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815. Polnoe sobranie zakonov Rossijskoj Imperii. Sobr. 1-e. - T.XXXI. - №»24686.
РЫЛОВА ЕЛИЗАВЕТА МИХАИЛОВНА - студентка Нижегородского государственного педагогического университета им. К.Минина ([email protected])
ШЛЯХОВ МИХАИЛ ЮРЬЕВИЧ - доцент Нижегородского государственного педагогического университета им. К.Минина ([email protected])
RYLOVA, ELIZAVETA M. - student of the Nizhny Novgorod State Pedagogical University named after K. Minin ([email protected]) SHLYAKHOV, MIKHAIL Yu. - Associate Professor of the Nizhny Novgorod State Pedagogical University named after K. Minin ([email protected]).
УДК 330.341 DOI: 10.24412/2308-264X-2021-6-185-189
БРЕЖНЕВ А.В., ГАЛЯС Д.В., ГЕВОНДЯН С.А.
ЦИФРОВАЯ ЭВОЛЮЦИЯ БИЗНЕСА: ПРИЧИНЫ, ДОСТИЖЕНИЯ И ВЫЗОВЫ
Ключевые слова: цифровой бизнес, цифровая трансформация, цифровизация, автоматизация, компьютеризация.
Актуальность статьи обусловлена проникновением цифровых технологий во все сферы человеческой жизнедеятельности и осознанием бизнес-сообществом необходимости кардинальных изменений в организации бизнес-процессов для успешного функционирования в цифровом пространстве. Целью статьи является рассмотрение триггеров цифровой эволюции бизнеса -от автоматизации до цифровой трансформации. В рамках статьи решены следующие задачи: предпринята попытка разграничить понятия «автоматизация», «цифровизация», «цифровая трансформация». Освещено современное состояние цифрового бизнеса, рассмотрены положительные и отрицательные аспекты процессов цифровизации, а также тенденции развития цифрового бизнеса.
BREZHNEV, A.V., GALYAS, D.V., GEVONDYAN, S. A.
DIGITAL EVOLUTION OF BUSINESS: TRIGGERS, ACHIEVEMENTS AND CHALLENGES
Key words: digital business, digital transformation, digitalization, automation, computerization
The relevance of this article is stipulated by the penetration of digital technologies into all spheres of human life and the awareness of the business community of the need for fundamental changes in the organization of business processes for successful functioning in the digital environment. The aim of the article is to consider the triggers of digital business evolution from automation to digital transformation. Within the framework of this article, the following issues were addressed: an attempt was made to distinguish between the concepts of «automation», «digitalization», «digital transformation», the current state of digital business was highlighted, the positive and negative aspects of digitalization as well as trends in digital business development were considered.
Computers have recently appeared in our lives, changing it dramatically. We have witnessed how, in a short period of time, humanity made a breakthrough in the field of IT. Most of us remember those times, when phones were of a brick size, or when personal computers with cathode monitors were in depressing grey colour. Some of us may even remember server rooms with magnetic tapes and a single command line monitor for interacting with electronics. We don't often think about the fact that the AGC (Apollo Guidance Computer) onboard computer that did all the calculations for NASA and their Apollo 11 mission (which landed Armstrong on the moon) used only 64KB of memory and a processor that ran at 43KHz (that's 0.043 MHz) per second [1]. Today people use toasters with more processing power. So, what happened in just 50 years that we do have a computer in our pockets that can run 120 million Apollo 11 missions simultaneously?
Gordon Moore and his Moore's Law are to be blamed for this. This observation, which later became a law, says that the number of transistors on a microchip doubles every two years, and the price drops by half [2]. In recent years, growth has begun to slow down a little (from 40% to 30%) [3]. Soon, transistor and processor designers will not be able to make components even smaller, and thus, the limit of binary processors will be reached. Our future will lie in quantum computers. At the moment, humanity accumulatively creates and sends ~ 1000 petabytes (this is 1 million terabytes) in total every day through the same TCP / IP protocol stack. With the imminent implementation of IPv6 and the change of the standard Internet to the Internet of Things, professions in all aspects of digital business will be much sought after. A complete connection of our homes, cars and applications to one centralized system via the Internet is not far off. By now, you can turn on the robot vacuum cleaner, set the oven temperature for warming up and lower the curtains in the apartment during a trip home on the subway. But all these systems are to be invented, developed, tested, implemented and supported by someone.
The entire business, from small to large, is trying to automate as many of its processes as possible in order to reduce labour intensity by transmitting some of the human functions to machines, hence, boost productivity, and eliminate the human error factor from as many processes as possible. It is quite logical that a business, created with one goal to make money, will try to minimize the cost aspects and maximize
the profitable ones. With the right leadership, any office or enterprise can speed up its processes and reduce costs by applying automation.
In 2020, when the COVID-19 pandemic broke out, many companies were forced to relocate their employees to remote work, and most retail facilities were closed, everyone understood the importance and benefits of digital business. Most of the stores that did not even have a page on social networks began to actively develop in the digital environment. Hence, the digital environment has become the only link among all the stakeholders. Therefore, it is important to differentiate the following processes: automation, business digitalization and digital transformation.
Digitalization is the introduction of digital technologies into a specific business process of an organization, aimed at increasing its efficiency. In turn, digital transformation is an end-to-end comprehensive transformation of the entire enterprise, its products, business and operating model of the organization, which is achieved through the introduction of modern digital technologies and is aimed at increasing the value of the company. Digital transformation is not just about introducing digital products or automating individual workflows. First of all, this is a change in the approach to the development, delivery of products and services to the user, interaction with customers, changes in the structure of the organization, development strategy, corporate culture, and this is applicable not only to the IT field, it is a flexible change in all business processes of a company. So, digital transformation is a global process that affects all the aspects of the economy [4]. In the study «Digitalization as a Competitive Advantage of Russian Organizations», digitalization is defined as the introduction of digital and information technologies into the business processes of a company, and digital transformation is a business evolution that involves, in addition to the introduction of digital technologies, organizational changes [5]. According to A.V. Polyanina, T.A. Golovina, Yu.V. Vertakovoy digital business transformation is a qualitative improvement of production and business processes through the introduction of innovations and adaptation of business models to the conditions of the modern digital economy [6].
B. M. Garifullin, V. V. Zyabrikov reckon that the digital transformation of a business can take place in the external or internal environment of a company at the initiative of management [7].
Interestingly, the report «Digital Transformation Industries: Starting Conditions and Priorities» of Higher School of Economics claims that the difference between the concepts of business digitalization and digital transformation is blurred. However, in the report the term «digital transformation» is considered to be stronger in meaning and defined as qualitative changes in business processes or ways of carrying out economic activities (business models) as a result of implementation of digital technologies leading to significant socio-economic benefits [8].
Thus, the main distinguishing feature of digital transformation from digitalization is that the former can be the result of the introduction of digital technologies (that is digitalization) and implies a radical improvement of business processes, and the latter, in turn, only leads to speeding up work by simplification of business processes and working methods. The table below illustrates the differences among the abovementioned notions.
Table 1. Differences among automation, business digitalization and digital transformation
Parameters Automation Digitalization Digital transformation
Object Structural division, Organization Organization, Industry Organization, Industry
Coverage Business process, Business process group Business process, Business process group Group of end-to-end business processes
Objective Reduced labour intensity, Increased productivity Reduced labour intensity, Increased speed and quality of decision making process Restructuring organizations business processes, culture, ecosystem etc. Developing of new "digital" products /services/ models Obtaining new business opportunities
Operations performed by people Yes No or minimal human participation No or minimal human participation
In the 14th century, Europe was struck by one of the most terrible events in the history of mankind - the bubonic plague. In the next two hundred years, it claimed the lives of about 50 million people (3060% of the total population of Europe at that time). It was the waves of the plague that served as the catalyst for the industrial revolution, killing the poor and farmers and raising the price of their services.
In 2007, Sekvet Pamuk, professor of economics and economic history at the London School of Economics, published his research on the structure of wages during the plague. He found that textile workers and artisans had doubled or in some cases even tripled their wages and worked only half of the hours they worked before the plague. This increase in earnings for the poor and peasants gave them an opportunity to start saving money and move to big cities, becoming the middle class of society [9].
Currently, for those of us in the IT industry, Covid-19 might have more positive effects than for those of us outside the computer business world. Automation of processes and a stronger reliance on computerization will certainly have a good effect on future computer scientists and business people, but the whole world does not consist only of them. There are also people working in factories who are deprived of their earnings due to the fact that they are no longer needed. There are accountants and secretaries whose work will seem outdated, slow and erroneous, compared to the program created to do exactly their job. It's hard to believe that revolution is currently happening to each of us, in our jobs, in our homes and families. Obviously, the computer revolution began a long time ago, and it cannot be stopped. Business in the digital sphere means a complete rethinking of traditional views on working with clients, on partnerships and competition, and, of course, new approaches to how modern business strategies will be implemented in the current activities of companies. Hence, cardinal changes in organizations are inevitable - both external and internal.
External transformation implicates not only meeting customer expectations, but also the ability to anticipate them. Clients' demands are growing day by day and companies have to change their existing business models to stay competitive and provide relevant responses to ongoing challenges.
The traditional model of building a business - the management system and the operating model of economic activity - is mostly static and focused on slow progressive development. A quick response to changes is constrained by numerous limitations due to the nature of such a model:
- traditional vertical structure of business management and decision-making system typical characteristics of which are formalized organization, control and motivation processes, regulations and instructions;
- the complexity and awkwardness of traditional automated corporate systems;
- a traditionally conservative model of introducing innovations in change management, based mainly on traditional project methodologies (based on PMBOO K).
At the same time, implementation of such technologies as the automation of robotic processes -RPA (Robotic Processes Automation), intelligent automation, artificial intelligence - AI (Artificial intelligence), advanced analytics and big data, and simulation modeling enables to reach impressive results across all the key dimensions of business units. A favorable legal environment has been created for the development of digital business. In accordance with the Decree of the President of the Russian Federation as of May 7, 2018 No. 204 «On national goals and strategic objectives of the development of the Russian Federation for the period up to 2024» [10], the national program «Digital economy of the Russian Federation» has been devised. One of the objectives of the program is to create a system of digital economy legal regulation based on a flexible approach in each area. The federal project «Normative regulation of the digital environment», which is supervised by the Ministry of Economic Development of the Russian Federation, is dedicated to the implementation of this task.
In 2019, people faced Covid-19, a virus in the coronavirus family, which has fundamentally changed attitudes towards automated, electronic and remote systems. Businesses have moved to meetings and conferences via Zoom or Skype. Even our governmental organizations have begun a smooth migration to electronic document management. The final impact and financial changes due to Covid-19 in our lives are difficult to calculate at the moment, but if history has taught us anything, it is a dramatic change in the way people live.
The challenges faced by e-commerce during the period of the surge in sales in the pandemic include, for example, increased risks of online fraud, security problems of trade, increased logistics delays, the risk of order cancellations and unjustified price increases. At the same time, in certain segments of online trading, in the context of a pandemic, due to a drop in consumer demand, there has been a decline. These online services include, for example, services for booking accommodation and airline tickets.
Trends in the development of digital business markets imply consolidation processes. As noted in one of the studies, significant consolidation of digital business markets is observed in China and the United States [11]. For instance, in China 83.8% of the market belongs to the four largest players. A
significantly lower level of consolidation is demonstrated by the e-commerce market in Russia, where the largest companies occupy a little more than 27% [11].
Consolidation makes it possible to simplify the interaction between the selling company and numerous online trading platforms, which makes it possible to reduce the level of mutual costs. Possible positive consequences of consolidation include: lower price level; the ability to select an expanded range of products on one large online platform; simplification of the procedures for finding the right product and, as a result, reducing the time spent by the buyer on a purchase.
At the same time, it should be understood that the processes of consolidation of participants in ecommerce markets can lead not only to positive, but also to negative consequences typical for monopolized markets, which can involve, among others, the risks of unfair competition.
Thus, digitalization and the subsequent digital transformation of a business open up new opportunities such as increasing the flexibility and adaptability of a business to new economic conditions. However, while being transformed digitally businesses encounter a set of challenges and risks, the impact of which is intended to be mitigated by state support for entrepreneurship [12].
To sum up, it can be noted that, entrepreneurs understand that there is no alternative to digital transformation of an enterprise in order to maintain its market positions. Nowadays the degree of loyalty of entrepreneurs to digital transformation processes has grown significantly due to Covid-19 realities. In addition, one of the main reasons for the introduction of digital technologies into economic practice today is the requirements of customers who have already «tasted» the benefits of services rendered online, and shopping done via the Internet.
Литература и источники
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6. Полянин А.В., Головина Т.А., Вертакова Ю.В. Цифровая трансформация деятельности предпринимательских структур // Экономика. Информатика. - 2018. - №4. [Электронный ресурс] Режим доступа: https://cyberleninka.ru/article/n/tsifrovaya-transformatsiya-deyatelnosti-predprinimatelskih-struktur (дата обращения 28.11.2011)
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References and Sources
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2. What Is Moore's Law? Retrieved from: https://www.investopedia.com/terms/m/mooreslaw.asp (data obrashcheniya 03.11.2021)
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БРЕЖНЕВ АЛЕКСЕЙ ВИКТОРОВИЧ - кандидат технических наук, доцент кафедры информатики Российского экономического университета им. Г.В. Плеханова ([email protected])
ГАЛЯС ДИАНА ВИКТ0Р0ВНА - магистрант по направлению подготовки «Бизнес информатика» Российского экономического университета им. Г.В. Плеханова ([email protected])
ГЕВОНДЯН СЕРГЕЙ АРМЕНОВИЧ - магистрант по направлению подготовки «Бизнес информатика» Российского экономического университета им. Г.В. Плеханова ([email protected])
BREZHNEV, ALEKSEY V. - Ph.D. in Technology, Associate Professor of Chair of Informatics, Plekhanov Russian University of Economics ([email protected])
GALYAS, DIANA V. - graduate student majoring in Business Informatics, Plekhanov Russian University of Economics. GEVONDYAN, SERGEY A. - graduate student majoring in Business Informatics, Plekhanov Russian University of Economics.
