Development of the concept “digitalization” and its impact on different spheres of the economy

Bondarchuk Oleksandr
postgraduate student of the Department «Economics of the Enterprise and Organization of Entrepreneurial Activity», Odesa National Economic University, Odesa, Ukraine, E-mail:just.bondarchuk@gmail.com, ORCID ID: https://orcid.org/0009-0008-0158-1296

Cite this article:

Bondarchuk O. (2024) Development of the concept “digitalization” and its impact on different spheres of the economy. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Rozvytok poniattia "didzhytalizatsiia" ta yii vplyv na rizni sfery ekonomiky; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 7-8 (320-321), pp. 31-40.

Abstract

The purpose of the article is to analyze the definition of the development of the concept of "digitization", its signs, and the general impact of the digitization process on various spheres of the economy and business activity. Method. To achieve the goal, the methods of comparison, analogy, grouping, specification, analysis and synthesis, tabular method were applied. Results. The article provides a critical analysis of the term "digitalization". The main stages of the development of this process from its inception to modern times are analyzed in chronological order. The generalized impact of digitization on various spheres of the economy is presented. Practical importance. The rapid development in the field of digital technologies, the possibility of computing big data, the complex use of artificial intelligence and their availability for society and business have created a critical need for the digital transformation of all spheres of human life and society. It is no longer possible to imagine a business that has not implemented digital solutions or at least partially digitized its work. Without the use of digital solutions, it becomes increasingly difficult for companies to be competitive, quickly and easily interact with their customers, organize the internal work of the enterprise and even interact with the state. The modern world requires enterprises to constantly improve their products and services, improve user experience, and easily and quickly interact with their current and potential customers, but all this is impossible without the use of innovative approaches, process automation, digital solutions and services. Ignoring digitalization trends can lead to the loss of competitiveness, capital and degradation of the enterprise's intellectual capital, which, in turn, will lead to the loss of full functioning. Instead, the use of digitalization helps enterprises to maintain and develop innovative activities, develop the intellectual capital of the enterprise and get the most out of the available resources. The importance of this research lies in improving the understanding of the development process of digital transformation, its goals and impact on the activities of the enterprise and various spheres of the economy.

Keywords

digitalization, development, economy, new technologies, digitization.

JEL classification: O300; O330; O400; DOI: https://doi.org/10.32680/2409-9260-2024-7-8-320-321-31-40

UD classification: 330.3

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