Digitalization of business processes: evolution, trends and prerequisites
DOI:
https://doi.org/10.35774/visnyk2024.03.232Keywords:
Industry 4.0, Big Data, Industry 5.0, COVID-19, business, transformation, digitizationAbstract
Introduction. Digitalization of business processes has prompted a shift from traditional management methods to digital ones, enhancing the efficiency of service provision and improving the quality of goods production. In light of global factors such as Industry 4.0 and 5.0, as well as the COVID-19 pandemic, researching their impact on the digitalization of business processes in the European Union (EU) and Ukraine becomes particularly relevant. Industry 4.0 and 5.0 define a new stage in economic development based on the integration of digital technologies into all spheres of enterprise activity. This includes the implementation of Internet of Things (IoT), artificial intelligence (AI), and innovative solutions for automating business processes, logistics, marketing, and management. As a result, businesses gain the ability to respond more quickly to market changes, optimize business processes, and forecast demand for goods and services. Additionally, the COVID-19 pandemic once again underscores the importance of digitalization for business processes, leading many companies to recognize the significance of investing in digital technologies to ensure business continuity under any circumstances. Ukraine, with its significant potential in the IT sector, is actively progressing towards digital transformation.
The aim of the article is to analyze the impact of digital transformation on enterprise functioning in modern conditions, systematize the advantages, disadvantages, and opportunities arising from this transformation.
Methods. The authors utilized methods of bibliographic analysis of publications from the SCOPUS database, trend research, and marketing analysis of internal and external factors.
Results. Ukrainian companies successfully implement digital initiatives to optimize production processes, improve communication with clients and partners, and introduce new digital products and services. Secondly, the population is also becoming more digitally oriented. Households increasingly use digital tools for budget planning, online shopping, financial transactions, and managing household devices through mobile applications. Overall, digitalization of business processes is a response to modern market challenges and requirements, providing businesses with greater competitiveness, efficiency, and flexibility. It opens up new opportunities for enterprises in all sectors and contributes to societal development and improvement in quality of life for the population.
The directions for further research in the field of business process digitalization include analyzing the impact of artificial intelligence and machine learning on automation and innovation, studying the economic and social consequences of digitalization, and researching cybersecurity issues and data protection. Special attention should be given to the integration of digital technologies into small and medium-sized businesses and studying international experiences to adapt best practices in Ukraine. An important aspect is also the study of the environmental benefits of digitalization for sustainable development.
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