Benefits and Risks of Digital Business Transformation: The Example of Eastern Europe Countries

Abstract

The purpose of this research was to conceptually substantiate an effective business digitalization strategy in Eastern Europe (EE), taking into account the identification of destructive and complementary factors of digital transformation (DT). The survey, completed by top managers of companies from different sectors of the EE countries' economy, helped form a system of indicators for assessing the level of DT by country. The systematization of the DT factors made it possible to differentiate them by the nature of influence, advantages, and threats of the DH (digital humanities) for the EE countries. The results indicated a low and medium level of DT in the countries studied because of the lack of a digitalization strategy. A matrix of business digitalization management strategies has been formed for Eastern European countries, considering the efficiency level, digitalization threats, and the priority in their management. It will help mitigate the threats of DT and reduce the digital divide with countries with a high level of DT.

Keywords

• digital transformation
• business
• Eastern Europe
• digital technology
• strategy
• digital economy