Despite its transformative impact, a systematic approach to Smart PSS development remains elusive. Addressing this, the study introduces a dynamic conceptual model named DHSmart and its accompanying canvas, adaptable to various contexts and technological advancements. Notably, it offers a structured approach to designing ‘Smart’ in Smart PSS, capturing the interplay between data, humans, and smart systems while directing digitalisation that achieves competitive advantage. It also serves as a unifying framework, enabling meaningful interdisciplinary contributions in theory and practice.