Digitalization of the service economy: advantages and threats

2020 ◽  
Vol 26 (9) ◽  
pp. 111-120
Author(s):  
N. Tarkhanovа ◽  
◽  
V. Romanov ◽  
Keyword(s):  
Service Sector ◽  
Business Models ◽  
Business Processes ◽  
Digital Technologies ◽  
Digital Economy ◽  
Doing Business ◽  
New Business ◽  
Consumer Segment ◽  
Reducing Costs

Recently, the number of businesses using digital technologies has increased. The service sector is no exception. The article is devoted to the use of digital technologies in the service sector. The authors reviewed the advantages and threats of digitalization. As a result of the analysis, the concept of “digital economy” and “service sector” is clarified, and the need for digitalization is justified. The advantages obtained through the use of innovative technologies, both for the industry and for individual enterprises, are indicated. In relation to the industry, this will include: the use of new business models and forms of doing business; increasing the availability and promotion of services on the market up to the world; the emergence of new types of services; the use of control systems that replace humans. As a result of the analysis, the concept of “digital economy” and “service sector” has been clarified, and the need for digitalization is justified. For a single service enterprise, the benefits of implementing digital technologies can be expressed in: reaching the optimal consumer segment; determining the customer’s need for certain services; designing more flexible services; improving the quality of service by improving control of business processes; minimizing the time for services to enter the market; reducing costs by accelerating business processes; minimizing costs; increasing the availability of services through the dissemination of information in social networks; eliminating intermediaries in the delivery of services to the consumer and reducing costs, reducing the number of personnel performing routine operations. Digitalization provides not only the benefits but also pose a threat. These include various types of fraudulent schemes, an underdeveloped regulatory framework, a reduction in the number of employees, and changes in the labor market. As a result, there are increasing requirements for planning at the strategic, tactical and operational levels. Otherwise, the benefits of implementing digital technologies may be lost

scholarly journals Legacy Digital Transformation: TCO and ROI Analysis

2021 ◽  
Vol 12 (3) ◽  
pp. 163-170
Author(s):  
Ravi Kiran Mallidi ◽  
Manmohan Sharma ◽  
Jagjit Singh
Keyword(s):  
Return On Investment ◽  
Business Models ◽  
Business Processes ◽  
Digital Technologies ◽  
Digital Transformation ◽  
Digital World ◽  
New Business ◽  
Core Elements ◽  
Business Needs ◽  
Security Organizations

Legacy Digital Transformation is modernizing or migrating systems from non-digital or older digital technology to newer digital technologies. Digitalization is essential for information reading, processing, transforming, and storing. Social media, Cloud, and analytics are the major technologies in today's digital world. Digitalization (business process) and Digital Transformation (the effect) are the core elements of newer global policies and processes. Recent COVID pandemic situation, Organizations are willing to digitalize their environment without losing business. Digital technologies help to improve their capabilities to transform processes that intern promote new business models. Applications cannot remain static and should modernize to meet the evolving business and technology needs. Business needs time to market, Agility, and reduce technical debt. Technology needs consist of APIs, better Security, Portability, Scalability, Cloud support, Deployment, Automation, and Integration. This paper elaborates different transformation/modernization approaches for Legacy systems written in very long or End of Life (EOL) systems to newer digital technologies to serve the business needs. EOL impacts application production, supportability, compliance, and security. Organizations spend money and resources on Digital Transformation for considering Investment versus Return on Investment, Agility of the System, and improved business processes. Migration and Modernization are critical for any Legacy Digital Transformation. Management takes decisions to proceed with Digital Transformation for considering Total Cost Ownership (TCO) and Return on Investment (ROI) of the program. The paper also includes a TCO-ROI calculator for Transformation from Legacy / Monolithic to new architectures like Microservices.

scholarly journals Digitalization of the economy as a pedagogical problem

2021 ◽  
Vol 27 (4) ◽  
pp. 99-106
Author(s):  
N. B. Strekalova ◽  
O. I. Podulybina
Keyword(s):  
Professional Training ◽  
Business Models ◽  
Scientific Literature ◽  
Digital Technologies ◽  
Digital Economy ◽  
High Tech ◽  
It Infrastructure ◽  
New Business ◽  
Main Components ◽  
New Business Models

The article provides an overview of trends in the digital economy that affect the professional training of a modern specialist. The essence of the concept of digitalization and its main components are determined, the author's interpretation of this concept is given. Particular attention is paid to the signs of a digital economy: the presence of a high-tech IT infrastructure, processing of big data based on modern digital technologies, the creation of digital solutions (products, platforms), the design of new business models. A theoretical analysis of scientific literature was carried out and a list of competencies that a specialist in the digital economy should possess was identified. To confirm the results obtained, an analysis of the opinions of employers was carried out, on the basis of which the most significant competencies and professional qualities of a specialist in the digital economy were identified. Based on the results of the analysis of employers' requirements for modern specialists, the tasks of vocational education for the training of a specialist in the digital economy were identified.

scholarly journals Digital Transformation of Business Analytical Processes

2021 ◽  
Vol 8 (2) ◽  
pp. 62-70
Author(s):  
O. E. Mikhnenko
Keyword(s):  
Big Data ◽  
Business Intelligence ◽  
Business Processes ◽  
Digital Technologies ◽  
Business Environment ◽  
Digital Economy ◽  
Digital Transformation ◽  
Management Decision ◽  
Control Apparatus

Current development and management of economic activity is largely associated with the implementation of the concept of the digital economy, which poses new challenges for business intelligence. The set of tasks is formed in order to develop business intelligence so that it matches the improved management of economic subjects, and to ensure the quality of business processes when digital technologies are introduced. Improved management based on the concept of the business environment implies that monitoring principles are used to analyze the behavior of external business environment participants with the purpose to build a rational partnership relationship. The digital economy creates information opportunities in this area, as it provides the access to Big Data and their processing using Big data analytics technologies. With regard to the requirements of management, the article analyzes the behavior of elements of the internal business environment to develop a management solution to improve the effectiveness of their behavior. The high quality of the solution is provided by the information model being a highly adequate image of a particular object under control and the ability of the control apparatus to fully realize the volume of its inherent functions. Under these conditions, the digital transformation of analytical processes is based on its own information platform, which should use breakthrough digital technologies. The research uses such methods as systemic analysis to generalize the modern concepts of economic system management, development of digital technologies and their introduction into management decision-making processes.

The Benefits of New Online (Digital) Technologies on Business

2017 ◽  
pp. 1-17 ◽  
Author(s):  
Farhan Shaikh
Keyword(s):  
Process Optimization ◽  
Business Models ◽  
Business Processes ◽  
Digital Technologies ◽  
Customer Experience ◽  
Business Innovation ◽  
New Business ◽  
New Business Models ◽  
Do So ◽  
The Way

This chapter explores how digital technologies are impacting the businesses – challenging the industry leaders while enabling entrepreneurs to do so. The overall findings have been bucketed under three broad sections – Customer Experience, Process Optimization, and Business Innovation. The Customer Experience section captures the way companies are using the data from digital technologies to enhance the way they interact with the customers. The section on Process Optimization highlights the significant improvements achieved by using digital technologies for existing business processes. Business Innovation captures the transformation power of digital, through new business models, business areas, and data monetization.

CURRENT TRENDS OF DIGITALIZATION OF THE ECONOMY: PROBLEMS AND PROSPECTS OF DEVELOPMENT

2017 ◽  
Author(s):  
Nataliia Havrylenko ◽  
◽  
Iryna Tarasenko ◽  
Keyword(s):  
Information And Communication Technologies ◽  
Business Processes ◽  
Digital Technologies ◽  
Digital Economy ◽  
Influential Factors ◽  
Global Trends ◽  
Global Era ◽  
New Business ◽  
Information And Communication ◽  
Visualization Of Data

The article is described the issue of «digital economy» and highlights its role in modern economic and social development of society, in particular the ability to implement simultaneous management of all sectors of the economy; the level of formation of the digital economy in Ukraine, the main threats and opportunities of digitalization and the readiness of Ukraine to introduce and using digital technologies are studied. Analyzing the current state of Ukraine's economy and global trends in the field of digital transformation, digitalization of all sectors of the economy should become a priority for the state. The main prerequisites for the formation of the global era of digital economy are information and communication technologies, which are one of the most influential factors in economic growth and welfare. Nowadays, Ukraine is one of the European country that does not have a sufficient digital resource of its own. In recent years, Ukraine is actively forming information infrastructure as an integrated set of computers and communications equipment, telecommunications networks, databases, information technology, information and analytical centers of various levels, which aims to ensure the effect of innovative economic development. Digitization processes are extremely important for the Ukrainian economy. The digitalization is a modern stage in the development of informatization, the characteristics of which are the predominance of digital technologies for the collection, processing, transmission, storage and visualization of data. The article identifies the relationship between Internet availability and the development of the digital economy, as well as identifies the main type of Internet that affects the level of digitalization of the national economy and its quality. Analyzing the trends of the digital economy in Ukraine, it should be considered as the economy of new business processes and new markets that provide a competitive offer using the latest ICT.

scholarly journals Strategy of Digital Security of Enterprise as a Driver Digital Transformation of Economic Ukraine

2019 ◽  
pp. 201-204
Author(s):  
Tetiana Perederii
Keyword(s):  
Development Strategy ◽  
Business Strategy ◽  
Business Models ◽  
Methodological Approach ◽  
Digital Technologies ◽  
Digital Economy ◽  
Digital Transformation ◽  
New Business ◽  
Definition Of ◽  
Functional Components

Today feature of economic processes in Ukraine is the transition from “traditional” to the digital economy with the latest technology. The study of the current state of the digital economy indicates that most Ukrainian companies don’t have a clear vision of the process and quality examples of the transition to the use of digital technologies yet. This is significantly impedes the fulfillment of key priorities and directions for the implementation of state policy in the digital economy in Ukraine. Therefore, businesses need to develop strategies based digital transformation minimization of risks is not possible without ensuring digital security, based on functional components that determine the effectiveness and efficiency of management mechanism. The purpose of the article is to formulate the author’s approach to determining the digital security of the enterprise and priority areas of its implementation. The article defines the strategic approach of the features of digital transformation and the problematic issues that hinder the revision of the business strategy of most Ukrainian enterprises. A methodological approach to the definition of “digital enterprise security” is proposed – it is the security of the functional components of the enterprise in the course of economic activity in the conditions of digitalization and competition; measures and methods aimed at minimizing the external and internal risks of e-business, as well as ensuring the security of functional components. The main purpose of the enterprise digital security is to ensure the stable functioning of the business with further development in the future, which is based on the structure of its functional components. The mechanism for implementation of digital security of the enterprise is defined, which includes: regulatory legislation, basic principles, subjects of guarantee and mechanism of security, as well as objects. A mechanism for digital security has been created, which will allow to gradually develop effective management decisions in the enterprise development strategy. The main reasons hampering the process of digital transformation of Ukraine’s economy are: the undeveloped state regulatory framework for regulating the process of building the digital economy, uncertainty about the nature of interaction of participants in this process, as well as issues of development of digital technologies in order to increase the level of competitiveness, entrepreneurship and innovation. In view of the above, we consider it expedient to take the following measures in the conditions of digital transformation: to legally define the concept of “digital security of an enterprise”, its functional components, objects and entities involved in the mechanism of strategy implementation; to help encourage businesses to transition to new business models through collaborations in digital security. Keywords digital transformation, digital security of enterprise, components of enterprise digital security, mechanism for implementation of digital security of the enterprise.

scholarly journals IOT Impacts and Digital Transformation at Listed Vietnam Banks

Webology ◽  
2021 ◽  
Vol 18 (Special Issue 04) ◽  
pp. 773-784
Author(s):  
Dr. Nguyen Thi Hang ◽  
Dinh Tran Ngoc Huy ◽  
Dinh Thi Hien ◽  
Vu Quynh Nam
Keyword(s):  
Business Model ◽  
Business Models ◽  
Business Processes ◽  
Industrial Revolution ◽  
Digital Economy ◽  
Digital Transformation ◽  
Digital Data ◽  
Customer Engagement ◽  
Digital Platforms ◽  
New Business

The Industrial Revolution 4.0 based on digital technologies has led to an unprecedented change in the socio-economic model. Therefore, countries in general and Vietnam are all aiming to develop the digital economy. The concept of digital transformation of the economy or development of the digital economy in Vietnam focuses on the following basic contents: 1) Developing digital businesses; 2) Digital transformation for traditional businesses (towards digitally integrated products; transforming business models on digital platforms; changing production processes based on digital data, automation, virtualization, etc.); 3) Development of digital finance; 4) E-commerce development. Therefore, digital transformation becomes an inevitable and objective trend, supporting banks to overcome challenges, create competitive advantages, and actively adapt to the context of digital transformation. In the context of the development of the digital economy in Vietnam is taking place strongly across industries and fields, requiring banks in Vietnam to have a transformation to a new business model. In this business model, it is necessary to integrate technology in operations and digitize business processes in the direction of automation and intelligence. Thereby, banks can perform activities of providing products and services on digital platforms, effectively exploiting data, thereby increasing experiences in business resolution and customer engagement. Besides, Internet of things has connect everything through internet, therefore risk management information system of Vietnam banks is also affected by IoTs and reliable internet data can help to enhance better RMIS in commercial banks. Generally, we want to emphasize effects of IoTs and digital transformation in banks operation and new business models.

The Benefits of New Online (Digital) Technologies on Business

2018 ◽  
pp. 1070-1086
Author(s):  
Farhan Shaikh
Keyword(s):  
Process Optimization ◽  
Business Models ◽  
Business Processes ◽  
Digital Technologies ◽  
Customer Experience ◽  
Business Innovation ◽  
New Business ◽  
New Business Models ◽  
Do So ◽  
The Way

This chapter explores how digital technologies are impacting the businesses – challenging the industry leaders while enabling entrepreneurs to do so. The overall findings have been bucketed under three broad sections – Customer Experience, Process Optimization, and Business Innovation. The Customer Experience section captures the way companies are using the data from digital technologies to enhance the way they interact with the customers. The section on Process Optimization highlights the significant improvements achieved by using digital technologies for existing business processes. Business Innovation captures the transformation power of digital, through new business models, business areas, and data monetization.

scholarly journals Technology and the attractiveness of new business models in the digital economy

2019 ◽  
pp. 9-23
Author(s):  
Wojciech Paprocki
Keyword(s):  
Comparative Analysis ◽  
Business Models ◽  
Renewable Energy Sources ◽  
Digital Technologies ◽  
Digital Economy ◽  
Goods And Services ◽  
New Business ◽  
Virtual Platform ◽  
The One ◽  
New Business Models

Dissemination of new digital technologies is linked with the adoption of new solutions that give shape to relationships between those who offer goods and services in the market and their consumers. In past decades, not all new projects have been commercialised successfully, which explains why one needs to examine the reasons behind a success or failure in putting in place new business models involving elements of digital technologies. This paper discusses a comparative analysis of two cases. Rapid growth of the Californian start-up Airbnb, an operator of a virtual platform in the flat-sharing business that, on the one hand, helps people rent out their properties and, on the other hand, helps travellers find short-term lodging is an example of global success. The non-implementation of the Energy Citizen project demonstrates that, despite a number of advantages, the prosumer model in generating and consuming energy from renewable energy sources so far has fallen short of success. Comparative analysis has helped us to conclude that to be commercially successful in the digital economy one needs a virtual platform operator capable of finding a business model attractive to all operators in a selected market segment. Ensuring benefits to consumers as well as to operators whooffer their goods or services in the market is the pre-condition.

Integrated Predictive Experience Management Framework (IPEMF) for Improving Customers Experience

2022 ◽  
Vol 12 (1) ◽  
pp. 0-0
Keyword(s):  
Feedback Loop ◽  
Business Models ◽  
Business Processes ◽  
Digital Technologies ◽  
Customer Experience ◽  
Digital Transformation ◽  
Management Framework ◽  
New Business ◽  
The Impact ◽  
New Business Models

Enterprises are adopting digital transformation with an exponential rate to drive growth through new business models and the use of digital technologies. Digital transformation is a business imperative rather than technology imperative. Hence, customer experience during and post-transformation is key to the success of the digital transformation. The present paper proposes an Integrated Predictive Experience Management Framework (IPEMF) for improving customer experience. IPEMF is- a structured and methodological business processes centric connected experience framework with the customer at the centre. The uniqueness of IPEMF is that it seamlessly integrates business processes, technology, organisation, and customer behaviour. It is agnostic of the business vertical or the geography. The framework puts forth an approach to predict the impact on customer experience proactively and provides a feedback loop to help continuously improve the experience. IPEMF helps enterprises build intuitive, trusted relationships and hyper-personalised customer experience through the customer journey.

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