hence, this study aims to address this gap by proposing a Lean Service Conceptual Model through qualitative research by identifying nine types of waste and seven lean dimensions. Interviews, observations, and audio-visual materials are the data collection methods used in this study. The model aligns seamlessly with modern digital technologies such as big data, the Internet of Things, blockchain, cloud computing, and artificial intelligence, making it adaptable for service organizations to excel in the digital age. The model focuses on enhancing efficiency and effectiveness while primarily reducing waste in service operations. Due to restrictions during the pandemic and the interest expressed by the informants in participating in this study, the focus is thus made on a single case study, which may lead to biased findings. However, future studies will be performed on multiple case studies to enhance the findings. Exploring and reviewing an array of best practices, techniques, and tools available for waste reduction within organizational operations is paramount.