S2 Paper 4
S2 Paper 4
Liubava Chernova1, Iryna Zhuravel1, Evgeniy Trushliakov1, Anatoliy Zubarev1 and Inna
Maister1
1Admiral Makarov National University of Shipbuilding, Heroiv Ukrainy Avenue 9, Mykolayiv, 54025, Ukraine
Abstract
The article is about how digital transformation converts the strategic vision of enterprise management,
and the management competence of personnel with acquired digital skills and thinking to implement
the necessary operational processes. The article discusses the technologies of digitalization of
enterprises with the changes that these technologies have made to project management. The
transformations of the IT structure, which acts as a platform for digital transformation, are considered.
An example of an enterprise management model is given, where the digitalization of project
management is aimed at increasing the efficiency of the project with the possibility of automation
management decision-making and acquiring high-tech competitive advantages.
Keywords 1
Digital transformation, project management, enterprise digitalization technologies, IT structure
1. Introduction
Digital data, unlike analogue data, can be used (stored, processed, tracked, duplicated) without
degradation in quality, at very high speeds and with negligible marginal costs. Such features of
digital data are one of the factors contributing to the development of digital technologies and a
by-product of their use. Due to the ubiquity of mobile consumer technologies and the increase in
time spent online, the world has seen an unprecedented increase in the amount of created, copied
and consumed data over the past ten years. The total amount of created, recorded, copied and
consumed worldwide data has grown from 2 zettabytes in 2010 to 64.2 zettabytes in 2020 and is
projected to rapidly increase to over 180 zettabytes in 2025 (1 ZB = 1012 GB). According to
forecasts, in line with significant data growth, the installed base of data storage capacity is
projected to increase at a compound annual growth rate (CAGR) of 19.2 per cent between 2020
and 2025. However, data itself is not necessarily valuable. It becomes valuable only to the extent
that it’s used to improve social and economic processes, organizational and management
methods.
DTESI 2023: Proceedings of the 8th International Conference on Digital Technologies in Education, Science and
Industry, December 06–07, 2023, Almaty, Kazakhstan
[email protected] (L. Chernova); [email protected] (I. Zhuravel); [email protected] (E.
Trushliakov); [email protected] (A. Zubarev); [email protected] (I. Maister)
0000-0001-5191-0272 (L. Chernova); 0000-0002-3747-4387 (I. Zhuravel); 0000-0001-6171-5438 (E.
Trushliakov); 0000-0001-7868-4519 (A. Zubarev); 0009-0003-1247-9266 (I. Maister)
© 2023 Copyright for this paper by its authors.
Use permitted under Creative Commons License Attribution 4.0 International (CC BY 4.0).
CEUR
ceur-ws.org
Workshop ISSN 1613-0073
Proceedings
creation of new data services, which are unexpected for those who originally collected the data
[1].
Data analytics is necessary to extract information from data sets and create value. With the
advent of “big data” (available in a variety of formats and at very high speeds), it is becoming
increasingly important for organizations to create capabilities to obtain information, generate
knowledge and support decision-making. This includes both setting up the technology needed to
collect, store and protect data, as well as ensuring the human resources for managing the data
using software, artificial intelligence and visualization tools.
Digital transformation is a process that covers both technological, cultural and social aspects.
It builds on the opportunities that technological advancements provide to redefine the way of
interaction, the way organizations operate, and the way people build trust, store information,
create value and transact. Eventually, it provides opportunities for businesses to innovate. It is
multidisciplinary by its nature and can’t be boiled down to any single component or application
area.
Successful digital transformation requires not only technological modernization but also a
strategic vision of management competence of personnel equipped with the appropriate digital
skills and mindset to implement all operational processes.
In enterprise management, technological changes provide the opportunity for companies to
move beyond the simple introduction of digital tools to improve existing operations, and instead,
innovate to create new digital products, develop value chains and fundamentally transform
existing projects to achieve complete digital transformation.
5G
Artificial networks The Internet
intelligence of Things
Electronic Enterprise
invoicing resource Radio
planning frequency
identification
Digital
Established
technology New
ecosystem E-commerce technologies
technologies
Customer Social
relationship Supply chain
networks
management management
Analytics of
Blockchain Cloud large volumes
computing of data
New technologies:
• 5G networks represent the next generation of wireless technology that provides up to 200
times faster connections than the widely used nowadays 4G networks and is expected to cause
a wave of software and hardware innovation across all sectors. 5G networks will increase
bandwidth for more reliable and faster communication between machines and will connect
tens of billions of communication devices, machines and objects to the Internet.
• The Internet of Things (IoT) covers devices whose state can be changed via the Internet,
with or without the active participation of individuals. It includes objects and sensors that
collect and exchange data with each other and with people, for example, from devices for
monitoring the working state of equipment to advanced device areas such as autonomous
vehicles.
• Analytics refers to the use of various methods and tools to analyze large volumes of data
that are generated as a result of the increasing digitization of content, greater monitoring of
human activities and the spread of the Internet of Things. This technology can be used to
establish relationships, dependencies, and predict outcomes and behaviour. For example,
retailers use big data analytics on a regular basis to make personalized offers to customers
based on their interests as determined by their web browsing and purchasing behaviour.
• Cloud computing is a service that is accessed via the Internet. Cloud computing offers
flexible access to additional computing power, storage capacity, databases and software online
at a rate that meets a business's short-term needs. Cloud computing minimizes technology
upgrade costs, freeing businesses from upfront hardware and software investments and
recurring maintenance, IT and certification costs.
• Artificial intelligence (AI) refers to the ability of machines and systems to acquire and
apply knowledge and implement intelligent behaviour. It involves performing a wide range of
cognitive tasks, such as perception, processing spoken language, making inferences, learning,
decision-making, and demonstrating the ability to move and manipulate objects appropriately.
Progress in the application of AI is driven by machine learning (where machines make
decisions based on probability functions learned from experience), which allows to create the
new types of software and robots that are widely used in industry, for example, to automate
routine tasks.
• Blockchain is a distributed ledger that is maintained and stored on a network of
computers. The network regularly updates the registry at all sites where it exists, so all copies
of it are always identical. This means that records are visible and verifiable to everyone on the
network, which eliminates the need for intermediaries for authentication. Thus, this
technology provides "trust by default" and the ability to reduce transaction costs by
eliminating the need for intermediaries to securely value transfer or sign legal agreements.
The digital technologies described above hold significant potential for improving enterprise
productivity and eventually improving living standards. Despite the fact that the full impact of
new “general purpose” technologies such as artificial intelligence on productivity has not yet been
fully realized, extensive literature demonstrates a positive correlation between the adoption of
established digital tools and enterprise productivity. For example, a recent preliminary estimate
based on firm-level data from EU countries suggests that a 10 percentage point growth of the
share of enterprises using cloud computing in an industry would lead to an average increase in
the productivity of enterprises in the same industry by 2.3% for 3 years.
The channels through which digitalization can improve the performance of enterprises are
varied. For example, advanced data analytics can reveal hidden patterns and optimize the
selection of suppliers, as well as conduct more productive negotiations with them and reduce
logistics costs; enterprise resource planning software permit to manage reserves just-in-time and
reduce warehouse costs; manufacturing plants can improve the quality of their products at a
lower cost by using automation, RFID sensors, and predictive algorithms in quality control, a
highly labour-intensive aspect of manufacturing operations. When it comes to marketing and
sales, businesses can leverage digital solutions to better understand customers by analyzing their
online shopping behaviour, preferences and social media usage patterns, and then use the
findings to create more effective marketing messages and increase sales.
Businesses operating in different countries and industries vary significantly in their use of
digital technologies. For example, businesses in sectors such as agriculture and real estate
consistently demonstrate lower rates of digital adoption than businesses in telecommunications
and IT services, reducing the overall impact of digital technology on overall productivity [4,13].
The average picture hides a widening gap in productivity between “leading” and “lagging”
enterprises. While a small proportion of high-performing enterprises show significant
productivity growth, most enterprises' productivity growth remains stagnant, a trend that is
particularly pronounced in sectors used digital technology intensively. Digitalization apparently
contributed to this trend, as the most productive businesses are also more likely to adopt new
technologies and take advantage of them.
E
N
Environmental variability T
E
with high risks
R
COMPANY
"PRE-ROJECT"
DIGITAL
STAGE
TECHNOLOGIES SPECIALISTS
Digital transformation
FORMATION OF
EXECUTION OF THE PRINCIPLES:
"PROJECT" STAGE
PROCESSES:
• Emergent intelligence of
• Creation of a digital project participants
business model • Coordinating activities of
• Automation of project curators and practice
management decisions leaders
• Autonomous project • Project monitoring
management system • Change management
E
Expanding the X knowledge base
I
T
Digital management in projects concerns not only organizational changes but also the
transformation of the project itself [8]. The new generation of consumers is becoming selective
and demanding in meeting their personal expectations. With the use of digital management tools,
the final product becomes more personalized. For example, big data analysis can be used to create
innovative offers with unique properties, so the consumer can receive those product
characteristics that are important to him. It is important to emphasize here that the introduction
of digital management also works to decrease the cost of project development. Human resources
are freed up and the time required to make changes to the project is reduced.
The use of digital management contributes not only to maintaining existing competitive
advantages but also to acquiring new, high-tech ones.
During the digital transformation of an enterprise, there is a redistribution of functionality and
a separation of the competencies of digital tools (technologies) and the competencies of the
project manager and project team, i.e. implementation of digital management in the activities of
the enterprise. A project management model in the context of digital transformation may look
like this. This model is based on the division of competencies for digital technologies (managed
subsystem) and for project stakeholders (control subsystem).
The model is presented in two planes: “digital resources” and “human resources” of the
company (Figure 2).
Changes in mostly these resources will occur.
Within the framework of trends of project management development and updated
international standards, the concept of a project is considered in a more meaningful form, with
special attention paid to the pre-project and post-project stages [9].
The three main stages of project implementation are the pre-project stage (extended project
initiation stage), the project stage, and the post-project stage (operation stage). Before the start
of design work, it is assumed that the company is already using new digital technologies, and
employees have the necessary skills to work with them. To increase the efficiency of project
implementation within the building of a digital business model of a project organization, the
following stages of transformation are performed: automation of making managerial decisions
management; autonomous project management system.
The main vector for the development of digitalization at the project stage is the
implementation of process activities. At the same time, the main priority for people will be the
formation of work principles - interaction within the project team, communications with
stakeholders and relationships with consumers.
Due to the shift in focus of activity and the potential liberation from routine, caused by
processes, the competencies of the project manager also change. They are presented in the
corresponding field. The process of forming principles of activity is characterized by the concept
of “emergent intelligence”. The term is interpreted as a certain state of project participants, in
which they represent an integral system aimed at the successful implementation of the project,
and possessing properties that its components did not previously possess. Obviously, in practice,
these properties will relate to the area of solving intellectual problems in project management.
Today this term is quite applicable to project teams, but its extension to all stakeholders of the
project still encounters a number of barriers [14]. There must be a restructuring of collective
behaviour so that customers, contractors, and sponsors are ready for changes in the project and
are willing to sacrifice their personal interests in order to obtain high results and successful
completion of the project. In other words, all participants must be willing to compose this system.
The post-project stage also seems to be more prolonged; it includes not only tracking the
further life of the project (its operation, payback, and other indicators) but also processing
information on the project and subsequent conclusions.
Digital resources are responsible for creating a database, creating a project archive and
experience analytics. Previously, this functionality was performed by the project manager or the
Competence Center. After completion of the project, the design organization receives a
knowledge base, which today is the main value in the market. The principle of redistribution of
competencies, a shifted focus on the ability to coordinate and integrate the project team by the
manager, is supported by updated international project management standards.
Digital transformation has a significant impact not only on the technologies used, but also
affects strategies, processes, customer relations, and interaction with employees. In this context,
the impact of digital transformation on project management is also non-negotiable. However, a
fairly wide range of such impacts can be identified: from expanding the scope of project activities
as a result of the implementation of transformation processes to changes in project management
methodology, in particular, the role of flexible approaches is increasing. Digital technologies are
radically changing the role and process of project implementation. Agility is not only becoming
the preferred approach in software development, agile methods are becoming more
commonplace, offering impetus for the hybridization of project management methodologies
across organizations. In addition, digital transformation is causing changes in project
management processes. Mobile hardware, cloud computing, or integrated software are typically
used for data storage, automated information retrieval, and prototyping and simulation functions.
In this area, communications in project teams and contacts with customers or recipients of the
project product are changing, for example, thanks to cloud technologies. As a result of
digitalization and access to large amounts of data, the decision-making process, its speed and
quality are changing. IT systems and project management applications can significantly impact
all of the above characteristics, allowing project managers to focus on goals rather than day-to-
day operations, reducing planning and control time, reducing decision-making, providing better
access to resources and the ability to reduce costs.
The impact of digital transformation on project management results is significant:
• improved productivity: digital tools allow you to automate routine tasks, optimize the use
of resources and simplify management processes;
• more accurate planning and risk management: digital tools enable more accurate project
planning, resource accounting, scheduling and budgeting;
• improved communication and collaboration: digital tools provide more effective and
transparent interaction between project participants;
• improved control and monitoring: digital tools allow you to continuously track project
progress, collect and analyze data on task completion, costs, resources and deadlines;
• improved analytics and data-driven decision-making: digital transformation allows to
collect, analyze and interpret large volumes of data related to project management;
• enhanced quality management: digital tools enable better control and management of
project quality.
7. Conclusion
The topic of digital transformation is relevant in all sectors of the economy, the public sector and
private business. The effectiveness of introducing digital technologies into the process and
project activities of companies has become obvious. Positive data on the use of new tools provide
impetus for theoretical study and practical use. However, digital transformation is not happening
everywhere. There are the following reasons: lack of understanding of the algorithm for
disseminating digital technologies into an already established organizational system;
unpreparedness of management for a global restructuring of business processes; lack of qualified
personnel to configure software products and train staff; and employee resistance.
Thus, to eliminate the identified problems, it is necessary to develop methodological
approaches to digital management, provide practical tools, and regulations for the gradual
expansion of the presence of digital transformations in the company. Today this is the most
important task not only for project management practitioners but also for the entire scientific
community of the industry.
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