Digital transformation of project management in business
Introduction
Digital transformation of business, as a global trend, encourages us to reassess traditional disciplines and methodologies, including in the social sphere (e.g. in the delivery of public services), in the changing economic structure and in the development of telecommunication technologies, especially in the field of project management. Unlike conventional digitalisation, which implies the automation of processes, digital transformation is based on innovative business ideas and is implemented within a specific strategy. However, no matter how promising the strategy is, its successful implementation depends on the company's ability to bring it to life. This is where project management methods backed by significant experience come in. While digitalisation focuses on the automation of individual business processes, digital transformation is a set of projects that digitise a client's key business processes.
What is digital transformation?
The concept of digital transformation, as well as some related ones, such as digital maturity and digitalisation, is relatively new in professional circles. There is no universally accepted definition of it in the scientific literature, in international statistical measurement manuals, or in government documents (Table 1).
The examples of definitions given in the table show that the concept of ‘digital transformation’ is very multifaceted and can be interpreted extremely broadly. ‘Blurriness’ of the content of the concept of “digital transformation” is aggravated by the fact that it characterises relatively new, largely unexplored and very dynamic phenomena.
Many researchers consider digital transformation as a process of change (transformation) of established economic and social institutions due to the introduction of digital technologies. However, digital technologies themselves are developing so rapidly and sometimes unpredictably that it becomes extremely difficult, often almost impossible, to foresee even in general terms the consequences of their spread.
In the practice of leading countries, digital transformation implies the industry principle of supporting the introduction of new technologies. At the same time, programs and projects can be built both on the principle of introducing any one promising group of technologies in several industries, where this is especially relevant, and, conversely, provide for the digital transformation of a certain industry through the forced introduction of a variety of technologically heterogeneous solutions in demand in this sector of the economy or the social sphere.
An example of the first approach is the artificial intelligence (AI) development program in Singapore, which involves the implementation of five sectoral projects: intelligent freight transport planning, seamless provision of public services, early diagnosis and prediction of chronic diseases, personalization of educational trajectories and automation of migration procedures [Smart Nations, 2019].
The second approach is vividly illustrated by the numerous programs initiated in 2020 in the health sector in connection with the need to combat the COVID-19 pandemic. Thus, the United States has implemented a $200.0 million telemedicine services support program [Federal Communications Commission, 2020]; the European Union has allocated 55.0 million euros to support innovative projects to combat the pandemic [European Commission, 2021]; The German Ministry of Health has allocated 3.0 billion euros for the introduction of high-tech solutions, remote services for patients, medical robotics, as well as improving information security [Gesetzentwurf der Fraktionen der CDU/CSU und SPD, 2020].
Project management of automation, digitalization and digital transformation
The introduction of end-to-end digital technologies is implemented with the active use of project management techniques and tools, including such areas as project portfolio management, program management and individual projects. At the level of public administration, there is a system of national projects, which mainly uses program and portfolio management tools. Tools for managing regional programs and projects are used at the regional level of government. At the enterprise and company level, project management tools are used in all three of its areas (project portfolio management, program management and individual project management), depending on how much the introduction of new technologies is carried out as automation, digitalization or digital transformation. In this regard, I would like to note that when enterprises and companies choose to introduce new technologies, automation can be understood as the introduction of information technology solutions that reproduce existing non-digital production and documentary processes. The result of automation are the same processes that existed before, but only implemented using information technology. If we consider the issue of the introduction of technologies aimed at digitalization, then two aspects can be distinguished: narrow and wide.
A narrow aspect, often also referred to as "digitization" (in English terminology – digitalization), is understood as the transformation of information from an analog form into a digital one (for example, the translation of information from paper into digital form) or the creation of a digital object from (or for) a similar physical one (for example, the creation of a computer model). The broad, it is also the most widespread, aspect (in English terminology – digitalization) covers the use of digital technologies to optimize production and management processes, improve products and services, and methods of product promotion. Digitalization in a broad sense involves the design, development, implementation and development of information technology solutions, products and systems to change individual business processes, create new value propositions, and develop new sales channels. Digitalization is realized not only through information technology, but also through various management techniques, such as business process reengineering, lean manufacturing, etc. When choosing project management and technology implementation within the framework of digital transformation, the goal is to change the principles of doing business through coordinated sociotechnical efforts of the enterprise to achieve an improvement in the strategic performance of the enterprise, since digital transformation is a company–wide phenomenon with wide organizational implications for its strategic position. It involves not just the introduction of new technologies, but their coordinated use to improve the strategic performance of the company as a whole.
Due to the fact that automation involves the introduction of new information technology solutions into the local processes of the company, automation management completely belongs to the field of individual project management. Indeed, many examples have been documented when the implementation of computer-aided design systems, electronic document management systems, and automatic production lines is implemented on the basis of project management techniques. Such projects are managed by managers with engineering and technical training. The content of these projects is not significantly changed during implementation. Technical project management is often based on the so-called predictive, classical project management methodologies, enshrined in the PRINCE2 standard, as well as PMBOK. The implementation of such a complex and large-scale phenomenon as digitalization takes place using a wider range of diverse techniques and tools. Being already in the field of technology management, digitalization of companies requires the use of management tools for a large number of different projects to achieve business results. Digitalization management is often carried out on the basis of portfolio and program management tools, such as roadmaps, matrix portfolio models, project offices, etc. At the same time, digitalization requires greater flexibility in management in response to a greater degree of uncertainty inherent not just in the technical, but in the sociotechnical nature of digitalization projects. Flexible and incremental project management methodologies such as Scrum, AgileUP, Crystal, Feature DrivenDevelopment, and Kanban are actively used in digitalization management.
Digital transformation management is fully reaching the level of management of strategic organizational changes, namely, such as the use of tools of a balanced scorecard, a roadmap and flexible methodologies. At the same time, they include automation and digitalization management, as well as those in need of tools and approaches that are non-standard for this level and characteristic of strategic management and organizational changes. In this regard, research aimed at identifying the specifics of digital transformation management and tools applicable at this level is currently insufficient. This significantly hinders the development of both the theory and practice of project management of digital transformation of companies.[1]
Digital transformation management is fully reaching the level of management of strategic organizational changes, namely, such as the use of tools of a balanced scorecard, a roadmap and flexible methodologies. At the same time, they include automation and digitalization management, as well as those in need of tools and approaches that are non-standard for this level and characteristic of strategic management and organizational changes. In this regard, research aimed at identifying the specifics of digital transformation management and tools applicable at this level is currently insufficient. This significantly hinders the development of both the theory and practice of project management of digital transformation of companies.[1]
Examples of digital transformation
Large companies have long been committed to digital transformation. For them, this approach turns out to be not only trial and error, but success and profit. UPS logistics company has solved two key problems with the help of digital transformation: insufficient mail forwarding speed and the inability to track the movement of parcels in real time.
Dropbox cloud service attracted customers using the Freemium system. People were offered to test the capabilities of the cloud and subscribe for free to a product already familiar and liked by the user. This approach has allowed the brand to quickly build up an array of loyal customers who are willing to pay for what they are already confident in. At the same time, Dropbox retained the ability to use its storage without payment, and launched practical referral programs.3
Zoom, a video conferencing and online meeting service, has implemented a subscription model for its services, allowing customers to access features such as recording meetings and increasing the number of participants - this has allowed the company to gain new profit channels. According to Zoom's report for the second quarter of fiscal year 2022, the company earned $1.02 billion. About 73% of this revenue was generated from subscription payments, which is more than $750 million.4
Digitalization of companies in Uzbekistan
In order to accelerate the development of the digital industry in the Republic of Uzbekistan, increase the competitiveness of the national economy, as well as ensure the implementation of the tasks defined in the State Program for the implementation of the Action Strategy for the five priority areas of development of the Republic of Uzbekistan in 2017-2021 in the "Year of Development of Science, Education and the Digital Economy", a Decree of the President of the Republic of Uzbekistan dated 05.10.2020 was adopted Year No.UP-6079 "On Approval of the Digital Uzbekistan 2030 Strategy and Measures for its effective implementation".
Comprehensive measures are being implemented in the republic to actively develop the digital economy, as well as the widespread introduction of modern information and communication technologies in all sectors and spheres, primarily in public administration, education, healthcare and agriculture.
In accordance with the approved Strategy ‘Digital Uzbekistan 2030’, programmes of digital transformation of regions and industries for 2020-2022 are being implemented. At the end of 2021, the volume of services provided in the digital economy totalled UZS 7.2 trillion, exports of computer programming services totalled USD 17.5 million.
In pursuance of the Digital Uzbekistan 2030 Strategy and measures for its effective implementation, approved by the Decree of the President of the Republic of Uzbekistan, the following has been implemented:
The exchange of documents between the Uzbek Agency for Technical Regulation under the Cabinet of Ministers of the Republic of Uzbekistan and its subordinate organizations has been transferred to a fully electronic form and paperless electronic document management and office management systems have been introduced.
In 2021, 3 information systems were developed and implemented for digitalization and automation of services provided in the field of technical regulation.
1. In order to provide information services and standards for individuals and legal entities online, create and maintain an electronic standards fund, the E-Standard information system has been developed and implemented, posted on the official website of the Institute of Standards (uzsti.uz ). Currently, the system provides access to more than 26.0 thousand standards (state, international, interstate, etc.).
2. The information system "E-Metrology" has been developed and implemented, which provides online acceptance of applications for verification of measuring instruments from individuals and legal entities, accounting for the number and condition of measuring instruments, maintaining a database (SI maps) and automating the activities of metrological services. The system is accessed through the official website of the Uzbek Institute of Metrology (nim.uz ). To date, the system has received and processed more than 25.0 thousand applications.
3. The automated information system "E-Accreditation" has been developed and implemented (e. akkred.uz ), which provides for the digitization of documentation and automation of services for the accreditation of conformity assessment bodies (certification bodies for products and services, QMS certification bodies, testing and metrological laboratories, etc.). The system is integrated into the information system "Single Window" of the State Customs Committee of the Republic of Uzbekistan. To date, the system has received and processed 90 applications from applicants.[1]
In 2022, it was planned to implement 268 projects in Uzbekistan aimed at developing the e-Government system, telecommunications, a technological park of software products and information technologies, as well as the introduction of digital technologies into the economy, agriculture and water management.
In confirmation of these institutional changes, on October 24-27, 2022, within the framework of the main event of the year in the field of information technology "ICTWEEK UZBEKISTAN 2022" in Samarkand, the first results of the joint initiative "DIGITAL PULSE", implemented by the Ministry of Economic Development and Poverty Reduction of the Republic of Uzbekistan and the United Nations Development Program, in partnership with the Ministry of Information Technology Development, were presented and communications of the Republic of Uzbekistan and IT Park.
DIGITAL PULSE is a tool that helps small and medium—sized businesses determine their level of digitalization and provides basic recommendations on what needs to be done on the way to digital transformation. The tool also helps companies assess their digital potential and identify related gaps in their activities, and UNDP and its institutional partners will receive information on what further programmatic measures need to be developed to support the acceleration of digital economy activities in the country. This tool meets the business needs for free evaluation and automatic analysis received by the company after passing the diagnosis, as well as provides basic recommendations on areas that require improvement.
The DIGITAL PULSE initiative is being implemented within the framework of Youth Digital Skills, a joint program of the Ministry of Economy and Finance of the Republic of Uzbekistan, the Ministry for the Development of Information Technologies and Communications of the Republic of Uzbekistan, IT Park and the United Nations Development Program within the framework of the project "Empowering youth to develop the digital Economy and digital Entrepreneurship".[2]
"Digital Uzbekistan 2030" also contributes to the implementation of other national strategic documents and programs and, first of all, will be important for achieving national goals and objectives in the field of the UN Sustainable Development Goals for the period up to 2030, as well as the Development Strategy of new Uzbekistan for 2022-2026, approved by Decree of the President of the Republic of Uzbekistan dated 10/28/2022 year number UP-60. The development Strategy of the new Uzbekistan for 2022-2026, adopted on January 28, 2022, covers seven priority areas for further reforms related to public administration, the rule of law, economic development, social policy, spiritual education, security, as well as a pragmatic and active foreign policy. In turn, the seven priority areas include 100 strategic goals that must be achieved by 2026. The new Strategy provides for the digitalization of many important areas, such as public administration; the judicial system; law enforcement agencies and traffic management systems; health and social security systems; banking and agricultural sectors of the economy.
While maintaining stable growth rates by 2030, it is planned to achieve a GDP per capita of four thousand US dollars and enter the group of countries with "above average income". In this regard, the development of the digital economy with an increase in its share by at least 2.5 times by the end of 2026 is also identified as the main "driver". At the same time, it is planned to increase the volume of production of software products by 5 times, and their exports by 10 times, to 500.0 million US dollars, as well as to increase the level of digitalization of production and operational processes in the real sector of the economy – in the financial and banking sectors – to 70%. In addition, priority is given to digitalization of urban planning and construction, their development within the framework of the "Smart City" concept.[3]
Conclusions
Without a doubt, in the context of a global pandemic, digital technologies play a key role both in post-crisis recovery and in creating a sustainable economy. Therefore, for developing countries such as Uzbekistan, enhanced digitalization and digital transformation should be top priorities. Over the past ten years, Uzbekistan has made significant progress in digitalization and the development of information and communication technologies, especially in the field of electronic public services. At the same time, while continuing cooperation with South Korea, Russia, Estonia and China, the country also needs to attract partners from more technologically advanced countries such as Germany, the United Kingdom, the United States, Singapore, Japan and others in order to expand the geography of international cooperation. Investments in the digital ecosystem, IT infrastructure and electronic services will contribute to further modernization of the economy and accelerate inclusive growth in all areas
Literature:
1. Bulletin of the Academy of Knowledge No. 37 (2), 2020. FEATURES OF THE TRANSFORMATION OF PROJECT MANAGEMENT SYSTEMS IN THE DIGITAL BUSINESS ENVIRONMENT A.I. Tikhonov, A.A. Sazonov.
2. Digital transformation of industries: starting conditions and priorities: dokl. to the XXII Apr. international Scientific Conference on problems of economic and social development, Moscow, 13-30 Apr. 2021 Source: https://conf.hse.ru/mirror/pubs/share/463148459.pdf
3. Bulletin of the University No. 7, 2022. Project management of digital transformation of companies, Titov S.A., Titova N.V.
4. Source: https://www.plerdy.com/ru/blog/digital-transformation/
5. Source: https://fw-t.ru/articles/kejsy-uspesnoj-cifrovoj-transformacii
6. Vedomosti newspaper. Source: https://rostelecom .vedomosti.ru/
7. DECREE OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN ON THE APPROVAL OF THE STRATEGY "DIGITAL UZBEKISTAN-2030" AND MEASURES FOR ITS EFFECTIVE IMPLEMENTATION, Source: https://lex.uz/docs/5031048
8. Digital Transformation of Business in Uzbekistan, Narzullayeva D. K.
9. Development Strategy Center, DIGITALIZATION – AN IMPORTANT "DRIVER" OF THE DEVELOPMENT OF NEW UZBEKISTAN, 8822/20 Apr. 2022 Source: https://strategy.uz/index.php?news=1518&lang=ru
10. Uzbek Agency for Technical Regulation: https://www.standart.uz/ru/page/view?id=98
[1] Uzbek Agency for Technical Regulation: https://www.standart.uz/ru/page/view?id=98
[2] Digital Transformation of Business in Uzbekistan, Narzullayeva D. K.
[3] Development Strategy Center, DIGITALIZATION IS AN IMPORTANT "DRIVER" OF THE DEVELOPMENT OF NEW UZBEKISTAN, 8822/20 Apr. 2022: https://strategy.uz/index.php?news=1518&lang=ru
3 Source: https://www.plerdy.com/ru/blog/digital-transformation/
4 Source: https://fw-t.ru/articles/kejsy-uspesnoj-cifrovoj-transformacii
[1] Bulletin of the University No. 7, 2022. Project management of digital transformation of companies, Titov S.A., Titova N.V.: Project management of digital transformation of companies
[1] Bulletin of the University No. 7, 2022. Project management of digital transformation of companies, Titov S.A., Titova N.V.: Project management of digital transformation of companies
