Modeling sectoral digital development processes

Abstract

A conceptual approach to the interpretation of digital development is proposed, which opens opportunities for the operationalization of this concept. Based on this approach, an original model of digital development across various sectors has been developed. The model is grounded in the consideration of digital development as an innovation process in the strict understanding of this concept, as defined in international reference guide for collecting and using data on innovation (Oslo Manual). Furthermore, digital development is proposed to be viewed as a two-stage innovation process influenced by factors from both internal and external environments. The first stage involves digital product innovations (the introduction of ICT products and services to the market), while the second encompasses innovation processes based on the adoption of these products across different sectors, leading to reengineering of business processes. The model also accounts for innovations that alter the functioning of the entire sector (such as digital platforms, industry-specific information systems, etc.). This approach allows for the systematization and utilization of results and methods from various disciplines and research areas in the study of digital development, including modeling of innovation processes and their measurement, models of innovation and digital maturity, and investigations of factors influencing digital and innovative growth. From a practical standpoint, the model can serve as a key management tool at the corporate, industry, and national levels.