Revista
de la
Universidad
del Zulia
Fundada en 1947
por el Dr. Jesús Enrique Lossada
DEPÓSITO LEGAL ZU2020000153
ISSN 0041-8811
E-ISSN 2665-0428
Ciencias
Exactas,
Naturales
y de la Salud
Año 14 N° 40
Mayo - Agosto 2023
Tercera Época
Maracaibo-Venezuela
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Business Strategy Transformation: The Impact of Global Digitalization
and COVID-19 Pandemic Factors
Nataliia Ivanova*
Svitlana Nazarko**
Tetana Denysenko***
Olena Kublitska****
Serhii Kononenko*****
ABSTRACT
The article aims to consider the business strategy transformation process in the context of
global digitalization and the COVID-19 pandemic in business and the economy. To achieve
the goal, the authors analyzed the notions of "IT strategy", "digital strategy" and "digital
transformation strategy" and established their hierarchy; the key features of the strategy in
the digital world are identified, namely: risk as the basis for development, people as the main
business value and the formation of the right mindset of participants in digital
transformation; the process of implementing the digital transformation strategy in the
company is considered. The objective of the article was achieved through a review of the
literature and the use of scientific methods, namely: comparative analysis, synthesis, and
historical and logical methods. The results obtained contribute to the understanding of
scientists and professionals about the development management process in the digital world.
KEY WORDS: Digital transformation, digitalization, business strategy, e-commerce, COVID-19.
*Professor, Department of Entrepreneurship and Trade, Chernihiv Polytechnic National University,
Ukraine. ORCID: https://orcid.org/0000-0001-6622-7310. Е-mail: ivanova.nat.vlad@gmail.com
** Associate Professor, Deputy Director, The North-Ukrainian Institute named after Kruty Heroes of
Private Joint-Stock Company «Higher Education Institution Interregional Academy of Personnel
Management», Ukraine. ORCID: https://orcid.org/0000-0002-4841-9201. Е-mail: s.nazarko@ukr.net
*** Associate Professor, Department of Entrepreneurship and Trade, Chernihiv Polytechnic National
University, Ukraine. ORCID: https://orcid.org/0000-0002-7022-5884. Е-mail: tanjadeni@ukr.net
****PhD Student, Department of Management and Civil Service, Chernihiv Polytechnic National
University, Ukraine. ORCID: https://orcid.org/0000-0001-5897-1393. Е-mail: le.kulit@gmail.com
*****PhD Student, Department of Management and Civil Service, Chernihiv Polytechnic National
University, Ukraine. ORCID: https://orcid.org/0000-0002-1898-2204. Е-mail:
job.s.kononenko@gmail.com
Recibido: 17/01/2023 Aceptado: 08/03/2023
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Transformación de la estrategia empresarial: El impacto de la
digitalización global y los factores de la pandemia de COVID-19
RESUMEN
El artículo tiene como objetivo considerar el proceso de transformación de la estrategia
empresarial en el contexto de la digitalización global y la pandemia de COVID-19 en los
negocios y la economía. Para lograr el objetivo, los autores analizaron las nociones de
"estrategia de TI", "estrategia digital" y "estrategia de transformación digital" y establecieron
su jerarquía; se identifican las características clave de la estrategia en el mundo digital, a
saber: el riesgo como base para el desarrollo, las personas como el principal valor empresarial
y la formación de la mentalidad adecuada de los participantes en la transformación digital; se
considera el proceso de implementación de la estrategia de transformación digital en la
empresa. El objetivo del artículo se logró a través de una revisión de la literatura y el uso de
métodos científicos a saber: análisis comparativo, síntesis y métodos históricos y lógicos. Los
resultados obtenidos contribuyen a la comprensión de científicos y profesionales sobre el
proceso de gestión del desarrollo en el mundo digital.
PALABRAS CLAVE: Transformación digital, digitalización, estrategia empresarial, comercio
electrónico, COVID-19.
Introduction
Digital technologies have become the driving force that changes the way enterprises
develop, overcomes difficulties, and creates new opportunities for building relationships
with stakeholders to create value for the business. In the era of digital technologies, only
companies that accept the rules of the digital environment and put their transformation and
agility as the priority ways of doing business will be able to remain competitive. At the same
time, a lot of "immature" enterprises make a strategic mistake when they make an emphasis
on technologies and do not understand how important strategic management is in the
process of enterprise development. Thus, they become unprepared for the constant need to
adapt to the changing digital world.
The purpose of the research is to consider the transformation of the notion of "business
strategy" in the context of digitalization and the COVID-19 pandemic as well as to study the
impact of digital technologies on the strategic planning and implementing of business
strategies, particularly in e-commerce enterprises. To achieve the goal, the authors decided
to break it down into the following objectives:
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- to conduct a comparative analysis of the concepts "IT strategy", "digital strategy", and
"digital transformation strategy" for a better understanding of the relationship hierarchy;
- to identify the distinctive features of strategies in the digital world which differ them
from the traditional offline strategy;
- to consider the process of planning and implementing the digital transformation
business strategy.
1. Literature Review
Digital transformation is an important phenomenon due to its relevance and
importance in economic and social development. The study of the digitalization processes
and digital transformation and their impact on various aspects of enterprise functioning is
becoming increasingly relevant, and the focus of both developed and developing countries is
on finding ways for the sustainable development of enterprises, as well as increasing their
resistance to system calls, for example, COVID-19. At the same time, researchers continue to
study the concept of business strategy, its impact on the survival and performance of the
organization, and its ability to respond to system calls.
The issues of digital transformation of business and economy are reflected in many
scientific studies, including the following: Battisti E. (2022); Gaglio C. (2022); Kao L.-J.
(2022); Katsamakas E. (2022); Li L. (2022); Peng Y. (2022); Piepponen A. (2022);
Proskurnina N. (2020); Tabaghdehi S.A.H. (2022); Tian G. (2022); Weber E. (2022); Wu K.
(2022); Xue L. (2022). Yu H. (2022). Among the actual themes of the digital transformation
impact on business strategies, the authors can highlight the issues of managing the digital
transformation process; the impact of digital technologies both on individual processes and
on the value proposition of enterprises as a whole; improving understanding of how the
introduction of digital technologies affects the actions of owners, top management, staff, and
consumers of enterprises during distribution, and how their impact on the development of
the enterprise can be conceptualized, as well as the relationship between the introduction of
digital technologies and the effectiveness of the company. At the same time, the significant
number of publications was aimed at the impact of digital transformation on the risk
adoption by enterprises in varying degrees, which became especially relevant during the
COVID-19 period, when enterprises are forced to work in an environment characterized by
a high degree of risk and uncertainty regarding the future. Thus, the efforts of researchers are
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increasingly focused on studying the issues of changing the essence of business strategy in
the context of digitalization and how it makes enterprises more sustainable and competitive.
The use of different methodology helps to increase the acquisition of valuable insights
in the research process: for example, research uses both qualitative (Piepponen, 2022) and
quantitative methodology (Proskurnina, 2022), as well as a mixed approach (Kao, 2022),
which allows scientists to approach the consideration of such a complex phenomenon as
business strategy from different perspectives.
The authors of the article (Piepponen, 2022) consider the impact of digital
transformation on the value proposition as a key element of the company's business model.
Researchers use the method of a single case study to understand how digital technologies
change the nature and content of value propositions as well as key factors and the
consequences of value elements transformation. The research of scientists (Tian, 2022) was
investigated the impact of digital transformation processes of companies on their corporate
risk-taking. According to the authors' results, it is determined that digital transformation has
a positive effect on risk-taking and brings a set of positive operative and financial effects. The
aim of the study (Gaglio, 2022) was to identify the relationship between digital technologies,
productivity, and innovation efficiency. The result of the study made it possible to identify
the positive impact of digital technologies on innovation, which in turn affects labor
productivity.
In the research (Peng, 2022) the possibilities of stimulating the innovative impulse
with the help of digital technologies were investigated. The authors used the panel
measurement model and concluded that reducing costs, increasing revenue, improving
efficiency, and encouraging innovation are the main ways of digital transformation for the
development of enterprises.
The study (Weber, 2022) examines the concept of leadership in digital
transformation, where the authors investigate the relevance of the existing roles of the system
of competitive value (CVF). Researchers also emphasize the need to complicate the existing
behavioral roles of leaders to overcome the leadership challenges caused by digital
transformation. The researchers' article (Kao, 2022) is focused on developing the dimensions
and criteria for assessing the status of digital transformation in the retail industry with the
use of focus groups interview (FGI) and data development analysis (DEA). The result of the
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study shows that management of internal operations is crucial and control of resources and
scale allocations is necessary to prevent reductions in technical efficiency.
The author of the research (Tabaghdehi, 2022) considered the digital economy and
the digital transformation in the context of overcoming uncertainty during COVID-19. The
author also provides a study of the structure of digital supply and digital consumption, as
well as its opportunities and challenges in the transition of enterprises to the digital
economy. The authors of the article (Xue, 2022) consider the role of digital transformation in
promoting green technology innovations and the need for the government to formulate a
financial policy aimed at supporting such enterprises. This financial policy should include
supporting the readiness of enterprises to introduce green technology innovations and
increase the volume of digital transformation of enterprises.
Given the significant number of publications, the question of how exactly the business
strategy is transforming in the context of global digitalization and the impact of COVID-19
on business remains insufficiently studied.
2. Methodology
In this study, the authors use literature review and scientific methods of comparative
analysis, synthesis, historical, and logical methods. The transformation of the strategy is
explored with the use of systemic approach which allows considering the phenomenon of
digital transformation through a set of interconnected elements connected by
interconnections and a single purpose, which causes their awareness as a single whole.
Among the advantages of using the system approach are universality, logicality in use,
significant cognitive potential, and significant opportunities for research structuring (Gonta,
2017). The systemic approach will allow the authors to consider a company operating in the
context of digital transformation as a system. This approach allows the authors to consider
different aspects of the phenomenon for more comprehensive understanding. The systemic
approach is used by the authors in forming the process of digital transformation strategy
implementation.
3. Results
Digital transformation makes it possible for business to gain competitive advantages
and neutralize the negative impact of such global events like COVID -19. Digital technologies
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are spreading rapidly, occupying a solid place in business and the economy. Statista shows
that spending on digital transformation technologies and services worldwide from 2017 to
2025 (in trillion US dollars) (Fig.1) will be tending to increase (Statista, 2022).
Figure 1. Spending on digital transformation technologies and services worldwide from 2017
to 2025 (in trillion US dollars)
Source: built by the authors from (Statista, 2022).
To gain the maximum effectiveness from investment on technology, companies must
understand what place technologies have in the company's overall understanding of its
future development. The key drivers and impacts are the main forces in implementing digital
transformation in the business activity (Fig.2). Among such traditional attributes as digital
technologies, digital capabilities, business models, value chain, such attributes as digital
transformation strategy, digital maturity, and digital culture find their reflection according
to new digital reality. The influence of these components on the development of the company
cannot be underestimated.
The key conditions for the strategic development of companies in the era of digital
transformation are to respond to positive opportunities and threats of the external
environment, to search for action algorithms in the conditions of the new reality, as well as
to transform "the traditional values into digital values" (Turuk, 2020). Simultaneously, the
problem of many companies is the principle of "technology for technology", which can
neutralize the number of positive effects of digital transformation, when the company does
0
0.5
1
1.5
2
2.5
3
2017 2018 2019 2020 2021 2022* 2023* 2024* 2025*
0.96
1
1.18
1.31
1.5
1.8
2.1
2.4
2.8
Spending on digital transformation technologies and services
worldwide from 2017 to 2025 (in trillion US dollars)
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not realize the difference in chances that can help it radically change the way of functioning
and making profit.
The problem of this approach is partly that many authors still cannot agree on the
concepts of "digital transformation", "digitalization" and "digitization", thereby "fixing" the
maximum level that can be achieved by making focused efforts on the strategic development
of the company. For example, OECD explains that "digital transformation refers to the
economic and societal effects of digitization and digitalization" (OECD, 2022). But this
approach limits the essence of digital transformation by reducing it to obtaining a relatively
limited cost saving effect on business processes by increasing the efficiency of these
processes. Thus, the use of digitalization allows optimizing operations, form large networks
of qualitatively new links and exchange information in the process of distribution of goods
from producers to consumers (Ivanova, 2022).
According to (Ilcus, 2018) digitalization of the enterprise could bring the following
benefits:
- improve business process efficiency, quality and consistency;
- integrate records with digital systems;
- improve accessibility and facilitate better knowledge sharing;
- improve response time and client service;
- reduce costs;
- to increase staff flexibility;
- increase confidence in business continuity;
- increasing customer satisfaction.
But it is a mistake to assume that such changes can significantly change the company's
activities because certain aspects of the processes are susceptible to change while the
company's philosophy about doing business remains unchanged. Thus, there is no
transformation of the company's understanding of the opportunities it acquires from
changing the way of doing business. Some authors emphasize the need to distinguish
between the concepts of "digitalization" and "digital transformation". According to
Bloomderg, digitalization is "the process of employing digital technologies and information
to transform business operations" while digital transformation "refers to the customer-driven
strategic business transformation that requires cross-cutting organizational change as well
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as the implementation of digital technologies" (Forbes, 2018). The need to maintain such
significant changes in the company requires strategic management of the digital
transformation process in the company. Horlach (2017) claims that digital transformation
entails tactical and strategic business moves that are triggered by data-driven insights and
the launch of digital business models that allow new ways of capturing value.
Figure 2. Key drivers and impacts of digital transformation
Source: built by the authors
At the same time, the issue of how technology adoption affects the business strategy
of enterprises becomes relevant. In this context, e-commerce technologies are of interest,
which are broadly defined as “the process whereby traditional trade is carried out by
electronic methods” (Qin, 2014: 3). Among the existing points of view on the concept of
electronic commerce, (Kalakota, 1997) distinguish communication, business process, service,
and online perspectives. Basarir-Ozel (2017: 2) emphasize the “transformational initiative for
organizations” necessary for survival in the digital environment. For example, Alzahrani
(2018) claims that the introduction of e-commerce has affected the planning processes in
enterprises, as well as their business strategy. The authors emphasize the need to adapt the
strategies of enterprises under dynamic changes to increase the survival and competitiveness
of the enterprise.
Digital
transformation
Impacts
Business models
Digital
transformation
strategies
Digital maturity
Culture
Digital capabilities
Value chain
Drivers
Digital technologies
Efficiency of operational
processes
Extended capabilities
Renewed digital culture
Renewed value chain
Improved business models
Improved customer experience
Improved stakeholders
relationship
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The transfer of value in the process of interaction between the enterprise and the
consumer becomes the key essence of business strategy in the context of digitalization.
According to Laudon (2013), e-commerce is only fully exploited when value is exchanged in
the form of goods and services outside the firm, and profits come from the high value
perceived by the consumer of the products and services (Li, 2012). At the same time, it is
information and communication technologies (ICT) that provide the opportunity to
reconfigure existing business and trade relationships, as well as the opportunity to introduce
new operations (Burt, 2003). In this case, it is the presence of a strategy adapted to modern
realities that can catch the changed processes and relationships, as well as give them a new
meaning and direct them to development.
These differences in understanding the role of strategic development led to the fact
that many companies perceive digital transformation as a series of projects to automate
business operations and introduce technologies into separate strategies of activity
(marketing, logistics, etc). According to Demirkan (2016: 14) "the profound transformation
of business and organizational activities, processes, competencies, and models to fully
leverage the changes and opportunities brought by digital technologies and their impact
across society in a strategic and prioritized way". This definition makes it possible to
understand the importance of having a thoughtful and long-term action plan made by top
managers that affects the whole company and the way it creates ideas and acts in the digital
environment.
The changes in strategy in the process of digital transformation are fast and disruptive
which requires deeper scientific research for a better understanding of their essence. The
issues of what exactly the strategy in the digital world is, the levels of its implementation,
and the degree of coverage of the company's main business processes are required for a better
understanding among scientists. The main difference between digitally 'mature' companies
and 'immature' companies is that the latter represents the IT strategy as the main strategy
that they must manage in their operations, often ending their pursuit of digital
transformation there.
It should be noted that the IT strategy that "immature" companies take as the leading
strategy is "Focused on solving discrete business problems with individual digital
technologies" (Kane, 2015: 3) Using this approach, companies manage IT infrastructure and
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operational activities, paying little attention to innovation and transformation of value based
on the process of interaction with the client (Matt, 2015). This makes it possible to argue
that the IT strategy is one of the functional strategies of the company but cannot play the
main role and guide companies in their activities. This is confirmed by the shift in the focus
of perception of the IT strategy as subordinate to the general business strategy of the
company. Bharadwaj (2013: 473) states that digital business strategy "is much more than a
cross-functional strategy, and it transcends traditional functional areas (such as marketing,
procurement, logistics, operations, or others) and various IT-enabled business processes
(such as order management, customer service, and others)". But this approach to strategic
transformation cannot be considered final and comprehensive because it lacks
transformational steps, or, in other words, tactical actions leading to the ultimate goal.
The authors of this article accent that the digital transformation process is most
accurately and comprehensively covered by the digital transformation strategy, which,
according to Matt (2015: 339) "serves as a central concept to integrate the entire
coordination, prioritization, and implementation of digital transformations within a firm".
A digital transformation strategy is considered to be an overarching and company-
wide strategy guiding an organization in its entire digital transformation journey. The
authors states that it helps companies to clarify the initial goals and outline ways to use
opportunities and resources, as well as transform the company's activities into three key
areas: operational, customer-focused, and business models. Illustratively, the transformation
of the concept of strategy in the digital world is shown in Fig. 3.
There are three key elements of strategy development: the ability to plan and execute
the activities for realizing those plans, and the ability to respond to both threats and
opportunities in a timely manner (Turuk, 2020). The implementation of the strategy in the
company's system provides the opportunity to interact with stabilization and economic
development, the satisfaction of social needs and social responsibility, and safety of the
environment as the key elements of sustainable development (Ivanova, 2022).
Essentially, the strategy is a "safety cushion" that allows companies to reduce the
negative effects of emerging obstacles on the way to the company's development. In the era
of digital transformation, these negative effects can manifest even faster and more radically,
which requires constant updating of existing information about changes that occur in the
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external environment, and the formation of an adequate response to these changes.
According to Dell Technologies (2020), among the main barriers to digital progress, 18% of
companies argue for the lack of coherent digital strategy and vision. According to Dell
Technologies (2020), the most common steps that companies are doing for implementing
their digital transformation strategy are presented below (Fig. 4).
Figure 3. The transformation of the concept of strategy in the context of digital
transformation
Source: adapted by the authors
Figure 4. Steps for implementing digital transformation strategy in companies, 2020
Source: built by the authors from (Dell Technologies, 2020).
As can be seen in Fig. 4, the majority of companies are focused on making decisions
based on data in real-time which can prove the desire of companies to become more flexible
57%
49%
42%
38%
34%
29%
3%
2%
0% 10% 20% 30% 40% 50% 60%
Making decisions based on data in real-time
Prioritizing sustainable technology
Practicing DevSecOps
Working with LOBs to identify digital Use…
Practicing Ci/CD
Actively encouraging a fail-fast-then-…
Respondents do not know
None of these
Digital Transformation Strategy
Functional strategy
Business strategy
Corporate strategy
Digital transformation strategy
Digital business strategy
Functional strategy
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and agile to the changes within the internal and external environments of companies.
Companies prioritize sustainable technologies which foster both the economic and social
effects of digital transformation. However, 5% of respondents don’t understand the
importance of digital strategies. And this lack of understanding results in a huge waste of
financial, time, and labor resources.
The authors can highlight the following features of strategy in the era of digital
transformation. Firstly, risk-taking becomes a basic component of the company's activity.
Risk-taking is becoming a cultural norm" (Kane, 2015). The absence of risk makes companies
"inflexible" and unable to react to market changes, customers' potential needs, competitors'
actions, and the appearance of new trends and technologies. The culture must encourage
risk-taking and tolerate failures to succeed (Kane, 2015; BCG, 2022). Moreover, the failure,
in this case, can be considered “as a prerequisite for success”, because companies are thus
moving towards “new levels of competitive advantage” (Kane, 2015: 3). The fear of risk-taking
forces companies to refuse promising opportunities, which threatens to further slow down
long-term development. Accepting risk as an adequate form of activity contributes to the
correct thinking of the company's management. Netflix for example took a risk by moving
completely into the online space, which later made it the leader in the streaming content
market. Traditional and digital companies should use digital opportunities in all spheres of
their activity. Turuk (2018: 63) claims that "Entrepreneurs who do not agree with the
transformation process will lose their competitive positions in the market and may face the
consequences".
Secondly, people become the driver of strategic development, creating both
opportunities and obstacles in the way of the company's strategic development in the era of
digital transformation. Among the opportunities, it is possible to highlight the
innovativeness that arises in the process of team interaction on the way to transform the
value of their products/services. Digital talents and a team of specialists become the long-
term asset of the company, creating synergistic effects in their activities. Currently, there is
a tendency to fight for digital talents who are looking for the best digital companies and
opportunities. The leadership of the company will help to get the best specialists in the
practice market, as they will contribute to the formation, implementation, and correction of
the company's digital transformation strategy. It should be noted that the formation of a
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digital culture within the company, which is difficult to imitate by competitors, can be an
excellent basis for the subsequent strategic development of the company.
Thirdly, strategic business development becomes possible due to the right mindset for
all participants in the process in the era of digital transformation. Thus, there are the leaders
of companies who become the flagships of digital transformation, capturing the entire staff,
and giving new value to existing proposals. And the right attitude among employees ensures
the implementation of the strategic vision of the leader of the company. New roles such as
Chief Digital Officer (CDO) gain key competencies in the implementation of digital
technologies in companies, constantly interacting with senior management and the CEO to
perceive and overcome the complexities in the implementation of the digital transformation
strategy. They also provide training in digital skills to employees and shape the right mindset
of employees regarding technological transformations in the company. Thus, internal
resistance to change, formed by fear of new technologies, often arises among employees. Such
resistance can slow down or change the company's course, making it extremely difficult to
achieve the initial strategic goals. A key approach to solving this issue is to involve employees
in the digital transformation process, train their digital skills, and demonstrate that digital
transformation is about opportunities rather than threats.
Using this approach allows employees to become those insiders who will provide
valuable insight to management about the process of implementing a digital transformation
strategy in the company because they could become more knowledgeable about the
company's affairs than external experts. It can also be argued that a digital transformation
strategy is an ongoing process that starts and then develops and reviews and corrects
constantly. Chanias (2019) emphasizes that digital transformation strategy is a permanent
process that should not be stopped. In addition, developing the digital transformation
strategy may differ from traditional strategic planning.
The distinctive feature of strategies in the digital environment is a leading role in a
period of crisis. An effective company development strategy becomes key during crisis
upheavals and periods of uncertainty, ensuring the company's survival and guaranteeing its
future recovery and prosperity.
Digital technologies help businesses to function continuously in a volatile
environment. But during this time, companies need strategic management more than ever.
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The formation of strategies in times of uncertainty should be first and foremost, based on
McKinsey Digital (2022), aimed at developing strategies based on scenarios detailing
customer behavior shifts, business-model opportunities, and their implications on digital
and technology choices. It helps to understand opportunities to create value for the customer
and how to achieve them by making changes to companies' business models.
The main phases of the digital transformation strategy, also known as "the digital
transformation cycle" (Zineb, 2020: 502) include:
- digital transformation strategy formulation;
- digital transformation implementation;
- digital transformation management.
The primary process of formulating the digital transformation strategy provides an
understanding of the need for transformation of the company. Among the reasons for such
transformation, there may be the decrease in sales, the ineffectiveness of existing business
strategies; the decrease in customer satisfaction, and their preference over other competitors.
The decision made by the leaders is communicated to all employees of the company. Next,
the assessment of the existing state of the infrastructure, labor and financial resources, and
business processes is assessed. The next stage is the initial formulation of the digital
transformation strategy and preparation for its implementation.
Figure 5. Digital transformation strategy implementation
Source: adapted by the authors from (Correani, 2020)
Transformed
Activities,
Tasks and
Services
C
u
s
t
o
m
e
r
s
DT
Scope
Data
Stakehol
ders
Data Platform
AI
Information
and
Knowledge
Processes
Procedures
Business model
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As can be seen from Fig. 5, the beginning of the implementation process of the digital
transformation strategy is connected with the rethinking of the organization's vision of the
process of its further development and the definition of goals and the scope of the
transformation process. These insights make changes to the company's existing business
model. This process occurs due to the influence of information received in real-time and
processed with the help of specific artificial intelligence techniques to generate information
and knowledge, which are further used to obtain transformed types of activities, tasks, and
services (Correani, 2020).
The process of digital transformation occurs during the distribution of work roles and
the formation of a set of strategic partners, as well as the adjustment of procedures and
processes within the company (Correani, 2020). The process of managing digital
transformation is to use the most logical and optimized solutions in a specific situation for
the further implementation of the strategy, and, if necessary, to make adjustments to it. This
course of action is the most relevant, as it allows the company to take all steps from the idea
to the implementation of the strategy. As a result, a new value is formed and the company
and its experience with customers are developed.
4. Discussion
Supporting the results presented in the article (Wu, 2022), it should be noted that the
study of the impact of the company's digital transformation on the risk of stock price collapse
in China is relevant. The study provided evidence that digital transformation can
significantly reduce such risks and provided recommendations for further driving the digital
transformation process of enterprises.
We believe that the authors' study (Katsamakas, 2022) on the use of a systemic
approach is appropriate to prove the importance of formulating and implementing
sustainable business models in the digital transformation strategies of enterprises.
An interesting study (Battisti, 2022) analyzed the economic and financial impact of
remote work and the introduction of digital technologies on workers during the spread of
COVID-19. The study provided an opportunity to contribute to the management literature
on issues related to digital transformation.
We share the opinion of scientists (Li, 2022) that it is appropriate to analyze the
relationship between digital transformation and sustainable productivity. It is noted that
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while digital transformation accelerates economic performance, it reflects an inverse U-
shaped relationship with environmental performance.
Research devoted to the analysis of digital transformation management processes
during re-internationalization is becoming more and more relevant (Yu, 2022). As a result of
the study, two types of transformation were identified: operational and strategic. The
authors emphasize the need to regulate the processes of strategic digital transformation
during the re-internationalization of SMEs.
The results of the study (Proskurnina, 2022) are of practical importance, scientists
managed to form an omnichannel strategy of a retail enterprise in the era of digital
transformation using the example of a domain network of pharmacies. The focus of the
research is the connection of managed digital resources, as well as the formation of team skills
of performers led by a leader in a digital environment.
Conclusion
While digitalization leads to an increase in the efficiency of activities due to saving
resources and optimizing processes, digital transformation is the highest step in the process
of changing the company's philosophy and the processes of creating and transforming value
for consumers. In this process, understanding the importance of strategic development is key
to the long-term success of companies.
It was found that the IT strategy is only one of the functional strategies and cannot be
considered a comprehensive way to achieve the effects of the use of technology. Digital
business strategy is an organic combination of IT strategy with business strategy and goes
beyond traditional functional areas. However, the most complete description of the
company's transformation process in the era of breakthrough digital technologies is the
digital transformation strategy, which conceptually guides the organization on the path of
transforming its vision and creating a new company philosophy. The main features that the
strategy acquires in the context of digital transformation of business and economy are:
- risk as a source of development opportunities;
- people as a driver of implementation of strategic development;
- changing the mindset of all participants in the digital transformation process;
- the creation of new positions (CDO, etc.);
- continuity of strategic development and informality of strategic planning;
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- the key role of strategies in the periods of crisis and uncertainty.
The process of developing digital transformation strategies includes the following
phases: digital transformation strategy formulation; digital transformation implementation;
digital transformation management. Each of these phases has its characteristics and
peculiarities. Given the achievements in solving this issue among scientists, there is still a
need for the following additional research:
- development of recommendations for the implementation of digital transformation
strategies for companies that are just planning to enter the online environment, as well as
companies for which the digital environment is key to their functioning;
- evaluation of the effectiveness of the implementation of digital transformation
strategies;
- comparison of implementations of strategic development of companies of different
industries to identify distinctive and similar features of development;
- the question of the desired scale of digital transformation of companies depending
on the fields of activity.
The obtained results will be useful to scientists and practitioners who plan to develop
digital transformation strategies for companies and will create a better understanding of this
process in the conditions of the leading role of digital technologies.
Acknowledgments
This research is carried out within the framework of the scientific project
"Development of entrepreneurship at the sphere of infrastructural provision of business"
(Order No 0119U103582, 2019-2024, Ukraine).
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