UDC / УДК 338.436.33:004.9
TO THE QUESTION OF A DIGITAL TRANSFORMATION IN THE AGRO-INDUSTRIAL COMPLEX: DIFFICULTIES AND PERSPECTIVES
К ВОПРОСУ О ЦИФРОВОЙ ТРАНСФОРМАЦИИ В АГРОПРОМЫШЛЕННОМ КОМПЛЕКСЕ: ПРОБЛЕМЫ И ПЕРСПЕКТИВЫ
Solodovnik A.I.*, Candidate of Economic Science, Associate Professor Солодовник А.И., кандидат экономических наук, доцент Dokalskaya V.K., Doctor of Economic Sciences, Professor Докальская В.К., доктор экономических наук, профессор ФГБОУ ВО «Орловский государственный аграрный университет имени Н.В. Парахина», Орел, Россия Federal State Budget Educational Establishment of Higher Education "Orel State Agrarian University named after N.V. Parakhin", Orel, Russia *E-mail: solodovnik.alexandra@yandex.ru
The relevance and perspective of the research is caused by the formation of a complete strategy for the use and widespread dissemination of digital ecosystems in the agro-industrial complex. The article considered the difficulties and perspectives of digital ecosystems in the agricultural production. Particular attention is paid to the essence and opportunities for manufacturers in the digital ecosystem in the value chain. In agriculture there is a demand for end-to-end solutions that have specific advantages in the automated solutions for digital platforms. For example, a decrease in the resource costs, a decrease in the cost of final products, the possibility of reducing the problem of bureaucratization in obtaining state support and tax benefits, reduction of time costs when making decisions in managing an agricultural organization and agricultural production, and others. Digital ecosystems of agricultural production allow, within the value chain, to create complex highly automated production and logistics chains, covering wholesale and retail trading companies, agricultural producers and their suppliers in a single process with adaptive management Digital ecosystems are perspective directions of digital transformation not only for agricultural holdings but also for an average small agricultural producer. The potential for digital transformation and the creation of digital ecosystems for the agro-industrial complex is innovative. The reason for this is a high level of control in the value chain and decision-making in a high-risk form of production. As a result of the study, the use of digital ecosystems can transform traditional agricultural organizations into a new type of organization. This increases the profitability of agriculture, the investment attractiveness of the agro-industrial complex, employment of the rural population, the level of development of rural areas.
Key words: digital transformation, agro industrial complex, digital ecosystem, digital information infrastructure, digital platforms, value chain.
Формирование целостной стратегии использования и широкое распространение цифровых экосистем в агропромышленном комплексе представляется актуальным и перспективным. В статье анализируются проблемы и перспективы цифровых экосистем в аграрном производстве. Особое внимание уделяется сущности и возможностям для производителей в цифровой экосистеме в цепочке создания стоимости. В сельском хозяйстве появился запрос на комплексные решения, которые имеют конкретные преимущества в автоматизированных решениях цифровых платформ. Например, уменьшение ресурсных затрат, снижение себестоимости конечной продукции, возможности снижения проблемы бюрократизации при получении государственной поддержки и налоговых льгот, снижение временных затрат при принятии решений в управлении сельхозорганизацией и сельхозпроизводством и
другие. Цифровые экосистемы аграрного производства позволяют в рамках цепочки добавленной стоимости создавать сложные высокоавтоматизированные производственно-логистические цепочки, охватывающие оптово-розничные торговые компании, логистику, сельхозпроизводителей и их поставщиков в единый процесс с адаптивным управлением. Цифровые экосистемы являются перспективными направлениями цифровой трансформации не только для агрохолдингов, а также для среднего и мелкого сельхозтоваропроизводителя. Потенциал цифровой трансформации и создание цифровых экосистем для агропромышленного комплекса носит инновационный характер. Основанием для этого является высокий уровень контроля в цепочке создания стоимости и принятия решений в высокорискованном виде производства. В результате проведенного исследования использование цифровых экосистем способно преобразовать традиционные сельскохозяйственные организации в организации нового типа. Это повышает рентабельность сельского хозяйства, инвестиционную привлекательность агропромышленного комплекса, занятость сельского населения, уровень развития сельских территорий. Ключевые слова: цифровая трансформация, агропромышленный комплекс, цифровая экосистема, цифровая информационная инфраструктура, цифровые платформы, цепочка создания стоимости.
Introduction. The subject of the digital transformation has moved into the strategic agenda of the state, industries and organizations in the context of global crisis processes sharpening. Under the external pressure, many organizations have revised their strategic development plans. In particular, the implementation of digitization and production digitalization, and they also postponed the timing of digital transformation for the nearest period. Despite the increased research on digitalization of the agro-industrial complex and the introduction of digital services, insufficient attention is paid to the approaches and models of digital transformation strategies in the agro-industrial complex in comparison with the industries and organizations with state participation.
Purpose of the researches is to offer strategic guidelines for digital transformation in the agro-industrial complex, management of digital modernization of agriculture, and opportunities for improvement within digital ecosystems.
Conditions, materials and methods. To achieve the objectives of the study, we used economic, statistical, abstract and logical and comparison method, as well as systemic and institutional approaches. The empirical base was presented by the statistical reports and forecasts contained in economic literature, Internet resources of state and public organizations.
Results and discussion. Digitization and digital transformation of the industrial management require a qualitative revision of the strategy, methods and mechanisms of the operational management [1, 2]. The technological lag in the agro-industrial complex remains a deterrent, especially in the development of such areas as an efficient hectare, a smart farm, a smart greenhouse, a smart warehouse. The current practice does not allow making a technological breakthrough, since the agro-industrial complex has both 19th century technologies and advanced digital tools. Insufficient development of the production modernization processes, depreciation of fixed assets mainstreams the need to use information and digital technologies in the agro-industrial complex directly in the agricultural sectors, processing, transportation, storage, planning and management of agricultural production.
The process of the digitalization of the agro-industrial complex organizations will allow, first of all, to inform the subjects of the agricultural production about the perspectives and benefits [3, 4]. The creation of the agro-digital ecosystems in the regions of Russia will allow obtaining a synergistic effect from the introduction of digital technologies in all the sectors of the economy.
Digital transformation and the creation of digital ecosystems in the agro-industrial complex should be based on a clear understanding of the strategic nature of this process. Many managers have little understanding of the process of developing and implementing digital transformation (Fig. 1). Methodological recommendations for the digital transformation for organizations with the state participation in the industry have been developed. The problem is the digital inequality of rural areas and the lack of recommendations for the agricultural sector.
Figure 1 - Perception of the term "digital transformation" in Russia [5]
Based on the analysis of various sources [1, 2], we have proposed the following definitions in relation to agricultural production. Digitization is a digital description of physical objects in the form of an array of data that can be transmitted over digital channels and used for further processing. For example, digitalization of fields, installation of various sensors.
Digitalization is the implementation of activities using digital data and digital technologies. For example, the automation of the obtained data analysis for making decisions on fertilization, the use of data from digital platforms to model the process of processing raw materials.
Digital transformation is the process of changing the management system in an organization based on a digital data array through digital technologies, digital services, digital platforms. For example, it is optimization of the structure and processes of the agricultural production based on digitalization.
The digital ecosystem is an integration of digital platforms, digital services of business processes, fully digitized chains of creation and adding value into a single network for creating new value on the win-win principle. Fundamentally new types of digital, bio-, agro-, energy technologies of the digital ecosystem are closely interconnected with complex networks. In an ecosystem, all the elements are well-managed and show not only quantitative but also qualitative indicators of efficient production.
To solve the problems of digital transformation of the agro-industrial complex, a system of digital services is currently being developed. Such an ecosystem is designed to simplify the procedure for submitting documents for the state support, consult on various issues, reduce costs and increase the profit of the agricultural producers. The digital priorities of the agricultural producers have changed, in particular, from specific technologies (sensors) to complex solutions (applications with access to platforms). Nevertheless, the digital transformation in general in the agro-industrial complex is at an early stage (Fig. 2).
Beginners
ai X
Business services
ai Q
Electronics and components Agribusiness Auto business Entertainment industry
Followers Advertising Public services Consulting Metallurgy Telecom Oil and gas Retail Energy Insurance Extraction of minerals
Education Industrial production Building Medicine Tourism and rest transport and logistic Services to the population
Leaders
IT and software development Banking and finance Utilities
Start
Finish
Digital Transformation Phase
Figure 2 — Digital transformation status by industry [5]
According to the data obtained, Altai and Krasnodar regions, Kursk, Lipetsk and Samara regions, the Republic of Bashkiria and the Republic of Tatarstan are among the leaders in terms of the rate of implementation of digital approaches in the agriculture. The lowest rates are recorded in the Jewish Autonomous Region, Amur, Kirov, Kostroma, Magadan and Murmansk regions, Kamchatka and Primorsky Territories, the Kabardino-Balkarian Republic and the Karachay-Cherkess Republic [6].
Cloud services account to the largest share of the digital technologies. The use of drones, technologies of contactless automatic identification of objects using RFID tags is growing. Precision farming technologies are applied. Digital farm management systems, tools for analyzing data on all stages of production are lagging behind in the pace of implementation. This is confirmed by Figure 3.
Figure 3 - Organizations using digital technologies by economic activity, 2019 [7]
Based on the research [8, 9], we note that digital transformation is a long-term process. Financing comes first among the challenges to digital transformation (56%). Its difficulties also include: lack of competencies (47%), non-obviousness of the project's profitability (40%), lack of interest from the management (35%), technological unavailability (38%), lack of clear goals (37%) [10].
We also highlight the factors: digital inequality, the development of digital infrastructure, the unsuitability of many projects for small and medium-sized businesses, and insufficient awareness of existing technologies and implementation results. The benefits from digital transformation [7, 8, 11, 12] are: cost and labor cost savings, increased productivity, improved customer experience, personalized interaction, flexibility of business processes, speed of adaptation to external changes, increased margins of products and services, innovative development of end products, increased capitalization, and increased competitiveness.
Digital transformation and new bio / agricultural technologies are changing business processes significantly. Taking into account technological trends and characteristics of agriculture, the creation of ecosystems for the regions is the most promising direction. Ecosystems of platform-based services help store, process and exchange large amounts of data. A number of projects on the digitalization of the agro-industrial complex have already been implemented in Russia. For example, the Digital Agro ecosystem operates on 10,000 fields and 4.4 million hectares in 28 regions [13].
Interaction in the digital ecosystem takes place in an efficient and personalized manner between agricultural producers, government agencies and other entities. We will enumerate some features of the digital ecosystem for the agricultural production and processing.
In the process of digital transformation, a digital twin of an agricultural organization product chain is being created. In the agriculture, the correct decision-making process for the agricultural production is essential. The quality of products, the performance of the necessary work at the right time, and the profitability of production in general depend on it.
Effective regional business models in the digital ecosystem can be replicated for the farmers. The riskiness of the agricultural production is reduced. The transparency of production is the main argument in favor of investment attractiveness. Cooperative forms of the industrial management are developing. Technological discipline increases in the production process.
In the digital ecosystem of the value chain, the importance of software (Figure 4) and infrastructure is increasing. The software includes organization resource planning -ERP (Enterprise Resource Planning), customer relationship management - CRM (Customer Relationship Management), supply chain management - SCM (Supply Chain Management), management of fixed assets of the organization - EAM (Enterprise Asset Management).
Digitalization I Automationautomation
Consumers Internet trade
Electronic payments
Figure 4 - The field of interaction between digitalization and the Internet of things in
the agricultural industry
CRM
ERP
SCM
EAM
Accounting software
Organizational management software
Internet of things
Platform of agricultural machinery and mechanization producers
Platform of producers of seeds
Platform of fertilizer and chemical producer/supplier
Platform of monitoring of crops
Platform of suppliers of forages
Platform of livestock farms
In the digital ecosystem, it is more efficient to distribute the technological solutions of the industrial food net. The production process for standardized safe personalized functional foods will expand. In the process of forecasting demand, the diversification of the agricultural production and the optimization of food markets will increase. The agro-industrial complex will actively adapt to the needs of consumers in a healthy lifestyle.
The digital ecosystem makes it possible to interact in a closed-loop economy (a circular economy) with low waste and low emissions. With the help of the digital ecosystems, rational energy and water use is possible, as well as the development of resource saving and environmental friendliness of processes.
Infrastructure is developing within the digital ecosystem, new jobs are being created. Stimulating economic development in rural areas enhances the role of farmers and improves living standards.
As a result, digital transformation entails a change in the production and management process. And the creation of a digital ecosystem is changing the value chain in the agro-industrial complex.
China is an example of digital transformation of the agro-industrial complex. It adopted the "Plan for the Development of Digital Agriculture and Rural Areas for 2019-2025". By 2025, the digital economy of agriculture should amount to 15% of the added value of China's agro-industrial complex, and the share of agricultural products sold on the Internet should reach 15% [14]. This will entail the development of the Internet access in 70% of the rural regions. Building digital ecosystems and the Internet of things is driving the robotics industry forward. The plan states: "Agrobots should diagnose diseases, help in grazing and feeding animals. Artificial intelligence is planned to be involved in the crop protection and yield control. The analysis of the data will provide farmers with advice on where, when and how to plant crops" [14].
Conclusions. The digital transformation of the agro-industrial complex and the digital ecosystem will contribute to the following areas:
- high attractiveness of the agricultural production for the investors;
- regional territorial-spatial development of the rural areas;
- increasing level, conditions and quality of life in the rural areas;
- development of domestic agriculture and the export potential of products with a high level of processing;
- raising the level of education and qualifications of agricultural workers, as well as the introduction of highly competitive specialties in data analytics, machine learning and artificial intelligence in agriculture;
- growth in demand for high-tech products of domestic engineering and for research and development work in the field of breeding, seed production and genetics;
- development of new types of digital services and electronic trading platforms in agriculture.
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