Digitalization as a new way to transform conventional production methods in the natural resources sector

2021 ◽  
Vol 14 (3) ◽  
pp. 244-262
Author(s):  
Viktor M. ZAERNYUK ◽  
Chi CHANG
Keyword(s):  
Natural Resources ◽  
Industrial Development ◽  
Business Models ◽  
Systems Approach ◽  
Industrial Sector ◽  
Digital Transformation ◽  
Expert Assessment ◽  
Generation Model ◽  
Next Generation ◽  
Digital World

Subject. This article deals with the issues of implementation of digital transformation of enterprises in order to improve their core competitiveness and achieve high rates of development. Objectives. The article aims to analyze and assess the baseline conditions and opportunities for the digital transformation of natural resources sector enterprises. Methods. For the study, we used analytical, quantitative, and expert assessment methods and techniques, and the systems approach. Results. Based on a comparative analysis of the digital infrastructures of Russian natural resources sector enterprises and Chinese industrial sector enterprises, the article reveals a significant lag between Russian and Chinese enterprises in terms of IT-technology, -network, and special software supplying and upgrading. The article emphasizes the importance of training highly qualified natural resources management experts and specialists that have new information and network skills and competencies. Conclusions. The next-generation model of industrial development based on the comprehensive application of next-generation digital technologies, contributes to the creation of a digital world that is changing conventional management and business models. The necessary business management software should primarily be based on home-grown products to manage production in the natural resources sector, rather than on the software used in other economies.

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 Digital transformation: harnessing digital technologies for the next generation of services

2019 ◽  
Vol 33 (4) ◽  
pp. 429-435 ◽  
Author(s):  
Mohamed Zaki
Keyword(s):  
Business Models ◽  
Digital Technologies ◽  
Customer Experience ◽  
Digital Transformation ◽  
Data Driven ◽  
Next Generation ◽  
Content Type ◽  
New Business ◽  
Market Opportunities ◽  
New Business Models

Purpose The purpose of this paper is to discuss digital transformation and its four trajectories – digital technology, digital strategy, customer experience and data-driven business models – that could shape the next generation of services. This includes a discussion on whether both the market and organizations are all ready for the digital change and what are the opportunities that will enable firms to create and capture value though new business models. Design/methodology/approach Providing services is a proven and effective way to secure a competitive position, deliver long-term stable revenues and open up new market opportunities. However, it is also clear that some organisations are struggling to digitally transform. Therefore, the commentary provides a brief insight into how firms explore the possibilities of digital transformation and navigate these uncharted waters. Findings Today’s digital technologies affect the organisation outside and in, enabling the creation of new business models and transforming the customer experience. The incumbents are acutely aware that they need to transform strategically – to build new networks and value chains. Originality/value This commentary extends earlier work exploring the digital disruption within services to highlight a number of connected areas: the challenges and opportunities of digital transformation at a strategic level, as well as understanding and enhancing the customer experience and seeing how new data-driven business models can underpin service transformation.

scholarly journals The analysis of the digital transformation trends in the Ukrainian economy

VUZF Review ◽  
2021 ◽  
Vol 6 (4) ◽  
pp. 136-144
Author(s):  
Hanna Snopenko ◽  
Olga Balueva ◽  
Olena Tanchyk
Keyword(s):  
Development Strategy ◽  
Business Models ◽  
Business Processes ◽  
Industrial Revolution ◽  
Digital Economy ◽  
Digital Transformation ◽  
New Production ◽  
Fourth Industrial Revolution ◽  
Digital World ◽  
The World

The consistent evolution of technology around the world creates new production tools and opportunities for different economic agents. As a result, new economic structures are emerging as a result of industrial revolutions. Today, the digital economy is seen as the backbone of the fourth industrial revolution, as there is a clear shift in the underlying technology and signs of a technological and economic paradigm shift. The current stage of the industrial revolution is associated with the Internet communication technologies development, which has significantly changed the technology of business processes and has been called "digitalisation". Thus, the fourth industrial revolution and the third wave of globalisation are based on the digital economy. The article explores trends in the development of the Ukrainian economy under the influence of ubiquitous digitalisation. Digital transformation changes traditional business models of organisations, allowing them to occupy profitable niches in global markets, raising the prestige of business and the state as a whole. In today's environment, the level of digitalisation illustrates the degree of companies' competitiveness and is a determining factor in development strategy. To analyse the processes of digitalisation and determine the place of Ukraine in the digital world, the article identifies and describes four zones of digital transformation, which are particular to the world economies. It is determined that Ukraine has fallen into a zone of prospective economies, where digital infrastructure is limited. Still, digital development is accelerating, indicating the potential for digitalisation to flourish, which will benefit economic recovery from the COVID-19 pandemic and long-term transformation. Ukraine's integral digital transformation index score is placed at 2.81 out of a possible 5 in 2021. It was determined that the main barriers to the digital transformation development in Ukrainian business include ineffective legislation, insufficient funding and low digital literacy of the population. However, the highest score among the index components was given to companies' overall level of digital transformation. A positive result of the survey is confirmation of increased investment in the digital technologies development in Ukraine: priority investments in this area include customer interaction, data analytics and HR management.

scholarly journals Security of Digital Transformation of the Financial Market

2019 ◽  
Vol 9 (2) ◽  
pp. 3572-3577
Keyword(s):  
Financial Market ◽  
Business Models ◽  
Personal Information ◽  
Digital Transformation ◽  
Security Systems ◽  
Corporate Networks ◽  
Digital World ◽  
Catching Up ◽  
New Business ◽  
Transformation Processes

Successful digital transformation requires paying increased attention to security. Some of the world's largest companies have been victims of cyberattacks. Internet Protocol addresses, personal information and finance are constantly at risk. In the digital world content, corporate networks of the past no longer exist. Security must be built directly into all applications. However, many companies delay the strengthening of their security systems until it is too late. According to Gartner, until 2020, 99% of vulnerabilities in operating systems have been known to IT security specialists for at least a year. This means that companies must first eliminate the existing vulnerabilities that they know. According to some estimates, almost 85% of the participants in the financial market call digital transformation the main priority for the next 3–4 years, because they see in it not only cost reduction, but also the possibility of creating new business models, new communication with the client, and, in fact, new sources of income. Recently, the financial system of Russia has been catching up with the West in terms of digitalisation and now it is developing faster than Western markets. All this suggests the need for closer attention to ensuring the security of transformation processes taking place in the financial market

The corona crisis as a catalyst for the digital transformation in the sanitary trade?

2020 ◽  
Vol 15 (4) ◽  
pp. 2-12
Author(s):  
Marcus Diedrich ◽  
Markus Peplinski
Keyword(s):  
Business Models ◽  
Industrial Revolution ◽  
Industrial Sector ◽  
Digital Transformation ◽  
Work Design ◽  
Fourth Industrial Revolution ◽  
Digital Infrastructure ◽  
The Future ◽  
Framework Conditions ◽  
Working World

The term Work 4.0 is connected with the discussion about the fourth industrial revolution, but focuses on modes of working conditions – not only in the industrial sector but also in the entire working world. The digital transformation is leading to profound changes in business models, organizations and work design. The working world of the future will be more digital, flexible and networked. The corona crisis has shifted the framework conditions with regard to communication both within the company and with customers. Many companies are becoming aware that too little money and time has been invested in digital infrastructure. The aim of this essay is to fnd out to what extent the corona crisis serves as a catalyst for the digital transformation in the specialist sanitary trade. The study carried out for this purpose leads to the result that the use of video conferences and home offces have increased and will also be used more frequently in the future. In contrast, the use of targeted multi-channel measures in the form of virtual showrooms is on the decline.

scholarly journals A Circular Economy for the Data Centre Industry: Using Design Methods to Address the Challenge of Whole System Sustainability in a Unique Industrial Sector

2021 ◽  
Vol 13 (11) ◽  
pp. 6319
Author(s):  
Deborah Andrews ◽  
Elizabeth J. Newton ◽  
Naeem Adibi ◽  
Julie Chenadec ◽  
Katrin Bienge
Keyword(s):  
Circular Economy ◽  
Business Models ◽  
Design Thinking ◽  
Systems Approach ◽  
Positive Impact ◽  
Industrial Sector ◽  
Digital Tool ◽  
Data Centre ◽  
Quantitative And Qualitative Research ◽  
The Impact

The data centre industry (DCI) has grown from zero in the 1980s, to enabling 60% of the global population to be connected in 2021 via 7.2 million data centres. The DCI is based on a linear economy and there is an urgent need to transform to a Circular Economy to establish a secure supply chain and ensure an economically stable and uninterrupted service, which is particularly difficult in an industry that is comprised of ten insular subsectors. This paper describes the CEDaCI project which was established to address the challenge in this unique sector; this ground-breaking project employs a whole systems approach, Design Thinking and the Double Diamond methods, which rely on people/stakeholder engagement throughout. The paper reviews and assesses the impact of these methods and project to date, using quantitative and qualitative research, via an online sectoral survey and interviews with nine data centre and IT industry experts. The results show that the project is creating positive impact and initiating change across the sector and that the innovative output (designs, business models, and a digital tool) will ensure that sectoral transformation continues; the project methods and structure will also serve as an exemplar for other sectors.

scholarly journals Sustainable Growth Variables by Industry Sectors and Their Influence on Changes in Business Models of SMEs in the Era of Digital Transformation

2021 ◽  
Vol 13 (13) ◽  
pp. 7114
Author(s):  
Seok-Soo KIM
Keyword(s):  
Business Model ◽  
Business Models ◽  
Group Analysis ◽  
Industrial Sector ◽  
Business Model Innovation ◽  
Digital Transformation ◽  
Sustainable Growth ◽  
Mediating Effect ◽  
Innovation Strategy ◽  
Least Squares Regression

SMEs around the world are constantly under threats to their survival and sustainable growth. This study evaluated the variables influencing the sustainable growth of SMEs in the technological evolution of digital transformation. I propose a business model innovation strategy for the sustainable growth of SMEs. Furthermore, I evaluated the variables influencing growth by industry sector and present strategies for innovation in the business model. Data were collected from 205 CEOs in six sector industries in Korea, and I investigated the effect of variables that affected the company’s sustainability when introducing digital transformation. A partial least-squares regression was used for the statistical analysis and was performed using a data group analysis. I found that the SME performance varied by industry and that technological competency had a mediating effect. The variables that most affected the SME performance were management, technology, and technical competence in marketing and innovation. This research went beyond the limitations of studying only the effects of each of the previous literature variables through causal studies linking these variables. The variables affecting the performance of the industries were found to be different. By comparing the variables that led to a difference in performance in the industrial sector, I developed a business model innovation strategy that can affect the sustainable performance of SMEs.

scholarly journals STRATEGIC DIRECTIONS DIGITALIZATION OF AGRO-INDUSTRIAL COMPLEX OF UKRAINE

2021 ◽  
pp. 24-29
Author(s):  
Derii Z. ◽  
Konoplia N. ◽  
Memetov A.
Keyword(s):  
Sustainable Development ◽  
Rural Areas ◽  
Business Models ◽  
Business Processes ◽  
Animal Husbandry ◽  
Digital Economy ◽  
Digital Transformation ◽  
Industrial Complex ◽  
Economic Sectors ◽  
Digital World

The main aspects of the essence of digitalization processes in the national economy and in particular in the agro­industrial complex is considered in the article. The vector of the study is focused on taking into account the principles of sustainability in the development of strategies for digitization of the agro­industrial complex and the risks associated with the onset of the pandemic of coronavirus disease COVID 19 caused by SARS­CoV­2. The digital transformation of society and all sectors of the economy is manifested in the transition from the industrial period and analog technologies to the era of knowledge, creativity and inno-vation. Today, digital technologies are implemented as part of business processes, their application reduces costs, increases productivity and efficiency of management decisions. The main goals of digital development for the state are to accelerate eco-nomic growth and opportunity to attract investment; development of economic sectors on the principles of competitiveness and efficiency; digital modernization of industry; development of the digital industry; accessibility to the population of the benefits of the digital world. Achieving the goals of the concept of digital economy development requires the development of a roadmap for digital transformation as a medium­term measure plan in part of digital transformations. The map should detail specific actions and periodization regarding the introduction of the latest information technologies, management changes. Digitalization in the field of agro­industrial complex is due to modern trends, namely the development of vertically integrated holding structures, inte-gration of global markets, division of markets into upstream and downstream, creation of digital marketplaces, logistics chains, environmental responsibility of business, social responsibility, use achievements of science. The digital economy orients the sphere of agro­industrial complex to the development of digital agriculture and digital animal husbandry, digitalization of rural infrastructure. The development of digitization strategies in the agro­industrial sectors is not considered as a monoprocess, this activity requires a comprehensive approach and involves a number of actions: changing business models, business processes, production processes. The implementation of digitization strategies in the agro­industrial complex will allow to achieve economic, social, environmental effects and realize a number of sustainable development goals.Keywords: agro­industrial complex, digitalization, strategy, sustainable development, rural areas, competitiveness. У статті розглянуто основні аспекти сутності процесів цифровізації у національній економіці та зокрема в АПК. Акцентовано на врахуванні засад сталості під час розроблення стратегій цифровізації агропромислового комплексу та ризиків, пов’язаних із початком пандемії коронавірусної хвороби COVID­19, викликаної SARS­CoV­2. Цифрова економіка орієнтує сферу АПК на розвиток цифрового землеробства та цифрового тваринництва, цифровізацію сільської інфраструктури. Розроблення стратегій цифровізації у секторах АПК не розглядається як монопроцес, ця діяльність вимагає комплексного підходу та передбачає низку дій: зміну бізнес­моделей, бізнес­процесів, виробничих процесів. Реалізація стратегій цифровізації в АПК дасть змогу досягти економічних, соціальних, екологічних ефектів та реалізувати низку цілей сталого розвитку.Ключові слова: АПК, цифровізація, стратегія, сталий розвиток, сільські території, конкурентоспроможність.

scholarly journals Managing the digital transformation of the industrial sector

2021 ◽  
Vol 12 (2) ◽  
pp. 43-50
Author(s):  
Oksana I. Zhityaeva
Keyword(s):  
Development Strategy ◽  
Industrial Development ◽  
Business Processes ◽  
Industrial Sector ◽  
Digital Transformation ◽  
The Internet ◽  
Management Service ◽  
Digital Platforms ◽  
Digital Services ◽  
The Creation

The article examines the issues of managing the digital transformation of the Russian industrial sector. The author notes that a new content of the industrial development strategy is currently on the agenda a digital strategy, for the development of which there are a number of prerequisites: the availability of the Internet, the use of digital services, mobile devices, and other digital technologies. The article deals with the issues of digital transformation management and the directions of its development. The author reveals the advantages of implementing digital transformation, suggests directions for implementing the roadmap for digital transformation of the industrial sector, and identifies trends in the digital transformation of the industrial sector. It is noted that digital transformation begins with the creation of a digital platform where the interests of industry, the state and science are united. Digital platforms are proposed to be organized by type of economic activity (FEA), using digital ecosystems. Digital platforms are proposed to be created in the areas of digital transformation, such as: uber-ization, the Internet of things, neural technologies, Big Data, network interaction with partners, blockchain, crowdfunding. The article reflects that one of the types of digitalization is uber-the transformation of the economy, which represents a digital service for the provision of services, the rejection of hierarchical multi-level organizational structures, to production and management structures based on the blockchain. Uber-ization of the economy is a digital management service that includes a whole range of other digital services. In this article, the author proposes a model of digital transformation of the industrial sector of the Russian Federation based on the creation of digital doubles that allow using such advantages as reducing the time of business processes, increasing the accuracy of calculations, and improving the quality of work performed. Digital transformation forms new forms of organizational, innovation and management activities, takes a leading position in the development of domestic industrial potential, new competitive advantages by improving business processes for knowledge and information management, increasing the number of technological innovations, and filling them with professional competencies.

Reflection of Digital Transformation on Corporate Sustainability and a Theoratical Perspective

2020 ◽  
pp. 231-258
Author(s):  
Cemal Zehir ◽  
Burcu Özgül
Keyword(s):  
Natural Resources ◽  
Industry 4.0 ◽  
Business Models ◽  
Corporate Sustainability ◽  
Digital Transformation ◽  
Process Automation ◽  
Digital Business Models ◽  
Industrial Manufacture ◽  
The World ◽  
Theoretical Frame

With its high process automation and digitalization, Industry 4.0 provides new opportunities to actualize more flexible, higher quality, speedy, cheap, and productive manufacturing and services. Containing numerous technology and paradigms, Industry 4.0 is expected to transform the industrial manufacture and society by aiming at economic, social, and environmental gains. The facts that natural resources are running out, lifecycle of the world is diminishing, and society has increasing anxiety on this situation. These have been the propulsive power for the development of Industry 4.0. By means of the technology and innovations that Industry 4.0 brings along, it is clear that it could also contribute to the recent popular and emphasized concept:sustainability. In this chapter, after giving information about the paradigms related with Industry 4.0, the theoretical frame of corporate sustainability and the effect of digital transformation on corporate sustainability have been evaluated. And then, constructing sustainable digital business models and focusing on value proposal have been discussed.

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