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17OPTIMIZATION ALGORITHM FOR STRATEGIC MANAGEMENT DECISIONS
Danishev Doniyor Danishevich
Expert in Strategic Transformation of Large Enterprises, Business Expert https://doi.org/10.5281/zenodo.10511068
Abstract. This research, conducted by a sole author within the digitalization of the Uzbek industrial sector, focuses on strategic management and optimization of business processes in industrial enterprises. The main methodology of the study is an analytical approach with an emphasis on the transition of enterprises to active use of digital technologies. The findings provide valuable data for developing tools to modernize production processes in science-intensive enterprises. The author develops a unique approach to analyzing the digital economy and proposes algorithms for solving current problems of digitalization, particularly in science-intensive production. The study is significantfor scientific understanding of digital transformation and for developing strategies to implement digital technologies in this sector with the aim of sustainable development and increased competitiveness.
Keywords: digital economy, digitalization, business models, business processes, industry, strategic management, management.
Introduction. In the context of complex socio-economic and geopolitical conditions, the country faces important challenges, the key among which is the integration of digital technologies into science-intensive enterprises. This process directly affects the country's international positioning and the strengthening of national security. The digitalization of the industry acquires strategic importance, contributing to the redefinition of economic and political frameworks of the state and strengthening its geopolitical status [1].
The application of digital innovations allows local enterprises to improve their competitiveness on the international stage, stimulating exports and the development of the national economy. The implementation of digital solutions in the corporate sector leads to improved management processes, optimization of control, and the creation of innovative products and services. This, in turn, strengthens national security through more effective control and protection of critical infrastructure.
The digitalization of science-intensive manufacturing and the integration of digital technologies into the business environment play a key role in strengthening international competitiveness and ensuring national security in the current geopolitical conditions. These measures are strategically important for the long-term development and prosperity of the country [2].
Scientific research focused on analytical analysis and management of business processes in the context of digital transformation acquires special significance. They can form the basis for creating effective tools that contribute to the modernization of production processes and optimization of corporate operations in science-intensive enterprises, as well as for developing strategies and policies aimed at implementing digital technologies.
Analysis of the Impact of Digitalization. The development of digital mass media, including the internet and mobile technologies, facilitates rapid, accurate, and efficient dissemination of data, easing the management of strategic business processes. Digitalization
implies not only technological innovations but also social and economic transformations associated with the mass implementation of technologies for data processing and exchange.
This digitalization process is a natural stage in the evolution of humanity, driven by the rapid development of information and communication technologies. These technologies not only simplify information exchange but also impact lifestyles and business methods, leading to changes in traditional approaches.
The implementation of digital solutions becomes a key element of strategic development both globally and nationally [3]. It emphasizes the need for adaptation and application of digital technologies to enhance competitiveness and stimulate economic growth. This means the opportunity for economic modernization, strengthening international positioning, and improving the quality of life of its citizens through the integration of digital innovations in various spheres of life.
Similar to many countries, the country faces the necessity of adapting to global changes caused by the digital revolution. In this context, scientific research aimed at analyzing and understanding the digitalization process acquires particular significance. It can contribute to the development of effective digital transformation strategies that will strengthen national economy and enhance its international status.
Digitalization is not limited to just improving business efficiency or enriching the information space. It plays an important role in economic growth, innovation development, and improving the quality of life of the population. The application of digital technologies can significantly improve the accessibility of education, medical, and social services, as well as foster the development of small and medium-sized businesses, creating new opportunities for entrepreneurship and innovation.
According to the decision of the Government of Uzbekistan, the digital economy is defined as economic activity based on the use of digital data [4]. It primarily contributes to the creation of an information environment that meets the information needs of the population and society, as well as the development of digital technologies and solutions.
The country is actively integrating digital technologies into various spheres of life, including education, healthcare, public administration, and business, thereby creating favorable conditions for digital transformation and economic development [5]. This strategic decision reflects the government's deliberate approach to development and confirms the importance of the digital economy in meeting the information needs of society and stimulating innovation.
The digital revolution significantly impacts the global economy, with the country being an active participant in these processes. These changes lead to the emergence of new economic sectors, necessitating the development of new management strategies and the revision of business processes. It is anticipated that the future will be characterized by the predominant use of electronic means and cryptocurrencies for transactions and payments. This is part of digital transformation, which has the potential to radically change the country's economic structure and business management methods, requiring active preparation and adaptation to the new reality.
The digital environment offers opportunities to simplify and enhance the efficiency of management tasks, transforming them into automated and cost-effective processes. This enables enterprises to maintain competitiveness in the global digital economy. Digitalization brings significant changes to the economy and management, contributing to the upskilling of the workforce, especially in science-intensive sectors, and stimulating educational programs and
training. This creates favorable conditions for innovation in industry, improving the implementation of new technologies and product development. The increased competitiveness of local enterprises, rising revenues, and demand for industrial goods are also important aspects of digitalization. Expansion of international connections and an influx of foreign capital strengthen economic position. Additionally, digitalization enhances the efficiency of strategic business process management, utilizing digital tools for analytics and forecasting.
Digital technologies play a crucial role in the strategic management of business processes, particularly in the science-intensive enterprises. They unify various aspects of the economy, fostering socio-economic stability and balanced development. Digitalization facilitates process optimization in science-intensive sectors, reduces costs, maximizes profits, and contributes to the country's GDP growth [6].
Digital transformation encompasses not just technological changes but also significant revisions in management strategy, leadership mindset, personnel management methods, and corporate culture [7]. Digital technologies offer tools for rethinking business processes and optimizing management structures, becoming a driving force for change and long-term success in the rapidly changing global economic context.
For industrial enterprises to achieve leadership in their sectors, they must be ready to respond quickly and flexibly to digital changes in business processes. This readiness will enable them to reduce costs, expedite the establishment of a sustainable market position, and foster positive changes in strategic management.
Despite the strategic shift towards digital transformation, many enterprises encounter resistance from management and staff to changes. However, the rapid growth of digital technologies draws researchers' attention and underscores the importance of adapting and integrating digital technologies into business processes [7].
Digital manufacturing occupies a central place in scientific research. The transition from traditional analog methods to digital approaches in managing business processes leads to the modernization of production.
Research shows that digital manufacturing will become the standard in the near future, impacting all key business processes. This is of great importance for the entire economy, ensuring competitiveness at the global level.
If enterprises do not employ digital technologies, they risk losing their market share due to competitive pressure. The implementation of digital technologies enables them to maintain competitiveness and achieve leading positions.
Digitalization offers numerous opportunities for solving strategic tasks in innovative manufacturing. Digital manufacturing introduces changes in production operations and business processes, which can lead to a change in the business model of the enterprise.
Thus, the digital economy will continue to expand and diversify at the enterprise level. New technologies create both opportunities and risks for companies, and successful implementation of digital technologies becomes an integral part of strategic business process management.
In the current conditions, strategic management of business processes in science-intensive industries faces several relevant challenges. Among them are significant issues in the implementation and support of new technologies, requiring continuous updating and adaptation of modern tools to enhance efficiency and competitiveness [6].
Simultaneously, the role of data management increases, especially in light of the growing volume of data in production processes, requiring efficient storage, analysis, and use for improving production and making strategic decisions.
With the development of computational capabilities, including quantum computing, new prospects arise for optimizing economic processes and strengthening the competitive positions of enterprises. At the same time, the intensification of the competitive environment in the market, driven by the development of digital technologies, requires enterprises to pursue continuous innovative development.
Automation and robotization, despite increasing productivity, lead to a reduction in the number of jobs, creating the need for new approaches to training, requalification, and social protection of the workforce [8].
Cybersecurity becomes even more relevant in the face of growing risks of cyberattacks and data breaches, requiring enterprises to pay special attention to protecting their information infrastructure.
Mass digitalization also necessitates the revision and adaptation of legislation, especially in the context of regulating digital processes and data protection. This implies the need for investments in developing the legislative base and ensuring data security. These challenges require a comprehensive approach and coordinated efforts from the state, educational institutions, and the business community for successful adaptation and development of the digital economy.
The concept of Industry 4.0, encompassing a wide range of innovative technologies and management methods, becomes a key element in modern science-intensive industries [2].
This concept includes not only technological aspects but also changes in organizational culture, personnel management, and strategic planning [9] .
The implementation of Industry 4.0 in the country could have a significant impact on the labor market and productivity levels, offering increased efficiency and new opportunities for the manufacturing economy [10].
Digital transformation in manufacturing, especially in complex sectors, requires addressing issues related to automation, the use of data from internet-connected devices, and in-depth data analysis, which will help enterprises adapt to new challenges.
The issue of technological lag can be overcome through the implementation of digital technologies, stimulating economic growth.
Strategic planning and management in the context of digital transformation require a revision of approaches, including changes in products, production economy, consumer demand, and value creation. Organizations must adapt to new market requirements and actively use digital innovations [4] [11].
Effective management of business processes in the context of digital transformation requires an integrated approach that considers both internal and external factors affecting business. This helps in making informed strategic decisions and successfully adapting to changes.
Thus, Industry 4.0 offers for the country opportunities to close the technological gap and stimulate economic growth through innovation and digital transformation [6]. For the successful implementation of this strategy, a combination of efforts from business and the state is necessary to create a supportive environment and develop infrastructure for the digital modernization of science-intensive manufacturing sectors.
Algorithm
Fig. 1. Algorithm for Detecting and Tackling Strategic Management Challenges in Operational Procedures amidst Extensive Digital Integration in Science-Intensive Enterprises
(Devised by the Author from Study Data) The process of managing business processes in science-intensive manufacturing in the context of digital transformation can be organized according to the following algorithm:
Initial Stage: This involves establishing standards and criteria for assessing the readiness of productions for digital transformation. This includes defining parameters for the use of digital technologies, the level of automation, and the efficiency of data processing.
Data Collection and Systematization: The next step is to gather and systematize data on current processes, equipment, personnel, and other key elements. This ensures a complete understanding of the state of production operations.
Efficiency Analysis Stage: Using the collected information and established standards, an evaluation of business process management is conducted. The goal is to identify weaknesses and determine potential improvements.
Development of Corrective Measures: Following the analysis, measures to eliminate identified deficiencies are developed. This may include the implementation of new technologies, employee training, or modification of business processes.
Final Stage: This includes continuous monitoring and control of the implementation of the introduced measures. This ensures the ability to timely adjust processes and verifies their alignment with the goals of digitalization.
This approach provides a comprehensive and systematic process of digital transformation, allowing enterprises to adapt to new conditions, optimize business process management, and increase their competitiveness in the constantly evolving market of digital technologies.
Conclusion. In conclusion, this research study in the context of Uzbekistan's industrial digitalization highlights significant advancements in the strategic management of science-intensive enterprises. It underscores the necessity of a comprehensive approach to adapting to the digital economy, encompassing the establishment of standards, data collection and analysis, evaluation of management efficiency, implementation of improvements, and continuous monitoring. Integration of modern digital solutions is seen as a viable means to overcome technological lag in the manufacturing industry.
Furthermore, this study underscores the paramount importance of digital transformation for Uzbekistan's national economy, enhancing its global competitiveness. It is important to note, however, that successful transition to a digital economy necessitates concerted efforts from both the government and the business community. Collaborative actions should be directed towards creating the requisite infrastructure and a supportive environment. These steps are imperative for enabling science-intensive enterprises not only to address their current strategic objectives but also to effectively adapt to the rapidly evolving digital landscape.
The concept of Industry 4.0 emerges as a pivotal element in bridging the technological gap and catalyzing economic development in Uzbekistan, serving as a crucial catalyst for the country's future progress. As we move forward, it is essential to recognize that ongoing research and adaptability in response to rapid digital advancements remain indispensable. This highlights the potential for innovative growth and development in industrial sector, emphasizing the enduring relevance of staying at the forefront of digital transformations.
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