Shostak Liudmyla, PhD (Economics), Associate Professor of the Department of Economics and Trade, Lesya Ukrainka Volyn National University, Lutsk, Ukraine

ORCID ID: 0000-0001-8786-9582
e-mail: lshostak14@gmail.com

Begun Svitlana, PhD (Economics), Associate Professor of the Department of Economics and Trade, Lesya Ukrainka Volyn National University, Lutsk, Ukraine

ORCID ID: 0000-0001-8786-9582
e-mail: begun.svitlana@vnu.edu.ua

The Essence and Features of Digital Transformation of the Economy

Abstract. Introduction. Digital transformation is a fundamental process that reshapes the economic landscape, bringing forward significant changes in how businesses operate, interact with customers, and compete in the global market. This article explores the essence of digital transformation in the economy and delves into the specific characteristics and features of its implementation across various industries. Digital technologies, such as cloud computing, big data analytics, artificial intelligence (AI), and automation, are revolutionizing business operations, enabling companies to optimize processes, reduce costs, improve productivity, and enhance overall competitiveness. The article focuses on understanding how digitalization influences business models and organizational structures, providing a comprehensive analysis of the stages of digital transformation, as well as the challenges and opportunities associated with it.

Purpose. of the research is to study the impact of digital technologies on economic processes, as well as analyze the main trends and challenges faced by enterprises during digitalization, as well as assess the prospects for digital transformation to increase the competitiveness of national economies.

Results. The article identifies key drivers of digital transformation, including advancements in information technology, the growing role of digital tools in business management, and the integration of innovative solutions that promote efficiency and agility. Furthermore, it examines the impact of digital transformation on traditional industries, highlighting the economic sectors most affected by these technological shifts, such as manufacturing, finance, retail, and communication. The importance of adapting to the rapidly changing digital landscape is emphasized, especially in light of global trends, evolving consumer behavior, and increased competition.
A crucial aspect discussed in the article is the implementation of new business models that arise from digital transformation. The development and integration of these models have reshaped how businesses interact with customers, suppliers, and other stakeholders. The article also explores the significance of data-driven decision-making, digital tools for resource optimization, and the necessity for companies to stay agile to meet the ever-evolving market demands.

Conclusions. the article emphasizes that successful digital transformation requires a cultural shift within organizations, as well as the adoption of digital technologies. Leaders must encourage innovation, provide the right technological infrastructure, and foster an organizational mindset that embraces continuous learning and adaptation. The article argues that businesses that effectively navigate digital transformation will have a significant competitive advantage and increased potential for long-term sustainability and growth, positioning them as leaders in their respective markets.

Keywords: digital transformation; economy; innovation; cloud technologies; automation; big data; business processes; adaptation.

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