Rozanova, N. M. & Lineva, I. V. (2019). Digital Model for a Contemporary Business. Zhurnal Economicheskoj Teorii [Russian Journal of Economic Theory], 16(1), 46-59
Contemporary economy is becoming increasingly dependent on digital technology and communication devices. Digitalization is the key trend of global business. Digital model dictates new standards for doing business and provides a new style of a business life cycle. An IT strategy always follows the business strategy and helps to achieve its purposes. Previously, many companies could afford abstaining from a special IT strategy and only used standard IT tools for solving their business problems. Such an approach has proven to be outdated in the Digital World where disrupting technologies are transforming into crucial key instruments for implementing business and competitive strategies. Such disrupting technologies as data mining and machine learning, cloud development, and Internet of things have advanced as the key drivers in the firm’s competitiveness. The scale of digitalization now exceeds 10 % of GPD in major industrial countries. It means that firms are in need of radical change of their management systems and competitive strategies. Digital World poses new challenges and provides new opportunities for business owners and managers at all levels. That is why the question of how to choose among many versions or create a competitive IT product is vital not only for CIOs but for every manager who would like to see their firm globally competitive. The aim of the article is to provide fundamental characteristics of a special digital model that has been formed in global business. The authors have thoroughly analyzed theoretical papers and practical experience in the digital field to find an effective digital model for a modern business. The first part of the article describes the newest directions of digitalization that are highly prioritized in contemporary economics. The examples of using the latest disrupting technologies by Russian and foreign firms are given. The second part of the article estimates the technological characteristics of an IT product that could be created on the basis of the disrupting technologies. Some recommendations on how to effectively implement these technologies while developing a competitive IT product are given in the conclusion.