THE FEATURES OF BUSINESS DIGITIZATION DEVELOPMENT INDICATORS IN SELECTED ECONOMIES

Abstract

Digitization increases operations efficiency, innovative processes, value creation and delivery in business activity. Many developed countries use digital transformation as one of the strategies for improving their enterprises operations. Business digitization highly depends on country financial investments to network physical infrastructure, relevant skills, various regulations, use and adoption of technologies. However, there are still large differences in business digitization across countries. The aim of the study is to perform a comparative analysis of business digitization development indicators in Lithuania and Bulgaria. The aim was reached by performing a theoretical justification of the concept of business digitization and to identify the main conditions and development indicators of business digitization, and by conducting a comparative evaluation study of business digitization development indexes and indicators. The overview of literature of business digitalization was conducted and it was found that the difference between Industry 4.0 and Industry 3.0 is that the latter was based on the global transition of specimen data from analogue to digital signals, and the Industry 4.0 develops on Industry 3.0. Also, it was found that the development of business digitalization is closely related to the country's level of digitalization, which depends on several conditions, such as: digitalization-related government decisions, regulation, communication infrastructure and availability, skills, financial incentives, and the use of technology. The research was conducted by comparing five dimensions of Digital Economy and Society Index (DESI) 2022 that are: Connectivity, Digital skills, Use of Internet, Integration of Digital Technology, Digital Public Service, and three dimensions of ICT Development Index (IDI) 2017 that are: Access, Usage and Skills. The results of DESI 2022 and IDI 2017 showed that Lithuania in both indexes ranks higher than Bulgaria, and the weakest area in Lithuania is DESI 2022 dimension of Connectivity. Thus, more targeted investments for the development of 5G network development and accessibility is needed for better adoption and development of intelligent technologies that are the future of all businesses, and society.