Service firms are now interacting with customers through a multitude of channels or touchpoints. This progression into the digital realm is leading to an explosion of data, and warranting advanced analytic methods to manage service systems. Known as big data analytics, these methods harness insights to deliver, serve, and enhance the customer experience in the digital marketplace. Although global economies are becoming service-oriented, little attention is paid to the role of analytics in service systems. As such, drawing on a systematic literature review and thematic analysis of 30 in-depth interviews, this study aims to understand the nature of service analytics to identify its capability dimensions. Integrating the diverse areas of research on service systems, big data and dynamic capability theories, we propose a dynamic service analytics capabilities (DSAC) framework consisting of management, technology, talent, data governance, model development, and service innovation capability. We also propose a future research agenda to advance DSAC research for the emerging service systems in the digital marketplace.