Digitalization of the economy: objective reality

Abstract

The article addresses the urgent issue of the economy’s digitalization. It examines why some digital transformation options are more effective and the barriers that prevent business processes from being successfully digitalized. The authors examine the advantages and disadvantages of the current digitalization process and how it affects the innovation economy overall. They discuss the risks and difficulties that must be resolved at different governance levels. The article separately studies the modern economy’s most innovative industries, whose success depends on digitalization processes, and the primary issues that could prevent value chains based entirely on digital technologies from being established. Based on the findings of the examination of well-established digital transformation strategies, both domestic and foreign, it is determined that a methodical approach must be used to evaluate all of the company’s assets at the initialization stage. This is because a partial use of innovative technologies, particularly when combined with undertrained staff, will divert resources and ultimately lessen the organization’s overall competitive advantages. We can conclude that it is essential to align national digitalization strategies with the requirements of common standards. This conclusion is supported by examples of the digital transformation of global technological value chains and successful digital transformation scenarios drawn from existing research and the complementary assets theory.