DIGITALIZATION IS A TREND OF THE WORLD DEVELOPMENT DEFINING ECONOMIC AND SOCIAL DEVELOPMENT

Abstract

The article discusses digitalization of the economy as a modern global trend of economic and social development, which is based on the use of information and computer technologies (ICT) and digital technologies and leads to economic efficiency and quality of life. In our analysis, the term “digitalization” is used more broadly than in the digital economy. Digitalization, in our understanding, is the process of introducing digital technologies for the generation, processing, transmission, storage and visualization of data in various fields of human activity, and not just in the economy. From this perspective, digitalization is a broader phenomenon than in the digital economy. It is emphasized that the use of ICT can lead to significant changes in the way businesses are managed; ICT-based decision making in business processes with e-business. Businesses are growing in importance with their online presence through the use of online orders, order tracking, product customization, and social media links. Trends in digitization of the economy are analyzed on the example of Europe. Digital transformation and innovation are deeply intertwined in the digital organization. In some cases, innovation leads to transformation, in others, successful transformation leads to increased innovation. Businesses take a holistic, systematic approach to digital transformation that reflects the deep and inseparable links between critical business aspects and the ever-changing market dynamics. In practice, customer experience, optimization, operational flexibility and innovation are key drivers and goals of digital transformation, along with developing new revenue streams and information ecosystems that have value and lead to business model transformations and new forms of digital processes. The paper proposes a structural scheme for eliminating the risks of digital transformation. Analyzing the state’s digitalization policy, it considers the implementation of the global experience of transformation of financial relations of economic entities in the digital economy in Ukraine in the form of positive trends.