Digitalization measurement of the regional organizations: A case of Perm region

Abstract

Introduction. Scientific community is particularly interested in the relevant issues of digitalization and digital transformations at all levels of economy. The article describes the results derived from the questionnaire survey conducted among 126 companies in Perm region. The authors applied their own methodology aimed to measure digitalization of the entities.

Purpose. The authors focus on the development of the respective methodology and its testing. They put forward a hypothesis saying that the proposed methodology is universal, in other words it could be applied in a company specializing in any business activity and scale.

Materials and Methods. The input of the study is the information about the exploitation of digital tools in various business processes within the organizations. The study refers to the authors’ comprehensive methodology of entities’ digitalization measurement and their distribution in a two-criterion matrix by digitalization types.

Results. Hierarchy of several digitalization levels are justified, digitalization penetration borders are defined within a company and its interaction with contractors. A questionnaire has been prepared. It has been shown that Perm region companies mainly digitalize the business processes related to production, finance, and accounting, as well as general economic activities.

Conclusion. The results of the study are of interest both for the managers of the analyzed organizations and the regional authorities that develop digital transformation strategies for the federal districts of the Russian Federation. If the sampling is extended, the findings obtained with the authors’ methodology could contribute into preparing different ratings: an industry digitalization rating, a digitalization rate in micro- and small-, medium-, and large-sized businesses and others. These ratings could be compiled for a particular region and for the country on the whole, which is the focus of the authors’ further research.

Keywords: digital economy, digital transformation, digitalization, digitalization of organizations, digitalization measurement methodology, digitalization of the region, digitalization of the industry, business process, digitalization of business processes, digital maturity of organizations

For citation

Merzlov I. Yu., Shilova E. V. Digitalization measurement of the regional organizations: A case of Perm region. Perm University Herald. Economy, 2023, vol. 18, no. 1, pp. 107–133. DOI 10.17072/1994-9960-2023-1-107-133

References

1. Plotnikov V. A. Digitalization as a logical stage in the evolution of an economic system. The Economic Revival of Russia, 2020, no. 2 (64), pp. 104–115. (In Russian). http://doi.org/10.37930/1990-9780-2020-2-64-104-115
2. Kraus S., Jones P., Kailer N., Weinmann A., Chaparro-Banegas N., Roig-Tierno N. Digital transformation: An overview of the current state of the art of research. SAGE Open, 2021, vol. 11, no. 3. https://doi.org/10.1177/21582440211047576
3. Miroliubova T. V., Radionova M. V. ICT sector role and digital transformation factors in the regional economy in the context of public governance. Perm University Herald. Economy, 2020, vol. 15, no. 2, pp. 253–270. (In Russian). https://doi.org/10.17072/ 1994-9960-2020-2-253-270
4. Kupriianova M. V., Simikova I. P. Methodology of evaluating the level of digitalization in the sphere of industrial production. Law, Economics and Management: Current Issues, 2019, pp. 28–34. (In Russian). https://doi.org/10.31483/r-74149
5. Shinkevich A. I., Nadezhdina M. E. Methodology for assessing the efficiency of digitalization of production processes of a petrochemical enterprise. Herald of the Bauman Moscow State Technical University. Mechanical Engineering, 2021, no. 2 (137), pp. 72–84. (In Russian). https://doi.org/10.18698/ 0236-3941-2021-2-72-84
6. Rada A. O., Fedulova E. A., Kosinsky P. D. New method for efficiency evaluation of digital technologies in agricultural sector. Food Processing: Techniques and Technology, 2019, vol. 49, no. 3, pp. 495–504. (In Russian). https://doi.org/10.21603/2074-9414-2019-3-495-504
7. Pertseva S. Yu. Digital transformation of the financial sector. Innovations in Management, 2018, no. 4 (18), pp. 48–53. (In Russian).
8. Sidyakova A. A. Digital transformation of the financial sector. Advances in Chemistry and Chemical Technology, 2020, no. 1, pp. 21–22. (In Russian).
9. Hoffman D. L., Novak T. P. Bridging the racial divide on the Internet. Science, 1998, vol. 280, pp. 390–391. https://doi.org/10.1126/science.280.53 62.390
10. Katz J., Aspden P. Motives, hurdles, and dropouts. Communications of the ACM, 1997, vol. 40, iss. 4, pp. 97–102. https://doi.org/10.1145/248448.2 48464
11. Attewell P. The first and second digital divides. Sociology of Education, 2001, vol. 74, no. 3, pp. 252–259. https://doi.org/10.2307/2673277
12. DiMaggio P., Hargittai E., Neuman W. R., Robinson J. P. Social implications of the internet. Annual Review of Sociology, 2001, vol. 27, pp. 307–336. https://doi.org/10.1146/annurev.soc.27.1.307
13. Hargittai E. Second-level digital divide: Differences in people’s online skills. First Monday, 2002, vol. 7, no. 4. https://doi.org/10.5210/fm.v7i4.942
14. Peter J., Valkenburg P. M. Adolescents’ internet use: Testing the “disappearing digital divide” versus the “emerging digital differentiation” approach. Poetics, 2006, vol. 34, iss. 4-5, pp. 293–305. https://doi.org/10.1016/j.poetic.2006.05.005
15. Ragnedda M. The Third Digital Divide: A Weberian Approach to Digital Inequalities. Oxford, Routledge, 2017. 136 p.
16. Wei K. K., Teo H. C., Chan B. C., Tan B. C. Y. Conceptualizing and testing a social cognitive model of the digital divide. Information Systems Research, 2011, vol. 22, no. 1, pp. 170–187. https://doi.org/10.1287/isre.1090.0273
17. Van Deursen A. J., Helsper E., Van Dijk J. A. G. M., Eynon R. The compoundness and sequentiality of digital inequality. International Journal of Communication, 2017, no. 11, pp. 452–473.
18. Ragnedda M. Conceptualizing digital capital. Telematics and Informatics, 2018, vol. 35, iss. 8, pp. 2366–2375. https://doi.org/10.1016/j.tele.2018.10.006
19. Ragnedda M., Ruiu M. L., Addeo F. Measuring digital capital: An empirical investigation. New Media & Society, 2019, vol. 22, iss. 5. https://doi.org/10.1177/ 1461444819869604
20. Stolterman E., Fors A. C. Information technology and the good life. Kaplan B., Truex D. P., Wastell D., Wood-Harper A. T., DeGross J. I. (eds) Information Systems Research. IFIP International Federation for Information Processing, 2004, vol. 143, 687–692. https://doi.org/10.1007/1-4020-8095-6_45
21. Gassmann O., Frankenberger K., Csik M. The St. Gallen Business Model Navigator. Working Paper University of St. Gallen. 18 p. Available at: https://wackwork.de/wp-content/uploads/2017/11/ St-Gallen-Business-Model-Innovation-Paper.pdf (accessed 27.08.2021).
22. Verhoef P. C., Broekhuizen T., Bart Y., Bhattacharya A., Dong J. Q., Fabian N., Haenlein M. Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 2021, vol. 122, pp. 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022
23. Henriette E., Feki M., Boughzala I. The shape of digital transformation: A systematic literature review. Ninth Mediterranean Conference on Information Systems (MCIS). Samos, Greece, 2015, pp. 431–443.
24. Liao Y., Deschamps F., Loures E. D. F. R., Ramos L. F. P. Past, present and future of Industry 4.0 – A systematic literature review and research agenda proposal. International Journal of Production Research, 2017, vol. 55, iss. 12, pp. 3609–3629. https://doi.org/10.1080/00207543.2017.1308576
25. Brynjolfsson E., McAfee A. The Second Machine Age. New York, Norton & Company, 2014. 336 р.
26. Schwab K., Davis N., Nadella S. Shaping the Fourth Industrial Revolution. Currency, 2018. 287 р.
27. Li L. China’s manufacturing locus in 2025: With a comparison of «Made-in-China 2025» and «Industry 4.0». Technological Forecasting and Social Change, 2018, vol. 135, pp. 66–74. https://doi.org/10.1016/j.techfore.2017.05.028
28. Xu L. D., Xu E. L., Li L. Industry 4.0: State of the art and future trends. International Journal of Production Research, 2018, vol. 56, iss. 8, pp. 2941–2962. https://doi.org/10.1080/00207543.2018.1444806
29. Kravchenko E. S., Ovsyannikova V. Impact of the digitalization on the enterprise business model: Algorithms, models and tools of the digital transformation. Bulletin of the Automobile and Highway Institute, 2021, no. 4 (39), pp. 111–119. (In Russian). EDN GEPAFR
30. Roblek V., Meško M., Krapež A. A complex view of Industry 4.0. SAGE Open, 2016, vol. 6, no. 2. https://doi.org/10.1177/2158244016653987
31. Rossato C., Castellani P. The contribution of digitalisation to business longevity from a competitiveness perspective. The TQM Journal, 2020, vol. 32, iss. 4, pp. 617–645. https://doi.org/10.1108/TQM-02-2020-0032
32. Parviainen P., Tihinen M., Kaariainen J., Teppola S. Tackling the digitalization challenge: How to benefit from digitalization in practice. International Journal of Information Systems and Project Management, 2017, vol. 5, no. 1, pp. 63–77. https://doi.org/10.12821/ ijispm050104
33. Legner Ch., Eymann T., Hess T., Matt C., Bohmann T., Drews P., Madche A., Irbach N., Ahlemann F. Digitalization: Opportunity and challenge for the business and information systems engineering community. Business & Information Systems Engineering, 2017, vol. 59, no. 4, pp. 301–308. https://doi.org/10.1007/s12599-017-0484-2
34. Popov E. V., Simonova V. L., Tikhonova A. D. Improved methodological tools for evaluation of interfirm interaction efficiency in the context of digitalization. Perm University Herald. Economy, 2021, vol. 16, no. 3, pp. 276–290. (In Russian). https://doi.org/10.17072/1994-9960-2021-3-276-290
35. Calvino F., Criscuolo C. Business dynamics and digitalization. OECD Science, Technology and Industry Policy Papers, 2019, no. 62. https://doi.org/10.1787/6e0b011a-en
36. Zangiacomi A., Pessot E., Fornasiero R., Bertetti M., Sacco M. Moving towards digitalization: A multiple case study in manufacturing. Production Planning & Control, 2020, vol. 31, iss. 2-3, pp. 143–157. https://doi.org/10.1080/09537287.2019.1631468
37. Liao Y., Deschamps F., Loures E. de F. R., Ramos L. F. P. Past, present and future of Industry 4.0 – A systematic literature review and research agenda proposal. International Journal of Production Research, 2017, vol. 55, iss. 12, pp. 3609–3629. https://doi.org/10.1080/00207543.2017.1308576
38. Schneider P. Managerial challenges of Industry 4.0: An empirically backed research agenda for a nascent field. Review of Managerial Science, 2018, vol. 12, iss. 3, pp. 803–848. https://doi.org/1007/s11846-018-0283-2
39. Lasi H., Fettke P., Kemper H. G., Feld T., Hoffmann M. Industry 4.0. Business & Information Systems Engineering, 2014, no. 6, pp. 239–242. https://doi.org/10.1007/s12599-014-0334-4
40. Köbnick P. Digitalisation and Business Model Innovation: Exploring the Microfoundations of Dynamic Consistency: Doctoral thesis. Queens’ College, University of Cambridge, 2020. 218 p. Available at: https://www.repository.cam.ac.uk/bitstream/handle/1810/317890/20210218%201230%20Thesis_pk377_ final%20submission.pdf?sequence=1&isAllowed=y (accessed 27.07.2021).
41. Kovaitė K., Stankevičienė J. Risks of digitalisation of business models. Contemporary Issues in Business, Management and Economics Engineering, 2019, pp. 380–387. https://doi.org/10.3846/cibmee. 2019.039
42. Gates B. Business @ the speed of thought. Business Strategy Review, 1999, vol. 10, iss. 2, pp. 11–18. https://doi.org/10.1111/1467-8616.00097
43. Appel S., Kleber P., Frischbier S., Freudenreich T., Buchmann A. Modeling and execution of event stream processing in business processes. Information Systems, 2014, vol. 46, pp. 140–156. https://doi.org/10.1016/j.is.2014.04.002
44. Davenport T. Process innovation: Reengineering work through information technology. Boston, Harvard Business School Press, 1999. 352 р.
45. Jünger J., Mynarzová M. Význam podnikání ve společnosti. Podnikání v podmínkách Evropské unie. Katowice: Górnoslaska Wyzsza Szkola Handlowa, Slezská univerzita v Opavě, Urzad Miejski v Chelmku, 2009, pp. 213–224.
46. Earl M. J. The new and the old of business process reengineering. Journal of Strategic Information Systems, 1994, vol. 3, iss. 1, pp. 5–22. https://doi.org/10.1016/0963-8687(94)90003-5
47. Edwards C., Peppard J. Forging a link between business strategy and business reengineering. European Management Journal, 1994, vol. 12, iss. 4, pp. 407–416. https://doi.org/10.1016/0263-2373(94)90027-2
48. Rockart J. F. The line takes the leadership – IS management in a wired society. Sloan Management Review, 1988. Available at: https://sloanreview.mit.edu/ article/the-line-takes-the-leadership-is-management-in-a-wired-society (accessed 28.11.2021).
49. Singh P. K. Management of business processes can help an organization achieve competitive advantage. International Management Review, 2012, vol. 8, iss. 2, pp. 19–26.
50. Dickmann E. The basic business processes and business process management. The Five Echelon Group, September 28, 2021. Available at: https://five echelon.com/basic-business-processes-and-business-process-management/# (accessed 27.07.2021).
51. Novitskaya A. A. The digitalization level measurement of the economic system based on a process approach. Vesti of Institute of Entrepreneurial Activity, 2020, no. 2 (23), pp. 91–98. (In Russian). EDN FYBBFN
52. Ragnedda M., Ruiu M. L., Addeo F. Measuring digital capital: An empirical investigation. New Media & Society, 2020, vol. 22, iss. 5. pp. 793–816. https://doi.org/10.1177/1461444819869604
53. Ageev A. I., Asanova E. A., Glibenko O. V., Remizov M. V, Smirnova V. A. K tsifre gotov? Otsenka adaptivnosti vysokotekhnologichnogo kompleksa Rossii k realiyam tsifrovoi ekonomiki. Moscow, 2018. 61 p. (In Russian).
54. Grebe M., Rüßmann M., Leyh V., Franke V. R., Anderson W. The Leaders’ path to digital value. BCG, June 21, 2021. Available at: https://www.bcg.com/publications/2021/digital-acceleration-index (accessed 27.07.2021).
55. Lichtblau K., Stich V., Bertenrath R., Blum M., Bleider M., Millack A., Schmitt K., Schmitz E., Schröter M. Industrie 4.0 Readiness. Aachen, Cologne, Oct. 2015. 78 p. Available at: https://impuls-stiftung.de/wp-content/uploads/2022/05/Industrie-4.0-Readiness-english.pdf (accessed 08.08.2021).
56. Gorodnova N. V., Peshkova A. A. Digital capabilities of the industrial enterprise: Substance and methods. National Interests: Priorities and Security, 2019, vol. 15, iss. 5, pp. 870–896. (In Russian). https://doi.org/10.24891/ni.15.5.870
57. Timokhina O. A., Blizkey R. S. Estimation of the digitalization of industrial enterprises process as one of the priority tasks in the strategic management system of modern organization. Management in Russia and Abroad, 2020, no. 5, pp. 48–55. (In Russian). EDN RUTIFH
58. Khachatruan G. A., Mukhina I. V. Company digital transformation management: Corporate model of digital maturity express assessment. Aktual'nye problemy ekonomiki i menedzhmenta, 2020, no. 3 (27), pp. 149–162. (In Russian). EDN EZWHFK
59. Babkin A. V., Pestova A. Yu. Algorithm of the assessment of level of digitalization of the industrial enterprise. Babkin A. V. (ed.) Tsifrovaya transformatsiya ekonomiki i promyshlennosti, 2019, pp. 673–680. (In Russian).
60. Burlaka D. S. Razrabotka metodiki otsenki urovnya tsifrovizatsii predpriyatiya: magisterskaya dissertatsiya. Saint Petersburg, 2020. 153 p. Available at: https://nauchkor.ru/pubs/razrabotka-metodiki-otsenki-urovnya-tsifrovizatsii-predpriyatiya-5efdd9d0 cd3d3e00013dcd30 (accessed 08.08.2021).
61. Merzlov I. Yu., Shilova E. V., Sannikova E. A., Sedinin M. A. Comperehsnive methodology for assessing the level of digitalization in the organizations. Journal of Economics, Entrepreneurship and Law, 2020, vol. 10, no. 9, pp. 2379–2396. (In Russian). http://doi.org/10.18334/epp.10.9.110856

Show full text