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<\/figure><\/div>\n\n\n\nUDC 004.89: 314.145<\/strong><\/p>\n DOI 10.24411\/2413-046\u0425-2020-10518<\/strong><\/p>\n THE IMPACT OF DIGITAL TRANSFORMATION ON THE ECONOMY<\/strong><\/p>\n The study was supported by the grant from the President of the Russian Federation for state support for research by young Russian scientists \u2013 Candidates of Sciences (project MK-698.2019.6)<\/em><\/p>\n Plotnikov Andrei Viktorovich<\/strong>, CSc, Management and Marketing Department, Humanitarian Faculty, Perm National Research Polytechnic University. 29 Komsomolsky Av., Perm, Russia, 614990<\/p>\n Kursat Demiryurek, <\/strong>Prof. Dr., Department of Agricultural Economics, Faculty of Agriculture, Ondokuz Mayis University, 55200 Atakum-Samsun, Turkey\u00a0<\/strong><\/p>\n Hiroko Kawamorita, <\/strong>Erasmus+ KA 2 and International Credit Mobility Coordinator, Ondokuz Mayis University, 55200 Atakum-Samsun, Turkey\u00a0<\/strong><\/p>\n Mikhailova Sofya Dmitrievna<\/strong>, Student, Humanitarian Faculty, Perm National Research Polytechnic University. 29 Komsomolsky Av., Perm, Russia, 614990\u00a0<\/strong><\/p>\n Summary.<\/strong> The paper examines modern aspects of the digital transformation of society. The prerequisites of this phenomenon, its influence on the world’s development, and the Russian economy are revealed. The methodological aspects of digital transformation and its impact on the industrial sector, the service sector, including the banking sector, are considered in this study. The necessary development paths for a leading position, creating a domestic integral model of economic transformation through the reorientation of exports, are noted. The need for state support for the digitalization of the economy is highlighted. The problems that arise during the widespread digital transformation for the economic system and society are considered separately.<\/p>\n Keywords:<\/strong> digital transformation, digital economy, Industry 4.0, informational economy.<\/p>\n Introduction<\/strong><\/p>\n The ubiquitous penetration of digital transformation today is characteristic of all regions of the world. However, each state is at different stages of development of the digital economy. The Russian economy has embarked on universal digitalization with some lag. Therefore, it is significantly inferior to the leaders. The digital transformation of industrial enterprises, the service sector, including the banking sector, makes it possible to increase the efficiency and productivity, is the basis for further changes and improvements in existing business processes. The digital transformation of the Russian economy, among other things, could become a breakthrough in the reorientation of exports. Today, the bulk of Russia’s income comprises the export of mined resources and ferrous metallurgy. It is possible to diversify and increase export revenues through the export of services, the most developing industry of which is digital technologies. As a result of the work, it was concluded that the digital transformation of the world economy in general and the Russian economy, in particular, is the primary source of sustainable and long-term economic growth.<\/p>\n The current development stage of the world community is characterized by the accelerated development and introduction of digital technologies. The widespread penetration of the Internet, mobile devices, the active transition of buyers from the offline to the online environment, is modifying existing business models, contributing to the acceleration of economic growth and the improvement of methods for managing financial flows. Today digitalization is viewed as a strategic task, which should ultimately become a qualitative breakthrough in the development of innovations, public relations, and an impetus for the economy’s real sector.<\/p>\n The digital revolution has covered almost all industries and society fields over the past decade, has been called digital transformation. Digital technologies are transforming the ways of social interaction: in addition to the real world, a virtual one has also arisen, actively competing for the time that a person spends. Cardinal changes are taking place in politics, education, everyday life, and culture. Citizens can use the services of prompt access to various government services that offer solutions to social problems and issues. [1]<\/p>\n Research methods<\/strong>. The work used an empirical research method – comparative analysis. The author compares the development of the Russian digital economy with competitors and identifies the main advantages and disadvantages of the digital transformation of the economy, both in the industrial sector and in the service sector, including the banking sector. In addition to analyzing the current state, development prospects were studied in each direction, which requires special attention, both at the state level and at the regional level. The modeling method used made it possible to visualize the objects under study and their components. For clarity of the ongoing processes, the authors have drawn up several digital transformation schemes for each of the objects of influence: business, government, and society. A diagram of the digital transformation of an industrial enterprise has been drawn up by using the tools of Industry 4.0 and a model for the change of the education system, as the fundamental digital transformation of the state and society.<\/p>\n Research results<\/strong><\/p>\n The Internet also has a significant impact on the economy on changing approaches to business activities. Almost all industries are subject to digitalization to one degree or another. First of all, the most significant changes are observed in trade, retail, and financial services, but the manufacturing sector actively uses modern technologies to reduce costs and increase productivity. Digitalization contributes to integrating both large and small regional companies into the global economy, intensifies competition in the market, and promotes the emergence and active implementation of innovations and technologies. [2] The benefits of digitalization for the population, business, and the state can be represented in Fig. 1.<\/p>\n The ubiquitous penetration of digital transformation today is characteristic of all regions of the world. However, each of the countries is at different stages of developing the digital economy, which is due to several factors. First, it is the availability of a broadband Internet connection. Internet access is often not cheap in developing countries and does not imply speed when working with online services. The second important factor is the digital skills of the population and the level of use of Internet services. This factor mainly follows from the previous one, because learning to work with digital services, online stores, and the possibilities of media content is possible only with a stable connection. The next parameter is the level of integration of information technology (IT) innovations in the business environment. As noted above, the use of digital technology can improve efficiency. The digitization of business and e-commerce is measured. When determining the development of the digital economy, close attention is paid to the possibilities of digital public services. [3]<\/p>\n\n\n\n The Russian economy has embarked on the path of universal digitalization with some lag, therefore, despite the ongoing work of state and private companies in providing access to the Internet for most of the Russian population, in other parameters, Russia is significantly inferior to the leaders. Thus, the most significant lag is observed in companies’ share with their website (43% of Russian companies versus 77% of companies in the European Union (EU) countries). Also, companies using CRM systems in their activities (10% of Russian companies versus 33% of companies in EU). [4]<\/p>\n\n\n\n Striving to reap the full benefits of digital transformation, many companies face the challenge of digital transformation. To achieve this requires creating a formulated strategy that would connect all the gaps between the objects of transformation, including technological processes, information used, personnel, and various departments. [5]<\/p>\n\n\n\n In this regard, most large companies, including the banking sector, seek to revise their management models to ensure long-term efficient operation of the enterprise. Experts offer various ways of forming these models, the most common of which is the appointment of responsible persons by the company’s management, who would create a specialized tool for enterprise transformation. [6] In the current environment, such a tool is a digital platform of a particular enterprise, developed taking into account all the business features, which would digitize production, sales, and customer service. The platform is intended not only for customers and internal use but also for other interested parties: shareholders, counterparties, partners. [7] It is precisely the increase in the efficiency of interaction of all these parties that is the most important goal of digital platforms’ functioning. Efficiency is achieved through mutually beneficial innovative development, shaping the future’s economy and continuous technological renewal. [8] Digitalization has an impact on all components of the economic order. Thus, the digital transformation in industrial production was called “Industry 4.0” and includes a wide range of trends: robotization of production, “Internet of Things,” cloud computing, big data, cybersecurity, etc. These innovations are revolutionizing established business models. [9] This process is of particular importance in developing countries, whose economies are characterized by a lack of investment in digital technologies, imperfect legal and regulatory framework, and an underdeveloped business environment. It is industrial companies that are the foundation of the Russian economy at the current stage of development. [10] The digital transformation model can be represented as the following diagram (Fig. 2)<\/p>\n\n\n\n A significant effect from the introduction of Industry 4.0 tools can be expected in production operations management. For example, in capital-intensive industries, in the extraction of gas, oil, in heavy metallurgy, new technologies will not entail a radical transformation of the business model. Still, they will only provide unique opportunities to improve the efficiency of the enterprise. [11]<\/p>\n For labor-intensive industries, the potential for digital transformation lies in improving the efficiency of the manufacturing process through the Internet of Things, in-depth analytics of large amounts of data, and maximum automation and robotization. According to experts, the most significant effect can be obtained in the manufacturing industry due to the high labor intensity of the industry and the technological lag of Russia from the leading countries in this segment. Manufacturing industries can benefit from digital transformation at all stages of added value, from the development and launch of new products to the market, synchronizing the supply of raw materials and production, and quality control and service. [12]<\/p>\n Thus, the digital transformation of industrial enterprises makes it possible to increase the efficiency and productivity of labor and is the basis for further changes and improvements in existing business processes. It is important to note that the need to develop the infrastructure of traditional production systems, renew capital assets, create high-tech industries, despite the transition to a new digital reality, remains. The introduction of the elements of “Industry 4.0” today makes it possible to increase the efficiency of industrial enterprises’ existing assets by an average of 20% by reducing the cost of raw materials, improving product quality, and accelerating the technological renewal of production lines. [13]<\/p>\n For the Russian economy to achieve leadership on the digital paradigm path, a holistic transformation model must be formed at the state level. The technologies of specific enterprises, associations, the Eurasian Economic Union (EAEU) countries and the processes occurring between the subjects must work together to satisfy customers and the market. Only this approach will maximize enterprises’ profitability, provide a high level of customer service, and build productive relationships between partners. [14] The digital transformation process has been officially enshrined in the Russian Federation since 2017 when the government approved the state program “Digital Economic of the Russian Federation.” The document sets out the state’s main tasks and interests in the formation of the national digital economy. The central structural unit of digital transformation should be regional economic complexes, the development of Information and communications technology (ICT) in which significantly differ from region to region. [15] Also, many sectors of the economy, such as agriculture, cannot ensure the modernization and digitalization of activities on their own. Integrated formations and a wide range of government support for companies and sectors intending to embark on the path of digital transformation, should play a significant role in achieving these goals. [16]<\/p>\n The digital transformation of the Russian economy, among other things, could become a breakthrough in the reorientation of exports. Today, the bulk of Russia’s income comes from mineral resources and ferrous metallurgy. It is possible to diversify and increase export revenues through the export of services, the most developing industry of which is digital technologies. [17] As noted above, in the Russian realities, the development of advanced technologies is associated with government support, especially for small and medium-sized businesses. Large companies only need growth; for example, the banking sector has sufficient funds for innovative development in the domestic economy. They can become a direct source of digital transformation or a source of funding for this process. [18]<\/p>\n Digital transformation has a significant impact on the improvement of business models in the banking sector: there is a transformation of traditional monetary transactions, Internet banking is actively used. Today, only timely innovative development is an opportunity for the sustainable functioning of commercial banks. The coming decades will see an acceleration in the digital evolution of the sector. Those structures that will most effectively manage these processes will gain an advantage in the competition. [19] The primary task of the digital transformation of banks is to understand better customer needs, based on which a pricing strategy for the population and organizations is formed, developed, considering the characteristics of a particular bank. [20]<\/p>\n Other sectors are also being digitized. According to researchers, the digitalization of the legal system is already underway, based on the use of mathematical methods and other technologies to optimize legal relations. [21] Similar processes apply to logistics systems using artificial intelligence, cognitive computing, blockchain, crowdsourcing, and other modern technologies. [22]<\/p>\n The transition to a digital society, in which the digital economy and education are the basis for development, demand the change from a traditional education system to a digital one. Educational organizations should build a personalized educational process saturated with digital technologies. This approach allows practitioners to move from developing competencies to skills in specific human abilities, for example, the ability to expertise. It is the formation of new educational results in students that will help overcome the lag in skills to solve complex problems in an environment rich in ICT. [23] The macro model of digital transformation in the education system is presented in a block diagram (Fig. 3).<\/p>\n The transition of educational institutions to work according to the new model is characterized by the emergence and constant use of the following components:<\/p>\n The need for timely inclusion in the technological revolution, the implementation of the necessary structural maneuvers in the economic and social spheres, poses an essential task for the state and society: the transition to a digital paradigm of education. [24]<\/p>\n\n\n\n Domestic companies are facing many challenges throughout the process of digital transformation. Even large corporations and commercial banks possessing the necessary financial capabilities are forced to slow down further development for several reasons:<\/p>\n After solving all the listed problems and the final transition to a digital society, a new task will arise for the state and the economy. Scientific and technological progress and the rapid development of modern technologies will resume society’s democratic development, overcoming post-socialist contradictions. [26] We are talking about the transition to a post-capitalist future. Due to the development of modern technologies, automation, robotization, reduction of working hours, citizens will be able to receive an unconditional basic income. Such initiatives and tentative ideas have already been successfully tested in several European countries. In the future, digital transformation will be able to solve the main problem of capitalism: the contradiction between social labor over the production of goods and the capitalist form of appropriation of added value.<\/p>\n Conclusion<\/strong><\/p>\n Thus, the digital transformation of the world economy in general and the Russian economy, in particular, is already today the primary source of sustainable and long-term economic growth. The potential effect of a successful transformation on Russia’s GDP by 2025 is estimated at 4-9 trillion. Rubles, which is 20-35% of the total GDP growth. In addition to increasing labor productivity and efficiency of production processes, digitalization contributes to improving citizens’ quality of life. The effects of digital transformation will be new social lifts and employment opportunities, an increase in the purchasing power of the population, convenient digital services, comfortable living conditions in cities, and social and economic security.<\/p>\n It is necessary to ensure joint efforts of the state and private companies to achieve the government’s goals for the transition to the digital economy. First of all, it is essential to ensure a sufficient volume of qualified personnel for new professions that will appear as automated production. Acceleration of innovative development requires from the state the same active and flexible regulatory policy. The state should also stimulate the population to more actively join the digital transformation process, ensuring the availability of infrastructure and increasing the digital literacy of citizens.<\/p>\n References<\/p>\n UDC 004.89: 314.145 DOI 10.24411\/2413-046\u0425-2020-10518 THE IMPACT OF DIGITAL TRANSFORMATION ON THE ECONOMY The study was supported by the grant from the President of the Russian Federation for state support for research by young Russian scientists \u2013 Candidates of Sciences (project MK-698.2019.6) Plotnikov Andrei Viktorovich, CSc, Management and Marketing Department, Humanitarian Faculty, Perm National Research […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false},"categories":[107],"tags":[185],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p7IyHt-4Ew","_links":{"self":[{"href":"https:\/\/qje.su\/en\/wp-json\/wp\/v2\/posts\/17888"}],"collection":[{"href":"https:\/\/qje.su\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qje.su\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qje.su\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qje.su\/en\/wp-json\/wp\/v2\/comments?post=17888"}],"version-history":[{"count":1,"href":"https:\/\/qje.su\/en\/wp-json\/wp\/v2\/posts\/17888\/revisions"}],"predecessor-version":[{"id":17894,"href":"https:\/\/qje.su\/en\/wp-json\/wp\/v2\/posts\/17888\/revisions\/17894"}],"wp:attachment":[{"href":"https:\/\/qje.su\/en\/wp-json\/wp\/v2\/media?parent=17888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qje.su\/en\/wp-json\/wp\/v2\/categories?post=17888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qje.su\/en\/wp-json\/wp\/v2\/tags?post=17888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/qje.su\/wp-content\/uploads\/2020\/08\/Bezymyannyj-20.png\")
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