The research is devoted to the analysis of the essence of the concept of digitalisation and its impact on the development of the economy and society. The structure of the research consists of three stages: analysis of approaches to the interpretation of the concept of “digital economy” and the main characteristics of this concept, analysis of approaches and assessments of the impact of digitalisation and information and communication technologies (ICT) on the economic development of countries, identification of advantages and threats that digitalisation presents to society. According to the structure of the study, the essence and key characteristics of the digital economy concept have been specified; the main indices used to assess digitalization and the impact of ICT on the economic development of countries have been considered; the assessment of digitalisation of countries based on the indices has been carried out. It has been revealed that, despite the variety of methods for calculating indices of digitisation and ICT development, the leading countries have already been determined, and they have not significantly changed their positions, so the international economy continues to move towards the digital future at different rates, which, in turn, determine transformational shifts in economies of countries. The generalization of modern studies has made it possible to detect the advantages and threats (of economic, social, technological, political, and control nature) that digitalization presents. It has been proven that its influence on the development of society is contradictory. Therefore, in order to obtain benefits from the spread of digitalisation, a careful and balanced approach to the introduction of digital technologies in all spheres is necessary, taking into account the specifics of the processes taking place and the specifics of the development of countries, as well as the responsible interaction of states in controlling the spread of digital technologies.
TopIntroduction
The modern digital age changes approaches to doing business, ensuring competitiveness, and requirements for the information technologies that are being used. In 2010, the Digital Agenda for Europe was implemented; its main goal was the development of the European economy, aimed at ensuring sustainable socio-economic benefits for the single digital market (Szeles & Simionescu, 2020). In this new environment, digital technologies have had a more significant impact on the economy and society.
Digital tools such as social, mobile, analytical and cloud (SMAC) technologies boost digitalisation (Teubner & Stockhinger, 2020), accelerating not only technological progress but also economic and social progress (Legner et al.,2017). Aström et al. point out that digital technologies play a central role in the creation and the reinforcement of disruptions that take place in society and the levels of industry (Aström et al., 2022). Teubner R.A., Stockhinger J. (Teubner & Stockhinger, 2020)prove that digitalisation refers to the interaction between digital technologies and both the social and the institutional processes converting these technologies into infrastructural technologies and impacting on society and the economy.
Therefore, technology trends emerging as a result of digitalisation, such as IoT (Internet of Things), AI (Artificial Intelligence), data analytics by means of Big Data, and AR (Augmented Reality), not only have a considerable impact on society and the working environment, but also on business operations in industry (Oberzaucher, 2019):
IoT (Internet of Things) is a network of connected devices (sensors) that generates data used to collect, analyse and provide information for making informed decisions. According to Cisco, by 2030, 500 billion devices will be connected to the Internet. The world's ever-increasing Internet connection opens up new opportunities for companies, organizations, governments, and individuals (Figures 1 and 2).
AI (Artificial intelligence) imitates various aspects of human cognition - perception, reasoning, planning and the ability to autonomously perform certain tasks (understanding the language, recognizing objects and sounds, learning and solving problems). Many researchers of the world define AI as the most important technology ever invented. AI-powered digital twin simulations are already implemented in many manufacturing industries. These technologies present unprecedented opportunities to forecast processes and new business strategies.
Big Data. Today, the volume of accumulated data is constantly growing. Big Data are sets of information of such large sizes that traditional methods and approaches cannot be applied to them. Therefore, the leading digital trends of the next decade will concern tools that can analyse and use such data. The world's leading companies are already developing tools and methods for Big Data processing and analysis. Microsoft, SAP, SAS, and Salesforce are leaders in this market.
AR/VR (Augmented/Virtual Reality). AR is the result of introducing any sensory data into the field of perception in order to supplement information about the environment for improving the perception of information. VR is a world created by technical means and transmitted to a person through their senses (sight, hearing, touch, etc.). Currently, VR and AR are one of the most important technological trends that can supplant other technologies and displace conventional mobile communication. Industry has already tested virtual applications in mobile devices for maintenance, operation and training and, in many cases, it is successfully implementing them. In addition, AR and VR applications can be employed as sales tools to increase business success (Oberzaucher, 2019; Khaustova et al., 2022a;Khaustova et al., 2022b).
In fig. 1, there are results of a study into the vision of the future of 2,300 managers in 15 countries and the key factors in creating an IoT strategy. Fig. 2 presents the dynamics of IoT connected devices installed base worldwide from 2015 to 2025.
The information shown in fig. 1 and 2 reflects the steady growth of the role of IoT and digitalisation in the modern world.