MAIN PRIORITIY AREAS AND PROBLEMS OF UKRZALIZNYTSIA’S DIGITALIZATION

Abstract

In this paper we have outlined the main priority areas in digitalization of Ukrzaliznytsia according to the ones stated by the Community of European Railway and Infrastructure Companies in Vienna declaration, and also  analyzed the current situation  regarding digitalization in Ukrainian railway transport in each of these areas. The priority areas are Smart technical operations, Smart infrastructure, Smart freight and passenger transport, Smart ticketing, and Smart human resources. There are a few projects implemented by Ukrzaliznytsia (such as tracking rolling stock in real time with the help of the Internet of things, digital ticket, updating the automated "Monthly Plan" system, creating an electronic client's office, modernizing the customer service call center, etc.) and several ones which are in progress. Smart human resources appeared to be the less developed area in which there are no relevant projects, only regular professional development courses provided once in 4 years. Therefore we suggested digitalization of HR departments so that their specialists will be able to deal with great amount of employees’ documents more efficiently and therefore, boost effectiveness of dealing with personnel. Moreover, it might bring to life a shift to  transparency, e.g. transparent application and recruitment process, transparent  remuneration and feedback. But we should admit that a great problem connected with nepotism and corruption makes aforementioned shift highly unlikely and this is an urgent problem to cope with. Also, we have identified main problems impeding digitalization in  Ukrzaliznytsia with the help of a cause-effect diagram (Ishikawa diagram). They appeared to be caused by  financial factors (lack of investments), human factors (ineffective staff motivation and manager’s reluctance to change), technical factors (insufficient technical level of fixed asset) and organizational factors (no system approach to digitalization). To our mind, the crucial one that should be solved first is manager’s reluctance to change (due to corruption and outdated mindsets). It explains the absence of official Strategy or Programme of digitalization  in Ukrzaliznytsia and consequently, a relevant department in its structure. Should this great obstacle be overcome, others will be solvable, especially with the help of European railways, as it is promised in Vienna Declaration on commitment to support Ukrainian Railways. The results obtained in the paper can be used in further research in this realm, particularly in working out Strategy of digitalization for  Ukrzaliznystia.