Factors of Digitalization in Providing Sustainable Organizations’ Development

Abstract

The market environment where enterprises function is a dynamically developing system today. Therefore, sustainability of the enterprise is one of the essential characteristics of organization competitiveness in market economy. The article studies different aspects of enterprise sustainability. It shows that the higher sustainability the enterprise possesses, the lower impact it can experience on the part of unpredictable changes of market situation, political instability and various exogenous and endogenous factors. Due to this, risks of losing balance and facing bankruptcy are declining. Digitalization of equipment and whole factories can provide restructuring of the model in accordance with changing structures of global market, where we can observe the trend of transforming the product-supplier business-model into complex solution supplier. The authors propose to consider technologies of Industry 4.0 as instruments necessary to secure sustainability in organizations and give concrete examples of using digital tools at the enterprise. In case transformation of the business-model is carried out with due regard to the experience accumulated in the organization, factors and tools of digitalization can be necessary and even vital for sustainable development of the organization.

Keywords

• digitalization
• business-model
• transformation
• sustainable development
• organization sustainability
• investment