Information And Communication Technologies Of Digital Transformation Of The Economy

Abstract

The digitalization trend covers all areas of the modern world. Urgency widespread introduction of information and communication technology (ICT) is determined coronavirus pandemic infection COVID-19. The use of technologies is a necessary and enforced tool. The digital companies that already have experience in using digital technologies turn out to be resistant to sudden and non-standard changes in the environmental conditions. The basis and tools of the digital economy ecosystem are the ICT which are called digital nowadays. Digital technologies include big data, quantum technologies, robotics, neurotechnics and artificial intelligence, computer engineering and additive manufacturing, the industrial internet, a blockchain system, virtual and augmented reality technologies. Particular emphasis should be given to the study of information and communication technologies. The promising areas for the development of digital technologies are unmanned vehicles and education. The need for physical distancing has served as an accelerator for rapid technological development and expansion in these areas. The successful international experience in ICT introduction and use for both general and particular tasks should be taken into account. In the article the authors present the results of the research aimed at clarifying and developing the provisions on the role, place and interrelation of information and communication technologies and processes of digital transformation of the economy under present-day conditions, including the challenging COVID-19 epidemiologic situation. The main research methods were the analysis of scientific and research literature, materials published in the media, statistical reports and economic development programs on digital economy and key technologies used.

Keywords: Digital economydata economyinformation and communication technologiesdigital technologiesCOVID-19

Introduction

The process of transforming the economy into a digital one began long ago. The COVID-19 coronavirus infection pandemic has served as a powerful accelerator for the development of information and communication technologies. The need to use digital platforms for remote work, distance learning, communication in general, implementation of contactless transactions, maintaining economic relations and processes, has become the most important issue. The concept of security, previously used for transactions, has acquired a new meaning consisting in physical security. Absence of the direct physical contact under restrictions of the complicated epidemiological situation has become a mandatory requirement for all. This aspect refers to both small business and large corporations. The companies that have experience in using digital technologies in their practice have been technically prepared to the unprecedented situation in 2020. Such companies are called digital. The companies focused on digitalization of business processes are technically more resistant to the environmental changes.

The level of economic development depends on the level of ICT development. Information and communication technologies are essential for the survival of many companies in particular, and economy as a whole.

Problem Statement

The ecosystem of digital economy can be considered from various viewpoints, but in our opinion, the information and telecommunication technologies are of primary importance. The diversity of existing technologies requires a clear definition of technologies related to the digital economy. The current state and forecasted values of the studied technologies markets are one of the priorities in the research of the digital economy. The COVID-19 pandemic has created the conditions for the enforced accelerated digital transformation. The digital transformation of economic processes is possible due to the use of modern information and communication technologies.

Research Questions

The study raised the following questions. What is the conceptual difference between information and digital technologies? What technologies are referred to digital economy? What market size do digital economy technologies occupy? What areas of application and development prospects do the information and telecommunication technologies have? What is the multiplier effect of using the information and communication technologies in the period of the COVID-19 pandemic and afterwards.

Purpose of the Study

The purpose of the study is to clarify and develop the provisions on the role, place and interrelation of information and communication technologies and processes of digital transformation of the economy under the present-day conditions.

Research Methods

The Analysis of the Definitions of the Digital Economy

The term of digital economy due to its popularity is one the issues discussed and debated in mass media and modern scientific literature in the field of economic research (Andreyeva et al., 2018; Baranov, 2018; Gretchenko, 2018; Katz, 2017; Negroponte, 1995; Yudina, 2016; Zubarev, 2017).

All authors, without exception, note that information technologies are a basic and integral foundation of the present economy.

The development of information and communication technologies (ICT) and the emergence of the Internet and satellite communication have changed the form of organization of economic relations into electronic and digital direction (Figure 1 ).

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Various authors describing the process of formation of the information society and information economy use the concept of “information technologies”, emphasizing the role of information as the most significant resource for a company operation (Grum-Grzhimaylo, 2010; Kalinkina, 2010; Sukhov & Strekha, 2012; Vatolina, 2009). Along with the transition to the concept of the digital economy, the definition of the used technologies also changes into digital ones (Bondarenko, 2017, 2018; Yakutin, 2017; Yudina, 2016). The current processes are transformed. The informatization process associated with the increasing role of information compared to other resources has turned into the computerization (automation) process. The computerization (automation) process presents wide use of personal computers and introduction of ICT into all spheres of activities, as well as automation of workplaces using software products. The next stage is digitalization: the total transfer of all operations into electronic environment.

Findings

The situation in terms of COVID-19, physical self-isolation, and remote work causes the need for unification of digital and real worlds. The boundaries between these worlds are being erased. The current processes are accelerating. The companies that have neglected the gradual digitalization of their activities before are rapidly embracing new technologies. Decision-making time is still one of the most important instruments for effective management. The focus is shifted to the advantages and opportunities of information and communication technologies (table 1 ).

It should be noted that the authors have not set the goal to limit all the advantages of digital technologies to this list. Obviously, with the technological development more and more spheres and opportunities for digital technologies application appear.

The process of global enforced digitalization is caused by the COVID-19 coronavirus infection pandemic. Adaptation of companies to new rules and overcoming the consequences of the global catastrophe are possible only when using modern information and communication facilities and technologies. Once again China has shown a high level of technological development, including digital technologies. One of the factors of China’s success in fight against the virus was the mandatory use of the “Health Code” mobile application by the population. The application collects and analyzes information on personal medical data received from various location sensors and allows tracking potentially dangerous places that are closed or quarantined. In addition, the application provides the current information about the coronavirus in the city of location. This application is an example of nationwide use of digital technologies.

Until 2019, information technologies were a factor of improving the enterprise competitiveness, a secondary advantage of companies under similar operating conditions after effective planning of activities. The need for companies to go online, knowledge and skills, as well as the ability to use modern digital platforms to transfer the activities into electronic environment are the necessary conditions for the survival of modern companies. There is definitely a direct correlation between the reaction rate to the instant unplanned change in operation conditions and the stability of the company’s market position. It depends on the resources the companies have and the qualification of the personnel with appropriate skills and abilities. Instability, uncertainty, variability and ambiguity are the characteristics of the modern world. However, the world situation of the end of 2019 – the beginning of 2020 will serve as a precedent of readiness of companies and countries for various non-standard situations.

The most promising and highly demanded spheres in terms of COVID-19 are the development of unmanned vehicles and distance education. The development of technologies in these areas is rapid now due to the forced necessity to use them under the conditions of self-isolation and remote work. It should be noted that educational digital services and platforms allow more efficient use of the available materials and knowledge.

Conclusion

Thus, the authors have clarified and developed the provisions on the role, place and interrelation of information and communication technologies and processes of digital transformation of the economy under the threats and challenges arising from COVID-19 regarding the substantiation of ICT as an integrating and universal factor of the global reformatting of the world economy despite the tendencies of separation and localization of the economic systems.

The use of information and communication technologies under the conditions of global catastrophe is one of the efficient ways out of this situation. Digital technologies improve the quality of decision-making processes by improving automated systems and using artificial intelligence, they create the environment for the development of new forms of economic transactions, improve the quality of using the existing resources due to operational control process at all stages of the lifecycle of commodities and services, and accelerate the economic cycles. The enterprises are forced to launch the internal digitalization processes. The main potential of digital future is to change the strategy and goals of the company by introducing new fundamentally different technologies into all spheres. Using information technologies, the companies will be able to achieve a new result that will meet the requirements of the digital world.

References

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