Social and Economic Effects of Digital Transformation

¹ Kadyrov Chechen State University, Sheripova Street, 32, 364024, Grozny, Russia
² North Caucasian State Academy, Stavropol’skaya st., 36, 369001, Cherkessk, Russia

^* Corresponding author: baudi@yandex.ru

Abstract

The intensive development and spread of digital technologies in recent years has significantly changed the face of key sectors of the economy and the social sphere. More and more organizations are seeking to transfer business processes to the digital environment, thereby significantly reducing transaction costs and significantly increasing the volume of economic activity. A giant, virtually barrier-free, market is emerging on the Internet with truly global competition and very high dynamics of all its elements (companies, products and services, consumers). Under such conditions, the ability to process and analyze large amounts of data becomes an important factor in competitive advantage. The sustainability and prospects for business development are determined by the ability to respond to changing customer needs many times faster than even some 20-30 years ago and quickly bring new products and services to the market through electronic sales channels. Today, the market value of many companies is largely determined by “digital assets” (the size and loyalty of the Internet audience, brand awareness and reputation in cyberspace, etc.).