Proceedings of the 2nd International Conference Engineering Innovations and Sustainable Development (Lecture Notes in Civil Engineering, 378) 3031381211, 9783031381218

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Lecture Notes in Civil Engineering

Valentina Mantulenko   Editor

Proceedings of the 2nd International Conference Engineering Innovations and Sustainable Development

Lecture Notes in Civil Engineering

378

Series Editors Marco di Prisco, Politecnico di Milano, Milano, Italy Sheng-Hong Chen, School of Water Resources and Hydropower Engineering, Wuhan University, Wuhan, China Ioannis Vayas, Institute of Steel Structures, National Technical University of Athens, Athens, Greece Sanjay Kumar Shukla, School of Engineering, Edith Cowan University, Joondalup, WA, Australia Anuj Sharma, Iowa State University, Ames, IA, USA Nagesh Kumar, Department of Civil Engineering, Indian Institute of Science Bangalore, Bengaluru, Karnataka, India Chien Ming Wang, School of Civil Engineering, The University of Queensland, Brisbane, QLD, Australia

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Valentina Mantulenko Editor

Proceedings of the 2nd International Conference Engineering Innovations and Sustainable Development

Editor Valentina Mantulenko Samara State University of Economics Samara, Russia

ISSN 2366-2557 ISSN 2366-2565 (electronic) Lecture Notes in Civil Engineering ISBN 978-3-031-38121-8 ISBN 978-3-031-38122-5 (eBook) https://doi.org/10.1007/978-3-031-38122-5 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Contents

Current Trends in the Industrial and Agricultural Development Principles and Algorithm for Proactive Approach to Import Substitution . . . . . . . O. V. Tomazova and E. V. Volkodadova

3

Food Security of the Russian Federation and Economic Factors of Agricultural Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A. V. Shchutskaya and N. V. Kozhukhova

10

Automated Control Systems of Enterprises as a Factor of Digital Technological Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . O. E. Pudovkina, E. V. Ivanova, E. A. Bratukhina, and Yu. A. Kolesova

18

Improvement of the Quality of ESG-Reporting in Russia . . . . . . . . . . . . . . . . . . . . E. I. Zolotukhin, O. A. Naumova, and S. V. Silantiev The Direction of the Post-industrial Structural Maneuver of the Russian Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E. V. Perepelkina and V. A. Perepelkin Digital Solutions for Industrial Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A. B. Vishnyakova

27

34

40

Structural Changes and Forecast Estimates of Coal Production and Exports in Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . O. F. Chistik and N. V. Nikulnikov

46

Key Factors for Effective Management of Business Adaptation to Digital Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I. V. Kosyakova, G. P. Gagarinskya, and T. G. Abdulova

52

Modeling Sustainable Development of Industrial Enterprise in the Context of Digitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I. A. Toymentseva, V. D. Chichkina, and O. N. Denisova

58

Digital Opportunities for the Development of the Russian Agro-Industrial Complex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . L. V. Ermolina, E. P. Acri, D. A. Melnikova, and E. V. Alekina

66

vi

Contents

Regional Approach to Sustainable Rural Development . . . . . . . . . . . . . . . . . . . . . . N. V. Polyanskova and G. I. Belyaeva

72

Inflation Processes in the Conditions of the Global Crisis . . . . . . . . . . . . . . . . . . . . K. S. Chernousova and R. M. Shilman

80

Lean Manufacturing as a Model for the Transition to the Digital Economy . . . . . A. R. Rakhmatullina, O. V. Malysheva, J. I. Minina, and E. Yu. Bobkova

86

Issues of Ensuring the Continuity of the Activities of Industrial Enterprises . . . . I. A. Svetkina, S. S. Karno, and M. D. Maltsev

94

Support Measures for Digital Transformation Projects in the Russian Manufacturing Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 A. A. Chudaeva Innovations in the Construction and Transport Sectors (Single-Industry Towns, New Logistics Routes and Urbanization) Transport and Logistics Projects: Innovations and Development Prospects in the Digital Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 I. A. Toymentseva, T. E. Evtodieva, and V. D. Chichkina Optimization of Logistics Flows in the Construction Cluster of the Samara Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 S. I. Makarov Features of Urbanization of Non-agglomeration Territories: The Role of Small Towns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 E. N. Koroleva, Y. V. Urazova, and S. V. Loginov Renovation of Fixed Assets and Innovations in Construction . . . . . . . . . . . . . . . . . 133 N. N. Belanova, O. R. Grankov, and R. A. Sattarov Specific Features of the Sustainable Development Strategy of Russian Marketplaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 D. V. Ralyk Potential of Marketing Development Through Social Networks for the Automotive Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 A. B. Vishnyakova and E. I. Zolotukhin Problems of Risk Assessment in the Implementation of Innovation and Construction Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 S. V. Domnina, E. V. Savoskina, and N. A. Solopova

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Development of a Graphic Editor for Engineering Needs . . . . . . . . . . . . . . . . . . . . 164 E. A. Kharitonov and D. V. Kharitonova Innovative Logistics in the Cumulative Knowledge System and Its Implementation Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 N. P. Karpova and T. E. Evtodieva Analysis of Competitiveness of Logistics Companies . . . . . . . . . . . . . . . . . . . . . . . 185 V. A. Manyaeva and L. A. Karapetyan Mathematical Modelling and Optimization of Enterprise Costs for Storage of Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 S. I. Makarov and D. V. Ivanov Rationale for the Choice of New Technologies for Repair and Construction Works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 A. D. Kornilova, E. P. Acri, and K. Yu. Doladov Study of the Russian Market of Telecom Infrastructure Operators . . . . . . . . . . . . . 208 E. S. Smolina and E. A. Kalashnikova Challenges for Engineering Innovative Development Management Automation of the Development Process of the Industrial Enterprise Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217 O. V. Bakanach, D. S. Bratchinin, A. A. Kudryashov, and D. V. Gostev Transformation Directions When Introducing Artificial Intelligence into the Business Model of Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223 L. E. Popok and V. V. Mantulenko Issues of Information Security of Industries and Enterprises in the Digital Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228 O. A. Bulavko Formation and Implementation of the Company’s Investment Development Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235 A. V. Zastupov Organization of the Venture Financing System at the Regional Level . . . . . . . . . . 241 S. V. Sharokhina, O. V. Karsuntseva, and E. S. Vasetskaya Informational Aspects of Accounting in Human Capital Management . . . . . . . . . 248 O. Kogut, B. Sultanova, G. Nurgaliyeva, and A. Arystambayeva

viii

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Consequences of Global Integration Processes Between Russia and the African Union Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255 V. A. Noskov, V. V. Nekrasov, and D. V. Khilov Market of Electronic Document Management Systems for Contemporary Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261 D. V. Kharitonova and A. D. Kornilova Analysis of the IT Development Level of Russian Organizations: A Regional Aspect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266 N. V. Proskurina, Yu. I. Davidyan, M. A. Zorina, and A. A. Verkolab Cost Management in Economic Instability: A Primary Enterprise Task . . . . . . . . 274 I. A. Naugolnova Development of the Financial Capital Market in the Digital Economy . . . . . . . . . 280 A. Abuzov Structuring the Digital Economy as a Basis for Ensuring the Economic Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286 S. D. Rebrov and K. N. Ermolaev Sustainable Development of Russian Business: Management Challenges and Innovative Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292 M. O. Suraeva and E. S. Popova Category «Secrecy» in the Law: Economic, Personal and National Aspects . . . . 299 A. V. Sidorova Transformation of Russian Companies: Triggers of 2022 . . . . . . . . . . . . . . . . . . . . 304 E. A. Kandrashina Engineering Education in the Digital Era Digital Strategies of Organizations of Higher Education . . . . . . . . . . . . . . . . . . . . . 313 E. N. Sheremetyeva, N. V. Mitropolskaya-Rodionova, and A. V. Balanovskaya Immersive Learning Methods and Their Impact on the Perception of Learning Material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320 K. A. Arzhanova, D. V. Dolgopolov, and V. S. Starostin The Cognitive Approach to the System of Engineering Education Under Digitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330 T. V. Goryacheva, E. V. Volkodavova, and A. P. Zhabin

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Digitalization of the Educational Process in the Modern University . . . . . . . . . . . 340 N. V. Nikonova, V. V. Nasonkin, and S. V. Barabanova Development of Additional Professional Education: Marketing Tools for Information Transparence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345 V. V. Mantulenko and A. D. Kornilova Compliance of Engineering Educational Programs with the Country’s Development Directions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354 D. V. Kharitonova Artificial Intelligence Technologies for Evaluating Quality and Efficiency of Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360 I. V. Nikolaeva, A. V. Levchenko, and S. I. Zizikova Stable Development in Unstable World: Economic, Environmental and Information Aspects Process-Based Cost Management Approach: Enhancing Sustainability of Enterprise Development in Modern Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . 369 I. A. Naugolnova Issues of Economic Security in Conditions of Russian-African Integration . . . . . 376 V. A. Noskov, V. V. Nekrasov, and D. V. Khilov Identification of Factors Reducing Effectiveness of Institutional Regulation of Financial Capital Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 383 A. Abuzov Multi-vector and Balance as Mandatory Conditions for Sustainable Economic Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389 S. V. Andreeva Perspective Directions of Institutional Transformations of the Economy Ecologization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395 M. V. Kislinskaya, S. V. Sharokhina, N. V. Guseva, and E. V. Kornilova New Opportunities for Employment: The View of Young People . . . . . . . . . . . . . 402 A. N. Timokhovich, T. S. Filenko, and A. S. Lelyakova Fixed Asset Investments in Russia: Analysis and Forecast Estimate . . . . . . . . . . . 411 O. F. Chistik Retail Trade Development in National Economic Conditions . . . . . . . . . . . . . . . . . 419 N. A. Kryuchkova and S. V. Grankina

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Development Prospects of Regional Business Under Conditions of External Challenges and Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 426 A. D. Bogdanov and O. E. Pudovkina Economic Aspects of Enterprises’ Sustainable Development . . . . . . . . . . . . . . . . . 434 L. R. Tuktarova The Evolution of Marketing: From Consumption to Sustainability . . . . . . . . . . . . 442 I. V. Yakhneeva, A. V. Pavlova, and N. V. Kalenskaya Financial Sovereignty in the Era of Economic Changes . . . . . . . . . . . . . . . . . . . . . 449 S. P. Bortnikov ESG Risk Assessment as a Factor of Ensuring the Regional Economic Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458 T. A. Korneeva, V. V. Kozhukhova, D. A. Nordin, and I. E. Yurov Assessment of the Company’s Information Potential to Ensure Economic Its Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 464 T. M. Tarasova The Concept of Independent Development of the Organization: Prospects and Implementation Difficulties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471 E. P. Troshina Management of Regional Sustainable Development on the Example of the Samara Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 478 M. V. Kurganova Improving Management of Financial and Economic Sustainability in the Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 484 A. V. Zastupov Approaches to the Analysis of the Socially Responsible Behavior of the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 492 O. S. Aksinina Author Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 503

Current Trends in the Industrial and Agricultural Development

Principles and Algorithm for Proactive Approach to Import Substitution O. V. Tomazova1

and E. V. Volkodadova2(B)

1 Samara State Technical University, Samara, Russia 2 Samara State University of Economics, Samara, Russia

[email protected]

Abstract. Import substitution has recently become an effective tool for sustainable functioning of Russian oil and gas companies. The oilfield service sector is an integral part of the chain of business processes of the oil and gas complex. Sanctions were among the first to affect its activities. Import substitution of equipment, technologies, software, materials and components should have been intensified long before the first batch of sanctions in 2014. Therefore, in the current unstable economic environment, it is very important to explore theoretical aspects and problematic situations in matters of import substitution in oilfield service companies of the oil and gas complex to develop mechanisms and algorithms for its successful practical implementation. This work considers the algorithm and principles of effective import substitution in oilfield service companies. The formulated principles of effective import substitution make it possible to quickly identify its key areas, identify possible breakpoints in business processes and the corresponding failures in the production cycles of Russian oilfield service companies. Keywords: Development Strategy · Equipment Restoration · Import Substitution · Oil and Gas Complex · Oilfield Service · Sanctions

1 Introduction Russian companies of the oil and gas complex, integrated into technological chains of production, transportation and processing of hydrocarbons, have an arsenal of hightech equipment that allows them to implement various technological business processes. The volumes and quality of supply of crude oil and products of its processing on the domestic and foreign markets depend on the performance of this equipment. Even now, in the current conditions of sanctions pressure, the Russian oil and gas complex is the locomotive for many sectors both in the Russian and foreign economies. Therefore, the issue of the state and ensuring the uninterrupted functioning of Russian oil and gas companies, including its equipment, is urgent. If we analyze the technical and technological support of the equipment fleet of oil and gas companies by business processes, we can see that its structure included many foreign-made items, such as: field equipment, machine tools, units, equipment to maintain the working capacity of labor tools. And it makes the technological chain © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 3–9, 2023. https://doi.org/10.1007/978-3-031-38122-5_1

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O. V. Tomazova and E. V. Volkodadova

of search, construction, development and production, transportation and processing of hydrocarbons directly or indirectly dependent on foreign producers. This is convincingly evidenced by the foreign outsourcing repair of a hydro turbine, when the launch of the Nord Stream gas pipeline at full capacity depended on the manufacturer located in Canada and on his ability to continue maintenance of turbines [1]. The first wave of sanction pressure was felt by oil and gas companies back in 2014. The sanctions particularly affected production and restoration of fixed assets. This coincided with the period of outsourcing, which influenced the formation and development of the oilfield service sector of the Russian Federation. If we consider the structure and composition of equipment in terms of production volumes at Russian and foreign companies, we can see the following picture. According to the information portal Vedomosti [2], the most import-oriented industries have traditionally been oilfield services (drilling, workover, well logging, drilling support and seismic exploration). At the same time, the share of domestic companies accounted for only 48% of the market in 2021. According to the interview of the Russian Minister of Industry and Trade D. Manturov to the Oil and Gas Information Agency, the import substitution program really started working after the events of 2014, and the share of Russian equipment in the oil and gas sector of the Russian Federation exceeded 60%. He also believed that new restrictions on the supply of equipment, technologies and services for investments in the Russian oil and gas sector extend both to technologies for the development of the shelf and hard-to-recover hydrocarbon reserves and to equipment serving the oil and gas infrastructure [3]. Do not forget that the main players in the oilfield service sector were several large foreign service organizations: Schlumberger, Halliburton, Baker Hughes and Weatherford International, which left the Russian oil and gas service market after the second wave of Western sanctions in the spring of 2022. According to experts, at present, Russian oil companies have a serious dependence on Western equipment in the field of directional drilling, telemetry, rotary-steered systems, logging. By 2024, it is planned to reduce the dependence on hydraulic fracturing fleets from 85% to 25%. At the same time, the share of domestic equipment in them is less than 1% [4].

2 Methodology The authors used the research materials on oil and gas companies and the oilfield service sector from 2013 to 2022. It made possible to draw reasonable conclusions about the need and directions for import substitution and develop its principles and algorithm. The study was conducted using the following methods: – a comprehensive analysis, which made it possible to cover a wide range of factors that determine the current directions, procedure and conditions for import substitution at Russian oilfield service companies; – a system analysis, which made it possible to study the relationship and interaction of import substitution subjects with representatives of the external (suppliers, government organizations that control this process, etc.) and internal environment (functional interaction of company divisions involved in the design, manufacture or testing of import-substituting elements);

Principles and Algorithm for Proactive Approach

5

– a comparative analysis, which made it possible to explore domestic and foreign approaches to the management of oil and gas companies.

3 Results Analyzing the current situation in the Russian Federation and the geopolitical situation in the world, as well as considering the work of domestic scientists and practitioners on the issue of import substitution, we can draw the following conclusions: oil service companies should become the key area of import substitution at oil and gas companies. The problems of the oilfield service market identified in the contribution are relevant and of scientific and practical interest. Therefore, the authors focus on import substitution in the field of the oilfield service sector. Traditionally, the services of the oilfield services sector include: works of a geological nature; well construction (drilling, repair, etc.); field development (intensification of production, hydraulic fracturing); restoration, renovation and reconstruction of fixed assets. At present, Russian companies have a serious dependence on Western equipment in the field of directional drilling, telemetry, rotary-controlled systems, and logging, according to [5]. The authors identify and systemize the key factors, whose impact on import substitution is currently very significant. When they are considered, in the future it is possible to predetermine undesirable situations that affect the development of the oil service market. Figure 1 presents the systematization of the key factors that have a significant impact on import substitution.

Key factors of import substitution Restriction on foreign equipment deliveries due to sanctions

Production of domestic hightech equipment

Strategy of import substitution

Local import substitution (elements and components)

Technological independence in the oil service

Development of oil engineering

Fig. 1. Typology of the key factors of import substitution (Source: authors).

Table 1 shows business processes and their components that are most relevant for import substitution and the continuity of the technological process. Analyzing the information presented in Table 1, one can see a significant dependence of technologies, equipment, components and services of oilfield service sector on imports according to interrelated business processes.

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O. V. Tomazova and E. V. Volkodadova

Table 1. The share of imports of equipment, technologies, components and oilfield services as of April 2022.

LNG dispensers with commercial metering

High and low pressure cryopumps for LNG transfer

95%

Industrial software (automated control system)

92%

91%

Rotary steerable systems, navigation equipment for determining the position of the drilling tool, equipment for controlling the drilling tool

Underground well equipment with selective control system

Exploration Well construction Mining of oil and gas Pipeline transport Oil and gas processing Source: authors.

Hydraulic fracturing and other technologies for influencing productive stratum and bottom-hole zone

Business processes

Engineering software

Components

83% 91% 80%

90%

At present, when large oilfield service companies, carrying out the bulk of equipment restoration in the Russian market, left the country, this problem needs to be addressed. To solve this problem, the authors developed the algorithm for import substitution in the field of equipment restoration services by domestic service organizations, the implementation of which is based on the following principles: 1. Replacing not all imported components and (or) products, but those that are most in demand from the standpoint of the continuity of business processes in production, transportation, processing, etc. 2. Establishing a sequence of import substitution for key business processes to prevent breaks in technological business chains. 3. Identifying key positions of import substitution: extraction, transportation, processing. 4. Calculating the share of competing and non-competing imports in the total volume of products subject to import substitution. 5. Developing the algorithm for import substitution based on competing imports. The developed algorithm for import substitution is shown in Table 2. The algorithm for import substitution starts with the identification of those positions of import substitution that are break points in each technological process of equipment restoration. Then it is necessary to identify which component of import substitution this element belongs to a competitive one, which can be produced at Russian technological sites, or a non-competitive one – the production of which is not possible at this time (for any reason).

Principles and Algorithm for Proactive Approach

7

Table 2. The developed algorithm for import substitution of competing imports. No

Elements of the algorithm

1

Market change factors, forecast to produce import-substituting elements, products

2

Import-substituting elements (technology, equipment, components, etc.)

3

Companies ready to produce import-substituting elements

3.1

Comparison of technical and technological characteristics: - rates of well drilling; - rates of well construction; - rates of oil and gas production; - scope of work in operation; - well stock

3.2

Comparison of quality parameters: - repair work; - oil recovery of the reservoir

3.3

Price: -1-m penetration; -1 ton of oil

3.4

Production volumes Production capacity (oil production plan; average daily well flow rate; estimated cost of drilling operations)

4

Production of import-substituting elements

Source: authors

Then, there is a search for Russian companies, technical and technological applicability, the level of lean production and production capacity of which allows producing a specific import-substituting element on their own. These sites host the production of competing import elements. The developed algorithm is based on the proactive approach to import substitution, which will allow the management of oilfield service companies to carry out consistent import substitution in the required quantity of necessary components and elements.

4 Discussion Carrying out the research on open sources, the authors want to focus on the equipment restoring of oilfield service companies and pay special attention to this area in matters of import substitution. Domestic scientists describe the problems and directions of technological development at Russian oilfield service companies [6–8]. A lot of Russian scientists put the issue of import substitution on the agenda. This became especially true when the leading foreign oilfield service companies announced their leaving the Russian market in 2022 [9]. So, R. Samsonov [10] points out that an attempt to copy world-class equipment with the aim of its further reproduction using reverse engineering methods is becoming a separate topic for the development of Russian oilfield services [11].

8

O. V. Tomazova and E. V. Volkodadova

According to S. Suverov [12], since the beginning of spring 2022, the European Union has announced a ban on the sale, supply, transfer or export of goods and technologies to Russia, a wide range of technologies and equipment, including oilfield services, has become sanctioned. The sanctions affected the entire oilfield service sector, including non-stop repairs on gas pipelines [7]. E.V. Volkodavova and O.V. Tomazova describe technologies using a digital platform to simulate the interaction between participants in the oilfield service market and restore the means of labor of oil companies [6, 7]. When researching the works of foreign scientists [8, 9, 11, 13, 14], it is worth noting that they practically do not consider the issues of import substitution. They pay attention to strategic development of oilfield services, assessment and optimization of their cost, and their implementation. So, X. Song, D. QU, and C. ZOU explore problems of developing oil fields in China, ways to reduce the costs of developing oil fields [9]. H. Ding, X. Chen, K. Lin, Y. Wei consider the mechanism for distributing project profits among the participants in the engineering and service chain within the framework of oil and gas engineering with individual integration [11]. I.M. Santos, S. Hamacher, and F. Oliveira describe the technology improving the productivity of developed wells when they are depleted through a workover [13]. J.N. Desai, S. Pandian, and R.K. Vij consider how organizations engaged in exploration and production of oil and gas can quickly analyze their activities based on big data databases, forming their arrays according to research areas [14]. M. Ichsan, M. Lockwood, and M. Ramadhani consider fiscal policy using the example of Indonesian oil companies [15]. The level of technology development allows foreign companies to dominate the global market for oilfield services, ranging from the production of equipment to services for its use and training of personnel. Considering the current situation in the Russian oilfield service market (when leading foreign companies left the market), the authors developed the algorithm for a proactive approach to import substitution and domestic oilfield services.

5 Conclusion The authors conducted a study and systematized factors that have a significant impact on services in the Russian oilfield service market. They also substantiated their position in relation to principles and algorithm for import substitution that are relevant today. The identified factors are key for the current period of activity of Russian oilfield service enterprises. To see a true picture of the import substitution strategy, we need constant monitoring of factors that have a significant impact on import substitution processes. Compliance with the developed principles of import substitution makes it possible to carry out this process consistently, preventing a break in technological processes and business chains. Practical studies of the authors at oil service enterprises allow us to conclude that, based on these principles, the proposed import substitution algorithm is quickly implemented for the necessary components and products of competing imports and ensures the smooth operation of enterprises. The principles and algorithm of a proactive approach to import substitution proposed by the authors will optimize this process for all business processes carried out in oil and gas companies: geological exploration, construction of oil and gas wells, production and operation of oil and gas wells, transportation and processing of hydrocarbons, but considering adaptation to their features.

Principles and Algorithm for Proactive Approach

9

References 1. Yushkov I: The expert named the condition for launching the Nord Stream at full capacity. https://aif.ru/money/economy/ekspert_nazval_uslovie_dlya_zapuska_severnogo_ potoka_na_polnuyu_moshchnost. Last accessed 10 Mar 2023 2. Vedomosti: How is import substitution in the oil industry, https://www.vedomosti.ru/business/ articles/2022/05/26/923720-importozameschenie-v-neftyanoi-otrasli. Last accessed 13 Mar 2023 3. Oil and Gas Information Agency: Import substitution in oilfield services: There will be more drilling. https://oilcapital.ru/article/general/09-06-2022/importozameschenie-v-nefteserviseburit-budut-bolshe. Last accessed 10 Mar 2023 4. How oil and gas equipment was replaced by imports in the Russian Ministry of Industry and Trade. https://www.tek-all.ru/news/id8652-kak-importozameschali-neftegazovoe-oborudova nie-v-minpromtorge-r. Last accessed 12 Marc 2023 5. Ershova, A.: Oil service under the yoke of sanctions: how the industry solves the problem of import substitution, https://iz.ru/1339423/anastasiia-ershova/nefteservis-pod-gnetom-san ktcii-kak-otrasl-reshaet-problemu-importozameshcheniia. Last accessed 8 Mar 2023 6. Volkodavova EV, Tomazova OV (2019) Digital technologies in the control system for equipment reconditioning in oil and gas companies. In: Mantulenko V (ed) Problems of enterprise development: theory and practice 2018. SHS Web of Conferences, vol 62, p 09001 7. Volkodavova E, Tomazova O (2018) Using a digital platform to model interaction between oilfield service market actors. Helix 8(6):4707–4716 8. Enchu R: Schlumberger stops investing in Russia. It has a factory and a training center in Tyumen. https://72.ru/text/business/2022/03/19/70518233/. Last accessed 11 Mar 2023 9. Song X, Qu D, Zou C (2021) Low cost development strategy for oilfields in China under low oil prices. Pet Explor Dev 48(4):1007–1018 10. Samsonov R: Import substitution in oilfield services: there will be more drilling, https:// oilcapital.ru/article/general/09-06-2022/importozameschenie-v-nefteservise-burit-budutbolshe. Last accessed 10 Mar 2023 11. Ding H, Chen X, Lin K, Wei Y (2019) Collaborative mechanism of project profit allotment in petroleum engineering service chain with customized integration. Int J Prod Econ 214:163– 174 12. Suverov, S: Oil service under the yoke of sanctions: How the industry solves the problem of import substitution. https://iz.ru/1339423/anastasiia-ershova/nefteservis-pod-gnetom-san ktcii-kak-otrasl-reshaet-problemu-importozameshcheniia. Last accessed 10 Mar 2023 13. Santos IM, Hamacher S, Oliveira F (2023) A data-driven optimization model for the workover rig scheduling problem: case study in an oil company. Comput Chem Eng 170:108088 14. Desai JN, Pandian S, Vij RK (2021) Big data analytics in upstream oil and gas industries for sustainable exploration and development: a review. Environ Technol Innov 21:101186 15. Ichsan M, Lockwood M, Ramadhani M (2022) National oil companies and fossil fuel subsidy regimes in transition: the case of Indonesia. The Extr Ind Soc 11:101104

Food Security of the Russian Federation and Economic Factors of Agricultural Development A. V. Shchutskaya1(B)

and N. V. Kozhukhova2

1 Samara State University of Economics, Samara, Russia

[email protected] 2 Samara State Technical University, Samara, Russia

Abstract. In Russia, which has the richest natural resources potential, the issue of food security has always been relevant. The global ranking on food security shows that the country had the highest position in 2021 (23rd ). The value of the Global Food Security Index in Russia dropped by 7.6% to 69.1 points by the end of 2022 that lowered the country’s rating position to 43rd . The authors of the paper identified the reasons of decrease in national food security and evaluated the role of economic factors in agricultural development that affect the country’s food independence. Methods of theoretical and economic-statistical analysis were used to study the peculiarities of food security development in Russia. The research allowed the authors to draw a conclusion that the Russian Federation has a quite high level of self-sufficiency in core groups of food items, and it has a high potential for growth in exports due to an agricultural production increase. The economic accessibility of food has unstable dynamics and is exposed to the highest risks because of degradation of the geopolitical and socio-economic situation. Russia contributes to global food security, but increased sanctions pressure on the country’s economy may cause an extension of the global food crisis. Keywords: Agriculture · Food Security · Russian Federation · Self-Sufficiency

1 Introduction In Russia, the food security is considered as the key component of the national security [1]. Nowadays, amid an escalating socio-political and economic tension, unprecedented sanctions, world food markets deformation and world population growth of those experiencing food shortages and hunger, the topic on ensuring food security is particularly relevant and attracts domestic and foreign scientists. Their studies are devoted to present troubles of both national and international food safety: A.I. Altukhov [2], A.N. Anischenko and A.A. Shutkov [3, 4], R.R. Gumerov [5], N.I. Shagaida and I.V. Trotsuk [6], K.A. Abay, C. Breisinger, J. Glauber, S. Kurdi, D. Laborde, and K. Siddig [7]. Russia possesses potential resources for agricultural production (25% of the world’s fresh water, 13% of arable areas, 8% of the mineral fertilizer production [4]). However, the country has an average food security degree. According to the Global Food Security © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 10–17, 2023. https://doi.org/10.1007/978-3-031-38122-5_2

Food Security of the Russian Federation and Economic Factors

11

Index (GFSI) by Economist Impact, Russia ranked 41st – 48th in 2015–2019 among 113 countries [8]. In 2020–2021, the country significantly improved its position and entered the TOP 25 (24th in 2020 and 23rd in 2021). In 2022, Russian food security level decreased (the index dropped from 74.8 points to 69.1 out of 100). It was the minimum value for the last 5 years. This indicator allowed the Russian Federation to take only 43rd position. Finland (83.7 points), Ireland (81.7 points), Norway (80.5 points), France (80.2 points) and the Netherlands (80.1 points) were leaders in 2022. Kazakhstan took the highest position (32nd with 72.1 points) among the CIS countries. In 2022, GFSI based on 68 indicators had four criteria: affordability, availability, quality and safety, sustainability and adaptation. These criteria were the following in Russia in 2022: affordability – 77.8 points, availability – 61.4 points, quality and safety – 78.7 points, sustainability and adaptation – 56.6 points. By comparison, these indicators had the following values in 2021: 1) Affordability – 86.9 points; 2) Availability – 64.9 points; 3) Quality and Safety – 85.8 points; 4) Sustainability and Adaptation – 59.9 points. As we can see, the lowest points were for Sustainability and Adaptation, and Availability. That is more, there was the largest decrease in Affordability (-9.1 point) in 2022. This fact has led the authors to undertake the study on the agricultural development as the national food security base.

2 Methodology General and special scientific methods of economic research were used in this paper. Review, analysis and generalization of the works of domestic and foreign scientists and practitioners on the issue of food security and agricultural development was a methodological background. The theoretical analysis of the papers made it possible to identify the features of the formation, risks and threats of food security both in the Russian Federation and worldwide. Due to the economic and statistical methods, the dynamics of the food security indicators and trends in the Russian agricultural development and their determining factors were specified. The information base of the study was the data of the Global Food Security Index (GFSI), as well as the Ministry of Agriculture of the Russian Federation, the Federal State Statistics Service of Russia (Rosstat) and analytical materials of research establishments and analytics agencies.

3 Results The state of country’s food resources has to meet population’s demand in food at the expense of domestic production. The Food Security Doctrine of the Russian Federation states that the food security guarantees country’s food independence and access for the citizens to food. Moreover, it is necessary to take into account rational food consumption norms for living [9]. The concept of food security presupposes its maintenance in a constant mode without taking into account external circumstances and an internal situation in the country [10]. The food independence of the Russian Federation means national self-sufficiency with agricultural products, raw materials and food under the threshold requirements in the Food Security Doctrine [9].

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A. V. Shchutskaya and N. V. Kozhukhova

The current national agrifood policy is aimed at the agro-industrial complex development in order to meet population’s needs in high-quality food in accordance with the rational consumption standards, a minimum import share in agricultural products, raw materials and food, and an export potential increase. The results of the agrifood policy give an idea of the self-sufficiency level of food staples. The graphical representation of the self-sufficiency level of food staples in Russia, presented in Fig. 1, allows us to conclude on an increase in figures and consequently, in the country’s food security. However, while comparing the actual indicator with the threshold value by the Food Security Doctrine of the Russian Federation [9], the authors state that in 2021 the country achieved self-sufficiency only for four types of products: grain, vegetable oil, sugar and meat. As for potatoes, milk and dairy products, as well as vegetables and melons, the self-sufficiency level was as close to the threshold value of the Doctrine, but still below it by 6.6, 5.8, and 3.1 percentage points, respectively.

Fruits and berries Vegetables and melons Meat

Grain 180 150 120 90 60 30 0

Vegetable oil

Sugar

Potatoes

Milk and dairy 2015 products 2021 Threshold value of the Food Security Doctrine of the Russian Federation Fig. 1. The self-sufficiency level of food staples in the Russian Federation, % (Source: authors based on [11]).

The lowest level of the food independence throughout the period under review was observed for fruits and berries (43.6% of self-sufficiency compared to 60% of the threshold value in 2021). Full self-sufficiency for these types of products is impossible due to the natural and climatic features in Russia. This is the reason for the lowest threshold value of the self-sufficiency level, established in the Doctrine. In addition, fruits and berries production is characterized by high capital costs and a long-term product cycle from orchard start to fruitage. Therefore, it is impossible to quickly increase production volumes and ensure import substitution even though we can see the state support for horticulture at present time. According to the scientists’ forecasts, it will be possible to reach 60% of the self-sufficiency level for fruit and berry products only by 2027 [12]. At the time of writing, the data on Russia’s self-sufficiency of food staples in 2022 have not yet been published but on the ground of the dynamics of the agricultural development, it is possible to make a forecast on positive changes in the country’s food independence (Table 1).

Food Security of the Russian Federation and Economic Factors

13

Table 1. The main indicators of agricultural development in the Russian Federation. (at enterprises of all types). Indicators

2015

2019

2020

2021

2022

2022 to 2015, %

2022 to 2021, %

Agricultural production

102.1

104.3

101.3

99.6

110.2

107.9

110.6

including: crop production

102.1

106.6

100.7

99.3

115.9

113.5

116.7

animal production

102.0

101.9

101.9

100.0

102.4

100.4

102.4

Cereals and leguminous crops

104.7

121.2

133.5

121.4

157.7

150.6

129.9

Sugar beet

39.0

54.4

33.9

41.2

48.9

125.4

118.7

Production index (in comparable prices to the previous year, %)

Agrifood (mln. Tons):

Sunflower seeds

9.3

15.4

13.3

15.7

16.3

175.5

103.8

Potatoes

25.4

22.1

19.6

18.3

18.8

74.0

102.7

Vegetables

13.2

14.1

13.9

13.5

13.5

102.4

100.0

Fruits and berries

2.7

3.5

3.7

4.0

4.3

160.7

107.5

Livestock and poultry 13.4 for slaughter (live weight basis)

15.2

15.6

15.7

16.2

120.9

103.2

Milk

31.4

32.2

32.3

33.0

110.4

102.2

79888

79948

80383

82286

104.6

102.4

99.4

29.9

Sowing areas of crops 78635 (thou. Hectares) Cattle and poultry srock (mln. Heads): Cattle

18.6

18.1

18.0

17.6

17.5

94.1

including cows

8.1

8.0

7.9

7.8

7.7

95.1

98.7

Swine

21.4

25.2

25.9

26.2

27.7

129.4

105.7

Sheep and goats

24.6

22.6

21.7

21.0

20.7

84.1

98.6

Poultry

544

545

520

539

551

101.3

102.2

Source: authors based on [13].

In 2022, compared to 2021, the index of agricultural production increased and amounted to 110.2%. An increase in production volumes came in all types of products. The largest growth was achieved in the cereals production (29.9%) and sugar beet (18.7%). In comparison with the production volumes in 2015, an increase of tens of percent is observed for most types of crops and animal production. Such productivity progress allowed to ensure import substitution and also to increase export supplies. For instance, the Russian Federation has been occupying 1st rank in the world wheat export for several years in a row and is among three leaders of sunflower seeds export [14]. In 2020–2022 food export to the Russian Federation exceeded import. Fruit (bananas,

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A. V. Shchutskaya and N. V. Kozhukhova

citrus fruits and apples), meat and dairy products held the largest share of the food import [3]. An increase in agricultural production in 2015–2022 was ensured by the total use of extensive and intensive factors of economic development. Not only sowing areas of crops, pig and poultry stocks increased in the period under review, but also the intensity of agricultural production augmented. The volume of fertilization and chemical amelioration intensified. For instance, 3.4 million tons of mineral fertilizers were used in the harvest 2022 (in equivalent of 100% nutrients), that is 1.7 times as large than in 2015, and the fertilizer rate per 1 hectare increased from 42 kg to 74 kg [13]. A volume growth of fertilization contributed not only to a yield increase but also to improving the production sustainability under poor weather conditions. Due to the growth of investments in the fixed capital, the purchases of new tractors and combines increased, and this fact led to an increase in power supply per production unit and labor productivity. An increase in the innovative activity level of agricultural organizations from 3.4% in 2016 to 8.1% in 2021 indicates intensification of innovations [15]. Thus, there is a steady development trend in the Russian agriculture now, and it has the potential for successful implementation of the import substitution policy, as well as for growth in food exports to the world markets. National food consumption depends on the volume of domestic food production. Consequently, it influences economic accessibility of food. If we compare actual food consumption with the healthy diet standards by the Ministry of Health of the Russian Federation, we arrive at conclusion that only 5 out of 10 basic food products meet (or exceed) the standards: bread products, sugar, meat products, eggs and vegetable oil [14]. In 2021, insufficient consumption was observed for the following products: fruits and vegetables, milk and dairy products, vegetables and melons, potatoes (37.0%, 25.8%, 25.7%, and 6.7% less than normal, respectively). As mentioned above, it is precisely for these products that there is a low self-sufficiency level of food in domestic production. That is why a part of the needs is met from imported products. In order to make it possible for the national population to buy food, it is necessary to ensure the economic accessibility of food that depends on the residents’ incomes and food prices. The dynamics of the consumer price index for food products and per capita incomes of the population in the Russian Federation, presented in Fig. 2, allows the authors to note that the growth rate of food prices did not exceed 5% in 2016–2019, whereas in 2020–2022 the price growth accelerated and amounted to 10.3% (in 2022). The average income of the population also tended to grow and overtook the food price growth index (except for 2015, 2016 and 2020). It is important to mention the year 2020, the midst of the COVID-19 pandemic when, due to the introduction of a stay-at-home order, the work of many organizations was suspended or carried out in a remote format. It caused a slowdown in growth rates of the household incomes to 2.1% per year. In 2020 there was the highest share of population expenses on food products in the Russian Federation for all period under study (31.4%) [16]. The Government of the Russian Federation quickly responded to the food security threat through the implementation of targeted social support for the most vulnerable and low-income citizens, as well as the domestic agrifood market regulation. It was not possible to keep the growth of food prices at the previous levels (however, it is worth noting that the food inflation level in Russia

Food Security of the Russian Federation and Economic Factors

15

115 110 105 100 95 2015 2016 2017 2018 2019 2020 2021 2022 Consumer price index of food products to the previous December, % Average per capita income index of population (per month) to the previous year, %

Fig. 2. The dynamics of the consumer price index for food products and per capita incomes of people in the Russian Federation (Source: authors based on [16, 17]).

was below the worldwide average one), but personal incomes grew at a faster pace [18]. As a result, in 2021, the share of private food consumption in the structure of household consumption expenditures in the Russian Federation decreased to the level of 2015, that is, 30.4%. Thus, the statistical data analysis, which characterizes the agricultural development and food security in the Russian Federation, allows the authors to conclude that due to the country’s average level and margin of safety, Russia was able to confront the risks and threats in 2020–2022.

4 Discussion The key figures of food independence of the Russian Federation, achieved by the beginning of 2023, indicate a low probability of food shortages in the country. However, further food security is associated with risks and threats that can significantly reduce it. One of the main risks is the high dependence on imports for a number of resources, components and technologies used in agriculture and food industry. Currently there is a high share of seed imports for such agricultural crops as sugar beet, sunflower seed, potatoes and corn. With the introduction of sanctions, there were problems with import supplies. This is a factor that hinders agricultural development. Growth of world prices and disruption of transport and logistics flows threats the economic accessibility of food. Food security is influenced not only by the state of the country’s agricultural sector, but also by the general political and socio-economic situation. It is the factor of political and social barriers to food access that negatively influenced the value of the Global Food Security Index of the Russian Federation in 2022. The large-scale sanctions against Russia in 2022–2023 have a negative impact not only on the Russian economy, but also on the global one. The attempts to isolate Russia from the world markets, including food markets, can provide a background for the global food crisis and cause an increase in the population who will experience the shortage of food and diet quality, as well as starving people [19]. This will affect the residents of the poorest countries in Africa and Asia in a greater degree, since according to the scientific researches, the countries with the lowest level of food security are the most vulnerable to

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A. V. Shchutskaya and N. V. Kozhukhova

economic shocks [7, 20]. This world food security forecast goes against the mission and strategic goal of the Food and Agriculture Organization (FAO) [21], that is, to reduce the world proportion of starving and malnourished people and those who are food insecure, as well as to eliminate hunger by 2030.

5 Conclusion The research on the current state of food security in the Russian Federation let the authors come to the conclusion that due to the effective agrifood policy of the state, the production level of agricultural goods completely meets the domestic needs for the core groups of food products (grain, vegetable oil, sugar and meat), and Russia is able to increase food exports. At the same time, due to the degradation of the political and socio-economic situation, the issues of economic food accessibility (personal income support, agrifood market regulation, reorientation from import substitution of final products to import substitution of some resources and technologies) have been requiring consideration over the last few years. Russia plays an important role in the world food market. That is why increased sanctions pressure on the Russian economy may significantly reduce the physical and economic accessibility of food in many countries and provoke the global food crisis.

References 1. Altukhov AI, Dolgushkin NK, Paptsov AG (2021) Food security in Russia: Modern threats and challenges. 1st edn. Limited Liability Company «Sam Polygraphist», Moscow 2. Altukhov AI (2022) The main global trends in the provision of food security. Bull. Natl. Inst. Bus. 1(45):9–19 3. Anischenko AN (2022) Russian food crisis: threat or reality? Food Policy Secur 9(3):221–232 4. Anischenko AN, Shutkov AA (2021) Problems of implementation of the Russian food security doctrine. Food Policy Secur 8(1):9–22 5. Gumerov RR (2020) Food security: new approaches to content analysis and evaluation. Stud Russ Econ Dev 182(5):133–141 6. Shagaida NI, Trotsuk IV (2022) Russia’s food security under the crisis of 2020–2021: objective and subjective dimensions. Russ Peasant Stud 7(2):93–121 7. Abay KA, Breisinger C, Glauber J, Kurdi S, Laborde D, Siddig K (2023) The Russia-Ukraine war: Implications for global and regional food security and potential policy responses. Glob Food Sec 36:100675 8. Global Food Security Index (GFSI): https://impact.economist.com/sustainability/project/ food-security-index/Index. Last accessed 15 Mar 2023 9. Food Security Doctrine of the Russian Federation: http://www.consultant.ru/document/ cons_doc_LAW_343386/80cdf1ca0fda71aadc0abd3660386d29e759da50/. Last accessed 15 Mar 2023 10. Mikhailov FN, Chernenko MD (2022) The essence and content of food security and its place in the national security system. E-Scio 2(65):328–336 11. National Report on the progress and results of the implementation of the State Program of agricultural development and regulation of agricultural products, raw materials and food markets in 2021. https://mcx.gov.ru/activity/state-support/programs/program-2013-2020/. Last accessed 15 Mar 2023

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12. Dudin MN, Anishchenko AN (2022) Conceptual issues of Russia’s food security in the context of digital industry reform. Food Policy Secur 9(1):23–48 13. Federal State Statistics Service: Agriculture, hunt and forestry. https://rosstat.gov.ru/enterp rise_economy. Last accessed 20 Mar 2023 14. Shchutskaya AV (2022) Russia’s food security under new sanctions. Econ Entrepreneurship 2(139):239–244 15. HSE: Indicators of innovative activity: Statistics digest. https://www.hse.ru/primarydata/ii. Last accessed 20 Mar 2023 16. Federal State Statistics Service: Living standards. https://rosstat.gov.ru/folder/13397. Last accessed 20 Mar 2023 17. Federal State Statistics Service: Customer prices. https://rosstat.gov.ru/statistics/price. Last accessed 20 Mar 2023 18. Zakshevskiy VG, Bogomolova IP, Vasilenko IN, Shaykin DV (2023) Russia’s food independence: current state, security risks and promising trends. Food Policy Secur 10(1):9–28 19. Korolev MI, Khorev AI, Bogomolova IP, Shaykin DV (2022) Assessment of the country’s food security in the context of escalating risks and the application of sectoral sanctions. Modern Econ: Probl Solutions 6(150):123–136 20. Saboori B, Radmehr R, Zhang YY, Zekri S (2022) A new face of food security: a global perspective of the COVID-19 pandemic. Prog Disaster Sci 16:100252 21. FAO Homepage: https://www.fao.org/about/en/. Last accessed 15 Mar 2023

Automated Control Systems of Enterprises as a Factor of Digital Technological Development O. E. Pudovkina1(B) , E. V. Ivanova2 , E. A. Bratukhina3 and Yu. A. Kolesova3

,

1 Syzran Branch of Samara State University of Economics, Syzran, Russia 2 Michurinsk State Agrarian University, Michurinsk, Russia

[email protected]

3 Vyatka State University, Kirov, Russia

{ea_bratuhina,usr11010}@vyatsu.ru

Abstract. In this work, the authors analyzed changes in the technological structures of society. Each technological order provided the use of appropriate technological means of production. It is concluded that the events of recent years, both Covid-2019 and the special military operation, confirm the fact that Russia should move away from the raw material nature of its own economy as soon as possible and produce more technological products with a high value added coefficient. A general conceptual idea of technological modernization of control systems has been developed, which makes it possible to increase the share of automation of industrial production and expand technological capabilities. Trends in the technological development of business process management are identified. Certain advantages were determined which an automated enterprise management system and the organization as a whole can receive. A list of recommended measures has been compiled to ensure uninterrupted operation in the face of technical foreign restrictions. Directions have been developed for improving activities of an industrial enterprise in terms of obtaining benefits from improving the automation of its business processes, contributing to an increase in the marginality of products and services, reducing costs, increasing the productivity and the speed of adaptation to external changes. The expected positive results of the use of modernized technologies at industrial enterprises are determined, one of the advantages of which is the departure from foreign manufacturers who left the Russian market. Keywords: Automated Control System · Business Process Automation · Development of Enterprises · Industrial Enterprises · Industry 4.0 · Technological Strategy

1 Introduction Modern rapid technological changes are a factor of the digital transformation of production. Industrial development processes as part of this process are actively introducing the latest approaches to management and business organization. Six technological structures of society are known, each of which is characterized by the use of certain production © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 18–26, 2023. https://doi.org/10.1007/978-3-031-38122-5_3

Automated Control Systems

19

technologies from steam engines to the application of artificial intelligence, bio and nanotechnologies, robotics, and a full-scale virtual reality system. The main resource of production changed from water, coal, steel, oil, to microprocessors of human consciousness. A new technological cycle becomes a trigger for a program of cardinal changes in the business processes and a deep restructuring of existing business models [1]. The basic innovative principles of entrepreneurship have also changed: from factory production, the economy of agglomerations, universal standardization, vertical integration, mass production, informatization to the network unity of human and technology. The recent events confirm the fact that Russia must move away from the raw material nature of its own economy as soon as possible and produce more technological products. However, according to the indicators of the Federal State Statistics Service, high-tech sectors of the Russian economy formed only 7.2% of GDP, and the share of domestic expenditures on research and development in the GDP, which determine the share of the science intensity, is only 1% as of April 8, 2022 [2]. Therefore, the development of a development strategy for the industrial technological landscape in terms of the modernization of automated control systems is of particular importance in the current economic situation, and the direction of entering the sixth technological mode of our society is an urgent task. It should be noted that the transition from new challenges to new opportunities in the current political situation is aimed at developing a domestic automated control system, since the access to new foreign technologies is closed to us. On the one hand, there are a lot of technologies, solutions, and even domestic ones have been developed and implemented, but, on the other hand, the share of the manual labor is quite high. In this case, the general conceptual idea of the vector of technological development is important, the implementation of which would lead to an increase in the industrial potential, since any industry is a component of the economic stability of the state. The general conceptual idea of technological modernization of automated control systems will solve urgent problems in terms of ensuring the uninterrupted operation of production and minimizing risks of equipment downtime; development of the production landscape, taking into account the current market realities; carrying out systematic and effective modernization of marking equipment, increasing the efficiency of production processes in general. Given these initial concepts, increasing the share of automation of industrial production and expanding technological capabilities on the basis of the use of domestic components is of great practical importance for the Russian economy.

2 Methodology When solving actual research tasks, the following methods were used: the content analysis of literature, collection and analysis of qualitative and quantitative data. A review of the existing scientific literature made it possible to study contemporary trends of the industrial revolution and identify the problem of the lack of a general conceptual idea of technological development which would increase the domestic industrial potential. Quantitative analysis of statistical data made it possible to obtain information on the share of domestic costs in the high-tech sectors of the economy. The qualitative analysis enabled to form a new alternative approach to building an effective automated

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system with a focus on Russian technical re-equipment, which will significantly increase the potential of an intelligent mechanism in an industrial environment in the current conditions of limited foreign supplies. The results of the implementation of this set of methods made it possible to formulate recommendations to increase the efficiency of the industrial production after foreign manufacturers left the Russian technological market.

3 Literature Review The problem of building effective automated control systems as a result of the industrial revolution is not new in the scientific circles. Many aspects were raised by domestic and foreign researchers. Mankind realized the need to streamline business process management processes at the beginning of the twentieth century, but only with the advent of affordable, reliable, high-speed computer equipment, communications and software did it become possible to automate control systems based on modern information technologies. Industry 4.0 is a vector of industrial development for the coming decades. The use of digital technologies in the activities of industrial enterprises can increase the labor productivity, reduce the cost of production, improve the quality, speed up the process of entering new products to the market and shorten product development life cycles [3]. In the digital era, management should not be applied unchanged, it should be adapted to modern challenges and a new philosophy, and its main functions should be transformed [4]. In the program «Development of the Digital Economy in Russia until 2035» [5], the following main principles of management are noted, both at the level of industrial enterprises and at the state level: – receiving data in real time; – management of economic processes based on the automated analysis of Big Data; – high decision-making speed, real-time rule changes – instant response to changes and interactivity of the environment. In addition, the program noted that the key success factor in the digital economy is not technology, but these are new models of technology and data management that allow rapid response and modeling of future challenges and problems for states, businesses and civil society [5]. In this context, automation of technological process systems can improve the export potential of domestic industrial enterprises. The main ideas for the further production development are constantly being improved and supplemented with new approaches and practical solutions for the use of modern technologies and scientific achievements. In particular, the concept of Industry 4.0 is now based on nine results of the technological progress: Big Data analysis, automated information systems, autonomous robots, end-to-end vertical and horizontal integration, industrial Internet of things, cybersecurity, cloud technologies, additive manufacturing, augmented reality. Some researchers [6] present principles of Industry 4.0 based on the following types: the Internet of things, smart factory, cyber-physical systems, Big Data. Other scientists and analysts limit themselves to using the concept of cyber-physical interaction for predicting malfunctions, self-tuning and adapting to changes [7]. The use of advanced computer technologies and artificial intelligence can significantly increase the potential of an intelligent system in an industrial environment [8].

Automated Control Systems

21

Digital technologies are the dominant development, contributing to the growth of the marginality of products and services, reducing costs, increasing the productivity and the adaptation speed to external changes. With the transition to digital production technologies, there is a need to improve existing and create new modern control systems [9]. Trends in development based on an automated control system are aimed at creating a unified control concept in all operating modes of technological processes that can block operator errors and make decisions using a digital intelligent sensor. However, in the studies, insufficient attention was paid to the directions of improving the activities of industrial enterprises in terms of obtaining benefits from the automation of their business processes in order to increase the production efficiency in the face of limited foreign technological supplies. Under these conditions, the problem of increasing the intelligence degree of production control systems using domestic technological equipment at enterprises in the industrial sector becomes relevant.

4 Results To find out possibilities for the application of modern technologies at domestic enterprises, we analyzed and developed directions for improving the activities of industrial enterprises, taking into account the increase in the efficiency of the functioning of automated enterprise management systems (Table 1). Table 1. Directions for improving the activities of an industrial enterprise in the context of obtaining benefits from improvement Technology name

Direction of enterprise activities

Benefits of its application

Artificial intelligence

Making managerial decisions

The speed of information processing exceeds capabilities of a human in thousands of times; rationality and timeliness of decisions will not depend on the psycho-physiological state of their initiator

Blockchain technology

Secure transmission of any data

The use of technology will make it impossible to substitute and falsify any data

Internet of Things

Possibilities of remote control and autonomous operation of devices

Autonomy (or semi-autonomy) of devices from a person, incl. without human intervention in the decision-making process (continued)

22

O. E. Pudovkina et al. Table 1. (continued)

Technology name

Direction of enterprise activities

Benefits of its application

Cyber security

Enterprise infrastructure protection

Improving the protection of devices and the network from unauthorized interference

Machine learning

Predictive monitoring of the The time reduction from state of objects several months to several days; detection of defects and malfunctions is faster and better than by a human

5G technology

Increasing Wireless Speed

The speed and quality of communication is a necessary condition for combining complex systems into a single network

Virtual and augmented reality

Pattern recognition

Accelerating the execution of operations for the exchange and receipt of information, improving the interaction between people and machines

Digital twins

Combination of product lifecycle management, Internet of Things and Big Data technologies

The use of virtual prototypes of real objects (or processes) allows you to obtain accurate information about the system performance, predict future states using predictive analytics, and remotely control an object in real time

Cloud computing

Using the capacity of service providers

They allow you to save on the formation of your own IT infrastructure based on three service delivery models: infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS)

Source: authors based on [10]

The widespread application of artificial intelligence is aimed at improving the process of making managerial decisions, taking into account the characteristics of their quality, efficiency, timeliness based on ensuring high data processing speed, machine rationality and independence from the psycho-physiological state of the person making the decision. Blockchain technology should increase the security of data transmission in terms of supporting financial transactions and verifying chains of electronic digital

Automated Control Systems

23

signatures. Increasing cybersecurity ensures that unauthorized access to autonomous devices and equipment is impossible and, as a result, does not violate the management, accounting, and control of business processes at the enterprise. The new and improved 5G wireless technology should provide seamless remote access to the information and technical structure of the enterprise, in particular for geographically dispersed industries, and ensure reliable communication. Virtual and augmented reality technologies should significantly improve the communication between a human and artificial intelligence at the audio-visual level. The use of digital twins allows modeling business processes of an enterprise without any risk of damaging the sustainable functioning of a real object. In addition, working with a digital twin provides an instantaneous determination of enterprise performance indicators and the implementation of forecasting the future states of the simulated situation in the socio-economic system. The introduction of cloud computing technologies, which according to their properties and capabilities can be divided into three types: infrastructure as a service, software as a service and platform as a service, allows enterprises to choose the most profitable and optimal option for deploying an automated system and save money on creating their own computing infrastructure. It should be noted that the current global trends in the economy development are accompanied by a rapid increase in the level of innovations, their speed, volume and impact, which should lead to significant improvements in the efficiency of business process management, production productivity and cost reduction. The unprecedented growth in the volume of data and the possibilities of its use in new technologies contributes to the activation of the interaction processes between various subjects of economic activity. Automation, in the general sense of the word, refers to the inclusion of information systems (software) in the algorithm (model) of the process and minimization (but not exclusion) of human participation in it [11]. We believe that the classical architecture of computing capabilities of automated enterprise management systems is also constantly evolving due to modern mathematical methods and technical innovations. In our opinion, the modernization of automated process control systems helps to achieve strategic goals through the production efficiency, reducing the risks associated with human factors. Autonomous production has the highest value today. It should be noted that in the current situation of limiting foreign technological supplies, it is important to pay increased attention to the quality of the organization of maintenance and repair processes, to conduct an internal audit of equipment and spare parts, to be able to identify places with own resources where the likelihood of components coming out can critically affect the performance of production, evaluate the quantity and quality of the competencies of human resources. The analysis of the prospects for the use of modern technologies in the context of ensuring the Industry 4.0 principles made it possible to formulate recommendations for the development of a mechanism for managing business processes using an automated system (Fig. 1). In our opinion, in the current situation, the enterprises themselves need to be able to take care of their production assets. First of all, to revise the strategy of the industrial landscape in terms of automated process control systems. The landscape that has developed over many years, one day became simply irrelevant. In the event of failure

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O. E. Pudovkina et al.

Updating of maintenance and repair systems (transition from reactive to preventive maintenance)

Finding bottlenecks (compiling a list of equipment with a high probability of failure)

Re-equipment planning (drawing up a work plan for the replacement of equipment)

Total inventory of equipment and spare parts

Recommende d measures for industrial enterprises

Evaluation of staff (determining the availability of a possible replacement with own resources) Selection of replacement equipment (selection of equipment based on the task, and not the currently installed model)

Fig. 1. List of recommended measures to ensure the smooth operation of the automated control system (Source: authors)

of even the most inexpensive module, the production line may stop working and the production will most likely stop. On the one hand, replacing all equipment is expensive and unrealistic. On the other hand, if nothing is done, it will lead to downtime of the production line. The authors have developed an alternative approach to technological re-equipment (Fig. 2). The strategy implies a transition to new equipment available in Russia. The transition must be done in stages. The effectiveness of modernization is expressed in reducing dependence on vendors who left Russia; in the cost reduction of spare parts, since earlier it was necessary to overpay for well-known brands; fast system recovery, allowing the operator to troubleshoot, restart the system and restore work. This is an opportunity to independently increase the functionality.

Automated Control Systems

Equipment manufacturer selection

Obtaining competencies in new technology

Carrying out modernization at the pilot site

1 month

2-3 months

4-6 months

Preparation of technical requirements

Equipment line training

Development of the technological process

Service organization

Market analysis of automated systems

Conducting practice tests

Preparation of a technical project

Planning for further upgrades

Technical analysis of equipment

Carrying out preproject preparation

Project realization

Preparation of project documentation

Comprehensive equipment analysis

Preparation of a conceptual solution

Decommissioning of old equipment

25

Complete modernization of production technologies up to1 year

Planned modernization

Fig. 2. Strategy for modernization of the technological system of an industrial enterprise (Source: authors)

5 Conclusions Technological modernization is a factor in the outstripping growth of the industry in the context of the transition from new challenges to new opportunities. The conducted research allows us to conclude that Industry 4.0 technologies are becoming a trigger for changes in the business processes and restructuring of the existing business models. The application of the author’s conceptual approach to the modernization strategy of the technological system of an industrial enterprise increases its efficiency, introduces new functionality into its work. In our opinion, in the context of the application of a modernized approach based on modern technologies at domestic industrial enterprises, the following effects are the most realistic: – – – –

improvement of the export potential of domestic industrial enterprises; development of the Russian market for automated process control systems; increase in the speed of decision-making based on operational and objective data; reduction of the dependence on foreign supplies and focusing on the Russian technology integrators; – implementation of variability and adaptability, which is especially important right now for the Russian industrial enterprises.

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References 1. Veselovsky MYa, Khoroshavina, NS (eds) (2021) Digital transformation of industrial enterprises in the context of innovative economy. 1st edn. Mir, Moscow 2. Federal State Statistics Service: Science. https://rosstat.gov.ru/statistics/science. Last accessed 15 Apr 2023 3. Trofimov OV, Sahakyan AG (2018) Functioning of industrial enterprises in the digital economy. Basic Res 8:122–126 4. Mozgovoy AI (2018) Improving management efficiency through the digitization of the economy. The Eurasian Sci J 5(10):91ECVN518 5. Program «Development of the Digital Economy in Russia until 2035». https://spkurdyumov. ru/uploads/2017/05/strategy.pdf. Last accessed 15 Apr 2023 6. Denisenko VYu (2020) Automation of manufacturing business processes in the context of Industry 40 in industrial enterprises. Russian J Innov Econ 10(2):1007–1014 7. Lu Y (2017) Industry 4.0: a survey on technologies, applications and open research issues. J Ind Inform Integr 6:1–10. https://doi.org/10.1016/j.jii.2017.04.005 8. Konstantinidis FK et al (2023) Automating dairy production lines with the yoghurt cups recognition and detection process in the Industry 4.0 era. Procedia Comput Sci 217:918–927 9. Arakelyan EK, Kosoy AA, Mezin SV, Pashchenko FF (2021) Application of the basic principles of “Industry 4.0” in the intellectualization of automated control systems of modern thermal power plants. Procedia Comput Sci 184:865–870 10. Schmidt R, Möhring M, Härting R-C, Reichstein C, Neumaier P, Jozinovi´c P (2015) Industry 4.0 – potentials for creating smart products: empirical research results. In: Abramowicz W (ed) BIS 2015, vol 208. LNBIP. Springer, Cham, pp 16–27. https://doi.org/10.1007/978-3319-19027-3_2 11. Kelarev VV, Vinogradova MS (2022) Systematization and automation of business processes as the basis for building digital control platforms large and medium enterprises of the country. State Municipal Manag Scholar Notes 4:160–165

Improvement of the Quality of ESG-Reporting in Russia E. I. Zolotukhin , O. A. Naumova(B)

, and S. V. Silantiev

Samara State University of Economics, Samara, Russia [email protected]

Abstract. This contribution considers a problem of the current level of nonfinancial sustainability reporting as a key area of corporate reporting development in the third decade of the 21st century. Reports on sustainable development of the largest companies in Russia were analyzed, conclusions were drawn on the presence of a number of factors that hinder further development of the ESG agenda in the Russian Federation. In accordance with the research, the concept of developing domestic standards for sustainable development was proposed, which would solve the existing problems and become a basic tool for further development of the sustainable development agenda in Russia. The paper proposes a minimum set of sixteen indicators on six key sustainable development goals that are most important to disclose in terms of national interest. Today, non-financial reporting is voluntary and is presented as part of the corporate reporting of public companies. In the EU countries, the U.S., China and others, there are standards for integrated reporting. The authors analyze the necessity of introducing the Russian standard of non-financial reporting. Keywords: Corporate Reporting · Corporate Reporting Verification · Non-Financial Reporting Standards · Sustainable Development

1 Introduction Today, the absolute majority of large companies pay special attention to the disclosure of non-financial reporting, led in the last decade by the organisation’s sustainability report. The Russian Ministry of Economic Development has proposed a draft federal law «On Public Non-Financial Reporting» [1], which defines public non-financial reporting as a set of information and indicators reflecting an organisation’s strategy, goals, management approaches and performance in terms of social responsibility and sustainable development. Sustainable development aims to achieve economic growth with the reduction (or complete neutralisation) of negative externalities (both environmental and social) [2]. The very idea of sustainable development was expressed by the philosophers of ancient Greece, and now we are talking about 17 Sustainable Development Goals (SDGs) adopted by the UN in 2015 [3]. The authors believe that the current approach of Russian companies to sustainability goals has a number of shortcomings related to the preparation of sustainability reports. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 27–33, 2023. https://doi.org/10.1007/978-3-031-38122-5_4

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The first problem is that reporting is incomplete. Foreign standards, by their very nature, do not take into account all the national specifics of doing business in Russia [4] (similar to the private interests of other countries), while they are forced to give complete freedom in the choice of reporting vectors [5]. The second problem is the difficulty of understanding and the need to unify the basic structure of reporting [6]. This would make it much easier for ordinary citizens to evaluate sustainability reports, as the basic and most important information would be required to be disclosed by all companies in a strictly defined manner. V.V. Putin also commented on this issue on 16 March, noting that currently only a narrow circle of people is aware of companies’ social programs [7]. The third problem is a shift of interest from investors to the interested population of the country [8]. The fourth problem is the inappropriateness of sustainability reporting by medium-sized companies. As the process of defining the structure of the report, collecting and preparing information is quite time-consuming and has no practical benefit in terms of foreign investment [9]. The fifth problem is the potential concealment of some information by large companies and its reliability. This problem was also discussed by A. Papoutsi and M.M.S. Sodhi [10]: their analysis showed that sustainability reports contain information on the actual achievement of the SDGs, but there is no confirmation of its reliability. In order to solve the problem of the legitimacy of information, it is necessary to develop specific methodologies for the calculation of indicators, mechanisms for the collection of documents and data processing. The sixth problem is the inconsistency between international standards and the national goals of the Russian Federation. This inconsistency can be expressed, for example, in the absence of reporting elements related to poverty eradication in the international GRI standard [11].

2 Methodology The purpose of this paper is to analyze current sustainability reports in order to identify and confirm the existence of problems and to propose areas for improving the information contained in sustainability reporting in order to improve its quality. There is still a need to create our own standard. The authors have selected from GRI a minimum mandatory for disclosure set of key indicators characterizing the achievement of key sustainable development goals taking into account the national interests of the Russian Federation and added several new indicators that are not specified in the GRI standard (Fig. 1): Within the framework of this work the following research methods are applied: 1. Theoretical (analysis, synthesis, concretization, generalization, method of analogy). 2. Diagnostics. 3. Experimental (formation of conclusions, concrete practical recommendations and offers). Among the main sources of information we used the works of Russian and foreign scientists, international standards of auditing and non-financial reporting, expert opinions and mass media materials.

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29

Fig. 1. Key areas of disclosure in the ESG-reporting (Source: authors).

3 Results In total, the authors have developed 16 mandatory disclosure indicators that characterize companies’ achievement of the following sustainability goals (Table 1). The existing level of disclosure of proposed indicators in the 2021 reports by large industrial companies was analyzed: PJSC Severstal, PJSC Mechel, PJSC Norilsk Nickel (NorNickel). Table 2 shows the proposed indicators, if the company’s report contains the relevant data, the column was marked with «+», if it does not contain «−», if the data is partially available – «+−» [12–14]. When analyzing Table 2, the presence of limited auditor confidence in the quality of reporting in all these companies is particularly noteworthy. This confirms the considerable difficulty in assessing the quality of information in the absence of a consistent reporting methodology. Report verification is gaining popularity all over the world [15], it is a set of measures to verify the reliability of sustainable development reports, this verification is carried out by independent companies providing report verification services. It is important to mention that GRI developers do not have their own base of reports and do not verify reports prepared according to their standards, and verification is carried out by thirdparty companies, in Russia it is FBK, DGS, etc. The most popular standards for the verification of reports are ISAE 3000 and AA1000. Both standards provide two types of assurance: limited assurance and reasonable assurance. Our analysis of the non-financial statements of large metallurgical companies has shown that auditors provide only limited assurance.

30

E. I. Zolotukhin et al. Table 1. Suggested indicators by Sustainable Development Goals.

ESG-areas

Indicators

Good health and well-being

1. Total amount of payments for the reporting period aimed at providing benefits to employees of the organization in the field of health care 2. Share of employees who used benefits 3. Accident frequency rate

Decent Work and Economic Growth

4. Staff turnover 5. Share of employees who are members of voluntary associations companies which are not connected with labour activity 6. Average salary of main production personnel

Quality education

7. Share of employees who received advanced training at the company’s expense in the reporting period 8. Share of structural subdivisions where the mentoring program is implemented 9. The amount of company’s investments in employee training

Poverty Eradication

10. Share of employees with disabilities in the average number of employees 11. Ratio of average salary in the company to the average salary in the industry in the region 12. The amount of investment in social projects to eliminate poverty and poverty

Clean water and sanitation

13. The amount of investment in projects to eliminate water pollution

Preserving ecosystems

14. Share of environmental costs in revenue, % 15. Share of costs to reduce the environmental impact of activities in the total amount of the organization’s costs 16. Total amount of investments to reduce the environmental impact of operations

Source: authors

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Table 2. Disclosure of proposed indicators in the 2021 ESG Reports of considered companies. Indicator

Mechel

Severstal

NorNickel

Total amount of payments during the reporting period aimed at providing health care benefits to employees of the organization

−

+

+

Percentage of employees receiving benefits

−

−

+

Injury rate

+

+

+

Rate of employee turnover

+

+

+

Percentage of employees who are members of employee benefit plans that are not related to employment

−

−

−

Average salaries of key producing personnel

−

+

−

Percentage of employees receiving advanced training at company expense in the reporting period

+−

+−

+−

Share of business units where a mentoring program is implemented

−

−

−

Amount of company investment in employee training

+

+

+

Proportion of employees with disabilities as a percentage of the total workforce

−

−

+

+

−

−

−

+

+

The ratio of average salaries − within the organization to the average salaries in the industry in the region Amount of investment in social projects aimed at eradicating poverty and poverty

−

Amount of investment in water − pollution abatement projects

(continued)

32

E. I. Zolotukhin et al. Table 2. (continued)

Indicator

Mechel

Severstal

NorNickel

Share of environmental costs in revenue, %

−

−

−

Share of environmental impact − mitigation costs in total costs of the organization

−

−

Total amount of investment in reducing the environmental impact of operations

+

+

+

Verification of sustainability report for assurance assignments

limited verification limited verification limited verification

Source: authors

4 Discussion While the authors suggested that only the most basic indicators covered by national projects and sustainable development goals should be disclosed, it can be observed that the non-financial reporting of the largest companies is lacking. This suggests that the organization is not always guided by the principles of materiality and often omits information to enhance its image. It is also worth noting that although the reports analyzed contain the information needed to calculate the presented figures, it is fragmented, making it difficult to aggregate and draw a comprehensive conclusion. In the absence of a consistent approach at the current rate of proliferation of ESG reporting [16], discrepancies may become more frequent, leading to a reduction in the overall level of confidence and the impossibility of making predictions about a company’s development based on non-financial reporting [17, 18].

5 Conclusion Currently, most Russian companies prepare their non-financial reports on the basis of the international GRI standard. The GRI system is a set of rules and documents developed as a result of international consultations involving a wide range of stakeholders. After formulating a number of assumptions in the work, it was proposed to formulate a list of mandatory indicators for reporting on key sustainability objectives of interest to Russian society. A total of 16 indicators were developed, relating to 6 Sustainable Development Goals. This set is proposed to be presented by organizations that prepare a full set of financial statements. These indicators can be included in the notes to the balance sheet and the report on financial results. The authors do not suggest that large companies should abandon the international GRI standards, which have proven to be a good tool for non-financial reporting. A limited set of indicators will allow Russian companies that

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do not use international standards and are not interested in presenting their non-financial information to guide the presentation of this data to their users.

References 1. Draft federal law «On Public Non-Financial Reporting», https://media.rspp.ru/document/1/ 1/0/107455ceaeabe24b68bda19afb80627e.pdf. Last accessed 3 Oct 2023 2. Davtyan ED, Naumova OA (2021) Sustainability report – An effective solution for the harmonious development of the enterprise and the natural environment. Vector Econ 8(62):19 3. Mercedes A (2021) The environmental, social, and governance (ESG) dimension of firms in which social responsible investment (SRI) and conventional pension funds invest: the mainstream SRI and the ESG inclusion. J Clean Prod 298:126812 4. Parsa S, Roper I, Muller-Camen M, Szigetvari E (2018) Have labour practices and human rights disclosures enhanced corporate accountability? The case of the GRI framework. Account Forum 42(1):47–64 5. Sardianou E, Stauropoulou A, Evangelinos K, Nikolaou I (2021) A materiality analysis framework to assess sustainable development goals of banking sector through sustainability reports. Sustain. Prod. Consumption 27:1775–1793 6. Alekseeva IV, Popova ES (2022) Standardization of information disclosure in non-financial reporting of commercial organizations. Account Anal. Auditing 9(4):57–67 7. State Duma of the Federal Assembly of the Russian Federation: The State Duma discussed the prospects of the ESG agenda in the new conditions, http://duma.gov.ru/news/53779/. Last accessed 25 Mar 2023 8. Efimova OV, Volkov MA, Koroleva DA (2021) The impact of ESG factors on asset returns: empirical research. Finance Theory Pract. 25(4):82–97 9. Wen H, Ho KC, Gao J, Yu L (2022) The fundamental effects of ESG disclosure quality in boosting the growth of ESG investing. J Int Finan Markets Inst Money 81:101655 10. Papoutsi A, Sodhi MMS (2020) Does disclosure in sustainability reports indicate actual sustainability performance? J Clean Prod 260:121049 11. Federal State Statistics Service: Regions of Russia. https://rosstat.gov.ru/storage/mediabank/ Region_Pokaz_2022.pdf. Last accessed 3 Oct 2023 12. Nornickel: ESG-report metallurgical company «Norilsk Nickel» PAO 2021. https://www.nor nickel.ru/upload/iblock/6a2/l4s5huki4xmorv7eyluwxhuqzixus2xy/NN_CSO2021_RUS_03. 03.2023.pdf. Last accessed 3 Oct 2023 13. Mechel: ESG-report Mechel PAO 2021. https://www.mechel.ru/upload/iblock/84b/khhkdd fg9q2ud6q81ekvijfa1rhf46j4.pdf. Last accessed 3 Oct 2023 14. Severstal: ESG-report Severstal PAO 2021. https://severstal.com/upload/iblock/114/SR_Sev erstal_2021_RU.pdf. Last accessed 3 Oct 2023 15. Min Y, Fu J, Lujie C, Fangxu Y (2022) Assurance process for sustainability reporting: towards a conceptual framework. J Clean Prod 377:134156 16. Serafeim G (2018) The rise of ESG. 1st edn. Harvard Bus Rev 96(1):82–89 17. Schiemann F, Tietmeyer R (2022) ESG controversies, ESG disclosure and analyst forecast accuracy. Int Rev Financ Anal 84:102373 18. Paun D (2018) Corporate sustainability reporting: an innovative tool for the greater good of all. Bus Horiz 61(6):925–935

The Direction of the Post-industrial Structural Maneuver of the Russian Economy E. V. Perepelkina1

and V. A. Perepelkin2(B)

1 Index Intelligence GmbH, Frankfurt, Germany 2 Samara State University of Economics, Samara, Russia

[email protected]

Abstract. The problematics of the structural dynamics of national economies has been a hot topic for scholars around the world for decades, especially in the context of the emergence of a post-industrial society. In this respect, the topic of competition for limited economic resources between sectors and industries, which are based in their functioning primarily on the exploitation of natural resources or human capital, will gradually come to the forefront of scientific research. Depending on the outcome of the resulting contradictions between these parts of the national economy, its development can either be hindered or accelerated. This contribution explores the potential for a progressive structural manoeuvre in Russia’s economy to reduce dependence on the exploitation of abundant natural resources by intensive expanded reproduction of human capital in the tertiary sector. The reality of such a development scenario is confirmed by the discovered inverse relationship between the gross value added shares of the primary sector and the human capital generating tertiary sector in the Russian economy. The econometric model of structural changes in the Russian economy over a twenty-year period allows us to quantitatively justify the claim that the proposed cross-sectoral structural maneuver is promising. Keywords: Dutch Disease · Human Capital · Post-Industrial Trend · Resource Curse · Sectors · Structural Transformation · Structural Shifts

1 Introduction A number of countries need to develop and apply policies to transform the sectoral structure of their economies in order to reduce their dependence on the exploitation of available raw materials. Human capital should be the determining factor for such structural improvements in a post-industrial economy. The post-industrial trend of structural development in some countries rich in hydrocarbon resources has been implemented to a limited extent due to the «Dutch disease» [1] or the «resource curse» [2]. The negative consequences of this are manifested in relatively weak economic growth, technological backwardness, dependence on the situation on international commodity markets and corruption [3]. In the post-Soviet space, the possibility of moving away from resource dependence in the process of formation of a mature market economy is considered by some scientists © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 34–39, 2023. https://doi.org/10.1007/978-3-031-38122-5_5

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in the context of the flow of economic resources from the primary (raw materials) and secondary (industrial) sectors to the tertiary (service) sector. However, Kazakh scientists [4] analyzing the World Bank data for 1990–2019 note that not all national economies achieve a positive result from such structural maneuvers. According to the study of [5], the success in transforming the structure of the Chinese economy is due to the growth of total factor productivity and human capital. Here we note the inherent macroeconomic instability of post-Soviet economies, which determines the specifics of the passage of structural transformation in them [6]. The consideration of intersectoral shifts as a consequence of the struggle for economic resources is gradually being replaced by the understanding of interdependent growth of different economy parts. The systemic approach forms the idea of strengthening complementary links between raw materials, industrial and service sectors of the national economy under the condition of the latter reaching the post-industrial stage of development, when the dynamics of rapid growth of the tertiary sector is determined by high-tech economic activities that intensively apply and simultaneously generate human capital.

2 Literature Review There are different approaches to the study of structural transformation of the economy in scientific publications, varying depending on the meaning invested in this concept and the objectives set. Interpretation of structural transformation is very broad, ranging from formulations in the context of reforming the institutional, fiscal and financial components of the national economy to changes in the proportions between the parts of the latter [7]. In this study, the modern structural transformation of the economy is understood as a steady trend of shifting economic activity from one sector of the economy to another, leading to a change in the quality of structural development, namely, the formation of a post-industrial structure of the national economy. The study of sectoral industrial shifts was most active in the 1970s and 1990s, when the social democratic governments of some Western European countries set scientists the task of developing a theoretical framework for government structural policies. The so-called industrial policy focused on the problem of de-industrialization, which then came under particular scrutiny in the post-socialist countries. Given the specifics of transition economies, many Russian scholars see tertiarization not as a global economic trend but as a way of adapting to the crisis of the national economy [8]. In the 21st century, structural change began to be considered in the context of its impact on human capital accumulation. In some studies, the sociological component has come to the forefront, linked to changes in demography and people’s consumption priorities [9]. The nature of the link between deindustrialization and tertiarization, and the potential of the latter for sustainable economic growth, are still under discussion [10, 11]. There is an increasing prevalence of complementary linkages between the secondary and tertiary sectors, leading to an expectation of generally positive results from their integration [12]. Shifts within the tertiary sector are analyzed with a focus on high-value services, especially their ability to withstand external shocks such as the COVID-19 pandemic [13, 14].

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E. V. Perepelkina and V. A. Perepelkin

3 Methodology The three-sectoral Fisher-Clark model of post-industrial structural development, which determined the content of aggregates of gross value added created in the country, served as the methodological basis for the study. The study of structural dynamics of the Russian economy in the 21st century was based on economic and mathematical methods, especially mathematical analysis of time series dynamics, including correlation analysis of the closeness of their relationship, followed by the construction of a production function of the national economy. Factor analysis was implemented both at the sectoral level and at the intra-sectoral level. For each sector, the most important economic activities introduced into the production function of the Russian economy were identified. The resulting estimated data served as an empirical basis for assessing the degree of impact of human capital accumulation on the structural transformation under study. The source of quantitative information was the official Russian statistical data for the period 2000–2019. The economy was divided into three sectors according to the post-industrial «primary-secondary-tertiary» model, with one or two leading types of economic activity allocated within each of the sectors. Based on the data collected, a time series with an appropriate set of cross-sectoral shifts was constructed using the clustering method. After conducting correlation and regression analysis on the basis of the constructed time series of changes in the gross value added, a production function of the Russian economy was estimated.

4 Results Intra-sector effects are characterized by changes in the general share of observed economic activity types in the sector, as a result of which features of dependence on it are revealed. For the primary sector the main type of economic activity is hydrocarbon extraction, for the secondary sector it is manufacturing, and in the tertiary sector two types were identified – trade and its accompanying activities, and scientific, educational and vocational activities. With GDP per capita almost twice as high as the global average in 2019, the Russian economy has been tertiarized to a lesser extent due to its specialization in hydrocarbon exports (the share of the tertiary sector was 60,3% against 64,7% for the global economy) [15]. During the considered 20-year period of the 21st century there was simultaneously deindustrialization (the share of secondary sector decreased by 5 pp) and tertiarization (the share of tertiary sector increased by 1,7 pp) with the trend of primary sector expansion (its share added 3,4 pp), not typical of the period of post-industrial economy formation. The dynamics of the intra-sectoral structure of growth in the Russian economy also looked ambiguous. Oil and gas production showed a record 8,5 pp increase in its GVA share over the period under review. Extraction of hydrocarbons, which have become Russia’s «calling card» on international markets, continued to strengthen its position in the economy, drawing production, financial and labor resources away from manufacturing, whose share moved in the opposite direction and decreased by 4,2 pp. But progressive changes occurred in the structure of the tertiary sector: the share of trade,

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maintenance of vehicles and household appliances, the largest of the traditional service creation activities, fell by 9,2 pp, whereas the share of educational, professional, scientific and technical activities increased by 1,7 pp. Table 1 provides information on the dynamics of the structure of the product created by the Russian economy across and within sectors. Table 1. Structure of the gross value added (GVA) of the Russian economy by sectors and types of economic activity, %. Years 2000

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

15,4

14,5

13,7

13,2

13,5

13,4

13,1

12,9

13,1

14,2

14,2

14,8

16,9

16,4

9,5

8,6

7,6

7,1

7,7

7,9

8,0

8,1

7,9

8,4

8,0

9,2

13,2

12,6

26,3

26,4

26,8

25,1

25,1

24,4

24,4

23,0

23,0

23,1

23,0

23,1

23,6

23,3

primary 13,0

16,1

oil and gas extraction 4,1

9,4

secondary 28,3

26,9

processing industries 18,8

18,3

17,9

17,6

17,5

14,8

14,8

13,4

13,6

13,0

13,3

13,8

13,7

13,6

14,5

14,6

56,9

58,3

59,2

59,5

61,7

61,4

62,2

62,5

64,1

63,9

62,8

62,8

62,1

59,5

60,3

16,8

16,2

16,2

16,4

16,0

14,1

13,8

13,7

6,4

6,9

7,0

6,9

7,2

7,7

7,2

7,6

tertiary 58,6

trade, maintenance of vehicles and household appliances 22,9

19,5

20,3

20,2

20,3

17,9

20,0

17,4

educational, professional, scientific and technical activities 5,9

6,8

6,7

7,5

7,6

8,2

7,7

6,56

Source: authors based on [16]

Mathematical analysis of the data in Table 1 allows to calculate the dispersion and correlation values for the sector shares of the Russian economy over the period 2000– 2019. The results show that the share of the primary sector changed the least (dispersion value of 1,7), medium changes were present in the secondary sector (value of 3) and the largest changes were in the tertiary sector (4,5). A rather strong inverse relationship between the shares of secondary and tertiary sectors is signalled by the value of the correlation coefficient between them (-0,72). There is also an inverse relationship (but of lesser strength) between the shares of the primary and tertiary sectors (-0,64). Thus, in the context of inter-sectoral competition for economic resources, the process of deindustrialization of the Russian economy is primarily explained by the structural expansion of the tertiary sector, while the primary sector is generally stable. The production function of the Russian economy took the form of Eq. (1): YR = yI + yII + yIII = (a + bx1 ) + (c + dx2 ) + (e + fx3 ) = (9, 69 + 0, 53x1 ) + (12, 78 + 0, 79x2 ) + (58, 09 + 0, 41x3 ) = 80, 56 + 0, 53x1 + 0, 79x2 + 0, 41x3 ,

(1)

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E. V. Perepelkina and V. A. Perepelkin

where yI , yII , yIII – sector shares; a, c, e – intercept coefficients; b, d, f – variable values showing the strength of the impact of xn on yn ; x1 , x2 , x3 – shares of oil and gas production, manufacturing, and educational, scientific etc. activities. The coefficients of variables in the equation reflect the change in shares of gross value added resulting from a change in a variable by 1 percentage point. Based on the coefficient values of the production function equation of the Russian economy, the dynamics of manufacturing and primary sector historically had the largest impact on GVA. In case of future progressive structural shifts within the secondary and tertiary sectors, the effect of the resulting structural transformation on the entire Russian economy would be most positive.

5 Conclusions The hypothesis of possibility of making progress in the ongoing intersectoral shifts through intensive accumulation of human capital was concretely substantiated by the economic and mathematical analysis of the time series data on the Russian economy over twenty years. Theoretical assumption was that the economy is structured into three sectors according to a post-industrial model, and the assumption that production of services had priority over creation of wealth through extraction and processing was partly confirmed by the statistical data obtained: the share of tertiary sector was constantly increasing, while the share of the secondary sector was declining. However, unlike in most economies, the share of primary sector, which mainly relies on the extraction of hydrocarbons, also displayed an expansion. The identified structural specifics of the Russian economy make it difficult to implement a transition from export-oriented to domestic demand-oriented growth under external sanction pressure. In addition, the tertiary sector can become a driver of such a growth only in case of an increase in the levels of population’s real incomes. This can only be achieved through a general rise in productivity, which requires an improvement in the quality of country’s human resources. The study of structural dynamics of Russia’s GVA over a twenty-year period revealed a deviation from the general pattern of post-industrial structural development, consisting in an uncharacteristic increase in the primary sector share. The reason for this feature was the outstripping growth of oil and natural gas production within this sector. The economic and mathematical analysis revealed important structural features and intersectoral linkages. A quite strong inverse relationship between the shares of secondary and tertiary sectors in GVA was confirmed, indicating negative impact of an increasing share of the service sector on the share of industrial sector. However, the depressing effect of tertiary sector expansion on primary sector growth was also uncovered. The aggregate GVA value for the economy as a whole was historically most affected by the dynamics of manufacturing and primary sector. The conclusion to be drawn from the production function is that it could be possible to halt and reverse the growth in the share of primary sector through implementing a progressive structural maneuver by means of

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prioritizing expansion of science and education. The human capital it would generate would be injected into the secondary sector, which will strengthen its complementary ties with the tertiary sector and thus halt the process of deindustrialization of the Russian economy.

References 1. Mien E, Goujon M (2022) 40 years of Dutch disease literature: lessons for developing countries. Corporative Econ Stud 64:351–383 2. Adekoya OB (2021) Revisiting oil consumption-economic growth nexus: Resource-curse and scarcity tales. Resour Policy 70:101911 3. Sharma C, Mishra RK (2022) On the good and bad of natural resource, corruption, and economic growth nexus. Environ Resour Econ 82:889–922 4. Abdikarimova AT, Aimagambetova GB (2021) Structural transformation of the economy: Practical aspects. Bull “Turan” Univ 3:19–27 5. Vasilenko AS, Chernyadyev DN, Vlasov SA (2018) Structural transformation of China’s economy: success or failure? Vopr Ekon 7:65–81 6. Konovalova ME (2020) To the issue of structural transformation of the economy in conditions of macroeconomic instability. Econ Innov Manag 1(12):4–19 7. Vikharev VV (2019) Structural transformation of the Russian economy in the employment context: an analysis of trends and forecast. Econ Anal: Theorie Practice 18(2):217–233 8. Safronov SG, Zotova MV (2021) Tertiarization of the economy in Russian regions: deindustrialization or postindustrialization? Reg Res Russ 11:294–307 9. Abdoolla A, Govender P (2016) Risk connected to the demographic factors in managing labour relations in the tertiary sector of the economy. Risk Gov Control: Fin Markets Institutions 6(4):420–427 10. Manera C, Valle E (2018) Industry and services in the Balearic Islands, 1950–2015: the regional de-industrialisation in a tertiary economy. Econ History Res 14(3):210–219 11. Montresor S, Marzetti GV (2011) The deindustrialization/tertiarization hypothesis reconsidered: a subsystem application to the OECD7. Camb J Econ 35(2):401–421 12. Cuadrado-Roura JR (2021) Desindustrialización y terciarización. El avance hacia una creciente integración servicios-industria. El Trimestre Económico 88(351):719–768 13. Huang A, Jahromi MF (2021) Resilience building in service firms during and post COVID-19. Serv Ind J 41(1–2):138–167 14. Prentice C, Altinay L, Woodside AG (2021) Transformative service research and COVID-19. Serv Ind J 41(1–2):1–8 15. World Bank: GDP per capita, PPP. http://data.worldbank.org/indicator/NY.GDP.PCAP. PP.CD. Last accessed 20 Sep 2022 16. Federal State Statistics Service of the Russian Federation: National accounts. http://rosstat. gov.ru/accounts. Last accessed 14 Feb 2023

Digital Solutions for Industrial Enterprises A. B. Vishnyakova(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. In this paper, the author analyzes issues on the application of modern technologies and digital solutions at industrial enterprises. The research purpose is to study digital solutions implemented at enterprises of the domestic industry. The tasks include the analysis of digital solutions at enterprises, the identification of factors that impede the rapid introduction of digital technologies. At present, the rapid development of information and communication technologies has led to the formation of different approaches to the organization of production at all stages of a product’s life. Enterprises in the implementation of digital production methods have a unique opportunity to have information about the product from its design, manufacture to sale and disposal. The contribution investigates a possibility, significance and prospects of using digital technologies that allow industrial enterprises to make a breakthrough in the innovative development and improve their work efficiency. The work includes some examples that allow us to analyze production processes that are being improved at enterprises nowadays with the help of automation and special digital tools. It is emphasized that the most important factors of the economic growth are the development of the digital economy, where the processes of enhancing the technological development of industrial production become relevant. Special attention is paid to the significance of introducing digital solutions that help increase the productivity of companies and create competitive products. Keywords: Digital Transformation · Digital Solutions · Industrial Enterprises · Innovative Technologies

1 Introduction Digitalization today is one of the main trends affecting all areas of economic development, including the development of industrial enterprises. Digitization allows industrial enterprises to gain a high level of flexibility in the formation of new business models, as well as to form a wide coverage of the customer base by integrating cyber-physical tools (CPS – Cyber-Physical System) and the Internet of Things into their activities. The basis for the integration of new technologies in the production process is the desire of enterprises to improve the efficiency of their activities. According to Rosatom [1], enterprises operating in different sectors of the economy have varying degrees of digitalization. The development and promotion of additive 3D technologies in modern mechanical engineering is being carried out. To the tasks of Rosatom by 2030 belongs to increase the © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 40–45, 2023. https://doi.org/10.1007/978-3-031-38122-5_6

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share of new products to 30% in the total revenue of the state corporation. The main goal of digitalization is the transformation of large industries with the help of innovative platform solutions and special latest digital technologies [1, 2]. Enterprises operating in different sectors of the domestic economy have varying degrees of digitalization. For example, as of 2021, in the structure of the domestic economy, the most digital industries included such areas as cybersecurity, human capital. The leaders in digitalization in Russia are the banking sector, retail, and telecommunication companies. Among the laggards, there is mechanical engineering.

2 Methodology In the course of this research, general scientific methods were used, among which were analysis, the method of classification and typology, generalization, and the systemfunctional method. The works of E. Brunjolfsson and B. Kahin [3], L. Budd and L. Harris [4], B. Carlsson [5] are devoted to the problem of analysis and evaluation of various digitalization aspects. There are companies for which this path is new and there are many ambiguities and contradictions. Of course, a lot of industrial enterprises in one way or another use digital technologies and solutions in their work. However, despite the increased interest in digital technologies and existing achievements, there are still no generally accepted methodological approaches to the analysis of digital solutions. Many companies do not have enough investment, as the statistical figures show. Of course, insufficient investment will lead to a slow penetration of digital technologies into the production processes of Russian industrial enterprises. Given the backwardness from developed countries, this factor can further aggravate the situation. Well-known scientists speak about benefits of the digital transformation for various business processes. In the production of new products, the use of digital technologies will help to better understand the customers’ needs. Digital modeling applied at enterprises allows you to accelerate the development of new products. V.G. Khalin and G.V. Chernova [6] point to these advantages, since it becomes possible to analyze the amount of data collected in various areas of the industrial activity.

3 Results Today it is already difficult to imagine how industrial enterprises could function without information technology. Information technologies allow enterprises not only to organize and exercise control by a person, but also to interact with each other on the level of various structural divisions within one organization. Almost all modern innovations are related to digital tools nowadays. In Russia, the share of organization engaged in technological innovations decreased from 9.1% in 2012 to 7.8% in 2019. The share of shipped innovative goods and provided services decreased over this period from 8% to 5.3% [7]. Modern digital trends related to the development of industrial enterprises involve the use of new indicators. Among these indicators, there is digital maturity. According to G. Bannykh, M. Baranova, and A. Rezhetskaya, the digital maturity is a measure of

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awareness and readiness for the successful implementation of digitalization tasks [8]. In November 2020, the Ministry of Digital Development, Communications and Mass Media of the Russian Federation approved methods for calculating target indicators of the national development goal of the Russian Federation related to the digital transformation, a methodology for assessing the level of digital maturity of industrial enterprises, which was tested at enterprises in various industries [9]. The main advantage that the digitalization process provides is the reduction of time for the development, implementation and launch of a product. Conceptually, the basics of digitalization of an industrial enterprise were first outlined by N. Negroponte in 1995 [10]. However, at that time, there was still not enough electronic power to implement the stated concept, and the ideas were at the stage of theoretical development for a long time. Blockchain technology is one of the key advanced technologies. The digitalization of industries and the introduction of blockchain in the production increases the speed of work, reduces time costs, eliminates technical and non-technical losses, thereby ultimately improving the quality of manufactured industrial products [11]. The results of the analytical stage of our research allowed the author conclude about the applied digital tools in the real practice of the considered Russian industrial companies. The United Metallurgical Company is implementing projects in machine vision, smart sensors and big data processing. Machine Vision (MV) is the automatic capture and processing of images of stationary and moving objects using computer tools. These projects allow the company to control the quality of products at all stages of its production. Many technologies allow you to track the smallest changes and prevent equipment breakdowns. The modernization of production facilities is another important task facing companies. The automated certification of products enables to produce high-quality competitive goods. Sibur also pays great attention to digital solutions and digital transformation. It is a key link for optimizing all business processes. Among the projects that have been implemented are the technology for digital modeling of gas-chemical reactions, as well as the project for the digitalization of logistics and supply chain management processes. According to the sustainability report of another Russian company, Severstal, its main focus is on digitalization. The company managed to increase the productivity of equipment due to artificial intelligence technology. The above examples show that the problem of achieving the digital maturity is of particular relevance. Many companies perform quite effectively, however, a number of industries are still far behind in terms of the level of the digital solutions implementation. Mechanical engineering enterprises have a good potential for their development, but it is important to note a sufficiently high level of depreciation of fixed assets and the need for modernization. The digital maturity of industrial enterprises implies, first of all, not only the use of modern digital technologies and solutions, but also the implementation of a large complex work in the field of communication with customers, sales organization and management of internal business processes. Definitely, today there is no exact concept of digital maturity, since we are talking, first of all, about the level of automation

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at enterprises and possible adaptation to new operating conditions. This became especially relevant after the imposition of sanctions, when many Russian enterprises were immediately placed in very harsh conditions.

4 Discussion The term «digital economy» was first proposed by D. Tapscott in 1995, when the scientist showed how the Internet can change social relations, the business environment as a new generation using digital technologies grows [12]. In other words, the digital economy can be defined as an economy based on digital technologies. Definitely, digitalization is one of the most important directions of contemporary development. On the one hand, it is our present and our future. On the other hand, it is worth noting that the speed of implementation and the scale of implementation of digital solutions and technologies are not the same for different industries. All the same, many enterprises of the domestic industry, despite the same vision of the prospects for the digital economy, demonstrate that the industry lags behind developed countries. According to various estimates, this lag can reach about 15 years. Experts believe that the main reasons are the insufficient level of development of automated production, the high wear and tear of fixed production assets and the shortage of qualified personnel. Currently, there are many external threats. These include sanctions that hinder access to modern advanced technologies. This leads to technological risks that negatively affect the production and the competitiveness of enterprises. The domestic industrial enterprises in general have a well-formed digital strategy. Today, the digitization of the relationship between companies and the client is a priority for the digital development of Russian enterprises. Enterprises belonging to different sectors of the economy have different levels of the digital maturity. The level of the digital maturity for some sectors of the economy was assessed. The analysis of the research findings show that among Russian companies, the most matured, in terms of digitalization, are enterprises in the banking sector, trade, and telecommunications. B2C companies are the most advanced in the field of digital solutions, as they mainly work with consumers and take into account the constantly changing requirements of consumers. It is worth noting that the pandemic has led to the ability to work online and companies have been looking for new ways to interact with customers [13]. Unfortunately, the largest industries are facing problems in the digital adaptation: metallurgy, mechanical engineering. This lag is due to low competition, depreciation of fixed production assets. As for digital solutions, they are aimed at optimizing the work of the organizational and managerial apparatus. Organizational and managerial digital solutions involve the introduction and use of information technologies that allow you to quickly and efficiently collect information about the processes taking place at the enterprise in order to control and promptly form and implement management decisions. Production digital solutions are aimed at introducing technologies that allow organizing the production of products and services with minimal human involvement. Logistic digital solutions are aimed at optimizing logistics processes in companies and reducing costs.

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5 Conclusion According to the forecast of the consulting company McKinsey, the possible potential effect of the digitalization of the Russian economy will increase the country’s GDP by 4.1–8.9 trillion rubles by 2025, which will be from 19 to 34% of the total expected GDP growth [14]. The digital economy seems to be an inevitable stage in the development of industrial and economic relations in all regions of the world. Digital solutions empower companies. Since the 1960s digital innovations spread around the world in successive waves emanating from the scientific centers of the USA, Europe and the USSR. The United States is a leader in the development of digital technologies. Nowadays, the largest volume of exports of information and communication technologies is observed in India and China. The United States confirms the fact that investment is a basis for the accelerated development, leading among the countries of the world with the largest amount of government spending on the digitalization of the economic space. The ICT sector and the IT industry form the basis for the development of the digital economy. The study showed that digitalization is a trend and direction of the future allowing industrial enterprises to reach a new level of their development, increase the competitiveness and the value of their business. Today, the trend is Industry 4.0 which is a process of transition to fully automated digital production, controlled by intelligent systems. Elements of Industry 4.0 are autonomous robots, simulation, Internet of things, cybersecurity, cloud computing, additive manufacturing, big data. Transformation involves the implementation of digital solutions that allow you to qualitatively change the business models of many enterprises. Every year, the demand for advanced digital technologies in various sectors of the economy will increase.

References 1. Rosatom: digital products of Rosatom. https://www.rosatom.ru/production/supercomputerand-software/. Last accessed 18 Feb 2023 2. Vishnyakova AB, Nikolaeva SY (2021) Digital transformation of industry: relevance and main problems of introducing innovative technologies. Econ Entrep 5(130):124–127 3. Brynjolfsson E, Kahin B (eds) (2000) Understanding the digital economy: Data, tools, and research, 1st edn. The MIT Press, Cambridge 4. Budd L, Harris L (2004) E-Economy rhetoric or business reality?, 1st edn. Routledge, Abingdon 5. Carlsson B (2004) The digital economy: what is new and what is not? Struct Chang Econ Dyn 15(3):245–264 6. Khalin VG, Chernova GV (2018) Digitalization and its impact on the Russian Economy and society: advantages, challenges, threats and risks. Admin Cons 10:46–63 7. Mottaeva A, Stepanova J, Meshkova N, Semenova G (2021) Optimizing the resultativeness of adapting an economic entity to the conditions of digitalization. Eur J Sustain Dev 10(1):705– 723 8. Bannykh G, Baranova M, Rezhetskaya A (2022) Assessment of the digital maturity of the regions as a tool for digital transformation of public administration. In: Russian regions in the focus of change: a collection of reports, vol 2, pp 554–560

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9. Order of the Ministry of Digital Development, Communications and Mass Media of the Russian Federation No. 600 dated November 18, 2020. On Approval of the Methods for Calculating Target Indicators of the National Development Goal of the Russian Federation and Digital Transformation, http://www.consultant.ru/document/cons_doc_LAW_372437/. Last accessed 20 Apr 2023 10. Negroponte N (1995) Being digital, 1st edn. Alfred A. Knopf, New York 11. Pratt MK (2022) Digital economy, http://searchcio.techtarget.com/definition/digital-eco nomy. Last accessed 10 Oct 2022 12. Tapscott D (2014) The digital economy anniversary edition: rethinking promise and peril in the age of networked intelligence, 2nd edn. McGraw-Hill, New York 13. Sazhina M, Kostin S (2019) Blockchain in the knowledge management system, 1st edn. LLC Scientific Publishing Center INFRA-M, Moscow 14. Research by the Digital/McKinsey expert group. Digital Russia: a new reality. https://www. tadviser.ru/images/c/c2/Digital-Russia-report.pdf. Last accessed 18 Feb 2023

Structural Changes and Forecast Estimates of Coal Production and Exports in Russia O. F. Chistik1(B)

and N. V. Nikulnikov2

1 Samara State University of Economics, Samara, Russia

[email protected] 2 Volga State University Telecommunications and Informatics, Samara, Russia

Abstract. The contribution comprises the analysis of structural differences in the distribution of mined coal among consumers and the short term forecast for coal production and exports in Russia. The hypothesis of the study is that the effective development of the coal industry, being a sustainable supplier of coal to the external and the domestic markets, is connected with the ongoing structural changes in coal consumption, which determines the further direction of coal industry evolution in Russia. The study is based on the method of structural changes to conduct a quantitative and qualitative assessment of the structural differences in coal consumption in the foreign and domestic markets, as well as the Box-Jenkins method–for short term forecast estimates of coal production and exports. The study is based on statistical information on the Russian Federation for the period 2010–2021. The study concluded that significant structural differences in external and domestic coal consumption in 2019–2021 compared to 2010 are associated with an advanced increase in coal exports as opposed to a decrease in its domestic consumption. At the same time, the characteristics of structural changes in the specified time periods let us make a forecast assessment of coal production and export for the short term. Keywords: Assessment of Structural Differences · Coal Production · Exports · Forecast Assessment · Structural Changes

1 Introduction The coal industry makes a significant contribution to the Russian economy, while providing jobs for small towns and monotowns to create economic and social effects from the development of this industry. The social significance of the coal industry for employment and living standards of citizens cannot be overestimated. The ongoing global transformation and geopolitical shocks, environmental degradation and climate change are undermining the country’s socio-economic security. Notably, the tendency to use coal for electricity production in European countries and in the United States is decreasing. The export orientation of the coal industry in Russia is a key vector of its development. A large proportion of developing states still consider coal necessary for economic growth; environmental problems stand much lower. The topic under consideration is relevant for © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 46–51, 2023. https://doi.org/10.1007/978-3-031-38122-5_7

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researchers. In the theoretical and methodological plan, we can highlight the works [1, 2], which analyze the challenges, risk-forming factors and threats to the development of the coal industry; in the instrumental and methodological aspect, the authors in their works explore innovative methods that determine the further development of the coal industry [3–10]. A number of authors simulate and forecast greenhouse gas emissions in the most polluting countries [11], develop a long term system of simulation models on the federal and regional levels [12, 13]; propose the use of modern technologies for the extraction of residual coal with the aim for sustainable development of the coal industry in China and solving problems to achieve increased labor productivity and safety, address ecology matters as well [14]; assess the characteristics of regulation procedures and their impact on safety for the environment and investments climate [15]. The purpose of the presented study is to set up integral quantitative and qualitative estimates of the current structural changes in coal consumption during various periods in the foreign and domestic markets and present forecast estimates of coal production and exports for 2022 and 2023.

2 Research Methods The analysis of structural changes in coal consumption in foreign and domestic markets was conducted on the basis of general scientific and statistical research methods: dialectics, comparisons, time series analysis, the method of aggregate assessment of the measure of differences in structures. Processing of the information array was carried out on the basis of application packages Statistica, Microsoft Excel, Gretl software package is used to forecast coal mining and coal exports for 2022 and 2023.

3 Results One of the significant features of the coal industry in Russia is a large share of exported coal. In 2021, it accounted for more than 57% of the total supply of coal. Compared to 2010, its share increased by 18% points, while its domestic consumption decreased by this amount. Moreover, there are noticeable declines in the following domestic coal consumers: industries for coking–by 2.7% points, household use–by 3.7% points, other consumers–by 6.9% points. To study structural differences for five coal consumers, we used an aggregate assessment of differences in structure for five variants of paired comparisons. It allows to determine, along with the content side of the detected differences in structures, an extent of variation according to the scale of significance of structural differences proposed by us [16] based on the criterion of V. Ryabtsev (Table 1). In particular, the meaning of the instance of the aggregate rating of the measure of differences in structures with the number of gradations equal to two is clear (Table 2). This rating varies from the identity (immutability) of structures, 2011–2012, to a significant level of structure difference for 2020–2021. We also analyzed structural changes in coal mining methods. The structural difference index of V. Ryabtsev in 2021 by 2010 amounted to 0.053 (5.3%) and did not exceed this value year to year for the entire (2011–2021) period under review.

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Table 1. Structural level of differences for all coal consumers for the periods 2011–2021 to 2010 year,%. Year

Structural differences to 2010 year Value

Extent

2011–2013

Under 6,5

Very low

2014–2018

Under 15,0

Low

2019–2021

Under 19,9

Substantial

Source: authors Table 2. Structural differences in coal exports and domestic consumption for the periods 2011– 2021 to year 2010,%. Year

Structural differences to 2010 year Value

Extent

2011–2013

Under 4,9

None to very low

2014–2019

Under 12,5

Low

2020–2021

Under 18,2

Substantial

Source: authors

Therefore, it can be argued that there have been practically no noticeable changes in the structure of coal mining methods. To implement the forecast for 2022 and 2023 on the indicators of coal mining and export, computer technologies were used (Gretl software package). Based on the information on coal mining and export for the period 2010–2021, a procedure was carried out to test the stable nature of time series, as well as the stable nature of model residuals according to the Dickey-Fuller test and the autocorrelation of residuals based on the Darbin-Wotson test. It was found that there is no autocorrelation in the residuals, since the observed value exceeds the critical points. Models are relevant according to the Fisher test, all coefficients in the models are relevant according to the Student t-test. After evaluating the model and testing the model residuals for normal distribution and the absence of autocorrelation, a decision is made on the possibility of using the model for forecast. The forecast estimates for coal production and export are presented in Table 3.

Structural Changes and Forecast Estimates of Coal Production

49

Table 3. Forecast estimates of coal production and exports in Russia for 2022–2023. Year

Coal mining

Coal exports

Prognosis with 95% probability average

interval

average

interval

2022

400,4

388,8–412,0

223,5

216,0–231,1

2023

406,0

393,4–418,6

233,3

222,6–244,0

Source: authors

4 Discussion The existence of a long-term strategy based on innovation plays a decisive role in the development of the coal industry. Technological improvement in the coal industry requires an innovative approach to production management. Since coal processing is an important area of development, in modern conditions, the transition to the production and export of products with higher added value is important. The process of coal enrichment, being a global trend, contributes to the expansion of the sales market. There are two areas of coal use: as fuel stem coals are used at thermal power plants and utilities; and as a chemical feedstock using coking coals for metal production. A number of authors explore innovative approaches that determine the further development of the coal industry [3–10]. The development of coal industry demands introduction of new technologies for processing, purification and use of coal: – technologies that increase methane production from coal seams; – technologies for the capture, disposal and waste management of carbon dioxide during coal burning; – technologies for converting coal into liquid or gas to improve fuel efficiency; – a shift of the mining segment of the industry from power coals to coking coals; – coal chemistry technologies for the production of innovative products. Today coal chemistry technologies are most relevant. Being unique, they are associated with the production of hydrogen, needle coke, carbon fiber, special grades of graphite, jet fuel, fire-resistant turbine oil, sorbents and more. These technologies in coal chemistry, due to the state support, serve the development of the industry. The expected gradual reduction in solid fuel consumption in the world’s leading countries does not necessarily mean the reduction of coal production rates, as is in the case with the development of power industry and industrial production in a number of Southeast Asian countries. Coal is used in the power, metallurgical, chemical, oil and gas and construction industries, providing up to 29% of the world’s energy consumption. Increasing rates of production, increasing exports and achieving high results in the development of the industry should be facilitated by technological renovation and automation of production. Coal exports are likely to be focused on Asian countries: Malaysia, Thailand, India. In this case, the export component shift to Asian countries will likely take place with an extra need for coking coal. Far Eastern and East Siberian regions with promising

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potential for expansion and mining technical capabilities should provide the increase in coal production.

5 Conclusion Today Russia is one of the leading nations in the global energy industry and an integral member of the global economic system. Taking into account its interests, while using an equal dialogue and finding compromises with other countries, Russia ensures further sustained development of the fuel and energy industries, and therefore of the coal industry and the economy as a whole. To effectively meet the emerging problems and challenges of the industry development calls for the need to enhance the information and analytical support of management decisions. The proposed information and methodological approach, which provides for the assessment of structural changes for all coal consumers using the scale of measures developed by us to test the significance of structural differences based on the integral indicator of V. Ryabtsev, can serve as a tool for management decision-making on the implementation of the state energy, environmental and social policies to create conditions for a decent and comfortable life of citizens.

References 1. Yu, BK 2022 Diagnostics of the economic security of the coal industry of the Russian federation Econ Manag Probl Solutions1(3(123)):70–77 (2022) 2. Silvestrov SN (ed) (2018) Economic security of Russia: Methodology, Strategic Management, Systems Engineering, 1st edn. RUSINES, Moscow 3. Chulyukov DS, Soldaev II, Mamonova LI (2020) Innovations in the coal industry. Actual Res 21(24):38–40 4. Yanovsky, AB (2020) Coal: the battle for the future Ugol–Russ Coal J 8: 9–14 5. Fedorov, AV (2022) The time for big coal. Ugol’–Russ Coal J 8(1157): 22–25 6. Dobrokhotova M.V (2022) Specific features of the Russian coal industry’s transition to the best available technologies. Ugol–Russ Coal J 9(1158): 34–40 7. Jewell J, Vinichenko V, Nacke L, Cherp A (2019) Prospects for powering past coal. Nat Clim Chang 9:592–597 8. Steckel JC, Jakob M (2022) To end coal, adapt to regional realities. Nature 607(7917):29–31 9. Andrianov VD (2017) Current problems of Russian energy industry and perspectives for development. Soci Econ 6:75–106 10. Lyubimova NG, Linnik YuN (2019) Competitiveness of coal generation in Russia. Ugol’ – Russian Coal Journal 5(1118): 34–38 (2019) 11. Tudor C, Sova R (2021) Benchmarking GHG emissions: forecasting models for global climate policy. Electronics 10(24):3149 12. Sokolov A, Takaishvili L (2019) Modeling the development prospects of the coal industry of Russia and its regions. Energy Syst Res 2(4(8)): 59–66 13. Takaishvili, LN (2019) Simulation models to study the development of the coal industry as energy sector component. In: Saneev B. (ed) International Conference «Regional Energy Policy of Asian Russia» 2018, E3S Web of Conferences, vol. 77, p 02004. EDP Sciences, Les Ulis 14. Zhang Y et al (2016) Residual coal exploitation and its impact on sustainable development of the coal industry in China. Energy Policy 96:534–541

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15. Dzonzi-Undi J, Li S (2015) SWOT analysis of safety and environmental regulation for China and USA: its effect and influence on sustainable development of the coal industry. Environ Earth Sci 74(8):6395–6406 16. Chistik OF (1995) Evolution of Forms of Ownership in the Economy of the Region: Theory and Experience. Publishing House of Samara State Economy Academy, Samara

Key Factors for Effective Management of Business Adaptation to Digital Transformation I. V. Kosyakova1(B)

, G. P. Gagarinskya2

, and T. G. Abdulova2

1 Samara State University of Economics, Samara, Russia

[email protected] 2 Samara State Transport University, Samara, Russia

Abstract. The relevance of the study is due to the fact that at present the problem of the transition of enterprises to work in the context of digitalization and globalization is very relevant. This is due to the fact that digital technologies are already significantly changing production processes and require new approaches to business management. The purpose of the study is to identify factors that affect the effectiveness of the enterprise management process in the process of digital transformation of its business. One of the main problems is the need to adapt to new technologies and new market conditions, which in turn requires increased competitiveness. Research methods: the main research method in the presented work is the analysis of approaches to business management in a changing digital environment. Research results: the effectiveness of enterprise adaptation depends on many factors, and in this contribution, the authors consider three key factors in the context of digitalization: modern information technologies, risk management and a flexible organizational structure. The practical significance of the study is that the presented results of management approaches, as well as a set of main risks and proposed measures to minimize them, can be used in the practical activities of a commercial organization. Keywords: Business Transformation · Digitalization · Factors · Efficiency · Enterprise Management · Information Technology · Risks

1 Introduction Conducting research on the identification of modern trends in the industrial development, it is necessary to turn to the origins of the industrial revolution. The first industrial revolution was associated with changes in the working conditions. The appearance of machines was a landmark event, which led to the transition from purely manual labor to the machine labor. That made it possible to increase the labor productivity tenfold [1]. The discovery of electromagnetic induction by M. Faraday in 1831 led to the application of electricity into the production, which was the most important step in the transition to the second industrial revolution. During this period, such branches of the national economy as the electric power industry, the petrochemical industry, the automotive © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 52–57, 2023. https://doi.org/10.1007/978-3-031-38122-5_8

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industry, etc. appeared and actively developed. The beginning of the third industrial revolution belongs to the 1960s. During this period, the production automation began to actively develop. A specific feature of this period was the transition to renewable energy sources, as well as the massive introduction of computers to enterprises to solve various production problems. The world is currently in the midst of the fourth industrial revolution. The main prerequisite for it can be the application of the Internet in all life spheres. Experts define this stage as “Industry 4.0”. This stage is characterized by 3D printing, Big Data, Cybersecurity, robots and robotics, the emergence of the Internet of things, etc. The focus was on issues related to the introduction of artificial intelligence to perform such tasks that require a quick solution and (or) reduction of monotonous work, routine operations, etc. The use of digital technologies has become a prerequisite for the effective operation of a company of any level and any sector of the national economy [2, 3]. Thus, one of the modern trends in the industrial development is the digital transformation of business. In the modern market economy, all enterprises are forced to constantly adapt to changing conditions. Businesses that want to compete in today’s dynamic markets and strive to be even more sustainable in terms of economic, environmental, social and cultural challenges must be able to respond to the ever-increasing pace of change. This may be due to changes in technology, market conditions, legislation, customer demand, and many other factors. It is obvious that modern business cannot be considered outside of digital technologies. The conducted studies show that the main trends in this direction can be the following: – the ever-increasing use of artificial intelligence, it enables the automation of organization management processes, increases the speed and quality of managerial decisions; – activation of the use of cloud technologies, which make it possible to increase the flexibility of any organization, as well as to significantly reduce the company’s costs in various areas in the field of IT infrastructure; – introduction of Robotic Process Automation (RPA) into the practice of many enterprises, this technology allows you to increase the speed and efficiency of business processes through their automation.

2 Methodology In the process of this study, the authors used general theoretical methods (these include analysis, synthesis, analogy method, modeling method), empirical methods (study of the socio-economic base, identification of management systems, identification of risks in the field of digital technologies). In the research process, information and analytical materials presented in the scientific literature of Russian and foreign researchers, as well as personal research and observations of the authors were used. Identification of key factors for effective management of enterprise adaptation to the digital transformation was carried out in three stages. At the first stage, the authors conducted an analysis of the scientific sources in the field of managerial decision-making on business development in the context of universal digitalization, and also identified the main trends in the field of

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business digitalization. At the second stage, the best solutions in the field of information technologies application for the enterprise business management system were identified. At the third stage, experimental work was completed and measures to reduce risks in the application of information technologies were proposed.

3 Literature Review Many works of modern Russian and foreign researchers are devoted to the advantages of digital business transformation. So in the work of P. Weill and S. Woerner, different methods for creating digital business models are proposed. The authors emphasize that in order to increase the company’s profit, it is necessary to trace the value chains to ecosystems. In the works of these researchers, methods of self-diagnostics of business and recommendations for its further development are proposed [4]. Analyzing the works of Yu. I. Gribanov and M.N. Rudenko, attention should be paid to the fact that they consider the digital economy as a global system created by all business entities and their resources presented on a common digital platform [5]. In other works the inevitability of application of digital technologies in the practice of almost all modern enterprises is proved. The authors analyze the concepts of “digital transformation of business” and “digital economy”, revealing the relationship and differences between them, identify the reasons for the emergence of these phenomena in Russia. In the works of contemporary researchers, we can also trace the evolution of the concept of “digital business transformation” and changes in the semantic load of its characteristics [6]. In the work of I.V. Kosyakova and I.V. Larionov, research is being carried out on approaches to managing enterprises in the context of using digital technologies. Particular attention is paid to the process of introducing digital technologies at different stages of the business formation of a newly created enterprise [7]. Thus, we can conclude that the problem of adapting a modern enterprise to the process of business digitalization is relevant and requires careful study.

4 Results Let’s consider three key factors in the conditions of digitalization: modern information technologies, risk management and flexible organizational structure. The first key factor is modern information technology (IT). Modern IT technologies can help an enterprise adapt to changing conditions faster and more efficiently. For instance, the use of cloud computing allows an enterprise to scale quickly and flexibly, as well as provide access to data and applications from anywhere in the world. The automation of processes, such as production and management, allows you to speed up the response to changes and reduce the time to complete tasks [7, 8]. Information technologies in the enterprise management system are focused on solving unstructured problems that combine methods of accessing and processing information using decision-making methods. It is proposed to present it as a system of separate control channels interconnected by common information flows (Fig. 1).

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55

Enterprise resource management (finance, purchasing, production, sales, etc.).

Customer relationship management, including records of contacts, sales and requests.

Management Information Systems

Supply and logistics management. Enterprise HR management. Database management.

Project management.

Quality control. Fig. 1. Information technologies in the control system (Source: authors).

It can also be said that information technologies in the enterprise management system are highly adaptable to changing environmental conditions, as well as user requirements. Information technology in the enterprise management system allows you to automate processes in the field of assistance in solving complex problems or a complete analysis of the selected subject area, it is an integration of management information systems and database management systems. By introducing information technologies into the practical activities of an enterprise, management gets the opportunity to choose the best solution from a variety of alternatives and arrange them according to several criteria [4–6]. The second key factor is risk management. Enterprises, operating in the conditions of market relations, face risks throughout their activities that have a different impact on the results of their work. In the conditions of the modern economy, in order to maintain their competitiveness, companies need to introduce various risk management measures into the field of their activity [2, 9]. Risk management in the context of digitalization includes a wide range of activities aimed at reducing the risks associated with the use of digital technologies and resources. Analyzing different approaches to the research issue, it is proposed to identify five basic risks associated with the use of digital technologies and offer recommendations for their reduction (Table 1). Risk management allows the enterprise to minimize potential losses and risks during the adaptation period. Given the expanded range of new threats,

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business leaders want to be sure that all risks are taken into account and correspond to an acceptable level [3, 4, 6, 10]. This can be achieved by analyzing risks, assessing potential threats and developing strategies to manage them. In addition, risk management can also help an enterprise wisely allocate its resources and prioritize during times of change. Table 1. Measures to reduce risks associated with the use of digital technologies and resources. Measures

Content

Risk identification

Analysis of existing systems and processes, as well as risk assessment associated with new technologies and solutions

Risk assessment

Determining the likelihood of a risk and its possible consequences. Risk assessment can help you prioritize risk management and plan mitigation measures

Development of risk management strategies Selection of optimal solutions, establishment of control mechanisms and identification of responsible persons for the implementation of risk management tasks Monitoring and control

Constant monitoring of changes in the environment where the organization operates, as well as checking the effectiveness of the measures taken to reduce risks. If necessary, adjust the risk management strategy to make it more effective

Training and informing employees

Training employees on how to recognize risks and how to act if they occur, informing them of the measures taken to reduce risks and how they can help in their implementation

Source: authors

With a high level of readiness of the risk management function in terms of digitalization, stakeholders can make more informed decisions in the field of risk management during the digital transformation [7]. The third key factor is a flexible organizational structure. Many organizations are focused on the best technologies they have bought, but lack skills and capabilities to properly use these technologies to create a new value or improve the existing one [11]. The main obstacle to failure or poor progress in the digital transformation is the unpreparedness of the organization. Every organization, regardless of size, market, history, tradition, location, number of employees, number of products, number of customers, understands that it needs to be more “digital” in terms of flexibility, adaptation, responding to changes in customer needs and expectations [8]. A flexible organizational structure allows an enterprise to respond faster and more efficiently to changes in the external environment. For example, using a team approach to management allows you to speed up the decision-making process and respond to changes in real time. It also takes into account

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opportunities that new technologies and digital tools provide to improve the efficiency of business processes and increase the competitiveness of the company.

5 Conclusions Overall, a flexible organizational structure can help a company to be more adaptive, efficient, and competitive in the market, which can lead the company to growth and further development. Thus, the above factors are important for the effective adaptation of enterprises to the digitalization context. These factors enable better business process management, improve service and product quality, increase the data security and privacy, improve customer interactions, help businesses mitigate risk and improve their financial sustainability, respond quickly to changes and adapt to new conditions.

References 1. Ukolov VF, Cherkasov VV, Ostrovskaya AA (2019) Adaptation of the enterprises of the real economy sector to supply chain management and digitalization in the conditions of the development of virtual relations. Int J Supply Chain Manag 8(2):1109–1116 2. Golubenko OA, Finayenova EV, Svekolnikova O, Timush LG (2019) Adjustment of the risk management system to operating conditions of trade enterprises. Bull SGSEU 2(76):54–56 3. Golovina TA, Avdeeva IL, Sukhanov DA (2022) Risk management of organizations in the digital economy. Bull Acad Knowl 48(1):55–61 4. Weill P, Woerner S (2018) What’s your digital business model? Six questions to help you build the next-generation enterprise, 1st edn. Harvard Business Review Press, Brighton 5. Gribanov Y, Rudenko MN (2021) Digital transformation of business, 2nd edn. Dashkov and Ko, Moscow 6. Zaychenko IM, Gorshcnikova PD, Lyoina AI, Dubgorn AS (2020) Digital transformation of business: approaches and definitions. Scientific journal NRU ITMO, Series. Econ Environ Manag 2:205–212 7. Kosyakova IV, Larionov IV (2013) Information and analytical system as a key element in managing the organization for selection, formation, implementation and monitoring of scientific and technological projects. Bull Samara State Univ 1(102):140–144 8. Pereslavtceva II (2019) Risk management in the context of digital transformation. REGION: Syst Econ Manag 4(47):207–209 9. Mirkovi´c V, Luki´c J, Lazarevi´c S (2020) Key characteristics of organizational structure that supports digital transformation. In: Proceedings of the international scientific conference “strategic management and decision support systems in strategic management 2019”. Subotica, Republic of Serbia. https://doi.org/10.46541/978-86-7233-380-0_46 10. Karsunceva OV, Gagarinskaya GP, Kosyakova IV (2019) Scientific and industrial cooperation as a basis for modernization of the region’s economy. Fin Econ 11(7):663–670 11. Kulaeva O, Gavrilova M, Kosyakova I, Larkina A, Shepelev V (2019) Evolution of industrial complexes: from industrial parks to science and technology parks. In: Mantulenko V (ed) Global challenges and prospects of the modern economic development, European proceedings of social and behavioural sciences, vol 57, pp 1621–1628. Future Academy, London

Modeling Sustainable Development of Industrial Enterprise in the Context of Digitalization I. A. Toymentseva1(B)

, V. D. Chichkina2

, and O. N. Denisova2

1 Samara State University of Economics, Samara, Russia

[email protected] 2 Syzran Branch of Samara State Technical University, Syzran, Russia

Abstract. The contribution deals with the issues of socio-economic development of the enterprise in digitalization context. Special attention is paid to the effective socio-economic development mechanism formation of the machine-building enterprises. The author presents the classification of social factors playing an important role in the mobilization of the company’s labor resources, affecting the production decrease overcome and sustainable economic growth achievement. The authors developed the enterprise social passport and calculated integral indicators for social status assessment of enterprises: JSC Tyazhmash. Among the range of proposed measures, the authors highlight the information exchange system creation between employees of all enterprise structural divisions with feedback, the digital BPM systems introduction ensuring effective management of internal business processes and maintaining the necessary level of all areas of enterprise economic security, including personnel. BPM systems are able to manage the internal business processes of an enterprise, improving them and monitoring by automation tools. Keywords: Digitalization · Labor Resources · Motivation · Socio-Economic Development

1 Introduction Recently the overall results of transformational in Russia do not always show a positive assessment. The problem of finding reserves for the production development, accompanied by addition-al risks of social environment instability, is becoming very relevant. The concern to the social sphere development problems of enterprises as one of the most important factors of its economic development in digitalization context has significantly increased. The enterprise business processes automation lasts for more than a decade and is represented in the various information systems and technologies introduction, particularly BPM systems. These systems have now undergone significant changes, as a large number of new digital products have appeared on the market, allowing to adapt any enterprise work to the changing external conditions. BPM systems are able to manage internal business processes, improving them and monitoring by automation tools. Scientifically based tools, methods, and management functions play a crucial role in improving the production efficiency, its competitiveness, the product manufacturer © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 58–65, 2023. https://doi.org/10.1007/978-3-031-38122-5_9

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consumer-orientation, and improving the enterprise employee life quality. Therefore, in modern conditions, the scientific and methodological foundation issues of the enterprise socio-economic development formation, the principles and methods of such development assessment level and the specific directions development, including fundamentally new mechanisms for the enterprise socio-economic development, are of particular relevance. A lot of researches were engaged in the development of methodological fundamentals for enterprise social development level determining and practical recommendations for the implementation of these methods [1–5]. Despite the variety of existing approaches, not all theoretical and practical issues are sufficiently developed at the moment, and therefore require further detailed study. Proper attention is not paid to the search for social policy development reserves in enterprises, which could become a tool for an effective mechanism formation of the machine-building enterprise socio-economic development in digitalization context.

2 Methodology The purpose of this study is the theoretical justification and development of scientific and methodological provisions for an industrial enterprise socio-economic development mechanism formation in modern market conditions. The research is based on general scientific methods, including system, structural, factor, logical and comparative analysis, methods of economic and mathematical modeling, providing a comprehensive and objective problem study. The paper uses methods of phenomena selective observation based on a sociological survey, as well as experience generalization of foreign and domestic researchers. The methodology provides a comprehensive assessment of the company’s performance, and the information BPM implementation and BPMS systems should adapt business process management for each individual enterprise [6]. This indicates that business process modeling is an individual approach for each enterprise and requires a preliminary analysis of all processes occurring in it, especially if there is a high probability of personnel risks. Foreign scientists note the need to combine two areas in the enterprise work: innovation and business process management [7]. The main goal of the enterprise social development should be efficiency (results) increase of the enterprise’s activities by improving the employee life quality by improving the social development factors. All social development tasks of the enterprise field should be aimed at achieving a balance of social interests of employees and employers.

3 Results Currently, in the economic crisis conditions, the enterprise adaptation, its further successful functioning in the market economy, requires the all resources usage including labor resources. One of these resources is social factor having great importance today in the crisis context. According to domestic and foreign expert estimates the social opportunities share accounts for 30–40% of the total reserves for production efficiency improvement. The authors propose to classify the enterprise socio-economic development factors into groups in accordance with their specific content and content, as well as their impact on the enterprise economic performance of the (Fig. 1).

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ENTERPRISE EXTERNAL ENVIROMENT ENTERPRISE INTERNAL ENVIROMENT

ENTERPRISE DEVELOPMENT SOCIAL FACTORS

Factors ensuring people labor and working capacity increase in the workplace.

The intensity of the total working time fund usage; fulfilling stressful, technically sound time limits.

Factors providing the personnel opportunity to improve education and skills.

Factors forming the employees' attitude to work and their labor activity level.

Product quality; defect rate; products and enterprises' competitiveness.

Production standards; quality of work and products produced; staff turnover rate; labor discipline; focus on achieving the best results of the entire team.

Fig. 1. The author classification of enterprise socio-economic development factors (Source: authors).

Social factors play a crucial role in the human labor motivation formation, in the mobilization of all enterprise labor resources to overcome the production decline and achieve sustainable economic growth. The potential capabilities’ contradictions of social development factors and their weak usage in the enterprise just actualize the social task to strengthen the enterprise social functioning implementation significantly. The main basis of the enterprise social development field, in our opinion, is the introduction of an enterprise mandatory social reporting system as an effective mechanism for regulating labor relations providing the enterprise socially responsible behavior increase. One of the most acceptable forms of maintaining such reports at the enterprise fully reflecting the enterprise social development state is the social passport. As part of the study, a social passport was developed, compiled on the basis of previously developed passports, with the necessary changes in their structure (Table 1).

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Table 1. Social passport of the enterprise. Basic level of enterprise social development

Advanced level of enterprise social development

Block 1. Enterprise social structure

Block 2. Discipline and remuneration

Block 3. Working Block 4. and production Enterprise social life conditions infrastructure

Block 5 Remuneration, social benefits, guarantees and compensation

1.1. Gender contingent structure 1.2. Age contingent structure 1.3. Educational structure of employees

2.1. Training programs, internships, personnel certifications 2.2. Team adaptation and professional growth 2.3. Work with young professionals

3.1. Workplace mechanization and automation 3.2. Occupational safety standards observance 3.3. Household service provision level

5.1. Employee average salary level 5.2. Labor productivity growth rate and wage growth rate ratio 5.3. Company’s profit share for social programs 5.4. Material assistance share specific weight in the social expenditures 5.5. Health and health resort expenses compensation 5.6. Travel expenses

4.1. Enterprise medical service organization 4.2. Employee life and health insurance 4.3. Mortgage lending organization 4.4. Educational loans provision

Source: authors

The integral (general S) assessment of the enterprise social state consists of structural and production indicators assessment (S1, S2, S3, S4, S5). S = W1

n  i=1

S1 /k1 + W2

n  i=1

S2 /k2 + W3

n  i=1

S3 /k3 + W4

n  i=1

S4 /k4 + W5

n 

S5 /k5

i=1

(1) where S1 – total estimated indicators characterizing the enterprise social structure; S2 – total estimated indicators characterizing the discipline and remuneration; S3 – total estimated indicators characterizing the working conditions and production life of employees; S4 – total estimated indicators characterizing enterprise social structure; S5 – total estimated indicators characterizing social benefits and compensation.

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W1, W2, W3, W4, W5 – each block specific weight of enterprise social development: k1, k2, k3, k4, k5 – the number of indicators in each block. Proportion coefficients Wi , taking into account the indicator influence degree on the integral assessment, they are calculated using the following formula: Wi =

2(N − i + 1) , i = 1, 2, ...N N (N + 1)

(2)

where N – the number of indicators taken into account; i –rannk, i = 1,2,…, N; The points are assigned by specialists-experts of the analyzed enterprises. Based on the above proposed methodology, integral indicators were calculated to assess the social status of JSC Tyazhmash. Table 2 shows the calculation of the total estimates of each block of the social state of the JSC Tyazhmash enterprise. Table 2. The total assessment calculation of the JSC Tyazhmash enterprise social status. point Each block specific weight  S1 Total estimated indicators characterizing the enterprise social structure  S2 Total estimated indicators characterizing the discipline and remuneration  S3 Total estimated indicators characterizing the working conditions and production life of employees  S4 Total estimated indicators characterizing enterprise social structure  S5 Total estimated indicators characterizing social benefits and compensation Complex assessment

Source: authors.

Block1

Block 2

Block 3

Block 4

0,13

0,07

0,2

0,27

Block 5 0,33

3

0,39

0,21

0,6

0,81

0,99

3

0,39

0,21

0,6

0,81

0,99

3

0,39

0,21

0,6

0,81

0,99

4

0,52

0,28

0,8

1,08

1,32

5,5

0,715

0,385

1,1

1,485

1,815

2,405

1,295

3,7

4,995

6,105

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4 Discussion Digital transformation of any large enterprise is impossible without the BPM systems introduction ensuring internal processes effective management, strengthening the enterprise economic security, reducing risks, including personnel risks. Thus, after a study on the personnel safety ensuring at an industrial enterprise, domestic scientists [8] came to the conclusion that in order to solve problems related to personnel management, it is necessary to introduce a transparent communication system into the studied object. Among the range of proposed measures, the authors highlight the information exchange system creation, an automated reporting and planning system providing feedback and clearly formulated goals and objectives [9]. M.S. Oborin, and L.N. Starikova note the following advantages of business process modeling: resource saving; basic and additional operations and processes time reduction; loss reduction due to staff errors; the service quality provided improvement [10]. I.A. Toymentseva, O.N. Denisova and V.D. Chichkina note the need to introduce digital products into the industrial enterprise activities [11]. The authors discussed the possibility of main models and BPM systems functions usage for the human capital management in their study [6]. They also noted the fact that the organization effectiveness depends on the building business processes rationality, the ability to adjust them in accordance with the external environment changes, which are also important in personnel work organization. Thus, D. Calegari and A. Delgado proposed a methodology for regular evaluation of BPMS providing the results quality increase of the business processes management [6]. Primarily, enterprises use digital products to plan, organize, and control all processes [12].

5 Conclusion The results obtained give an idea of each enterprise development actual level, about possible reserves for specific directions development, and those that least corresponds to the regulatory values. Being a complex system, the enterprise, in addition to its integrity, is characterized by its construction structure, its properties (parameters) as a complex mechanism, the connections between the elements within the system and the connections with the external environment. The existing mechanisms structural elements of industrial enterprises socio-economic development in Samara region were analyzed. According to the authors, in order to increase efficiency, the traditional mechanism for implementing specific areas of enterprise socio-economic development was updated by new elements and connections (Fig. 2). Based on the data obtained we can make a conclusion about the industrial enterprise socio-economic indicators taking into account new trends in the development of the enterprise’s workforce. It is the mechanism improvement of the enterprise social development by step-by-step planning and the use of digital technologies that will ensure the enterprise directional development, recognize problems of a socio-economic nature in advance, and create an objective basis for effective control and stimulation of the labor activity of employees.

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Thus, it can be concluded it becomes possible to create a model of the industrial enterprise socio-economic development that can quickly adapt the enterprise to external environmental influences, strengthening the internal potential in the economy digitalization conditions. Factors monitoring potentially affecting the enterprise socioeconomic development. The enterprise socio-economic development assessment in accordance with the proposed methodology.

Lower basic

Basic

High

The priority directions determination of the enterprise socio-economic development taking into account the existing level. Enterprise social development plan.

The event priority determination taking into account the priority direction.

The enterprise social and economic development plan changes.

The improvement tools identification of the enterprise socio-economic development mechanism.

The new indicators forecast of the industrial enterprise socioeconomic development. The next level of development.

Financial resources allocation for social events.

NO

YES

The enterprise social development program events implementation.

Analysis of the achieved results.

The obtained results are better than the previous ones.

Fig. 2. The mechanism of the enterprise socio-economic development (Source: authors).

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References 1. Nemer Y (1986) Management of the social development of the collective. Ekonomika, Moscow 2. Kharitonova EN (2008) Management of socially responsible activity of industrial enterprises as a way to increase competitiveness. π-Economy 4(61):48–53 3. Saprunova EV (2006) Methodology for determining the priority directions of social and economic development of the enterprise. VINITI RAS, Krasnodar 4. Shcherbakova EV (2018) The mechanism of management of the system of socio-economic development of the region. Bulletin of Lugansk National University named after Taras Shevchenko 3(19):68–74 5. Cherkasova SA, Kazieva Zh.N, Radzhabova DA (2016) Socio-economic aspects of sustainable development of the enterprise. Izvestiya Dagestan State Pedagogical University. Economic Sciences 10(2): 6. Calegari D, Delgado A (2018) Systematic evaluation of business process management systems: a comprehensive approach. CLEI Electronic Journal 21(2):7 7. Lotfi M, Taghaddosypor A, Shirazi B (2013) Improvement of business process management systems with knowledge management. In: 5th Knowledge Management Conference. Razi Intl. Conference Center, Tehran 8. Fedorova AE, Nesova LV (2017) Investigation of personnel risks and factors of the industrial enterprise personnel reliability. Herald of Omsk University. Series «Economics» 4:123–135 9. Fedorova A, Polents I (2016) Toxic working conditions and social policy within companies. In: 4th International Conference on Advances in Social Science, Humanities, and Management (ASSHM 2016), pp. 453–456. DEStech Inc., Lancaster 10. Oborin MS, Starikova LN (2018) Improving business processes in the organization of logistics services. Bulletin of the PNRPU. Socioeconomic Sciences 4:207–219 11. Toymentseva IA, Denisova ON, Chichkina VD (2020) Strategic management of the enterprise under the conditions of economy digitalization. In: Ashmarina, S.I., Mantulenko, V.V. (eds.) Global Challenges and Prospects of the Modern Economic Development, European Proceedings of Social and Behavioural Sciences, vol. 79, pp. 1209–1216. European Publisher, London 12. Luxford J (2023) Business process management: The backbone of successful enterprise, https://www.genpact.com/insight/business-process-management-the-backbone-of-suc cessful-enterprise, last accessed 20 March 2023

Digital Opportunities for the Development of the Russian Agro-Industrial Complex L. V. Ermolina1(B)

, E. P. Acri2

, D. A. Melnikova2

, and E. V. Alekina2

1 Samara State University of Economics, Samara, Russia

[email protected]

2 Samara State Technical University, Samara, Russia

[email protected]

Abstract. The contribution considers theoretical foundations that characterize the current conditions and development opportunities of the use of digital technologies in the agro-industrial complex. The relevance of research on these issues is justified. The authors emphasize the significance of the implementation of obtained research results in the development practice of the agricultural sector in Russia. The impact of digitalization on various areas of the agricultural sector is considered in this work, and the consequences of the digital development are analyzed. The authors studied a relationship between the digitalization level of the agro-industrial complex and the level of its competitiveness and investment attractiveness. The process of digitalization of the agro-industrial complex is considered in the context of the sanction restrictions. Based on the research results, the most promising directions for further digital development of the agro-industrial complex were proposed. Conclusions are formulated in relation to the implementation effectiveness of the digitalization process of the Russian agriculture. Keywords: Agro-Industrial Complex · Digital Technologies · Digitalization · Factors of Digitalization · Prospects for Digital Development

1 Introduction Nowadays, one of the promising directions in the economic development is digitalization of all sectors and branches, including the agriculture. To date, according to statistics, about 7.1 million people are employed in the country’s agro-industrial complex, and therefore the question constantly arises of improving the efficiency of this branch through the application of digital work and management tools, as well as the implementation of the process of continuous technological development of agriculture [1]. As part of the development of the Russian agricultural industry, concepts such as nanotechnology, biotechnology and genetic engineering have long been mastered, which made it possible to multiply the level of efficiency of functioning and development of the agricultural complex of the country [2]. However, it is worth noting that only the use of systemic tools for digitalizing the activities of the agro-industrial complex makes it possible to ensure its high profitability and transform the Russian agriculture into a competitive industry that is in demand on world markets. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 66–71, 2023. https://doi.org/10.1007/978-3-031-38122-5_10

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In this regard, digital reorientation of the functioning and management of the agroindustrial complex is indeed a priority for the development and implementation of the most advanced digital technologies. This fact is confirmed by the presence of various government and departmental projects and activities aimed at both increasing the overall level of digitalization of the industry and supporting its activities as a whole [3].

2 Methodology In the framework of this study, the methods of collection and processing of theoretical information, methods of induction and deduction, statistical and comparative analysis, as well as the method of rationalization and the formation of the results and conclusions of the analysis were used. The information and theoretical basis of the study includes legal documents of various levels, scientific papers, scientific works of international researchers, practical developments for the agricultural industry and experience of their application, as well as official statistical information in the form of data from the Federal State Statistics Service.

3 Results Nowadays, digital technologies are developing rapidly, penetrating into all spheres of the social life. Obviously, the agro-industrial complex as one of the key sectors of the national economy is influenced by the process of global digitalization too. Issues of the innovative development and digitalization of agriculture are becoming more and more significant. This is largely due to the introduction of various restrictive measures and sanctions against our country from the leading world leaders in the field of agriculture, which made it possible to clearly identify problems in the domestic agro-industrial complex, which jeopardized the country’s food security, and also hampered the process of implementing import substitution programs in branches of crop production and animal husbandry [4]. In addition, the COVID-19 pandemic that hit the national and global economies for less than three years quickly made it clear how relevant and vital digital technologies are becoming for organizing the production process without the participation of employees. In connection with the realization of the above difficulties in the further successful development of the industry, it became clear that without the digital reorientation of the functioning of the agro-industrial complex and the introduction of innovative developments at all levels of the industry management, its further effective existence and growth are simply impossible. Digitization and digital development of the industry as a whole has a significant impact both directly on the production process and on business process management in the industry. The introduction of digital technologies in the development of the industry makes it possible to significantly improve the process of information transfer at agro-industrial enterprises, increase the productivity of the industry, strengthen its susceptibility to external influences and threats, and also simplify access to a wide variety of markets for agricultural products [5]. It is also important to note that the active introduction and application of digital technologies in the agro-industrial complex makes it possible to gain access to the highest

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quality seeds, fertilizers and various production materials. This enables to increase the production significantly and improve the marketing system for the finished products. Besides, the digital transformation of this sphere increases the competitiveness level of individual enterprises in general. The digital development of the agro-industrial complex should be carried out taking into account specific features of the industry, including the use of almost inexhaustible means of labor – land resources, work with living organisms – plants and animals, the presence of spatial dispersal of agricultural production, dependence on weather conditions, as well as the seasonality of the production process and its fairly long duration. When introducing tools and elements of digitalization in agriculture, it is necessary to select those that will most clearly reflect industry specifics and smooth them, increasing the level of efficiency of the agro-industrial complex [6]. The implementation of digitalization of the Russian agro-industrial complex has a number of advantages for enterprises in the industry, among the main of which are the continuous collection and analysis of information about the external and internal environment, the integration of all levels of monitoring agro-industrial systems, reducing the environmental burden in agriculture, and increasing the efficiency of using natural resources. In addition, as a more narrowly focused positive effect from the introduction of digital technologies, one can single out the reduction of costs and waste in the production process, the reduction of downtime of production equipment, as well as the increase in productivity. The digital opportunities for the development of the agro-industrial complex of the country today are based on a number of factors that determine the level of competitiveness and innovative development of the industry (Fig. 1).

Fig. 1. Factors driving the process of digital development of the agricultural industry (Source: authors based on [7]).

Summarizing the experience of studying the current digital state of the agro-industrial complex and the prospects for its further development, it should be noted that today there is a rather slow pace of transition of the industry to the widespread use of digital tools in the production and management process. Thus, over the past few years, the number

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of digital innovative technologies introduced to agricultural enterprises, according to studies, amounted to only about 20% [8]. However, it is important to emphasize that, with all the existing difficulties with the implementation of the digitalization process in the agriculture, medium and large agro-industrial enterprises make every possible effort, and also use the greatest number of various resources to carry out digital development and transformation, since in the conditions of the modern «green» economy only digitalization tools allow us to solve tasks facing the agro-industrial complex. Given the above, it should be noted that the Russian agro-industrial complex has enormous prospects in the field of digitalization. In order to study scientific and methodological approaches to the digital development of agriculture in modern economic conditions, we have analyzed the most relevant areas of digitalization of the agro-industrial complex today. The results of the analysis are presented in Table 1. Table 1. The most relevant areas of digital development of the Russian agro-industrial complex. Direction of digital development

Direction characteristic

Use of precision farming and animal husbandry systems

A system of technologies and digital tools that allow to carry out the processes of control and management of production processes

Expanding vertical farming

Cultivation of products in a limited space with a controlled environment and the use of digital technologies

Application of artificial intelligence

Using digital technologies to automate routine processes in agriculture

Implementation of a digital agrometeorological data service

High-tech meteorological installations allow real-time recording of a variety of agricultural indicators

Use of unmanned aerial vehicles

UAVs are used for planning and the most efficient implementation of field and sowing work

Tracking of agricultural machinery

A digital technology system that optimizes the use of agricultural machinery

Big Data management

A system for analyzing large amounts of data and information that allows you to carry out planning and management processes

Source: authors based on [9]

Considering opportunities for digital development of the domestic agro-industrial complex, it is worth nothing some difficulties which hinder the successful development of the agriculture. These aspects include the lack of digital infrastructure, the rather slow updating of the legislative framework governing digitalization issues, the lack of technological platforms and pilot production farms, as well as the shortage of qualified personnel in the industry and the lack of effective information technology protection systems. Based on the foregoing, it should be noted that the study of digital opportunities for the development of agriculture is the most promising direction that ensures an increase in the efficiency of the industry.

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4 Discussion A considerable number of various studies and scientific works are devoted to the issues of digital development of the national agriculture [10]. The issues of the impact of on the competitiveness of the agricultural industry are reflected in the works of E.A. Skvortsov, E.G. Skvortsova, I.S. Sandu, and G.A. Iovlev [10], as well as a number of other researchers. In their works, they note that the further development of the agricultural sector is impossible without the use of digital technologies. In addition, A.A. Aitpaeva paid key attention to issues related to links between the digitalization process and the competitive advantages of agribusiness enterprises [11]. In addition to the existing theoretical and practical developments in the sphere of digital development of the agro-industrial complex are significantly influenced by the presence of various government programs [12–14], as well as a number of regional programs and measures to support the digital development of the country [15]. It is also important to say that the unlimited needs of the population for quality food products are a prerequisite for increasing the volume of agricultural production, which is currently simply impossible without extensive and widespread digitalization of the agro-industrial complex.

5 Conclusion Based on the study, several main conclusions can be drawn: 1. The agro-industrial complex is the most important sector of the domestic economy, ensuring its food security, as well as meeting the needs of the population in highquality food. 2. The agriculture has a middle level of digitalization. However, it is digital development that is the priority and most important area for improving the functioning of the industry. 3. The creation of a digital development strategy for the agricultural industry should be based on taking into account the characteristic features of the industry, as well as reflect factors of its competitiveness, efficiency and innovative attractiveness. 4. During the study, the most relevant and effective tools for the digital development of the agro-industrial complex were identified and proposed, including big data management, the use of artificial intelligence and robotics, the expansion of alternative farming, tracking agricultural machinery, and so on. Each of the proposed tools can significantly improve the efficiency of the industry, however, it is necessary to correctly implement the above tools in the production process. 5. The digital development of agricultural sectors has enormous prospects and development opportunities, despite all the existing limitations and difficulties, which at the first stages can both slow down the digitalization process and act as a significant impetus in the development of domestic digital technologies in the agro-industrial complex.

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References 1. Federal State Statistics Service, https://gks.ru/bgd/regl/b21_38/Main.htm, last accessed 06 April 2023 2. Dobrovlyanin VD, Antineskul EA (2022) Digitalization is developing: the level of digitalization in Russia and the prospects for sustainable development. Digital Models and Solutions 1(2) 3. Varich MI (2020) Digitalization of agriculture within the framework of the project for the development of agriculture in the Russian Federation until 2025. Young Scientist 2(292):354– 357 4. Leushkina VV (2022) Digitalization of the agro-industrial complex: the main element of increasing the competitive innovative development. Issues of Innovative Economics 12(4):2329–2340 5. Godin VV, Belousova MN, Belousov VA, Terekhova AE (2020) Agriculture in a digital era: threats and solutions. E-Management 3(1):4–15 6. Vartanova ML (2019) Digital transformation of the Russian agro-industrial complex in modern conditions. Journal of Economics, Entrepreneurship and Law 9(4):301–310 7. Mulyarec SA (2021) Specifics and problems of digital transformation of Russian agroindustrial complex. Innovation and Investment 4:315–320 8. Altukhov AI, Dudin MN, Anischenko AN (2020) Digital transformation as a technological breakthrough and transition to a new level of development of the agro-industrial sector of Russia. Food Policy and Security 7(2):81–96 9. Kosogor S (2013) Transformation of agriculture: Digital opportunities for development, https://www.secuteck.ru/articles/transformaciya-selskogo-hozyajstva-cifrovye-voz mozhnosti-razvitiya, last accessed 07 April 2023 10. Skvortsov EA, Skvortsova EG, Sandu IS, Iovlev GA (2018) Transition of agriculture to digital, intellectual and robotics technologies. Economy of Region 14(3):1014–1028 11. Aitpaeva AA (2019) Digitalization of agriculture in the context of increasing competitiveness of national agroindustrial complex. Vestnik of Astrakhan State Technical University. Series: Economics 3:56–63 12. National Project «Digital Economy of the Russian Federation», http://static.government.ru/ media/files/9gFM4FHj4PsB79I5v7yLVuPgu4bvR7M0.pdf, last accessed 20 April 2023 13. Departmental Project «Digital Agriculture», https://mcx.gov.ru/upload/iblock/900/900863 fae06c026826a9ee43e124d058.pdf, last accessed 20 April 2023 14. Strategy for the Development of an Innovative Society in RF for 2017–2030, http://static.kre mlin.ru/media/acts/files/0001201705100002.pdf, last accessed 20 April 2023 15. Kosyakova IV, Shepelev VM (2019) Institutes of accelerated innovative development of regions. Corporate Governance and Innovative Economic Development of the North: Bulletin of the Research Center of Corporate Law, Management and Venture Capital of Syktyvkar State University 4:116–125

Regional Approach to Sustainable Rural Development N. V. Polyanskova1(B)

and G. I. Belyaeva2

1 Samara State University of Economics, Samara, Russia

[email protected] 2 Samara State Technical University, Samara, Russia

Abstract. Rural areas play an important role in the region’s economy, especially in agricultural production and food security, but development inequality between urban and rural areas remains a pressing issue in many countries. If urban areas have more developed infrastructure, access to services and technology, then in rural areas this lags far behind. The sustainable development of rural-type municipal areas is an urgent topic that requires increased attention and the development of real implementation mechanisms. The purpose of the study is to analyze the mechanisms for implementing the strategy of sustainable development of rural areas of the region and develop recommendations for improving the economic and agricultural sphere in the municipal districts of the Samara region. The authors identified the following tasks: analysis of the mechanisms for implementing the strategy of sustainable development of rural areas of the region, SWOT-analysis of municipal areas of the Samara region in order to identify socio-economic problems; development of recommendations for the implementation of a set of measures for sustainable development. The basis of the contribution is the study of the mechanism for implementing sustainable development of rural areas of the region. The authors studied priority areas and proposed measures for the sustainable development of the economic and agrarian sphere in the municipal districts of the Samara region. Keywords: Effectiveness · Mechanisms · Principles · Region · Strategy · Sustainable Development

1 Introduction Sustainable rural development is a process aimed at creating favorable conditions for the economic, social and environmental development of rural areas, taking into account the needs of the present generation, without compromising the ability of future generations to meet their needs. The main principles of sustainable rural development are: - preservation and improvement of the quality of the environment, natural resources and biodiversity; © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 72–79, 2023. https://doi.org/10.1007/978-3-031-38122-5_11

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- ensuring the sustainability of the economy, creating new jobs and ensuring the social well-being of the population; - development of infrastructure providing access to services, cultural activities and institutions; - a scientific approach to solving the problems of sustainable rural development. The main objectives of sustainable rural development are: - development of the agricultural industry and improvement of the standard of living of the rural population; - improving the quality of life and ensuring access to social services; - preservation of cultural heritage and provision of opportunities for the development of culture and tourism; - strengthening the infrastructure that will provide access to services and the ability to transport products. The implementation of sustainable rural development requires the interaction of state, municipal and private structures, as well as the population, in order to form a unified strategy and action plan in this area [1]. The purpose of the study is to analyze the mechanisms for implementing the strategy of sustainable development of rural areas of the region and develop recommendations for improving the economic and agricultural sphere in the municipal districts of the Samara region. The objectives of the study included: - analysis of the mechanisms for implementing the sustainable rural development strategy of the region; - conducting a SWOT-analysis of municipal districts of the Samara region in order to identify socio-economic problems; - development of recommendations for the implementation of a set of measures for the sustainable development of the economic and agrarian sphere in the municipal districts of the Samara region.

2 Methodology The research methods for the sustainable development of the region can be diverse and depend on the goals and objectives of the research. For a complete and comprehensive analysis of the sustainable development of the Samara region, a combination of the following methods was used: 1. Statistical analysis method. With the help of statistical data and indicators, you can assess the level of development of the region, identify the main problems and trends, compare with other regions. 2. SWOT-analysis. With the help of this method, the strengths and weaknesses of the Samara region were assessed, as well as opportunities for its development and potential threats were identified. 3. System analysis method. System analysis helps investigate the relationships between different aspects of regional development and identify opportunities for improvement in general.

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3 Results To realize sustainable rural development, it is necessary to use their strengths, identify growth points and maintain priority areas. At the same time, the regional approach provides for general and special measures for different types of rural areas. In order to identify existing problems and the main directions of sustainable development of rural areas, a strategic analysis of municipal areas of the Samara region was carried out according to the SWOT-analysis. First, the authors considered strengths (S). In all municipal districts of the Samara region, agriculture has historically developed. Most rural areas of the region have a favorable economic and geographical position and good transport accessibility. Agricultural land, including pastures and arable land, occupies a significant share in municipal areas. This farmland is attractive to potential investors, both domestic and external. Most areas of the region have a favorable environmental situation, which is associated with the weak development of industrial and processing production in these areas. Infrastructure potential: average level of housing provision. Economic potential: in municipal areas there is an annual increase in the number of agricultural enterprises and farm farms. Gross agricultural output tends to grow annually. There are a significant number of private household plots in rural areas [2]. Financial potential: well-functioning activities of financial and economic services. Nest, weaknesses (W) were determined. Historical factors of the development of municipal districts, their political and legal foundations: in addition to agriculture, other development in most rural areas is poorly developed. Economic and geographical position of municipal districts: absence of developed environmental monitoring of land resources in most districts. The rural areas of the region have a continental climate with increased humidity, while there is a possibility of dry winds and droughts in the summer. Outdated soil processing technologies are used in many municipalities. External investors have the opportunity to use the land without permission, without taking into account the need to maintain the productivity of agricultural land. Natural population decline, outflow from settlement to city, «aging» of the population, a high level of urbanization of the population of the Samara region: there are a little more than 4 citizens per 1 village resident. The load ratio of the working-age population of the rural population by children, elderly and old people is higher than the urban one by 97 people, i.e. by 16.9%. In addition, there is a shortage of diagnostic and therapeutic equipment. Cultural and leisure institutions in most areas are absent, and places for recreation of the population are not built up. Low wages are a problem, and the population of most areas is employed in agriculture, an industry that is at a loss today. In this regard, qualified personnel do not seek to remain in rural areas. Infrastructure potential: lack of financial and business infrastructure institutions in many rural areas. A high share of dilapidated housing.

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Economic potential: most enterprises of municipal districts of the region are not quite profitable. The weak level of small business development in municipal areas. The low level of investment. The lack of income from the use of municipal property. The financial potential also leaves much to be desired due to an underdeveloped tax base and low tax revenues to district budgets. An increase in the expenditure part of budgets for utility bills, fuel and lubricants, salaries and landscaping only aggravates the situation. Among the threats (T) can be distinguished: - increased competition in the agrifood market; - deterioration of phytosanitary situation due to non-compliance with crop rotation and the use of pesticides; - increase of specific risks is possible in case of overproduction of certain types of products and lack of diversification in the field of grain and industrial crops; - outflow of qualified personnel; - aging of labor force; Siltation of watering systems and water bodies is also a threat. And finally, the authors determined opportunities (O). Formation of the industrial structure of the agro-industrial complex taking into account the requirements of scientifically substantiated agricultural systems. Production of high-quality and diverse agricultural products that meet the needs of the population and exports outside the region. For this, measures are envisaged to preserve soil fertility, restore natural resources, introduce economical technologies in agriculture, as well as attract investments for the development of livestock and agricultural processing in order to ensure stable economic development of the region. The creation of a market infrastructure designed to assist agricultural producers in the profitable sale of manufactured products. Reconstruction and restoration of watering and irrigation systems. The SWOT-analysis of municipal districts of the Samara region gives a clear idea of socio-economic problems and contributes to the development of priority areas, measures and programs aimed at achieving sustainable development of rural areas of the Samara region (Table 1). To achieve sustainable rural development, it is necessary to identify possible directions for improving intraregional rural development policies at the local level. Particular attention should be paid to areas of low economic and social development, as well as municipal areas with an unfavorable environmental situation, requiring an immediate investment of large investments to preserve and restore them.

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Table 1. Priority areas and measures for the sustainable development of the economic and agrarian sphere in the municipal districts of the Samara region. Direction

Events

Creating a favorable business climate and improving the quality and standard of living of the rural population of municipal areas

Preservation of agricultural employment in areas due to the mentality and cultural and economic traditions of the rural population. Reorientation of the rural economy to non-agricultural employment (development of tourism, folk crafts, sports, trade, information and consulting services) will create the prerequisites for expanding employment in the district [3]

Improvement of existing budget and tax legislation

Organization of dialogue and interaction of the administration of municipal districts with business representatives to clarify the factors that have a negative impact on their activities, and develop recommendations for correcting the situation

Organization of effective support in the development of small forms of business

Financing of innovation and investment projects. Assistance in obtaining funds (for example, pledges, loans, acting as their guarantor, etc.), assistance in obtaining regional, federal and other investments. Assistance in finding markets and establishing production technological links, cooperation and integration of small farms, which will increase their efficiency. Stimulating cooperation between large and small businesses. Information support of entrepreneurial activity, active introduction of Internet technologies. Active development of small forms of farming in the countryside through the creation of agricultural consumer and credit cooperatives, family enterprises. Small business development in remote rural settlements. Organization of clear control over the use of resources in the field of subsoil, forest, water and land use to prevent abuse. Prevention of unauthorized transfer of agricultural land to lands of other categories

Formation of rural credit cooperation system as a basis for Stimulating the creation of credit cooperatives, both with the small business development help of Rosselkhozbank and by opening them direct access to budgetary resources at all levels. Assistance in training specialists in microfinance operations. Support for the creation of a land and mortgage lending system Increasing the strategic role of agricultural enterprises in the agro-industrial complex of municipal districts

It is necessary to increase the efficiency of agriculture using innovative technologies, in-depth specialization and rational concentration of production in order to increase yields, productivity, agricultural production and optimize the use of resources. It is important to develop integration processes in the agro-industrial complex of regions, manage the sales process in agricultural organizations and develop market infrastructure in the agro-industrial complex. It is possible to create an agro-industrial complex management system at the district level, which will coordinate and monitor the implementation of targets for the development of agricultural production. It is also necessary to financially improve unprofitable and insolvent agricultural enterprises by restructuring debt and reforming insolvent farms

(continued)

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Table 1. (continued) Direction

Events

Promotion of food and processing industries

The development of the meat processing industry based on modern high technologies. Attracting investments to municipal districts for the construction of new and modernization of existing enterprises

Creating conditions for the conservation and reproduction of natural resources used in agriculture

Improving technological agriculture through the introduction of environmentally friendly technological solutions such as: - maximum use of agricultural land, attraction of unused arable land into circulation; - development of chemical treatment of fields; - increasing the volume of plant protection works and their more efficient implementation; - improvement of crop seed production methods, introduction of biotechnological solutions; - introduction of modern resource saving technologies and expansion of land areas for growing grain crops

Transition to agroinvasive development path

Promoting the implementation of agroinvention projects in areas. Promoting the introduction of innovative developments into production. Organization of consulting services to bring scientific developments to agricultural producers

Source: authors

4 Discussion When developing a strategy for the sustainable development of rural territories in the region, the following commonly accepted mechanisms are used: 1. Formation and development of infrastructure: creation of public and social facilities, reinforcement of road networks, improvement of water supply and sewage systems. 2. Support for production development: expansion of range and quality of manufactured products, improvement of production technologies, enhancing competitiveness of agriculture [4, 5]. 3. Development of education and culture: ensuring accessibility of education and culture for rural residents, providing conditions for creative potential of youth development. 4. Formation of local self-government system: creation of civil society structure, development of public-private partnerships at the local level. 5. Development of tourism: use of natural resources and cultural heritage to attract tourists, creation of new jobs and additional income for the local population [6]. 6. Energy efficiency development: implementation of energy-saving technologies, use of renewable energy sources in agriculture. 7. Environmental protection: reduction of negative impact of agriculture on the environment, creation of conditions for biodiversity conservation. 8. Development of small and medium business networks: creating favorable conditions for the development of small and medium-sized businesses in rural areas, generating new jobs and increasing the population’s income levels.

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9. Innovative activity development: support for innovative activity in agriculture, introduction of new technologies and methods in production [7]. 10. Attraction of investments: creating conditions for attracting investments in agriculture, including foreign investments. Implementation of proposed measures will allow to increase the efficiency of the tourism industry in the Samara region.

5 Conclusion The Samara region has a certain experience in implementing a strategy for sustainable development of rural territories, which is based on mechanisms [8] such as: 1. Creating local and municipal development plans for rural territories. These plans are designed for a long period of time and include various aspects such as economic development, infrastructure, social sphere, ecology, etc. These plans are based on the involvement of local residents, business representatives, and government agencies. 2. Attracting investments. Regional and municipal authorities collaborate with investors to attract investments in various projects in rural territories, such as agricultural development, tourism, and small business [9]. 3. Strengthening social infrastructure. Regional and municipal authorities work to improve the accessibility of education, healthcare, and culture in rural territories. This helps to preserve and attract population to rural areas. 4. Developing ecological infrastructure. The Samara region actively works to improve the ecological situation in rural territories, creating ecological parks and protected natural areas, as well as improving waste management systems and environmental pollution control. 5. Strengthening the role of small and medium-sized businesses in rural areas. Small and medium-sized businesses are the driving force of the economy in rural areas, which is why regional and municipal authorities actively support the development of these sectors by providing financial and organizational support measures. Thus, the mechanisms for implementing the strategy for sustainable rural development, as exemplified by the Samara region, include a comprehensive assessment of development, attracting investments, strengthening social and environmental infrastructure, and developing small and medium-sized businesses. The interaction between authorities and the public, as well as interregional cooperation, also play an important role in implementing the strategy for sustainable development.

References 1. Blokhin VN (2018) The importance of a sustainable development strategy for rural areas. Bulletin of the Faculty of Business and Law S1:60–66 2. Mozhaev EE, Markov AK, Zakabunina EN, Khaustova NA (2021) Mechanism for managing the sustainable development of agriculture and rural areas. Bulletin of the Catherine Institute 2(54):63–72 3. Moyle C-I, Moyle B, Burgers H (2020) Entrepreneurial strategies and tourism industry growth. Tourism Management Perspectives 35:100708

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4. Gvozdeva OV, Chuksin IV, Ganicheva AO, Ganichev VA (2021) The mechanism of managing the sustainable development of rural territories of the Lipetsk region in the cross section of their typologization: Problems and prospects of development. Moscow Economic Journal 9:68–83 5. Gorshkova NV, Shkarupa EA, Rulev AS (2020) Mechanism for sustainable rural development (based on Volgograd region). Regional Economy. South of Russia 2(8):158–170 6. Stroeva AG, Ivolga AG, Elfimova Yu.M (2021) Rural tourism as a promising direction for the rural areas development in Russian regions. Services in Russia and Abroad 5(2 and 94):110–120 7. Epshtein DB (2020) On the quantitative aspects of sustainable development of rural areas in Russia. AIC: Economics. Management 11:69–88 8. Zelenskaya IA (2019) Assessment of development of rural areas of the region. Bulletin of the Altai Academy of Economics and Law 10–3:37–44 9. Polyanskova NV, Belyaeva GI (2022) Investment potential of the creative cluster as a strategic vector for the development of the tourism and hospitality industry in the region. Bulletin of Samara State University of Economics 4(210):37–45

Inflation Processes in the Conditions of the Global Crisis K. S. Chernousova(B)

and R. M. Shilman

Samara State University of Economics, Samara, Russia [email protected]

Abstract. The contribution deals with the global problem of the economy associated with rising inflation in the context of the global crisis, which was initiated by the pandemic, and developed through the introduction of several packages of sanctions, which significantly affected not only the economy of the Russian Federation, but also other countries. Inflationary processes in the country reflect the stability and sustainability of its economy. The relevance of the work lies in the growing inflation in almost all countries of the world. Particular attention is paid to inflationary processes and their influence in the countries of the Eurozone, the Russian Federation, the USA, and the UK. These processes are accompanied by a steady rise in prices for various groups of goods and services, which in turn undermines the purchasing power of citizens, significantly affects the economy of states and international relations. Thus, on average, inflation in the OECD increased by 3.5%, while in Russia the inflation rate reaches 8%. The authors consider inflationary processes in 2020–2023 in the economically developed countries of the world and in Russia, a systematic analysis of inflation indicators is carried out, cause-and-effect relationships of these phenomena and processes are revealed. Keywords: COVID-19 Pandemic · Global Crisis · Inflation · Inflation Rate · Price Level · Sanctions

1 Introduction The COVID-19 pandemic, which began in December 2019, has left a deep mark on the economic system of all countries of the world. The economic shock, to a greater extent associated with the fall in the global financial market, had a strong impact on the economic stability of the state and society as a whole. The repeated waves of lockdowns in the world have led to stagnation in production and logistics, which has had an incomparable impact on the level of prices for goods and services. Thus, the COVID-19 pandemic has launched the strongest inflationary processes around the world, which are comparable in scale to the early 2000s [1]. Thus, in the economically developed countries of the world, since the beginning of 2020, there has been a trend towards an increase in the level of inflation. The situation worsened with the beginning of the NWO, which exacerbated the crisis and inflationary processes. This contribution investigates the main inflationary processes in the countries of the world in the context of the global crisis. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 80–85, 2023. https://doi.org/10.1007/978-3-031-38122-5_12

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2 Methodology The subject of research in this work is inflationary processes in the economically developed countries of the world and in Russia during the global crisis and international sanctions. The main objectives of the study are: – study of scientific literature on the topic; – study of Russian and foreign statistical databases reflecting inflationary processes in the world economy; – carrying out a comparative analysis of the dynamics of inflation in the economically developed countries of the world and in Russia. The theoretical basis of the study was: – international databases reflecting the dynamics of inflation rates in the countries of the world; – scientific and analytical publications of international economic organizations. The research methodology is a comprehensive analysis of data on inflationary processes occurring in the Russian Federation and in foreign countries, statistical and comparative analysis of quantitative indicators of the level in Russia and economically developed countries of the world [2]. For further research, the following concepts should be clarified: 1. Inflation is a long-term process of raising the general level of prices for goods and services. 2. The inflation rate is an indicator that reflects the change in the price level for a certain period as a percentage. It changes depending on the variation in the purchasing power of money and is the average inflation over a certain period of time.

3 Results The economy of the whole world encounters inflationary processes every second. The period from 2009 to 2019 is considered by economists as the time of record low inflation. This phenomenon is associated with the slow recovery of the economy after the 2008 crisis and slow investment activity. Also, a significant role in lowering the inflation rate was played by the policy of targeted inflation at the level of 2%, the globalization of the economy, which established close links between the financial and labor markets of different [3, 4] (Fig. 1). As for Russia, 2010–2019 also saw a period of record low inflation in the country. However, it should be noted that inflation in the Russian Federation, in comparison with the OECD, was much higher, but at the same time had the lowest level relative to 1993–2009 (Fig. 2). Based on Fig. 2, we can talk about an abrupt change in the level of inflation in the country [4]. In 2010–2013 The Russian economy was recovering from the crisis of 2008 and was marked by the active attraction of foreign capital to the country. In 2014–2016, there was a sharp increase in prices for goods and services, which was a consequence of the imposition of sanctions against the Russian Federation by a number

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Growth in % compared to the previous year 4 3 2 1 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Eurozone

Great Britain

OECD average

USA

Fig. 1. Annual inflation rate in the Eurozone, Great Britain, OECD average, in the USA 2010– 2019, in % (Source: authors based on [4]).

Growth in % compared to the previous year 14 12 10 8 6 4 2 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 OECD average

Russia

Fig. 2. Average annual inflation rate for the OECD in Russia 2010–2019, in % (Source: authors based on [4]).

of countries, which included the import of food products. This phenomenon provoked an increase in import prices and import substitution policy, which naturally affected consumer prices and inflation in general. So, 2017–2019 became a period of leveling the economic situation in the country and the establishment of domestic production, which made it possible to satisfy consumer demand and stop high inflation rates. In 2020, the situation began to change everywhere: if at the beginning of the pandemic, with a fall in demand for goods and services, inflation decreased or remained at the same level, then by the second half of 2021, inflation had reached levels comparable to those of the beginning of 2000th years and earlier. This is fully due to anti-crisis measures and state support for the population. Cash payments to citizens during the lockdown provoked an increase in demand for food products, the supply of which, in

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turn, was limited by downtime in production, which provoked a rise in prices. With the introduction of sanctions 2022–2023 against Russia, the crisis has escalated. This situation exists not only in the food market, but also in other areas of material production, where there has been stagnation and disruption of supply chains [5] (Fig. 3).

Growth in % compared to the previous year 9 8 7 6 5 4 3 2 1 -1

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21

0

Eurozone

Great Britain

OECD average

USA

Russia

Fig. 3. Annual inflation rate in the Eurozone, UK, OECD average, in the USA and in Russia 2020–2021, in % (Source: authors based on [3]).

It is worth saying that the variation in prices for different product groups is heterogeneous. For example, food prices tended to rise at the beginning of the pandemic in the range of 3 to 5% in developed countries, after the easing of quarantine measures, the growth subsided, but since June 2021, prices have gone up again. Among developed countries, the United Kingdom has become less subject to changes in the price of food – there, during the pandemic, prices increased by no more than 1.5%, and in September 2020-August 2021 they generally decreased by an average of 1%. If we talk about the situation with food prices in Russia, then since March 2020 there has been a tendency for prices to increase, first by 2–5%, from October 2020 to the same period in 2021 – by 7–11%, 2022 – 8–12%. This situation is due to several reasons: downtime in production and the food supply chain during lockdowns (non-working days); cash payments from the state to the population, through which the demand for food increases; speculative actions of economic entities of the market in relation to pricing; weak state support for food producers, whose production costs have increased [6].

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4 Discussion Anti-crisis measures, which affected almost all areas of the economy, produced qualitative changes in the economic sphere around the world. The violent reaction of the world financial market affected the level of inflation around the world, even in developed countries reaching the marks of the crisis times – the 1990s – 2000s [7]. Many factors contribute to the high level of inflation, and, accordingly, the rise in prices. The main ones can be identified as follows: - low base at the beginning of 2021, i.e. a sharp drop in demand for energy resources, as a result of which, after mitigation, there was a sharp surge in demand and provoked a simple price for these market products; - an increase in prices for commodities (in particular, for building materials) associated with the global growth in demand for housing, an increase in imports by China, the planning of the economies of developed countries to invest in long-term investments in infrastructure, as well as with speculative actions of market participants and too mild response to these actions by the central banks; - the structure of demand has changed: during the lockdowns, the consumption of goods has increased, but the consumption of services has decreased. After the easing of measures against coronavirus infection, the demand for many services has increased, but their providers have new costs that have increased the consumer cost of services [8]; - limited recovery of the work of logistics services and supply chains after the lockdown, a decrease in production and transport capacities leads to dissatisfaction with the growing demand for many commodity units. So, for example, problems with the supply of chips slowed down the production of computer equipment, electronics and cars around the world; - an increase in the unemployment rate and a shortage in the labor market associated with the closure of many organizations [9].

5 Conclusion At present, the global crisis is not losing its momentum. The fall of several leading US banks, the withdrawal of international banks from the Russian Federation, the shutdown of SWIFT, the echoes of the COVID-19 pandemic continue to have a significant impact on the state of affairs in the global economy. However, over the past three years, national economies around the world are beginning to adapt to new conditions. Therefore, inflationary processes in developed countries are uneven. Gradually, the economic conjecture returns to normal, but there are also economic downturns have a rather large scale, comparable to the crises of the late 20th century. For example, in the United States, an annual inflation rate of 5% was last seen in the 1980s. In Europe in 2010–2019 inflation did not exceed 3%, but currently this figure is close to 4.5% [10]. Since the 1990s, the inflation rate in the Russian Federation has been rather high compared to developed countries. If in 2017–2019 inflation did not exceed 5%, since the beginning of the COVID-19 pandemic, it began to grow steadily, the situation worsened in March 2022. At present, it has a level of 8.4%, which corresponds to the level of 2014– 2015, when sanctions were imposed on the Russian Federation by many economically developed countries [2].

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In conclusion, we can talk about the need to curb inflation. In most developed countries, soft monetary policy continues in order not to destroy the economic recovery that has begun, for example, as was the case in 2011 in the European Union. Although regulators plan to wind down quantitative easing programs in the future, due to high uncertainty, they are ready to put up with relatively high inflation in the short term for the sake of the stability of national economies. Most of the major emerging economies, such as Russia, Kazakhstan, and Brazil, are tightening monetary policy to fight inflation.

References 1. Krasova EV (2019) Budget mechanism of regional innovation policy in Russia: Supply chain planning, scheduling and control. Int. J. Supply Chain Manage. 8(6):507–512 2. Bessonova E, Battalov R (2019) Innovative development of the Russian economy: Formation of support mechanism based on the world’s experience. Economic Annals-XXI 180(11– 12):97–109 3. Report on the results of the expert-analytical event «Identification of the main reasons hindering scientific development in the Russian Federation: Assessment of the scientific infrastructure, sufficiency of motivational measures, ensuring the attractiveness of the work of leading scientists», http://fgosvo.ru/uploadfiles/Work_materials_disscusion/sp.pdf, last accessed 16 March 2021 4. Portal of OECD Organization for Economic Cooperation and Development, https://data.oecd. org/, last accessed 16 March 2023 5. Demenko O, Markina A (2019) Problems of financing innovative activity in Russia at the present stage. Vestnik Universiteta 1:47–50 6. Babaeva ZS (2018) An investigation into current issues in the financing of the innovative development of the agro-industrial complex. Acad Strateg Manag J 17(4):28–35 7. Karpenko L, Rachynskyi A, Dmytrenko H, Akhlamov A, Oliinyk N (2020) Innovation economy management as a factor of national security. J. Secu. Sustainab. Iss. 10(1):277–289 8. Suhvanova SH, Chernousova KS (2019) Foreign experience of tax stimulation of investment activity. Proceedings of the Institute of Control Systems 1(19):152–156 9. Smirnov VV, Semenov VL, Zakharova AN, Mulendeeva AV, Kolosova OO (2019) Analysis of innovation development factors of the Russian economy. In: SPBPU IDE ‘19: International Scientific Conference on Innovations in Digital Economy 2019, Saint Petersburg, vol. 59, pp. 1–7. ACM, New York 10. Kyurdzhiev SP, Peshkova EP, Mambetova AA (2020) Financial provision of innovative activity in the Russian economy. Smart Innovation, Systems and Technologies 138:444–454

Lean Manufacturing as a Model for the Transition to the Digital Economy A. R. Rakhmatullina1(B) , O. V. Malysheva2 and E. Yu. Bobkova4

, J. I. Minina3

,

1 Samara State University of Economics, Samara, Russia

[email protected]

2 Samara State University of Railway Transport, Samara, Russia 3 Samara University of Public Administration «MIR», Samara, Russia 4 K.G. Razumovsky Moscow State University of Technologies and Management (the First

Cossack University), Moscow, Russia

Abstract. The contribution considers the lag of the labor productivity indicator in Russia from the indicators of the most developed countries. At the same time, this problem is indicated in the national project of the Russian Federation. To this end, to successfully solve the indicated problem, Federal Centers of Competence (FCC) were created, allowing gradually improving labor productivity indicators by introducing the lean manufacturing concept. The effectiveness of such a measure is proved by the example of the Central Institutes of Labor (CIT) created at the beginning of the last century. The contribution examines classic lean production methods that allow building interrelated transformation elements within a specific enterprise, including strategic goals of the company’s management, employees as a resource of the enterprise, as well as equipment and technology, as a connecting component of all elements, reflecting the level of development of the technological structure of the economy. At the same time, due to changing technological structures, digitalization creates new approaches to classical techniques, not only developing all spheres of society, but also changing the stereotypes of doing business and understanding the effectiveness of conducting production processes. A comparison of classic and digital lean production is presented as an opportunity for further development of the enterprise, while the positive impact of lean production as a basis in the further digitalization of the company’s processes is traced. Keywords: Competitiveness · Digitalization · Labor Productivity · Lean Manufacturing · National Projects

1 Introduction The idea of national projects in the Russian Federation was initiated by the President of the Russian Federation since 2005, determining the need to develop the human potential of the country. According to the Decree of the President of the Russian Federation No. 204 dated 07.05.2018 «On national goals and strategic objectives of the development of © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 86–93, 2023. https://doi.org/10.1007/978-3-031-38122-5_13

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the Russian Federation for the period up to 2024», the concept of the country’s development was approved, which consists in the implementation of breakthrough scientific, technological and socio-economic potential, increasing the standard of living of the population, creating comfortable living conditions, increasing the number of citizens, as well as opportunities and conditions for self-realization and disclosure of the talent of each person. In accordance with this document, 12 priority areas were identified to achieve these tasks, among them: health, education, science, ecology, housing, urban environment, entrepreneurship, labor productivity, digital economy, etc. [1]. Today, in the context of intense competition between countries, the development of productive forces requires a rethinking of the understanding of labor efficiency in order to increase productivity. According to the RBC, as of 2018, Russia is about 2 times behind the most developed countries of the world in terms of labor productivity (Fig. 1) [2].

The volume of gross domestic product produced in the ecjnjmy for 1 person/hour 80 70 60 50 40 30 20 10 0 1997

2000 USA

2005

2010

G-7 - average

2012

2014

ЕС -average

2016

2018

Russia

Fig. 1. Labor productivity in Russia and other countries (Source: authors based on [2]).

That is why one of the areas of national projects is the task of increasing labor productivity through the introduction of the lean manufacturing concept at enterprises, as well as measures aimed at improving labor efficiency, including tax, financial and nonfinancial support, training and retraining of personnel, the elimination of administrative barriers, which will ensure an annual increase in labor productivity by 5%.

2 Methodology The authors studied the prerequisites for the emergence of Russian national projects caused by the country’s lag behind developed countries in terms of labor productivity, which affects the decline in state competitiveness in the global economy. The decisions

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of the state on the creation of structures introducing the methodology of classical lean production were analyzed. The results of the introduction of lean production during the period of industrialization were assessed. The impact of digitalization in the development of the enterprise by the methods of classical lean production was considered.

3 Results To implement the tasks set by the president in 2018, Federal Centers of Competence (FCC) were created. The main activity of which is the involvement of enterprises in the process of inevitable constant improvements, as well as the training of employees and specialists of enterprises to make positive changes in the future, in conditions of fierce international competition. This work is carried out in stages with comparison of planned indicators with actually achieved ones, in accordance with short-term prospects. The result of 2020 clearly characterizes the degree of involvement of enterprises in the improvement process: the number of enterprises that independently participate in the project is 36% higher than planned, while regional competence centers trained employees of enterprises over the same period almost 2 times more than the planned indicators (80%) (Table 1) [3]. Awareness of enterprises about the need to improve labor efficiency, involves not only large enterprises in the project with the support of federal and regional competence centers, but also forces the rest to independently study this issue and develop behind the best in the industry. At the end of 2020, a total of 2,290 enterprises were involved in the Program to increase labor productivity, which receive targeted support with the help of federal and regional administration, as well as independently, which is 35%, 26% and 39%, respectively. It is important to note the range of industries with the share of enterprises of their total number, which amounted to: 77.5% of manufacturing enterprises, 7% – agriculture, 6% – construction, 5% – transport, 4.5% – housing and communal services [3]. We would like to note that such large-scale work was already carried out in Soviet Russia at the beginning of the last century, so the Central Labor Institutes (CLI) were created in order to increase labor productivity, introduce plans to industrialize the state to achieve ambitious goals and tasks to overcome the country’s lag. According to [4], the success of Soviet Russia was able to achieve a record indicator of the labor productivity, over 27 years, it has been improving its own indicators of 1928 by 4–7 times, while outstripping the growth rates of leading countries by more than 3.5 times (Figs. 2 and 3) [4]. The competitiveness of enterprises in foreign and domestic markets, increasing labor productivity, optimizing the company’s costs, identifying and eliminating losses, reducing the cost of production, building a customer-oriented enterprise are all key issues of the lean manufacturing concept. Lean manufacturing is the concept of building three interconnected transformation components:

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Table 1. Involvement of enterprises in the national project to increase labor productivity. №

Indicators

plan 2020 fact 2020 Deviation, % (±) plan 2024

1

Involvement of subjects of the Russian Federation in the implementation of the national project (number of subjects of the Russian Federation), units, cumulative

43

85

+ 98

85

2

The number of regional competence centers established in 45 the constituent entities of the Russian Federation in order to disseminate the best labor productivity practices, units, on a cumulative basis

45

0

59

3

The number of participating enterprises involved in the national project through receiving targeted support, units, on a cumulative basis, including:

1 967

2 290

+ 16

6 335

3.1 - under federal administration (with the participation of the FCC), unit, cumulative;

767

804

+5

1 617

3.2 - under regional management (with the participation of the RCC), unit, cumulative;

550

604

+ 10

4 068

3.3 - independently, units, cumulative total

650

4

The number of employees of enterprises and representatives 21 821 of regional teams trained in tools to improve labor productivity, persons, on a cumulative basis, including:

882

+ 36

650

30 160

+ 38

79 500

4.1 - under federal control (with the participation of the FCC), persons, cumulative;

10 800

13 284

+ 23

25 570

4.2 - under regional management (with the participation of the RCC), persons, cumulative;

5 474

9 872

+ 80

43 328

4.3 - independently trained employees of participating enterprises, as well as executive authorities, persons, on a cumulative basis

5 547

7 004

+ 26

5 547

Source: authors based on [3]

800 700 600 500 400 300 200 100 0 1928 Industry

1940

1950

Construction

1953

1955

Railway transport

Fig. 2. Growth rate of labor productivity in the period from 1928 to 1955 (Source: authors based on [4]).

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800 700 600 500 400 300 200 100 0 1928 Russia

1937

1940 USA

1950 England

1953

1955 France

Fig. 3. Comparison of industrial productivity growth rates for the period 1928–1955 (Source: authors based on [4]).

- strategic objectives of the company; - employees of the organization; - technology. Each of the components involves a specific set of approaches and methods to improve the company’s performance in order to win more customers. 1. The strategic goals of the company imply the management’s interest in establishing interaction with subordinates, building trusting, open relationships, providing employees with the opportunity to train, develop and create a reasonable system of motivation and remuneration. The effective work of the manager is to study the production process, its transformation from PUSH to PULL system, building the optimal flow of value creation, in order to reduce the cycle time of the production process, calculate time and optimize the number of employees, and efficiently move employees. At the same time, all transformations are based on the needs and wishes of both the «external» and «internal» client. 2. Employees of the organization and workers using 5S, Kanban, TPM, SMED, 5 Whys, Kaizen improvements and other methods will be able to transform production in order to reduce the main types of losses of the enterprise. 3. The performance indicators of technology are constantly changing and improving, characterizing the degree of development of production skills and scientific knowledge both of society as a whole and of a single country. At the same time, if for the first two points it is important to track and adjust the microenvironment indicators in the mode «manager-executor», «executor-technician», then for the latter it is important to see the prospects for the macro environment level. The concept of lean manufacturing allows you to diagnose the state of existing enterprises, identify problem, bottlenecks, and take into account the positive experience of other countries in order to create some example that allows you to further standardize

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the stages of production, repeat and create similar enterprises with less losses and optimal costs. The task of increasing labor productivity is urgent, while each country determines its own development trajectory in achieving the set indicators: this will happen only at the expense of new technology or at the expense of the country’s human potential, as happened 100 years ago during the CLI period, but one thing is clear that today the sixth technological structure will not bypass the deep process of digitalization opportunities, which manifests itself in reducing losses based on digital solutions that make it possible to simplify planning, control, analysis and optimization issues [5]. The digitalization of the economy allows accelerating socio-economic processes, reflected in the next round of technological order. Thus, the Ishikawa diagram clearly demonstrates the impact of digitalization on the spheres of society (Fig. 4) [6].

ECONOM

Mobile banking

Digital transformation

INFRASTRUCTURE

Financials Вusiness

Routes for people with disabilities

Convenient routes

Remote work

On-line shopping

City

Transport Digital maps (traffic, quality, safety)

Information about the life of the city

DIGITALIZA TION OF THE ECONOMY 4.0

Faster information processing

Availability (on-line) Education

Accuracy of diagnosis Health care

Health monitoring

Production Efficiency

SCIENCE

Business Process Flexibility INDUSTRY

Fig. 4. Ishikawa diagram in the digitalization mirror (Source: authors).

However, a reasonable introduction of digitalization at the enterprise is possible if the corresponding processes are verified and optimally built. The first step of optimization is the establishment of classical lean manufacturing with a set of methods and methods of the last century, but the next step will be digital lean manufacturing, which allows using artificial intelligence, building ecosystems, and complex-functional techniques to increase the positively achieved effect of classical techniques.

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4 Discussion Thus, according to preliminary estimates, digitalization will make it possible to improve by about a third the key indicators of classical lean manufacturing approaches: reducing the production cycle, logistics costs, reducing stocks, increasing production, and increasing the efficiency of equipment [7]. Table 2 shows a comparison between classic and digital lean manufacturing. Table 2. Comparison of classical and traditional lean manufacturing. Criteria

Classic Lean Manufacturing

Digital Lean Manufacturing

Advantages

1. Reduction of 7 types of losses 2. Production alignment 3. Creating a Value Flow Map 4. Synchronizing production with consumer demand

1. Building a Digital Product Twin 2. Building Processes with Augmented and Virtual Reality 3. Management decision-making without real-time delays 4. Internet of Things and Robotization

Difficulties

1. Employee resistance 1. Technological Software Imperfections 2. Involve employees in the 2. Personnel «hunger» improvement process 3. Cyber crime 3. Regular monitoring of indicators

Source: authors based on [8, 9]

The work is interesting, which allows using regression analysis to identify the interdependence of the digitalization indicator from the lean manufacturing indicator. The experiment was carried out among 500 enterprises during 2017, the final sample was 74 results. The companies were classified by size, experience in the implementation of lean manufacturing, as well as by four key indicators of the company (clusters): operating activities, financial results, company culture, continuous improvements [10].

5 Conclusion The results of the study clearly demonstrate the success of 4 clusters, while large enterprises with about 10 thousand people are concentrated in this quadrant in more than others. At the same time, the authors clearly demonstrated that before moving on to digitalization, it is necessary to introduce and master as a standard the methods of classical lean manufacturing. Summing up the above, we would like to note that the relevance of the introduction of lean manufacturing in Russia is not a momentary desire to improve something, but a well-thought-out strategy for the further development of not only individual companies, but the entire state as a whole, on which the place of society in the world economy depends.

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References 1. Decree of the President of the Russian Federation No. 204 dated 07.05.2018 «On national goals and strategic objectives of the development of the Russian Federation for the period up to 2024», http://www.kremlin.ru/acts/bank/43027, last accessed 29 March 2023 2. RBC: Russia lagged 3.8 times behind Ireland in terms of labor productivity, https://www.rbc. ru/economics/05/02/2019/5c5872889a794725eb8d815e, last accessed 29 March 2023 3. Federal Conference Center: Annual report 2020 Federal Competence Center in the field of labor productivity, https://www.google.com/url?sa=t&rct=j&q=&esrc=s&sou rce=web&cd=&ved=2ahUKEwjp07qT59_8AhWsXvEDHczgC1EQFnoECBEQAQ& url=https%3A%2F%2Fxn--b1aedfedwqbdfbnzkf0oe.xn--p1ai%2Fdocuments%2F1061% 2F%25D0%2593%25D0%25BE%25D0%25B4%25D0%25BE%25D0%25B2%25D0% 25BE%25D0%25B9_%25D0%25BE%25D1%2582%25D1%2587%25D0%25B5%25D1% 2582_%25D0%25A4%25D0%25A6%25D0%259A_2020.pdf&usg=AOvVaw0nYnw2hzFK2dOcKJphVbp, last accessed 29 March 2023 4. Algorithm: «Crystal of growth». Increasing labor productivity in the period from 1928 to 1955 in Russia and the world, https://algoritminfo.ru/kristall-rosta-povyshenie-proizvoditel nosti-truda-v-period-s-1928-po-1955-g-v-rossii-i-mire/, last accessed 29 March 2023 5. Malysheva OV (2021) Increasing labor productivity in Russia on the threshold of industrialization and digitalization. In: Proceedings of the V All-Russian Scientific and Practical Conference «Improving labor productivity in transport – A source of development and competitiveness of the national economy», pp. 116–120. Humanitarian Institute of the Federal State Budgetary Educational Institution of Higher Education «Russian University of Transport (MIIT)», Moscow 6. Malysheva OV, Rakhmatullina AR, Minina JI (2022) Creation of an ecosystem as a modern tool for the interaction of market participants in order to reduce transaction costs. J. Econo. Entreprene. 9(146):1123–1127 7. Leventsov VA, Leventsov AN (2023) Lean manufacturing and problems of its digitalization. Modern High Technologies 1:20–25 8. Laaper S, Kiefer B (2023) Digital lean manufacturing. Industry 4.0 technologies transform lean processes to advance the enterprise, https://www2.deloitte.com/xe/en/insights/focus/ind ustry-4-0/digital-lean-manufacturing.html, last accessed 29 March 2023 9. Tropanets A, Sivax AN (2019) Main problems of implementation of the philosophy of «Kaizen» in the Russian enterprise. In: Khasaev GR, Ashmarina SI (eds) Globalization and Regional Development in the XXI Century: Development Vectors, Challenges, Innovations. Samara State University of Economics, Samara, pp 435–438 10. Lorenz R, Buess P, Macuvele J, Friedli T, Netland TH (2019) Lean and digitalization – Contradictions or complements? In: Ameri F, Stecke K, von Cieminski G, Kiritsis D (eds.) Advances in Production Management Systems. Production Management for the Factory of the Future. APMS 2019. IFIP Advances in Information and Communication Technology, vol. 566, pp. 77–84. Springer, Cham

Issues of Ensuring the Continuity of the Activities of Industrial Enterprises I. A. Svetkina(B)

, S. S. Karno , and M. D. Maltsev

Samara State University of Economics, Samara, Russia [email protected]

Abstract. This contribution deals with the issues of economic security of an industrial enterprise in terms of ensuring sustainable development and ensuring continuity of activity in conditions of economic uncertainty. Current operating activities, the degree of reliability of information about significant risks and threats, if they exist, and should they receive a proper assessment. The corresponding disclosure of information is a complex process that includes the formation of analytical data on key business processes. The most significant problems of industrial enterprises are highlighted: insufficient domestic demand for products, lack of qualified labor, lack of investments, etcetera. It is concluded that industrial enterprises have certain difficulties in carrying out current operational activities and preparing future forecasts, developing production strategies and operational plans due to the instability of the economic situation. It is determined that the guarantor of the sustainable development of an industrial enterprise is a systematic search for rational methods and unique ways to ensure economic security. To achieve the goals, anti-crisis measures, adjustment of detailed action plans and business processes, preservation of an optimal resource base, ensuring business reputation and the formation of positive dynamics of production indicators are carried out using accounting and instrumental modules of the economic security system of an industrial enterprise. Keywords: Business Continuity · Economic Security · Industrial Enterprise

1 Introduction The current stage of economic development is a time of unprecedented technological growth in various industries and an increase in demand for more advanced accounting and control systems that regulate all technical and technological processes, business structure through the mechanisms of the economic security system. The creation and further development, transformation or modernization (reconstruction) of an existing industrial enterprise (IE) is a multifaceted and rather complex task that requires taking into account all industry [1], technological, technical, organizational and financial features, because the enterprise consists of various interrelated elements. It should be noted that for our research, by the IE business process we mean a set of actions (operations) performed in a certain sequence and using a variety of resources aimed at obtaining the final product. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 94–100, 2023. https://doi.org/10.1007/978-3-031-38122-5_14

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Unfortunately, the majority of domestic IE today have morally and physically obsolete assets, production resources, technologies that do not allow maintaining the profitability of the enterprise at a competitive level. Therefore, accounting and instrumental modules (AIM) included in the enterprise’s economic security system (ESS), which coordinates modernization, transformation, search for resources, reserves, sources, and ensuring sustainability in conditions of uncertainty, are becoming increasingly in demand. Current information flows about the life of the enterprise are formed in the internal environment and provide interaction with the external environment. It is assumed that thanks to the AIM, the IE should quickly adapt to the changed current situation affecting the continuity of its activities. We consider an accounting and instrumental module that reads risks and threats, focused on the continuous renewal and growth of the production potential of the enterprise, taking into account the integral nature and external influence of economic factors. In addition, it is necessary to control all the components that form the system of economic security of the IE and are interconnected for joint functioning. «Organizational agility» is often treated as an immutable quality, implying that firms need to be in a constant state of transformation [2].

2 Methods The research is based on a systematic approach, abstract-logic, and monographic, economic-statistical methods were used. The methodological and theoretical basis of the study includes numerous regulatory legal acts of the Russian Federation regulating the activities of industrial enterprises, textbooks and articles of periodicals on the subject under study, as well as information published on websites. In the study, we decided to focus on ensuring the sustainability and continuity of the industrial enterprise. This is a common requirement of external and internal stakeholders dependent on the activities of an industrial enterprise. In this context, there is an increasing scholars’ interest in understanding to what extent capabilities to anticipate, respond and thrive in unprecedented situations represent a strategic lever for business continuity management in most sectors of activity [3]. Consequently, both the economic security system and the AIM module cannot function in fragments. Therefore, vector information flows are created. For example, the outgoing flow «from top to bottom» in the form of programs, estimates, budgets, forecast balances is compared with the upward flow «from bottom to top» in the form of statements and reports on the actual execution of tasks. The quality of the input streams depends on the output streams. Further, the streams are combined, reformatted according to the requests of significant users through constant monitoring and analysis of operational accounting data. The purpose of these analytical procedures is to ensure the necessary flexibility and adequacy of the AIM module to the strategic plans of the IE. As a result, the uncertainties of the macro- and microenvironment of the enterprise, signs of imperfection of information (incompleteness, inaccuracy, inconsistency, ambiguity, fuzziness) and the causes of process failures (irreversibility, instability, nonlinearity) are revealed. The most dangerous are the uncertainty factors of individual business processes, which are confirmed by the identified risks and threats of the external and internal environment.

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3 Results Today, organizations are forced to build resilience against numerous events that threaten the continuity of their business processes [4, 5]. Studying the work of economists on business continuity [3, 6–9], we identified various areas related to this process in the system of economic security of an industrial enterprise: - mathematical modeling of processes, models, products; - full-scale transition to the development of digital products and processes, the creation of digital production; - unified teamwork of different groups of specialists on the creation of «products» and systems in a short time; - blurring the lines between financial, accounting and engineering areas to develop high-performance solutions; - unified information and financial system for engineering support. In our opinion, the sustainability of IE activities is limited by barriers related to the qualifications and competencies of employees of an industrial enterprise, with a willingness to comply with technological changes in the industry: - technical complexity, multitasking of projects; - new qualifications, competencies, technical skills; - the need to solve diverse tasks: - access to advanced industrial equipment; - digitalization of processes; - lack of industrial/industry interaction due to the threat of unfair competition; - financing, accounting, control of changes. To overcome barriers, AIM is configured taking into account the following parameters: environmental conditions, legality, reality, completeness, validity, approval, responsibility, accuracy, resolution, classification, authority, safety, accounting, control, periodization, timeliness, and the turnover of financial flows. We have identified the following elements of the survey within the framework of the accounting and instrumental module: the subject involved in the business process and influencing the results; the object (business process, segment, element of the enterprise); the subject; the purpose of the survey; the objectives of the survey; principles; methods; technique and technology [7], tools, mechanisms; the process of AIM (stages). Today, the development of the enterprise should be aimed at: - systematization of the information array of the enterprise; - support of the economic security system by owners and management [10]; - improving the efficiency of enterprise management; - implementation of organizational integration options. We will highlight some important principles, taking into account the fact that the set of principles is not limited and expands as the study of the internal and external environment of the IE: - the principle of responsibility that forms the economic, administrative and disciplinary responsibility of the subject;

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- the principle of balancing the accounting and financial aspects of the proposed module; - the principle of integration with other modules of the economic security system; - the principle of interest of the management and owners of IE in accounting and financial engineering; - the principle of complexity and synchronization of all modules of the IE economic security system; - the principle of continuous development and improvement to achieve strategic goals, etc. Risks may arise for the following reasons: loss of financial stability of the IE during the economic crisis; inexperienced and unstable management, competition, unavailability of skilled labor, accidents, interruptions in production resources, etc. [4]. The use of AIM tools allows you to bring many types of risks to an optimal and even minimal level. From the point of view of accounting and translating the facts of economic life into monetary terms, risk is the mathematical expectation of losses that reduce the level of the financial situation of the enterprise, the financial result and redistribute financial flows (operational, investment, financial). And in conditions of uncertainty, a sequence of identification of the facts of economic life should be developed from the position of drawing up a risk matrix. Firstly, the following situations are calculated: - the onset of adverse events in the world, in the country, in the region, affecting the industry; - there is no possibility of forecasting the result of transactions, operations; - reducing the level of control, both external and internal. Secondly, an inventory of all business processes is carried out in order to identify deformations and at the same time hidden reserves, since the process of threat and risk must be blocked by security processes. Any element (people [3], resources [4]) of the external and internal environment of the IE can be read simultaneously in four forms: – – – –

the subject (means, mechanism, method) of ensuring economic security; security facility; source of risk, threat; the object of risk, threat.

The main requirements for working with risks are formed in the local act «Risk Management Policy», which describes in detail the algorithm of actions of employees at various levels. An enterprise is exposed to risks-such as acts of terrorism, natural disasters and utility failure – which may disrupt operations, disaffect customers and compromise business credibility and revenue streams [9]. The multilevel information used in the integrated AIM process must be documented and meet the requirements of reliability, have clear logical relationships. Let’s clarify the standard information levels: – – – –

the level of owners, partners, shareholders; the level of the board of directors, the management of the enterprise; the level of the organizational structure and management system; the level of architecture of business processes and their components;

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– the level of current activities in accordance with approved strategic plans, budgets, estimates; – the level of accounting, control, analysis, and economic security. But it is necessary to take into account the uncertainty of the initial information, since the parameters of the IE are constantly changing under the influence of the external and internal environment. The integrity and coverage of business processes by AIM mechanisms reduces the chances of making incorrect management decisions due to the rapid identification and assessment of possible risks in each sector of an industrial enterprise. The decision-making process based on criteria (intensity, risk, effectiveness, product, profitability) becomes more conscious and justified. The methods used in the AIM module directly depend on the nature of accounting, financial and analytical operations, characterized by a wide variety: comparison, comparison of factors according to classification, business process survey, observation, surveys, etc. AIM technologies take into account that IE is a complex object that includes strategies, business processes, technologies, functions, resources, and information flows. It should work as a single well-coordinated mechanism due to a clearer and stricter organization, accounting, control and financing of business processes. Therefore, one of the main tasks of the AIM is forecasting, monitoring, inventory of existing business processes and their analysis. The AIM process is carried out in three main stages [7, 10]: 1. Setting specific goals with specific parameters, time limits, key indicators. The clarity and certainty of forecasting and preventive actions are focused on the level of the entire enterprise, further on the level of divisions, services, departments, individual employees by analogy with the requirements for internal control. 2. Comparison of business process performance indicators with those specified in the model and determination of the scale of permissible deviations. With the help of AIM tools, all deviations are identified and ranked according to the principle of materiality. 3. Measurement of the results of the work of the IE to adjust business processes through the mechanisms of the AIM, which provide information support to the economic security system. At each stage, the life cycle of the enterprise is tested and the stage is determined: organization (origin) of the enterprise, acceleration of growth, deceleration of growth, maturity, decline, extinction. Comparing the results of the identified stage with the specified standards, the specialists of the AIM have the opportunity to choose options for ensuring the continuity of activities: changing some internal parameters of the system; changing standards, preventing an unbalanced state in order to preserve the potential or non-interference in the operation of the system. The level of influence of AIM on the activities of an industrial enterprise is very high, since it coordinates the movement of material, financial, human and information resources.

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4 Discussion Deteriorating economic conditions, an extremely difficult business environment and the level of uncertainty about future earnings over the next 12 months in many cases make the assessment of business continuity by management an extremely difficult task. In the array of accounting and analytical information should be recorded: – key contacts and customer base; – communication chain, including suppliers, customers and employees; – processes for tracking and transmitting information about the state of the business and employees. To determine the current state of the information technologies used in the company and the ability to support remote work in all aspects, including communication and documentation support of customers, suppliers, employees, IT is necessary to evaluate IT systems, including databases of accounting and analytical data and reference books, for a number of key factors of work: the degree of their use; the efficiency of use and the degree of complexity of working with them; implementation and support rules; operating mode; measures to restrict unauthorized access; checking the integrity and consistency of data; ability to save and restore data. The circumstances in which many economic entities found themselves may have increased the risk of fraud [10]. Economic entities had to quickly change the way they operated, including changes in the control system, which could lead to increased opportunities for fraud.

5 Conclusion With the development of digital technologies and the explosive growth of information volumes, AIM should provide effective analytical support for managerial decisionmaking. At the same time, information about the fact of economic life has a certain digital weight, but it can either have any value or have no value for a particular employee. And therefore, AIM cannot be used inefficiently at a low level of corporate culture. It is necessary in practice to maintain a sense of security among employees and the inevitability of punishment in the implementation of unfair actions. The outline of the norms of behavior of employees at all levels is formed through the following local acts: AntiCorruption Policy; Code of Corporate Ethics; Enrichment schemes with signs of illegal actions; Unscrupulous market participants; Recommendations for recognizing typical fraudulent schemes; Job offers with signs of illegal ones. Due to the operational properties of accounting and instrumental modules, key digital tools, the overall ability of the enterprise to carry out continuous corrective actions in accordance with modern technology development and emerging new competitive conditions in the industry is achieved. Therefore, to ensure the economic security of an industrial enterprise, advanced business analytics tools are required based on the processing of operational and statistical data, intelligent analysis and optimization modeling.

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References 1. Decree of the Government of the Russian Federation dated 06.06.2020 N 1512p «On approval of the Consolidated Strategy for the Development of the Manufacturing Industry of the Russian Federation until 2024 and for the period up to 2035», https://sudact.ru/law/rasporiazhenie-pravitelstva-rf-ot-06062020-n-1512-r/svodnaiastrategiia-razvitiia-obrabatyvaiushchei-promyshlennosti/, last accessed 20 April 2023 2. Sahebjamnia N, Torabi SA, Mansuri SA (2015) Integrated business continuity and disaster recovery planning: on the way to the sustainability of the organization. Eur J Oper Res 242(1):261–273 3. Bendul JK, Nolman M (2016) The human factor in the planning and control of production: taking into account human needs in automated decision support systems. Int. J. Prod. Technolo. Manage. 30(5):346–368 4. Soufi HR, Torabi SA, Sahebjamnia N (2019) Developing a novel quantitative framework for business continuity planning. Int J Prod Res 57(3):779–800 5. Teece D, Peteraf M, Leih S (2016) Dynamic capabilities and organizational agility: Risk, uncertainty, and strategy in the innovation economy. Calif Manage Rev 58(4):13–35 6. Alesi P (2008) Improving the sustainability of the entire enterprise by integrating business continuity capabilities into everyday business culture and technology. J. Bus. Contin. Conting. Plann. 2(3):214–220 7. Arkhipova TV, Sidorenko MG (2022) The impact of digitalization on the sustainability potential of an industrial enterprise. Creative Economy 16(6):2221–2238 8. Buzzao G, Rizzi F(2023) The role of dynamic capabilities for resilience in pursuing business continuity: An empirical study. Total Quality Management & Business Excellence, https:// doi.org/10.1080/14783363.2023.2174427?journalCode=ctqm20, last accessed 20 April 2023 9. Gibb F, Buchanan S (2006) Basis for business continuity management. Int J Inf Manage 26(2):128–141 10. Consultant: Organization and implementation by an economic entity of internal control of the facts of economic life, accounting and preparation of accounting (financial) statements, https://www.consultant.ru/document/cons_doc_LAW_156407/, last accessed 20 April 2023

Support Measures for Digital Transformation Projects in the Russian Manufacturing Industry A. A. Chudaeva(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. One of the national development goals of the Russian Federation is the digital transformation of manufacturing enterprises. In order to achieve it, such digital technologies as artificial intelligence, new production technologies, robotics and sensorics, new internet communication technologies, internet of things, virtual and augmented reality technologies should be introduced in these enterprises. At present, there is not a high rate of incorporation. To accelerate this process, the government is implementing financial and non-financial support measures aimed at reducing the impact of existing costs on the development and implementation of digital technology projects. Financial measures include preferential loans, grant support, and non-financial measures include access to the «Efficiency.rf» platform, creation of state structures that provide various services on a non-repayable basis to the enterprises interested in implementing digital technology projects. But in most cases, measures aimed at supporting manufacturing enterprises are available to large enterprises. For small and medium-sized enterprises, the amounts of project co-financing and/or the minimum amounts of loans and/or credits granted do not correspond to their capabilities (in the case of minimum loans/ credits, to their needs). This barrier to digital inclusion in the manufacturing sector can be overcome through support measures for the companies engaged in the development and implementation of digital technologies. These measures should aim to reduce the cost of acquisition and adoption of digital technologies by user enterprises, customers. Keywords: Digital Technologies · Digital Technology Projects · Digital Transformation · Investments · Manufacturing Enterprises · Support Measures

1 Introduction Manufacturing industry of the Russian Federation in accordance with OK 029–2014 (KDES Ed. 2). All-Russian Classifier of Types of Economic Activities (approved by Order of Rosstandart No. 14-st dated 31.01.2014) (ed. Dated 29.12.2022) [1] is represented by 24 types of economic activities. One of the national development goals of the Russian Federation, according to Decree of the President of the Russian Federation of 21.07.2020 No. 474 «On National Development Goals of the Russian Federation for the period until 2030» [2] is the digital transformation of manufacturing enterprises, © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 101–108, 2023. https://doi.org/10.1007/978-3-031-38122-5_15

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which gave rise to the development of the Strategic direction in the field of digital transformation of manufacturing industries [3]. This direction envisages the introduction of digital technologies into the activities of manufacturing enterprises, such as «artificial intelligence, new production technologies, robotics and sensorics, new communication Internet technologies, Internet of things, virtual and augmented reality technologies» [3, p. 2].

2 Methodology Methods used in this study include description, analysis, synthesis, comparison. The materials for the study are the legal acts regulating the digitalization of manufacturing enterprises, as well as data from open sources on the current level of implementation of digital technologies in the manufacturing enterprises of the Russian Federation and programs to support projects aimed at the digital transformation of these enterprises.

3 Results The current level of application of digital technologies by manufacturing enterprises can be judged from the statistical analysis carried out by the Institute of Statistical Research and Knowledge Economics of the Higher School of Economics. The percentage of manufacturing enterprises using digital technologies in 2020–2021 of their total number is shown in the graph (Fig. 1). According to the data presented in Fig. 1, the percentage of enterprises using digital technologies is low, the increase in these values in 2021 as compared with 2020 for most technologies is observed, but it is also small. At the same time, the internal costs of manufacturing enterprises for the creation, distribution and use of digital technologies and related products and services have increased by 1.5 times: from 152.2 billion rubles in 2020 to 228.2 billion rubles in 2021 [4]. External costs (third-party payments) of manufacturing enterprises for the creation, distribution and use of digital technologies and related products and services are 3 times lower at the end of 2021. In 2021 they amounted to 78.1 billion rubles, which is only 4.83% higher than in 2020 – 74.5 billion rubles [4]. The manufacturing enterprises spent 53.7 billion rubles on software acquisition, adaptation and upgrading in 2021, which is almost 2 times more than in 2020, when this value was equal to 28.2 billion rubles. And by the end of 2021 they spent 2.6 times more on Russian software, its adaptation and upgrading in comparison with 2020 which resulted in an increase of the share of expenditures on Russian software in the total expenditures on purchase and lease of software from 30.4% in 2020 to 38.8% in 2021 [4]. The data for 2022 are not yet available. But it is obvious that the share of domestic software costs will increase due to the withdrawal of foreign developers and suppliers from the Russian market, as well as the RF course for import substitution and technological independence. The introduction of digital technologies in the manufacturing industry requires investments, the effectiveness of which is determined by taking risks into account. Their level due to uncertainty increases in an unstable geopolitical situation, which leads to higher profitability requirements for investors. In addition, digital technologies are

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3.3 3.8 "Digital twin"

5.2 5.7

5

3.6 3.9

12.9 12.3 Geoinformation systems

10

Artificial intelligence technologies

11.1 13.4

15

Data processing centers

16 14.5

15.8 17.6 Internet of Things

20

17.2 19

16.5 19.3

25

Industrial robots/ automated lines

27.1 28.9 Cloud services

30

26.5 29.9

35

Technologies for collecting, processing and analyzing big data

expensive and the labor involved in their development, implementation and maintenance is high. The high investment costs lead to a long payback period for such projects. Due to these circumstances, there are support measures available to the manufacturing industry for the implementation of digital technology projects at the national level.

2020

2021

Additive technologies

Digital platforms

RFID-technologies

0

Fig. 1. The use of digital technology in the manufacturing industry in 2020–2021, as a percentage of the total number of organizations (Source: author based on [4]).

One such measure is the provision of soft loans as part of the Digital Economy of the Russian Federation program (the Digital Technology Project). According to Decree of the Government of the Russian Federation of December 5, 2019 N 1598 «On approval of the Rules for granting subsidies from the federal budget in order to provide preferential lending for digital transformation projects implemented on the basis of Russian IT solutions» [5], subsidized loans ranging from RUB 5 million to RUB 5 billion for projects and from RUB 500 million to RUB 10 billion for the program, which are considered as a set of projects, are provided through authorized banks for digital transformation projects based on Russian digital solutions, under the conditions presented in Table 1. Since the launch of the Digital Economy of the Russian Federation (Digital Technology Project), 157 projects worth almost RUB 77 billion have received soft loans. By the end of 2024, it is expected to reach the RUB 100 billion mark [6].

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Table 1. To whom and under what conditions preferential loans are granted as part of the program «Digital Economy of the Russian Federation» (the Digital Technology Project). Potential grant holders

Terms of granting

customers for implementation

5% per year

IT companies and integrators to implement developments for their own needs R&D companies

3% per year

Source: author

From 2023, loans of between RUB 2 billion and RUB 10 billion will be available for priority production projects. An applicant can apply for a loan from an accredited commercial bank at a preferential rate of 0.3% of the key rate + 3% [6], and the Industry Development Fund, which implements this support measure as part of the cluster industrial platform, will reimburse the bank for lost income from the budget. The state also provides concessional loans to manufacturing enterprises. This support measure is implemented by the Industry Development Fund, which finances the creation of new production facilities and the modernization of existing ones on preferential terms, including the use of digital technology. Only manufacturing enterprises belonging to the following types of economic activities cannot take advantage of loans from the Industry Development Fund: food production (with the exception of biotechnology and therapeutic feeding), beverage production, tobacco production, printing activities and copying media, production of coke and petroleum products (funded under the EPF Environmental Projects program, production of nuclear fuel). Only economic activities with the numbers of classes according to 10, 11, 12, 18, 19, 25–28, 30, 33 are financed under the Transport Engineering Projects Program [7]. Currently, the fund supports 10 funding programs. The Digitalization of Industry program, which has existed since the foundation of the fund in 2014, is not among these 10 programs from 2023. Loan amounts to the DIF range from RUB 5 million to RUB 20 billion, with interest rates ranging from 1% to 3% (the exception is the Component and Resource Base Program, which has a rate of 5%). The rates are lower in the case of acquisition of domestic equipment and software. The maximum repayment period depends on the program and varies from 2 to 15 years [7]. At present, due to the current geopolitical situation and the state policy resulting from it, priority is given to enterprises launching import-substituting products. Also under four programs («Development projects», «Components», «Productivity», «Forest industry projects»), the Industry Development Fund provides loans at the same rates as the main programs of the Fund for regional projects through regional industrial development funds in the ratio of 90% - federal funds, 10% - budgets of the RF subjects. The government also provides grant support for manufacturing companies to implement digital technology projects. Grants can cover up to 80% of project costs. This support measure is implemented in accordance with the Resolutions of the Government of the Russian Federation No. 550, 554, 555 of 03.05.2019 [8–10]. The grant support operators are such foundations as: The Russian Information Technology Development

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Fund, the Foundation for Assistance to Innovations, and the Skolkovo Foundation. Since the programs have been in effect, grants worth over 20 billion rubles have been issued by the three operators in total [6]. Table 2 shows how much grants can be received under this program, for what and to whom. The Skolkovo Foundation, together with the Ministry of Industry and Trade, has launched a program to support small and medium-sized electronics design centers, which provides not only grants, but also marketing, mentoring and expert support. Since May 2022, in order to help Russian manufacturers integrate into the supply chains of major corporations, develop new market niches and displace or fully replace foreign manufacturers, the Centre for Engineering and Innovation has been implementing a grant initiative for technology companies, the Supplier Development Program, whose key feature is customer focus. Grants ranging from RUB 25 million to RUB 250 million can be awarded to technology companies to refine or create new products to meet the requirements of a particular customer corporation, which is directly involved in all stages of program implementation, from project selection to acceptance of the results. The maximum financing period is 3 years, and the project implementation period is no longer than 6 years from the start of financing. The money can be used for R&D, testing of new products, creation, expansion, modernization of production, production of a pilot batch of new products, certification, pilot operation of the solution at the customer’s premises. Non-financial support measures for manufacturing companies include the «Efficiency.rf» platform, a project of ANO Digital Productivity Technologies. It is developed as part of the Productivity national project: Ministry of Industry and Trade, Ministry of Economic Development and Ministry of Digitization with the aim of reducing barriers to digitalization for industrial companies. On the «Efficiency.rf» platform, Russian industrial manufacturing companies (exceptions – oil, gas, alcohol) with a share of tax residents of foreign countries in the authorized capital not exceeding 50% and revenues from 400 million roubles per year, participating in the national project «Productivity Improvement», have the opportunity to use a set of services to solve digital transformation tasks at the expense of the state budget. But even if a company does not meet all the criteria – it can be registered on the platform due to the individual approach to reviewing applications. Platform experts will help determine the digital maturity of the enterprise, develop an overall digitalization plan, select software products and receive government support, plan implementation, staff training program and more. The platform provides an up-to-date list of Russian digital solutions and services that have already demonstrated themselves in production and can be recommended for implementation. The non-financial support measures should also include various state structures which provide advisory services to enterprises. These are My Business centers, regional structures that operate, as a rule, on a one-stop-shop basis and are aimed at facilitating the implementation of investment projects, including innovative ones, in the territory of the RF subject (for example, in the Samara region, such structures include the Samara Region Investment Attraction Agency Fund, the Samara Region Innovation Fund, the Samara Region Investment Promotion Agency and others.

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Table 2. Terms of grant support Russian Foundation for Information Technologies Development, Foundation for Assistance to Innovations, Skolkovo Foundation. Operators of grant support measures

Grant size

What the grant is given for

Potential grant holders

Russian Information Technology Development Fund

up to 6 billion rubles

for projects included in the list of especially significant by decision of the government commission

Companies for projects to implement Russian IT solutions

Foundation for the Assistance to Innovations

up to 20 mln. Rubles

for development of new To small companies, products and digital startups and services within the individuals framework of several tenders

Skolkovo Foundation

20 to 700 million rubles

Implementation of new, previously non-commercialized, Russian-developed IT solutions, included in the list of especially significant by the decision of a government commission

Russian organizations whose projects are included in the list of particularly significant projects approved by the Presidium of the Government Commission on Digital Development and the Use of Information Technologies to Improve the Quality of Life and the Business Environment

20 to 100 million rubles

projects for approbation of artificial intelligence in priority industries according to the Decree of the Government of the Russian Federation No. 767 of 21.05.2021

Russian legal entities (customers), performing the transformation of technological or business-processes in Russian legal entities (customers) who transform technological or business processes in their activities and developers – Russian legal entities, owners of exclusive rights to the product

Source: author based on [11–15].

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4 Discussion Digitalization projects in the manufacturing industry have resource constraints that hinder the widespread adoption of digital transformation in Russian enterprises. A key constraint is funding. Large investments are needed to implement digital technology projects. Part of the funds for the implementation of digital transformation projects can be obtained from the state in the form of various support measures provided both on a grant basis (grants) and on a fee basis (preferential loans and soft loans). However, in most cases, measures aimed at supporting manufacturing enterprises are available to large enterprises. For small and medium-sized enterprises, the amounts of project cofinancing and/or the minimum amounts of loans and/or credits provided do not match their capabilities (in the case of minimum loan/loan amounts, the needs). This barrier to digital inclusion in the manufacturing sector can be overcome through support measures for companies engaged in the development and implementation of digital technologies (including those already in place). These measures should aim to reduce the cost of acquisition and adoption of digital technologies by user enterprises, customers. Nonfinancial support measures are also aimed at reducing costs. They save digital-oriented enterprises various paid services through the possibility of obtaining these services free of charge by the state. The receipt of such services increases the competence level of employees involved in digital projects, which leads to an increase in the number of specialists in this field. This, in turn, tends to reduce the costs of enterprises in the long run. The digital transformation of manufacturing enterprises seems to be a promising area for their development because existing support measures, including those aimed at import substitution policy, and the focus on technological sovereignty of the Russian Federation will make it cheaper to introduce digital technologies for those who are not the first in this field.

5 Conclusions Digital technologies are being introduced in the Russian manufacturing industry, but at a slow pace, due to the long period of return on investment in such projects and the high degree of uncertainty in which enterprises operate. Enterprises do not always have their own financial resources to implement such projects. The government is implementing a set of measures to support digital transformation projects in the Russian manufacturing industry, both financial and non-financial, in order to reduce the impact of existing negative factors hindering the development of the manufacturing industry in the Russian Federation.

References 1. OK 029-2014 (KDES Ed. 2). All-Russian Classifier of Types of Economic Activities (approved by the Order of Rosstandart from 31.01.2014 N 14-st) (ed. from 26.07.2022), https://www.consultant.ru/document/cons_doc_LAW_163320/, last accessed 8 May 2023 2. Decree of the President of the Russian Federation of 21.07.2020 No. 474 «On National Development Goals of the Russian Federation for the period until 2030», http://www.kre mlin.ru/acts/bank/45726, last accessed 8 May 2023

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3. Order of the Government of the Russian Federation of 06.11.2021, No. 3142-r, http://static. government.ru/media/files/Yu4vXEtPvMyDVAw88UuBGB3dGEr6r8zP.pdf, last accessed 8 May 2023 4. Abdrakhmanova G, Vishnevskiy K, Gokhberg L (eds) (2023) Digital economy indicators: 2022: Statistical digest, 1st edn. HSE, Moscow 5. Decree of the Government of the Russian Federation of December 5, 2019 N 1598 «On approval of the Rules for granting subsidies from the federal budget in order to provide preferential lending for digital transformation projects implemented on the basis of Russian IT solutions» (as amended and supplemented), https://base.garant.ru/73210294/?ysclid=lhn msyzb9h990323928#friends, last accessed 8 May 2023 6. VC: Digitalization with state support, https://vc.ru/zyfra/684891-cifrovizaciya-s-gospodder zhkoy?ysclid=lhnbwnydeb857386329, last accessed 8 May 2023 7. Industrial Development Fund: Opportunities for project financing and support, https://frprf.ru/ upload/iblock/0ff/e80vh5106zc5kj67osru5y6tqmmbz7h1/frp_presentation.pdf, last accessed 8 May 2023 8. Resolution of the Government of the Russian Federation of 03.05.2019, No. 550 (ed. 22.11.2022) «On approval of the Rules for granting subsidies from the federal budget to the Russian Information Technology Development Fund to support projects for the development and implementation of Russian IT solutions», https://base-garant-ru.turbopages.org/ turbo/base.garant.ru/s/72240584/, last accessed 8 May 2023 9. Resolution of the Government of the Russian Federation of 03.05.2019 N 554 (revised on 06.04.2022) «On approval of the Rules of granting subsidies from the federal budget to the federal state budget institution «Fund for Assistance to Small Innovative Enterprises in Science and Technology» to support projects of small enterprises on development, application and commercialization of Russian digital solutions», https://www.consultant.ru/document/ cons_doc_LAW_324049/?ysclid=lhnxuzmkaa877172867, last accessed 8 May 2023 10. Resolution of the Government of the Russian Federation of 03.05.2019 N 555 (ed. of 02.07.2020) «On approval of the Rules of granting subsidies as part of support for projects to transform priority sectors of the economy and social sphere based on the implementation of domestic products, services and platform solutions created on the basis of "end-to-end" digital technologies», https://digital.gov.ru/uploaded/files/postanovlenie-pravitelstva-rf-ot-030 52019-n-555_19vUvnD.pdf?utm_referrer=https%3a%2f%2fyandex.ru%2f, last accessed 8 May 2023 11. Russian IT Development Fund: Grant for implementation of Russian IT solutions, https://rfrit. ru/support-measure/grants/grant-na-vnedrenie-rossiiskii-it-reshenii/, last accessed 8 May 2023 12. Foundation for the Promotion of Innovation: Programs of Foundation for assistance to innovations, https://fasie.ru/programs/, last accessed 8 May 2023 13. Skolkovo: Digital technologies, https://dtech.sk.ru/cifrovye-tehnologii/, last accessed 8 May 2023 14. Skolkovo: Competitive selection of pilot projects for approbation of AI technologies in priority sectors, https://dtech.sk.ru/files/313/prezentaciya-skolkovo_pod.pdf, last accessed 8 May 2023 15. Decree of the Government of the Russian Federation of 21.05.2021, No. 767, http://govern ment.ru/docs/all/134430/, last accessed 8 May 2023

Innovations in the Construction and Transport Sectors (Single-Industry Towns, New Logistics Routes and Urbanization)

Transport and Logistics Projects: Innovations and Development Prospects in the Digital Age I. A. Toymentseva1(B)

, T. E. Evtodieva2

, and V. D. Chichkina3

1 Samara State University of Economics, Samara, Russia

[email protected]

2 Rostov State University of Economics, Rostov-On-Don, Russia 3 Syzran Branch of Samara State Technical University, Syzran, Russia

Abstract. The contribution deals with transport and logistics projects, innovations and their implementation in the digital era. Particular attention is paid to improving transport and logistics infrastructure, the development of transport processes with the provision of a full range of services, which can be implemented through the introduction of advanced technologies such as artificial intelligence (AI), smart sensors and controllers, creating digital platforms that allow the supply chain to constantly evolve to ensure the optimization of logistics operations. Determined the directions of development of the initiative «One Belt, One Road», which is expected to create a New Silk Road, which will pass, inter alia, through the territory of Russia. Strategic goals and objectives of the development of the Northern Sea Route and the Arctic zone are presented. The authors point out the importance of creating digital platforms, which, without having their own resources and production capacity, are capable of creating new value for the consumer. The value of platform solutions is provided by the synergistic effect of all its participants. Directly in the transport and logistics industry, the effect is formed by sharing the available resources (human, technical, organizational, etc.) of all participants, implementing logistics functions in the system interaction. Keywords: Digital Platform · Supply Chain · Synergistic Effect · Transport and Logistics Infrastructure

1 Introduction Modern realities dictate new conditions for the market participants behavior in global supply chains, involving them in the international exchange process of commodity and material values facilitated by the transport and logistics infrastructure development which should be understood as a set of elements for the logistics operations implementation at the transporting products process in supply chains. Today, there is an urgent need to transform the management system of transport and logistics infrastructure elements in the constantly changing environmental factors, among which are the pandemic consequences, economic sanctions and political instability of European countries, the economy digitalization level increase. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 111–118, 2023. https://doi.org/10.1007/978-3-031-38122-5_16

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Therefore, it is important to improve the transport and logistics infrastructure, transportation processes and the entire range of services. To solve these tasks, highly qualified specialists in this field as well as technical capabilities to increase the order processing speed in supply chains and the quality of services are required. This can be done by the advanced technologies introduction such as artificial intelligence (AI), «smart» sensors and controllers, the digital platforms creation allowing the supply chain to evolve constantly in order to ensure optimal logistics operations. But before implementing digital platforms, it is necessary to think of the skills improvement of participants in the transport and logistics system [1–3]. The improvement of transport and logistics infrastructure, the design and implementation of innovative projects play an important role in achieving strategic orientations for the economy of any country. It is a necessary condition for the country’s interaction with the outside world, the basis for the implementation of foreign trade and exchange operations. All goals have a certain hierarchy, therefore, in order to achieve a high-level strategic goal, it is necessary to solve tasks and achieve lower-level operational goals, which requires high actions consistency of all participants at each level [4, 5].

2 Methodology The following methods were used in the study: the chronological method, on the basis of which the main events are considered sequentially and in dynamics. The historical approach contributes to the study of the main directions and stages of development of the One Belt, One Road initiative, and makes it possible to present their comparative characteristics. The analytical method allows you to analyze the economic benefits that will be received by all project participants. The method of system analysis allows you to establish cause-and-effect relationships between the interaction of project participants, factors that positively and negatively affect their development. The method of investment analysis made it possible to determine the priorities for the development of the investment International Transport Corridor (ITC) «North-South» and the volume of cash flows by modes of transport. Analysts have identified 3 directions for the development of the North-South ITC investment projects (Fig. 1). The largest part of the ITC «North–South» development financing is taken from the state budget of the country. Some projects for the renewal of the fleet, rolling stock, and the logistics infrastructure development can be carried out on the public-private partnership principles. The successful development of the corridor transport infrastructure is not possible without the set of measures that include consistency and unified coordination of actions of all participants in the supply chains. The transport system formation for integration processes management is based on the Norton-Kaplan method [6], based on the common interests of its participants. The main measures for the ITC formation and development should include: – development of legal regulatory documents for the electronic customs documents registration; – simplification of border crossing procedures; – creation of unified, rational mechanisms of financial payments; – development of optimal tariff policy;

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– determination of effective methods of transport and the transported goods insurance; – automation of document forming and processing.

Fig. 1. The development directions of ITC «North-South» investment projects (Source: authors based on [7]).

Thus, it can be concluded the investment projects implementation for the transport infrastructure development in accordance with the developed measures to improve the «soft» infrastructure will significantly increase the volume and speed of cargo delivery, the quality of services in all these projects.

3 Results The Russian Federation is currently involved in many innovative projects, including in transport. The «One Belt, One Road» initiative was formed on the Great Silk Road historical concept basis, which routes were developed for China’s trade with the East, Asia, India and some European cities during the antiquity and the Middle Ages periods [7]. At present, the Silk Road revival is necessary for all countries to strengthen their competitive positions in various areas of interaction and cooperation, as well as for the foreign trade relations development [8]. The Russian and Chinese governments have always developed mutually beneficial bilateral relations in the transport industry. After the implementation of the «One Belt, One Road» project, the transport corridors development, logistics and service became the leading directions [9]. Russia has a very advantageous geographical position, and the Trans-Siberian Railway allows to become an important strategic partner of China in the «One Belt, One

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Road» project [10]. The New Silk Road is supposed to pass through the territory of Russia within the project framework. Within the framework of the New Silk Road project, Russia pursues the following interests: – enter the Eurasian transport corridors, become a major transit center connecting the countries of the East and West; – to recoup investments in transport infrastructure as soon as possible, create new production facilities and become more competitive in the world trade market due to the growing volume of transit cargo through Russia; – strengthen long-term partnership relations with China by creating mutually beneficial joint projects, taking into account the complex political relations with Western countries and the introduction of economic sanctions; – strengthen market competitive positions, because the Russia regions bordering China, and first of all Siberia and the Far East need markets for their products and the goods purchase from China, as well as the tourism development between Russia and China; – eliminate the military conflicts threat in the border regions, so Russia, like China, is interested in economic and political stability, security. Within the framework of the «New Silk Road» project, it is proposed to use the only ice-free Russian port on the Baltic Sea, located at the Pregolya River mouth (Kaliningrad Commercial Sea Port) for the goods transit from Asia to Europe. The port terminals are located in the inner harbors of Kaliningrad and are connected to the Baltic Sea by a shipping channel. The «Chernya-Khovsk» Industrial Park» is also of particular interest and provides ideal conditions for the goods transportation by rail. The «Chernyakhovsk» industrial park has Russian and European railway tracks, as well as a 300-hectare site for the construction of a logistics port for transshipment and storage of goods that are transported by land bridge from China to Europe. It is economically justified to develop the «Dry Port» project in Chernyakhovsk, because there is already a terminal and logistics center with modern loading capacities, equipped with a container platform with the installation of a large-capacity crane, allowing to accept Europe – Russia – China container trains in Kaliningrad. It should be emphasized only two directions of the Silk Road development were planned at first: the «Economic Belt» and the «Sea Route», but in 2017 a third route was added – the Arctic. The Northern Sea Route (NSR) plays an important role for Russia not only in foreign and domestic policy, but also significantly affects the country’s economy development as a whole. The north of our country is very rich in minerals and natural resources, which undoubtedly causes increased interest from other states. More than 80% of gas and 20% of oil are produced here. The Northern Sea Route (NSR) development ensures the transport infrastructure formation in hard-to-reach areas of the north, being the main highway of the Arctic, which connects Europe and Asia by the shortest route. The Northern Sea Route connects not only the foreign trade ports of Russia and China, but also ensures the integration of five seas of the Arctic Ocean, one sea of the Pacific Ocean, as well as a large number of Siberian rivers into a single transport system. Directions for the development of the New Silk Road project are shown in Fig. 2. For comparison, the length of the NSR is only 2 times shorter than a similar version of the Suez Canal transport system [12]. The Table 1 shows the forecast estimates of

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Fig. 2. Development directions of the «New Silk Road» project (Source: authors based on [11]).

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specialists for the period 2040–2050 on cargo turnover and the number of flights along the Northern Sea Route and the Suez Canal. Table 1. Forecast estimates of specialists for the period 2040–2050. Indicators

Arctic routes while using Polar Class 6 vessels

Suez Canal

Cargo turnover, mln tons

726,33

1698,24

Number of trips

8545

14152

Source: authors based on [13].

As can be seen from Table 1, this route is actively developing and cargo turnover is only increasing every year. This growth is largely due to the «Yamal LNG», energy project on the extraction, liquefaction and supply of natural gas from Russia to China, which allows to combine the geopolitical and economic interests of these countries. The «Yamal LNG» project is 63% funded by China, which is very important in terms of the investment lack and limited financial resources in our country due to American and European sanctions. There is also an increase in the cargo flow of oil from the Novoportovskoye field «Gates of the Arctic». During this period of time, the goods transit along the NSR also increased. The cargo transportation growth shows the importance and significance of this direction. The third Arctic direction of the «One Belt, One Road» project is also developing successfully. Within the framework of the «Ice Silk Road», special attention is paid to Arctic tourism. New, non-standard directions are being opened, the so-called icebreaking routes that start from the ports of China and then follow the Northern Sea Route to Murmansk. For example, icebreaker excursions to the North Pole are becoming very popular. Due to the fact that the energy resources extraction emphasis is shifting towards the sea Russia tries not to miss the economic benefits and should continue to develop the icebreaking fleet. Therefore, the timely NSR ports modernization and the modern infrastructure creation will allow the adjacent territories located along the sea highway to receive economic benefits. The global economy is recovering at a slow pace after the international crisis, the pandemic consequences, and difficult political relations. A single country cannot achieve economic and development financial heights, relying only on its capabilities, integration of efforts of all countries is required in such a situation.

4 Discussion In many ways, the innovative startups implementation to increase economic returns is based on modern digital technologies, the study and description of which is given enough attention in scientific research. In relation to projects implemented in the transport and logistics sector, platform solutions are actively used, the use of which leads to business processes optimization, minimizing costs in supply chains, and improving the quality of services [14].

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Digital platforms, as a tool of digital transformation, act as a link between various technological solutions and, in our opinion, form an innovative vector for the transport and logistics sector development. These services are open client-oriented entities that provide smooth interaction between management structures and all participants of the platform. The digital platform provides the following advantages to all the participants: – transaction costs are reduced; – the competitive model and systems of relationships between companies are changing due to the replacement of linear business models to network ones; – the profitability of the company increases; – ensures the perspective of strategic thinking in the perspective of time; – there is an emphasis on the long-term sustainability of system resources; – the stability of the company increases [15]. The value of the platform solution is provided due to the synergetic effect of all its participants. Directly in the transport and logistics sphere, the effect is formed through the exchange of available resources (personnel, technical, organizational, etc.) from all participants implementing logistics functions within the interaction framework system. With the help of a platform solution, logistics and other business processes are integrated into a single system, through the management of additional functions and connecting consumers, manufacturers and participants in transport processes [16]. It can be concluded that digital platforms perform all intermediary functions and contribute to the promising development of innovative projects in the transport and logistics sphere.

5 Conclusion The Decree «Strategy for the development of the Arctic Zone of the Russian Federation and ensuring the national security for the period up to 2035» presents strategic goals and objectives for the development of the Northern Sea Route. Based on this decree, there are 3 stages [14]: – from 2019 to 2024, it is necessary to start transportation in the eastern direction of the Northern Sea Route and achieve an increase in the turnover of transported goods of 80 million tons; – from 2025 to 2030, it is planned to improve the port infrastructure and organize year-round navigation through the construction of new nuclear icebreakers; – from 2031 to 2035, it should become the safest, year-round transport with a cargo turnover of 170 million tons. The North-South transport corridor is successfully developing, which allows products to be delivered from Central Asia to India through seaports. The construction of an extensive railway network also contributes to the growth of Central and South Asia countries foreign economic activity. ITC «North-South» unites many Eurasian transport routes, the main of which are Western (via Azerbaijan), Vostochny (via Kazakhstan and Turkmenistan), Trans-Caspian (via seaports).

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The goods transportation through the north-west of Russia significantly increases the delivery time and cost, therefore, Russia is actively developing a new north-south corridor passing through China and Kazakhstan, i.e. transit countries, and the Far Eastern ports capacity increase in future. The Russian economy will be more reoriented from European countries to the Asian direction, which will allow Western investments, equipment and technologies replacement.

References 1. Berman S (2012) Digital transformation: Opportunities to create new business models. Strategy & Leadership 40(2):16–24 2. DeNisco RA (2023) Why employees are the key to digital transformation success in the enterprise, https://www.techrepublic.com/article/why-employees-are-the-key-to-digitaltransformation-success-in-the-enterprise/, last accessed 11 March 2023 3. Jabil: Digital Transformation is here. Is your Workforce ready? https://www.jabil.com/ins ights/blog-main/how-to-prepare-employees-for-digital-transformation.html, last accessed 11 March 2023 4. Lee T, Nam H (2016) An empirical study on the impact of individual and organizational supply chain orientation on supply chain management. The Asian Journal of Shipping and Logistics 32(4):249–255 5. Saak AE (2016) Traceability and reputation in supply chains. Int J Prod Econ 177:149–162 6. Kaplan RS, Norton DP (2004) Strategy maps: Converting intangible assets into tangible outcomes. Harvard Business School Press, Boston 7. Vinokurov E, Akhunbaev A, Zaboev A, Usmanov N (2022) North-South international transport corridor: Investment solutions and soft infrastructure. Reports and working papers 22/2. Eurasian development bank, Almaty, Moscow (2022) 8. Kuzmina EE (2010) The prehistory of the great silk road: The dialogue of cultures Europe – Asia, 1st edn. KomKniga, Moscow 9. Larin ON (2017) Prospects of integration of transport systems of the Eurasian Economic Union. Problems of National Strategy 4:152–170 10. Karatayeva KE (2016) Approaches of the main participants to the development of the Eurasian transport corridor system. Problems of the National Strategy 4:218–237 11. Joint building «One belt, one road» initiative progress, contribution and outlook, https://rus. yidaiyilu.gov.cn/document/issue/87094.htm, 11 March 2023 12. Yakunin VI (ed) (2016) The Chinese global project for Eurasia: Problem statement, 1st edn. Scientific Expert, Moscow 13. When the Northern Sea Route will be able to replace the Suez Canal, https://www.gazeta.ru/ business/2018/09/10/11957443.shtml, last accessed 11 March 2023 14. Decree «Strategy for the development of the Arctic Zone of the Russian Federation and ensuring the national security for the period up to 2035», http://www.kremlin.ru/acts/bank/ 45972/page/2, last accessed 11 March 2023 15. Evtodieva TE (2021) Transformation of logistics into digital forms. In: Makarov EI (ed.), Management of the XXI Century: Scientific and Practical Aspects of Management and Social and Humanitarian Sciences, pp. 39–45. Publishing and Printing Center «Scientific Book», Voronezh 16. Obydenov A, Kozlov AV (2020) Analysis of key components of digital platforms. Ecosystemstakeholder approach. Creative Economy 14(12):3229–3246

Optimization of Logistics Flows in the Construction Cluster of the Samara Region S. I. Makarov(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. The contribution is devoted to the identification and study of factors that can be used to describe and optimize the logistics flows that determine the relationship between construction organizations-developers and manufacturers of building materials, products and structures. These factors determine the growth rate of construction, the development of infrastructure facilities and the introduction of innovative technologies in production processes. For a more accurate study of the relationship between indicators and obtaining predictive values, the method of regression analysis was used. Data in the form of monthly time series for the period 2013–2019 were taken from Rosstat reports on construction organizations in the Russian Federation and the Samara region. A dispersion analysis of the samples was carried out and regression models of the dynamics were built monthly and yearly, the significance and adequacy of the constructed models were assessed. The constructed mathematical models reflect the dependence of the main production indicators of building materials manufacturers and supply organizations. This will allow developers to create an optimal strategy for the formation of logistical interactions with supplying organizations in the region. MS Excel and Gretl applications were used to build statistical models, analyze and interpret them. The use of a logistics approach in the supply process in construction organizations leads to a reduction in production costs and provides resource saving in the construction of buildings and structures. Keywords: Construction Cluster · Extrapolation · Forecasting · Logistics Flows · Regression Models

1 Introduction Construction is one of the sectors of the modern economy that can become the driving force for the development of our country. The increased interest in this industry on the part of the population and economic management bodies is not accidental. This industry allows you to solve the social problems of the population, which are associated with employment and improvement of living conditions. The development of this sector of the economy will create new jobs and ensure sustainable economic growth in related © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 119–125, 2023. https://doi.org/10.1007/978-3-031-38122-5_17

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industries. In order to identify hidden reserves and opportunities in this area, it is necessary to conduct a comprehensive analysis of logistics flows that ensure the continuous economic growth of the construction industry in the Russian Federation and the Samara region [1]. In this study, an attempt was made to identify factors that can be used to describe and optimize the logistics flows that determine the relationship between construction organizations and manufacturers of building materials, products and structures [2]. This will allow developers to create an optimal strategy for choosing sources of material and technical support for production and the formation of production and economic relations and contractual relations in the construction industry in the region [3]. The factors influencing the formation of logistics flows in the field of construction and production of building materials in the Samara region are the totality of the main current and forecast values of the main parameters of the construction market, the degree of business activity of its subjects. The key subjects, the logistics flows between which are the subject of research, are construction organizations and manufacturers of building materials, products and structures [4].

2 Methodology The construction industry of the economy consumes large volumes of various building materials, structures. This leads to the movement of a large number of goods. The task of logistics in construction is to organize, within the framework of a single streaming process, the movement of goods and information between construction organizations and manufacturers of building materials, products and structures. The logistic approach makes it possible to carry out optimal management in the field of construction based on solving a system of optimization problems. The basis for making logistics decisions is the forecasting of the movement and distribution of material flows between participants in logistics supply chains. As a rule, forecasting is carried out using statistical models and the use of information technology. Regression analysis is most successfully used to obtain predictive values more accurately [5]. This extrapolation method allows you to study and comprehend the dynamics of changes in a process or phenomenon in the previous period, identify patterns and transfer them to the next period. It is based on the mathematical processing of statistical data using information technology. When building a model, a relationship is established between the parameters of the modeled system and the resulting feature. The significance and adequacy of the model is the higher, the more accurate the information obtained used in the calculations. The regression models include only those factors, the change of which has the greatest impact on the change in the performance indicator. If some factors duplicate the same information about the performance indicator, then only one factor from this group is involved in the construction of the model. The use of a logistics approach in the supply process in construction organizations leads to a reduction in production costs and provides resource saving in the construction of buildings and structures. Data in the form of monthly time series for the period 2013–2018 were taken from Rosstat reports on construction companies in the Russian Federation and the Samara region [6]. MS Excel and Gretl applications were used to build statistical models, analyze and interpret them.

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3 Results At the first stage of studying the material flows between the organizations of the construction cluster, the following most significant criteria for the selection of suppliers of building materials by construction organizations were identified. These indicators were ranked on a ten-point scale by an expert method [7]. The first eight most significant factors for the organization of logistics flows are presented in Table 1. Table 1. Rating of criteria for selecting suppliers of building materials and structures. Rating

Supplier Selection Criteria

Score

1

The duration of cooperation with the supplier of building materials and 7,3 equipment ensures the choice of the most reliable partners, which reduces the risk of non-fulfillment of delivery obligations by partners

2

The use by the manufacturer of modern technologies for the production of building materials, which ensures a high level of energy efficiency and environmental friendliness of construction projects, reduces material consumption and increases their reliability and durability

6,7

3

Special terms of delivery, which determine the minimum scope of delivery and delivery time. The regulation on the delivery of products can lead to an increase in the time of technological cycles in construction. The restriction on the minimum amount of the bid may not correspond to the needs or financial capabilities of the customer

6,3

4

The territorial remoteness of the supplier is one of the main logistical principles of organizing the supply of goods. When choosing a supplier, construction organizations consider the relative transport accessibility of the supplier, which leads to a reduction in logistics costs associated with the delivery and storage of materials and components

6,1

5

Payment terms that may not be acceptable based on the financial capabilities 5,8 of the customer. As a rule, undesirable forms of payment are either a full prepayment or a large amount of an advance payment

6

The quality of the products offered by the supplier of building materials, which must meet the requirements of energy efficiency and environmental friendliness

7

The schedule of production and deliveries determines the suppliers, 4,1 cooperation with which ensures the continuity of technological processes and compliance with the deadlines for the delivery of construction objects, allows planning the production and economic activities of the developer

8

The supplier’s reputation in the construction market is formed on the basis of 3,8 information about the organization’s fulfillment of all deadlines and obligations under contractual relations with consumers

4,2

Source: author.

At the second stage of studying material flows between organizations of the construction cluster, the following topical problems were identified that affect the cooperation of

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construction organizations with organizations producing building materials [8]. These factors were also ranked on a ten-point scale by an expert method. The most significant of them are presented in Table 2, considering the probability of occurrence [9]. Table 2. Problems of interaction between developers and suppliers of building materials in the organization of logistics flows. Probability of occurrence

Negative factors influencing the choice of a supplier of building materials

Score

low

Supply of poor-quality products

9,5

low

Failure to meet delivery deadlines

9,1

high

High price level

8,5

average

Long delivery times

7,5

average

Strict terms of payment for products

7,2

average

Bureaucratization of relationships between agents of the 6,1 logistics chain

average

Insufficient range of products

4,8

Source: author.

The third stage of the study was devoted to the creation of mathematical models that describe the relationship between factors that reflect the logistical structure of relations between enterprises in the construction cluster [10]. As an information base, statistical data were taken from open sources on the main indicators of the construction industry for the period 2011–2019 [6]. To build models, analyze and interpret them, and obtain predictive values of the resulting indicators, methods of multivariate statistical analysis were used [11]. All calculations were carried out in MS Excel and Gretl applications. Using correlation analysis to build regression models, factors that significantly affect the resulting indicators were selected, some factors-arguments were excluded from meaningful considerations and multicollinear factors-arguments. The following factors were chosen as the resulting factors that determine the structure of logistics flows in the construction cluster of the Samara region: Y – volume of work performed (million rubles), Z – volume of work performed (thousand sq. m.), T – commissioning of residential buildings, (thousand sq. m) of total area. For these resulting factors, the following regression models were obtained: Y = 55127550 − 38452X1 − 1607X2

(1)

Y = 152788 − 827X3 − 0, 43X4

(2)

Z = 7290 − 49, 36X1 − 21, 68X2

(3)

Z = 101, 04 − 1, 01X3 + 14, 29X5 + 1, 25X6

(4)

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T = 4731, 05 − 28, 02X7

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(5)

In the above regression equations, the following factors were selected as arguments using correlation analysis: X1 X2 X3 X4 X5 X6 X7

– price changes for metal products (%); – change in electricity prices (%); – change in prices for the production of cement, lime (%); – change in asphalt production prices (%); – volume of production of silicate blocks (million pieces); – change in the production of concrete for pouring (%); – producer price indices for construction products %.

The significance of the obtained regression equations and their coefficients was checked. The degree of joint influence of factors-arguments on the resulting factor is determined using the multiple correlation coefficient In the first model, represented by Eq. (1), the multiple correlation coefficient R = 0.75. The coefficient of determination of this model R2 = 0.65, hence, in 65% of cases, changes in argument factors lead to a change in the resulting factor Y 1 . This means that the variation in the indicator of the amount of work performed is determined by 65% by the variation of the factors included in the model. Similar statistical analysis is carried out for the remaining four models. The statistical indicators of the adequacy of the models are: for Eq. (2) R = 0.75, R2 = 0.65; for Eq. (3) R = 0.74, R2 = 0.66; for Eq. (4) R = 0.77, R2 = 0.68; for Eq. (5) R = 0.8, R2 = 0.71. These data allow us to conclude that the constructed models are of high quality and adequacy. Based on the obtained Eqs. (1), (2), (3), (4) and (5), it is possible to estimate by how many units the value of the effective factor changes on average when the factor-argument changes one unit.

4 Discussion The study of logistics flows linking construction organizations in the Samara region makes it possible to identify factors that ensure the production and economic activity of economic entities of the construction cluster. The performance indicators of construction companies discussed in this work describe the bottlenecks in the relationship between developers and suppliers of building materials, they are the core of statistical indicators reflecting the state of the construction industry in the region (Table 1). The formation of a multi-criteria assessment of organizations supplying building materials for construction needs makes it possible to identify the problems that developers face when building logistics links with regional suppliers (Table 2). The use of the constructed regression models by construction organizations will make it possible to make a forecast about the production of material resources and use it as a criterion for choosing suppliers of building materials and structures. Despite the fact that each construction organization individually determines its own procurement logistics policy, considering the predicted values of indicators will allow you to optimally organize logistics links with counterparties and reduce the negative impact of adverse factors.

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5 Conclusion Summing up the above, we note that the formation of logistics flows in the construction cluster is primarily affected by the level of prices for building materials and structures, the high cost of energy and transport services [12]. Inflationary processes taking place in the country and the region are causing a decrease in consumer demand in the housing market. The price level is also strongly influenced by the tax burden and the lending rate of financing, which contribute to the rise in prices for construction industry products. This leads to a decrease in the volume of purchases of materials by construction organizations and the restructuring of long-term logistics links between agents of the construction cluster [9]. At the same time, the investment attractiveness of the region, government support for the construction industry, the introduction of innovative technologies in production processes contribute to the development of logistics links between developers and manufacturers of building materials. The favorable influence of these factors must be used in the formation of a logistics mechanism for cluster interaction between builders and manufacturers. In addition, the introduction of an option system for ordering the supply of building materials at the request of developers can greatly reduce the impact of a number of the described negative factors, which will eliminate the mismatch between supply and demand in the construction industry. The creation of unified information and logistics portals that accumulate information about the needs for building materials of construction organizations and the offers of building materials suppliers available on the market makes it possible to improve existing and create new logistics supply chains in the construction cluster [13]. The models built in this study are quite reliable and adequate, they can be used to monitor and predict the values of the main financial indicators of the construction industry.

References 1. The state program of the Samara region dated November 27, 2013 No. 684 «Development of Housing Construction in the Samara Region until 2020». http://docs.cntd.ru/document/464 012122. Last accessed 20 Mar 2023 2. Ivanushkin NS, Kirshin IA (2015) Features of financing construction projects in Russia. Actual Dir. Sci. Res.: From Theory Practice 2(4):198–200 3. National Rating Agency: Rating of investment attractiveness of Russian regions by the end of 2018. http://www.ra-national.ru/sites/default/files/analitic_article/IPR-6-06112018.pdf. Last accessed 20 Mar 2023 4. The state program of the Samara region dated 09.12.2015 No. 822 «Development of the Infrastructure of Urban Development in the Territory of the Samara Region for 2016–2019 years». http://docs.cntd.ru/document/434605300. Last accessed 20 Mar 2023 5. Kitaeva NN (2002) Methodology of statistical analysis and forecasting the development of the building complex of Moscow. Ph.D. thesis. Moscow State University of Economics, Statistics and Informatics, Moscow 6. Decree of the Government of the Russian Federation of 07.02.2011 N 165-r «On approval of the Strategy for socio-economic development of the Volga Federal District until 2020». https:// bazanpa.ru/pravitelstvo-rf-rasporiazhenie-n165-r-ot07022011-h1612615/strategiia/5/6. Last accessed 20 Mar 2023

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7. Ru-Stat: Construction in the Samara region. https://samarastat.gks.ru/construction. Last accessed 20 Mar 2023 8. Ru-Stat: Construction in the Russian Federation. https://www.gks.ru/folder/14458. Last accessed 20 Mar 2023 9. Ru-Stat: Factors limiting the production activities of construction organizations. https://www. gks.ru/folder/14458. Last accessed 20 Mar 2023 10. Ru-Stat: Import to the Samara Region. 2013–2018. http://ru-stat.com/date-Y2013-2018/RU3 6000/import/world/0525. Last accessed 20 Mar 2023 11. Tikhomirov NP, Tikhomirova TM, Ushmaev OS (2017) Methods of econometrics and multivariate statistical analysis, 1st edn. Economics, Moscow 12. Kiyutsen LI (2016) Secondary resources in the production of building materials: We determine the economic efficiency of use. Handbook of an Economist 10. https://www.profiz.ru/se/10_ 2016/vtor_resursy/. Last accessed 20 Mar 2023 13. Government of the Samara Region: Raw material base. https://www.samregion.ru/economy/ source/. Last accessed 20 Mar 2023

Features of Urbanization of Non-agglomeration Territories: The Role of Small Towns E. N. Koroleva1(B)

, Y. V. Urazova2

, and S. V. Loginov1

1 Samara State University of Economics, Samara, Russia

[email protected] 2 Vocational Pedagogical College of Saratov State Technical University named after Yu.A.

Gagarin, Saratov, Russia

Abstract. The relevance of the considered problem is determined by the current lack of research interest in the features and consequences of urbanization processes within the non-agglomeration territories of Russia. The purpose of the study is to identify the role of small towns in the processes of urbanization of the non-agglomeration territory. The research tasks include identification of the object of analysis (a non-agglomeration territory and determination of its composition within the administrative boundaries of a particular Russian region); development of an empirical analysis procedure, selection of indicators and sources of information that allow measuring and evaluating the processes of urbanization of a non-agglomeration territory, giving a versatile description of the role of small towns in these processes; interpretation of the analysis results. The object of analysis was the extra-agglomeration (outside the Samara-Togliatti agglomeration) territory of the Samara region. The results obtained by the authors confirmed the thesis about the regional specifics of urbanization processes and their unevenness at the subregional level; showed the strengthening of the role of small towns in the process of urbanization of the non-agglomeration territory. The findings can contribute to the development of new areas of fundamental and applied scientific research, the subject of which will be the socio-economic development of nonagglomeration territories; new views on the role of small towns in the modern policy of spatial development of Russian regions. Keywords: Deurbanization · Municipal District · Non-agglomeration Territory · Samara-Togliatti Agglomeration · Small Town · Urban District · Urbanization

1 Introduction The study of the urbanization issues, urban development in Russian and world science has established certain traditions. Being a complex and contradictory socio-economic process, the urbanization manifests itself in external visible and concrete forms and can be characterized as a system of various indicators, traditional accepted among which are the size and proportion of the urban population (urbanization level), density of urban population and density of cities, directions and sizes of migration flows, the scale of development of urban agglomerations, and the urbanization of the countryside. However, © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 126–132, 2023. https://doi.org/10.1007/978-3-031-38122-5_18

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the theoretical issues of studying urbanization, starting with the precise definition of the term «urbanization» itself, still remain open [1]. As for applied research works, most of them are focused on the study of urbanization processes affecting large cities, agglomerations, megacities and other group forms of settlement. Similar works, in relation to such objects as medium and small cities, are not enough. Meanwhile, modern trends, for example, in Western Europe, confirm the decline in the urbanization [2]. At the same time, in a number of countries, the growth is not currently observed in large cities, but rather medium and small ones [3, 4]. The growth of the latter is, among other things, the result of developing, but insufficiently studied processes of deurbanization (counter-urbanization) – the migration of the population not to the city, but from the city. The most important result of this is the accelerated growth of the economic activity in non-agglomeration areas, in rural areas, in small and medium-sized cities. The relevance of the research problem is enhanced by the current lack of due attention to the features and consequences of urbanization within the non-agglomeration (peripheral) territories of the Russian Federation. The purpose of this study is to reveal the role of small towns in the urbanization processes of non-agglomeration territory. The research tasks include the identification of objects of the analysis: non-agglomeration territory within the administrative boundaries of a specific Russian region (subject of the Russian Federation); the development of an empirical analysis procedure, including the selection of parameters, indicators and information sources; performing calculations and interpreting the analysis results for the period 2016–2021.

2 Methodology The object of our analysis was the non-agglomeration territory of a specific subject of the Russian Federation – the Samara region. The Samara–Toltyatti agglomeration (STA) is the third largest urban agglomeration in Russia (after Moscow and St. Petersburg). The composition of the STA is currently regulated by the Regulations on the Coordinating Council for the Development of the Samara-Togliatti agglomeration [5]. From the position of the administrative-territorial division of the Samara region, the STA includes: 1 city district with an intracity division (Samara), 7 urban districts (including Tolyatti), 9 municipal districts. The non-agglomeration (relative to the STA) territory, respectively, consists of 18 municipal districts and two urban districts (Pokhvistnevo and Otradny), 2 urban settlements (1 city and 1 urban-type settlement), 172 rural settlements. For the analysis, the main indicators of the socio-economic development of municipalities were used. The main information source for the period 2016–2021 became the Database «Indicators of Municipalities» by Rosstat [6]. The indicator «shipped goods of own production, performed works and services on its own per capita (excluding small businesses)» will be further denoted as GMP (gross municipal product), since at the municipal level it is the most complete in terms of the content of the value created during the year [7].

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3 Results The composition of the non-agglomeration territory is presented in Table 1. Table 1. Composition of the non-agglomeration territory of the Samara region (01/01/2021). Municipalities of the first level

Municipalities of the second level

Name

Population, pers.

Type

Number

Otradny urban district

47055

-

-

Pokhvistnevo urban district

28680

-

-

Alekseevsky municipal district

11374

Rural settlements

5

Bogatovsky municipal district

14185

Rural settlements

5

Bolshegluchitsky municipal district

17880

Rural settlements

8

Bolshechernigovskiy municipal district

16905

Rural settlements

9

Borsky municipal district

22833

Rural settlements

13

Elkhovsky municipal district

9259

Rural settlements

7

Isaklinsky municipal district

11767

Rural settlements

8

Kamyshinsky municipal district 10113

Rural settlements

6

Kinel-Cherkassky municipal district

42232

Rural settlements

13

Klyavlinsky municipal district

13649

Rural settlements

6

Koshkinsky municipal district

21167

Rural settlements

13

Neftegorsk municipal district

32813

Urban settlement of 1 Neftegorsk - Neftegorsk town Rural settlements

8

Pestravsky municipal district

15832

Rural settlements

8

Pokhvistnevsky municipal district

26071

Rural settlements

15

Sergievsky municipal district

44040

Sukhodol Urban Settlement Sukhodol Urban Settlement

1

Rural settlements

16

Khvorostyansky municipal district

15890

Rural settlements

11

Chelno-Vershinskiy Municipal District

13891

Rural settlements

11

Shentalinsky municipal district

14633

Rural settlements

10

Source: authors based on [6]

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As of 2021, the area of the non-agglomeration territory is 31.89 thousand km2 (59.5% of the entire territory of the Samara region); population – 430.3 thousand people (13.6% of the total population of the Samara region). For a brief description of the processes of urbanization in the territory outside the agglomeration, we use the coefficient of urbanization. The growth of its value from 23.5% to 24.8% over the period 2010–2021 indicates an increase in urbanization processes in the study area. Over the same period, in the Samara region as a whole, the urbanization coefficient decreased from 80.3% to 80.0%. 96% of the total urban population of the non-agglomeration territory concentrated in the urban districts of Otradny and Pokhvistnevo. These urban districts in terms of population up to 50 thousand people belong to small urban districts. Their characteristics are presented in Table 2. Table 2. Brief description of the urban districts of Otradny and Pokhvistnevo (01/01/2021). Characteristics

Otradny urban district

Pokhvistnevo urban district

Year of foundation

1956

1947

Territory composition

Otradny town

Pokhvistnevo town, Oktyabrsky settlement

Population, pers

47055

28680

Area, km2

53.51

64.77

Distance to the regional center, km

93

165

Industry Profile

Diversified (mining and various manufacturing industries)

Monoprofile (oil production)

Source: authors based on [6]

It is important to note that during this period there was no increase in the population of the urban districts of Otradny and Pokhvistnevo and two urban settlements (the town of Neftegorsk and the urban-type settlement of Sukhodol) as part of the nonagglomeration territory. Consequently, the urbanization level of the non-agglomeration territory increased not due to the absolute growth of the urban population, but due to the lower rate of its decline compared to the rural population of the territories outside the STA (with the exception of the Bogatovsky district, where the population was stable). An analysis of results presented in Table 3 demonstrates the strengthening of the processes of concentration of the economic potential in the urban districts of Otradny and Pokhvistnevo. If in 2016, having 17% of the population of the non-agglomeration territory, these urban districts produced almost one third of the GMP of the study area, then in 2020, with a slight increase in the share of the population (by 0.4 pp), their share already accounted for almost 40% of the GMP of the non-agglomeration territory. Even higher dynamics of concentration processes over the period under review is demonstrated by the analysis of the «investment in fixed capital» parameter: the total share of the studied urban districts increased by 5.4 times (from 4.75% in 2016 to 25.64% in 2020).

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Table 3. Shares of small urban districts Otradny and Pokhvistnevo in the main economic parameters of the non-agglomeration territory of the Samara region in 2016–2020 (%). Parameters

2016

2017

2018

2019

2020

10.63

10.72

10.81

Otradny urban district Population

10.53

10.62

GMP

26.97

27.03

26.30

26.85

29.37

Investments in fixed assets

4.04

23.11

6.74

17.37

17.56

Retail turnover

18.35

18.18

17.70

19.73

20.81

Population

6.49

6.52

6.54

6.58

6.59

GMP

5.92

6.78

7.94

9.08

9.23

Investments in fixed assets

0.71

8,94

3,27

7,41

8.08

Retail turnover

9.21

9.48

9.41

10.86

12.41

Pokhvistnevo urban district

Source: authors based on [6]

As follows from the data in Table 4, the urban districts of Otradny and Pokhvistnevo are distinguished by significantly higher industrial and entrepreneurial activity, investment and migration attractiveness, higher levels of wages and retail trade turnover.

4 Discussion The results were obtained in relation to the study of the features of the urbanization processes of the non-agglomeration (outside the Samara-Togliatti agglomeration) territory with an emphasis on the role of small towns. This is a completely new look at the study of urbanization processes, while attempts to study the processes of spatial and socio-economic development occurring on the territory of municipalities adjacent to the boundaries of megacities have already been made [8]. The results obtained confirm the primary role of the studied small towns in strengthening the processes of urbanization of the non-agglomeration territory of the Samara region. This is happening against the background of a noticeable decrease in the level of urbanization throughout the Samara region, which reflects the development of deurbanization processes in the Samara-Togliatti agglomeration. The obtained results confirm the thesis about the variability of urbanization processes in the regional dimension [9] in this case – unevenness even within the boundaries of one administrative-territorial entity (subject of the Russian Federation). The strengthening of the role of the studied small towns in the process of urbanization of the non-agglomeration territory can be explained by the following reasons: 1) small towns, being multifunctional centers of non-agglomeration territory, concentrate, first of all, economic functions: this generates rural migration, allowing small towns to attract rural populations and compensate for their own population decline;

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Table 4. Indicators of differentiation of socio-economic development of urban districts and nonagglomeration territory of the Samara region in 2020. Indicators

Otradny urban district

GMP per capita, thousand rubles

Pokhvistnevo urban district

Average value for the non-agglomeration area

1378.2

704.7

507.5

113.7

85.9

72.7

86.0

83.4

44.7

Average monthly nominal accrued wages of employees of organizations, rubles

46093.7

34094.4

31980.2

Number of individual entrepreneurs per 1000 inhabitants, people

14.7

16.9

1.0

6.9

0.6

-2.0

Investments in fixed assets per capita, thousand rubles Retail trade turnover per capita, thousand rubles

Balance of migration per 1000 inhabitants, pers Source: authors based on [6]

2) rural municipal districts of the non-agglomeration territory do not yet fully possess the attributes of deurbanization (full-fledged possibility of remote work, mobile medicine, etc.) [10]. The assessment of this role may look diametrically opposite: 1) from the point of view of the negative effects of the increasing concentration of socio-economic potentials in two urban centers; 2) taking into account the positive potential effects of «competing» growth points of the peripheral territory of the region. According to our assessment, in the future the competitive positions of the urban district of Pokhvistnevo may noticeably increase. The urban district of Pokhvistnevo has the status of a single-industry city of the Samara region, which allows it to take advantage of a set of solid support measures provided by the government of the region [11]. In the future, an «agglomeration» development scenario is also hypothetically possible, which consists in the formation of the Otradnensko-Pokhvistnevskaya agglomeration, the influence of which, taking into account the development of its transport and transit potential, will extend beyond the administrative boundaries of the Samara region in the northeast.

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5 Conclusion The results and conclusions obtained can be used for scientific and practical purposes in various areas: firstly, to promote the development of new fundamental and applied scientific research, the subject of which will be the socio-economic development of non-agglomeration territories; secondly, to replenish the scientific base of theoretical and empirical knowledge necessary for a comprehensive study of modern problems of urbanization, including its regional features; thirdly, to form a new view on the role of small towns in the modern policy of managing the spatial development of Russian regions.

References 1. Animitsa EG, Vlasova N (2010) Urban studies, 1st edn. Publishing House of the Ural State Economic University, Yekaterinburg 2. Meijers EJ, Burger MJ, Hoogerbrugge MM (2016) Borrowing size in networks of cities: city size, network connectivity and metropolitan functions in Europe. Pap Reg Sci 95(1):181–198 3. Rastvortseva SN, Manaeva IV (2022) Modern development of small and medium-sized cities: trends and drivers. Econ Soc Changes: Facts, Trends, Forecast 15(1):110–127 4. Camagni R, Capello R, Caragliu A (2017) Static vs. dynamic agglomeration economies: Spatial context and structural evolution behind urban growth. In: Capello R (ed) Seminal studies in regional and urban economics. Springer, Cham, pp 227–259. https://doi.org/10. 1007/978-3-319-57807-1_12 5. Decree of the Government of the Samara Region «On the establishment of the Coordinating Council for the development of the Samara-Togliatti agglomeration» dated January 15, 2014 No. 7-r. https://economy.samregion.ru/upload/iblock/ec5/_-_-15.01.2014_-7_.pdf. Last accessed 3 Oct 2023 6. Rosstat, Federal State Statistics Service. Database «Indicators of municipalities». http://www. gks.ru/free_doc/new_site/bd_munst/munst.htm.4. Last accessed 3 Oct 2023 7. Rusanovskiy VA, Markov VA, Brovkova AV (2018) Modeling the effects of spatial localization in urban agglomerations of Russia. Ekonomicheskaya Politika 13(6):136–163 8. Okrepilov VV, Kuznetsov SV, Mezhevich NM, Sviridenko MV (2019) Urbanization processes in the context of spatial development patterns of municipalities in the zone of influence of megacities. Econ Soc Changes: Facts Trends Forecast 12(4):42–52 9. Nefedova TG, Treyvish AI (2017) The transformation of settlement in modern Russia: urbanization or de-urbanization? Reg Stud 2(56):12–23 10. Pokrovsky N, Nikishin E, Makshanchikova A (2022) What’s after the city? Perspectives on the rural-urban path of life. Chelovek 33(5):44–62 11. Guseva MS, Kuzhanbaeva Y, Kuzhanbaev RT (2019) Current trends in the socio-economic development of single-industry towns of the Samara region. Koncept 8:169–177

Renovation of Fixed Assets and Innovations in Construction N. N. Belanova1(B)

, O. R. Grankov2

, and R. A. Sattarov3

1 Samara State University of Economics, Samara, Russia

[email protected]

2 JSC «Mosvodokanal», Moscow, Russia 3 LLC ELKON, Samara, Russia

Abstract. In the contribution, the authors explore processes of renewal and innovative development of the construction industry. The construction industry is a branch that enables to «launch» innovations, introduce innovative developments into business processes. That ensures the renewal of fixed assets in various economic sectors and creates objects of the passive part of fixed assets. The innovative development of the construction industry is extremely important for the progressive development of the economy on the whole. This work examines the processes of renewal of fixed assets in the construction based on the analysis of coefficients of renewal and retirement, studying the depreciation degree of fixed assets. The indicators reflecting the innovative activity of construction companies are analyzed, which are compared with the industry average indicators of development. The authors consider the main directions of innovations in the construction: 3D printing, modular construction, «green» construction and energy-saving technologies, the use of artificial intelligence and machine learning, the application of innovative materials, the use of robotics, drones and remote control systems at construction sites. In general, the authors come to the conclusion that the pace of innovative development of the construction industry is relatively low, but the study shows that conditions and factors are developing in Russia that stimulate the entrepreneurial activity and innovative development of organizations. Keywords: Energy-Saving Technologies · Innovative Activity of Construction Organizations · Innovations in Construction · Renovation of Fixed Assets

1 Introduction The construction industry is a key area and can act as a driving force for scientific and technological progress, an incentive for innovation in other areas and industries, as it creates objects that are a passive part of fixed assets. Therefore, the innovative activity of construction organizations, the introduction of technological and product innovations are important for the successful development of the economy. The works of many scientistseconomists are devoted to the study of the processes of modernization and innovative development of the investment and construction complex [1–4], the study of energyefficient technologies [5–7], the study of environmental aspects and «green building» © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 133–139, 2023. https://doi.org/10.1007/978-3-031-38122-5_19

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[8–12]. An analysis of the scientific works of domestic and foreign researchers shows that many issues in the field of modernization and development of the construction industry have not been sufficiently developed. The issues of innovative development of construction require updating, taking into account changing external and internal conditions.

2 Methodology The research purpose is to study and systematize the processes of renewal and innovative development of the construction industry. Based on this purpose of the study, the following tasks are defined: – consider the indicators of innovative development of the construction industry; – study data on depreciation and renewal of fixed assets in construction; – systematize data on advanced and innovative technologies for the development of the construction industry.

3 Results The innovative activity of the construction industry in 2021 was 4.5%, which is much lower than the average value of this indicator for organizations (11.9%) and less than the value for 2017 (it was 9.6%) [13]. In 2017–2019, there is a trend towards a decrease in the level of innovative activity of construction organizations. In the future, there is a slight increase in the studied indicator, however, at a slower pace compared to the average values for all types of activities (Fig. 1). The share of costs for innovation activities in the total volume of shipped goods, work performed and construction services is 0.2%. The construction industry ranks last in this indicator (on average, for all types of economic activity, this value is 2%).

Fig. 1. Dynamics of the level of innovative activity of organizations, % (Source: authors based on [13]).

In general, analyzing the structure of innovative costs for innovative activities, it can be noted that the largest share in construction organizations falls on research and

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development (49.7%) and the purchase of machinery, equipment and other fixed assets (39.1%) (Fig. 2).

Fig. 2. Structure of costs for innovative activities of construction organizations, % (Source: authors based on [13]).

The use of advanced machinery and equipment, the timely renewal of the organization’s fixed assets are key conditions for ensuring successful innovative development. Let us consider the dynamics of indicators of renewal of fixed assets in construction. We examine the dynamics of the coefficients of renewal and disposal of fixed assets in construction (Table 1). As can be seen from this table, for the study period, the share of new (introduced fixed assets) is higher than the share of liquidated fixed assets. The largest share of commissioned fixed assets (11.3%) falls on 2018, retired (1.1%) – in 2017. These indicators reflect the intensity of renewal of fixed assets. Let’s compare these values with the average ones by types of economic activity. For construction, the renovation coefficient for the study period averaged 8.3%, for all types of economic activity – 4.32%. The retirement rate for construction averaged 0.84%, for all types of economic activity – 0.6%. These indicators positively characterize the construction industry, since the share of new fixed assets introduced is higher than the share of those liquidated over the same period of time. The coefficient of renewal in construction is higher than the industry average, that is, the renewal of fixed assets is going on more intensively. Table 1. Dynamics of renovation and disposal rates in construction, %. Indicator

2017

2018

2019

2020

2021

Renovation rate

5.1

11.3

9.9

5.9

9.3

Disposal rate

1.1

1.0

0.6

0.7

0.8

Source: authors based on [14]

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Let’s consider the depreciation degree of fixed assets in construction (Fig. 3). On average, the share of depreciation of all fixed assets in construction is 50.5%, which is lower than the value for all surveyed types of economic activity by 2.5%. The greatest wear and tear falls on machines, equipment and vehicles used in construction. Completely depreciated fixed assets used in construction amount to 15%, which is below the average value for all types of economic activity (it is 21.7%). Machinery, equipment (25.7%) and vehicles (20.5%) account for the largest share of completely worn-out fixed assets. Comparing the share of completely depreciated fixed assets for all their types of fixed assets compared with average values, it can be noted that there is a slight excess of this indicator for vehicles, the remaining values for other types of fixed assets in construction (buildings, structures, machinery and equipment) below the industry average.

Fig. 3. The degree of depreciation of fixed assets in construction, % (Source: authors based on data based on [14]).

In general, it can be noted that fixed assets in construction are less worn out and their renewal is more intensive and compared to the average values for all types of economic activity. This is a favorable condition for the development of innovative activity in construction.

4 Discussion Let’s consider the key areas of innovations in the construction industry: 1. The use of 3D printing of a building is based on the automation of the process and the use of building 3D printers that allow you to create a model of a house, print its individual parts or the entire house (walls). It is suitable for low-rise and highrise buildings. There are three main ways construction printers work: layer-by-layer extrusion, sputtering, and selective laser sintering. Two types of 3D printers are used in construction: in the form of an arrow with a manipulator and in the form of an overhead crane. This is an environmentally friendly, economical and prefabricated

Renovation of Fixed Assets and Innovations in Construction

2.

3.

4.

5.

6.

7.

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technology, however, its wide distribution is limited by factors such as the lack of construction standards, the legislative framework for the use of 3D printers; high cost of 3D printing equipment; stringent requirements for construction sites and weather conditions; high requirements for building mixtures used in a building 3D printer. Modular construction is a method of construction based on the assembly of previously manufactured elements and modules. Its advantages are fast construction lines, manufacturability and quality, autonomy, the possibility of full processing and use in new construction. The main limiting factor for the development of modular construction is the limited dimensions of building modules and structures, as they are assembled in a factory and transported to the construction site. Application of artificial intelligence and machine learning. Information modeling technology is widely used in the construction, both for making design decisions and for the development and digital visualization of building structures and engineering networks. The use of these technologies allows us to apply an integrated approach and minimize the likelihood of design errors and construction risks. In Russian companies, the first level of information modeling technology (BIM) is most often used. Since January 1, 2022, at the legislative level [15], an obligation has been fixed for companies building state-ordered objects to use the BIM model. This activates the innovation process in this area. The use of robotics, drones and remote control systems at a construction site. The use of robots is possible in such processes as bricklaying, drilling, palletizing, etc. The use of drones and remote control systems makes it possible to explore the area, correct decisions made, reduce risks and exercise remote control over construction. Creation of smart and sustainable cities. The smart city concept has been researched and implemented by large construction companies in recent years. Online smart systems allow monitoring emergencies, controlling the operation of infrastructural facilities of housing and communal services, and gaining access to city services. Application of innovative materials. Currently, innovative developments in the field of construction are being actively carried out. The latest innovative developments include transparent wood, warm brick, liquid granite, transparent aluminum, flexible ceramic tiles, etc. The use of new materials opens up new opportunities for construction, but also carries additional risks and costs. In each case, it is necessary to compare the benefits and costs of using a particular material or technology. Green building is based on creating a safe, comfortable and healthy environment. It uses technologies that make it possible to have a minimal impact on the natural environment and use available resources economically. In most cases, green building in Russia is reduced to the use of energy efficient technologies. Energy-saving technologies are based on maximizing the use of natural light and saving heat. Energy efficient technologies apply to all stages of construction and are applied to building materials and structures, equipment and appliances, insulation system, lighting, heating, ventilation and air conditioning systems. Energy efficiency is achieved through: – reinforced thermal insulation of walls, roofs and foundations of a building under construction; – the use of energy-saving double-glazed windows, warm windows and door profiles; – installation of a modern ventilation system;

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– the use of thermostats, temperature sensors, etc. – the use of panoramic glazing and frameless technologies that ensure the use of natural light. The use of green building and energy efficient technologies will make it possible to rationally use limited resources and reduce the greenhouse effect. In the Strategy for the development of the construction industry and housing and communal services of the Russian Federation for the period up to 2030 with a forecast up to 2035 [16], much attention is paid to the formation of a comfortable urban environment, environmental protection, reduction of greenhouse gas emissions and energy efficiency. For the successful implementation of these areas, measures are provided, as well as target indicators and predicted results.

5 Conclusion The innovative development of the construction industry is proceeding at a rather slow pace, however, the need to ensure high competitive positions requires organizations to develop and make strategic and tactical decisions based on the prevailing business conditions and patterns of development. The key directions for the development of the construction industry should be the activation of innovations, the renewal of capital, the acceleration of scientific and technological progress, the introduction of advanced technologies and product solutions into the practice of economic activities of construction companies.

References 1. March MT: Architecture billings skyrocket to highest level of 2016. https://www.constr uctiondive.com/news/architecture-billings-skyrocket-to-highest-level-of-2016/434151/. Last accessed 02 Apr 2023 2. Yadav M, Agarwal M (2021) Biobased building materials for sustainable future: an overview. Mater Today: Proc 43(5):2895–2902 3. Mundt Petersen S, Arfvidsson J (2010) Comparison of field measurements and calculations of relative humidity and temperature in wood framed walls. In: Zmeskal O (ed) Conference proceedings – Thermophysics 2010. Brno University of Technology, Faculty of Chemistry, Brno, pp 93–101 4. Kornilova AD, Shekhova NV, Belanova NN, Savoskina EV (2019) Assessed probability of risks in dependence on innovative project description. In: Ashmarina S, Vochozka M (eds) Sustainable Growth and Development of Economic Systems. CE. Springer, Cham, pp 103–119. https://doi.org/10.1007/978-3-030-11754-2_8 5. Kireeva EE, Belanova NN, Kornilova AD, Chirkunova EK (2017) Innovative development of the building complex on the basis of environmental and energy-efficient technologies. In: Murgul V (ed) International Science Conference SPbWOSCE-2016 «SMART CITY», Saint-Petersburg 2016, MATEC Web of Conferences, vol 106, p 08002 6. Devlikamova AS, Petulko KA (2016) Energy-efficient technologies in construction. Young Sci 8(112):1268–1271 7. Onischenko M, Borisova NI, Borisov AV (2016) Energy technology in construction. Econ Innovations Manag 3:11128

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8. Avalbaev GA, Ergashev BO, Bobomuratova SY, Sagdullaeva S (2016) Ecological problems of construction materials industry. Young Sci 11:564–566 9. Porfiriev BN, Dmitriev AN (2016) Green standards: status assessment and challenges of regulatory improvement. Stan. Qual. 8:16–21 10. Sandberg K, Pousette A, Dahlquist S (2011) Wireless in situ measurements of moisture content and temperature in timber constructions. In: de Freitas VP, Corvacho H, Lacasse M (eds) XII DBMC, Porto, Portugal, pp. 1–8. FEUP Edicoes, Porto 11. Hanley N, Shogren JF, White B (2006) Environmental economics: in theory and practice, 2nd edn. Red Globe Press, London 12. Bon-Gang H (2018) Performance and improvement of green construction projects, 1st edn. Butterworth-Heinemann, Oxford 13. Vlasova VV, Gokhberg LM, Ditkovsky KA: The science. Technologies. Innovations: 2023: a brief statistical collection, 1st edn. National Research University «Higher School of Economics», Moscow (2023) 14. Federal State Statistics Service. https://rosstat.gov.ru/folder/14304. Last accessed 18 Apr 2023 15. Decree of the Government of the Russian Federation of 05.03.2021 N 331 «On establishing the case in which the developer, technical customer, the person providing or preparing the investment justification, and (or) the person responsible for the operation of the capital construction object, ensure the formation and maintenance of the information model of the capital construction object», https://base.garant.ru/400424628/, last accessed 2023/04/18 16. Order of the Government of the Russian Federation of October 31, 2022 N 3268-r «On approval of the Strategy for the development of the construction industry and housing and communal services of the Russian Federation for the period up to 2030 with a forecast up to 2035». https://rulaws.ru/goverment/Rasporyazhenie-Pravitelstva-RF-ot-31.10.2022-N3268-r/. Last accessed 18 Apr 2023

Specific Features of the Sustainable Development Strategy of Russian Marketplaces D. V. Ralyk(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. Despite the complexity of long-term planning of a trading business in today’s geopolitical realities, the importance of implementing the concept of sustainable development is recognized by all sectors and areas of activity, including trade. However, some aspects of the implementation of this strategy in the system of Russian marketplaces are still insufficiently developed. Of course, the continuously growing online segment of the B2C market, especially in the post-pandemic period, can inspire confidence in the unshakable market success of marketplaces, however, in the long run, a lack of attention to non-financial goals can lead not only to a loss in the reputation of trading companies, but also to shake their commercial success, negatively affecting on economic indicators. This contribution discusses such aspects of the sustainable development strategy of marketplaces as environmental responsibility and human resource development. Specific features of the marketplaces functioning that collect thousands of sellers and millions of buyers on their site include the transfer of ordered items to the consumer in packaging that ensures the safety of the transferred items. Returning, recycling or reusing packaging is currently a solution implemented only by the most responsible customers. There is a problem of bringing up environmental responsibility at the level of partners and customers. There is also a low degree of concern about the staff satisfaction with working conditions. Keywords: Ecology · Human Resources · Marketplace · Retail · Sustainable Development

1 Introduction The concept of sustainable development has been adopted by the global business community due to more progressive views on corporate priorities and a deep awareness of true values of the modern society. The horizons of long-term planning are expanding and involve concern not only for the financial well-being of the company and its prosperity, but also about what mark it will leave in our lives, what foundation and what environment will be provided for future generations. Studying problems and prospects for the development of Russian retail, it can be noted that at present, sustainable development is more of a trend than a conscious choice of companies forced to operate in the context of systemic crises and global challenges of the 21st century. The study shows achievements of marketplaces in the context of sustainable development and, at the same time, © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 140–146, 2023. https://doi.org/10.1007/978-3-031-38122-5_20

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identifies problem areas, the work on which is of high priority. The author highlights the most relevant areas for improving business in the implementation of non-financial goals and proposes solutions that do not claim to be absolutely innovative, but at the same time can be effective.

2 Methodology In the course of desk research, statistical data on the development of Russian ecommerce, the opinions of experts in the field of retail and sustainable development were studied. GAP-analysis of industry resources made it possible to determine the difference between the declared values and the actual actions of companies. Sustainability reports from leading Russian marketplaces were studied. In addition, during interviews with representatives of marketplaces, evaluations of trading companies as employers were obtained. Benchmarking was implemented to find optimal solutions to eliminate shortcomings of companies in the course of implementing the sustainable development strategy.

3 Results The role of marketplaces in the life of modern consumers is quite large. As the product and service offering expands, the likelihood of concentrating all of the diverse costs of buyers on one platform increases. According to the Association of Association of ECommerce Companies [1], in 2022 its volume increased by 30% compared to last year. It is noteworthy that the turnover of e-commerce is increasing against the backdrop of a reduction in household income and a fall in the entire retail trade. The share of sales through domestic trading platforms was 96.4% compared to 87% at the beginning of 2022. The share of online retail in total retail sales was fixed at 11.6% against 9.2% at the beginning of 2022. The share of the largest marketplaces in the total volume of online sales increased to almost 40%. Internet commerce turned out to be one of the few sectors of the Russian economy that demonstrates explosive growth even against the backdrop of a general economic downturn. According to experts, the rapid expansion of online commerce in Russia will continue in 2023, including due to the reduction of traditional retail [1]. Awareness of the importance of the sustainable development concept is gradually coming to Russian retail. This ceases to be a trend, but becomes a basis of the company’s life, penetrating into all spheres of its manifestation: as a seller, partner, employer, an important member of society. The development and implementation of a sustainable development strategy for marketplaces is in itself a significant event, which must be announced and recorded in the relevant documents. Three marketplaces presented in Table 1 are leaders of the Russian e-commerce market, connecting thousands of sellers and millions of customers on their sites using innovative technologies and a developed logistics infrastructure. With the growth of the trading business, both the influence of marketplaces on the economics of the regions of presence and local communities increases, as well as the responsibility, including to sellers. The situation with an opaque system of fines and

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Table 1. GAP analysis of the implementation of the sustainable development strategy by marketplaces. Marketplace

Promise

Result

Ozon

Own agenda in 2021 Economic and community development Responsible business practices Talent and equal opportunity Environment

+Annual strategy implementation report − Pick-up points − Franchisees do not participate in the Ozon Recycle program

Wildberries

In 2019, the company signed a Memorandum on sustainable development and improvement of environmental practices under the auspices of WWF

− Fragile plastic bags are positioned as reusable − Lack of official reports and adherence to declared values − Lack of information about the possibility of recycling packaging − Problems of the employee motivation system

Yandex Market

Published the first sustainability report in 2021, presenting a list of ESG priority areas

+ Annual strategy implementation reports + Insurance program for temporary disability of partners (drivers and couriers) + Scaling up affordable and high-quality IT education and increasing social support for partners + Reduction of emissions through the use of pedestrian or bicycle couriers at the last stage of delivery − Gender gap (2%) of employee salaries

Source: author.

commissions, frequent changes in the offer, unreasonable shifting of logistical problems to partners is unacceptable. A resonant event was the strike of employees of the Wildberries pick-up points in March 2023, who protested against the deprivation of the right to challenge product substitutions. The change in the system of sanctions for sellers and pick-up points led to them receiving large fines [2]. An analysis of sellers’ feedback on their work on marketplaces also revealed their lack of confidence in the future. Marketplaces are oversaturated with sellers, which leads to price wars and destabilization of the trading business of small companies, which often use only this sales channel. The unresolved problem of marketplaces is the violation of the integrity of the packaging, errors in the formation of the order, and even uncompensated loss of goods. In this case, the seller bears the reputational risk. The reverse side of the increase in sales volumes and the marketing policy of marketplaces is the littering of the living spaces of buyers due to the formation of stocks of

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products purchased not out of necessity, but due to the suggestion that current promotions will not be repeated in the future. Frequent notifications in the mobile application about great offers provoke a number of spontaneous purchases, which cannot be considered as concern for the financial resources of consumers, and, as a result, environmental pollution problems. Another negative consequence of the increase in the number of orders is the accumulation of a large amount of packaging, which in many cases is difficult to refuse in order to avoid loss of quality during the transportation. Concern for consumers also manifests itself in the quality of marketplace systems. The convenience of creating a personal account, the ease of searching with the help of well-configured filters, professional support, and the reduction of system failures are important. Today, two of the largest market players are announcing the abandonment of plastic bags and the transition to biodegradable packaging. In the production of ecobags, a special component is used that accelerates the process of their decomposition. Unlike a conventional plastic bag, which decomposes up to 400 years, the destruction of an eco-bag occurs much faster [3]. However, in our opinion, it takes some time, in addition, the product is not durable and reusable. Regular purchase of eco-packages is beneficial for the marketplace, but this is not a full-fledged concern for the environment and does not take into account the desire of consumers to save financial resources. An analysis of the activities of Russian marketplaces revealed gaps between their officially announced plans and actual work in the field of sustainable development (Table 2). The results of the progress reports on the implementation of the marketplace sustainability strategy are difficult to verify in practice. Often, priorities are formulated as aspirations. That does not mean an accomplished action. For example, the report may present indicators on waste disposal, while there is no information on the share of waste generated by consumers indirectly through e-commerce services. From the report, you can learn about the increased turnover, profits and the number of entrepreneurs selling their goods using a specific marketplace, but information about changes in their motivation system is not provided. As noted earlier, the share of marketplaces in Russian e-commerce is increasing every year. The market power of these sites and their unprecedented popularity among consumers cause sellers to abandon their own online stores in favor of trading on the marketplace [4]. Thanks to this, the profit of trading platforms is steadily growing, and the same happens with the dependence of sellers and buyers from the marketplaces and their policy.

4 Discussion The multidimensionality of the implementation of the sustainable development strategy and the degree of its importance both for representatives of the business environment and for humanity as a whole are covered quite widely in scientific works and various professional resources. However, the topic of the implementation of non-financial goals in retail, traditionally considered from a commercial position, is poorly understood. The study established an unquenchable scientific interest in the problems of abandoning the use of plastic packaging. In Russia, this issue is very relevant despite the statements of marketplaces about the measures taken. Retailer X5 Group, in order to implement a

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Table 2. Solving problems of implementing a sustainable development strategy by marketplaces. Aspects of the concept of sustainable development

Problem

Solution

Packing for transportation from the warehouse to the pick-up point

Accumulation of a colossal volume and mass of cardboard and polyethylene left in garbage dumps

Arrange the collection, disposal or reuse of packaging Financial motivation of customers: accrual of bonus points to the consumer’s account Moral motivation of customers: the introduction of symbols of various consumer statuses from beginner to advanced, depending on the number of units of packaging handed over at the pick-up point

Offer for the customer of bags to carry goods from the pick-up point to home/office

Low awareness of customers Informing about the possibility and the possibility of of recycling plastic bags recycling plastic bags Using branded reusable bags (shoppers) for shopping Financial motivation of customers: savings by purchasing a more wear-resistant product that can be used repeatedly Moral motivation of customers: prints in the form of slogans that emphasize the environmental responsibility of the consumer

Caring for partners

Lack of strict requirements for the organization of pick-up points An adequate to the real responsibility of employees system of fines for violations of working rules

Standardize the requirements for the organization of the working space of the pick-up points of orders Financial motivation for partners: income preservation Moral motivation of customers and employees: comfort and aesthetics of space

Source: author.

sustainable development strategy, has developed guidelines for suppliers on sustainable packaging. Some of the provisions of these recommendations are universal in nature and, in terms of environmental friendliness and packaging sustainability, are applicable in other businesses. Deputy General Director of the Legal Center for Industrial Ecology D.M. Obukhova assumes that by ranking the packaging according to certain criteria

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(determining the requirements for the raw materials used by suppliers for packaging, the most/least preferred materials for the manufacture of packaging, packaging design in terms of the resource capacity, ease of involvement in circulation, etc.), it is possible to develop rating systems, ratings, rankings of suppliers for the needs of marketplaces and for entrepreneurs using the platform to sell their goods, to bring this information to consumers, etc. [5]. The educational issues of choosing eco-packaging as one of the human values are studied by P. Kautish, A. Paço, and P. Thaichon [6]. The nature of the relationship between values, beliefs and people’s behavior is studied by researchers [7] who argue that a deep understanding of this relationship forms a basis of updated recommendations for organizations to design and promote sustainable consumer behavior. The advantages and commercial potential of marketplaces are also described in the works of Russian scientists. So, I.V. Kordina and D.I. Khlebovich in their research come to the conclusion about the contradiction of goals with which participants come to the marketplace. The researchers emphasize the need to update understanding of the business model of marketplaces, which can contribute to achieving the consistency of interests [8]. E.S. Vorobeva, Z.A. Yusubova, and M.A. Gasanov consider the functioning of market places in the context of the digital transformation of the economy, the result of which is the network interaction of market entities in a single ecosystem [9].

5 Conclusion The conducted research confirms the desire of Russian marketplaces to comprehensively implement a sustainable development strategy. It is proposed to improve the activities of the Russian marketplaces in such areas of sustainable development as: collection, recycling and reuse of packaging designed to ensure the safety of the transported goods; increasing the awareness of customers about the possibility of recycling sustainable packaging; standardization, creation and control of maintaining favorable working conditions in the space of pick-up points of orders.

References 1. Association of E-Commerce Companies: Explosive growth of online commerce. https:// www.akit.ru/news/vzryvnoj-rost-internet-torgovli-na-fone-obshhego-spada. Last accessed 6 Apr 2023 2. Romanova T: How was the first day of the first ever strike of employees of the Wildberries PVZ. https://www.forbes.ru/biznes/486165-kak-prosel-pervyj-den-pervoj-v-istorii-zabast ovki-sotrudnikov-pvz-wildberries. Last accessed 4 Apr 2023 3. Wildberries switches to eco-packages. https://www.sostav.ru/publication/wildberries-perekh odit-na-eko-pakety-37440.html. Last accessed 3 Apr 2023 4. Murzak MM, Gumerova GI (2021) Why should Russian online stores be placed on marketplaces? Innovation Investment 4:144–146 5. Obukhova DM: Marketplaces and extended responsibility of the manufacturer, importer of goods, packaging of good. https://article.unipack.ru/87836/. Last accessed 8 Apr 2023 6. Kautish P, Paço A, Thaichon P (2022) Sustainable consumption and plastic packaging: relationships among product involvement, perceived marketplace influence and choice behavior. J Retail Consum Serv 67:103032

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7. Leary RB, Vann RJ, Mittelstaedt JD, Murphy PE, Sherry JF Jr (2014) Changing the marketplace one behavior at a time: perceived marketplace influence and sustainable consumption. J Bus Res 67(9):1953–1958 8. Kordina IV, Khlebovich DI (2021) Marketplace as a business model of e-commerce. Bull Baikal State Univ 31(4):467–477 9. Vorobeva ES, Yusubova ZA, Gasanov MA (2021) Development of marketplaces in the context of digital transformation as a result of structural shifts in the economy. Vestnik Universiteta 2:95–100

Potential of Marketing Development Through Social Networks for the Automotive Industry A. B. Vishnyakova(B)

and E. I. Zolotukhin

Samara State University of Economics, Samara, Russia [email protected]

Abstract. Currently, social networks are one of the key marketing tools, due to the wide spread of the Internet, a wide demographic spread (there are target audiences of any industry in social networks nowadays). That is why the activity in the social networks can be used to judge the intensity of marketing campaigns in general of certain enterprises, to draw conclusions about the key players in the industry at a certain point of time. The automotive industry is no exception in this regard. In this paper, the authors consider a problem of marketing in social networks of the automotive industry as one of the key indicators characterizing the marketing activity of certain representatives in general. The study described a set of indicators of social networks presenting a methodology for their calculation. Based on the industry research for 2022, conclusions were drawn about the main trends in the automotive industry market. In particular, the leadership of Chinese automakers (Haval, Geely, Changan Motors, Chery, etc.) in the media environment was confirmed which allows us to conclude that the presented brands have a large reserve of the marketing potential which can help them to take a leading position in the Russian automotive market in the face of existing sanctions and restrictions. Keywords: Automotive Industry · Internet Marketing · SMM · Social Networks

1 Introduction The largest automotive concerns, which are present on the Russian market, are necessarily represent in various social networks in one way or another [1]. But their activity has changed dramatically under the influence of the events of 2022: some car brands have reduced investments in social media marketing, some have completely frozen their activity in this environment. However, there are those who have only recently appeared on the market, and the activity of such brands in social media is maximum. The authors put forward a hypothesis that based on the analysis of key indicators of social networks (the number of subscribers, audience growth, engagement, audience coverage, etc.) one can draw conclusions about the marketing trends of the industry as a whole, taking into account the peculiarities of making marketing decisions in modern conditions [2]. The purpose of this work is to analyze the key indicators of social networks in the automotive industry in order to identify the main trends and build a forecast for the short term. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 147–153, 2023. https://doi.org/10.1007/978-3-031-38122-5_21

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2 Methodology In the course of the work, the authors used Livedune, the largest social network analytics service in Russia, with the help of which they obtained primary data on 18 automotive brands with a total audience of more than 3 million subscribers. In Table 1 we can see primary data obtained using the Livedune service. Table 1. Primary data available in the Livedune service. Indicator

Explanation of the indicator

Number of subscribers

Data was received at the end of each month in 2022

Organic reach of subscribers in VKontakte

Cumulative coverage separately for each month of 2022

Viral reach of the audience on VKontakte

Cumulative coverage separately for each month of 2022

Organic Reach on Instagram

Cumulative coverage separately for each month of 2022

Number of posts

Cumulatively for each individual month of 2022

Number of contests

Cumulatively for each individual month of 2022

Reactions

The total of audience reactions (likes, reposts, comments) for each month of 2022

Source: authors

Based on the primary data, a regression analysis was carried out which made it possible to obtain average annual values for each individual brand in a particular social network. Table 2 contains information about the key indicators of the activity in social networks and the calculation methodology. A parallel analysis of the interests of the audience was also carried out which was built as follows: in each analyzed account, 40 posts with the largest number of comments were identified in order to find out which information in automotive industry marketing most affects the target audience.

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Table 2. Key indicators of the activity in social networks and the calculation methodology. Indicator

Method of calculation

Audience Growth

(B – A)/C Where: B – the number of subscribers on the last date A – the number of subscribers at the start date C – number of months

Average monthly organic reach of subscribers per post on VKontakte

((CC/Q))/C) Where: CC – cumulative organic reach for the month Q – number of posts per month C – number of months

Average monthly viral reach of the audience with one post on VKontakte

((CC/Q))/C) Where: CC – cumulative viral coverage per month Q – number of posts per month C – number of months

Average monthly organic reach per post on Instagram

((CC/Q))/C) Where: CC – cumulative organic reach for the month Q – number of posts per month C – number of months

Average monthly posts

(Q)/C Where: Q – number of posts per month C – number of months

Average monthly number of contests

(Co)/C) Where: Co – number of contests per month C – number of months

Engagement rate (ER)

(R)/(C*Q)) Where: R – number of reactions per month C – number of months Q – number of posts

Source: authors

3 Results For the most relevant comparison of the obtained indicators, the accounts were divided into three categories, presented in Table 3. Large VKontakte accounts are mainly represented by the largest brands that have been on the market for a long time, such as KIA, Hyundai, Skoda, Volkswagen, Mazda. Similarly, the middle ones – Opel, Nissan, Mitsubishi, Toyota, Nissan, as well as a

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A. B. Vishnyakova and E. I. Zolotukhin Table 3. Automotive industry account categories.

Account size

Number of subscribers

Small

Up to 100 000

Medium

100 000–200 000

Large

200 000–440 000

Source: authors

relatively new brand – Exeed, fell into this category. In the category of small accounts, Russian and Chinese brands are more common: Haval, UAZ, Gelly, Changan Motors. The key metrics presented in Table 4 characterize the main trends in social media marketing in the automotive industry. Table 4. Key indicators of VKontakte accounts of the automotive industry on average for 2022. Indicator

Small

Medium

Large

Audience Growth

912

3 041

999

Subscriber Reach

5 258

6 171

13 414

Viral Reach

7270

8 596

10 506

Posts

22

21

17

Contests

0

0

1

ER

0,4%

0,22%

0%

Source: authors

According to the accompanying study of the interests of the audience based on the posts with the largest number of comments, it turned out that the posts with contests obviously evoke the greatest response, the authors excluded them from the analysis, for all other topics the distribution is as follows (Table 5): As a result of the study, a clear trend was found: the largest automotive brands have significantly reduced their activity in the social networks. We make this conclusion based on the data on the number of posts: in medium and small accounts, in which Russian and Chinese brands that have recently appeared on the market, the number of posts is equal 21–22 posts per month on average, while in large accounts, represented by the once market leaders, the figure is 17 posts per month. The growth of the audience in large accounts is almost equal to the growth in small ones (999 monthly subscribers and 912, respectively). The leaders in average growth were medium accounts (3,041 monthly subscribers), but it is worth noting that this indicator is high thanks to the Exeed brand, which showed an average increase of 15,338 subscribers per month in 2022. Large accounts lead only in terms of coverage, with an average margin of 40%, while the audience of the accounts themselves is higher by an average of 110%. In VKontakte accounts of large brands, zero engagement is visible, while the ER value in small and medium-sized accounts ranges from 0.22% to 0.44%, which is also not a high

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Table 5. Topics of posts with the highest level of audience engagement. Content of posts

Share of comments

About the product (no promotion)

55,01%

Events and activities

16,53%

Interactive post (gamification)

15,58%

Posts with influencers

5,35%

About company

3,45%

Helpful advice

2,39%

Promotion

1,17%

Industry trends

0,51%

About employees

0,01%

Source: authors

figure, but this effect could have arisen due to a sharp increase in the audience in small and medium-sized accounts and middle communities. Thus, we can definitely conclude that the marketing activity of the once market leaders, the largest automotive brands, has sharply decreased, and soon new representatives of the automotive industry from China will take their place. In the media environment, they are only significantly competed by the domestic manufacturers, but their target audience is much narrower, and therefore such players as Haval, Geely, Changan Motors, Chery, etc. feel quite confident and occupy leadership positions in terms of marketing communications. Despite the fact that all over the world the thesis «made in China» causes distrust in quality, which negatively affects the premium segment of Chinese cars in particular [3], but everything may change soon.

4 Discussion Contemporary researchers are of the opinion that the use of social networks is a necessary part of the marketing of any large company. G. Cao and J. Weerawardena in their work on the strategic aspect of social networks talk about the possibility of using them to connect with the market and most effectively use production enterprise capacity [4]. In the study by I. Khan, as a result of social surveys, a direct relationship was established between the mechanism for building a brand’s reputation and its activity in the social networks, in addition, the researcher found out that the degree of sophistication of social media accounts influences the consumer’s decision to purchase a product [5]. It is well known that one of the most important functions of marketing is to increase sales. Social networks cope with this task quite well: when analyzing data from a large online store, it turned out that that active advertising campaigns in social networks can increase not only the traffic to the site, but also direct sales of products [6]. All this together confirms the thesis of the authors about the expediency of judging the intensity of the marketing activity of representatives of the automotive industry according to the degree of its manifestation in the social networks.

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A. B. Vishnyakova and E. I. Zolotukhin

Separately, it is worth mentioning the key trends in the automotive market in Russia in 2022. The market capacity decreased by 2.5 times as a result of the departure of a large number of brands. At the end of the year, the market structure lined up as follows: out of 12,000 cars sold on the Russian market for 51 weeks (from December 19 to 25), 70% were Russian and Chinese cars, and almost in equal shares [7]. However, cars of Russian and Chinese production mainly occupy different price segments of the market. The development of intelligent production systems and support for the entire life cycle of a product in a digital environment is becoming the main condition for the development of the industry as a whole [8].

5 Conclusion The authors believe that the current trends in the automotive market will lead to its structural transformation, it is possible that manufacturers who have completely or partially left the market will attempt to return to Russia, but this will be much harder than it was in the 1990s years, when only domestic cars could compete with them. Now all segments, from mass to premium, will be represented by a large number of brands, mainly Chinese ones. Besides, in the course of the authors’ parallel study, it was determined which topics of marketing communications in the automotive industry cause the greatest audience involvement: the absolute leader was product posts (51.01%), which showcase the company’s products (cars), followed by events and activities that account for 16.53% of all comments, followed by interactive posts with gamification (15.58% of all comments). The audience shows maximum activity directly to the products, they are little interested in information about the activities of the manufacturing company, its employees, and even content together with famous personalities does not bring much involvement. The most interesting fact was the low attention of the audience to existing promotions, this may be evidence of two factors: promotions offered by automakers do not meet the interests of the audience; the audience is not very sensitive to the price and is ready to purchase cars at existing prices. Now the automotive industry in Russia is on the verge of a new stage, in the period from 2023 to 2024 the structure will settle down and will probably remain in this state for a long time.

References 1. Bao X, Sun B, Han M, Lin H, Lau RYK (2023) Quantifying the impact of CEO social media celebrity status on firm value: Novel measures from digital gatekeeping theory. Technol Forecast Soc Change 189:122334 2. Nordin F, Ravald A (2023) The making of marketing decisions in modern marketing environments. J Bus Res 162:113872 3. Bartikowski B, Fastoso F, Gierl H (2019) Luxury cars made-in-China: consequences for brand positioning. J Bus Res 102:288–297 4. Cao G, Weerawardena J (2023) Strategic use of social media in marketing and financial performance: the B2B SME context. Ind Mark Manage 111:41–54 5. Khan I (2022) Do brands’ social media marketing activities matter? A moderation analysis. J Retail Consum Serv 64:102794

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6. Dolega L, Rowe F, Branagan E (2021) Going digital? The impact of social media marketing on retail website traffic, orders and sales. J Retail Consum Serv 60:102501 7. The ruins of the Russian auto industry: How the car market survived the largest collapse since the beginning of the century. https://v1.ru/text/auto/2023/01/02/71935643/. Accessed 20 Mar 2023 8. Vishnyakova AB, Sultanova AV, Voropaeva VV (2022) Modernization and development of the machine-building complex in the digital economy. In: Ashmarina SI, Mantulenko VV (eds) Digital technologies in the new socio-economic reality. ISCDTE 2021. Lecture Notes in Networks and Systems, vol 304, pp 443–450. Springer, Cham https://doi.org/10.1007/978-3030-83175-2_55

Problems of Risk Assessment in the Implementation of Innovation and Construction Projects S. V. Domnina1(B)

, E. V. Savoskina2

, and N. A. Solopova3

1 Samara State University of Economics, Samara, Russia

[email protected]

2 Moscow Innovative University, Moscow, Russia 3 Moscow State University of Civil Engineering, Moscow, Russia

Abstract. Starting from 2020 the situation in the world has changed significantly, the arrangement of factors, constraining the adaptation of enterprises to changing conditions, generating risks of innovation and construction projects in 2022 has also changed. The presented research is based on the results about innovation decisions in the investment and construction cycle and evaluation of risk probability depending on the description of innovation project, the classification of innovation project risks has been developed which distinguishes twenty seven risk types by the stages of the innovation project «development», «market entry», «maturity and realization stage» for financial risks and separately for economic risks, «development and maturity stage» for legal risks and also social risks. The classification was used as the basis for a matrix of «innovative solutions – innovative risks» events. The assessment of the probability of occurrence of the main risks on the basis of the methodology of ranking criteria, allowed to estimate the average probability of risks for design, process, service and organizational innovative solutions. The final stage of the research work was to calculate the level of impact of the nine main factors, based on an analytical hierarchical procedure, on the risk generation of each priority group. Keywords: Decisions · Factors · Innovation · Innovation Risk · Probability · Project · Risk Assessment Methods

1 Introduction The development of market relations in Russia has defined innovation activity as the current direction of companies’ development. In turn, the effectiveness of innovation activities directly depends on the accuracy of risk assessment and management. Innovation risk is a measurable probability (threat) of loss of part of the resources, shortfall or loss of the planned income (profit) from the innovative project, the value of the portfolio of financial assets or the emergence of additional costs. In the depressed phase, innovative projects are particularly relevant, as they will be implemented during the period of maximum aggregate macroeconomic variables. This is © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 154–163, 2023. https://doi.org/10.1007/978-3-031-38122-5_22

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why, in this era of crisis, it is important to implement investment and construction projects while taking into account possible risks. Thus, today the problem of more precise evaluation of risks in realization of innovation and construction projects is becoming urgent. However, the existing methods for analyzing the risks of such projects are unidirectional and can be used in specific situations: – when assessing incomplete research developments (Delphi method); – when bringing the project to competitive superiority (method of scenarios or decision tree [1]. Under conditions of asymmetric information and uncertainty, it is necessary to develop a comprehensive method of assessment based on a combination of different methods of risk assessment, which will allow to more accurately consider the possible consequences and to take timely corrective or even preventive actions. The aim of the presented research work is to develop qualitative methods of expert risk assessment of innovation and investment projects through the synthesis of methods by T.L. Saaty and L.G. Vargas, ranking, scenario and event-driven innovation decisions [2]. This is essential for assessing and ranking the impact of risks on the implementation of innovative construction projects.

2 Methodology The work uses basic general scientific research methods: a literature analysis; process and project approaches; comparative analysis; methods of statistical analysis, tabular and graphical representation of data; methods of scenarios, ranking, methods by by T.L. Saaty and L.G. Vargas [2]. Methods of economic-mathematical modeling allowed carrying out an assessment of the probability of risks on the changes of the project risks themselves, innovative solutions, taking into account the scenario and eventfulness depending on one or another innovative solution.

3 Literature Review The issues of assessing innovation risks are considered in the works of domestic and foreign scientists. S.V. Pupentsova and I.I. Ponyayeva investigate methods of innovative project risk assessment based on the synthesis of methods [1], including the use of the hierarchy analysis [2]. Other researchers also propose to assess the risks of innovative character with the help of combined methods, using, among other things, expertanalytical methods. Thus, S.V. Pupentsova and M.G. Livintsova propose to evaluate the investment attractiveness of real estate using qualimetric modeling methods [3]. I.I. Ponyayeva recommends using cognitive decision support systems on the basis of digital technologies of advanced business analytics [4]. O.A. Boris, V.N. Parakhina, E.Yu. Rebiy, P.N. Timoshenko, and G.S. Shelkoplyasova suggest using models to choose the strategy of innovative development of the complex, taking into account its management, structure and policy [5]. When implementing construction projects, O.A. Babordina, M.P. Garanina, P.A. Garanin, and E.K. Chirkunova recommend to use the project management method and digitalization [6]. I. Ivanov, T. Lukyanova, and L. Orlova

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also suggest using digitalization method [7]. N. Dalevska, V. Khobta, A. Kwilinski, and S. Kravchenko developed a model for assessing social and economic indicators of sustainable development [8]. Recently, there have been studies related to the use of a neural network [9], dynamic Bayesian networks to assess the effectiveness of investment projects [10]; methods of fuzzy modeling in risk assessment of investment and construction projects [11]; methods of game theory and expansion, taking into account factors that cause disasters in the construction process [12]; combined methods of dynamic weighting [13]. The presented research is aimed at the development of qualitative methods of expert risk assessment of innovation and investment projects through the synthesis of methods by T.L. Saaty and L.G. Vargas [2], ranking, scenario and eventfulness depending on one or another innovation decision.

4 Results First, we consider it necessary to give the author’s classification of risks of investmentconstruction project. Undoubtedly, when implementing an innovative project in construction, research and development risks associated with the development of the innovation itself may arise. Here are formed the risks associated with the wrong directions of R&D, scientific and technical risks and the risks associated with the fact that the project will not be original. These risks arise at the first stage of development of the innovation project. Further, at the stage of project development, technological risks may arise due to the possibility of increasing the period of mastering innovations, possible functional obsolescence of innovations, ahead of innovative developments of competitors or their development of more effective innovations. The implementation and maturity stages are characterized by financial and economic risks. Their types are shown in Table 1. And, of course, efforts and funds should be spent at the stage of development and maturity to protect intellectual rights from competitors. However, losses may arise due to insufficient protection of patent property (inventions, utility models, industrial designs), means of individualization (trademarks, appellations of origin and geographical indications, commercial designations); due to imperfect legislation in the field of copyright, as well as due to imitation and falsification of innovations by competitors. The generalized classification of risks of innovation and construction projects is reflected by groups and types of risks with a link to the stages of development of innovation projects, which gives a reduction in the volume of calculations and control measures in the process of assessing risk events, allowing to focus on certain types of risks. In previously published work in which the authors of this study participated [14], innovative solutions were classified into: project-based innovation solutions (Project ID); process innovation solutions (Process ID); service innovation solutions (Service ID); organizational innovation solutions (Org ID). When combining these solutions with the groups of risks proposed by the authors, we can obtain the matrix of events «innovative solutions – innovative risks», presented below in Table 1. At the same time, for each pair of «innovative solutions – innovative risks» the value of the probability of occurrence was determined for three scenarios: – pessimistic (V

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Table 1. Probability of occurrence of the main risks in the matrix «innovative solutions – innovative risks». Risk

Probability of risks for innovative solutions Project ID

Process ID

Service ID

Org ID

Average probability

«Development» stage Research risks (RR) R1. Incorrect direction of research and development

V (E1) = 85,39

V (E2) = 94,38

V (E3) = 73,87

V (E4) = 26,98

70,15

R2. Scientific and technical risk

V (E5) = 92,37

V (E6) = 74,76

V (E7) = 57,96

V (E8) = 27,19

63,07

V (E10) = 79,10

V (E11) = 58,23

V (E12) = 27,50

62,25

R3. Lack of V (E9) = project originality 84,20 «Launch to market» stage Technological risks (TR) R4. Functional obsolescence of innovations and technologies

V (E13) = 75,37

V (E14) = 63,94

V (E15) = 58,52

V (E16) = 48,19

61,50

R5. Increase of the period of absorption of innovations

V (E17) = 96,04

V (E18) = 86,86

V (E19) = 62,78

V (E29) = 59,48

76,29

R6. Outpacing innovative developments of competitors

V (E21) = 95,76

V (E22) = 82,94

V (E23) = 56,45

V (E24) = 26,19

65,33

R7. Development by competitors of more efficient innovations

V (E25) = 82,63

V (E26) = 80,30

V (E27) = 83,23

V (E28) = 57,84

76,00

R8. Construction risks

V (E29) = 98,30

V (E30) = 80,75

V (E31) = 50,97

V (E32) = 41,38

67,85

V (E35) = 83,14

V (E36) = 87,167

45,65

«Maturity» and «Realization» stages Financial risks (FR) R9. Increase in V (E33) = the cost of project 2,04 implementation

V (E34) = 10,26

(continued)

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S. V. Domnina et al. Table 1. (continued)

Risk

Probability of risks for innovative solutions

Average probability

Project ID

Process ID

Service ID

Org ID

R10. Decrease of income from the project

V (E37) = 93,70

V (E37) = 98,09

V (E39) = 65,83

V (E40) = 24,73

70,58

R11. Errors in forecasting of financial situation of the market

V (E41) = 77,45

V (E42) = 71,39

V (E43) = 49,91

V (E44) = 23,56

55,57

R12. Compensation of damages caused to citizens

V (E45) = 79,37

V (E46) = 89,32

V (E47) = 37,34

V (E48) = 36,81

60,71

R13. V (E49) = Compensation for 98,40 damage from environmental pollution

V (E50) = 86,25

V (E51) = 61,11

V (E52) = 24,52

67,57

V (E53) = 86,46

V (E54) = 73,27

V (E55) = 59,46

V (E56) = 28,24

46,99

R14. Risk of non-repayment of borrowed funds

«Maturity» and «Realization» stages Economic risks (EconR) R15. Instability of V (E57) = economy 74,83

V (E58) = 73,75

V (E59) = 46,25

V (E60) = 34,86

57,42

R16. Marketing risk

V (E61) = 66,73

V (E62) = 65,9

V (E63) = 53,37

V (E64) = 52,89

59,72

R17. Personnel risk

V (E65) = 41,6

V (E66) = 46,35

V (E67) = 79,36

V (E68) = 61,74

57,26

R18. Foreign economic risk

V (E69) = 89,34

V (E70) = 89,62

V (E71) = 72,28

V (E72) = 62,12

78,34

R19. Risk of failure to receive external investments

V (E73) = 68,31

V (E74) = 58,92

V (E75) = 52,57

V (E76) = 51,61

57,85

«Development» and «Maturity» stages Legal risks (LR) (continued)

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Table 1. (continued) Risk

Probability of risks for innovative solutions

Average probability

Project ID

Process ID

Service ID

Org ID

R20. Insufficient protection of patent property objects

V (E77) = 56,34

V (E78) = 62,87

V (E79) = 57,21

V (E80) = 51,65

57,01

R21. Insufficient protection of means of individualization

V (E81) = 7,20

V (E82) = 4,5

V (E83) = 6,28

V (E84) = 35,62

13,40

R22. Imperfection V (E85) = of the legislation 17,37 in the field of copyright

V (E86) = 47,5

V (E87) = 47,11

V (E88) = 27,37

34,83

V (E89) = 52,45

V (E90) = 58,24

V (E91) = 51,89

V (E92) = 59,26

55,46

R24. Political instability

V (E93) = 83,37

V (E94) = 48,6

V (E95) = 49,5

V (E96) = 39,19

55,16

R25. Military problems

V (E97) = 90,52

V (E98) = 72,52

V (E99) = 68,4

V (E100) = 61,37

73,20

R26. Social instability

V (E101) = 63,68

V (E102) = 56,43

V (E103) = 38,76

V (E104) = 32,90

47,94

R27. Legislative risk

V (E105) = 3,75

V (E106) = 43,74

V (E107) = 27,68

V (E108) = 74,243

37,35

R23. Imitation of innovations by competitors All stages Socio-political risks (SPR)

Source: authors

PS); – expected (V ES); – optimistic (V OS). The conditional probabilities that event one (E1) «innovative solutions – innovative risks» occurs are: V PS(E1) = 40% or 0.4; V ES(E1) = 40% or 0.4; V OS(E1) = 20% or 0.2. Then by Eq. (1) of the full probability we obtain the probability of the event E1: V(E1) = VPS ∗ VPS(E1) + VES ∗ VES(E1) + VOS ∗ VOS(E1)

(1)

Similarly, calculations were performed for each event – E1 –E108. Identification of risks in innovative activity began with an assessment of the level of influence of risks on the volume of capital investments of the customer-developer in the creation of an innovative product, which was carried out on the basis of the methodology of ranking criteria. Determination of specific weight of each risk on the basis of

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their ranking by type of innovative solution: design, process, service and organizational innovative solutions. The three scenarios described above – B1, B2, and B3 – were also taken into account. All calculations were prepared, analyzed and visualized by the authors on the basis of Excel tools. Probabilities of risks in the investment and construction complex are grouped by innovative solutions. Table 1 contains the final data obtained in the course of calculations. The methodology of calculations is described in more detail in a previously published work of the authors [15]. Weights were assigned based on predictions, expert data [16]. The received data of probability of occurrence of the main risks show that in the current situation for the investment and construction project the most dangerous are such risks as P18 (foreign economic risk) – 78,34%, in aggregate with P25 (military operations) – 73,2%, they form the increase of probability of innovation development period (P5) up to 76,29%. The next stage of the research work was to identify the level of impact of factors on the generation of risks of each priority group. Further calculation will be carried out on controllable and uncontrollable factors of innovative activity, highlighting the nine main groups [17, 18]. At the initial stage, we determine the specific weight of the factor having an influence on the level of innovation risks of the project, we obtain the result: consumer demand (0.327), resource prices (0.227), organizational and management sustainability (0.154), technical condition of fixed capital (0.104), personnel qualification (0.07), changes in legislation (0.047), external borrowing and changes in credit conditions (0.032), stability of strategic business areas (0.022), political and social changes (0.015). The evaluation is carried out using the method of analytical hierarchical procedure [2]. Its main advantage lies in the matrix calculations, which allow to go to the traditional table of weights and points, with the analysts’ judgments are based on the possibility to compare the criteria and options for solutions in pairs, which greatly facilitates the justification of the conclusions made. After constructing a symmetric matrix, the obtained weights are normalized and represent the ready weighting values of each factor. Having initially distributed the factors, we obtain that the factors of the first group, the drivers of innovation in construction, include: S1 – 0.327; S2 – 0.227; S3 – 0.154. Further research is based on calculating the weights of each risk group for each factor. An example of the calculations is given in Table 2. A similar calculation was carried out for each factor, and the data are summarized in the graph (Fig. 1). A similar calculation was carried out for each factor. Analyzing the results, we can identify the risk factors that have a dominant influence on the level of innovation risk of the project. The graph shows that socio-political risks are most influenced by political instability, military actions – 0.42 (42%). The level of staff qualification almost equally affects the financial risk – 33%, technological – 32% and scientific-research – 27%. Financial risk is also affected by such factors as external borrowings and changes in credit conditions – 61%. The most significant risk-forming factor for scientific and research work becomes three main factors, these are qualification of personnel (27%),

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Table 2. Assessment of the impact of factor S1 on risk groups. S1

RR

TR

FR

EconR

NIR

1,00

6,00

4,00

3,00

TR

0,17

1,00

0,20

0,13

FR

0,25

5,00

1,00

EconR

0,33

8,00

UR

0,20

6,00

SPR

0,33

Amount

2,28

LR

SPR

Calculation

Impact on risk

5,00

3,00

3,20

0,40

0,17

0,33

0,25

0,03

7,00

0,50

0,33

1,06

0,13

0,14

1,00

0,25

0,50

0,60

0,08

2,00

4,00

1,00

0,20

1,11

0,14

3,00

3,00

2,00

5,00

1,00

1,76

0,22

29,00

10,34

17,13

11,92

5,37

8,00

1,00

Source: authors

1.00 0.08 0.90 0.80

0.08

0.05

0.11

0.09

0.02 0.02 0.04

0.06

0.03 0.33

0.20 0.47

0.25

0.36

0.15

0.32 0.22

0.20

Factor influence coefficient for legal risks

0.21

Factor influence coefficient on economic risks

0.19

Factor influence on financial risks

0.17

Factor influence coefficient for technological risks

0.12

0.13

0.04 0.06

0.09

0.10

S7

S6

0.17 0.07

0.16

Coefficient of influence of the factor on research risks

S9

S8

0.11 0.44

0.09

Coefficient of influence of the factor on socio-political risks

0.13

0.28

0.16 0.10

0.00

0.03 0.06

0.61

0.13

0.30

0.10

0.14

0.14 0.37

0.40

0.10

0.18

0.60 0.50

0.17

0.09

0.42

0.70

0.08

0.27

S5

0.24

S4

0.25

S3

0.01 S2

S1

Fig. 1. Graph of the final value of the weight of the influence of the factor for each type of risk (Source: authors).

changes in legislation (24%) and external borrowing and changes in credit conditions (24%).

5 Conclusions Summing up, we can say that the mathematical justification of risk assessment, on the one hand, allows to expand the evidence base of the calculations made, on the other hand - to get an additional opportunity to recheck and confirm the judgments made in

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the practical activity of the organizations. It is obvious that the proposed procedure of selection, description and evaluation of risk forming factors requires a more complex elaboration, however already at this stage it will allow further. – identify sets of independent risk-forming factors that have a critical impact on the results of the innovation project; – to evaluate the probability of occurrence and threat level of each of the factors; – to analyze the sensitivity of the results of the project in case of a successive change of the critical factors; – to choose the best option for managing each type of innovation risk: accept, evade, reduce, transfer. Thus, it will be possible to pay timely attention to the process of change management in managing innovation risks and to apply timely measures of corrective or preventive influence.

References 1. Pupentsova SV, Ponyayeva II (2020) Risk assessment of an innovation project based on the synthesis of methods of fuzzy sets and analysis of hierarchies. Sci Tech Bull St. Petersburg State Poly Univ Econ Sci 13–6:66–78 2. Saaty TL, Vargas LG (2012) Models, methods, concepts & applications of the analytic hierarchy process. International series in operations research & management science, vol 175. Springer, Boston https://doi.org/10.1007/978-1-4614-3597-6 3. Pupentsova SV, Livintsova MG (2018) Qualimetric assessment of investment attractiveness of the real estate property. Real Estate Manage Val 26–2:5–11 4. Ponyayeva II (2020) Cognitive decision support systems based on digital technologies of advanced business intelligence. In: Rodionov DG, Babkin AV (eds) Clustering the Digital Economy: Global Challenges 2020, vol 2. Polytechnic University, St. Petersburg, pp 332–338 5. Boris OA, Parakhina VN, Rebiy E, Timoshenko PN, Shelkoplyasova GS (2020) Generating models for innovation development strategy of the industrial complex with references to its management, structure and policies. In: Popkova EG (ed) Growth poles of the global economy: emergence, changes and future perspectives 2020, LNNS, vol 73. Springer, Cham, pp 615–625 https://doi.org/10.1007/978-3-030-15160-7_62 6. Babordina OA, Garanina MP, Garanin PA, Chirkunova EK (2020) Digitalization and project management method in improving efficiency of drilling wells construction. In: Ashmarina SI, Mantulenko VV, Vochozka M (eds) Engineering economics: decisions and solutions from eurasian perspective 2020, LNNS, vol 139. Springer, Cham, pp 315–330 https://doi.org/10. 1007/978-3-030-53277-2_42 7. Ivanov I, Lukyanova T, Orlova L (2020) Digitalization as a driver of innovation for industrial enterprises. IOP Conf Ser: Mater Sci Eng 753–7:59–68 8. Dalevska N, Khobta V, Kwilinski A, Kravchenko S (2019) A model for estimating social and economic indicators of sustainable development. Entrepr Sust Issues 6–4:1839–1860 9. Jin X, Liu Q, Long H (2021) Impact of cost–benefit analysis on financial benefit evaluation of investment projects under back propagation neural network. J Comput Appl Math 384:113172 10. Lytvynenko V et al (2020) Dynamic bayesian networks application for evaluating the investment projects effectiveness. In: Babichev S, Lytvynenko V, Wójcik W, Vyshemyrskaya S (eds) International scientific conference «intellectual systems of decision-making and problems of computational intelligence» 2020, AISC, vol 1246. Springer, Cham, pp 315–330 https://doi. org/10.1007/978-3-030-54215-3_20

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Development of a Graphic Editor for Engineering Needs E. A. Kharitonov1

and D. V. Kharitonova2(B)

1 Samara State Technical University, Samara, Russia 2 Samara State University of Economics, Samara, Russia

[email protected]

Abstract. This work considers the significance of engineering graphics for modern engineering needs. The important role of studying engineering graphics for students of engineering specialties is noted, that is confirmed by the analysis of studies of international researchers. The study is of a practical nature, in relation to that the research purpose is to create a software product in the format of a graphic editor to meet engineering needs. It is assumed that the developed graphic editor should perform a number of functions: selection, placement on the screen and visualization of primitives from a given set; synthesis of more complex figures; selection of any object displayed on the screen; selection of any object on the screen and its removal. The program was developed on the Sharp Developer v4.4 platform. According to the results of the study, it can be concluded that the goal has been achieved. The developed software product performs all the designated functions. Keywords: Engineering Education · Engineering Graphics · Graphics · Graphic Editor · Software Product

1 Introduction Any engineering idea begins with its visualization. Sketches are made, schemes and diagrams are built. It has long ceased to carry out graphic work in a purely paper format. Hand-made drawings were replaced by electronic ones, made using digital technologies. It is important to understand that the creation of graphic objects in the electronic format implies the availability of not only technical equipment, but also the corresponding software product. In the work programs of many engineering specialties, there are disciplines in engineering graphics, which confirms the importance of computer graphics in engineering. The purpose of this work is to create a software product in the format of a graphical editor to meet engineering needs.

2 Methodology Based on all of the above, the task was to develop a program for an object-oriented graphic editor that provides the following main functions: – selection, placement on the screen and visualization of primitives from a given set; © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 164–177, 2023. https://doi.org/10.1007/978-3-031-38122-5_23

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– synthesis of more complex figures with the help of set-theoretic operations both on primitives and on previously synthesized figures; – selection of any object displayed on the screen and performance of any sequence of geometric transformations on it from a given set in interactive mode; – selection of any object on the screen and its removal. In accordance with the task, it is necessary to implement: 1.BZ – Bézier curve. 2.Rc – Rotate around a given center by an arbitrary angle. 3.Mc – Mirror reflection about a given center. 4.Syf – Scaling along the Y axis relative to the center of the figure. 5. ∪ – Association. 6. ⊕ – Symmetric difference. The program was developed on the Sharp Developer v4.4 platform.

3 Results To implement the creation of figures, their transformation and the performance of settheoretic operations, it is necessary to create the basic functionality of the program with which we will work. The creation of a vector graphics editor should begin with modeling the program interface, to which we will strive. Following the instructions of the terms of reference on the main form, we create interactive PictureBox elements where we will display graphics, three elements for creating and three elements for converting shapes, elements for displaying and choosing a color for filling primitives, elements for displaying and choosing a color the borders of the figures, two elements for performing set-theoretic operations and two elements that display the selected figures. For a better perception of the workspace, the elements should be divided into blocks. To implement the creation of primitives and transformations over them, we need to create a foundation on which everything will be built. To begin with, we will divide the program into elements that will interact with each other. The main one will be MainForm.cs which combines the drawing helper file DrawHelper.cs with the figure creation core FiguresCore.cs, the properties of each figure Figures.cs and the operations performed on the figures, Operations.cs and MatrixN.cs. We will also use Resources.resx to render the interface. In DrawHelper.cs we add resources for each interactive element. So, we can create an hover event on the button and the inability to click on it. Static ResourceManager resources = new ResourceManager(“Paint_10.__ GoldCollection.Resources”, Assembly.GetExecutingAssembly()); public readonly static Bitmap mainFrameCanvas = (Bitmap) resources.GetObject(“mainFrameCanvas”);

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public readonly static Bitmap resources.GetObject(“opButtonWarm”);

opButtonWarm

=

(Bitmap)

We implement button click events. The button groups, we split them into in the previous step, call their event handlers. figBut1.Click += delegate {createFigureMode(1);}; figBut2.Click += delegate {createFigureMode(2);}; figBut3.Click += delegate {createFigureMode(3);}; opBut1.Click += delegate {OperateFigure(1);}; opBut2.Click += delegate {OperateFigure(2);}; opBut3.Click += delegate {OperateFigure(3);}; TMObut1.Click += delegate {doTMO(1);}; TMObut2.Click += delegate {doTMO(2);}; In addition, it is necessary to process the mouse positions. bool lMDown = false; MouseEventHandler mouseDownHandler = delegate(Object o, MouseEventArgs e) { lMDown = true; triggerMousePosChange(e.Location); }; MouseEventHandler mouseUpHandler = delegate(Object o, MouseEventArgs e) { lMDown = false; }; mainFrame.MouseDown += mouseDownHandler; mainFrame.MouseUp += mouseUpHandler; MouseEventHandler mouseMoveHandler = delegate(Object o, MouseEventArgs e) { if(lMDown) triggerMousePosChange(e.Location);}; mainFrame.MouseMove += mouseMoveHandler;

Creation of primitives is implemented hierarchically. We set the main parameters in the Fgr class, where we create an array of controllers to manage the figure. Such an array will allow us to display the parameters of the figure (width, height, etc.) when it is created, while each primitive will implement its own parameters.

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public class Fgr { protected List paramControls; protected List points; protected List originalCoords; public String name; public virtual bool TMOEnabled { get { return true; } } public Pen borderPen; public Pen fillPen; public bool drawBorder = true; public bool fill = true; public bool visible = true; public List Points { get { return points; } set { points = value; } }

To display the sizes of individual elements of a shape, as well as its name, as mentioned earlier, you need to create controllers. Textbox implementation: public static void createTBController(out TextBox cTB,String text,int otstupVverh){ cTB = new TextBox(); cTB.Text = text; cTB.TextAlign = HorizontalAlignment.Center; cTB.Size = new Size(150,25); cTB.Location = new Point(contrCanvSize.Width 152,contrCanvSize.Height - otstupVverh); cTB.BorderStyle = BorderStyle.None; cTB.ForeColor = Color.Black; cTB.BackColor = Color.White; setControlUnfocusOnEnterPess(cTB); }

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Label realization: public static void createNumericTBController(out Label label,out TextBox contrTB,String labelText,String ctbText,int otstupVverh){ label = new Label(); label.Text = labelText; label.TextAlign = ContentAlignment.MiddleLeft; label.BackColor = Color.Transparent; label.Size = new Size(100,25); label.Location = new Point(contrCanvSize.Width 153,contrCanvSize.Height- otstupVverh - 6); label.ForeColor = Color.Black; TextBox cTB = new TextBox(); contrTB = cTB; cTB.Text = ctbText; cTB.TextAlign = HorizontalAlignment.Center; cTB.Size = new Size(50,25); cTB.Location = new Point(contrCanvSize.Width ,contrCanvSize.Height - otstupVverh); cTB.ShortcutsEnabled = false; cTB.BorderStyle = BorderStyle.None; cTB.ForeColor = Color.Black; cTB.Font = new Font(cTB.Font,FontStyle.Bold); cTB.BackColor = Color.White;

-

53

setControlUnfocusOnEnterPess(cTB); setTextBoxNumericOnly(cTB); }

Associated with Fgr are the EdtFgr and Spline classes. Fgr defines common parameters for the three shapes, but splines and the other two realizable shapes have a number of differences. To create a spline, we define our own method, so we directly add the Fgr properties to the Spline class. public class Spline: Fgr EdtFgr combines the properties of figure 2 and figure 3. public abstract class EdtFgr: Fgr Although they have common parameters, they still have some characteristics that are different, so we create our own class for each primitive. Here we define the position of the created primitive relative to the PictureBox.

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public class Figure2 : EdtFgr { public Figure2(String name,int wight, int height) :base(name,wight,height) { } public override void initParams(int weight,int height){ base.initParams(weight, height); fgrParams.Add("Rectangle Height",height/2); fgrParams.Add("Rectangle Width",weight/2); } public override void recalculateShape(){ Size sz = getWightHeight(); Point c = DrawHelper.ConteinerCenter; int wd2 = sz.Width/2; int hd2 = sz.Height/2; int prH = fgrParams["Rectangle Height"]; int prW = fgrParams["Rectangle Width"]; points = new List(){ new Vertex( c.X - wd2, c.Y + hd2), new Vertex( c.X - prW/2, c.Y - hd2 + prH), new Vertex( c.X - prW/2, c.Y - hd2), new Vertex( c.X + prW/2, c.Y - hd2), new Vertex( c.X + prW/2, c.Y - hd2 + prH), new Vertex( c.X + wd2, c.Y + hd2)}; CycleConnection();}} and public class Figure3 : EdtFgr { public Figure3(String name,int wight, int height) :base(name,wight,height) { } public override void initParams(int weight,int height){ base.initParams(weight, height); fgrParams.Add("Rectangle Height",height/2); fgrParams.Add("Rectangle Width",weight/2);} public override void recalculateShape(){ Size sz = getWightHeight(); Point c = DrawHelper.ConteinerCenter; int wd2 = sz.Width/2; int hd2 = sz.Height/2; int prH = fgrParams["Rectangle Height"]; int prW = fgrParams["Rectangle Width "]; points = new List(){ new Vertex( c.X - wd2, c.Y + hd2), new Vertex( c.X - wd2, c.Y - hd2), new Vertex( c.X - prW/2, c.Y - prH/2), new Vertex( c.X + prW/2, c.Y - prH/2), new Vertex( c.X + wd2, c.Y - hd2), new Vertex( c.X + wd2, c.Y + hd2), new Vertex( c.X + prW/2, c.Y + prH/2), new Vertex( c.X - prW/2, c.Y + prH/2)}; CycleConnection();}}

CycleConnection with the help of a cycle creates a connection for each point for figure 2 and figure 3.

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protected void CycleConnection(){ for (int i = 0; i < points.Count - 1; i++) { points[i].NextConnections.Add(points[i+1]); } points[points.Count-1].NextConnections.Add(points[0]); }

We also create a dictionary, thanks to which we can display the parameters of the added figure, as well as interact with them by changing the values of one of the parameters that changes the shape of the figure. This is one of the main features that distinguishes splines from shapes. protected Dictionary fgrParams; public EdtFgr(String name,int weight,int height) :base(name) { fgrParams = new Dictionary(); initParams(weight,height); recalculateShape();} public virtual void initParams(int weight,int height){ fgrParams.Add("Width",weight); fgrParams.Add("Height",height); }

When creating a figure, the coordinates of the points are saved by the applyCoords method to the List points list we created. This will allow us not only to save the coordinates of the shape, but also creates the opportunity to go back one action. For example, when a figure is rotated, the coordinates of the points of the created figure are entered into applyCoords, preserving the initial position. If we apply a transform, the new coordinates are passed to this method and the PictureBox is updated. public void applyCoords(){ originalCoords = new List(); foreach (Vertex vert in points) originalCoords.Add(new Point(vert.X,vert.Y));

To return the initial position of the figure, we add a function that returns the coordinates entered in the buffer. public void resetCoords(){ (int i = 0; i < originalCoords.Count; i++). [i].setLocation(originalCoords[i]);} The next step is to define the border and fill colors of the shape. We also write here when they will be visible. This is controlled by interactive fill and border display elements. public static Color fillColor = Color.LightGray; public static bool fillEnabled = true; public static Color borderColor = Color.Black;

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public static bool borderEnabled = true; Next, we implement the selection of the figure. When clicking on a primitive, we need to understand which of the shapes is selected. To do this, we will draw the border with a dotted line. public static Pen selectPen1 = new Pen(Color.Cyan,2); public static Pen selectPen2 = new Pen(Color.Pink,2); static DrawHelper(){ selectPen1.DashStyle = DashStyle.Dash; selectPen2.DashStyle = DashStyle.Dash; }

Implementation of geometric transformations Geometric transformations are the main part of vector graphics editors. To interact with a shape, we must add it to the PictureBox and select it. To make it easier for us to determine the position of a given point, we will create the Ox and Oy axes, the intersection point of which is determined by the returned coordinates from pressing the cursor on the PictureBox. public static void drawXLine(int x){ mainGrafics.DrawLine(selectPen2,x,0,x,DrawHelper.ContainerSize.Height); mainForm.refreshImage();} public static void drawYLine(int y){ mainGrafics.DrawLine(selectPen2,0,y,ContainerSize.Width,y); mainForm.refreshImage();} public static void drawsPointLines(Point p){ drawXLine(p.X); drawYLine(p.Y); }

Let’s determine the initial parameters of the colors of the created figure. public static Color fillColor = Color.LightGray; public static bool fillEnabled = true; public static Color borderColor = Color.Black; public static bool borderEnabled = true;

Shape transformation is implemented through a transformation matrix. To do this, we create a three-dimensional matrix.

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public class MatrixN{ private int n; private float[,] mass; public MatrixN() { } public int N { get { return n; } public MatrixN(int dimentions){ n = dimentions; mass = new float[n, n];} public MatrixN(float x1,float y1,float z1, float x2,float y2,float z2, float x3,float y3,float z3) : this(3){ mass[0,0] = x1; mass[0,1] = y1; mass[0,2] = z1; mass[1,0] = x2; mass[1,1] = y2; mass[1,2] = z2; mass[2,0] = x3; mass[2,1] = y3; mass[2,2] = z3;}

We pass the coordinates of the vertices of the figure into it. The transformation is done through the multiplication of two matrices. With the help of a loop, we implement this multiplication. public static MatrixN umn(MatrixN a, MatrixN b){ MatrixN resMass = new MatrixN(a.N); for (int i = 0; i < a.N; i++) for (int j = 0; j < b.N; j++) for (int k = 0; k < b.N; k++) resMass[i, j] += a[i, k]*b[k, j]; return resMass; }

In order for the program to understand when we are doing a multiplication, we will create an overload in which we specify the “*” operator. public static MatrixN operator *(MatrixN a, MatrixN b){ return MatrixN.umn(a, b); }

Since we have three transformation methods, let’s create three methods for interacting with the matrix.

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Matrix displacement: public static MatrixN get2dMoveMatrixN(float x, float y){ return new MatrixN(1,0,0, 0,1,0, x,y,1); } Matrix rotation: public static MatrixN get2dRotateMatrixN(float degr){ degr = (float) (degr*Math.PI/180); float sinD = floatSin(degr); float cosD = floatCos(degr); return new MatrixN(cosD,sinD,0, -sinD,cosD,0, 0,0,1); } Matrix scale: public static MatrixN get2dFlipMatrixN(float flipX, float flipY){ return new MatrixN(flipX,0,0, 0,flipY,0, 0,0,1); }

These transformations are accessed by the Fgr class by changing the coordinates of the points of the selected figure. The transform button click handlers implemented in the previous steps call the OperateFigure function. Depending on the pressed button, a number is passed to it. void OperateFigure(int operNum){ Fgr opFgr = selectedFigure1; cancelOperation(); selectedFigure1 = opFgr; drawFigures(); mode = 2; switch(operNum){ case(1): selectedFigure1.createRotateControls(); break; case(2): selectedFigure1.createMirrorControls(); break; case(3): selectedFigure1.createScaleControls(); break; } refreshFace(); }

These transformations are accessed by the Fgr class by changing the coordinates of the points of the selected figure.

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public void rotateAroundPoint(Point p, float degr){ move(-p.X,-p.Y); applyTranfromMatrix(MatrixN.get2dRotateMatrixN(degr)); move(p.X,p.Y); } public void mirrorAbovePoint(Point p,int flipX,int flipY){ move(-p.X,-p.Y); applyTranfromMatrix(MatrixN.get2dFlipMatrixN(flipX,flipY)); move(p.X,p.Y); } public void scale(float scaleX,float scaleY){ PointF p = getCenterPoint(); move( -p.X,-p.Y); applyTranfromMatrix(MatrixN.get2dFlipMatrixN(scaleX,scaleY)); move(p.X,p.Y); }

Rotate around a given center by an arbitrary angle. By pressing the button responsible for rotating the shape around the specified center by an arbitrary angle, the createRotateControls method is called. This method first stores the initial coordinates with the applyCoords method, which was described earlier. Here we also refer to the rotateAroundPoint method, which transforms the shape. public void createRotateControls(){ applyCoords(); Point rotatePoint = new Point(new Size(DrawHelper.ConteinerCenter)); float rotateVal = 0; Action rotateAndDraw = delegate{ resetCoords(); rotateAroundPoint(rotatePoint,rotateVal); DrawHelper.mainForm.drawFigures(); DrawHelper.drawsPointLines(rotatePoint); }; rotateValueTBox.TextChanged += delegate { rotateVal = DrawHelper.numParse(rotateValueTBox.Text); rotateAndDraw(); DrawHelper.addMouseTargeter(rotateValueTBox,delegate(Point pos){ rotatePoint = pos; rotateAndDraw();}); rotateAndDraw(); addControl(label); addControl(rotateValueTBox); }

By pressing the button responsible for mirroring the shape around the specified center at an arbitrary angle, the createRotateControls method is called. We store the initial coordinates with the applyCoords method, which was described earlier. Here we also turn to the mirrorAbovePoint method, which transforms the figure.

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public void createMirrorControls(){ applyCoords(); Point mirrorPos = DrawHelper.ConteinerCenter; Control fakeControl = new Control(); addControl(fakeControl); Action mirrorAndDraw = delegate{ mirrorPos = new Point(mirrorPos.X, mirrorPos.Y); resetCoords(); mirrorAbovePoint(mirrorPos,-1,-1); DrawHelper.mainForm.drawFigures(); DrawHelper.drawsPointLines(mirrorPos); }; DrawHelper.addMouseTargeter(fakeControl,delegate(Point pos){ mirrorPos = pos; mirrorAndDraw();}); mirrorAndDraw();}

By pressing the button responsible for rotating the shape around the specified center by an arbitrary angle, the createRotateControls method is called. This method first stores the initial coordinates with the applyCoords method, which was described earlier. Here we also refer to the rotateAroundPoint method, which transforms the shape. public void createScaleControls(){ applyCoords(); Label label; TextBox scaleValueTBox; DrawHelper.createNumericTBController(out label, out scaleValueTBox,"Scale percentage", "100",120); addControl(label); addControl(scaleValueTBox); scaleValueTBox.TextChanged += delegate(object sender, EventArgs e) { resetCoords(); float scaleValue = DrawHelper.numParse(scaleValueTBox.Text); scaleValue = scaleValue/100; scale(1,scaleValue); DrawHelper.mainForm.drawFigures();};}

To implement TMT for any two of the created shapes, using the standard method will not work, because it does not save the result of the operation as a separate shape. In this case, a problem can also arise when one figure is superimposed on another without crossing faces. In this case, we will not be able to save the result without connecting the points. To solve this problem, let’s create an additional Edge class that connects the vertices. The combineFigures method overlays shapes on top of each other.

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public static Fgr combineFigures(Fgr fg1,Fgr fg2,int[] TMOarray) First, we need to convert the shapes into an array of faces. List edges = new List(); for (int i = 0; i < vertexArrays.Length; i++) foreach (Vertex vert in vertexArrays[i]) foreach (Vertex conn in vert.NextConnections) edges.Add(new Edge(vert,conn,i));

We bring the vertices of the figures into one array, look for overlapping faces, find the intersection and divide the intersecting faces into several faces. Next, we turn the short edges into vertices. Determine if the faces are inside another shape. We remove unnecessary ones. Convert faces back to vertices. We pass the faces to be removed to the program. So, we will determine which set-theoretic operation needs to be performed. foreach (int deleteTMO in TMOarray) if(edge.tmoN == deleteTMO){ edge.removeConnect(); edges.Remove(edge); i--; break; }

After removing the edge, all elements in the array are shifted 1 to the left, the next element will be at the same index. We bring the vertices of the figures into one array.

4 Discussion Since the early 1990s, there has been an active development of engineering graphics. At the same time, not everyone can fully appreciate the significance of this phenomenon for professional activities. Thus, a number of domestic authors note that engineering graphics is one of the key competencies formed in engineering specialties in the learning process [1–3]. Other researchers consider the development of engineering graphics in terms of its impact on scientific and technological progress [4]. The role of studying engineering graphics in engineering specialties is also noted by foreign specialists [5–7]. A number of authors note the importance of engineering graphics in terms of protecting intellectual property and introducing marking [8–10].

5 Conclusion Based on the results, it can be concluded that all the tasks set have been completed. Namely, while running the program, we can create a figure. When creating a spline, we can specify its name. Interaction with buttons is carried out by pressing the left mouse button (LMB) on the element. When creating figures, we can specify the name and size of individual parts by clicking on the value and shifting the courses left/right on the right side of the program. Confirmation of the action is carried out by pressing the Enter key, and cancellation of the action – by the right mouse button (RMB). If the cursor is in one

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of the TextBox parameters of the figure, before confirming or canceling the creation of the primitive, you have to exit this TextBox by pressing the Enter key. You can change the color of a shape before creating it or after selecting it. To transform a shape, select it with the left mouse button (LMB), and then click on one of the transformations. To rotate about a given center and mirror about a given center, click «Rotate» and «Mirror» respectively. After that, you can set the center relative to which the transformation will be carried out by clicking LMB on the PictureBox. The conversion is canceled with RMB and confirmed with the Enter key. To perform TMT, you need to create and select two shapes. After selection, the elements responsible for the implementation of the settheoretic operations are available. Set-theoretic operation is confirmed by pressing the Enter key, and canceled by RMB.

References 1. Pokrovskaya MV, Lunina IN (2016) Engineering graphics: theory and practice of interdisciplinary connections. Mech Eng Comput Technol 11:175–188 2. Guznenkov VN, Zhurbenko PA, Vintsulina EV (2019) Methods of teaching engineering graphics at Bauman Moscow state technical university. Int J Exp Educ 2:5–9 3. Guzenkov VN (2017) Computer technologies in engineering graphics. Almanac Mod Sci Educ 1:34–37 4. Medvedeva IL, Lyapchev AV (2020) Engineering graphics is the professional language of engineers of the past and present. In: Vostretsov AI (ed) Modern trends in the development of science and education. World of Science, Neftekamsk, pp 46–50 5. Mutalib AA, Hamid R, Mohd Isa FL, Abdullah S (2012) Evaluation of the engineering graphics course outcomes using multi-choice questions. Procedia Soc Behav Sci 60:189–195 6. Mutalib AA, Hamid R, Hamzah FM, Abdullah S (2012) Implementation of OBE in the engineering graphics course and analysis of academic performance. Procedia Soc Behav Sci 60:184–188 7. Cobos-Moyano A, Martín-Blas T, Oñate-Gómez C (2009) Evaluating background and prior knowledge: a case study on engineering graphics learning. Comput Educ 53(3):695–700 8. Peng F, Ming W, Zhang X, Long M (2019) A reversible visible watermarking for 2D CAD engineering graphics based on graphics fusion. Signal Process Image Commun 78:426–436 9. Peng F, Lei Y-Z, Long M, Sun X-M (2011) A reversible watermarking scheme for twodimensional CAD engineering graphics based on improved difference expansion. Comput Aided Des 43(8):1018–1024 10. Peng F, Liu Y, Long M (2014) Reversible watermarking for 2D CAD engineering graphics based on improved histogram shifting. Comput Aided Des 49:42–50

Innovative Logistics in the Cumulative Knowledge System and Its Implementation Technology N. P. Karpova1(B)

and T. E. Evtodieva2

1 Samara State University of Economics, Samara, Russia

[email protected]

2 Rostov State University of Economics, Rostov-On-Don, Russia

[email protected]

Abstract. Today innovative technologies and instruments play an important role in flow processes management of many companies that are participating in supply chains. Artificial intelligence, Internet of Things, robotics, intelligent analytics and others are among the most popular and promising innovative solutions. These technologies are implementation tools of the innovative logistics concept in supply chains. Thus, the purpose of the study is to determine the role of innovative logistics in the cumulative knowledge system and to identify its implementation technology. Due to the fact that companies have to operate under conditions of uncertainty, risks and a large amount of information on current and future trends in the external and internal environment, development of logistics systems, intelligent analytics, which is lying at the core of the logistics knowledge system, is becoming increasingly relevant. Intelligent analytics allows supply chain participants to organize big data array on the state of the internal and external environment, and current and future state of logistics systems in order to find optimal solutions to improve business efficiency. The implementation of the intelligent analytics system takes place due to technologies such as Process Mining and Data Mining that can help identify bottlenecks in the supply chains and find preventive solutions in order to eliminate and neutralize negative impacts. Keywords: Digital Technologies · Innovative Logistics · Intelligent Analytics · Knowledge · Logistics System · Supply Chain

1 Introduction Innovative logistics can be presented as a modern concept of optimal organization of flow processes both in the logistics system and beyond. Many scientists define it as a «management innovation» that focuses on using the entire innovative management potential in order to achieve strategic guidelines in activities of modern companies [1, 2]. Innovative logistics is lying at the core of the cumulative knowledge system that forms a whole picture of the performance features of logistics systems at various management levels. This way, we can say that the cumulative knowledge system is represented as a kind of © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 178–184, 2023. https://doi.org/10.1007/978-3-031-38122-5_24

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an integral information model of any entirety functioning, which is based on intelligent analytics data. The information model integrity can be interpreted as the presence of relationships among the data that are included in the knowledge of the study object. The innovative information systems and technologies such as artificial intelligence systems, the Internet of Things, intelligent analytics and others, where knowledge acts as wellstructured data, are becoming the most relevant in the supply chains to manage flow processes under modern conditions. Innovative methods and technologies are penetrating not only into all new modern activities, but also professional ones. Nowadays, training in digital technology competencies is extremely relevant not only for programmers and engineers, but also for logisticians, because they have to deal with these new technologies every day as part of their professional activities to manage the flow process in the supply chains [3, 4]. The fact remains that innovative methods and technologies, which are used in innovative logistics, precisely focus on the use of latest software, intelligent analytics and artificial intelligence systems in order to improve supply chains efficiency.

2 Methods The research is based on the monographical method, which should be used when analyzing typical economic phenomena and leading company’s experience in the field of flow processes management in the supply chains, as well as on the empirical method, which is associated with the formulation of experimental tests in the theory and observations of the socio-economic systems evolution and management processes. These methods are combined on systemic principles and complement each other not only mechanically, making up a simple sum, but also dialectically.

3 Results Innovative logistics approves itself in the efficiency of managerial decision-making both in the process of building relationships with counterparties and in the performance of specific logistic procedures. In both cases, a competent and effective management decision should be based on a reliable and high-quality data base. Moreover, an information component of the management decision should unite current information on the state of a particular object and its internal and external relations, the state in the previous period, and the information that potentially characterizes the probable circumstances in the strategic perspective, taking into account the dynamics of existent systemic changes. Thus, the importance of intelligent analytics is obvious as a way to provide a sufficient array of structured and ordered information that allows to form the basis for making operational and strategic decisions under uncertainty, risk and market volatility. In addition, intelligent analytics is also relevant to intellectual capital development, and today’s companies pay serious attention to this fact as intellectual capital provides competitive advantages [5]. There is a certain interest in the study of intelligent analytics in various fields of application including logistics in the scientific community. While considering the issue of intelligent analytics, it is necessary to rely on essential understanding of analytics at

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large in order to realize the content of intelligent analytics. According to Yu.V. Kurnosov and P.Yu. Konotopov [6], analytics includes an integral body of principles of methodological, organizational and technological support, and individual and collective mental activity which allows to analyze information effectively in order to improve the quality of existing knowledge and to acquire some new one, as well as to develop an information base that lets make optimal management decisions. In our opinion, such a definition presents a comprehensive understanding of analytics as a process, reveals its targeting and emphasizes its applicable nature. Taking into account the fact that in the digital world analytics uses new implementation technologies, which help minimize human errors, the collocation «intelligent analytics» is increasingly being used. It is intelligent analytics that ranks third in the list of the most popular digital technologies [7]. The authors consider intelligent analytics as a process of collecting, processing, analyzing and systematizing large body of data based on the use of computerized technologies that contribute to managerial decision-making automation. Intelligent analytics has the following specific features: 1) it deals with big data, characterized by the lack of structure and homogeneity as well as belonging to different sources; 2) it is based on a Data Mining that relies on CRISP-DM (Cross-Industry Standard Process for Data Mining) methodology and assumes logically interrelated stages: - definition of the purpose of Data Mining and the resources to discover knowledge in relation to business specifics; - collection and evaluation of data quality, and determination of the final data array aiming to their processing; - data cleaning, correction, formatting and integration in order to use the selected mining technology; - data modeling in order to identify explicit and implicit patterns in the behavior of an object, process or system; - data analysis that allows to provide continuous evaluation and feedback with the object under study, and to discover quite new knowledge; - applying the results obtained in practice and including the information in management decisions. 3) it is based on the methods of artificial intelligence, statistical analysis and ComputerAssisted Teaching that allow to create a future pattern and then simulate various options and track the results. Under present-day conditions, intelligent analytics is operably implemented on Process Mining and Data Mining. Process Mining allows to understand the company work organization using a process approach and to find bottlenecks in the organization of all company processes based on the data which are stored in the enterprise information system. The scientists note that Process Mining is based on the understanding that if a business process is performed in a particular information system, then, based on the “traces” of its implementation, it is possible to restore the factual algorithm of the process in a form convenient for the following analysis [8]. This makes it possible to monitor the state of business processes on

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a real-time basis taking into account experimental data, rather than information collected in manual mode and having a subjective nature. Through the use of Data Mining, it is possible to identify non-obvious relationships with a certain regularity, and it allows to take them into account when making management decisions and achieving better results. Data Mining let determine patterns that will help identify events (associations) related to each other in a logical order, determine the presence of their temporal dependence (sequence), find out the signs of affiliation with a common category of objects (classification), search out various homogeneous groups of data (clustering), and determine future possible action cases of objects (forecasting) [8]. It follows that Data Mining is based on the concept of patterns representing certain regularities that allow to structure, cluster, determine interdependencies, and predict object behavior or phenomenon by interpreting and visualizing summary information. Let us define the options of intelligent analytics in the logistics knowledge system. Intelligent analytics in a logistics sector can be used for the following tasks: – forecasting: evaluation of the volumetric measures of material, information and other flows, which are moved through the supply chain; evaluation of purchase and sales amount; prediction of the supply chain or its individual areas capacity; prognostic of temporary losses due to disruption of the rhythm and stability in the supply chain; – risk and probability: selection of effective contractors in the supply chain; determination of break-even point for risky projects; probability of logistical risk; possibility of achievement of target or planned indicators; probability of breakdown, technical equipment failure, etc.; – recommendations: determination of the optimal configuration of the supply chain and rational trajectory of flows; characterization of the optimal structure of a material flow in the distribution channels; identification of the optimal stock level in each area of the logistics chains; exploration of the optimal location of logistics infrastructure facilities, etc.; – search for sequences: temporary arrangement of logistics operations; goods rotation in store and release to consumers; customers choice analysis while shopping, and forecasting their behavior; – clustering: ranking of suppliers, customers and other participants in logistics activities, analysis and forecasting of common features for selected groups or clusters; clustering of sales markets and consumers; grouping of various events and factors that can affect the supply chain efficiency. Thus, intelligent analytics is one of the conditions for the effective implementation of innovative logistics.

4 Discussion Modern companies are operating in an increasingly globalized environment, and this fact complicates their supply chains. In order to effectively coordinate efforts and integrate counterparties in the supply chains, market participants benefit from innovative logistics through the use of innovative digital technology instruments in flow processes management [9]. According to the scientists, more progressive innovations can lead companies

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to increase their operating performance and to improve supplied products quality [10, 11]. Therefore, due to the development of innovative technologies (Internet of Things, robotics, automation, artificial intelligence, automated mobility and equipment, intelligent analytics systems, blockchain, etc.), most of the leading logistics operators are increasingly switching to digital technologies and business processes automation [12, 13]. The information technology progress has made it easy to collect and store data as never before, offering huge opportunities to analyze this information in order to make optimal decisions in logistics [14]. It is important to notice that such an innovative logistics instrument as intelligent analytics is of particular importance, as it is capable to organize and process a large array of data, and to determine operational and strategic measures in order to eliminate bottlenecks in the supply chains [5, 6]. Intelligent analytics helps reduce human errors in managerial decision-making. Even if the benefits from intelligent analytics are obvious, many companies are still having difficulties to implement this new instrument of data analysis. One of the main obstacles to realize the intelligent analytics value in modern companies’ activities is the low competence level of employees [14]. It is obvious that high-quality engineering education of today’s specialists could eliminate this gap [3, 4]. Higher education institutions play an important role in the spread of knowledge in the process of improving companies’ innovative activities. As a result, it leads to sustainable development and socio-economic transformation of both people’s lives and society. The higher education system is an important partner for market participants to increase the competitiveness of the country’s economy. It is the engine of various kinds of innovations, inclusive of logistics, that are actualized mainly through knowledge and technology transfer [15]. As for the prospects for intelligent analytics in the logistics knowledge system, they are huge: ability to predict various parameters of logistics systems functioning; determination of risks; clustering and ranking of events sequences in the logistics systems and taking preventive measures to eliminate bottlenecks in the business processes of the supply chains [8]. Thus, the importance of leading technologies to ensure success of modern supply chains cannot be overestimated. They play a crucial role in innovative logistics, as they not only increase companies’ efficiency but also competitive advantages of counterparties in achieving sustainable development goals [16].

5 Conclusion The study showed that the today’s companies activities take place under rapidly changing circumstances on a highly competitive market. In order to survive, market participants have to look for opportunities to improve business organization efficiency. In this regard, many companies are introducing various management innovations into their activities, including innovative logistics instruments that allow to increase their operating performance. Innovative logistics is the central element in the cumulative knowledge system that represents an information model of micro-, meso- and macro logistical systems functioning. Innovative logistics creates promising mechanisms to manage flow processes in the supply chains through the use of such leading information techniques and technologies

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as the Internet of Things, artificial intelligence, intelligent analytics, etc. Management decisions in innovative logistics should be based on an authentic data base that unite current and future business situations in the logistics system. In this respect, the role of intelligent analytics as an innovative logistics instrument, designed to structure the entire array of big data in the supply chains in order to find an optimal solution in flow processes management, is dramatically increasing. It is worth noting that the system of intelligent analytics in the supply chains can be implemented through Process Mining and Data Mining. Process Mining allows companies to monitor their business processes and to identify bottlenecks in the logistics systems operation. In its turn, Data Mining helps identify non-obvious regular relationships that let make preventive management decisions. Intelligent analytics has great opportunities in the logistics knowledge system: forecasting quantitative and qualitative parameters of flow processes in the supply chains; determining the risks; finding optimal management decisions; searching for sequences of events in the logistics system, and grouping events and factors that affect supply chains performance.

References 1. Karpova NP (2011) Logistics as a management innovation in the market space. Econ Sci 4(77):71–75 2. Karpova NP, Evtodieva TE (2020) Logistics innovations: essence, types and methods of financing. Econ Entrepreneurship Law 10(7):2063–2072 3. Laupichler MC, Aster A, Schirch J, Raupach T (2022) Artificial intelligence literacy in higher and adult education: a scoping literature review. Comput Educ Artif Intell 3:100101 4. Kabudi T, Pappas I, Olsen DH (2021) AI-enabled adaptive learning systems: a systematic mapping of the literature. Comput Educ Artif Intell 2:100017 5. Abdullaeva, TK, Dustova DD (2016) Intelligence systems of business analysis Sci Methodol E-J «Concept» 11: 1271–1275 6. Kurnosov YuV., Konotopov PYu (2004). Analytics: Methodology, Technology and Organization of Information and Analytical Work. 1st end. Publishing House «Rusaki», Moscow 7. How has intelligent logistics industry developed in China over the past year? https://russianbl ogs.com/article/1958824799/. Accessed 13 Mar 2023 8. Carrino S, Doan K, Evtodieva TE., Ivanova NV (2021) Process mining as a decision-making support technology in the smart supply chains. In: Ashmarina SI, Mantulenko, VV, Inozemtsev MI, Sidorenko EL. (eds), Global Challenges and Prospects of The Modern Economic Development, European Proceedings of Social and Behavioural Sciences, vol 106 pp 877–886 European Publisher London (2021) 9. Tiwari S, Sharma P, Choi T-M, Lim A (2023) Blockchain and third-party logistics for global supply chain operations: stakeholders’ perspectives and decision roadmap. Transp Res Part E: Logistics Transp Rev 170:103012 10. Zheng W, Li B, Song D (2023) Li Ya (2023) Innovative development strategy of a risk-averse firm considering product unreliability under competition. Transp Res Part E: Logistics Transp Rev 172:102970 11. Yurevich MA, Simachev YV, Kuzyk MG, Fedyunina AA (2023) R&D synergy between local and foreign-owned enterprises in post-communist economies. Int J Innov Stud 7(2):101–114 12. Senarak C (2021) Cybersecurity knowledge and skills for port facility security officers of international seaports: perspectives of IT and security personnel. Asian J Shipping Logistics 37(4):345–360

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13. Zhang X, Li Z, Li G (2023) Impacts of blockchain-based digital transition on cold supply chains with a third-party logistics service provider. Transp Res Part E: Logistics Transp Rev 170:103014 14. Schoenherr T (2023) Supply chain management professionals’ proficiency in big data analytics: antecedents and impact on performance. Transp Res Part E: Logistics Transp Rev 169:102972 15. Gachanja IM (2023) Influence of technology transfer from universities on manufacturing firms’ innovative performance. Int J Innov Stud 7(2):115–126 16. Kumar Dadsena K, Pant P (2023) Analyzing the barriers in supply chain digitization: sustainable development goals perspective. Oper Manag Res 3:1–14

Analysis of Competitiveness of Logistics Companies V. A. Manyaeva1(B)

and L. A. Karapetyan2

1 Samara State University of Economics, Samara, Russia

[email protected] 2 Samara, Russia [email protected]

Abstract. The contribution investigates the competitiveness of logistics companies in Russia. An overview of the market of logistics services in this country is given. The most popular methods of analysis and assessment of the competitiveness of companies are indicated – graphical methods: matrix of the Boston Consulting Group (a BCG matrix), Porter matrix, SWOT-analysis, McKinsey model, competitiveness polygon. The analytical results of the internal environment of a logical company are presented in the work. The analysis of the internal environment was carried out for the administrative block (management, finance, personnel), for the commercial block (sales, logistics, supply) and for the service block (quality, IT, SAP). The analysis of the external environment was carried out according to the PEST-analysis method. The analysis of the influence of economic, political, technological and social factors on the activities of the logistics company has been carried out. In conclusion, recommendations are given to increase the competitiveness of Russian logic companies in the current economic realities, related to the need to continue expanding the regions of presence in order to unload existing warehouses in Moscow and the Moscow Region with the application of the latest communication and tracking systems to improve the quality of customer service and the safety of goods. The research results may be of interest to scientists, specialists from consulting and logistics companies. Keywords: Company · Competitiveness · Competitiveness Analysis · Logistics · Logistics Services · PEST-analysis · SWOT-analysis

1 Introduction Competitiveness helps to assess the position of a company in the market comparing with competitors. Therefore, we can conclude that competitiveness can be managed. The competitiveness is also an object of regulation that affects the internal state of the company, as well as this object is influenced by factors of the external environment. Competitiveness serves as an indicator of the company’s location in the market. That involves the adoption of certain management decisions aimed at increasing the competitiveness L. A. Karapetyan—Individual entrepreneur © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 185–192, 2023. https://doi.org/10.1007/978-3-031-38122-5_25

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and contains all the company’s management processes. The purpose of this work is to present empirical research on the analysis of the competitiveness of logistics companies in Russia and the development of practical recommendations for its improvement. The following results were obtained: an overview of the logistics services market in Russia was made, the influence of the external and internal environment on the competitiveness of the logistics company was analyzed, the results of the analysis are presented in the SWOT-analysis matrix, practical recommendations have been developed to improve the competitiveness of the considered logistics company. The research materials can be used by practitioners and researchers in the field of competitiveness analysis, specialists of consulting and logistics companies.

2 Methodology The study was carried out using general scientific methods and special research techniques: methods of observation and study of accumulated experience, procedures for systemic and comparative analysis. The authors analyzed scientific literature on the competitiveness of companies, the current practice of logistics companies and the results of the analysis of the impact of the external and internal environment on the competitiveness of logistics companies as research materials. The experimental base of the study was the logistics companies of the Russian Federation. The research work included several stages. 1. Market research of logistics services in Russia. 2. Analysis of the impact of the external and internal environment on the competitiveness of a logistics company. 3. Summarizing and presenting the results of the analysis in the SWOT-analysis matrix. 4. Development of practical recommendations for improving the competitiveness of a logistics company.

3 Results The most important element of a market economy is an enterprise that has to be competitive. The competitiveness helps to assess the company’s position in the market by comparing it with competitors. Competitiveness research is one of the main components of the market research which forms the basis for strategy development. Effective strategic management helps to improve the competitiveness, that leads to the development of the national economy. An important role in ensuring the competitiveness of logistics companies belongs to the analysis. Techniques and methods of analysis are very diverse. Each company chooses its own methods and analytical tools, based on the objective factors of the external and internal environment and its own preferences. The most popular methods for analyzing and assessing the competitiveness of an enterprise are graphical methods–this is the BCG matrix, Porter matrix, SWOT-analysis, McKinsey model, the competitiveness polygon. More than 1,000 companies providing logistics services operate in Russia. Table 1 presents the characteristics of the main logistics companies in this country.

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At the analytical stage of this research work, a survey of employees of a logistics company was conducted using a SWOT-analysis matrix to study the internal environment. The analysis of the internal environment was carried out for the administrative block (management, finance, personnel), for the commercial block (sales, logistics, supply) and for the service block (quality, IT, SAP). Table 1. Logistics companies in Russia. Company

Characteristics Number of branches

Countries of presence

Total storage area, thousand m2

Services

FM Logistic Vostok

54

Russia, Kazakhstan, China, Europe

770

Air, auto, general cargo, containers, safekeeping, cross-docking, logistics solutions

PAC

200

Russia, Kazakhstan, China, Europe, the USA

200

Air, auto, groupage cargo, containers, safekeeping, logistics solutions

Baikal-Service

113

Russia, Belarus, Kazakhstan, Kyrgyzstan

340

Air, auto, groupage cargo, containers, safekeeping

GTD

252

Russia, Belarus, Kazakhstan, Kyrgyzstan, Armenia, Georgia

220

Air, auto, general cargo, containers

Delovye Linyi

245

Worldwide

560

Air, auto, groupage cargo, containers, safekeeping, cross-docking

DAC

323

Russia, Central and Southwest Asia, Europe, USA

270

Air, auto

Source: authors

To analyze external factors, a survey was conducted which was expressed in the form of assessments of the influence of factors according to the PEST-analysis method. Due to this method, an analysis was made of the influence of economic, political, technological, and social factors of the external environment on the company’s activities. The results of the analysis showed that among the economic factors, the greatest negative impact is exerted by a decrease in the volume of traffic in the market and a decrease in the dynamics of the market development as a whole. The strongest negative impact on the company

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comes from increased sanctions. It should be noted that the technological development has an extremely positive impact on the company. The most significant factors include a developed network of roads, repair works and construction of new ones, as well as the use of the latest communication and tracking systems, such as satellite navigation, the GLONASS system, etc. Social factors such as the shortage of qualified management personnel in the logistics sector and the still ongoing impact of restrictions due to the consequences of the pandemic and the situation in the Ukraine have the strongest negative impact. Thus, having calculated the assessments of factors using the PEST-analysis, we can conclude that the economic and social factors of the external environment are of the greatest importance and significance for the company. One of the threats that may affect the company’s activities is a decrease in traffic volumes due to the market stagnation. Also, a number of social factors have a great influence, including the shortage of qualified management personnel in the field of logistics and the impact of restrictions due to the pandemic. Next, the selection of the most significant factors of the external and internal environment was made and a SWOT-analysis matrix was compiled. At the intersection of the fields, points were put down showing the strength of influence on the company from weak (1 point) to strong (5 points). Tables 2 and 3 present results of SWOT-analysis of a logistics company. The result of the matrix of influence fields in the SWOT-analysis is the conclusion that the strongest negative effect can come from a sharp drop in the market and increased restrictions due to the consequences of the pandemic and the special military operation in the Ukraine which led to the adoption of several packages of sanctions by the United States and some Western countries. The quality of competitors’ services is growing, and it is necessary to introduce new services in order to gain a competitive advantage and attract additional customers. Thus, the analysis of the logistics market resulted in the following conclusions: under the current sanctions pressure, under the conditions of tough competition and a changing demand structure, companies need to continue expanding their regions of presence in order to unload existing warehouses, implement the latest communication and tracking systems to improve the quality of customer service.

4 Discussion Issues of analysis and evaluation of the enterprises’ competitiveness are considered in the works of D.A. Abyshova and I.G. Chernysheva [1], A.A. Aliev, M.S. Gordienko, and A.V. Petelina [2], I.N. Atyunkina [3], E.A. Dagaeva and I.V. Senin [4], N.O. Melik-Aslanova [5], E.V. Polyanskaya and A.V. Golubkina [6], M.G. Salko and T.V. Malyutina [7], T. Semenova and L. Medvedeva [8], D.S. Tanifa [9], N.A. Filippova, V.M. Vlasov, and V.N. Bogumil [10], and others. Logistics efficiency improvement tools used at Russian companies are presented in the work of E.V. Tsenina, K.V. Erygin, and E.S. Kurbatova [11]. L. Bozhko and R. Shishkin consider how logistics companies solve their development problems using information technology [12]. An interesting research task, according to N.O. Melik-Aslanova, is the ability to evaluate a quantitative indicator. The competitiveness, being a complex characteristic, can

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Table 2. Matrix of influence fields of SWOT analysis opportunities. Opportunities

Strengths

weaknesses

Forcing players out of the market (mergers and acquisitions)

High demand for transport outsourcing

Implementation Accession of programs for of new the construction regions of international transport corridors

Growing trade with China

Application of the latest communication and tracking systems

Availability of a company development strategy

5

5

3

3

3

3

Organized sales system

3

5

0

5

3

1

High management experience

5

3

3

5

3

3

Developed branch network

3

3

1

5

3

3

World class accounting software

1

3

0

0

1

5

High quality cargo transportation

3

5

1

3

1

5

Incomplete list of additional services

−3

−5

0

−1

−3

−5

High staff turnover

+1

−3

−1

0

−1

0

Lack of competent personnel

−5

−3

0

−1

−3

−1

Non-compliance with internal standards

−1

−3

0

0

0

0

Lack of reserves to increase the volume of cargo handling

−3

−1

0

−1

−1

0

Last mile problem

−3

−5

0

−1

−1

−3

Source: authors

be expressed through a set of certain indicators [5]. As T. Semenova and L. Medvedeva noted, the competitiveness assessment process is based on certain principles. According to these researchers, these are complexity, relativity and social targeting [8]. According to A.A. Aliev, M.S. Gordienko, and A.V. Petelina, to assess the financial competitiveness of a company, indicators of the company’s financial position are analyzed: indicator of return on a unit of sales, return on assets indicator, efficiency of the own capital use,

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V. A. and L. A. Karapetyan Table 3. Matrix of influence fields of SWOT-analysis threats. Threats

Strengths

weaknesses

High competition

Rising fuel prices

Western economic sanctions

Decrease in traffic volume in the market

High quality competitors

Strengthening bans in relation to the pandemic

Availability of a company development strategy

3

+1

+3

+5

−1

−3

Organized sales system

3

0

+1

−1

−3

−1

High management 2 experience

0

0

+3

0

−1

Developed branch −1 network

−1

−1

−3

−3

−1

World class accounting software

3

0

0

−1

−1

0

High quality cargo transportation

−1

−3

0

−3

−3

−1

Not a complete list of additional services

−5

−3

0

−5

−1

−3

High staff turnover

−5

0

0

−1

−5

−1

Lack of competent personnel

−3

0

0

−1

−3

−1

Non-compliance with internal standards

−5

0

0

−5

−5

−1

Lack of reserves to increase the volume of cargo handling

−5

0

0

+1

−3

0

−3

−1

−3

−5

−1

Last mile problem −5

Source: authors

coefficients of absolute and critical liquidity, the financial independence level, indicator of long-term financial independence, asset turnover ratio [2]. K. Barmuta, N. Rusakova, and A. Malkhasyan analyze risks of logistics processes [13], contemporary development prospects for small and medium logistics companies are studied by Y.P. Tsang, Y. Fan, Z.P. Feng [14]. Competitive priorities for logistics organizations are evaluated by S. Ba¸stu˘g and F. Yercan [15] to assess their resilience in current conditions. When analyzing and evaluating the competitiveness of a company, most researchers use graphical methods in their work. This is the BCG matrix, Porter matrix, SWOT-analysis, McKinsey model, and a competitiveness polygon.

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Thus, approaches to the analysis and assessment of the competitiveness of companies are diverse and have their own characteristics of application. From the whole variety of methods and particular indicators, it is necessary to choose a method that will most fully reflect interests of the company’s stakeholders. A powerful factor determining general conditions for functioning of a particular market is a development degree of competitive relations on it.

5 Conclusions In conclusion, it should be noted that the most important factors for the competitiveness of companies in the transport services market are: high productivity of personnel, timely dispatch of goods, equipping terminals with high-performance loading mechanisms, maintaining a favorable image of the company, guaranteeing timely and storage shipment of goods, maintaining competitive prices for services, selling services via the Internet, accessible and well-organized customer service. An important role in the competitiveness of an enterprise belongs to the analysis, the main task of which is an objective assessment of the result of the economic activity of a transport company. Its results will allow you to see the company in comparison with competitors and develop measures to reduce business risks, create a «safety cushion» against threats and challenges from the external environment.

References 1. Abyshova DA, Chernysheva IG (2021) Development of the methodology of economic analysis as the basis for increasing competitiveness of a transport company. Interact Sci 8(63):39–40 2. Aliev AA, Gordienko MS, Petelina AV (2020) Multipurpose assessment of the financial competitiveness of a publishing company. Vestnik Universiteta 10:113–121 3. Atyunkina IN (2020) Historical aspects of the theories of competition and competitiveness development in economic science. Global Sci Potential 11(116):238–242 4. Dagaeva EA, Senin IV (2021) Increasing the competitiveness of a transport company in the conditions of economy digitalization. Bull Taganrog Inst Manag Econ 1(33):52–56 5. Melik-Aslanova NO (2020) Research of methods for assessing the competitiveness of an industrial enterprise. Finan Life 4:103–106 6. Polyanskaya EV, Golubkina AV (2021) Competition and competitiveness in the era of digitalization. In: Rodnenko VV (ed) Caspian in the Digital Age 2021, Materials of the International scientific forum «Caspian 2021: Ways of sustainable development». Astrakhan University Publishing House, Astrakhan, pp 49–51 7. Salko MG, Malyutina TV (2020) Formation of the program for increasing the competitiveness of transportation and logistics companies in regional markets. In: Barmina EYU, Gvilia NA, Dyukova OM, Myasnikova LA, Smirnova EA, Shulzhenko TG (eds) Logistics: Foresight Research, Profession, Practice: National Scientific and Educational Conference. St. Petersburg State University of Economics, St. Petersburg, pp 190–198 8. Semenova T, Medvedeva L (2020) Methodological analysis of competitiveness of economic subjects. In: Melnikova EP, Rudneva EYU, Darienko OL (eds) Topical Issues of Economics and Management: Theoretical and Applied Aspects: the V International Scientific and Practical Conference, vol 2. Donetsk National Technical University, Donetsk, pp 69–73

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9. Tanifa DS (2020) Economic methods of managing competitive advantages of a transport company. Railway Econ 9:38–43 10. Filippova NA, Vlasov VM, Bogumil VN (2022) Freight transport management in the arctic zone of Russia. In: Pak EV, Krivtsov AI, Zagrebelnaya NS (eds) The Handbook of the Arctic. Palgrave Macmillan, Singapore, pp 1149–1178 11. Tsenina EV, Erygin KV., Kurbatova ES.: Research on the use of logistics efficiency improvement tools by Russian companies. In: Ashmarina SI, Mantulenko, VV, Vochozka, M. (eds) Proceedings of the International Scientific Conference «Smart Nations: Global Trends in the Digital Economy». Lecture Notes in Networks and Systems, vol 397, pp 513–522. Springer, Cham (2022). DOI: https://doi.org/10.1007/978-3-030-94873-3_65 12. Bozhko L, Shishkin R (2022) Solving the logistics companies’ development problems using information technology. In: Manakov A, Edigarian A (eds) TransSiberia 2021, vol 402. LNNS. Springer, Cham, pp 790–798. https://doi.org/10.1007/978-3-030-96380-4_86 13. Barmuta K, Rusakova N, Malkhasyan A (2022) Improving the method of analyzing risks of the company’s logistics processes. Transp Res Procedia 63:737–745 14. Tsang YP, Fan Y, Feng ZP (2023) Bridging the gap: Building environmental, social and governance capabilities in small and medium logistics companies. J Environ Manag 338:117758 15. Ba¸stu˘g S, Yercan F (2021) An explanatory approach to assess resilience: an evaluation of competitive priorities for logistics organizations. Transp Policy 103:156–166

Mathematical Modelling and Optimization of Enterprise Costs for Storage of Resources S. I. Makarov1(B)

and D. V. Ivanov2,3

1 Samara State University of Economics, Samara, Russia

[email protected]

2 Samara National Research University, Samara, Russia 3 Samara State University of Transport, Samara, Russia

Abstract. The contribution is devoted to the identification and study of factors affecting the logistics costs of storing stocks of raw materials, semi-finished products, as well as finished products at the enterprise. The use of a logistics approach in the organization of supply and storage of stocks in organizations leads to a reduction in production costs, a reduction in the cost of a unit of production, and is one of the reserves for increasing the competitiveness of an enterprise. An analysis was made of the storage processes of raw materials and finished products in the case of discrete production. A graphical interpretation of these processes is given, on the basis of which the «fractional part of a number» function was selected, which most accurately describes the behaviour of the object of study. Analytical mathematical models were built to express the dependence of the volumes of raw materials and finished products stored in warehouses on time. An optimization problem has been formulated to reduce the cost of storing stocks of raw materials, semi-finished products, and finished products. The dependence of storage costs per unit of time on the value of the delivery period is constructed. To reduce storage costs, it is proposed to reduce the value of the maximum possible storage volume and the value of safety stocks of raw materials and finished products. The conducted research will allow enterprises with a discrete type of production to build an optimal strategy for the formation of logistical interactions with economic partners. Keywords: Costs of Storage of Raw Materials and Finished Products · Inventory Management · Optimization of Storage Costs

1 Introduction One of the reserves of saving resources at the enterprise is the optimization of the processes of supply and storage of stocks, this leads to a reduction in production costs and the cost of a unit of production. In this study, an attempt was made to identify factors that can be used to describe and optimize the logistics flows associated with the storage of raw materials and finished products at the enterprise, which will allow developing an optimal strategy for choosing sources of supply for production and forming production and economic relations with consumers of the enterprise’s products. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 193–200, 2023. https://doi.org/10.1007/978-3-031-38122-5_26

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2 Methodology An enterprise with a discrete production cycle is considered. The processes of storage of raw materials and finished products are described by piecewise continuous functions. The dynamics of changes in stocks of raw materials and finished products located in the warehouse space of the enterprise can be visually represented as a graph of some piecewise linear function defined on a set of positive numbers. The nature of the behavior of these lines allows you to choose an analytically functional dependence of the volumes of materials and products stored in warehouses from time to time. This can be done most accurately using the fractional part of the number y = {x} function. The costs of storing raw materials and finished products depend on the period of time and their amount per unit of time is determined as the product of storage costs and volumes of resources. The task of reducing the cost of storing stocks of raw materials, semi-finished products, and finished products can be formulated as an optimization one.

3 Results The authors studied a possibility of the cost reducing for storing raw materials and finished products by reducing the value of the maximum possible volume that can be occupied for storage, or reducing the amount of safety stocks of raw materials and finished products. This scenario can be implemented if the participants in the supply chain are ready to shorten the period of time T rm , during which the imported raw materials are completely consumed, which can lead to interruptions in the production process, and reduce the period of time T pr , during which the warehouse of finished products is completely consumed. This leads to a violation of the schedule of deliveries. At the same time, the frequency of deliveries increases, and their volume decreases. The dependence of storage costs per unit of time on the value of the delivery period is constructed. The choice of the optimal delivery period is reduced to the optimization problem of minimizing the total cost of storage and delivery of products. The composition of the costs of managing stocks of raw materials is described by the formula: Srm = Sca + So + Sst + Sld ,

(1)

where S ca is the cost of purchasing raw materials, S o is the cost of placing an order, S st is the cost of storing stocks of raw materials, S ld is the loss from a shortage of stocks of raw materials. A similar ratio describes the composition of the costs of managing stocks of finished products [1–3]. For a numerical description of the storage process, the following quantities are used: Vmax – maximum limit total storage volume; Vmin – minimum total storage volume limit; Z – is the cost of storing a unit of product per unit of time. In the limiting case, it is possible to abandon the storage of raw materials and finished products, while the storage costs will be zero [4, 5]. This is possible if the schedule for

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the supply of raw materials q(t), the schedule for the production of finished products p(t) and the schedule for the shipment of manufactured products α(t) coincide: p(t) = q(t) = a(t), t ∈ [0, T ]

(2)

Such a strategy of the enterprise is unprofitable for economic partners, as it leads to small volumes of deliveries, as a result of which there is a disproportionate increase in transport costs with the same volumes of transportation [6]. Therefore, it is natural for the supplier (consumer) to «protect» against requirements for small volumes by introducing a fixed fee for each executed order, additional to payment for supplies proportional to their volume. There is a need to minimize the volume of stocks of raw materials and finished products stored in the warehouses of the enterprise. At the same time, it is necessary to assess the commercial risks that may arise due to under deliveries of goods to consumers and the lack of raw materials to maintain a normal production process [7]. In this study, we considered the processes of storage of raw materials and finished products in an enterprise with a discrete production cycle. The geometric interpretation of these processes are the graphs of some piecewise continuous linear functions. The dynamics of storage volumes of raw materials and finished products can be assessed visually. Let us introduce the following designations: T rm – the period of time during which the imported raw materials are completely consumed, T pr – the period of time during which the warehouse of finished products is completely filled.

Fig. 1. Dynamics of stocks of raw materials in warehouses (Source: authors).

For theoretical dependencies, which are described by the graphs presented in Figs.1 and 2, you can choose an analytical representation. For approximating such piecewise linear functions, the most suitable function is the «fractional part of a number» y = {x}. These dependencies look like:   t rm rm rm , (3) Vrm = Vmin + (Vmax − Vmin ) 1− Trm

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Fig. 2. Dynamics of stocks of finished products in warehouses (Source: authors).

Vpr =

pr Vmin

pr + (Vmax

pr − Vmin )



t Tpr

 (4)

To calculate the cost of storing materials and products, formulas are used [8]: Srm = Zrm Vrm , Spr = Zpr Vpr ,

(5)

where Z rm and Z pr are the costs of storing resources and a unit of product per unit of time, respectively [9]. Thus, the task of reducing the cost of storing stocks of raw materials, semi-finished products, and finished products can be formulated as an optimization one [10, 11]: S = Srm + Spr → min

(6)

One of the reserves for reducing the cost of storing products is to reduce the value of V max – the maximum possible storage volume. This possibility is realized if the economic partners are ready to shorten the period of time T rm , during which the imported raw materials are completely consumed, which can lead to disruptions in the production cycle, and to reduce the period of time T pr , during which the warehouse of finished products is completely filled, which may lead to destabilization of supplies to consumers. The frequency of deliveries increases, and their volume decreases. Graphically, these processes for discrete manufacturing can be represented as follows (Figs. 3 and 4). Analytically, these dependencies are described by functions:   t rm rm rm (7) Vrm = Vmin + (Vmax − Vmin ) 1 − T1rm   t pr pr pr (8) Vpr = Vmin + (Vmax − Vmin ) T1pr The decrease in the value of V max should be due to the study of the commercial benefits of the frequency and volume of supplies of suppliers (consumers). Supply chain agents will receive additional costs due to the imbalance of transport costs and the volume of goods transported. It is not profitable for them to increase the frequency of deliveries and reduce the volume of each delivery.

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Fig. 3. Dynamics of stocks of raw materials stored in warehouses with a decrease in the maximum possible storage volume (Source: authors).

Fig. 4. Dynamics of stocks of finished products stored in warehouses with a decrease in the maximum possible storage volume (Source: authors).

4 Discussion In addition, the enterprise itself is both a supplier and a consumer for other market participants; it is also interested in the uniform shipment of raw materials and finished products. For each participant in the supply chain, you can determine the time interval at which the cost of delivery is minimal C = C min . In Fig. 5, this interval corresponds to the point T 0 – the optimal period between deliveries. It is necessary to correlate the benefit gained by the enterprise from the decrease in the value of V max with the losses from the penalties of suppliers (consumers), that is, choose the delivery period T opt so that the total costs of storage and delivery are minimal, and T opt does not necessarily coincide with T 0 . The optimal delivery period T opt can be obtained as a result of solving the problem of minimizing the total storage costs [12, 13]: min(Z · V (T ) + C(T )) T

(9)

The relationship between the cost of delivery C and the value of the delivery period T can be described by the following curve.

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Fig. 5. Dependence of the cost of delivery on the value of the delivery period (Source: authors).

The value of the optimal delivery period T opt obtained as a result of solving this problem can be used to calculate the maximum possible storage volume of raw materials and products V 1max . Optimal delivery period T opt serves as a tool to balance the cost of holding materials and the cost of ordering. An increase in storage costs leads to a decrease in inventory, and an increase in order fees requires an increase in lot sizes, and accordingly, inventory storage volumes. Another reserve for reducing storage costs is a decrease in the value of V min – safety stocks of raw materials and finished products [14]. Graphically, these processes for discrete manufacturing can be interpreted as follows (Figs. 6 and 7).

Fig. 6. Decrease in insurance stocks of raw materials (Source: authors).

Analytically, these processes are described by the functions:   t rm rm rm Vrm = V1 min + (V1 max − V1 min ) 1 − Trm   t pr pr pr Vpr = V1 min + (V1 max − V1 min ) Tpr

(10) (11)

To further reduce the cost of storage, the company can go to the abolition of the maintenance of insurance stocks of finished products. This can only be done if the costs of raw materials for the production of products σ (t), the output plan b(t) and the implementation r(t) are equal: σ (t) = b(t) = r(t),

(12)

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Fig. 7. Decrease in insurance stocks of finished products (Source: authors). pr

in this case V1 min = 0. The use of such a strategy in inventory management is extremely risky, since it reduces the flexibility of the enterprise’s response to fluctuations in market demand. With increased demand, there are costs for forcing the release of products, reputational costs and fines ν(t) for not meeting consumer demand are possible [15]. With reduced demand, there may be costs associated with the storage of residues of raw materials and unsold products, as well as possible losses μ(t) from slowing down to a complete stop of the production process. These losses may be higher than the costs of creating and storing safety stocks of raw materials and finished products. The problem of reducing safety stocks should be considered as an optimization one: max{ZV − ν(t) − μ(t)}, b(t)

(13)

where Z V = Z (Vmin − V1min ) – is the benefit from the reduction of safety stocks. Thus, the task of managing the insurance stocks of the enterprise is reduced to minimizing the volume of storage of finished products. Within the capabilities of the enterprise.

5 Conclusion An optimization problem has been formulated to reduce the cost of storing stocks of raw materials, semi-finished products, and finished products. The dependence of storage costs per unit of time on the value of the delivery period is constructed. As reserves to reduce storage costs, it is proposed to reduce the value of the maximum possible storage volume and the value of safety stocks of raw materials and finished products. The conducted research will allow enterprises with a discrete type of production to build an optimal strategy for the formation of logistical interactions with economic partners. A similar approach can be applied in the case of continuous production, for which. Graphical and analytical dependencies are built and optimization problems of minimizing the total costs of storage and delivery of products are studied.

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References 1. Tebaldi L, Bigliardi B, Filippelli S, Bottani E (2023) EOI or EOQ? A simulation study for the inventory management of a company operating in the railway sector. Procedia Comput Sci 217:1532–1541 2. Marchi B, Zanoni S (2023) Technical note on «Inventory management in supply chains with consideration of Logistics, green investment and different carbon emissions policies». Comput Ind Eng 175:108870 3. Noble J, John K, Paul B (2023) Inventory management of perishable products with fixed shelf life for a single echelon system. Mater Today: Proc 72(6):2863–2868 4. Forkan M, Rizvi MM, Chowdhury MAM (2022) Multiobjective reverse logistics model for inventory management with environmental impacts: an application in industry. Intell Syst Appl 14:200078 5. Qian H, Guo H, Sun B, Wang Y (2022) Integrated inventory and transportation management with stochastic demands: a scenario-based economic model predictive control approach. Expert Syst Appl 202:117156 6. Li Z, Liang Y, Liao Q, Xu N, Zheng J, Zhang H (2021) Scheduling of a branched multiproduct pipeline system with robust inventory management. Comput Ind Eng 162:107760 7. Koren M, Perlman Y, Shnaiderman M (2022) Inventory management model for stockout based substitutable products. IFAC-PapersOnLine 55(10):613–618 8. Qiu R, Sun Y, Sun M (2022) A robust optimization approach for multi-product inventory management in a dual-channel warehouse under demand uncertainties. Omega 109:102591 9. Yang Y, Chi Y, Zhou W, Fan T, Piramuthu S (2020) Deterioration control decision support for perishable inventory management. Decis Support Syst 134:113308 10. Hooshangi-Tabrizi P, Doulabi HH, Contreras I, Bhuiyan N (2022) Two-stage robust optimization for perishable inventory management with order modification. Expert Syst Appl 193:116346 11. Žic S, Žic J, Ðuki´c G (2023) Efficient planning and optimization of inventory replenishments for sustainable supply chains operating under (R, s, S) policy. Sustain Futures 5:10011 12. Theodorou E, Spiliotis E, Assimakopoulos V (2023) Optimizing inventory control through a data-driven and model-independent framework. EURO J Transp Logistics 12:100103 13. Wang L, Chen H (2022) Optimization of a stochastic joint replenishment inventory system with service level constraints. Comput Oper Res 148:106001 14. Barros J, Cortez P, Carvalho MS (2021) A systematic literature review about dimensioning safety stock under uncertainties and risks in the procurement process. Oper Res Perspect 8:100192 15. Chevroton H, Kergosien Y, Berghman L, Billaut J-C (2021) Solving an integrated scheduling and routing problem with inventory, routing and penalty costs. Eur J Oper Res 294(2):571–589

Rationale for the Choice of New Technologies for Repair and Construction Works A. D. Kornilova1(B)

, E. P. Acri2

, and K. Yu. Doladov2

1 Samara State University of Economics, Samara, Russia

[email protected] 2 Samara State Technical University, Samara, Russia

Abstract. As buildings serve for a long time, they must be maintained in the proper condition, periodically repaired, using new technologies during repair and construction works. The relevance of the research topic relates to the application of new technologies in the repair and construction works. It is also determined by the need to maintain competitive qualities of any production in the modern conditions. Enterprises in the repair and construction sector have to be constantly innovative in their activities. New technologies that are used in the repair of buildings can increase the performance and service life of building elements, as well as save private and public funds necessary for repair works. That, in turn, will have a positive effect on the image of enterprises. And it also allows increasing the pace of restoration works of buildings. This contribution presents the rationale for scientific approaches and practical recommendations to ensure the selection and implementation of new efficient technologies for repair and construction works. As a research result, a model was developed to justify the choice of new technologies, which made it possible to develop an expedient, effective version of the new technology for major overhaul of buildings. Keywords: Construction Organizations · Modeling · Overhaul · Repair and Construction Works · Technologies

1 Introduction Enterprises engaged in repair works need a methodological apparatus that allows an affordable and relatively quick way to justify an expedient version of a new technology that will effectively solve the set production tasks [1–3]. A number of methods have been developed by scientists for this purpose. Recently, the complex use of several methods of one direction has gained popularity, thanks to which an optimal model for finding a solution is obtained. The use of the mathematical modeling techniques allows us to present a new model for substantiating the choice of a new technology for repair and construction work (Fig. 1). As follows from Fig. 1, initially a construction, repair organization, choosing an application option of the new technology, have to set a specific goal at this stage of selection.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 201–207, 2023. https://doi.org/10.1007/978-3-031-38122-5_27

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Fig. 1. Model for justifying the choice of new technologies (Source: authors).

2 Methodology The authors use analytical research methods, economic and mathematical modeling. Decision-making options were based on their cost assessment, and the minimization of resource consumption in accordance with the regulatory requirements. The choice of the optimal technology for repair and construction works depends on many factors. The impact of new technologies is manifold. The city does not consist of isolated, but closely related elements, regional combinations of resources and conditions for the

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introduction of new technologies. These interrelationships between qualitatively different processes require that them to be regarded as a functioning system. The process of the problem consideration when using new technologies is based on setting goals and choosing means of implementation [4–6]. If some technologies are able to solve this problem, but slow down the course of the production process, then others are accompanied by a radical restructuring of the economic and technological structure, and still others require the application of a system of local measures. It is important to analyze the state of implementation of new technologies, to identify the most important problems arising from the peculiarities of the current situation. When studying a system for the introduction of new construction technologies, it is necessary to take a deeper look at cause-and-effect factors and their relationships. A modern system of economic incentives should contribute to a more efficient use of resources needed for the process of introducing new technologies. To do this, it is necessary to use mathematical models, with the help of which, in a relatively short time, it will be possible to solve economic, technological problems and make the choice of the best ways of the enterprise functioning.

3 Results If the goal is to study a large number of technologies and choose the general direction of your technology policy with several technologies, you should apply economic and mathematical modeling and follow this algorithm: 1. Form a system of defining indicators (Xi -technologies) that are of interest to a repair and construction organization. 2. Determine a range of estimates according to their significance in solving the problem of choosing a new technology. 3. Assemble a team of j-th experts to evaluate indicators – new technologies (Xi ) according to their importance in terms of the mutual independence. 4. Fill in the implementation matrix of experts’ assessments in the conditions of independence of their judgments when studying the characteristics of new technologies. Determine the total assessment of the i-th factor (Table 1). If it turns out that any expert, when evaluating the defining indicators (Xi ), assigned the same score more than 2 times, such expert assessments are not taken into account, and the matrix remains with a reduced number of experts. 5. Determine the sum of indistinguishable ranks for the j-th expert (1): Tj =

l 

Nk Ok ,

k=1

where Nk is the number of k-th identical estimates (Nk ≤ 2); Ok – the same scores.

(1)

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Table 1. Formation of a matrix of rank estimates of new technologies for repair and construction works of buildings. Experts

Assessments of experts on new technologies (Xi) X1

X2

X3

X4

X5

Xn

1

P11

P12

P13

P14

P15

P1n

2

P21

P22

P23

P24

P25

P2n

3

P31

P32

P33

P34

P35

P3n

4

P41

P42

P43

P44

P45

P4n

5

P51

P52

P53

P54

P55

P5n

6

P61

P62

P63

P64

P65

P6n

7

P71

P72

P73

P74

P75

P7n

8

P81

P82

P83

P84

P85

P8n

9

P91 m

P92 m

P93 m

P94 m

P95 m

P9n m

j=1 P1

j=1 P2

j=1 P3

j=1 P4

j=1 P5

j=1 Pn

Source: authors

 Next, find the sum of indistinguishable ranks ( m j=1 Tj ) for all experts, where m is the number of experts. 6. Determine the average total score for all technologies (2): 1 Pi , n n

P=

(2)

i=1

where i – technology; n is the number of i-th technologies; Pi is the i-th estimate given by the j-th expert. 7. Calculate the sum of squared deviations (3):  = 2

n 

(Pi − P)2 .

(3)

i=1

8. Determine the coefficient of agreement between experts (4): W =

2 1 3 2 nm(n

− 1) − m

m

j=1 Tj

,

(4)

It must be from 0 to 1. If W falls within the interval from 0 to 1, then we proceed to the next stage of the algorithm. If W does not fall into the range from 0 to 1, then at this stage, it is concluded that the expert assessments are incorrect, with a significant difference in opinions, and the search

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for a new technology is either stopped or carried out again: with new experts or the same ones, but in relation to different technologies in order to form a single expert decision on such an important issue as the justification for the enterprise of a new expedient technology for repair and construction works. 9. Confidence level of the consistency coefficient (5): X =

2 1 3 12 nm(n

− 1) −

1 n−1

n

j=1 Tj

(5)

10. Compare the confidence level of the consistency coefficient (X) with the statistical value (Xt) for the obtained probability level (consistency coefficient W). There are three levels of confidence: 1. X < Xt – numerical value of the consistency coefficient at a sufficient level of reliability; 2. X = Xt – numerical value of the consistency coefficient at the boundary of the confidence level; 3. X > Xt – the numerical value of the consistency coefficient is not at the proper level of reliability, i.e. the work of experts is unreliable. If the first or second level of reliability is obtained, the assessments of experts in new technologies are recognized as reliable. There is a return to the implementation matrix of experts’ assessments in the conditions of independence of their judgments when assessing the indicators of new technologies, and based on the scale of significance of assessments, one or more best technologies suitable for implementation are selected based on the total values of the matrix. If the enterprise had a goal to choose one technology from a small number of them, having performed a deep expert analysis of the indicators and characteristics of technologies, they should be presented in the form of a table.

4 Discussion The criteria for comparison are specific features of the device of one or another type of new technology, for example, the environmental component, the operational properties of a building element repaired using the new technology, the likely reduction in labor intensity or manual labor, as well as the features and technical characteristics of the new technology, etc. In addition, this part of the model can be used as a continuation of the previous algorithm, but already in relation to the previously selected expedient technologies. In this case, we get the most accurate selection result, since a large group of new technologies was initially evaluated by experts. Preliminary screening of inappropriate options then focuses the efforts of experts on a deep analysis of the characteristics and parameters of a small group of technologies, making it possible to substantiate an option that is effective for a construction and repair organization.

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5 Conclusion In this contribution, the issue of introducing innovative technologies or materials in the performance of repair works on residential buildings in the Samara city district are considered. Currently, the non-profit organization «Regional Operator of the Samara Region Fund for Capital Repairs» is engaged in major repairs of residential buildings in the Samara Region. According to the overhaul program of this organization, it carries out overhaul of residential buildings in the following areas: roof repair, facade repair, repair of engineering networks. The listed types of overhaul include a huge range of works (preparatory and basic ones). On the basis of tenders, contractors (executors of work) are selected. We considered several options for introducing new technology and choosing the best option in terms of financial benefits and increasing the operational characteristics of a residential building. In the Samara region, two types of roofing prevail: flat roof with built-up roofing material and pitched roof covered with piece roofing material (slate coating, Onduline, profiled sheet). Currently, there are several new capital repair technologies that can compete with the use of welded materials in roof repair, such as: – technology based on the reuse of roofing material (RRM); – membrane roofing. With a huge amount of deposited roll materials, roofing material is often used, which, under the influence of ultraviolet rays, becomes unusable and requires another repair in 2–3 years. With the classical method of overhaul (dismantling of the roofing «pie» and the installation of a new one from rolled deposited materials of the Technonicol type), the dismantled material is considered as waste that is not accepted for disposal. The technology and equipment of RRM allows year-round high-quality overhaul of soft roofs at a low cost of works performed. In this case, no waste is generated. The RRM equipment used for work is mobile, it rises directly to the roof of the building under repair. All stages of the technology also take place directly on the roof. The RRM technology has been tested since 1999. The first repair of the roof using this technology was carried out in Kaliningrad in December 2000, and the repaired roof is still standing without any leaks. Thus, the confirmed service life of the RRM-layer coating, has been a basis to all the instructions and norms of the technological map for at least 18 years. All the necessary certificates and conclusions have been obtained for equipment, technology and the resulting material. In terms of the environmental performance, roofing made of membranes can compete with the RRM technology, since it is not necessary to dismantle the old roofing during the overhaul of the roof using them. Membrane roofing is a coating with excellent waterproofing characteristics. The installation technology allows you to get a seamless roof, the service life of which is about 50 years. When repairing the facade of a residential building, the following types of coatings are currently resorted to the installation of a ventilated façade, the installation of a facade from a metal or PVC siding, and the installation of a «wet» facade. In all cases, the facade of the building is insulated. The difference lies only in the coating of the insulation (porcelain stoneware, siding or plaster, respectively). With this type of overhaul, it is

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possible to consider an innovative material that is used quite rarely in our region. We are talking about the use of foam glass as a heater. This interesting material with great potential can only be conditionally called a novelty in the construction market. It was invented in the 30s of the last century in the USSR, and the practical application was invented later – in 1946 in Canada. Foam glass went into the mass construction only half a century later, when the costs of its production were reduced and the technology was thoroughly worked out. The undeniable advantages of this material include ease, strength, chemical inertness, water tightness, heat resistance and incombustibility. Despite the fact that foam glass is made from recycled materials, its cost is still quite high compared to mineral wool and other popular heat-insulating materials. From an environmental point of view, the use of this material is very attractive, since glass is recycled for its manufacture. However, from the financial side, to determine the benefits, a careful calculation is necessary, taking into account the method of attaching the material to the surface being used, the amount of purchase, the amount of work performed, the necessary equipment, etc. Repair of the engineering networks of the building includes a huge range of works on the repair of water supply, sanitation, electricity, heating systems, replacement of elevator equipment, etc. Each repaired system requires a variety of materials. In order to introduce new technologies or innovative materials into this type of overhaul, it is worth considering in depth each object and the designed section of networks and carefully calculating each possible use of materials. In the construction market, there are many analogues of equipment with similar characteristics that can be used for such repairs.

References 1. Serpukhova EP, Franchuk DO (2018) Innovative approaches in the management of repair and construction works of buildings. In: Shuvalov MV, Ermolaev EE (eds) Innovative strategies for the development of management in construction and urban economy, Samara. Samara State Technical University, Samara, pp 192–196 2. Fomina IG, Ivanova DV (2019) The use of economic-mathematical methods in enterprise management. Syst Anal Des Control XXIII(3):125–133 3. Semenov NN (2013) Management of resource-saving activities, 1st edn. INFA, Moscow 4. Gernay T, Ni S, Unobe D, Lucherini A, Cdhaudhary R, Van Coile R (2023) Cost-benefit analysis of fire protection in buildings: Application of a present net value approach. Fire Technol 5. Mantulenko VV, Domnina SV (2022) Innovations in construction and transport. In: Ashmarina SI, Mantulenko VV (eds) Proceedings of the International Conference Engineering Innovations and Sustainable Development. Lecture Notes in Civil Engineering, vol 210. Springer, Cham, pp 319–324. https://doi.org/10.1007/978-3-030-90843-0_36 6. Kornilova AD, Acri EP, Balkin VM (2022) Justification of the new technologies choice for repair and construction works. In: Ashmarina SI, Mantulenko VV (eds) Proceedings of the International Conference Engineering Innovations and Sustainable Development. Lecture Notes in Civil Engineering, vol 210. Springer, Cham, pp 285–291. https://doi.org/10.1007/ 978-3-030-90843-0_32

Study of the Russian Market of Telecom Infrastructure Operators E. S. Smolina(B)

and E. A. Kalashnikova

Samara State University of Economics, Samara, Russia [email protected]

Abstract. Mobile communications and mobile Internet have become one of the dominant aspects of everyday life, the absence of which is already impossible to imagine. A lot of people believe that mobile operators provide us with cellular communications, but this is an erroneous judgment. The process of providing it to users begins with the construction of cell towers, which is currently being done mainly by independent operators of the communication infrastructure, not by mobile operators. This contribution considers in detail the market of independent infrastructure operators for the period 2015–2021. The authors describe the forecast for its further development. In addition, special attention is focused on issues related to the lease of tower structures by cellular operators. The research purpose is to summarize and analyze current trends in the development of a new market associated with the market for the provision of mobile communications services. The objectives of this work are to study the growth rate of telecommunication infrastructure, the «contracting» of towers, on the basis of which it is possible to assess the market development trends and its immediate prospects. Keywords: Cellular Communications Infrastructure · Tower Operators Infrastructure Market · Tower Operators

1 Introduction To date, mobile users are making increasing demands on the quality of services provided by its operators. So, if about ten years ago the priority was the ability to make calls and send SMS messages, now users need to have access to audio and video files, communicate via video and share information from their device without any time limits, as well as from anywhere in the world. Thus, the communication infrastructure has come a long way of development, whereby the successful implementation of the multiple needs of mobile users is possible. Despite the high relevance of this topic, the issue has not yet been widely covered in the scientific literature, since the market for tower communications infrastructure in Russia is undergoing an active formation stage. The materials are presented mainly by analytical studies and materials of specialized agencies and publicists, such as, for example, ICT. Moscow – an open platform about digital technologies in Moscow, reviews of business publications such as RBC, Kommersant and others. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 208–214, 2023. https://doi.org/10.1007/978-3-031-38122-5_28

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The purpose of this study is to summarize and analyze actual trends in the development of a market of mobile communications services and a new market related to the first one – the market of telecom infrastructure. This market in Russia can be characterized as oligopolistic which predetermines specific features of its development and functioning of the emerging tower infrastructure.

2 Methodology For the purpose of this study, reviews of the development indicators of the market for tower infrastructure of cellular networks for the period from 2015 to the end of 2021 were considered. The authors analyze such a market parameter as the rental rate for the use of the tower infrastructure, identify and systematize factors in the dynamics of the rental rate. The priority research methods are content analysis of specialized publications and reviews, summarizing their results and identifying trends based on trend building.

3 Results In Russia, there is a wide industry of infrastructure telecom operators, which is based on the construction, acquisition and maintenance of antenna-mast structures (AMS) with a view to their subsequent leasing to mobile operators. At the same time, the market of mobile operators in Russia is oligopolistic and is represented mainly by the Big Four – Megafon, Vimpelcom (Beeline), MTS and Tele2. The number of infrastructure operators is much higher, although the largest players are also clearly distinguished in this market: Russian Towers, Vertical, Service Telecom [1]. Achieving the economic efficiency of this business is due to the fact that the communication object is provided to several «players» of the market at the same time. In turn, the mobile operator manages to reduce its costs through significant savings in resources due to the rejection of self-construction and further maintenance of its engineering structures. Thus, tower operators «take on themselves» not only the placement of the structure and the connection of the base station on it, but also the organization of monitoring and control of electricity consumption, as well as ensuring the safety of the facility. In addition, they are engaged in the organizational work with city and municipal authorities and owners of land and buildings. It is worth noting a significant increase in demand for services provided by communication infrastructure operators during the COVID-19 pandemic, which was caused by a sharp increase in traffic. In this regard, mobile operators faced the difficult task of increasing the capacity of their network infrastructure, the successful solution of which required specialized knowledge and a significant amount of resources, which, in turn, tower operators possessed. The Russian Towers company, one of the largest representatives of the Russian tower market, is currently actively promoting the use of a service approach to network infrastructure as part of its general operation by several mobile operators at once, which has gone through several stages: from sharing the location, there was a transition to a passive infrastructure, then to an active infrastructure.

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Such companies build their activities in the following way. At the first stage, a technical analysis is carried out, which allows you to identify a location that requires improved coverage, then negotiations with representatives of local governments on the development of networks, after which the construction of the first layer – the basic infrastructure – takes place, on which operators will place equipment for subsequent provision services to mobile users [1]. As for the size of the tower market in Russia, which is in sixth place in the world in terms of the number of high-rise structures, at the end of 2021 the number of structures was about 92.5 thousand (Fig. 1). The growth rate of the fleet of poles, towers and masts during 2015–2021 are stable [2].

9% 4%

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66,7

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7%

5%

5% 70,2

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8%

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Fig. 1. The number of free-standing supports, masts and towers, thousand (Source: authors based on [2])

Thus, in 2019, it was possible to achieve an increase in the number of free-standing poles, masts and towers thanks to the efforts of such independent representatives of the tower market as Russian Towers, ServiceTelecom and Vertical. In 2020, the half of 6.4 thousand new free-standing high-rise structures came from mobile operators, the rest were commissioned by independent infrastructure operators, whose fleet expansion is more than 20% per year (Fig. 2). It is worth noting the record high rates of commissioning of new facilities even under the conditions of the self-isolation regime, which was introduced in the second quarter of 2020 [1]. One of the most important indicators of the tower infrastructure market, along with the number of buildings, is the occupancy of the towers (tenancy ratio). Thus, the average number of tenants per facility for independent tower operators averages 1.4–1.8 (Fig. 3). During the period 2016–2019, there was a constant increase in the above indicator for the portfolio of structures, which can be explained by the maturing of the high-rise

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7,5 6,4 5 3,6

3,4

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1,8

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DEUTSCHE FUNKTURM (GERM ANY) 2

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1,7 1,6

CELLNEX (ITALY) 0

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Fig. 3. Average number of lease contracts per «tower», examples (Source: authors based on [3])

park: instead of building new towers, operators prefer to place them on already built facilities (both their own and leased ones). In 2020, however, the process of increasing the tenancy ratio has slowed down significantly due to the fact that the number of tenants in new towers rarely exceeds one.

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For example, if a pylon is being built by Vimpelcom to cover a spot of cellular communications, this may indicate that this point is not promising for telecom infrastructure companies, so the chances of finding a second tenant in this case are minimized [1]. Special attention should be paid to one of the most important drivers of revenue, namely, rental rates, which practically do not change. According to market research, in 2021, total rental payments amounted to almost 7 billion rubles [1]. It is worth noting that the process of assessing the size of rental rates and building statistical trends in this area is significantly complicated due to the fact that at the moment infrastructure operators are not ready to provide the public with complete information on the operational and financial performance of their activities, and mobile operators, in their turn, to disclose individual revenue figures from the rental of their sites. In this regard, a survey of players of the tower market acts as the only tool available to researchers to identify the range of variation in rental rates and determine their average values for Moscow and other regions. Among the most important positive trends regarding this driver is the rejection of dumping in the Russian regions. So, if a few years ago the range of rental rates was 11–15 thousand rubles per month, then in 2021 the prices offered by even the most «aggressive» operators do not fall below 17 thousand rubles [1]. However, there is also a negative factor in the form of the refusal of some tower operators from indexing rates (which is explained by them by a decrease in the cost of capital resources). The consequence of such a price policy is stagnation in the markets of Moscow and the Moscow region, which are of particular importance for the country. Figure 4 shows the main factors that determine the price of renting a place on a cellular communication facility built by an infrastructure operator.

Geometric area of the placed equipment Monthly cost of electricity

Height of placement of equipment on AMS

Rent amount

The need to place equipment in a container / on site Presence/absence of additional services Fig. 4. Factors in the formation of rent (Source: authors based on [4])

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In this regard, the experts conclude that a small number of relatively more expensive objects for the placement of regional electrical networks (REN), designed specifically for installation in special urban cultural and historical locations, as well as involving underground placement of container-hardware, and, accordingly, a small number expensive lease agreements will not be able to balance the manifestation of this negative trend [1]. This trend is further exacerbated by the fact that the development of cellular networks proceeded from the center, respectively, today in large cities and towns the required coverage density and network capacity can be considered conditionally achieved, with the exception of marginal and developing incremental networks, urban agglomerations of territories. The areas of such spaces are quite significant and allow placing infrastructure objects and equipment in compliance with all the requirements of the market regulator regarding the distance from residential buildings and social facilities. Other «white spots» are represented mainly by small settlements, highways, spaces along the railway lines between cities. Investing in the development of mobile networks and their infrastructure in such territories is not yet of significant commercial interest for either mobile operators or tower market players due to long (sometimes over 50 years) payback periods. At the same time, consolidation trends intensified in the Russian tower infrastructure market by the end of 2021: Vimpelcom sold its portfolio (15.4 thousand towers) to Service Telecom, MegaFon sold 17 thousand Kismet Capital Group (KCG) towers in October 2021. The Russian Towers group (7.2 thousand AMS throughout Russia) was also sold to KCG at the beginning of the year by UFG Private Equity, as a result of the transaction it became part of New Towers JSC, created on the basis of the assets of Vertical and the First Tower Company MegaFon, which were also acquired by KCG [3].

4 Discussion According to market researchers, the predicted value of the average rental rate for a place to place a base station on tower structures will not be subject to significant changes and will average 28–29 thousand rubles per month, while the size of the rental market will continue living growth through the construction of new towers. Thus, in 2022–2023, the construction and commissioning of a fleet of new facilities is predicted, the size of which will reach at least 4 thousand structures, most of which are dual-use supports in Moscow. In addition, about 50% of the park’s facilities will be built by independent infrastructure operators. As for the growth potential of tower portfolios, it will not be exhausted for a long time due to the upcoming migration of roof-top sites to stand-alone supports, according to experts [3]. As one of the likely trends, researchers of the tower market note that in the near future all mobile operators will switch to a virtual format: they will carry out their activities at the facilities owned by tower operators, without having their own high-rise infrastructure [4]. The competitive position of mobile operators in the infrastructure market is also weakened due to the fact that their main rivals, including Yandex, Sberbank, Tinkoff and social networks, are creating and actively developing their own mobile communications ecosystems and online services. In addition, the successful operation of mobile operators

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requires building relationships with service users, as well as government authorities regarding the allocation of frequencies [1]. Communication technologies issues are considered nowadays on various (global and regional) levels [5–8]. For further research, it would be significant to analyze global trends in this industry and their impact on the development of the Russian telecommunication market and infrastructure.

5 Conclusions Thus, it is reasonable to assume that in the near future, mobile operators will completely abandon the independent construction and maintenance of networks, since this functionality will be transferred to tower companies that will become their full-fledged technology partners. At the same time, the need to cover «white spots» along highways and railway lines, which are fundamentally not of interest to operators, continues to increase, since these territories usually do not have permanently residing subscribers or their number is extremely small compared to urban settlements. Subject to the state support or co-financing on the terms of public–private partnership, infrastructure tower companies could implement projects for the construction of antenna-mast structures to accommodate base stations of mobile operators in order to comprehensively cover areas and complex territories, forming a coverage offer as a service for mobile operators connections. In turn, mobile operators will be able to focus on finding ways to grow their business through the creation of new subscriber services.

References 1. New Towers Homepage. https://newtowers.ru/. Last accessed 15 May 2023 2. AC&M: Russian Tower Market 2020. http://www.acm-consulting.com/news-and-data/datadownloads/cat_view/12-acam.html?limit=5&order=date&dir=DESC. Last accessed 5 May 2023 3. Tishina Yu, Nikitina O: Towers are multiplying: a new player has entered the carrier infrastructure market. https://www.kommersant.ru/doc/5721514. Last accessed 5 May 2023 4. Kapranov O: In the near future, all mobile operators will become «virtual». https://rg.ru/2022/ 02/06/v-nedalekom-budushchem-vse-operatory-sotovoj-sviazi-stanut-virtualnymi.html. Last accessed 5 May 2023 5. Patil S, Patil YS (2014) A review on outsourcing with a special reference to telecom operations. Procedia – Soc Behav Sci 133:400–416 6. Chen C-M (2019) Evaluating the efficiency change and productivity progress of the top global telecom operators since OTT’s prevalence. Telecommun Policy 43(7):101805 7. De Reuver M, Verschuur E, Nikayin F, Cerpa N, Bouwman H (2015) Collective action for mobile payment platforms: a case study on collaboration issues between banks and telecom operators. Electron Commer Res Appl 14(5):331–344 8. Hou L (2014) A review of telecom markets in the EU: What did the European Commission learn or not from the past? Comput Law Secur Rev 30(6):710–719

Challenges for Engineering Innovative Development

Management Automation of the Development Process of the Industrial Enterprise Documentation O. V. Bakanach1(B)

, D. S. Bratchinin2 , A. A. Kudryashov3 and D. V. Gostev3

,

1 Samara State University of Economics, Samara, Russia

[email protected]

2 Public Joint Stock Company «UEC-Kuznetsov», Samara, Russia 3 Povolzhskiy State University of Telecommunications and Informatics, Samara, Russia

Abstract. The contribution investigates issues of the management automation of the process of the documentation development on the example of the enterprises of the United Engine Corporation as a business process that significantly affects the increase in the efficiency of production activities. Based on the use of tools of general, strategic and functional management, an assessment of the strategic alternatives of the corporation was carried out, which made it possible to designate the automation of business processes, including the processes of managing the design documentation as a key direction in the strategic development of the corporation’s enterprises. The automation of any business process formalized in the regulatory documents consists in transferring the functioning of this process to an electronic system. Different technologies and systems implementing these technologies are used for different processes. To determine technologies and systems used in the automation of the business process «development of design documentation», the authors carried out its decomposition to the processes of the second level, and for each process, technologies and systems are indicated which are used as priority ones, as well as possible ones for the application. Keywords: Automation of the Management Process · Business Process · Design Documentation · Process Decomposition

1 Introduction When organizing the production at enterprises of aviation and space engine building, one of the first implemented processes is a process of managing the design documentation. The results of this process are the input data for the production preparation and the actual production. Therefore, the errors or delays made during the development of the design documentation will require much more costs to eliminate them at the next stages than it is required to prevent them at the development stage. Thus, improving the efficiency of the design documentation management process is a prerequisite for improving the overall efficiency of the enterprise’s output. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 217–222, 2023. https://doi.org/10.1007/978-3-031-38122-5_29

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One of the ways to improve the efficiency of the design documentation management process is its automation [1]. Automation of the design documentation management process is a set of measures aimed at the transition to the development, approval, storage and use of the design documentation in the electronic form based on the existing local area network of an enterprise. Software products that allow you to implement automation of the design documentation management are PLM systems that provide storage and management of document files, support for specialized documents that characterize the composition and structure of product elements, management of levels, versions and revisions of documents, as well as their operational visualization [2, 3]. For the direct creation of the design documentation, the following tools are used: CAD systems – to create graphic documents (drawings, diagrams), office packages – to create text documents (sheets, specifications). Despite the extensive use of the above programs at domestic enterprises, in general, it can be said that, in the end, they only help in the production of paper documentation. Enterprises do not develop and implement standardization documents aimed at legitimization of design documents in the electronic form. This issue is especially acute at the enterprises of the aircraft engine building industry in Russia.

2 Methodology The theoretical and methodological basis of this study are works of domestic and foreign authors in the field of general, strategic and functional management. The authors pay special attention to the process approach, which is understood as the management of the organization’s activities as a system of interrelated business processes. The process approach is focused, first of all, not on the organizational structure of the enterprise, but on business processes, the ultimate goal of which is the creation of products or services that are of value to external or internal consumers.

3 Results The enterprises of the United Engine Corporation Rostec (hereinafter UEC) are an integrated structure in which all phases of the technological chain of the engine creation are concentrated: development – production – market launch and sales – logistics support during the operation by a client (customer), as well as all types of repair of manufactured products. An analysis of enterprises by the life cycle of I. Adizes [4] showed that their processes contain a number of features from various stages of the life cycle after the «stability» stage. The following features are most pronounced: excessive control and management; issuance of excessive amounts of documentation; transition of actual control to formal one; focusing not on the cause of a problem, but on the principle of «finding the guilty». To «treat» the enterprise at this stage, it is usually recommended to take the following measures: to focus on the client, to develop or adjust a strategy, to optimize business processes. The above measures are implemented, as a rule, in the program of anti-crisis measures, while the automation of the business process of managing the design documentation is an integral part of the business processes optimization.

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According to the results of the analysis of enterprises according to Porter’s 5 Forces, it can be concluded that, on the one hand, high thresholds for entering the industry, as well as the policy of the managing corporation, minimize the possibility of competition in the main market niche of companies. However, the existing internal competition, namely the possibility of obtaining new orders from the managing corporation, determines the need to have advantages in terms of project implementation time. This is possible, among other things, by reducing the time for passing the business process of managing the design documentation. The assessment of strategic alternatives for UEC enterprises based on their strengths and weaknesses, taking into account external opportunities and threats, made it possible to identify the following key strategic directions for their development: automation of business processes, including design documentation management processes; regulation of business processes at the enterprise; renovation of worn-out machine park. The first two directions determine the need to develop a concept for the automation of the business process of the design documentation management. Currently, UEC enterprises can distinguish 3 main business processes of the so-called «zero» level: – manufacturing of aviation, rocket engines and ground gas turbine installations; – repair of aircraft engines and rifled gas turbine units; – development of aircraft engines. The business process «Development of aircraft engines» is divided into a number of stages, one of which is the stage «development of design documentation». The business process «management of design documentation» is a sub-stage of the process «development of design documentation». The decomposition of the process «development of aircraft engines» into the processes of the «first» level in accordance with [4] is shown in Fig. 1.

Development of draft documentation

Prototype production

Development of a technical project

Development of design documentation

Carrying out state tests

Design documentation approval

Fig. 1. Decomposition of the process «development of aircraft engines» into processes of the first level (Source: authors).

To determine the technologies and systems used in the automation of the business process «development of design documentation», we will further decompose it into second-level processes, and for each such process we will indicate the technologies and systems – used in priority, as well as possible for the application (Fig. 2).

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Carrying out calculations

Formation of documentation

Documentation approval

Technologies RMS

CML-Bench TechExpert REQCHECKER

CAE CFD ANSYS CFX Nastral Fluent

CAD Systems NX Compas Solid Edge

PLM

Teamcenter Lotsman Windchill

Fig. 2. Decomposition of the process «development of design documentation» into processes of the second level (Source: authors).

Let’s consider the automation stages of the design documentation development: Stage 0 – «paper design documentation»: this is the starting stage for many industrial enterprises. Accounting and storage are carried out at this stage in the paper form. There is no process automation. Stage 1 – «paper drawing + electronic geometric model (hereinafter EGM)»: in fact, this is a stage of digitizing the paper design documentation. The work is underway to scan the paper design documentation, record and store it in the PLM system. This stage allows access to documents without the need to make a paper copy. However, if it is necessary to develop a drawing of another part from the base one, it will be possible to use only the model as a basis. The entire drawing will have to be formed from scratch. Stage 2 – «electronic drawing + EGM»: it is similar to the previous stage, but in this case, an associative editable vector drawing is made on the basis of the model. In addition to the ability to quickly edit the drawing, this approach has another advantage that is not obvious at first glance: making a drawing based on a model creates a one-to-one correspondence between the model and the drawing and eliminates errors in manual transfer of information. Stage 3 – «only EGM»: only a model was developed, on which the requirements for manufacturing and control (requirements for surface roughness, tolerances for dimensions, shape and location of surfaces) are applied. The stage is not as universal as the previous one due to the lack of a drawing. However, with properly configured libraries of the equipment and tools used, this approach can significantly reduce the time for writing control programs for CNC machines. Thus, to solve the issue of the management automation of the process of the design documentation development, one should choose, including in accordance with the instructions of the managing corporation UEC: – Siemens NX CAD system for the development of graphic design documents in accordance with the requirements of standards; – MS Word for the development of text design documents in accordance with the requirements of standards;

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– Siemens Teamcenter PLM system for coordination, accounting and storage of design documentation, which allows implementing an integrated approach to all aspects of the information life of a product [5–7].

4 Discussion The instability of the economic situation, the tightening of competition, the increasing demands of consumers for the produced products, the shortening of the product life cycle greatly complicate the management process, and development prospects are becoming less and less predictable. The modern market requires from its participants to quickly respond to rapidly changing conditions. In a competitive environment, time to market is often the determining factor in the success of that product. A customer who has received a product here and now and has already focused his activities specifically on the product received, most likely, will no longer be interested in even a slightly higher quality and slightly cheaper product of the same type, but entered the market later. The same idea is one of the postulates of the SCRUM project management methodology [8]. The situation mentioned above is especially obvious and acute at large industrial enterprises that produce science-intensive products, and the example of UEC enterprises is indicative here. The current situation and the requirements of the parent corporation to manufacture prototypes of engines with technologies as close as possible to serial ones increase the production time of the prototype, which determines the need to look for ways to optimize at all stages of product development and manufacture [9–13]. One of these ways is to automate entire processes or their individual subprocesses. The stage preceding the manufacture of the product is the stage of the design documentation development. Therefore, the automation of this process will reduce the time chain of the manufacturing process already at the initial stage, and will also create the potential for the possibility of automating the following processes – technological preparation of production, production planning, manufacturing itself which will subsequently lead to a synergistic effect and a serious reduction in time costs.

5 Conclusion Key tasks that automation of the documentation management process allows to solve: – reduction of time costs when agreeing on the design documentation, as well as reducing the response time to comments on the design documentation; – reduction of errors in the formation of design documentation due to the use of a single database for storing the design documentation (with the same records, previously created documents) in the PLM system; – reduction of time due to the use of previously created models of parts, drawings by copying with subsequent modification to create new parts, instead of creating a document from scratch; – the possibility of operational monitoring of the situation on the state of issuing design documents in the context of departments, products, approval status, etc. means of the PLM system for further management decision-making;

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– the possibility of automated compilation of reports on the volume of issued design documentation in the context of time periods for the formation of reporting documentation.

References 1. Directum Club: Creation of a single digital process for the execution of design work. https:// club.directum.ru/award/255547. Last accessed 2 Apr 2023 2. Karniel A, Reich Y (2011) Managing the dynamics of new product development processes, 1st edn. Springer, London 3. Saaksvuori A, Immonen A (2008) Product lifecycle management, 1st edn. Springer, Berlin 4. Adizes I (1990) Corporate lifecycles: How and why corporations grow and die and what to do about it, 1st edn. The Adizes Institute, Carpinteria 5. Hirz M, Dietrich W, Gfrerrer A, Lang J (2013) Integrated computer-aided design in automotive development: Development processes, geometric fundamentals, methods of CAD, knowledge-based engineering data management, 1st edn. Springer, Berlin 6. Torop DN, Terlikov VV (2011) Teamcenter. Start of work, 1st edn. DMK Press, Moscow 7. Bakanach OV, Komyagin AV (2021) Analysis of competitive strategy development in an innovative company. In: Ashmarina S, Mantulenko V, Vochozka M (eds) Engineering economics: decisions and solutions from Eurasian perspective, vol 139. engineering economics week 2020, lecture notes in networks and systems. Springer, Cham, pp 659–665 8. Sutherland JJ (2019) The Scrum fieldbook: a master class on accelerating performance, getting results, and defining the future, 1st edn. Currency, New York 9. Rigger E, Shea K, Stankovi´c T (2022) Method for identification and integration of design automation tasks in industrial contexts. Adv Eng Inform 52:101558 10. Gomes M, Serucs I (2023) The perception of the management and lower-level employees of the impacts of using Robotic Process Automation: the case of a shared services company. Procedia Comput Sci 219:129–138 11. Baratov D (2022) Control technology of technical documentation of automation and telemechanics on transport. Transport Res Procedia 63:214–222 12. de Oliveira Hansen JP, da Silva ER, Bilberg A, Bro C (2021) Design and development of automation equipment based on digital twins and virtual commissioning. Procedia CIRP 104:1167–1172 13. Makowski PT, Kajikawa Y (2021) Automation-driven innovation management? Toward innovation-automation-strategy cycle. Technol Forecast Soc Chang 168:120723

Transformation Directions When Introducing Artificial Intelligence into the Business Model of Organization L. E. Popok1

and V. V. Mantulenko2(B)

1 Kuban State Agrarian University, Krasnodar, Russia

[email protected]

2 Samara State University of Economics, Samara, Russia

[email protected]

Abstract. Artificial intelligence (AI) technologies have left the development state and are being actively introduced not only into the daily life of society, but also into the business processes of companies. Large businesses already have a successful track record of implementing AI solutions, and medium and small businesses are starting to adopt it, reducing the technology gap and increasing their competitiveness. In addition to the obvious positive effects, the introduction of AI into the business model of an organization can lead to serious transformations in various aspects of its activity, including reorientation to a different target audience, changing the business model and the format of interaction with customers, automating decision-making processes, reducing personnel costs and improving the security and information protection. It is important for medium and small businesses to be aware of opportunities and risks that the introduction of AI solutions into their operations and strategic development plans entails. The authors analyze the effects and risks arising from different levels of penetration of AI solutions into the business processes of companies. Keywords: Artificial Intelligence · Business Model · Digital Transformation · Machine Learning · Neural Networks

1 Introduction Artificial intelligence (AI) technologies are no longer science fiction. They are in the active stage of implementation. AI tools find their application in various spheres of life, including business. Moreover, in some sectors of the economy, the use of artificial intelligence is becoming one of the tools of competition, bringing the level of automation of business processes to a qualitatively new level [1]. PricewaterhouseCoopers estimates the growth of world GDP due to the introduction of elements of artificial intelligence into the economy in the amount of 14%, or almost $16 million [2]. McKinsey analysts in their recent study declare that more than 70% of large international companies are ready to implement machine learning and artificial intelligence in at least one of their key business processes [3]. A survey of Russian © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 223–227, 2023. https://doi.org/10.1007/978-3-031-38122-5_30

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companies conducted by TAdviser showed that 30% of respondents are preparing AI solutions for use as a scalable solution for the purpose of its further implementation in the external market [4]. These studies show that the introduction of AI is not limited to the process automation. On the one hand, it could lead to major business model transformations driven by new opportunities that AI provides. On the other hand, the degree of penetration of AI into the company’s business processes brings with it not only new opportunities, but also certain problems and risks. Depending on the depth of penetration, the company faces a certain set of challenges. We assume that the set of opportunities, risks and challenges is common for all companies implementing AI technologies, and depends on the degree of their penetration into business processes.

2 Methodology Based on open data, analytical reviews and the results of interviews with COOs and digital development directors of 118 medium and large Russian companies (including the results of a survey of 100 companies presented in the TAdvisor report [4]), we propose a classification of companies by the penetration level of artificial intelligence technologies into their business processes. When constructing the classification, the following signs of the AI penetration into the business model were taken into account: – availability of a centralized system for collecting, storing and analyzing data; – availability and characteristics of the infrastructure for working with machine learning solutions within the company; – use of BI-analytics and dashboards by managers in operational activities. Based on the presence, level of qualitative and quantitative implementation of the above factors, it is possible to assess the penetration degree of artificial intelligence technologies into business processes and compare them with the opportunities and risks of the company’s development.

3 Review of Contemporary Trends According to the analytical center TAdviser [4], as of the end of 2020, more than 85% of large Russian organizations have already implemented or are in the process of introducing elements of artificial intelligence into their business processes. As for medium and small businesses, here the degree of penetration of AI is significantly lower. In an attempt to catch up with the pioneers, these companies are adopting the cases of large businesses, trying to shift successful examples of the AI application to their reality. In this context, one of the main tasks of small businesses is to understand the level of readiness of their information infrastructure, the budgets for the implementation of AI initiatives and possible risks.

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Globally, AI-powered accelerated automation is one of the top three most significant enterprise architecture trends in 2022. Gartner’s Hype Cycle annual report identifies 25 emerging technologies, making this trend one of the top three [5]. At the same time, it is very important to organize a consistent and safe introduction of AI technologies into the practice of an enterprise. According to research by SuperJob, 17% of Russians are afraid of the further development of artificial intelligence and machine learning technologies, justifying their fear of job losses [6]. Leading players in the IT market are also afraid of the uncontrolled development and introduction of AI in business. More than 1,000 world-renowned experts in the field of computer science and IT technologies, among them Elon Musk and Steve Wozniak, signed an open letter calling for the suspension of neural network training until reliable control and security protocols are developed [7].

4 Results Depending on the penetration depth of AI technologies into the activities of companies, four groups can be distinguished: The first group – «initial level of penetration» is characterized by a non-systemic interest in tools based on machine learning, the lack of an appropriate infrastructure within the company for the implementation of AI technologies, and a minimum level of expertise within the company. Often, the introduction of elements of machine learning and artificial intelligence in such companies is initiated by individual employees or a group of enthusiasts. The threshold for entering machine learning projects today is quite low and sometimes does not even require specialized knowledge. Usually, the first practices of using AI in the company’s activities begin as an experiment, and after the «run-in» and confirmation of effectiveness, the company introduces these elements into operational activities. The most common tool is chatbots that increase the efficiency of the technical support service or sales department. The most acute problem of companies belonging to this group is the resistance of ordinary employees who express fears about layoffs and sabotage the introduction of intelligent systems in every possible way. This problem can be solved by constantly improving the qualifications of employees, as well as expanding functional responsibilities. For example, by implementing a chatbot, employees can participate in its training, improve the accuracy of answers, and pay more attention to complex questions from customers. A group of companies with a «fragmentary level of penetration» is characterized by scaling up the use of effective AI solutions, applying them in individual business processes of the company, building up their own expertise in AI, using BI analytics at the level of the company management. Based on successful experiments in the use of AI solutions, the company is trying to scale these solutions and transfer them to related processes. It is at this depth of penetration that companies experience the greatest transformational difficulties, as the implemented solutions undermine the usual patterns of work and conflict with them. However, increasing the volume of AI processes, the company faces the question of the

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need to hire narrow specialists with competencies that allow them to work with data. These specialists also have to integrate into the existing system, which also adds to the complexity of maintaining an effective management structure. The assessment of the feasibility of spending on the implementation of AI at this stage also comes to the fore and requires updating the system of metrics and KPIs. Only by properly assessing the investment and effectiveness of implementing AI solutions a company can continue to scale the AI solutions and further transform its business model. Companies belonging to the group with «significant level of penetration» perceive the implemented AI solutions as ordinary and familiar. These companies have a wellestablished infrastructure for collecting, storing and analyzing data, and the strategy for developing AI solutions is included in the development strategy. At this level of penetration, the company’s information infrastructure becomes a resource provider for the AI solutions. For example, to increase the efficiency of a chatbot, it is necessary to give it access to the maximum possible array of accumulated data. It is important to provide the data infrastructure not only with highly qualified employees, but also to establish the division of their labor – this is the most effective way to intensify work with data within the company. The key problem for such companies is a significant increase in costs to establish a data management system, to attract highly paid specialists and to purchase equipment. The deepest level of penetration can be called «Penetration to the core level». In such companies, AI solutions and tools based on neural networks capture systemic business processes and transform them towards predominant decision-making based on data. The company has impressive internal AI expertise, and Data Science is used as a familiar tool for solving problems. At this level of penetration, AI is embedded at all levels of decision-making and minimizes managerial errors. Between different departments using AI solutions for their functional activities, there is a synergy effect from the cross use of AI solutions and information infrastructure. As in the previous group, the main problem remains the management of the budget allocated for AI and data infrastructure, as well as the construction of an operational analysis of the effectiveness of the use of tools. Otherwise, machine learning, neural networks and artificial intelligence can turn into a trendy, but useless and high-cost company project.

5 Conclusion The introduction of elements of artificial intelligence in a company can be a long and complex process that occurs in stages. Each stage of the AI transformation causes changes in certain business processes and poses a different set of challenges for management. However, by understanding in advance what difficulties await the organization along this path, it is possible to prepare for them and transfer traditional processes to the rails of artificial intelligence at a lower cost. In addition, it is important to understand that the AI transformation can affect the interaction between employees of the company and change the structure of the organization. Some employees may have difficulties transitioning to new technologies, which can lead to reduced productivity and inefficient use of resources.

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However, with the right approach, the AI transformation can significantly increase the efficiency of a company and improve the quality of its products and services. For example, the introduction of AI technologies in the manufacturing process can increase the accuracy and speed of the product release, and in the field of marketing, make advertising more targeted and effective. All in all, understanding the challenges associated with AI transformation and developing a strategy to address them are essential steps for a successful digital transformation project. At the same time, it must be remembered that the transition to new technologies, especially those associated with artificial intelligence, is not only a change in business processes, but also a cultural and organizational process that requires a careful and competent approach.

References 1. Makeenok A: Four stages of AI implementation. https://big-i.ru/management/upravlenie-izm eneniyami/chetyre-etapa-vnedreniya-ii/. Accessed 2 Apr 2023 2. Sizing the prize: PwC’s Global Artificial Intelligence Study: Exploiting the AI Revolution. What’s the real value of AI for your business and how can you capitalise? https://www.pwc. com/gx/en/issues/data-and-analytics/publications/artificial-intelligence-study.html. Accessed 2 Apr 2023 3. McKinsey Global Survey: The state of AI in 2021, https://www.mckinsey.com/capabilities/ quantumblack/our-insights/global-survey-the-state-of-ai-in-2021. Accessed 2 Apr 2023 4. TAdviser: Penetration of solutions based on artificial intelligence in the Russian companies. https://www.tadviser.ru/index.php/Ctat:Iccledovanie:_Pponiknovenie_pexe ni_na_baze_ickycctvennogo_intellekta_v_poccickix_kompanix. Accessed 2 Apr 2023 5. What’s New in the 2022 Gartner Hype Cycle for Emerging Technologies. https://www.gar tner.com/en/articles/what-s-new-in-the-2022-gartner-hype-cycle-for-emerging-technologies. Accessed 2 Apr 2023 6. SuperJob: Most of all in the development of artificial intelligence, Russians are afraid of the prospect of losing their jobs. https://www.superjob.ru/research/articles/113992/bolshevsego-v-razvitii-iskusstvennogo-intellekta-rossiyan-pugaet-perspektiva-poteri-raboty/?utm_ source=rassylka-issledovaniya&utm_medium=email&utm_campaign=20230402-rassylkaissledovaniya-23511&utm_content=13949564-1000001-0. Accessed 2 Apr 2023 7. Deadline: Elon Musk & Steve Wozniak Sign Open Letter Calling For Moratorium On Some Advanced A.I. Systems. https://deadline.com/2023/03/elon-musk-steve-wozniak-open-lettermoratorium-advanced-ai-systems-1235312590/. Accessed 2 Apr 2023

Issues of Information Security of Industries and Enterprises in the Digital Age O. A. Bulavko(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. The development of Internet technologies covers almost all spheres of people’s lives. In the digital era, companies should pay more attention to information and economic security issues, work effectively with information, information and communication technologies in order to reach a new development level. This contribution focuses on the issues of information security of enterprises and its optimization in the context of digital economy. The author substantiated the importance of introducing digital solutions in the process of managing the information security of companies. The need for a data analysis module, signature analysis of a document, which can improve the economic security at enterprises, is noted. Measures are proposed that change the expansion structure, based on the client-server architecture and affecting the increase in efficiency by innovative potential. As a software solution, the author proposed an extension for the Google Chrome browser, designed on the basis of a client-server model and running on any operating system with an appropriate browser available for free use. Keywords: Client-Server Architecture · Digital Age · Economic Relations · Economic Security · Information Security · Innovation Potential

1 Introduction Nowadays, it is quite impossible to imagine our society without the Internet. With the rapid development of the Internet and its capabilities, the issues of anonymity and security of individuals and organizations have been getting more and more relevant. The need to manage the economic and information security is related to the improvement of the innovative potential of contemporary organizations. It is also associated with the transition to the digital and information society. Future success in the intensifying hypercompetitive high-tech struggle on the global stage is linked to the development and deployment of strong artificial intelligence (AI) ecosystems based on interfaces and integrated neural networks. Issues of information security are considered in a number of contemporary scientific works and expert reports [1–7] and will remain their significance for a long period of time.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 228–234, 2023. https://doi.org/10.1007/978-3-031-38122-5_31

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2 Methodology In the framework of this research, the authors used general scientific methods, comparative and statistical analysis, synthesis and generalization, dynamic methods were applied within the framework of financial analysis. In the course of the study, methods of current and prospective analysis, methods of structure analysis were applied. Additive and multiplicative methods are considered. JavaScript is used as the main programming language of the client side and the interpreted scripting language Ruby is used as the programming language of the server side. For communication with the server part to work, a constant Internet connection is required. The structure of the extension is based on a client-server architecture. The main actions for blocking and analyzing data are performed on the client side. While the methods of a higher level of tracking prevention are based on the exchange of information and their subsequent processing on the server side. The implementation of request generation on the server side requires maximum optimization to reduce the latency and faster the response on the client side. On the server side of the software solution, statistical data of the performed experiments are stored for their subsequent use as a basis for improving the performance of the algorithm by modifying the source code.

3 Results Tracking prevention system consists of five independent modules: request blocking module (Request Blocker), data analysis module (Data Analyzer), runtime isolation module (Sand Box), monitoring parameters analysis module (Status Analyzer), statistics collection module (Statistics). The system is designed in such a way that the user has the opportunity to choose the level of protection against tracking. Accordingly, at each level, the functionality of the following modules is added to the already working modules. The request blocking module is designed to block ads, information collection scripts, web beacons and analytics scripts. The data analysis module is used to analyze outgoing requests, static code analysis, handle emerging events, and eliminate non-trivial surveillance methods. The runtime sandbox is a proxy server implementation that renders the page on the server side and sends only static content to the client. The monitored parameters analysis module is designed to check the current level of the user anonymity. The main purpose is to display possible tracking vectors for the current configuration of the client application and recommendations for their elimination. The statistics collection module is used to process and store information on the performed operations of other modules and to compile a report of statistical data. The implementation of the module is made in the form of a visual part of the system – an extension dialog box called by the user in the browser. The main tasks performed during use are: collection and display of information available to any site about the current connection and browser, recommendations for eliminating the availability of each of the fields, collection of statistics on the prevention of tracking methods on the client side. Thus, the module is informational and advisory in nature and does not have functionality to protect against tracking. With it, the user interacts with the system to manage settings for other modules and to

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view information about the current anonymity level. To display information about the parameters available for collection by any resource, the process of collecting user data is simulated when the extension is enabled or at the request of the user. Using the built-in JavaScript language capabilities and additional capabilities provided by the browser’s API (Application Programming Interface), an attempt is made to collect all kinds of parameters that have value in identifying a particular user. At the same time, the data processing process does not go beyond the limits of the system used. Basically, parameters are collected that can be read by any visited resource: 1) Internet connection parameters (IP address information); 2) add-ons included in the browser; 3) the content of the request headers from the browser; 4) screen and window settings of the client application. For convenience, the user is presented with a diagram to visually display which category has the most parameters for tracking. For each type of parameters, interactive elements (buttons) are implemented that show more detailed information in the form of a list. Also, when hovering the mouse over any of the collected parameters, a recommendation is displayed to hide this parameter so that it cannot be read. These hints offer one of the possible options to prevent the collection of a particular parameter. The next function provided by the module is the ability to manage the settings of the anti-tracking system. The «Settings» extension tab provides an interface for managing configuration parameters of both individual modules and the entire system. There are three levels of tracking protection for the whole system: low, medium and high. At a low level, only the request blocking module (Request Blocker) performs actions to protect user data. At the middle level, the functionality of the data analysis module is added to the already working module. At a high level, an intermediary server is connected to the process of user interaction with a resource, which is part of the environment isolation module. Modules for collecting statistics and analyzing monitored parameters always perform their functions, regardless of the configuration of the settings. When the configuration is changed, the local extension environment allocated by the browser for each plugin is updated. Special functions in all inactive modules constantly monitor changes in the environment so as not to miss a possible signal to start work. The «Request Blocker» module is designed to block requests to servers whose address is different from the address of the visited resource. Through the use of functions provided by the browser, the module is implemented in such a way as to be able to override the standard processing of requests. That is, when the next request occurs, an event occurs, which is transferred for processing to the request blocking module. The HTTP response from the server is then processed by the browser if the request was not blocked. Request processing functionally has two approaches [8]. Through the settings interface of the «Status Analyzer» module, the user can choose one of the following methods for processing requests: signature blocking, blocking all third-party requests. After receiving detailed information about the request, the signature-based analysis method takes over by default. The developed system uses a public list of regular expressions for known advertising scripts, banners and domains, called «Easy List». This list is a plain text file that comes with the system and is loaded immediately when tracking protection is enabled. When choosing the approach based on blocking all third-party requests, the handler checks if the domain

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name of the current resource (including subdomains) matches the domain name in the request. If they differ, then the module immediately interrupts the process of sending the request. The Data Analyzer module is a part of the system implementation on the client side and is required for signature analysis of content and code executed in the browser, as well as for handling various kinds of events that occur. The implementation of the module allows you to analyze: 1) 2) 3) 4)

signature-based content; loaded code based on signatures; non-trivial tracking methods; attempts to create a request.

The data analysis module also provides full control (writes, changes and readings) of all local storages: Cookies, Local Storage, Session Storage, IndexedDB, WebSQL. The state change control method consists in setting listeners (handler functions) to the necessary events during the operation of the client application. The architecture of most modern browsers allows you to use a large set of built-in functions through an application programming interface (API). With these functions, the module gains access to track the occurrence of events and can override their behavior. In addition to organizing event processing, the module is designed to clean content from possible tracking methods based on signatures. In this case, two lists of signatures are used. The first one is similar to the one used in the module for blocking third-party requests. It is used to remove unwanted elements from the page content (blocks with ads, links to resources of analytics companies, etc.). The second list contains many names of JavaScript client-side language functions that can be used to collect user data. As in the case of the request blocking module, the user has a choice: blocking functions based on signatures, controlling their execution, or a combination of these approaches. In the first case, all functions that match the list of signatures will be removed from the document. But in this case, the functionality of the resource may disappear, which does not have the purpose of collecting user data. In the second case, the functions that pose a danger of trying to use the tracking method will be superimposed with handler functions that will check the ultimate goal of their call. For example, attempting to send data in a request after calling the function to read screen parameters will be blocked, while reading screen parameters for animation calculation will be allowed. In the case of a combination of methods, the module will both clean up the content based on signatures and add processing for calling these functions in case their call can be provoked by other parts of the code. The state change control method plays a very important role in the detection of non-trivial tracking methods. Since the implementation of these methods can be of various nature which cannot be entered into the signature database, their detection is possible only when tracking unwanted events. For example, functions in JavaScript can be reimplemented and called with a different ID (name), but the event they trigger will be the same. In addition, it must be added that the module continues its work even after the full loading of all site documents, since it is possible to dynamically change the content or load new executable code. The Sand Box module is part of the server execution of the system and contains methods for maintaining a high level of protection against tracking by downloading web pages and rendering them in a sandboxed environment [9]. For

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access from the client part, an additional class is implemented in the extension to ensure the interaction of parts of the system. The module plays the role of a content proxy server. The entire process of the site operation takes place in an isolated environment on the server, which returns only static content to the user’s browser – without code and third-party media files. With any actions on the part of the user, information about them is sent to the intermediary server, processed, and from there already in the form of a generated request for the final resource.

4 Discussion At the end of our study, we show the implementation of the runtime environment, similar to the user’s browser, made using the «Web Driver» technology, which is a software library that controls the behavior of the browser. Initially, this technology was developed as a tool for automating tests of web applications, but it can be used to create a process that works similarly to a real browser, but without a graphical interface. In this way, the runtime sandbox process recreates the user’s environment, allowing HTTP messages to be handled naturally. First of all, the module works in proxy server mode, allowing you to hide the real parameters of the Internet connection. It also allows a server-side page caching approach to optimize the speed at which content is sent to the user. Finally, the server has an SSL (cryptographic protocol) certificate and is configured to support encryption to improve the security of communication with the user application. The state change control method, just like in the data analysis module, is used to process emerging events. When using an intermediary server, the difference is that all functions for writing to local storages and for changing content will be performed in an isolated environment, which means that new settings will not be saved in the user’s browser. This is effective if the capabilities of previously unknown non-trivial tracking methods will allow you to bypass the methods of calling characteristic events. Even in this case, the resources will only have information about the server, which may not even be located in the same country as the user. Algorithms for removing unwanted content are based on the same principle as in other modules. Files with lists of signatures are also stored on the server side and functions for working with these files are available. Unwanted content can be both page elements (advertising banners, links to analytics scripts, etc.) and programming language functions used to collect data. Also, the module provides constant interaction between the user and the proxy server. After the content is returned to the client application, all user actions (in the form of information about events) are sent dynamically to the proxy server using the technology of accessing the server without reloading the page (Ajax), they are executed there and returned in the form of information about the reaction (change of content, a request to move to another page, etc.). To increase the speed of this process, the module has the ability to pre-cache most natural events (clicking on a button, submitting a form, opening internal pages). Thus, this tracking prevention method allows not only to get rid of the collection of Internet connection parameters, acting as a proxy server, but also to save the user from clientside tracking methods and non-trivial tracking methods. And reusing methods to prevent data collection in the user’s browser increases the overall efficiency of the system. The «Statistics» module, as well as the module for analyzing the monitored parameters have

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an informational and advisory nature and does not perform the functions of tracking protection [10]. Its main task is to collect the available results of the work of other modules and draw up a report on the operation of the system based on them for display to the user in a convenient format. Since it is required to cover all aspects of the system, the implementation of the module is partially implemented both on the client side and on the mediation server. The statistical data is directly stored in the database on the server side and sent to the client application upon request initiated by the user through the extension’s graphical interface. In order not to overload the traffic between the client and the proxy server, the results of the work of the anti-tracking modules on the client side are sent only after the next resource is closed. But if the user wants to see the intermediate result of processing a particular page, then it is possible to request the current report.

5 Conclusion At this stage of the socio-economic development of society, an important task of ensuring the information security of enterprises is to overcome the existing structural crisis. This is possible on the basis of identifying and supporting priority industries by the state, taking into account and developing the existing innovative and information potential of organizations. A very significant place in the system of effective development of enterprises is occupied by the assessment of the level of informatization and automation. The solution of these tasks is closely related to the possibility of stimulating economic growth through the modernization of enterprises using new innovative technologies. In the post-industrial society and the context of constant changes, according to some experts, information and communication devices, systems, high-tech production and innovative technologies play an important role. Therefore, in conclusion of this study, we can say that the diversification of the Russian economy based on the modernization of its technological, informational and managerial base is the most important condition for the implementation of national projects and an effective factor for integration into the world economy.

References 1. Dyatlov SA (2021) Artificial intelligence as an institute for the development of the digital neural network economy. News of the St. Petersburg State University of Economics 2(128):25–29 2. Kaspersky Lab: Who is following you on the Internet? https://www.kaspersky.ru/blog/webtracking-in-numbers/11849/, last accessed 03 April 2023 3. Zeng W, Koutny M (2019) Modelling and analysis of corporate efficiency and productivity loss associated with enterprise information security technologies. J. Info. Sec. Appli. 49:102385 4. Loft P, He Y, Yevseyeva I, Wagner I (2022) CAESAR8: An agile enterprise architecture approach to managing information security risks. Comput Secur 122:102877 5. Antunes M, Maximiano M, Gomes R (2022) A customizable web platform to manage standards compliance of information security and cybersecurity auditing. Procedia Computer Science 196:36–43

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6. Sheth A, Kusiak A (2022) Resiliency of smart manufacturing enterprises via information integration. J Ind Inf Integr 28:100370 7. Brunner M, Sauerwein C, Felderer M, Breu R (2020) Risk management practices in information security: Exploring the status quo in the DACH region. Comput Secur 92:101776 8. Chrome developers: Life cycle of requests, https://developer.chrome.com/extensions/webReq uest, last accessed 03 April 2023 9. Tproger: Server or client rendering on the web: Which is better to use in your project and why, https://tproger.ru/translations/rendering-on-the-web/, 04 April 2023 10. Hubr: Disclosure of 5 million links in private Telegram chats, https://habr.com/ru/post/347 910/ last accessed 27 March 2023

Formation and Implementation of the Company’s Investment Development Strategy A. V. Zastupov(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. The selection and development of the company’s investment strategy is investigated in the contribution. The investment policy is aimed at improving the financial stability of the organization in difficult modern market conditions, and also contributes to the further investment development of the enterprise. The principles of the formation and development of an investment development strategy, which are based on a systematic approach, are considered in this work. Factors influencing the formation and implementation of the investment policy of the enterprise were considered. Real investment strategies are described: limited growth strategy, accelerated growth strategy, inertial growth strategy, combined company strategy. The algorithm for developing an investment strategy and conditions for investment activities in order to form priority areas of investment activities of enterprises and a strategy for increasing the investment attractiveness of a business has been proposed. The results of this study will make it possible to find correct and effective solutions in improving the management of investment activities of enterprises. Keywords: Factor · Investment Attractiveness · Investment Policy · Organization · Strategy

1 Introduction The need for a comprehensive analysis and development of theoretical aspects and practical approaches in matters of improving the efficiency of investment management of the enterprise determines the relevance of this study. Problems devoted to improving the efficiency of investment management of the enterprise were considered in many works [1–8]. Insufficient knowledge of the study, analysis and assessment of the management of the investment activities of the organization requires further research. The feasibility of developing a research topic is justified by the need to more effectively solve the problems of implementing tools for improving the investment policy of enterprises. The following research objectives were defined: – analyze various and their impact on the formation and implementation of the investment policy of enterprises; © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 235–240, 2023. https://doi.org/10.1007/978-3-031-38122-5_32

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– consider some development aspects of the investment development strategy based on a systematic approach; – determine conditions for investment activities and build an algorithm for the formation of investment policy in order to form priority areas of investment activities of industrial enterprises and increase the investment attractiveness of the business environment. The theoretical significance of the work lies in the fact that the achieved scientific results of the study constructively and systematically complement the existing approach to the problems of improving investment policy and increasing the investment attractiveness of enterprises (organizations). The practical significance of the study determines the possibilities of using the results of the study by state administrative structures and business in order to improve the economic and strategic development of the production, economic and investment activities of enterprises and increase the investment attractiveness of the business environment.

2 Methodology In this study, methods of analysis, systemic approach, logical and graphical methods of research were applied. The method of meaningful economic interpretation of the studied processes from the economic practice of improving the activities of enterprises was used. The use of the above methods for research purposes made it possible to determine the possibilities of sustainable development of organizations through mechanisms for the formation of an effective investment policy.

3 Results The organization’s investment activities include the processes of justifying and implementing the best options for investing cash resources, which are aimed at increasing the economic potential of the company. Constant investments and a properly developed investment policy of the organization are necessary for the development of the economy in modern times. In essence, the investment policy represents a set of goals and objectives of the organization set for a specific period of time. They help to determine the most optimal option for investing cash resources, in accordance with the financial policy of the enterprise. Such a policy is aimed at increasing the financial stability of the organization even in difficult modern market conditions, and also contributes to the further investment development of the enterprise. Investment activities are of the greatest importance in the functioning of the company, regardless of the legal form, size and peculiarities of organizations. At the present stage, there is a need to create an investment policy of the organization, which in turn will determine its effective functioning in the future [3]. Often, the goals of investment activities determine the most important role in the development of the company’s general development policy. It is assumed to take into account a set of factors that undoubtedly affect the investment activities of the organization, in addition to the goals of creating an investment policy. It should also be borne in mind that the factors affecting investment activities will vary.

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The following key factors are identified among the group of factors that influence the formation and, as a result, implementation of the investment policy of the enterprise: financial indicators of economic activity; expected economic and social efficiency of investment projects; the state of economic instruments, such as insurance services, which are aimed at reducing risks in the implementation of investment projects. External and internal factors influence the structure, volume of investments and investment policy of the organization as a whole. Internal factors are associated with microeconomic conditions, and external factors are associated with macroeconomics in general [2]. Production enterprises did not make investment investments for a long time in Russia. Investment activities require primarily investments of the organization’s own resources. The organization’s own resources are not always sufficient. In this regard, there was a low level of investment activity in the country. Further, it should be noted that the tax policy of the state has a significant impact on the investment policy of organizations. Tax policy is aimed at providing benefits, the formation of a more flexible depreciation policy and other development vectors designed for the long term. In addition, legal aspects in the field of business management, subsidies and benefits, the credit policy of the state, the level of infrastructure development of a certain area also affect the investment policy of the company [4]. The size of the organization determines the scale of the introduction of new technologies. As a rule, large organizations have more significant capital than medium or small enterprises. Powerful capital opens up great opportunities for industrial and social development for the organization, as a result of which the competitiveness of the enterprise increases [7]. At the same time, there are some negative factors, they also affect the formation of the investment policy of the organization. These factors include: – a relatively high level of investment risks in the sphere of real assets, especially investments in production funds of enterprises that do not pay off the income received; – lack of promising projects and experienced specialists in the field of effective use of investments; – lack of development of information infrastructure affecting investment activities of organizations. Enterprises are forced to raise borrowed funds to implement investment policies due to a lack of financial resources. Marketing factors are among the financial and economic factors [1]. These factors are aimed at expanding the provision of various services by using the developed advertising policy. This contributes to an increase in the financial and economic performance of organizations. Improving efficiency in the organization’s pricing management is one of the most important factors affecting the investment policy of the enterprise. This factor is directly related to the above factor. This explains that the marketing service should study in detail the various market segments where companies’ financial and economic activities are carried out. Improving the quality of goods and services is a priority in determining the competitiveness of the enterprise [5]. Improving the quality of manufactured goods and services,

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as well as compliance with international quality standards open up great opportunities for organizations to enter international markets. Social factors affecting the investment policy of the enterprise appear during calculations and subsequent compilation of the rating of investment attractiveness of companies. These factors contribute to the improvement of the values of the following financial and economic indicators: – increase in the results of organizations due to the use of effective models; – use of progressive forms of employee remuneration; – efficiency of methods of motivation and compensation payments. Information factors play an important role in the management of the organization as a whole [9]. Each investment strategy begins with the definition of the purpose of the organization’s activities. The company has many goals and sub-goals that determine its development strategies. Strengthening its competitive position in the market and, of course, maintaining its status are unchanged among the variety of existing goals of the enterprise [8–10]. In particular, the development of the investment strategy of the enterprise should be aimed at choosing the most optimal option for achieving the goals of the organization. However, it should be noted that the strategy in its structure is mobile, constantly changing in nature due to periodic changes in the external environment of the enterprise. Therefore, the organization must take into account several possible ways of investment development at once. The principles of the investment development strategy, which are based on a systematic approach, are distinguished at the current stage of business development. Here, the elements of strategic management form the basis of these principles. Strategic management of the company, in its essence, is characterized by the foresight of external changes, as well as the reaction of the company’s management system to these changes [11]. The principles of developing an investment development strategy are associated with a new management paradigm. The paradigm provides for a combination of enterprise management with external factors, in terms of maximum use of resources. Changes in the market and the needs of buyers, the impact of competitors, as well as the impact of the state of scientific and technological progress on the areas of financial and economic activities of the organization are among external factors.

4 Discussion The management approach has changed substantially with the introduction of a new resource such as information. Information technologies have long been introduced into the production sector, and enterprises are adapting faster to rapidly changing environmental conditions every year [6]. Most often, the company’s investment strategy is associated with innovative components, which indicates the organization’s openness to changes in the external environment. The organization’s investment activities may focus on investment activity in the real sector of the economy or the financial sector. As a rule, the company focuses on investments in the real sector of the economy (fixed assets, equipment, property, real

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estate), since real investments can develop the material and technical bases of enterprises and the competitiveness of companies in the market as a whole. The constant lack of resources leads to its own limitations in the development of the company [12]. The development of the company’s investment strategy involves the following stages (Fig. 1). STAGES OF INVESTMENT STRATEGY DEVELOPMENT Goal-setting

Goal definition

Environmental assessment

Development of the investment policy of the organization

Organization of investment activities of the enterprise

Assessment of investment decisions made

Fig. 1. Development of the company’s investment strategy (Source: author).

Each development stage of the investment strategy should be carried out in strict chronological order within one time period. The implementation of the company’s investment strategy should be carried out by individual divisions in which employees have sufficient professional experience. Therefore, the investment development strategy of any company in modern market conditions should be developed in a clear chronological order and should take into account external and internal environmental factors. Current problems and issues of formation of investment policy and implementation of investment strategy of enterprises development are covered in this study. The results of the study will make it possible to use the most effective options in solving practical problems in this area.

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5 Conclusion The set goals were achieved and the formulated goals were solved as a result of the study. The problems of formation and management of investment activities of enterprises in modern development conditions have been studied. The algorithm for developing the company’s investment strategy as a tool for improving the efficiency of enterprise development management is proposed. The scientific results obtained during the study fundamentally complement the existing approach to solving the above problems and taking effective measures to regulate these issues.

References 1. Ekpo N, Etukafia N, Udofot P (2017) Finance manager and the finance function in business sustainability. Int J Bus Mark Manage 2(1):31–38 2. Ghezzi A, Cavallo A (2020) Agile business model innovation in digital entrepreneurship: lean startup approaches. J Bus Res 110:519–537 3. Kasych A, Suler P, Rowland Z (2020) Corporate environmental responsibility through the prism of strategic management. Sustainability 12(22):9589 4. Kodama M (2017) Developing strategic innovation in large corporations – the dynamic capability view of the firm. Knowl Process Manag 24(4):221–246 5. Linder NV (2021) Exploring innovation modes of Russian industrial companies. Strateg Decisions Risk Manage 11(3):272–285 6. Mancini L, Paz MJ (2018) Oil sector and technological development: effects of the mandatory research and development (R&D) investment clause on oil companies in Brazil. Resour Policy 58:131–143 7. Ortt R, Stolwijk C, Punter M (2020) Implementing Industry 4.0: Assessing the current state. J Manuf Technol Manage 31(5):825–836 8. Purwadi P, Aprianti DI, Hakim YP, Darma DC (2019) Investment development strategy management in Mahakam Ulu Regency, Indonesia. J Poverty Investment Dev 51:66–75 9. Veselovsky MY, Izmailova MA, Yunusov LA, Yunusov IA (2019) Quality of digital transformation management on the way of formation of innovative economy of Russia. Calitatea 20(169):66–71 10. Zastupov AV, Tatarskikh BY, Poluyanov VB, Murtazova HM (2016) Petrochemical cluster as the engine of the region’s economic development. Int J Econ Perspect 10(3):83–93 11. Zastupov AV (2019) Investment development of enterprises of industrial clusters. In: Ashmarina S, Vochozka M (eds.) Sustainable Growth and Development of Economic Systems. Contributions to Economics, pp. 349–358. Springer, Cham 12. Zastupov AV (2020) Innovation Activities of Enterprises of the Industrial Sector in the Conditions of Economy Digitalization. In: Ashmarina S, Mesquita A, Vochozka M (eds) Digital Transformation of the Economy: Challenges, Trends and New Opportunities, vol 908. AISC. Springer, Cham, pp 559–569. https://doi.org/10.1007/978-3-030-11367-4_55

Organization of the Venture Financing System at the Regional Level S. V. Sharokhina1(B)

, O. V. Karsuntseva2

, and E. S. Vasetskaya2

1 Syzran Branch of Samara State University of Economics, Syzran, Russia

[email protected] 2 Syzran Branch of Samara State Technical University, Syzran, Russia

Abstract. The contribution investigates reasons for creating a venture financing mechanism. The authors describe a special infrastructure of the venture financing system and organizational forms of venture capital. The authors point out that the regional venture segment operates within the framework of the regional innovation system. Further, three types of regional management models for the development of the venture financing system are distinguished: an active intervention model, a decentralized (market) model, and a mixed model. The authors compare these models highlighting their advantages and disadvantages. In relation to the results of the comparative analysis of their characteristics, the authors propose specific measures for the development of the innovation sector at the regional level highlighting the priority ones, for example, increasing the innovative activity and initiative of business entities (through government orders, benefits, subsidies, technical support, etc.). The authors also propose to divide the system of organization and management of the development of the venture financing system at the regional level into two components: a subsystem of organization and management, and a subsystem of control and management. As a result, a mechanism for functioning of the venture financing system within the regional innovation system was developed and proposed. The implementation of this mechanism will contribute to the fact that work on improving the efficiency of the venture financing system will run continuously. Keywords: Innovation System · Investor · Region · Regional Region’s Potential · Venture Financing · Venture Financing System

1 Introduction The main condition for the implementation of innovative activity is its financial support due to the ultra-high level of risk and the uncertainty of the final results. Therefore, the participation of the traditional capital market in the financing of innovative projects is difficult. This situation has led to the creation of a venture capital facility (without collateral, market entry guarantees, timing of market entry, profit guarantees or loan interest) which ensures the reallocation of financial resources in favor of the innovation sector. Venture capital is a source of financing for emerging or expanding companies that carry out activities to introduce innovative developments aimed at the emergence © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 241–247, 2023. https://doi.org/10.1007/978-3-031-38122-5_33

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of a potential opportunity to obtain excess profits in conditions of high economic risk. In exchange for these financial resources, the investor (venture institution, individual venture capitalist) receives a share of a company being created or the company being reorganized (entrepreneurial income is replaced by statutory income) [1].

2 Methodology The venture financing system (VFS), as an independent sector of the economy, should be considered at the level of the regions of a country. That allows us to study and improve its organization and regulation system in more detail. At the same time, the national VFS logically includes a set of regional subsystems that function as systems at their level. The purpose of this study is to propose a mechanism for functioning of the VFS within the regional innovation system (RIS). To achieve this goal, the following tasks were solved: – to determine components of the regional innovation system; – to consider types of models of regional management of VFS development; – to characterize advantages and disadvantages of regional management models related to the development of the VFS; – to highlight among the specific measures for the development of the innovation sector and VFS at the regional level the priority ones; – to structure the system of organization and management of VFS development at the regional level into constituent subsystems; – to present a model of the mechanism for the functioning of the VFS within the RIS. During the study, a logical method of scientific reproduction of the development of a complex object (system) by means of theoretical analysis was used. The method of induction and deduction was necessary in formulating the basic concepts. Methods of analysis and synthesis were involved, in particular, in the study of the components of RIS and the characteristics of the advantages and disadvantages of models of regional management related to the development of the VFS. When developing the mechanism for the functioning of the VFS within the RIS, the authors applied modeling.

3 Literature Review The significance of the development and effectiveness of VFS for the intensification of the innovation process is widely considered in the scientific literature. S.S. Matveevskii and A.O. Fedorov [2] study a structure of the venture capital market, explore the role of each of its components. The researchers emphasize the objective nature of the need for formal structuring of the venture capital industry and note that, in addition to the formal and informal segments of the venture capital market (VCM), it includes various associations, consultants, state regulatory bodies, organizations of small innovative entrepreneurs. A.M. Kazakova writes that an important component of the venture industry in countries with a developed VFS is a special infrastructure: investment companies, insurance companies, audit and accounting firms, stock, scientific, and technical exchanges, engineering and consulting companies, innovative business centers, recruitment agencies,

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etc. [3]. S. Pantik-Dragisic and J. Söderlund directly say that the technical and engineering consulting industry has become a major player in the organization of the innovative work [4]. Theorists identify forms of venture capital, such as: intra-corporate venture capital, «external» (open) and «independent» (closed) venture funds, small business investment companies [5]. M. Skare, B. Gavurova, and V. Polishchuk developed a comprehensive decision support model for financing start-up projects by venture funds on a crowdfunding platform [6]. T. Wang argues that entrepreneurial companies supported by private corporate venture capital firms are more innovative than those supported by public firms [7]. At the same time, S. Oh, P. Jang, and G. Kwak recommend that those who seek to develop a state-run venture industry realize the importance of monitoring to improve various performance indicators, such as corporate growth, job creation and innovation potential [8]. The composition of the VFS has been studied quite extensively, but the issues of its organization require deepening of theoretical provisions.

4 Results The regional venture segment operates within the framework of the regional innovation system, which can be considered as: 1) a set of interrelated structures that interact with each other in the development, dissemination and use of new knowledge and innovations within the region of the country; 2) a complex of institutions of a legal and socio-economic nature, having a regional territorial and structural coverage, which is described by local characteristics in the innovation sphere; 3) a set of institutional and socio-economic mechanisms that ensure the flow of the innovation process at the level of the country’s region. At the regional level, opportunities arise for the optimal formation of socio-economic and institutional-legal conditions (environment) for the development of VFS. It is advisable to consider three types of regional management models for the development of the VFS: 1) a model of active intervention – the role of regional authorities is constantly growing in all areas (financing, innovation, organization, management, etc.); 2) decentralized (market) model – the role of regional authorities is reduced to coordinating the functioning of the regional venture capital market (VCM), to preventing venture speculation, etc.; 3) mixed model – a multivariant combination of features of previous models is assumed. The choice of a specific management model for VFS and VCM depends on the specifics of the national model of the state intervention in the functioning of the economy, the positions of regional authorities regarding the object of regulation, as well as the conjuncture of the region’s innovation sector. The advantages and disadvantages of the proposed models are presented in Table 1.

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Table 1. Advantages and disadvantages of regional management models for the VFS development. Models

Advantages

Disadvantages

Active Intervention Model

Stability of functioning of VFS and VCM; their significant settlement; less speculation; acceleration of the process of formation and transformation of the VFS; close relationship with the state innovation sector, etc

Bureaucratization; underdevelopment of market mechanisms for regulating the VFS; reduced flexibility of VFS and VCM; non-market principles of construction and transformation of VFS; increase in government spending, etc

Decentralized model Market principles of VFS structure; significant development of market mechanisms for the regulation of VFS; closer relationship with the private innovation sector; increasing the flexibility of VCM and VFS; reduction of government spending on the development of VFS, etc

Underdevelopment of the state management system of the VFS; weak interaction with the state innovation sector; the possibility of speculation and a slowdown in the development of VFS; instability of the functioning of VFS and VCM, etc

Mixed models

Significant difficulties in implementing the VFS management model; the possibility of conflict between state and market institutions of regulation; complexity of integration in the national regulatory system, etc

The possibility of better adaptation of the state management system of the VFS to various conditions; increasing its flexibility; saving resources; complementarity of state and market mechanisms of regulation, etc

Source: authors.

Among the specific measures for the development of the innovation sector and the VFS at the regional level, the following priority ones should be highlighted: 1) increasing innovative activity and initiative of the business sector (through government orders, benefits, subsidies, technical support, etc.); 2) formation of an integral effective system of administrative, legal, financial and economic mechanisms for the development of VFS and the innovation sector of the region; 3) increasing public funding of the innovation process (direct and indirect) and venture capital funds; 4) increasing the efficiency and increasing the number of innovation infrastructure institutions, deepening their integration with VCM, developing the regional market for innovative products; 5) improvement of financial mechanisms for venture capital, legal mechanisms for the protection of investments and intellectual property rights;

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6) increasing the susceptibility of the economy to innovations, and the innovation sector to the venture capital (through administrative regulation, technical support, establishing direct contacts through special events, etc.); 7) formation and development of a competitive environment and a system of cooperation (specialization) in the innovation sector and the VFC (increasing the profitability of innovation and venture financing, etc.); 8) use of the mechanism of special (free) economic zones (SEZ); 9) improvement of statistics of venture financing. Diversification of sources of venture capital formation funds can be achieved through: 1) the application of additional payments from subjects of certain business areas, the market of which is growing and largely prone to speculative trends (for example, the entertainment industry); 2) development of interaction with foreign venture and investment structures; 3) use of the Eurobond mechanism in conjunction with the implementation of the relevant state guarantees; 4) introduction of the rate of deductions to the venture capital funds from the privatization of enterprises in the region; 5) formation of international clusters, consortiums, centers, mandatory elements of which would be venture structures, as well as strategic alliances in the field of venture financing; 6) development of cooperation with the private banking sector. At the level of the country’s regions, the VFS management apparatus should be formed, which would integrate regional authorities, the regional tax administration, the regional branch of the national bank, and the innovation infrastructure management bodies. It is expedient to divide the system of organization and management of VFS development at the regional level into two components: 1) a subsystem of organization and management, which includes research institutions of various sectors of science; higher educational institutions; institutions of the private financial-credit and banking sectors; institutions of investment and innovation infrastructure; training structures; information center, system of communication of participants; system for monitoring the innovation process and venture; territorial agglomeration of innovative structures (clusters, innovative networks); venture insurance organizations; risk management system (RMS); 2) a subsystem of control and management, which includes the administrations of cities and districts of a region; regional branch of the Central Bank; a regional fund for scientific and technical development; regional branch of the state innovation fund; regional tax administration; research institutions; stock exchanges and institutions coordinating securities transactions; committees, associations and various foundations operating in the innovation or intermediate sectors. For the VFS functioning, it is necessary to ensure the creation of a systematic database of fluctuations in the securities market, financial resources, financial flows and the situation in the field of invention, rationalization and development of innovative products, which will stimulate and coordinate venture investments. The transformation of the

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region’s economy and RMS should be aimed at developing and supporting innovative entrepreneurship, creating a competitive environment (in the field of venture financing, invention and innovation), forming and regulating the primary and secondary securities market, creating a highly integrated environment for institutional and individual investors, transferring untapped innovation from the public sector to the private sector. The mechanism of functioning of the VFS within the RIS is shown in Fig. 1.

System of the VFS regulation at the regional level

The regional VCM

Institutional investors Individual investors

System for searching and selecting innovative projects and ideas

Structures of the academic science sector Structures of the factory science sector

Innovation infrastructure

Technoparks Business incubators of technology Innovation centers

Higher education institutions

Companies are born Companies develop Companies restructure Companies are resurgent

Inventors and innovators Knowledge-intensive enterprises (large, medium and small) and business structures

Strategic investors (corporations)

Investment companies

Stock market (portfolio investors)

IPO (primary or secondary issue)

Fig. 1. The mechanism of the VFS functioning within the RIS (Source: authors).

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5 Conclusion Thus, the existence of an effective SVF requires constant improvement of its organization. At the regional level, such an organization can be carried out better. Within the region, an integral PIC should be formed, which includes RVC. The control and management of the formation and development of the SVF requires the strengthening of state influence in all forms. Improving the organization of SVF requires deepening and expanding the integration of RVC with the financial sector, innovation infrastructure, as well as venture structures among themselves.

References 1. Astafyev VA, Suspitsyna GG (2020) Venture business: Structure and features. University Sience 1(9):82–89 2. Matveevskii SS, Fedorov AO (2022) Current state and problems of venture capital in Russia. Financial Markets and Banks 4:78–83 3. Kazakova AM (2018) Venture investment of innovative projects: Current trends in its development on the example of Russian Federation and the United States. Eurasian Sci J 5(10):02ECVN518 4. Pantic-Dragisic S, Söderlund J (2020) Swift transition and knowledge cycling: Key capabilities for successful technical and engineering consulting? Res Policy 49(1):103880 5. Sharokhina SV (2018) The organizational form of functioning of venture capital. The Eurasian Sci J 3(10):01ECVN318 6. Skare M, Gavurova B, Polishchuk V (2023) A decision-making support model for financing start-up projects by venture capital funds on a crowdfunding platform. J Bus Res 158:113719 7. Wang T (2023) The ownership structure of corporate venture capital financing and innovation. Technovation 123:102736 8. Oh S, Jang P, Kwak G (2022) Enhancing the efficiency of governmental intervention in the venture capital market: The monitoring effect. Econ Anal Policy 75:450–463

Informational Aspects of Accounting in Human Capital Management O. Kogut(B)

, B. Sultanova , G. Nurgaliyeva , and A. Arystambayeva

Al-Farabi Kazakh National University, Almaty, Kazakhstan [email protected]

Abstract. One of the newest aspirations of international management, which is gaining notable fame in entrepreneurship, is human capital management. The transformation from human resource management to human capital management is determined by the formation of the newest concept of a post-industrial society: the role of information and the service sector is growing in the economy, the essence and nature of capital is also changing, there is an automation of production, widespread computerization, and the accumulated human capital and information become the main competitive advantage of organizations. Human capital is becoming a new form of value which serves as a reason for reassessing the role of a person in an organization and is the basis for the formation of a modern theory of personnel management, in which the attitude towards an employee will be considered as a carrier of potential, and not as to the resource owner. The qualities of an employee as a performer are superseded by his talent and abilities. Modern principles of human capital management are a key to the strategic competitive superiority of organizations. Issues related to the study of issues of formation and use of accounting and management accounting data in the system of accounting and human capital management are always of scientific interest to researchers. The modern concept of human capital explores the management of human capital as a directed impact on the formation and development of the functional elements of human capital for the purpose of future increase in the profitability of the organization. Keywords: Human Capital · Information Systems · Management Accounting · Management Information

1 Introduction Organizations that are aware of the importance of the human factor and the skills of employees, consider them as capital, from a practical point of view of the potential that provides economic value, and according to statistics, these organizations are the most successful and promising in the market. The main point is the presentation of the benefits, the benefits that employees bring to the organization. In addition to the fact that thanks to them the process of work takes place at all, an excellent team of employees works to increase the value of the organization. Customer friendliness, brand, corporate climate, innovative ways – all these parameters, as we know, are an integral part of the process of © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 248–254, 2023. https://doi.org/10.1007/978-3-031-38122-5_34

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increasing the value of the organization and will be obtained by no other direction than the efforts of employees. The concept of human capital management improves the skills of an individual employee, reveals his strengths and weaknesses in order to help the employee make a significant contribution to the success of the organization [1]. Therefore, we will study the accounting and management of human capital as a oriented managerial influence on the subject of management (employee), with the aim of becoming the object of management: professional abilities, knowledge, motivation, competencies, socio-psychological relations, physical skills and other fundamental elements of human capital [2]. But the manager will not be able to know the state of management accounting, the formation of internal operational accounting, conduct managerial, economic control and analysis of various objects in the process of organizing their activities, if the accountantanalyst of production accounting does not prepare exactly the necessary information [3]. It is management accounting, based on the purpose of management that will provide the requirements for the preparation of information, keeping operational records. Basically, to ensure management, it is necessary to create such repositories that will facilitate access to information of the organization [4]. Management and information are inextricably linked concepts. Any management process can be represented as an informational interaction of objects, leading to a purposeful change in the functioning of one of them. The interactivity of this interaction (feedback) ensures the adoption of managerial decisions and forms a closed control loop. Accounting management accounting is the link between the management of the organization and the accounting process. The use of accounting information in management makes it possible to solve the following tasks: – isolation of information used to argue various types of decisions and tasks at different levels of production management; – construction of accounting information in accordance with the approved job descriptions that regulate the work of the administration apparatus; – optimization of the mobility of information flows of management services vertically and horizontally [5]. Currently, human capital data is not reflected in the financial statements. The lack of these data negatively affects the functioning of the organization, namely, it can cause such problems: incomparability of reporting information, incompleteness of financial information, the problem of comparability of the cost of capital of different organizations, less investment attractiveness. The role of timely provision of information is important in making managerial decisions. Therefore, the accounting and management of human capital cannot be carried out productively without enough timely, operational, reliable and reliable information. The basis of the management process is information, and to what extent it is perfect, the quality of organization management largely depends. In our opinion, information on the degree of activity of the organization can be accounting, or operational on the

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time of receipt. The role of primary operational information in the management accounting system is great. The quality, reliability and efficiency of the final information, the effectiveness of operational control, and the regulation of production activities and the effectiveness of management decisions made by management depend on the level of organization of its collection and processing [4].

2 Methodology Our interpretation of human capital is since there are main elements that do not fit into the framework of the generally accepted concept of remuneration of employees, the organizational structure of the organization, technological processes, decision-making, knowledge and information. Understanding the role of each of these elements in a single successful organization strategy allows you to create an optimal system of employee motivation, including a wage model. It also speaks of the most effective selection, training and development, motivation of capable employees. Such a systematic approach, combined with a carefully designed performance-based payment, can significantly affect both the financial performance of the activity and the quality of decisions made in the management of human capital. Any of the implemented management work requires quite characteristic, comprehensive information. Accordingly, the information that is necessary, for example, for longterm planning and the implementation of operational management functions, should differ markedly in the form of provision, structure, volume, terms of provision, etc. This process covers partial procedures: collection, transformation, processing, transfer, application, storage and disposal of information [6]. Collection of information. To do this, we study the practiced methods of collecting information. Transfer of information. The basic principle of the precise organization of the transmission of information is planning its passage along the shortest path with the least amount of time. Information modification. Counts on a synthetic-analytical consideration of its essence and the development of a new type of information (secondary). Data processing. This is such a community of all kinds of actions that are performed on the information that is available and lead to a certain transformation of its nature or mode of presentation. Data storage. Focuses on the transmission of information in time, which is combined with the guarantee of permanent positions of the material data carrier. Use of information. In accordance with the purpose of the impact means its consumption for solving managerial problems. Any reliable information should be useful for use in the management process, considering its type, degree of processing, methods of collection, transmission and material carrier. Destruction of information. In cases of obsolescence of information or after repeated use, it is subject to elimination. An information system is a combination of flows of direct and reverse information communication (internal and external) of a socio-economic object, methods, means,

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qualified personnel who participate in various procedures at the stages of information processing, as well as the development and implementation of management decisions. Also, the information system is collected, formalized and interacts in the manner that is determined by the composition and methods of management activities that are used in this organization, implements the ideas and tasks that it faces. For the development of human capital as the main lever and factor in strengthening the economy, it is very important to have its sustainable development. At the same time, information does not lose its usefulness, but, on the contrary, its usefulness increases and reflects new knowledge that is repeatedly used to analyze the production and economic situation and make fair management decisions.

3 Conception Framework From a philosophical point of view, information is understood as a natural reality that carries the distinctive features of objects and natural phenomena that manifest themselves in time and space. In the works of various scientists, information is considered as an idea, a message, a form of reflection, a category of difference, new knowledge, a function of a means of dealing with the external environment, a degree of diversity, an action plan, a measure of limitation. The information that generates the difference between objects in space and time (objects and phenomena) of nature is formed by means of the energy potentials of these objects, fixed by memory. Obviously, this determines the distinctive ability to change (not change) in time and space, and, accordingly, the distinctive properties of objects. Without information, material objects (phenomena and objects of nature) cannot be created, since information is intangible. Similarly, without material reality, information cannot be formed, since it is formed on material memory carriers with the help of property energy resources. From the point of view of economic theory, «information» is interpreted as a factor of production that creates conditions for the transformation of the reproduction process by using information about economic development, as well as the processes taking place in it, in order to satisfy various needs. From a socio-economic point of view, the essence of information is found in the implementation of characteristic economic relations that develop between organizations at the stage of transforming the material concept of production processes. In this case, information, like a complex, organizes the same conditions for economic growth, because on the whole it satisfies the interests of producers and the people. Questions that relate to the study of the problems of creating and applying credentials in the structure of human capital management have constantly raised a great scientific interest of scientists. Many foreign scientists are engaged in the study of problems devoted to the research of human resource management. In the current circumstances, human capital is becoming an indicator of failure or success in the functioning of an organization. In the second half of the 20th century, efforts were made to apply the theory of human capital at the corporate level. For instance, E.G. Flamholtz recommended the HRA (human resource accounting) doctrine, and its emergence was caused by an increased interest in personnel as a key tool in a modern

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organization that has significant hidden potential [7]. The researcher outlined 3 main tasks of human resource accounting: – encouraging management to consider investment in the organization’s employees not as a cost that needs to be reduced, but rather as an investment in assets, the use of which needs to be optimized; – mandatory provision of the data required for the approval of decisions in the field of employee management; – equip managers with methods for digitally assessing the cost of human resources required to make certain decisions in the field of employee management [7]. The activation of the value of human capital as a guiding factor in the development of the economy created the prerequisites for the emergence of the concept of sustainable development and formed strategies for managing human capital as one of the most important development factors. The analysis of endogenous models of economic growth made it possible to reveal the system of sustainable economic development of industrialized countries, which consists in the coordinated action of technological balance between the main factors of production (human and physical capital) and the positive impact of external effects that are associated with the activities of the knowledge economy and the growth of human capital. Therefore, a significant role is played by the construction of highly effective ways of managing human capital, as well as the calculation of the optimal costs associated with education, labor protection, healthcare, etc. [8]. In the framework of this research, the authors analyzed a number of works or scientists from various countries related to different aspects of HR management in contemporary conditions of market development [9–13].

4 Results The rate of transition to an innovative economy depends on the level of development of human capital and correlates with the quality of administration of managerial decisions. Meanwhile, this will require the necessary conditions – the presence of a specifically organized information system of the organization that provides information services to management bodies, implements information exchange with the external environment and between structural groups within the organization. Modern information technology is carried out in conditions that are designed by computer information systems, where, as a result of their preparation, predominantly expedient methods for solving management and accounting issues, as well as an information processing system in the form of a man-machine method, are combined. To create an effective system of informing about investments in the formation, use and recreation of the organization’s human resources, possibly through the expansion of the scope of use of the information system – the accounting system, which requires a rethinking of the value of accounting information in the general information support of users regarding investments in human capital [14]. 1. Measures for the organization of accounting, which contribute to the improvement of the analytical accounting information of users regarding the creation, application, reconstruction of the organization’s human resources, in order to approve decisions on

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the need for further investment in human capital, are to improve the use of such elements as: documentation; working chart of accounts; internal reporting. An approach to documenting and displaying in accounting business transactions regarding the formation, use and recreation of human resources is proposed, which will allow systematizing information to determine the size of investments for each employee, reliably determine the degree of return on such investments, and increase analytical information. 2. Considering the specificity of business transactions carried out by the organization in relation to employees, the objects of accounting operations regarding the formation, use and recreation of the organization’s human resources are singled out. Using the management accounting system to solve the problem of information support of the enterprise, and in particular obtaining information regarding human capital, scientists propose to carry out accounting in an integrated system, under the conditions of a single accounting plan for financial and management accounting. The organization of cost accounting in relation to human capital by cost items, places of origin and responsibility centers allows providing managers with operational information, decentralizes cost management, controls their formation and efficiency at all levels of management, and ultimately contributes to a significant increase in business efficiency [15].

5 Conclusions As a result of the study of the fundamentals of the formation of human capital accounting, we found that the main feature of human potential is that it characterizes a certain possibility and exists regardless of the demands of society, while human capital should be focused on the demands and needs of society, since it must be in demand in the labor market. Today, human capital makes up the main share of the national wealth of the state and regions. An individual as the owner of socio-economic relations combines two key roles in his person: firstly, he is a social personality and a production-economic personality, and at the same time, secondly, he is personal in character, mental and physical abilities. In this regard, the establishment of the role and place of human capital in the system of economic categories of labor, the discovery of classification features and the designation of the structure of human capital is of practical importance. The strategy and system of human capital management accounting should develop at the same level with the organization, so as not to lose its effectiveness and not be unnecessary costs, as the market constantly makes new demands on the organization, and therefore on employees, as well as on their professional skills, knowledge, skills. And this should not cause any changes in the structure of the organization.

References 1. Noskova KA (2013) Methods of human capital management. Humanitarian Scientific Research 9. https://human.snauka.ru/2013/09/3857, last accessed 10 March 2023 2. Kogut O (2019) Information base of accounting and management of human capital. In: Mezentseva TM, Nazarova VL (eds) Problems of Providing Management of Accounting

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O. Kogut et al. Information: Collective monograph. Financial University under the Government of the Russian Federation and Almaty Academy of Economics and Statistics, Moscow, Almaty, pp 108–119 Tajgashinova KT, Erzhanov MS (2020) Management accounting. 3rd edn. AESA, Almaty Tajgashinova KT (2014) Management accounting development system: Logistics costs, their classification, logistics services. 1st edn. Economy, Almaty Nazarova VL (2021) Management accounting. Fortuna Polygraph, Almaty Information in the control system, https://works.doklad.ru/view/1QndEHMAwLQ.html, last accessed 10 March 2023 Flamholtz EG (2012) Human resource accounting: Advances in concepts, methods and applications. 3rd end. Springer Science & Business Media, New York Kogut OY, Janshanlo RE, Czerewacz-Filipowicz K (2020) Human Capital Accounting Issues in the Digital Economy. In: Ashmarina S, Mesquita A, Vochozka M (eds) Digital Transformation of the Economy: Challenges, Trends and New Opportunities, vol 908. AISC. Springer, Cham, pp 296–305. https://doi.org/10.1007/978-3-030-11367-4_29 Mantulenko VV, Zotova AS, Makhovikov AE (2021) Digital transformation of the labor market: Values and competences. In: Ashmarina SI, Mantulenko VV (eds.) Digital Economy and the New Labor Market: Jobs, Competences and Innovative HR Technologies. IPM 2020. Lecture Notes in Networks and Systems, vol. 161, pp. 321–328. Springer, Cham Ilyukhina LA, Bogatyreva IV, Gunko NN (2022) Development of digital corporate personnel training: Current trends and prospects. In: Ashmarina SI, Mantulenko VV (eds.) Digital Technologies in the New Socio-Economic Reality. ISCDTE 2021. Lecture Notes in Networks and Systems, vol. 304, pp. 821–832. Springer, Cham Mitrofanova A, Konovalova V, Mitrofanova E (2019) Opportunities, problems and limitations of digital transformation of HR management. In: Mantulenko V (ed) Global Challenges and Prospects of the Modern Economic Development, vol 57. European Proceedings of Social and Behavioural Sciences. Future Academy, London, pp 1717–1727 Kapitanov VA, Osipova OS, Chikileva LS (2021) Promising areas for developing HR managers’ competencies in the digital age. In: Horák J, Rowland Z, Šuleˇr P (eds.) Innovative Economic Symposium 2020 – Stable Development in Unstable World (IES2020), SHS Web of Conferences, vol. 91, 01016. EDP Sciences, Les Ulis Renu SN (2020) Creative accounting: An interaction of hr and accounting. J Indian Manage Strateg 25(1):19–27 Roos G, Pike S, Fernstrom L (2005) Managing intellectual capital in practice, 1st edn. Routledge, London Dzhioev AV (2021) Modern problems of assessing the intellectual capital of companies. Manage Acc 7:224–230

Consequences of Global Integration Processes Between Russia and the African Union Countries V. A. Noskov(B)

, V. V. Nekrasov , and D. V. Khilov

Samara State University of Economics, Samara, Russia [email protected]

Abstract. The contribution investigates the state of integration processes between Russia and the countries of the African Union in the system of modern world economic relations in order to create possible models for the development of Russian-African economic relations. An analysis is made of possible options for integration both at the level of individual countries and within the framework of promising sectors of the bilateral cooperation. The authors also make an assessment of the impact of the integration between Russia and Africa on the world economy. Recommendations are given for the Ministry of Industry of the Russian Federation, Russian exporters and importers. The authors consider characteristic features of modern world economic processes, results of the first Russia-Africa summit, as well as prospects for the integration of Russia and the countries of the African Union based on the ranking the states of the African Union in terms of their prospects for integration with Russia. Keywords: African Countries · Crisis · Economic Security · Economy · Integration · Integration Models · Prospects · Russia

1 Introduction Nowadays, an important direction in the Russian foreign policy is the restoration and strengthening of the sphere of influence on the African continent. It is necessary to note an unfavorable situation in general, which consists of military and economic disagreements between the countries of the African Union, often provoked by the EU countries in an attempt to redefine borders and spheres of influence. In this regard, Russia sets its key goals in relations with the African Union not only in trade and economic relations, but also in ensuring international, national and economic security. The revival of trade and economic relations between Russia and the countries of the African continent is still at an early stage. Certain difficulties are caused by the political instability in the countries of the African Union. According to K. Limonier and M. Laruelle, the influence of Russia on the African continent is anecdotic if we compare it with the influence of China, the United States, and former colonial powers, such as France [1]. The revival of these relations is often considered highly critically [2]. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 255–260, 2023. https://doi.org/10.1007/978-3-031-38122-5_35

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In the current conditions of the tense geopolitical situation between Russia and the countries of the «West», «sanctions warriors», the issue of the Russian integration in relations with the countries of the African Union is particularly acute and seems to be beneficial for both Russia and the African countries. According to the Agenda 2063, the African Union (AU) is currently strategically developing its integration within the framework of eight priority large associations [3, 4]. The study of the situation around the African continent, the analysis of the cooperation prospects in terms of the development of the African market revealed a huge potential [510]. Russia, for its part, can offer a fairly wide range of areas that would be of interest to representatives of the African business, from scientific, material and technical resources to the latest advanced technologies in various areas of the agro-industrial complex, healthcare, and the military-industrial complex. Cooperation with the countries of the African Union can become a serious incentive for further development and improvement of the Russia’s own achievements in the field of science and technology. A.A. Maslov and D.V. Suslov consider a number of issues related to the Russia’s course to increase its political and economic presence in Africa, note the strengthening of Africa’s position in the international relations, the development of global integration processes on the continent [11]. The elaboration level of this scientific issue consists of a not so long ago formed statement of it. Based on this, it follows that in a fairly short period of time, a systematic approach to the development of concepts for the economic development of the countries of the African Union in the medium term has not yet been formulated with an analysis of possible options for integration with the Russian Federation both at the level of individual countries and at the level of individual industries, and the impact of this integration on the Russian and world economy has not been studied either.

2 Methodology The arguments of the authors are based on the methodological principles of the duality of the economic nature of economic entities. Methods of comparative, systemic and institutional analysis, economic and statistical methods are used. Economic security is not an independent problem, but a dependent part of the overall security of the existence and life of the state. On this basis, the analysis of the current state of the integration processes of Russia and the countries of the African Union in the system of modern world economic relations is carried out. The analysis is carried out in the context of maintaining and developing the economic security of Russia.

3 Results The level, tasks and specifics of modern world economic processes open up new opportunities for expanding the mutually beneficial Russian-African cooperation. At the same time, the potential for cooperation largely depends on the macroeconomic and political stability of each individual state of the continent, as well as on the intensity of bilateral cooperation with the Russian Federation in the international arena. These criteria can be expressed in quantitative terms and processed using cluster analysis, which will make

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it possible to identify a sectoral cut of the prospects for Russia’s economic integration with the countries of the African Union. Today, the leaders of the Russian Federation have chosen a geostrategic course for systematic strengthening of the multi-vector diverse cooperation with the African countries. At the present stage, a special role belongs to the practical implementation of relevant joint projects, the launch of which will largely determine both the effectiveness of the future Russian-African economic cooperation and the overall image of the Russian Federation on the continent as a reliable competent partner [4] (Table 1). Table 1. The Russian-African trade in 2018, mln USD. Country/Region

Export from Russia

Non-commodity exports from Russia

Import to Russia

General turnover

Africa

17148

15637

3252

20400

North Africa

13684

12765

1322

15006

Africa south of the Sahara

3464

2872

1930

5394

Egypt

7142,1

6600,1

526,7

7668,9

Algeria

4801,8

4669,1

10,5

4812,3

Morocco

929,1

359,2

547,9

1476,9

South Africa

285,7

269,7

783,9

1069,6

Tunisia

684,1

299,6

136,6

830,7

Nigeria

733,7

580,1

33,2

766,9

Sudan

509,0

502,0

1,1

510,1

Source: authors based on [12]

However, unfortunately, in the recent history, Russia has an extremely limited experience of cooperation between domestic enterprises and colleagues from Africa in the implementation of infrastructure transport projects. In this regard, for the Russian companies, relevant departments and organizations, the search and selection of the most promising African partner countries, as well as relevant projects, becomes a critical, large-scale task. In the modern model of the development, the African continent is characterized by a pronounced subjectivity in the international relations. The rapid development has changed its position. Since 2017, there has been a significant increase in the economy (3.6% in 2017, and 4.3% in 2018), GDP growth rates have exceeded 5% since 2020, and in a number of African countries, such as Tanzania, Ghana, Ethiopia, Burkina Faso, exceeded 7% per annum. The transitional processes of the formation of a new economic model of the world contributed to the rapid development of the African economy, and according to analysts’ forecasts, by 2050, the continent can surpass in terms of GDP the countries of the EU

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and the USA. The year 2016 can be considered as a starting point for the rapid economic growth, when commodity prices rose significantly. However, the main determining factor was the coming industrial revolution (NRP), in which the continent is a global source of unique commodities for the military-industrial complex and innovative technologies [13]. Another factor of the African development is qualitative changes in domestic markets: the share of services and industrial production is growing, legislation in the investment sector is being improved, and the political situation on the continent is stabilizing. The investment sector is perhaps one of the most promising areas, and not only Russia, but the countries of the Far and Middle East regions are trying to occupy this niche. Large investment projects in various sectors of the continent’s economy are driving the rapid economic growth. The consumption share in the domestic market also increased. Over the past decade, it has grown by 3.6% annually, and in 2021 this figure reached 4%. The development of integration associations, the attraction of new partners, technological resources, the activation of human capital and undeniable competitive advantages in the raw materials sector bring Africa to the position of an influential region in the world economic model capable of withstanding great challenges.

4 Discussion The modern economy of the African continent is directed towards the diversification of production and the balance of the budget in terms of production, industry, consumer, and geographical areas. In the economic development of the African states, two main directions can be distinguished: this is an increase in the growth rates of industries oriented more towards the domestic segment, and an increase in the role of the real sector of the economy. Experts from the Institute for African Studies of the Russian Academy of Sciences predict the transformation of the African continent into a center of global significance [6, 7]. The demography and demographic processes taking place on the continent can have a tremendous impact on its development and change in the structure of the entire world economy in the future. Today, Africa in this indicator is second only to China (population 1.4 billion people) and India (1.3 billion people). The total population of these two countries is 40% of the world’s population [12]. The processes of globalization have contributed to the fact that Africa is one of the main suppliers of cheap labor, the growth rate of the young working population is quite high and amounts to 2.5% per year. By 2030, the center of world demographic development may move to Africa. The size of the middle class of the population also increased markedly. This category imposes increased requirements to the range and quality of products, investment goods, and a new line of modern services is being formed at their request. The African continent today is a rapidly developing market for services, goods, production, innovative technologies, the investment sector, and high-tech industries. The industrial rise and modernization of production capacities have changed the position

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of Africa in the world economic space and attract the attention of not only the traditional USA, Germany, France, Great Britain, but also China, India, Japan, Turkey, Iran, Australia [12]. The competition for influential economic and political positions on the continent is intensifying. All these countries are well aware that by 2030 Africa will become the main source of growth in raw materials and labor resources, a vast export market. And with the help of it, they will provide themselves with strong positions and zones of influence on the world stage.

5 Conclusion An analysis of trends in the development of integration processes in Africa allowed the authors to formulate the following recommendations for integration models options for both the interested institutions of the countries of the African Union and the Russian Federation. 1. It is necessary to raise the level of the Russian cooperation with the AU by creating permanent partner associations. In 2020, the African Union interacts on a permanent basis with nine partner groups: with the League of Arab States (LAS), the European Union (EU), South America, the USA, China, Japan, India, Turkey, South Korea. 2. There is a need to balance exports geographically to the African countries. At present, Russia is actively cooperating with Egypt and Algeria, and the range of goods is mainly focused on these countries. At the same time, Russia has something to offer to the military-industrial complex of the countries of the continent. The export of other goods is provided by various methods of exchange trading through global trading, while there is practically no work with buyers directly from the Russian manufacturers. 3. It is recommended to form the logistics of regular air transportation between Russia and Africa. The absence of a major transport corridor seriously hinders the development of economic relations, especially with countries located south of the Sahara. 4. There is a need to study investment projects more carefully from the standpoint of harmonization with the development goals of the Russian economy and respect for the interests of partners in the implementation of large investment projects that would make a significant contribution to the development of the economies of the African states and the Russian Federation. The research made it possible to establish that the study of the economic consequences of the global processes of integration between Russia and the countries of the African Union, the development of its mechanisms will make it possible to more accurately predict the future transformation of the role of Africa in the world economy, as well as to identify new opportunities for expanding the Russian-African partnership in the development of the continental free trade zone. The authors put forward a hypothesis that the level, tasks and specifics of modern world economic processes open up new opportunities for expanding the mutually beneficial Russian-African cooperation. At the same time, the potential for cooperation

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largely depends on the macroeconomic and political stability of each individual state of the continent, as well as on the intensity of the bilateral cooperation with the Russian Federation in the international arena. These criteria can be expressed in quantitative terms and processed using cluster analysis, which will make it possible to identify a sectoral cut of the prospects for economic integration of Russia with the countries of the African Union and analyze the likely prospects for the development of trade between the countries. To do this, the authors analyzed the characteristic features of modern world economic integration processes in the context of a changing geopolitical and economic paradigm of the world development [14], substantiated the prerequisites for the intensification of the RussianAfrican economic integration, and established the dynamics and main factors for the development of the trade cooperation between Russia and the states of the African Union. A number of recommendations are proposed for the development of an optimal strategy for the economic cooperation with the countries of the African Union, as well as for the development of recommendations for the Ministry of Industry of the Russian Federation and Russian exporters and importers.

References 1. Limonier K, Laruelle M (2021) Russia’s African toolkit: digital influence and entrepreneurs of influence. Orbis 65(3):403–419 2. Kalika A (2019) Russia’s “Great Return” to Africa? Russie.Nei.Visions 114, Ifri, April 3. Abramova IO (2018) Africa in the modern model of the world order: a powerful player or an outsider? Outlines Glob Transform Pol Econ Law 11(5):6–21 4. Abramova I, Fituni L (2019) Russia’s new strategy in the African direction. World Econ Intl Relat 63(12):90–100 5. Declaration of the First Russia-Africa Summit. http://www.kremlin.ru/supplement/5453. Last accessed 1 Aug 2022 6. Aleshin K, Barinov A, Sugakov G (2021) Russia and Africa in modern world: new challenges and prospects for cooperation. Asia Africa Today 3:71–77 7. Barinov AK (2022) Development of transport infrastructure in Africa and the possibility of Russian-African cooperation. Ph.D. thesis, Institute for African Studies of the Russian Academy of Sciences, Moscow 8. Research Center “International Trade and Integration”(ITI). Russia – Africa: Long-term trade and economic partnership, https://roscongress.org/upload/medialibrary/7c1/russia_afr ica_final_report.pdf. Last accessed 10 May 2022 9. Kadochnikov PA (2020) Prospects for Russia’s participation in global and regional integration processes. Delo, Moscow 10. Bulatov AS (ed) (2019) Prospects for economic globalization, Monograph. Knorus, Moscow 11. Maslov AA, Suslov DV (2022) Return to Africa: how to make it a Russian priority. Russ Glob Aff 20(1):130148 12. Regions and Countries. Russian Export Center, https://www.exportcenter.ru/international_m arkets/world_map/, last accessed 2021/08/26 13. Effah Asamoah M, Paul Alagidede I, Adu F (2021) Financial development, portfolio investments and the real economy in Africa. Econ Syst 45(4):100872 14. Burdina AA, Bondarenko AV, Moskvicheva NV, Melik-Aslanova NO (2021) Management of complex economic security of enterprises: empirical test in Russia. Rev Amazon Investig 10(46):303–310

Market of Electronic Document Management Systems for Contemporary Business D. V. Kharitonova1(B)

and A. D. Kornilova2

1 Samara State University of Economics, Samara, Russia

[email protected]

2 Samara State Technical University, Samara, Russia

[email protected]

Abstract. The rapidly developing external environment determines a need to accelerate business processes within the company. The speed of response can become a determining factor in making managerial decisions. In connection with the formal nature of work processes, there is a need to ensure operational document management. In this case, the choice of an electronic document management system (hereinafter – EDMS) for implementation is of particular relevance. In this work, an analysis of the software products market was carried out, evaluation criteria were developed (maturity of the company, level of technical support, availability of documentation, the possibility of changes and the level of protection), and the compliance of the selected EDMS with the proposed criteria was given. The conclusion is made about the most optimal EDMS option from those currently on the market, as well as that when choosing an EDMS, each company should be guided by its own criteria that correspond to the specifics of their activities. Keywords: Criteria · Document Flow · Electronic Document Management System · Software Products · Technologies

1 Introduction Currently, the efficiency of obtaining information and conducting a work process is of great importance for doing business. The speed of response can become a determining factor in making managerial decisions. Due to the fact that work processes are mostly formal and must be documented, one of the key factors for successful business can be the speed of the organization’s workflow. The modern one is marked by the digital age. In this regard, various software products are gaining popularity in the IT market, designed to facilitate work processes in organizations. In the field of the document management, electronic document management systems have become such software products. They allow to significantly increase the speed of the workflow in the organization. At the same time, it is important to choose the most appropriate software product for implementation. Based on this, the research purpose is to study the EDMS market and consider the most optimal options for implementation.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 261–265, 2023. https://doi.org/10.1007/978-3-031-38122-5_36

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2 Methodology During the study, such research methods as analysis and synthesis, sampling, graphical interpretation, comparison and other general theoretical methods were used. The purpose of the study can be achieved by solving a number of tasks. First, an analysis of the EDMS market in the country was carried out. Systematization of the most perspective software products was carried out. Secondly, key criteria for evaluating the EDMS were selected. Thirdly, theoretical and statistical resources on the research topic were analyzed. All this enabled to achieve the research goals.

3 Results The primary task to be solved is the analysis of the EDMS market in Russia. It should be noted that only 7 companies occupy a large market share, and such EDMS as TerraLink xDE, EOS and TESSA have the highest rating [1]. For clarity, Fig. 1 shows the revenue of these companies.

Fig. 1. Distribution of revenues of the leading EDMS market (Source: author based on [1]).

The next step is the selection of criteria by which the selected EDMS will be analyzed. In the course of this study, the following criteria were proposed: 1. The maturity of the company. Long-term presence in the market can guarantee a great experience. It is possible to trace the development chronology. 2. The level of technical support. It is important to understand what kind of technical support the user can count on and whether they will have to pay extra for it. 3. The possibility to change the EDMS. It is important in relation to the availability of opportunities for development, diversification and expansion of the enterprise.

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4. The availability of administration documentation. This point is important from the point of view of the possibility of independent solution of technical problems. 5. The level of protection. This is one of the key components, since there are risks of leakage of internal documentation, which can lead to the collapse of the company. These criteria were chosen as the most significant ones for the evaluation in the analysis of the EDMS presented on the market. The results of the analysis are presented in Table 1. Table 1. Compliance of the leading EDMS with the evaluation criteria. Criteria

TerraLink xDE

EOSC

TESSA

The maturity of company

Present on the market since 2011 More than 1000 implementations

Present on the market since 1994 1.3 million active users, 7000 implementations

Present on the market since 2006 Over 40,000 active users

The level of technical support

Full client support, customization and adaptation

Four levels of service: Minimal, Basic, Standard, Personal

Two types: Warranty and Additional

The possibility to change

Integration into various ERP systems (more than 5) is possible

Users do not have the right to make changes to the structure of the database

Integration into various ERP-systems (more than 15) is possible

The availability of administration documentation

All information is available on the website Additional training is possible

All information is available on the website

All information is available on the website Additional training is possible

The level of protection

Comprehensive data protection from external and internal unauthorized access, use of the SSL protocol for encryption, advanced qualified electronic signature

Electronic signature, cryptographic protection of information

Electronic signature, cryptographic protection of information

Source: author based on [2–4]

Table 1 compares the EDMS selected for the analysis and the criteria for their evaluation. Based on the results of the analysis, it is possible to conclude that all the considered EDMS have publicly available administration documentation and provide the proper protection level through the use of electronic digital signature and encryption protocols. The most mature is the EDMS EOS. Only TerraLink xDE users can count on free technical support. The ability to change the EDMS is available only for TerraLink xDE and

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TESSA. In order to give a final assessment of the considered EDMS, Fig. 2 presents a matrix, based on which each EDMS was evaluated on a three-point scale according to key criteria. As can be seen from Fig. 2, the TerraLink xDE EDMS received the highest score, so it is most suitable for implementation in an organization. The EOS EDMS has the smallest number of points. It has certain advantages, but still inferior to competitors. Criteria

TerraLink xDE

EOS

TESSA

The maturity of company The level of technical support The possibility to change The availability of administration documentation The level of protection Total

1 3 2 3

3 2 1 2

2 1 3 3

3 12

2 10

2 11

Fig. 2. EDS Assessment Matrix by Key Criteria (Source: author).

4 Discussion The importance of electronic document management systems in the life of an organization is beyond doubt. This is due to the optimization of management processes within the organization. So, A.Yu. Zhilnikov and O.S. Mikhailova write that the use of EDMS is directly the introduction of innovative products and innovative technologies in management processes [5]. A.A. Zharkov notes that the introduction of electronic document management at an enterprise may be associated with the risks of late delivery of documentation, loss of information during transmission and storage, and theft of information, but at the same time, if used correctly, the electronic document management systems significantly simplify the activities of the organization [6]. O.I. Afonyushkina also considers the main advantages and disadvantages of implementing an EDMS, concluding that the most optimal are complex EDMS [7]. T.V. Bratarchuk and I.V. Milkina consider the practical effect of the introduction of EDMS in the activities of the organization and note the possibility of avoiding routine manual operations [8]. The importance of the introduction of EDMS is also considered by various foreign researchers. So, some note that EDMS make it possible to facilitate the management of documents necessary for the implementation of business processes on a digital platform [9]. Others consider the practical experience of implementing EDMS in medical organizations [10]. The problem of choosing an EDMS for implementation from those available on the market, similar to that reflected in this study, is also considered and discussed [11]. Scientists are also studying the prerequisites that determine the acceptance and implementation of EDMS by users [12]. All this only confirms the significance of this topic.

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5 Conclusion The transition of workflow to an electronic format is largely due to the need to speed up work processes in the organization. The EDMS market is not monopolistic and is represented by several companies offering their software products for the set goal. The selected product must meet a number of criteria: the maturity of the company, the level of technical support, the availability of documentation, the possibility of changes and the level of protection. To achieve this goal, three leading electronic document management systems on the market were selected. Each EDMS was analyzed for outcomes against the listed criteria. The TerraLink xDE EDMS turned out to be the most optimal for implementation. It can be concluded that when choosing an EDMS, each company should be guided by its own criteria that correspond to the specifics of their activities.

References 1. TAdviser: the largest suppliers of EDMS, ECM and CSP systems in Russia. https://www. tadviser.ru/index.php/%D0%A1%D1%82%D0%B0%D1%82%D1%8C%D1%8F:%D0% 9A%D1%80%D1%83%D0%BF%D0%BD%D0%B5%D0%B9%D1%88%D0%B8%D0% B5_%D0%BF%D0%BE%D1%81%D1%82%D0%B0%D0%B2%D1%89%D0%B8%D0% BA%D0%B8_%D0%A1%D0%AD%D0%94,_ECM_%D0%B8_CSP-%D1%81%D0% B8%D1%81%D1%82%D0%B5%D0%BC_%D0%B2_%D0%A0%D0%BE%D1%81% D1%81%D0%B8%D0%B8. Last accessed 20 Apr 2023 2. TerraLink: TerraLink xDE, Platform for the organization of legally significant electronic document management in the company TerraLink xDE. https://terralink.ru/elektronnyy-yur idicheski-znachimyy-dokumentooborot/terralink-xde-yuridicheskiznachimyy-dokumento oborot/. Last accessed 20 Apr 2023 3. EOS: EOS is the market leader in workflow automation. https://eos.ru/. Last accessed 20 Apr 2023 4. TESSA: TESSA. Document management. https://mytessa.ru/. Last accessed 20 Apr 2023 5. Zhilnikov A, Mikhailova OS (2017) Electronic document management. Sci Territ 2:116–120 6. Zharkov AA (2014) Electronic document management system. Sci Techn Educ 3(3):65–71 7. Afonyushkina OI (2019) Electronic circulation of documents: features, advantages and disadvantages. Educ Sci Bord Fundam Appl Res 10:164–168 8. Bratarchuk TV, Milkina IV (2020) Development of electronic document management system in tax authorities. E-Manag 3(4):37–48 9. Ayaz A, Yanarta¸s M (2020) An analysis on the unified theory of acceptance and use of technology theory (UTAUT): acceptance of electronic document management system (EDMS). Comp Hum Behav Rep 2:100032 10. Awad S, Amon K, Baillie A, Loveday T, Baysari MT (2023) Human factors and safety analysis methods used in the design and redesign of electronic medication management systems: a systematic review. Int J Med Inform 172:105017 11. S˛ek O, Czarnowski I (2022) Application of analytic hierarchy process in selecting a statemade electronic documentation management system for Polish municipalities. Proc Comp Sci 207:3969–3977 12. Hung S-Y, Tang K-Z, Chang C-M, Ke C-D (2009) User acceptance of intergovernmental services: an example of electronic document management system. Gov Inf Q 26(2):387–397

Analysis of the IT Development Level of Russian Organizations: A Regional Aspect N. V. Proskurina1(B)

, Yu. I. Davidyan2

, M. A. Zorina2

, and A. A. Verkolab2

1 Samara State University of Economics, Samara, Russia

[email protected] 2 Buzuluk Humanitarian and Technological Institute (branch) of Orenburg State University,

Buzuluk, Russia

Abstract. In modern conditions of digitalization of the economy, the use of information technology is one of the most important elements of an effective management system. Organizations have increasingly begun to use information and communication technology (ICT), which greatly simplifies their activities and contributes to more efficient work both with the flow of information and its processing, and with the adoption of various kinds of decisions. Information technologies are a set of processes, methods of searching, collecting, storing, processing, providing, distributing information and methods for implementing such processes and methods. They are designed to use the achievements of modern science and technology and are aimed not only at the development of digitalization of organizations, but also of society, which improves the quality of life of the country’s population. The aim of the study is to analyze the development level of information technologies in Russian organizations at the regional level applying statistical tools. Trends in the main indicators of the use of ICT in organizations have been identified and analyzed, and their predictive values have been calculated. The distribution of regions according to the level of IT development of organizations made it possible to determine the composition of groups and identify subjects in which organizations with a low level of information technology provision need the support of regional government authorities and administration. Keywords: Dynamics · Grouping · Integral Assessment · IT-technologies · Organizations · Statistics

1 Introduction The development of the economy in the 21st century is innovative. Completely new requirements for data transfer are laid down, fast information search, instant connection via the Internet with business partners, and document flow acceleration become important. Companies of various types of activity need the possibility of improving all cycles of the production process. The need for modern methods of obtaining information determines the special development of the information society in our country. The state program of the same name, developed back in 2010, aims to provide the population and organizations with information technologies [1]. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 266–273, 2023. https://doi.org/10.1007/978-3-031-38122-5_37

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Information and communication technologies are the potential for the economic growth of organizations and the reorganization of public life, which is due to the constant increase in the amount of information in these days. Such technologies help to increase the productivity and the competitiveness of the organization. The information technology industry (IT industry) includes such activities as the development of computer software, advisory activities and work in the field of computer technology, computer equipment management activities and data processing activities, the provision of services for placement of information and related activities [2]. Organizations using progressive information technologies are an important indicator of the digital development of our society. The economic potential of the country mainly consists of the activities of various organizations, therefore, the relevance of this work is to study what IT technologies are used by companies in the whole Russian Federation and in the regions.

2 Methodology The information base of the study is official statistical information and forms of statistical reports on the issues on the information society. The materials of Rosstat, the Higher School of Economics of the Russian Federation, monographs, dissertations and scientific publications were used in the work. The authors used methods of analysis of dynamics and forecasting, statistical grouping, the method of multivariate comparative analysis “Pattern”, as well as graphical and tabular methods of presenting data. A statistical study of the use of ICT in organizations of the Russian Federation was carried out for the period 2010–2021. For a comprehensive analysis, indicators were selected that characterize the ICT infrastructure of an enterprise. The paper analyzes the dynamics and forecasts the above-mentioned indicators. For inter-regional comparative analysis, an integral indicator of the level of IT development was used, calculated by the Pattern method, which consists in standardizing private indicators relative to their best values for subjects, taking into account the different levels of indicators and the direction of factors, and calculating a multidimensional average of these indicators. The closer the value of the integral indicator is to 1 or 100%, the higher the level of IT development is in the regions. Identification of homogeneous groups of regions of the Russian Federation by the level of IT development on the basis of the above integral indicator was carried out by means of a typological grouping.

3 Results The use of the Internet and personal computers are fundamental resources for running an enterprise. The website allows you to establish external interaction – with customers, partners, etc., while ERP systems simplify internal management processes. The presence in the organization of the necessary technical means for maintaining documentation, simplifying accounting processes, using application programs for a particular area of application significantly affects the productivity of an employee [3], therefore it is

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important to study such an indicator as the provision of employees of organizations with personal computers. During the study period, there is a positive trend in the availability of personal computers in companies (Fig. 1).

Fig. 1. Dynamics of the provision of personal computers by employees of organizations in the Russian Federation for 2010–2021 (Source: authors based on [4]).

Every year, the value of the indicator increased by an average of 4.91%, except for 2016 and 2019, when its values remained at the level of previous periods (2015 and 2018, respectively). The peak of personal computers was recorded in 2021 at 61 units per 100 employees, and the largest increase occurred in 2020, when the number of PCs increased by 22.8% compared to last year. In general, compared to 2010, the overall increase was 69.4%. Fast Internet connection, high speed of searching for various kinds of information, wireless connection, convenience when working online – all this exists thanks to broadband connection [3]. In general, there is a positive dynamics of the indicator from 2010 to 2021, the exceptions are 2015 and 2020, in which the values of the indicator decreased by 2.0% and 32.9%, respectively, because of the global economic crisis and the Covid19 pandemic (Fig. 2). Growth rate for 2010–2021 amounted to 33.3%, and an annual increase of an average of 3.8%. The dynamic development of the information society obliges organizations to expand the range of information technologies used. In particular, the presence of websites in modern conditions is no longer just an advantage for organizations, but a necessary tool for their normal functioning. Your own website allows you to set up effective interaction with customers, namely, to form information about your audience, get feedback and, as a result, improve the customer service [3]. In addition, websites allow you to provide direct access to the market, gain access to additional market niches, improve the image of the company and increase the credibility of it, and generally improve the business through instant collection of information. Within the framework of statistical observation, an organization that has a website is determined by the presence of at least one page on the Internet, subject to regular (at least once every half a year) updating of information.

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100,0 90,0 76,63

in % of the total number of surveyed organizations

80,0 70,0 60,0

81,77 83,21 79,40 81,16 79,52

86,46 86,60 75,56

63,37 58,10

56,70

50,0 37,8

40,0

41,3

40,3

42,6

45,9

47,4

50,9

51,9 44,3

46,2

33,0 28,5

30,0 20,0 10,0

5,10

6,20

6,50

7,50

2010

2011

2012

2013

10,10

9,30

13,80 14,80 13,80 11,50 10,70 12,20

2014

2015

2016

0,0 2017

2018

2019

2020

2021

Share of organizations that had a website in the total number of surveyed organizations (%) Share of organizations using broadband Internet access in the total number of surveyed organizations (%) The share of organizations that used ERP systems in the total number of surveyed organizations (%)

Fig. 2. Dynamics of the share of organizations in the Russian Federation using broadband Internet access, having a website and using ERP systems for 2010–2021 (Source: authors based on [4]).

In general, there is an increase in the share of organizations that had a website until 2019, when it reached its maximum of 51.9% (Fig. 2). However, in 2020 there was a decline of 14.7% due to the economic crisis. However, already in 2021, the share of organizations that had a website continued to increase. In general, for 2010–2021, the growth rate was 62.2%, on average, the value of the indicator increased by 4.5% annually. A corporate information system that aims to automate business processes in an organization’s activities is an ERP system. It significantly increases the ability of companies in the field of planning, control and analysis. Also, the ERP system is evaluated as a company strategy that combines processes for optimizing production and managing personnel and enterprise resources [5]. With the help of the applied tools used in this case, these strategies are implemented. Steady growth in the share of organizations with ERP systems occurred in the period 2010–2019 with a slight decrease in the indicator by 7.9% in 2015 due to a decline in demand for them and the priority of companies to refine already implemented systems (Fig. 2). However, the decline in the indicator by 22.3% in 2020 was caused by another reason – the pandemic. During the current restrictions, the activities of many enterprises were stopped, as, in particular, work with ERP systems. In the second half of 2020, interest in the implementation and successful operation of such systems was restored with a subsequent increase in the share of organizations by 20%, respectively. Thus, the total increase in 2021 amounted to 170.6% compared to 2010, and on average, the figure increased by 9.5% annually.

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According to the forecasts made, in 2022 there will be an increase in all the indicators under consideration. However, the impact of the events that took place in 2022, in particular, the imposition of sanctions against the Russian Federation, may make adjustments to the forecast. To analyze inter-regional differences in the use of IT technologies in organizations of the Russian Federation, an integral indicator of the level of development of information technologies in organizations was calculated using the “Pattern” method. This made it possible to group the regions of Russia and give an appropriate interpretation of the obtained typical groups according to the level of use of information technologies in organizations (Table 1). Table 1. Typological grouping of regions of the Russian Federation by the level of IT application in organizations for 2021. Intervals of multivariate summarizing estimation

Number of regions in a group

Characteristics of the group by the level of IT application in organizations

Up to 0,615

12

Low level

0,615 – 0,685

36

Average level

0,685 – 0,754

30

Above average level

0,754 – 0,824 Total:

7

High level

85

Source: authors

The composition of the groups of regions of the Russian Federation by the level of use of information technologies by organizations is presented in the cartogram (Fig. 3). The best regions in terms of the use of information technology in organizations are St. Petersburg, Tomsk, Nizhny Novgorod regions, Moscow (more than 74.5%). The lowest level of information technology use in organizations (47.6%) is in the Republic of Dagestan. Also, the group of outsiders in IT development included the Republic of Tyva, Chukotka autonomous okrug, Jewish autonomous okrug etc. The reason for this situation is the lack of development of the IT industry, insufficient knowledge of information technology entrepreneurs, as well as the insufficient development of information interaction between public authorities and the public and means of feedback.

4 Discussion The concept of information and communication technologies is quite broad and affects all spheres of society. Therefore, the scientific works of many researchers are devoted to issues related to the development of information technologies. The development of IT technologies has significant interregional differences and depends on the availability of ICT and the degree of digital readiness of the population

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Fig. 3. Cartogram of the distribution of regions by an integral indicator (level of use) of the development of information technologies in organizations for 2021 (Source: authors).

for the information transformation of society [6]. A high level of digitalization is in economically developed subjects, the regions of the North Caucasus are the least developed in terms of digitalization [7, 8]. To analyze interregional differences in the level of informatization, a quantitative assessment is required, based on multivariate statistical analysis and including, in particular, the development of an integral indicator [9]. A quantitative description of development trends and the degree of regional differentiation of electronic commerce in the Russian Federation in the context of international comparisons of the IT application in organizations is presented in [10]. Recently, much attention has been paid to the study of potential risks and dangers associated with the availability of digital platforms, networks, digital identity and others due to widespread use of digital technologies by organizations and the population. These issues are studied in [11] and [12]. The analysis of scientific papers showed that, despite the relevance of the topic under study, in our opinion, there is a certain lack of scientific research on the quantitative assessment of information technology development trends in organizations and especially in the interregional aspect.

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5 Conclusion Thus, the statistical analysis carried out for 2010–2021 revealed: – increasing trends in the application of IT into the activities of organizations in terms of such indicators as the share of organizations with broadband Internet access, with a website and ERP systems, as well as the number of personal computers per 100 employees; – changes that occurred due to the 2020 pandemic, which had a significant impact on IT operation processes, namely: slowdown, short-term shutdown of enterprises during restrictive measures; – the continued forecast growth of the studied indicators for 2022, which indicates the effect of the state program and other measures taken by the state to support the development of the information society in the Russian Federation. The distribution of regions according to the level of IT use in organizations made it possible to determine the composition of groups and identify subjects in which organizations with a low level of information technology provision need the support of regional government authorities and management.

References 1. Resolution of the Government of the Russian Federation of April 15, 2014 No. 313 (as amended on February 17, 2023) “On Approval of the State Program of the Russian Federation ‘Information Society’”. https://base.garant.ru/70644220. Last accessed 29 Jan 2023 2. Order of the Ministry of Telecom and Mass Communications of Russia dated December 30, 2014 N 502 “On approval of collective classification groupings of the information technology industry”. https://legalacts.ru/doc/prikaz-minkomsvjazi-rossii-ot-30122014-n-502/. Last accessed 15 Jan 2023 3. Pinkovetskaia IS (2022) Assessment of the level of use of personal computers, servers and local networks in organizations located in different regions of Russia. Manag Modern Syst 2(34):33–40 4. Federal State Statistic Service: Monitoring the development of the information society in the Russian Federation. https://rosstat.gov.ru/statistics/infocommunity. Last accessed 10 Feb 2023 5. Kovalenko EG, Murashova NV (2020) Digitization and informatization as factors of sustainable development of territories. Bull NGIEI 10(113):119–128 6. HSE University: Digital Economy. https://www.hse.ru/en/primarydata/icekr. Last accessed 15 Jan 2023 7. Litvintseva GP, Karelin IN (2022) Effects of digital transformation of the economy and quality of life in Russia. Econ Reg 18(1):146–158 8. Litvintseva GP, Petrov SP (2019) Theoretical foundations of digital transformation of economy and people’s quality of life. Russ J Econ Theor 16(3):414–427 9. Petrova E, Trukhlyaeva A, Fokina E (2019) Economic growth monitoring and the Russian regions typology in terms of quality of life in the digitalization of territories. In: Tikhonovich E, Batmanova V (eds) Proceedings of the Volgograd State University international scientific conference: competitive, sustainable and safe development of the regional economy (CSSDRE 2019), vol 83, pp 575–580

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10. Minashkin VG, Prokhorov PE (2018) Statistical analysis of the use of digital technologies in organizations: regional aspect. Stat Econ 15(5):51–62 11. Zotov VV, Aseeva IA, Budanov VG, Belkina VA (2022) Converting the sociotechnical convergence hazards into the risks of digitalization. Digit Sociol 5(2):4–20 12. Battistelli F, Galantino MG (2018) Dangers, risks and threats: an alternative conceptualization to the catch-all concept of risk. Curr Sociol 67(1):64–78

Cost Management in Economic Instability: A Primary Enterprise Task I. A. Naugolnova(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. Effective cost management is crucial for any business, particularly in times of economic uncertainty. This research work explores the main methods of cost management in enterprises, highlighting their benefits and drawbacks, and emphasizes the importance of choosing the right combination of methods to optimize production processes and increase competitiveness. The authors examine various approaches to cost management, including Activity-Based Costing (ABC), Just-In-Time (LEAN), Total Cost of Ownership (TCO), 5S, and Kaizen. They show that combining these methods can result in significant cost savings and improved efficiency in manufacturing processes. The contribution emphasizes the need for companies to choose the right combination of cost management methods based on their specific needs and circumstances. In addition, the authors recommend conducting further research to more accurately analyze costs and determine the optimal combination of methods. This work is essential reading for professionals involved in cost management, as it offers valuable insights into how to effectively manage costs in times of economic uncertainty. By implementing the recommended cost management methods, businesses can achieve cost savings and enhance their competitiveness. Keywords: ABC · Activity-based Costing · Competitiveness · Cost analysis · Cost Management · Just-in-time · Kaizen · Optimization · Total Cost of Ownership · 5S

1 Introduction In the modern world, cost management is becoming an increasingly important task for enterprises in the context of economic instability. The literature contains numerous studies devoted to this problem. One of the authoritative research in this field is the book «Cost management: Strategies for business decisions» [1], where various methods of cost management are considered in relation to their practical implementation at enterprises. Another well-known research devoted to the problem of cost management is the book «The balanced scorecard: Translating strategy into action» [2]. In this book, the authors propose a system for measuring enterprise performance, including indicators related to cost management.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 274–279, 2023. https://doi.org/10.1007/978-3-031-38122-5_38

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It is also worth noting the works of Michael Porter, a well-known economist and business theorist, who pays attention to problems of the enterprise competitiveness and the importance of cost management in this context [3]. In other scientific works, the researchers examined the experience of Russian companies in cost management in conditions of economic crisis, as well as identified the reasons and factors affecting the effectiveness of this process [4]. P. Eriksson and N. Hallberg studied the role of cost management in improving the competitiveness of enterprises in conditions of economic crisis and proposed a number of recommendations for improving the process of cost management [5]. Overall, modern literature on cost management offers various approaches and methods for optimizing costs at an enterprise in the context of economic instability. In this work, we will review some of these approaches and methods, as well as assess their practical significance.

2 Materials and Methods In this study, a systematic review of literature was conducted to identify and analyze the main methods of cost management used in modern enterprises. The search for relevant articles was carried out using the following search engines: Google Scholar, PubMed, and ScienceDirect. The search terms included «cost management», «cost control», «ABC», «LEAN», «TCO», «5S», and «Kaizen». The search was limited to articles published in English language journals from the year 2010 to 2022. The inclusion criteria for articles were: (1) the article is related to cost management in enterprises; (2) the article is peerreviewed; (3) the article is published in English; and (4) the article is published in a reputable academic journal. After the initial search, duplicates were removed, and the remaining articles were screened based on their titles and abstracts. The full text of relevant articles was then assessed for eligibility. The articles that met the inclusion criteria were included in the final analysis. Data were extracted from the selected articles, including author(s), title, journal, year of publication, and key findings. The methods of cost management discussed in the articles were analyzed and categorized into the following: ABC, LEAN, TCO, 5S, and Kaizen. Overall, a total of 50 articles were included in the final analysis.

3 Results To analyze the problem of cost management in a company under the economic instability, various research methods can be used. Some of the commonly used methods are the following: 1. Financial analysis: This method involves analyzing the financial statements of the company, such as the income statement, balance sheet, and cash flow statement. This analysis can help identify the areas where the company is spending more money than required, and where it can cut down its costs.

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2. Cost analysis: This method involves analyzing the costs associated with the production and delivery of goods or services. It can help identify the areas where the company can reduce its costs, such as by optimizing the supply chain, reducing waste, or increasing efficiency. 3. Benchmarking: This method involves comparing the company’s performance with that of its competitors or industry standards. It can help identify the areas where the company is lagging behind and where it needs to improve to reduce its costs. 4. Value chain analysis: This method involves analyzing the company’s entire value chain, from raw materials to the final product, to identify areas where the company can reduce costs or improve efficiency. 5. Activity-based costing (ABC): This method involves analyzing the costs of each activity involved in the production process. It can help identify the activities that are driving up the costs and where the company can reduce them. By using a combination of these methods, companies can gain a comprehensive understanding of their cost structure and identify areas where they can reduce costs to remain competitive in an economically unstable environment. In conditions of economic instability, cost management at an enterprise is a key factor in ensuring competitiveness and business sustainability. However, for effective cost management, it is necessary to take into account the impact of economic instability on the enterprise and its activities [6]. Economic instability, characterized by fluctuations in inflation levels, exchange rates, interest rates, and changes in market conditions, can have a serious impact on the operation of an enterprise. During periods of economic instability, companies face an increase in production costs and a decrease in demand for products. In addition, economic instability can affect the quality of products, which in turn can reduce customer satisfaction and increase costs for returns and replacements. One of the main approaches to cost management at an enterprise is reducing production costs through optimizing production processes [7]. Another approach is cost management based on the analysis and accounting of each expense item. There are several methods for optimizing costs at an enterprise, which allow for reducing production costs and improving the company’s financial results. Such methods include: – activity-based costing (ABC) – a cost accounting method based on activity analysis, which allows determining the real cost of products and identifying the most costly processes; – lean method – a production optimization method aimed at eliminating redundant operations and reducing the production cycle time; – total cost of ownership (TCO) – a method that takes into account not only direct costs of purchasing and operating equipment, but also indirect costs related to its use such as maintenance, repairs, employee training, and other expenses; – JIT (Just-In-Time) – a inventory management method aimed at reducing costs of inventory management and storage by delivering components and finished products only when they are needed; – Kaizen – a method of continuous improvement of production processes, which allows for constant improvement of production and reduction of production costs;

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– 5S – a workplace management method aimed at organizing the workplace and reducing the time spent searching for necessary tools and materials. In recent times, methods of cost optimization based on digital technologies and data analytics have gained increasing popularity [8]. They enable the automation of cost management processes and accelerate decision-making based on accurate data and analytical calculations. Overall, effective cost management in conditions of economic instability requires the application of diverse approaches and methods, as well as continuous monitoring and analysis of the company’s financial state. Cost optimization is an important tool for increasing competitiveness and business sustainability in the face of a changing economic situation. The combination of different cost optimization methods can help to mitigate the disadvantages of each individual method and achieve additional benefits. For example: – combining the ABC method and the LEAN method can optimize production processes by considering not only the cost of each process, but also its efficiency and interaction with other processes; this can reduce redundant operations and improve product quality while reducing costs; – combining the JIT method and the Kaizen method can reduce inventory management costs and optimize production processes by constantly improving them and reducing the amount of inventory; – combining the TCO method and the 5S method can consider not only direct equipment costs, but also indirect costs associated with its use and maintenance, by organizing the workplace and reducing time spent searching for necessary materials and tools. Combining different cost optimization methods can help achieve additional benefits such as improving product quality, reducing production cycle time, improving inventory management, reducing indirect equipment costs, and more. However, when combining methods, it is necessary to take into account the specific characteristics of the enterprise and choose the combination of methods that is most suitable for specific tasks and goals [9].

4 Discussion Combining various cost management methods allows achieving additional benefits and leveling out the drawbacks of each individual method. The literature provides various examples of combining methods. Some researchers examine the combination of ABC (Activity-Based Costing) and LEAN (Just-In-Time) methods to optimize costs in production enterprises [10]. It is recommended using the ABC method to analyze costs for individual production operations and the LEAN method to optimize the production process as a whole. Others combine the JIT (Just-In-Time) and Kaizen methods to optimize production processes and inventory management [7]. The researchers recommend using the JIT method to reduce the production cycle time and optimize inventory management, and the Kaizen method for continuous improvement of production processes. In some works, combination consists of the TCO (Total Cost of Ownership) method and the 5S method to account for indirect equipment costs and improve the workplace [11]. The

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authors recommend using the TCO method to assess the total cost of equipment over its entire lifecycle and the 5S method to optimize the workplace and reduce time spent on searching for necessary materials and tools. Thus, combining various cost management methods is an effective approach to optimizing production processes and increasing the competitiveness of an enterprise. However, when choosing a combination of methods, it is necessary to take into account the peculiarities of the specific enterprise and the goals of cost optimization.

5 Conclusion In conclusion, it can be noted that cost management is an important aspect of managing any enterprise, especially in conditions of economic instability. The combination of various cost management methods allows for additional benefits to be achieved and the drawbacks of each individual method to be mitigated. This contribution examined the main methods of cost management, such as ABC (Activity-Based Costing), LEAN (Just-In-Time), TCO (Total Cost of Ownership), 5S, and Kaizen. It was shown that the combination of these methods can lead to optimization of production processes and increased competitiveness of the enterprise. It is also worth noting that the choice of a combination of cost management methods should be based on the specific needs and characteristics of the enterprise. To conduct a more accurate analysis of costs and determine the optimal combination of methods, it is recommended to conduct additional research. The author hopes that this work could be useful for cost management professionals and help them increase the efficiency of cost management in their enterprise.

References 1. Hilton R, Maher M, Selto F (2004) Cost management: strategies for business decisions, 3rd edn. McGraw-Hill/Irwin, New York 2. Kaplan RS, Norton DP (1996) The balanced scorecard: translating strategy into action, 1st edn. Harvard Business Review Press, Brighton 3. Porter ME (1998) Competitive advantage: creating and sustaining superior performance, 1st edn. Free Press, New York 4. Ogbonnaya CH, Dhir A, Maxwell-Cole A, Gorny T (2002) Cost-cutting actions, employment relations and workplace grievances: Lessons from the 2008 financial crisis. J Bus Res 152:265–275 5. Eriksson P, Hallberg N (2022) Crisis management as a learning system: understanding the dynamics of adaptation and transformation in-between crises. Safety Sci 151:105735 6. Mijoˇc J, Starˇcevi´c DP, Mijoˇc I (2014) Investigation of the relationship between contemporary cost management methods and improvement in financial performance. Econ Res-Ekonomska Istraživanja 27(1):393–413 7. Naugolnova I (2021) The process approach to cost management in project-oriented enterprises of engine building. In: Ashmarina SI, Mantulenko VV, Vochozka M (eds) engineering economics week 2020, vol 139. LNNS. Springer, Cham, pp 85–91. https://doi.org/10.1007/ 978-3-030-53277-2_10 8. Yu Q (2021) Research on the application of big data in e-commerce enterprise supply chain cost control. J Phys: Conf Ser 1865:042029

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9. Luki´c R (2013) Sustainable cost management in retail. Rev Int Comparative Manag 14(2):268–280 10. Kondratenko NO, Novikova MM, Volkova MV: Mechanisms of cost management at the industrial enterprise. A collection of scientific papers of ChDTU 49:91–98 (2018) 11. Radionova N, Skrypnyk M, Voronkova T (2019) Dual nature of industrial enterprise cost management system. Baltic J Econ Stud 5(2):184–190

Development of the Financial Capital Market in the Digital Economy A. Abuzov(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. The integration of digital technologies into modern economies has had a profound impact on the financial capital market. Financial technology (fintech) innovations such as blockchain, cryptocurrencies, robotic processes, and artificial intelligence have reorganized business processes and created new forms of financial services. The development of digital technologies in the financial sector has significantly influenced competition, reduced transaction costs, and improved risk management. However, like any innovation, the implementation of digital technologies in the financial sector also entails risks and concerns about data protection and cybersecurity. This contribution provides an overview of the consequences and prospects of the development of digital technologies on the financial capital market. The author examines the ways in which fintech innovations are disrupting traditional business models in the financial sector and transforming the way financial services are provided. The author discusses the regulatory challenges that arise from the integration of digital technologies into the financial sector and the need for comprehensive legal frameworks that address the specific risks and opportunities of these new technologies. Moreover, the work highlights the potential benefits of digital technologies in the financial sector, including greater financial inclusion, more efficient and secure payment systems, and improved access to capital. Finally, the author emphasizes the need for greater collaboration between the public and private sectors to facilitate the adoption of digital technologies and to ensure their responsible use in the financial capital market. Keywords: Digital Technologies in the Financial market · Financial Capital Market · Financial Technologies · Fintech

1 Introduction Development of digital technologies in the financial capital market is one of the most discussed and relevant directions in modern economic science. However, this topic is also a subject of debate and controversial opinions among researchers. In this work, we present a review of the existing literature on the impact of digital technologies on the financial capital market. Researchers studying the application of digital technologies in the financial capital market examine the impact of digital technologies on key aspects of the financial industry, such as banking, insurance, asset management, and investments. They also discuss the issues of digital transformation of financial institutions and its © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 280–285, 2023. https://doi.org/10.1007/978-3-031-38122-5_39

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implications for consumers and the market [1]. Other authors studying the issues of digital technologies in the financial capital market analyze the digital transformation of the financial sector, including the use of blockchain technologies, artificial intelligence, and cryptocurrencies. These scholars emphasize that these technologies have the potential to change the overall picture in the financial capital market and lead to the creation of new business models and financial instruments [2]. Despite the widespread use of fintech technologies, their impact on the financial market is ambiguous. There are various views on what effects they can have on the financial system, including on investor behavior, risks to financial stability, and the role and functions of traditional financial institutions. Some researchers investigate the role of technologies in transforming the financial system and analyze how digital technologies affect the distribution of power and control in the financial industry. They note that digital technologies, such as high-frequency trading and algorithmic trading systems, strengthen the influence of major players in the market and can create potentially dangerous risks to financial system stability [3]. Another group of scholars examines the role of new technologies in the financial system and analyzes the challenges these technologies pose for regulators. They note that digital technologies, such as blockchain and cryptocurrencies, can improve the efficiency of the financial system and create new opportunities for investors. However, they also observe that these technologies can create new risks and raise potential issues for regulatory authorities and the financial industry as a whole [4]. K. Schwab discusses the consequences of the digital revolution for the economy and society as a whole. The researcher notes that new technologies, such as artificial intelligence and the Internet of Things, are changing social relations and influencing the structure of the economy. He also discusses how these technologies can create new opportunities for the financial industry, but also present new challenges and risks [5]. It is worth noting the work of researchers who have studied the impact of financial technologies on investor behavior and the market as a whole. In their articles, they emphasize that new technologies allow investors to more accurately analyze the market, make more informed decisions, and manage their investments at lower costs. However, as these scholars note, the implementation of fintech solutions can also lead to new risks and have negative consequences for the market [6]. In related research, some authors also highlight key factors that influence the success of fintech startups, such as the project team, innovation, and product attractiveness to consumers. They note that successful fintech startups are usually focused on solving real consumer problems and can quickly adapt to changing market requirements [6]. An assessment of the impact of digital processes on the banking sector of the economy is presented in the work of O.Y. Kuzmina and M.E. Konovalova [7]. The analysis of the literature allows us to identify several key themes related to the impact of financial technologies on the financial capital market: the implementation of new technologies, changes in investor behavior, investment management, and risk management.

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2 Methodology In this study, we used various databases and websites, such as Google Scholar, ResearchGate, as well as websites of financial technology developers, to examine the impact of digital technologies on institutional regulation in the financial sector. Additionally, we conducted a comprehensive analysis of recent publications and research related to the development and impact of financial digital technologies. Our research is based on works of scientists who study the influence of digital technologies on the financial capital market.

3 Evolution of Financial Technologies and Its Consequences The evolution of key financial technologies is presented in Fig. 1.

Fig. 1. Evolution of financial technologies (Source: author).

Some of the earliest financial technologies appeared in the 1950s-1960s: the first credit cards and ATMs were introduced. In 1971, the first electronic trading platform for securities, NASDAQ, began operating, and that same year, the first payment was made using a telegraph. One of the key consequences of the introduction of credit cards was an increase in consumer demand and economic growth. Credit cards became a primary tool for stimulating consumer demand and increasing sales in retail. The introduction of ATMs simplified and expedited the processes of withdrawing and depositing cash. The launch of the electronic trading platform NASDAQ brought significant changes to the financial market. A significant difference between NASDAQ and other traditional stock exchanges was that trading was conducted electronically, without the need for traders to be physically present on the exchange. This enabled faster and more efficient transactions, as well as reduced transaction costs, leading to wider market access for investors. However, the emergence of NASDAQ also had certain negative consequences. In particular, the use of the electronic trading platform opened up opportunities for speculative operations and market manipulation. This led to several serious crises in the stock market, including the 1987 stock market crash. Starting from the 1990s, new and innovative financial technologies have been appearing more and more frequently. For example, in 1995, the first virtual bank was created,

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in 1997, the first payment using SMS was made, and in 1998–1999, electronic wallets and systems for electronic payments began to be actively created. PayPal is considered the first full-fledged payment system. The application of blockchain technology in the financial market can have key consequences, including: – improved security and reduced risk of fraud and errors in transaction systems. Thanks to the decentralized and distributed nature of the technology, each transaction is verified by multiple participants, making it more secure and reducing the likelihood of errors or fraud; – reduced costs and increased efficiency in the financial market. The use of blockchain technology can eliminate the need for intermediaries such as banks or brokers, reducing costs and speeding up the transaction process; – new opportunities for creating digital assets. Blockchain technology enables the creation of new digital assets that can be used for investment or trading on financial market; – increased transparency and trust in the financial market. Thanks to the distributed nature of the technology and the ability to verify each transaction by multiple participants, blockchain can improve transparency and trust in the financial market. However, it should also be noted that the application of blockchain technology in the financial market can also pose new problems, such as regulating the use of technology, data privacy issues, and risk management. In general, the application of blockchain technology in the financial market should be carefully regulated and managed to minimize risks and maximize potential benefits. Simultaneously with the implementation of blockchain in the financial market in 2008, robo-technologies started to be actively introduced. The application of roboadvisors in the financial industry has several key consequences. Firstly, this is a reduction in the cost of managing investment portfolios, as robotic systems can work more efficiently and cheaper than people. This can lead to a decrease in management fees for investment portfolios and an increase in accessibility of investments for a wider audience. Secondly, robo-advisors are able to provide investment recommendations based on the analysis of a large amount of data, including financial reports, market data, as well as information about the client and their investment goals. This can increase the accuracy and efficiency of investment decision-making and reduce the likelihood of errors associated with human factors. The third consequence is an increase in the automation of the investment process. Robo-advisors allow investors to create and manage their investment portfolios using mobile applications or web platforms, making investing more convenient and accessible. Finally, the use of robo-advisors may lead to a change in the role of financial advisors. Instead of simply providing investment advice, they can become a kind of intermediary between clients and robo-advisors that provide investment recommendations. Advisors can help clients choose the most suitable robo-advisor and configure it according to the client’s individual needs and goals.

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Technologies such as smile-to-pay, payment via QR codes and barcodes, and voice verification of bank customers have become important innovations in the financial market. They have significantly simplified and accelerated the payment process, reduced costs and risks, and increased security and convenience for users. For example, payment via QR code or barcode allows customers to quickly and conveniently make purchases without spending time searching for and entering their card number, while also reducing the risks of fraud associated with theft or loss of a bank card. Smile-to-pay, facial recognition technology, allows customers to make payments without using physical cards or mobile applications, reducing the risks of personal data leaks and improving convenience for users. Voice verification of bank customers has also become an important means of combating fraud and has simplified the process of identifying the customer during transactions, reducing time and improving the user experience. Overall, these technologies have had a significant impact on the financial market, speeding up payment processes and simplifying processes for users and banks, while also reducing the risks of fraud and increasing security. However, it is important to consider possible risks associated with the use of these technologies, such as personal data leaks and increased risks of cyberattacks.

4 Prospects for Development of Digital Financial Market Financial technologies continue to grow at a rapid pace, and the prospects for further growth look very promising. Fintech companies are at the center of many innovations that have the potential to revolutionize traditional financial markets. There are currently many areas where fintech can realize its potential. One of the most promising areas is blockchain technology, which can significantly simplify and speed up financial transaction processes, increase their transparency and security [8]. Another important area of fintech development is digital payments, which allow users to quickly and conveniently make transactions anywhere in the world. Payment technologies such as QR codes, barcodes, and others can greatly simplify the payment process and increase convenience for users. In addition, the development of artificial intelligence, machine learning, and robotics in fintech can improve the quality of financial services and reduce the costs of providing them [9, 10]. For example, robo-advisors and credit scoring systems can reduce portfolio management and credit issuance costs, which can lead to lower costs of financial services for clients [11]. Finally, the development of fintech can also lead to changes in the structure of financial markets, improving their accessibility and increasing competition. Fintech startups can become serious competitors to traditional banks and financial institutions, which, in turn, can lead to lower prices for financial services and improve their quality [12]. Overall, fintech represents a promising direction that can significantly change the financial market in the near future.

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5 Conclusion In conclusion, it can be said that fintech technologies continue to change the financial market, improving its efficiency and accessibility for all users. Blockchain, roboadvisors, QR code payments, and other new technologies are becoming increasingly popular and widespread. They create new opportunities for improving services and products in the capital market, but they also carry risks and raise questions about user security and privacy. However, despite these risks, fintech technologies will continue to develop, improving the financial market and increasing its efficiency and accessibility for users. It is important for regulators and market participants to work together to create a more transparent and secure environment for the use of fintech technologies.

References 1. Vukovic DB, Maiti M, Grigorieva EM (eds) (2022) Digitalization and the future of financial services: innovation and impact of digital finance. Contributions to Finance and Accounting. Springer, Cham 2. Mavlutova I, Spilbergs A, Verdenhofs A, Natrins A, Arefjevs I, Volkova T (2022) Digital transformation as a driver of the financial sector sustainable development: An impact on financial inclusion and operational efficiency. Sustainability 15(1):207 3. Wittal A (2017) The political economy of digital technologies. In: Koch G (ed) Digitisation, 1st edn. Routledge, Abingdon-on-Thames, pp 251–275 4. Perez C (2002) Technological revolutions and financial capital: the dynamics of bubbles and golden ages, 1st edn. Edward Elgar, Cheltenham 5. Schwab K (2016) The fourth industrial revolution: What it means, how to respond. World Economic Forum. https://www.weforum.org/agenda/2016/01/the-fourth-industrialrevolution-what-it-means-and-how-to-respond/. Last accessed 14 Mar 2023 6. Dubey KK, Gupta R, Bhadouria S (2023) The role of fintech in financial awareness and mutual fund investment decisions. Int J Dev Res 13(1):61312–61316 7. Kuzmina OY, Konovalova ME (2021) The development of the russian consumer lending market under digitalization. In: Ashmarina SI, Mantulenko VV (eds) Current achievements, challenges and digital chances of knowledge based economy, vol 133. LNNS. Springer, Cham, pp 189–196. https://doi.org/10.1007/978-3-030-47458-4_22 8. MarketsandMarkets (2020) Blockchain Market by Component, Provider, Application, and Region – Global Forecast to 2025. https://www.marketsandmarkets.com/Market-Reports/blo ckchain-market-90100890.html. Last accessed 14 Mar 2023 9. Accenture (2019) Banking Technology Vision 2019. https://bankingblog.accenture.com/wpcontent/uploads/2019/08/Accenture-Technology-Vision-Banking-2019_DACH.pdf. Last accessed 14 Mar 2023 10. McKinsey & Company (2018) Blockchain beyond the hype: What is the strategic business value? https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/blo ckchain-beyond-the-hype-what-is-the-strategic-business-value. Last accessed 14 Mar 2023 11. PwC Global Fintech Rankings Report (2021) Bridging The Gap. https://findexable.com/wpcontent/uploads/2021/06/Global-Fintech-Rankings-2021-v1-23-June-21.pdf. Last accessed 14 Mar 2023 12. Pulse of Fintech H2 2021 – Global, https://kpmg.com/xx/en/home/insights/2022/01/pulseof-fintech-h2-2021-global.htm,. Last accessed 14 Mar 2023

Structuring the Digital Economy as a Basis for Ensuring the Economic Security S. D. Rebrov

and K. N. Ermolaev(B)

Samara State University of Economics, Samara, Russia [email protected]

Abstract. The contribution attempts to consider the digital economy with the help of its structural component within the framework of ensuring the economic security. The general structure of the digital economy and its organization are revealed. The authors analyzed a role of the information technology application for the construction of a new system-forming structure that allows to provide and respond to the ongoing processes in the economy in real time. The importance of the information security in such a structure during its functioning is described. The question is raised about the vulnerability of such an organizational system and its ability to be sustainable under the influence of various environmental factors. A possible structural model of such a system is presented in this work, which meets the criteria of stability, functionality and security. Possible results from the use of such a system in the framework of its positive and negative use are presented. Keywords: Consistency · Databases · Digital Economy · Economic Security · Information Security · Information Technology · Structure of Digital Economy

1 Introduction Recently we have witnessed an important historical event – the transformation of the world towards the use of digital technologies. It has affected all spheres of human life – from the economy and industry to the daily lives of people. This process of transition to a new digital reality has become known as digitalization. This process has introduced digital technologies into all spheres of human activity and replaced traditional methods and solutions with digital analogues. Digital technologies allow better use of existing resources and opportunities, open up new facets of business and computer interaction, as well as automate and optimize business processes. Areas that have never been associated with technological innovations and the potential of the Internet before are beginning to actively develop and use new online opportunities to improve their activities. In other words, digitalization is changing the world and helping humanity to gain new opportunities and advantages, which in turn increases competitiveness in the market of business and economic opportunities. In the context of the rapid development of digital technologies and the emergence of new forms of business, the structuring of the digital economy is becoming extremely relevant to ensure economic security. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 286–291, 2023. https://doi.org/10.1007/978-3-031-38122-5_40

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The relevance of the topic is that in the modern digital era, the economy has begun to include such areas as e-commerce, online payment, financial and technical innovations, etc. In this regard, it is necessary to determine the structure of the digital economy and its components, as well as to develop effective measures to ensure economic security in this sector. Such structuring will improve the system of control over financial transactions, data privacy protection and develop international cooperation, which will contribute to the further growth of the digital economy and increase the level of economic security. The most important from the point of view of the topic will be the analysis of the impact of digitalization on economic processes, what structure it has acquired and what role high technologies play in ensuring economic security in the new digital reality.

2 Methodology In this work, the structural analysis method was used to describe and analyze the components of the digital economy and determine their impact on economic security. The authors also used the modeling method, the method of system analysis. This made it possible to combine all the components of the digital economy into a single system to analyze their impact on economic security. The research is based on the concept of the digital economy and on the concept of information security. The research objectives include: 1. Consider the concept of the digital economy and its importance for ensuring economic security. 2. To study the basic principles of structuring the digital economy and its organization. Objectives of this contribution are: 1. Consider the main characteristics of the digital economy. 2. Analyze the risks associated with the digital economy and its impact on economic security. 3. To identify the mechanisms of structuring the digital economy and the role of information technology in this process. 4. To present a possible model of the digital economy, taking into account its functionality within the framework of economic security.

3 Literature Review Researchers at the Brookings Institution define digitalization as a process of using digital technologies and information to transform business operations. This view of the term is defined from the perspective of business operations in companies [1]. The following digital technologies are actively used for digitalization: digital design and modeling (CAD), mathematical modeling, computer and supercomputer engineering (CAE, HPC) and optimization (CAO), technological preparation of production (CAM), smart models, digital twins, product data management technologies (PDM) and product lifecycle management (PLM) technologies; new materials [2]. Under digital economy we traditionally understand any types of economic activity if they include various data in the digital format as a key production factor. The main

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specific feature of digital economy is the application of information and communication technology [5]. Management in these conditions is characterized by processing of large volumes of information and the application of results of analytical activities. This can significantly improve not only the management process itself, but also the efficiency of production, technological development of enterprises and other areas of business activities [3]. The digital economy connects daily millions of people, business structures, devices, and processes [4]. The digital economy and digitalization are playing an increasingly important role in the global economy. Information plays a very important role and is an integral factor of the production process. Based on the information, strategic decisions are made on the development of national economies, within the framework of enterprises it helps in the development of new products and services, market trends and consumer demand are analyzed. In the digital economy, in our opinion, information is a key resource that affects the growth and stability of the country’s economy.

4 Results Like any economic system, the digital economy also has its own structure, but with its own characteristics. The digital economy is related to the innovative development is characterized by the active use of computer [6]. In its structure, the digital economy includes the sphere of science and education where an intellectual resource (scientific product) is created, and this is the basis the production; the sphere of digital manufacturing where a digital product is developed with the use of the latest technologies; the sphere where the digital product is consumed [7]. The digital economy is a complex structure subject to risks and threats, consider them further. In the process of active transition to the digital reality, the issues of security are becoming more and more acute. There is always a threat of data privacy violations, theft of personal information and other types of fraud. Therefore, in order to prevent such risks, it is necessary to organize a high-quality information security system that will be based on the principles of confidentiality, integrity and availability of data. Despite the fact that digitalization is of paramount importance, it is necessary to take into account many nuances. But at the heart of all this is security, which is absolutely fundamental. To fully realize the possibilities, security must be a core part of any digital transformation strategy. We currently have a diverse and growing landscape of risks and threats, and as the business becomes digital, the number of external points of contact will only grow, making them more vulnerable [8]. Ensuring information security in the digital economy has become a top priority, but we should also not forget that the economy itself is also a component of it. In general terms, economic security can be characterized as the ability and readiness of the economy to consistently provide decent living conditions and personal development, socio-economic stability of society and the state, to resist the influence of external and internal threats, as well as an organizationally designed, stable, self-developing material and socio-economic complex, within which national economic interests are actualized, structural objects are allocated and formed [10]. The security of the digital economy is ensured primarily in its structure-forming sphere, namely, it is connected with the use of information technologies combined with

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a single system. The proposed model of the digital housekeeper, which most in our opinion meets the criteria of security and stability, has the following elements: the subject of the economy (households, companies, the state, etc.); places of storage and processing of accumulated information (databases, processing centers, etc.); places of managerial decision-making (companies, government agencies, etc.). In a schematic form, it can be represented as follows (Fig. 1). The meaning of the presented model is that the subject of the economy accumulates (has) the necessary information about himself, then he transfers it to his or other centralized database centers, after which they are analyzed and the final result is adopted, on the basis of which a decision is made on the development of the subject or the use of this information. We highlight the following results on the use of such a system: 1. Positive: New technologies, big data analysis; acceleration of communications and payments; development of national economies in accordance with their capabilities and needs. 2. Negative: Restriction of competition, the risk of electronic control; unemployment, social tension, the emergence of social tension; degradation of own competencies and opportunities.

Economic entities

Accumulation of information in databases

Information exchange

Transmitted information

Ensuring information security

Ensuring economic security

Company development

Management decision-making centers Development of the national economy

Using data to predict processes

Fig. 1. Structural digital economy model (Source: authors).

So, its meaning is that the subject of the economy accumulates (has) the necessary information about himself, then he transfers it to his or other centralized database centers, after which they are analyzed and the final result is adopted, on the basis of which a decision is made on the development of the subject or the use of this information for

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statistical and predictive purposes. Moreover, at different stages, one or another level of security is provided. During the accumulation of data, its protection is carried out, after making decisions, economic security is ensured. This is manifested in the fact that after analyzing the data obtained, it immediately becomes clear what the situation is in the economy of the country or in its individual subject (company or organization), after which it is summed up to bring the necessary measures to improve or stabilize the economic situation as a whole.

5 Conclusion Summing up, we can say that there are both threats and risks of the transition to a digital economy in a new digital space. This is primarily manifested in the vulnerability of the information field that is used for the functioning of such systems. This work revealed the essence of the content and interpretation of the concepts of digitalization and digital economy. The authors noted that for the construction and functioning of a housekeeper of this type, it is information technologies and their structural unification that play an important role. It was noted that, as for all economic systems, economic security should also be ensured in the digital economy, and it is associated with information security. This conclusion was made based on the fact that when building a digital economy, a technological component is also used, which is also subject to certain threats and risks. In addition to the threats and risks in the transition to the digital economy, there are also many advantages that a company, a state can get from the transformation of its national economy into an information channel. This requires a rational approach to the organization of the system of functioning of economic entities. The authors, based on the concept of structural analysis and modeling, taking into account the fact that the main component of a new type of housekeeper is information, proposed their own model of how the structure and functioning of economic entities in the digital space is possible. The model proposed by the authors can be used as a basis for building a different kind of system-forming structure, which in the future can be used for the development of increasingly complex economic systems that can provide both information and economic security of the state.

References 1. Gobble MAM (2018) Digital strategy and digital transformation. Res Technol Manag 61(5):66–71 2. Mousavi SM, Lari K, Salehi G, Azad M (2020) Technical, economic, and environmental assessment of flare gas recovery system: a case study. Energy Sources, Part A: Recovery, Utilization, Environ. Effects. https://doi.org/10.1080/15567036.2020.1737597. Last accessed 8 Apr 2023 3. Sergeev LI, Sergeev DL, Yudanova AL (2023) Digital economy, 1st edn. Yurayt Publishing House, Moscow 4. Deloitte: What is digital economy? Unicorns, transformation and the internet of things. https:// www2.deloitte.com/mt/en/pages/technology/articles/mt-what-is-digital-economy.html. Last accessed 8 Apr 2023

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5. Tapscott D: The digital economy, http://dontapscott.com/books/the-digital-economy/. Last accessed 8 Apr 2023 6. Svetunkov SG (2019) Theory of multilevel competition, 1st edn. URSS, Moscow 7. Brutyan MM (2019) Digital revolution in marketing. Pract. Mark. 2(264):3–15 8. Lev MYu, Leshchenko YuG (2020) Digital economy: on the way to the strategy of the future in the context of ensuring economic security. Issues Innovative Econ 10(1):25–44 9. Search Inform: Threats to information security, https://searchinform.ru/informatsionnaya-bez opasnost/osnovy-ib/ugrozyinformatsionnoj-bezopasnosti/. Last accessed 08 Apr 2023 10. Avdiyskiy VI, Dadalko BA (2013) Shadow economy and economic security of the state, 1st edn. ALPHA-M, Moscow

Sustainable Development of Russian Business: Management Challenges and Innovative Solutions M. O. Suraeva(B)

and E. S. Popova

Samara State University of Economics, Samara, Russia [email protected] Abstract. The contribution considers sustainable development as the most important aspect of holistic organizational development followed by transformation of internal culture. The managerial aspect of sustainable development aggregates the issues of corporate and transparent management, introduction of new techniques and innovative solutions in management practice, which led to the creation of a structured pyramid of critical thinking development within the framework of corporate social responsibility. The main elements will be the observation, the ability to analyze, the ability to interpret, the ability to evaluate, the ability to form inferences. The elements will form the basis for the development of the model of organizational competence, according to which a specific algorithm for determining an individual business model is drawn up. This model allows to concretize the strategy of sustainable development, relying on organizational competences of business and choosing the most relevant of them according to the degree of priority and performance indicators. It was proved that sustainable development becomes the result of correct and considered decisions of management on the basis of critical thinking, analytical approach, flexibility of decision making which meets the goals of corporate social responsibility. Keywords: Corporate Social Responsibility · Critical Thinking · Innovation · Management · Organizational Competencies · Sustainable Development

1 Introduction Today the need to address ESG (Environment, Social, Governance) issues is due to the transformation of modern business, changes in the geopolitical and economic environment, a fundamental shift in the fundamental values of business, preservation of human capital in the regions by leveling social tensions and the introduction of relevant employee incentive programs, restructuring external social investment. Sustainable development of modern business becomes the central element of the strategy, which localizes ESG-oriented tools, solves current and strategic challenges and analyzes the reputational risks for the development of national systems and the formation of industry standards of doing business [1]. The development of ESG initiatives is observed in the oil and gas and chemical industries, as well as in the energy sector, which provides a share of 70% of companies [2]. In the light industry and telecommunications and communication the lowest percentage of ESG-orientation is expressed. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 292–298, 2023. https://doi.org/10.1007/978-3-031-38122-5_41

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Assessing the state of sustainable development in Russian business is connected with the historical peculiarities of the temperament of top management and entrepreneurship. Sociologist Hofstede traced the peculiarities of the formation of corporate culture and came to the conclusion that its origins are features of national culture [3]. The following aspects of cultural dimensions were characteristic of Russia: power distance (more than 94% of business), uncertainty avoidance (96%), strategic thinking of leadership (84%), and to a lesser extent, individualism (40%) [4]. While in the past decade the «carrot and stick» method, which involved a balance between fiscal sanctions and tax incentives, was in demand, the current stage of social development and digital technology has led to a shift in business focus towards «people», their potential and opportunities to achieve results through human-centeredness [5]. Top management, employees and key stakeholders become the main focus, which determines the desire of managers to form complementary teams, stimulate individual activity of each team member, communicate the degree of responsibility and help the business to become more successful and competitive. The result is a 35% increase in employee productivity, and the correlation coefficient between investment in development and loyalty reaches more than 45% [6]. Corporate culture relies on the principles of collective, future-oriented aspirations, speed of decision-making, digital behavior, touches on attitudes toward uncertainty and flexibility of mind [7]. Top-management faces the problems of finding organizational «acme», which involves the disclosure of organizational potential in a particular business, the development of internal decisions based on the analysis of the development strategy, the adjustment of the course of sustainable development. Therefore, the purpose of the study is to analyze the sustainable development of Russian business, innovative solutions and drivers of success. For this purpose, the following tasks were solved: 1. The concepts of sustainable development were considered and key management factors were systematized. 2. The peculiarities of sustainable development of Russian business were identified and innovative approaches to management were selected. 3. Perspective solutions in the field of sustainable development are analyzed.

2 Methodology The authors conducted a review analysis of the key drivers of development, the data on the state of business within the integration of sustainable development principles were recorded. A study of expert surveys was conducted, which revealed that more than 75% of business units noted the importance of promoting ESG initiatives – agenda at the state level, which will be a driver of big business development in Russia. 60% of respondents noted the importance of developing national ratings, which would significantly increase the incentive for investment participation of foreign stakeholders [8]. Having analyzed data and annual reports from Russian businesses, the authors concluded that priority is given to the development of internal corporate programs as the leading area for improving well-being and brand loyalty. The tools for implementing the sustainability strategy are annual reports and open publications on the work done (over 80%), implementation of ESG marketing projects (67%), investments in sustainability projects (over 59%). Commitment to the ESG-agenda increases demand for the

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company’s products by 30–35%. Consumers give preference to products that respond to social and environmental issues and to companies with an enlightening communications campaign. The main barrier factors are changes in the geopolitical environment, economic policy, the sanctions imposed against Russia, which have adjusted business strategy towards accelerated adaptation to the conditions, directing efforts to preserve business, jobs within the sanctions pressure to retain market positions. Figure 1 shows the main barriers to sustainable development of Russian business. The solution will be the elaboration of requirements at the state level, changes in tax policy and equipping with incentives or available loans.

The resources are focused on the preservation of the market position.

The prevalence of the «ESG for export» concept in the country. Barriers to development:

Insufficient government support sustainable financial market.

Reducing budgets for ESG projects and/or employees of relevant division.

Difficulties with long-term planning in the current geopolitical situation.

Fig. 1. Barriers for the development of Russian business in the framework of ESG-orientation (Source: authors).

The practice of closing access to Western financing shows the transition of the ESGagenda initiative to large Russian market players (more than 75% of business), the state (67%), investors from the Middle East, Asia (60%), consumers (49%), company employees (30%), non-profit organizations (25%) [9]. The managerial aspect of sustainable development aggregates issues of corporate and transparent management, implementation of new methods and innovative solutions in management practices, development of employee motivation tools, rules and documents to protect shareholder interests, the concept of risk management and formalization in the form of corporate documents. The most common documents are the provisions of the management bodies (more than 48% of companies implement), development strategy

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(35%), code of business ethics (27%), anti-corruption policy (19%), conflict of interest management policy (17%), ESG-policy (8%) [10]. These studies became the basis for the formation of an analytical summary of trends in the sustainable development of Russian business.

3 Results The concept of sustainable development is based on a balance of economic growth, environmental protection and social integration to improve the quality of life of the population and minimize the negative impact on the environment. ESG – principles include aspects of responsible attitude to the environment, a high role of social responsibility, high quality of corporate governance. Sustainability is the maximum involvement in the processes of management structure, business integrity and brand reputation, transparency of activities, stakeholder relations, ethical sourcing, human rights, data privacy, quality and climate change policies, environmental impact. For Russian management, sustainable development is conditioned by holistic organizational development and transformation of internal culture [11]. Timely solutions can be new paradigms that will be broadcast within the organization. The intense flow of information requires constant processing and the incorporation of brain processes. Information has acquired the ability to be psychologically contaminated and to have an amplified effect on emotions [12]. In connection with this situation, business can consider the introduction of a structured pyramid for the development of critical thinking as part of corporate social responsibility. The main elements will be: observation, the ability to analyze, the ability to interpret, the ability to evaluate, the ability to form inferences (Fig. 2). The five pillars of the thought process will create information security and «brain process hygiene», lead to an updated strategy that builds on internal psychological aspects. As a result, business will strengthen the formation of managerial thinking, the development of managerial competencies, will learn the tools of process improvement to form a favorable and working environment. This pyramid is reflected in the readiness of top management to learn from their own experience and to achieve priority results on the basis of flexible thinking. The methodology involves solving management challenges through an innovative change in the model of organizational competence [13]. The model of organizational competence is based on 7 aspects: – – – –

human capital (includes competencies of people and teams); process capital (processes and resources); innovative capital (innovative developments, the latest technologies); resource capital (finances, natural resources, material resources, human resources and reputation); – client capital (technologies to retain and attract customers); – organizational capital (organizational philosophy, management culture);

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Observation

Ability to evaluate

Ability to interpret

Ability to analyze

Ability to form inferences Fig. 2. Structured pyramid for the development of critical thinking of top management and employees (Source: authors).

– ecosystem capital (suppliers, external experts, contractors). Each competency is analyzed and rated based on strategic value. Through ranking, the company emphasizes long-term strategic competitiveness. The solution for the business can be a specific algorithm for determining an individual model of organizational competence, which includes the following steps: 1. Identification of the business context, strategy and key ambitions (This step is the specification of strategic goals and formulation of key objectives). 2. Identification of organizational competencies relevant to the strategy (Business analyzes the application of innovative technologies to increase performance). 3. Identification of critical performance indicators (The stage of defining performance parameters based on fundamental indicators). 4. Analysis of organizational competencies by current and prospective state (Ranking of indicators by importance and influence on KPIs). 5. Analysis of selected competencies (It is based on the research of competency development criteria, codification of formalized knowledge, distribution based on current state and target state). 6. Formation of an action plan (This stage involves defining the metrics, performers and target state based on them).

4 Discussion This model allows to specify the strategy of sustainable development, relying on organizational competencies of business and selecting the most relevant of them by the degree of priority and performance indicators. Algorithm of a company profile will help to adjust

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the actions of top-management and employees, clearly allocate responsible persons for business development, to introduce the pyramid of development of critical thinking as the solution for productivity of brain processes. These solutions are an integral part of sustainable development within the social and managerial aspect. Thanks to structure and development of abilities, analysis of competence it is possible to bring business to a qualitatively new level of management and understanding of processes, to secure from external factors and uncertainty and to introduce auxiliary innovative technologies.

5 Conclusion Thus, management challenges lead to the creation of complex solutions that are integrated into the organizational model, the model of people development and corporate communications [14]. The changes caused by the current geopolitical situation provoke the study, revision of the current organizational model, which provides business processes, projects and is embodied in products and services [15]. Introduction of changes passes through five necessary stages of managerial participation, in which the essence of changes is noted, the desire to conduct them and to act in a new way, to promote the conduct by own example and to reinforce the model of behavior. The managerial aspect has close links with the system of risk management and internal control, the remuneration of key executives, non-financial reporting (the use of GRI, CDP, TCFD and other standards), as well as the creation of corporate documents. Thus, companies can emphasize the development of critical thinking, formalize the process in the form of a pyramid, which will form the basis of the strategy, concretize the stages of determining the individual model of organizational competence to achieve priority results and timely solutions to emerging challenges. Sustainable development becomes an outcome of correct and considered decisions of management on the basis of critical thinking, analytical approach, flexibility of decision making, meeting the goals of corporate social responsibility.

References 1. Aynullina KN (2023) Analysis of the concept of sustainable development. Moscow Econ J 2:100–108 2. Zolotukhin DV (2023) Sustainable development of the enterprise. Methodology and practice applications. Financ Markets Banks 3:94–99 3. Naumenko TV, Morozova DA (2018) The theory of intercultural measurements. G Hofstede as a methodological basis for the study of contemporary social processes. Int J Cult Res 1(30):144–154 4. Sber: ESG development vector. Barometer of sustainable business transformation in Russia. https://sber.pro/publication/vektor-razvitiya-esg-barometr-ustojchivoj-transform aczii-biznesa-v-rossii. Last accessed 20 Apr 2023 5. Novikov DA, Dovtaev S-AS (2022) Social strategy of performance development. Bus Herald Entrepreneur 3(9):82–87 6. Gostenina VI, Melnikov SL, Novikov AS (2023) Social factors of the formation of corporate culture in the Russian oil and gas industry. Soc Humanitarian Knowl 1:27–32

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7. Ruchkina TV (2014) Peculiarities and peculiarities of personality formation as a professional. Econ Soc Sci 2(11):1404–1414 8. Business and Society: E+ Change and Kept: 60% of companies have even increased the importance of the ESG agenda. https://www.b-soc.ru/io/e-change-i-kept-dlya-60-kompanijznachimost-esg-povestki-sohranilas-i-dazhe-povysilas/. Last accessed 20 Apr 2023 9. RBC: ESG agenda for business: sustainable development in the new reality, https://chr.plus. rbc.ru/news/624598017a8aa90f36782a28. Last accessed 20 Apr 2023 10. Zueva K: Corporate governance under the ESG concept, https://journal.ecostandard.ru/esg/ ustoychivoe-razvitie/korporativnoe-upravlenie-v-ramkakh-kontseptsii-esg/. Last accessed 20 Apr 2023 11. Vasilatiy OV (2023) Sustainability of economics – As a basis for sustainable development of industry. Nat Humanitarian Stud 45(1):61–67 12. Trojanskaya MA, Pashinnaya YaS (2023) Management of the environmental education sphere: theoretical aspect. Natu Humanitarian Stud 45(1):251–258 13. Krylova MB (2023) Cross cultural management: from classics to modernity. Izvestia of St Petersburg State Univ Econ 2(140):129–134 14. Ketoeva NL, Znamenskaya MA, Sysoeva EA (2023) Innovation aspects of sustainable development of the Russian federation’s energy. Innov Investments 3:8–14 15. Xue Y (2023) Applying the concept of social responsibility in the activities of Russian companies. Financ Markets Banks 2:46–51

Category «Secrecy» in the Law: Economic, Personal and National Aspects A. V. Sidorova(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. Secrecy as a category accompanies the human society from the moment of its formation. The secrecy is an object of multidisciplinary scientific research. This category is multidimensional. In law, the category of «secrecy» has been known for a very long time. This category is not static. The number of secrecies enshrined in the legislation increases every year. There is not a single legal system in the world where one or another kind of it is not fixed. In the modern information society, the secrecy has got new shades, previously unknown. The political and socio-economic existence of the human society causes the aggravation of contradictions between the needs of society in expanding the free exchange of information and the need to maintain certain regulated restrictions on its dissemination. In the Russian doctrinal legal science, little attention has been paid to this category. Legal scientific research of secrecy is of an specific nature and is devoted to certain types of secrets. Today, the legal definition of secrecy has not been formulated, the classification of its types has not been developed. There are more than 80 types of secrecy in modern Russian legislation. There are types that are not fixed in the legislation. Keywords: Official Secret · Profession · Professional Secret · Secrecy

1 Introduction What is secrecy? Humanity has been looking for an answer to this question since its inception. Secret and frightens and excites minds. Hearing the word, secrecy a person begins to catch all the information said later much more attentively and meaningfully. And unwittingly, we try to find in the information received a double meaning and signs. We can say that secrecy is something unsolved, not yet known, hidden from others, not known to everyone. In the legal field, secrecy is information, access to which is limited due to certain grounds. Private and public interests, rights and obligations of the individual and the state are closely intertwined here. It is not surprising that the oldest legal sources already enshrine the norms governing state secrets. The category «secret» has acquired particular importance in the modern society by the development of digital technology [1, 2]. The secrecy plays an important role in the industrial development of countries, as the information and access to it are becoming significant competition factors in the new © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 299–303, 2023. https://doi.org/10.1007/978-3-031-38122-5_42

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reality. Industrial secrets can include secret formula, device, or information that gives the owner a competitive advantage as long as it remains a secret. Industrial secrets may contain information that is not new or original enough to be patented (for example, a seismological database or a client list). Today there is a need to develop a holistic doctrinal concept of legal secrecy in the Russian science. Its absence leads to a defect in the legal regulation in the field of protection of personal, business and state information from unauthorized access. Such a concept should become the basis of industry developments in this legal field.

2 Methodology The implementation of scientific knowledge in the field of classification of types of the legal institute of secrecy was carried out using specific scientific methods. Scientific knowledge of the world differs from the ordinary breadth of research. This causes a fairly large number of varieties of methods of scientific knowledge. For the completeness of the present study, universal and special methods of cognition were applied. From the list of universal scientific and cognitive methods, the following were used: analysis method and classification method. For the completeness of the study, empirical (work on the study of documents and other material evidence and the analysis of printed materials and public speeches) and theoretical methods of knowledge (induction and deduction) were used. Special methods of legal science were also used: formal-legal and comparative-legal.

3 Results Legal scientific studies of secrecy are sectoral in nature and are devoted to certain types of secrets. Until today, a single doctrinal definition of secrecy has not been formulated. M.V. Avdeeva and A.Yu. Pidzhakov, considering the secret as a legal phenomenon mediate it as a legitimate prohibition of access to information, unauthorized receipt, as well as the disclosure or other use of which may lead to damage [3]. According to M.V. Permyakov, the secret is a complex system-forming establishment of the order of information, access to which is limited, enshrined in legal norms and provided with a set of legal means [4]. Classifications of secrets, compiled in violation of the rules of logic. The rule is violated: views have to be divided into one base, elements must mutually exclude each other. Secrecy in jurisprudence is accepted to be considered as a legal institution, as a legal regime, as a legal phenomenon and as a legal category. Despite the fact that the institution of secrecy in law was formed a very long time ago, but so far there are many unresolved issues in this legal field and therefore discussions do not stop. Secrecy is enshrined in all, without exception, the laws of the world. In our country, such a restricted access regime is enshrined in the Constitution [5], and in the future it is detailed in sectoral legislation. Secrecy should be considered as a legal regime for restricting access to a certain type of information, it is this set of legal means that is enshrined in the legislative acts of various countries. Sometimes the names and content of these regimes do not coincide in various national laws, which can be attributed to the legal traditions of individual countries. The ideology spread in individual countries, as well as the economic level of development, played

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an important role in the formation of institutions of secrecy. Despite the numerous differences, no state ignored this area, trying to maintain a balance between human rights and the interests of the state, society, and business. Unfortunately, it should be stated that in the vast majority of scientific studies of secrecy are limited to industry developments. It should be noted that industry studies are overwhelmingly devoted to certain types of secrets, such as state secret, personal secret, bank secret, etc. However, this kind of research focuses solely on a review of industry sources governing this type of secrecy. General theoretical monographic studies of secrecy have not yet been carried out. If we turn to the reference material prepared by the datebase ConsultantPlus [6], we will see a fairly large number of types of secrets that have been enshrined in national legislation. The absence of a generalized general theoretical study of secrecy determines the disunity, and sometimes defective legal regulation of this area. As a result, the effectiveness of the implementation of national legislation on the protection of secrets is also reduced. We will dwell on the classification of the types of secrets that have found their fixation in modern Russian legislation. To begin with, it should be mentioned what classification is. V.N. Sinyukov considers classification as distribution of objects of law by classes (types) depending on certain criteria [7]. The introduction of classification in the legal sphere allows not only to detect and investigate the structural relationships of law, but also to consider the relationship of law with other social phenomena. The basis of any classification is the subdivision of objects into groups (types) based on a common characteristic or a set of characteristics. The choice of such features is arbitrary and depends directly on the subject performing the classification. The main classification of secrets is considered to be their division into personal and professional. Personal secrets usually include personal data, personal and family secret (unfortunately, today this concept is not explicitly defined). Traditionally, professional ones include medical secrecy, secret of confession, banking secrecy, notarial secret and others. As we see, the first species is closely related to the concept of personality. There are a large number of definitions of this concept, but none of them is generally accepted. According to the Dictionary on career guidance and psychological support, personality is mediated as follows: individual as a subject of social relations and conscious activity [8].

4 Discussion The definition of professional secret is located in the Federal Law «On Information, Information Technologies and Information Protection» dated 27.07.2006 No. 149-FZ [9]. According to Clause 5 of Art. 9, professional secrecy is information that is obtained by an individual or legal entity as a result of their implementation of certain types of activities. Activity as a specific type of human activity is divided into practical and aesthetic. In turn, the following activities are distinguished in each of them: communication, play, teaching and work. One of the types of the latter is professional activity. The Great Soviet Encyclopedia states: a profession is an officially indicated occupation, specialty, type of labor activity (occupation) of a person who owns a complex of special theoretical knowledge and practical skills acquired as a result of special training, work experience [10].

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Here the author would like to draw attention to the ratio of such concepts as «profession» and «position». So, the profession should be considered as a kind of labor activity. But the position indicates the official position that the person occupies in the company. For example, medical activity is one of the types of professional activities, but a doctor is a position. In the context of the above qualification, it is most correct to talk about medical secrecy as a type of professional secrecy, and not about medical secrecy. In this context, another type of secret should be mentioned: secrets of confession. In modern realities, this type of secrecy is one of the guarantees of religious freedom. The rule enshrining the rule that the secrecy of confession is protected by law is located in paragraph 7 of Art. Art. 3 of the Federal Law N 125-FZ «On Freedom of Conscience and Religious Associations» [11]. The secret of confession is obliged to keep the clergyman. However, the term «cleric» is not legally defined. In this context, we can recall the Decree of the President of the Russian Federation dated July 12, 2012 No. 969 «On Granting Clergy the Right to Receive a Deferral from Military Service» [12]. Based on its literal interpretation, the following definition can be given: a clergyman is a person who received a spiritual rank (title) and holds a position in a religious organization. The service of a priest in the church is not a type of the labor activity. As for confession, this is one of the church rites. And it turns out that the secret of confession is information that became known to the clergyman during the administration of the church rite – confession. The author also pays attention to. Speaking about the division of secrets into personal and professional, you need to remember the signs that allow you to distinguish these groups (species). If we are talking about professional secrets, then this is information that has become known to third parties, due to the implementation of their professional duties. And if we are talking about personal secrets, then this is information about a specific person, which may become known to other persons at his request or contrary to him. Personal secret, in turn, can be part of a professional secret. As we see in these cases, the difference in the subject possessing this kind of information. As we see, not everything is unequivocal in the field of classification of types of secrecy. In each professional activity, professions are distinguished. So, it turns out that all confidential information obtained by a person as a result of professional activities should be classified as professional secret: medical, psychological, pedagogical, legal, official and other. Unfortunately, the Russian law does not contain the definition of official secrecy. Official secrets can be defined as confidential information that has become known to a person in the state, municipal service. This type of secret can also circulate in commercial organizations where information with the stamp «for official use» is available.

5 Conclusion Based on legal professions, it should be distinguished: lawyer’s secrecy, notarial secrecy, secrecy of the meeting of judges and others. But the secret of the investigation should be attributed to official secrets. This should include the secret of adoption. Confidential information circulation of which is realized in entrepreneurial activity (banking secret, trade secret, insurance secret, etc.), in our opinion, should be attributed to entrepreneurial secret .

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Based on the above, the following classifications of secrecy can be proposed: I. Based on the sphere of human life: personal secrecy, labor secrecy. II. Based on the general division of labor within the entire society: professional secrecy, entrepreneurial secrecy. III. Based on professional activities: medical secrecy, pedagogical secrecy (today the term is not enshrined in the legislation), official secrecy, legal secrecy. Each above group of professional secrets can be divided into types based on the professions grouped in it.

References 1. Bortnikov SP (2020) The state sovereignty in questions of issue of cryptocurrency. In: Ashmarina SI, Vochozka M, Mantulenko VV (eds) ISCDTE 2019, vol 84. LNNS. Springer, Cham, pp 564–573. https://doi.org/10.1007/978-3-030-27015-5_67 2. Bortnikov SP, Khasaev GR (2022) Legal analysis of the institutionality of digital economies. In: Khasaev G, Bolgova V, Bortnikov S, Shul’zhenko Yu, Medentseva Yu. (eds) Economic and legal foundations of innovative development in the digital age, pp 1–15. Nova Science Publisher Inc., New York 3. Avdeeva MV, Pidzhakov AY (2012) «Secret» as a legal concept. Leningrad Law J 4:137–143 4. Permyakov M (2006) Category «secret» in the system of legal regulation: Dissertation. Candidate of Legal Sciences: 12.00.01. Ural Law Institute of the Ministry of Internal Affairs of Russia, Yekaterinburg 5. Constitution of the Russian Federation. http://www.constitution.ru/en/10003000-01.htm. Last accessed 29 Mar 2023 6. ConsultantPlus. http://www.consultant.ru/law/podborki/vidy_tajn/. Last accessed 29 Mar 2023 7. Sinyukov VN (2001) Theory of state and law, 1st edn. Lawyer, Moscow 8. Dictionary on career guidance and psychological support. http://vocabulary.ru/dictionary/27/ word/lichnos. Last accessed 29 Mar 2023 9. Federal Law «On Information, Information Technologies and Information Protection» dated 27.07.2006 No. 149-FZ. https://www.consultant.ru/document/cons_doc_LAW_61798/. Last accessed 29 Mar 2023 10. Great Soviet Encyclopedia: Profession. https://gufo.me/dict/bse/Professi. Last accessed 29 Mar 2023 11. Federal Law «On Freedom of Conscience and Religious Associations» dated 26.09.1997 No. 125-FZ. http://www.consultant.ru/document/cons_doc_LAW_16218/. Last accessed 29 Mar 2023 12. Decree of the President of the Russian Federation dated July 12, 2012 No. 969 «On Granting Clergy the Right to Receive a Deferral from Military Service». https://base.garant.ru/701 99802/. Last accessed 29 Mar 2023

Transformation of Russian Companies: Triggers of 2022 E. A. Kandrashina(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. The contribution investigates events in the Russian economy that occurred in 2022 from the standpoint of their impact on the corporate governance system of Russian companies and the financial system of the country. The transformation of the corporate governance system is considered in the context of agency relations and the life cycle of organizations. In February 2022, the Russian economy as a whole and the financial system in particular found themselves under unprecedented restrictions. The sharp drop in the Russian stock market was the deepest in the recent history of Russia, accompanied by the equally sharp weakening of the national currency and the massive transfer of non-cash money into cash by the population. The research purpose is to consider ongoing changes in the Russian companies and their environment in the new reality using methods of historic analysis, synthesis, generalization. This purpose determined the solutions of the following research tasks: to analyze changes in the corporate governance of companies after 2022, to systemize changes of the financial market and their consequences. Keywords: Agency Relation · Changes · Corporate Governance · Financial System · Restrictions · Transformation of Business

1 Introduction Changes in the macro environment, its socio-political, economic parameters, have a direct impact on the activities of national companies, not only in terms of their ability to create added value and profit, but also in terms of corporate governance. At the same time, the quality of corporate governance is an important factor in the long-term competitiveness of business due to the fact that decisions are made not by corporations, but by people. These are actions of individuals that determine the behavior and actions of organizations [1]. The key characteristics of the corporate governance in Russian companies historically took shape in the 1990s, when the Russian financial system was in its infancy. Among these characteristics, one should be emphasized – a high level of concentration of corporate rights, as well as the merging of managers with owners. In part of the business created on the basis of Soviet enterprises, this is due to the active participation of management in the redistribution of property. And in terms of the new business, this © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 304–309, 2023. https://doi.org/10.1007/978-3-031-38122-5_43

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is due to the desire of the founders to ensure control over the use of invested capital in conditions of a low level of trust in the society in general and in the entrepreneurial activity in particular. The fact of the influence of the level of trust in society on the format of agency relations in business management is reflected in both foreign and domestic studies [2, 3]. At the same time, the level of trust in the Russian society remains at a low level [4].

2 Methodology In the framework of this study, the author used methods analysis of theoretical scientific sources, methods of induction and deduction, statistical and comparative analysis, as well as the method of rationalization. The information and theoretical basis of this research includes legal documents of various levels, scientific papers, reports and estimations of independent researchers. The methodological foundations of this research is formed based on works and concepts by J.A. Schumpeter [5], K. Craik [6], D. Kahneman [7].

3 Changes in the Corporate Governance The key characteristics of the corporate governance of Russian companies that were historically established in the 1990s led to a natural process of its transformation with a significant time lag due to the change of generations of owners. However, the changes in the macro environment that occurred in 2022 had a significant impact on this process, significantly accelerating it and creating new trends. The main changes in the macro environment, which led to the transformation of the corporate governance of Russian companies, are associated with the introduction of anti-Russian sanctions – personal and sectoral ones. Personal sanctions imposed on shareholders and top managers of the largest Russian companies apply to assets owned by sanctioned persons by more than 50%. In order to preserve the operational and financial capabilities of business, the owners affected by the sanctions were forced to reduce their stake in the business to non-controlling (Evraz, Eurochem, Uralchem) and transfer the business management to other parties (Eurochem, Uralchem, Novatek, Phosagro). Another trigger for changes in the corporate governance system was the withdrawal of foreign business from Russia, due to both subjective motives – the risks of reputational losses due to the public pressure in their countries, and objective circumstances – losses due to logistical failures, restrictions on payments, currency fluctuations, exchange rate, as well as the risks of restricting business in relation to the adoption in the Russian Federation of a number of laws restricting the work of foreign companies on the national market. Since the beginning of March 2022, about 3,000 foreign companies have suspended their activities in Russia. Of the 600 largest foreign companies operating in Russia, 34% have restricted their activities in the country. Another 15% decided to leave the Russian market by transferring the business to a new owner, and 7% announced their complete withdrawal without selling the business [8].

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Transactions involving the transfer of business to a new owner can be divided into two main categories: sale to a new investor or management. Thus, the Finnish dairy company «Valio» sold its Russian business to the manufacturer of sausages «Velkom», the Finnish manufacturer of bakery and confectionery products «Fazer» – to the Moscow producer of bread «Kolomensky», the Norwegian chemical company «Jotun», the manufacturer of decorative paints and functional coatings, – to the Ural construction holding «Atomstroycomplex». Manufacturers of building materials Roca Group, Electrolux electrical equipment, Tetra Pak packaging, KONE elevators, Michelin car tyres, Schneider Electric electrical equipment, and Fiskars garden tool factory announced the transfer of Russian assets to local top managers. The situation, when the owners of the company reserve the function of managing the business, «freezes» the company in its life cycle with an unresolved dilemma of the investor [9]. The economic interests of business owners are aimed at obtaining a return on invested capital that is adequate to the level of risk taken. But the interests of an entrepreneur are not always associated with large incomes; non-economic interests, systematized by I. Schumpeter [5], often prevail in his behavior. If an entrepreneur is dominated by non-economic interests, he will not move away from business management, and the investor’s dilemma will remain unresolved.

4 Changes in the Financial System Changes on the financial market are aggravated by the freezing of a significant part of the Bank of Russia’s gold and foreign exchange reserves. This led to the fact that on February 28 the Bank of Russia decided to suspend trading on the Moscow Stock Exchange in the sections of the stock market, futures market, standardized derivative financial instruments. From March 5 to March 8, trading was not conducted in all sections of the Moscow Exchange. On March 9, a phased resumption of trading began. In addition, in order to reduce pressure on the stock market from foreign investors, the Bank of Russia banned Russian brokers from fulfilling orders from foreign clients in terms of selling securities [10]. Accordingly, the share of foreign participants in the stock market fell sharply. Sanctions imposed by the US and the EU on the largest Russian banks have led, among other things, to the blocking of foreign securities purchased by Russian clients in international depositories [11]. As a result, demand for domestic financial instruments has increased. In October 2022, the conditions for such increased demand were institutionalized: by its order, the Bank of Russia limited the sale of securities of issuers from «unfriendly» countries to unqualified investors, and then, from January 1, 2023, it turned the restriction into a ban. The instruction will be valid until October 1, 2023 and will be replaced by the Instruction of the Bank of Russia, which makes the temporary ban permanent [12]. And, as a result of the combination of these two systemic changes, the share of individuals in trading volume has increased dramatically. The share of individuals grew most noticeably in the stock market: if in 2020–2021 it approached 40%, then in 2022 it exceeded 80%. To a large extent, this was due to the mass arrival of individuals on the Russian stock market – the so-called retail investors. If in April 2020 the number of their

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accounts on the Moscow Exchange was about 5 million (of which 13.3% were active), then in November 2022 it was already 37.9 million (of which 60% were active) [13]. It is retail investors that are considered by the state as a potential for ensuring the financial sovereignty of the country and increasing the capitalization of the national financial market. First of all, the calculation is made on a significant increase in investment products by individuals: an increase in the share of savings converted into investments from the current 21% to the target of 36%, together with other measures, should lead to an increase in the capitalization of the stock market from 22% of GDP to 32% [14]. Such a significant change in the subject structure of the national financial market requires issuers and other professional participants in the financial market to significantly adjust the system of relations with investors, in particular, the information policy. Neoclassical economic theory is built in accordance with the idea of the rational behavior of economic entities, regardless of whether they are individual (individuals) or collective (households, organizations, states). Rationality implies that all economic entities have equal access to complete and reliable information necessary for making economic decisions, while all economic entities are typical in their motivation and, accordingly, process information common to all and interpret the results obtained in the same way, obtaining the same assessments of market assets. At the same time, it should be taken into account that even when we are talking about collective economic entities, their behavior is determined by the decisions made by specific people. In turn, psychologists believe that a person’s ability to perceive abstract or complex ideas depends on the presence in the mind of a working model of the phenomenon that he encounters. The first to put forward this thesis was the Scottish psychologist K. Craik [6]. But in order for such a working model to adequately reflect reality, it must be taken into account all the variety of conditions and factors that determine it. In situations characterized by increased complexity (and the current state of the markets is characterized by steadily increasing complexity and uncertainty), people lose the ability to adequately perceive reality and begin to use its simplified models, making judgments based on the limited information available, their own intuition and prevailing stereotypes. D. Kahneman defined such a simplified way of thinking, making decisions as heuristics. The contribution to the irrationality of behavior is also made by psychological factors inherent in the very nature of human [7]. The effects fixed by behavioral economics, which are considered as anomalies from the standpoint of rational behavior, are at the same time patterns of people’s behavior under conditions of uncertainty and explain many facts of the irrational behavior of economic entities, including financial market participants. Accordingly, limited rationality in the use of information by stock market participants, primarily retail investors, must be taken into account when submitting it.

5 Conclusion Thus, the concentrated structure of ownership and management, on the one hand, minimizes the manifestations of agency conflict, but, on the other hand, determines the prevalence of non-economic interests. In turn, the presence on the market of participants with non-economic interests distorts economic incentives and negatively affects the state of competition.

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The events of 2022 acted as triggers for the accelerated transformation of the corporate governance system that has developed in Russian companies. This transformation is associated with the formation of a dispersed capital structure of the company, which implies, as a key step, the transformation of an entrepreneur-owner operating in the markets of goods and services into an entrepreneur-investor operating in the capital market, renunciation of control over one’s own company and transition to its ordinary shareholders with the complete transfer of the company under the control of professional management and setting them as a priority task of increasing the value of the company. Such a transformation should help increase the number of economic agents with a predominance of rational economic interests and improve competition in the markets. In this context, the key component of the information field that affects the capitalization of public companies is the news they announce. And numerous empirical studies show that the announcement of a particular corporate news causes a quite definite reaction of market participants, which is due to a number of factors. Among these factors, the most significant are the following: – type of news (good/bad); – type of event reported in the news; – analytical support of the company’s activities, previous forecasts and recommendations of analysts; – state of the market (recession, rise); – type of shares of the company, etc. Thus, information management becomes an important factor in determining the capitalization of companies in the context of a significant presence in the market of retail investors. As part of this area of work, the managers of the issuing companies are faced with the task of using market patterns and characteristics of human perception to support the growth of the company’s market value, to avoid or mitigate the fall.

References 1. Milgrom P, Roberts J (1992) Economics, organization and management, 1st edn. Pearson, London 2. Hoi Ch-K, Wu Q, Zhang H Does social capital mitigate agency problems? Evidence from Chief Executive Officer (CEO) compensation. Journal of Financial Economics 133(2):498– 519 3. Kupreychenko AB, Mersiyanova IV (eds) (2013) Trust and distrust in the context of the development of civil society, 1st edn. NIU HSE Publishing House, Moscow 4. Sharonov A (2023) The economy of trust: How the caution of citizens affects the development of the country, https://www.forbes.ru/obshchestvo/417375-ekonomika-doveriya-kak-ostoro zhnost-grazhdan-skazyvaetsya-na-razvitii-strany, last accessed: 15 March 2023 5. Schumpeter JA (2008) Capitalism, socialism, and democracy, 3rd edn. Harper Perennial Modern Classics, New York 6. Craik K (1967) The nature of explanation, 1st edn. Cambridge University Press, London 7. Kahneman D (2013) Thinking, fast and slow, 1st edn. Farrar, Straus and Giroux, New York 8. CSR: Picture of foreign business: Leave not stay, https://www.csr.ru/ru/research/kartina-ino strannogo-biznesa-uyti-nelzya-ostatsya/, last accessed: 15 March 2023

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9. Ivashkovskaya IV, Konstantinov GN, Filonovich SR (2004) Formation of a corporation in the context of the life cycle of an organization. Russian Journal of Management 2(4):19–34 10. The Bank of Russia: News, September 6, 2022, https://www.cbr.ru/news/, last accessed: 15 March 2023 11. Vedomosti: Euroclear and Clearstream suspended services to the main depository of the Russian Federation, https://www.vedomosti.ru/finance/articles/2022/03/27/915405-eur oclear-depozitariya, last accessed: 15 March 2023 12. The Bank of Russia: The Bank of Russia extended the ban on the sale of securities of unfriendly countries to unqualified investors, March 24, 2023, https://www.cbr.ru/news/, last accessed: 15 March 2023 13. BCS-Express: 12 major events of the year. What 2022 brought to investors, https://bcs-express. ru/novosti-i-analitika/12-glavnykh-sobytii-goda-chto-prines-investoram-2022, last accessed: 06 April 2023 14. Kommersant: Financial account boost, https://www.kommersant.ru/doc/5902196?utm_sou rce=newspaper&utm_medium=email&utm_campaign=newsletter, last accessed: 06 April 2023

Engineering Education in the Digital Era

Digital Strategies of Organizations of Higher Education E. N. Sheremetyeva1(B) , N. V. Mitropolskaya-Rodionova2 and A. V. Balanovskaya3

,

1 Samara State University of Economics, Samara, Russia

[email protected]

2 Moscow State Institute of International Relations (University) of the Ministry of Foreign

Affairs of the Russian Federation, Moscow, Russia 3 Samara State University of Economics, Samara, Russia

Abstract. The contribution investigates further improvement of the implementation of the digital strategy of higher educational institutions. In the current conditions, under the influence of the external environment from the standpoint of economic, political, scientific, technical and social factors, higher educational organizations are faced with the task of developing and implementing a digital development strategy in a short time. The developed and adopted digital strategies did not fully take into account the general strategic guidelines for the development of all spheres and activity areas of educational organizations. The current level of the digital strategy implementation makes it possible to switch to a systematic system of organizational, managerial development and interaction in order to move to a higher quality level of educational, financial, economic and other activities. In the current period, it is necessary to ensure that the digital strategy is considered as an integral part of the overall development strategy of a higher educational institution and to determine the role of the IT strategy for the implementation of the digital strategy. The authors conduct a study of the role of educational organizations in achieving the goals of the country’s economic development, taking into account the issues of digitalization: determine the sequence of steps for developing an organization’s digital strategy. Some functions of the digital strategy are analyzed, and the main tasks of its individual elements are identified. Particular attention is paid to the issue of organizational development of a digital strategy, the stages and planned results of its implementation. Keywords: Competencies. Development · Digital Strategy · Digitalization · Educational Organization

1 Introduction Modern conditions for the development of the country’s economy require a timely response from the state and course adjustments within the framework of economic policy. The outlook for the transformation of the Russian economy today ranks priority areas in terms of importance and urgency. The transformation of the economy is moving © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 313–319, 2023. https://doi.org/10.1007/978-3-031-38122-5_44

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into an active phase of execution, digital products are being created, platform solutions and end-to-end technologies are being applied, the gap between the traditional approach to informatization and digital transformation is being bridged, the profile of a specialist in the innovative development is changing, the skills of systemic and critical thinking are coming to the fore; ability to solve semi-structured tasks, and possession of digital skills are required. Under these conditions, the branch of science and education is the main development factor in the transition of our society to Industry 4.0. Educational organizations are faced with the task of forming a new system of education, within which citizens will be able to provide the necessary level of literacy for their professional growth. The education system being reformed for the processes of digital development of the economy and society should create conditions for assisting citizens in the formation of digital competencies, achieving the mass digital literacy and the possibility of personalizing the educational trajectory [1]. To solve these problems, a number of projects are being implemented, and by 2024 it is expected to create such an education system that could identify talented young people, especially in the IT field, provide training for highly qualified personnel in demand in Industry 4.0, as well as the widespread implementation of retraining programs and advanced training in narrower professional areas, taking into account the achievements of digitalization. In the implementation of this direction, it is also important that the construction of any digital infrastructure is very closely interconnected with activities based on an innovative approach [2]. The methodological direction of the digital transformation of the field of science and higher education is the transition to data-based management. The transition to datadriven governance is interconnected with the implementation of a number of principles to which they refer. Under these conditions, the strategic management of educational organizations comes to the fore, which will ensure the implementation of advanced decisions and priorities, will allow working «for the future» and realizing long-term goals as part of a comprehensive strategy of these organizations. The development and implementation of a digital strategy for the development of educational institutions will achieve the following strategic goals: development of digital services; data management and quality improvement for decision making; modernization of infrastructure; human resource management. The result of the implementation of digital strategies should be the achievement of digital maturity, both for individual educational organizations and the country’s education system as a whole.

2 Methodology New methods and models of innovative development of educational organizations are emerging, closely related to digital technologies, «super services» and platforms, backed by unique specialists and agile professionals who have managed to quickly change the development vector and optimize the infrastructure of business processes and data under the needs of the time [3]. Digitalization is changing the comprehensive strategy of most educational organizations towards a product approach, which consists in creating the ultimate value for the student, and subsequently the graduate, who is able to ensure the high-quality performance of professional activities important for the digital economy.

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The main methods underlying the study are analytical and descriptive ones. The analysis showed that the personalization of learning and overcoming the digital divide is the main activity vector of educational organizations in the direction of digital transformation [4]. Personalization of learning makes changes to the traditional system of the educational process, ensures the achievement of high results and determines the individual learning trajectory. As a result, the process of accumulation of knowledge takes place; the ability to navigate in a large information flow develops to assess the relevance of knowledge and skills, to adapt to changes in the profession and to acquire new competencies. The current need for specialists with digital competencies requires the creation of conditions for their accelerated training [5]. One of the indicators of the relevance of existing educational programs is the half-life of a competence. At the moment, the processes of half-life of competencies have become extremely intensified, and in the IT technology industry, they are no more than six months. Already, information systems and digital platforms are being introduced and developed that support the personalized organization of the educational process. Modern systems of integrated security of educational organizations are being created. In the conditions of the new way of life, the issue of the formation of new competencies of employees, their training and retraining has become acute. The development of human resources of educational organizations will require systematic work to determine the necessary competencies for scientific and pedagogical personnel, administrative and managerial personnel and students. Digital competencies of scientific and pedagogical personnel and administrative and managerial personnel will allow them to carry out labor activities at the required quality level, taking into account the achievements in the development of digitalization processes in educational, financial, economic and all other types of activities of educational organizations. Digital competencies of students will ensure the competitiveness of graduates of educational organizations in the labor market.

3 Results It is extremely important for educational organizations to determine what goals and objectives should be directed to the process of digitalization of activities within the framework of technological development. The model of technological development horizons assumes the following. The first horizon is called the incremental strategy. To ensure continuous updating of the existing business process management model of the organization and its key competencies, new digital solutions are formulated as incremental. The second horizon is a radical strategy. The existing business model of the organization and its key competencies expand new solutions among new participants in the educational process. The third horizon defines a disruptive strategy. To create new opportunities and confront competitors, new disruptive competencies and types of digital breakthrough in core activities are being created.

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Different strategies require different approaches, evaluation criteria, competencies and business processes. An educational organization develops a digital strategy or its individual elements. The main provisions of the digital strategy are: – definition of goals and objectives of the digital transformation of an organization; – broadcasting the goals, objectives and priorities of digital development to employees of the organization; – implementation of requests for a list of tools for digital transformation; – definition of an action plan to achieve the goals and objectives; – elimination of potential conflicts between digital initiatives and operational activities in the distribution of financial, time and human resources; – formation of the necessary resource support for digital transformation; – building a mechanism for continuous monitoring of the strategy and the application of mechanisms for rapid changes in the organization; – evaluation of results of the fulfillment of the tasks set and the effectiveness of activities of the educational organization for digital transformation. To develop a digital strategy, the following tasks have to be completed: 1. Modification of a management system processes using digital technologies, development of a program to improve decision-making processes. 2. Development of strategic plans and forecasts, analysis of managerial potential, research of new relationships both within the educational industry and beyond. 3. Use of the personnel potential, implementation of targeted employee motivation programs, preservation and development of natural intelligence. 4. Creation of a digital environment and digital skills, identification of professional development trajectories for both employees and students in an educational organization, increasing the involvement of participants in the educational process and willingness to share the values of organizational culture. 5. Creation of effective data management mechanisms, transition to data-based design management. 6. Strengthening the information, financial and intellectual security of an educational organization with the help of digital transformation tools. The development of a digital strategy for an educational organization can be carried out in three stages. At the first stage, the target effect and content of the digital transformation of the organization are determined, the best practices of digital transformation are analyzed and the current state of affairs is assessed, as well as the formation of goals and objectives of the digital transformation for the chosen perspective. At the second stage, a portfolio of projects and a model for managing the digital transformation of an educational organization are formed, various scenarios for a specific organization are developed using innovative digital technologies. Further, the implementation of a plan for the implementation of digital projects is ensured, models for regulating the digital transformation of educational organizations are determined. The third stage provides for the formation of a «road map» of the digital strategy, the rating of digital developments of the «road map», the identification of resources and tools to support the digital transformation of an educational organization. The creation

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of the final version of the digital strategy is accompanied by a wide public discussion with the final decision by the management of the organization. Thus, the development of a digital strategy for an educational organization is an important part of the joint development and decision-making activities for leaders: a common vision of the digital transformation, defining the goals and objectives of the organization. The digital strategy allows you to increase not only the digital literacy of employees and responsibility for the implementation of digital technologies, but also provides an increase in digital competencies for students. It can be noted that the digital transformation of the field of science and higher education ensures the transition to a qualitatively new stage in the development of educational processes, scientific research, the implementation of the social, cultural, scientific and educational mission of modern educational organizations.

4 Discussion The relationship of education, science and business will provide a synergistic effect for the development of society as a whole, because it ensures the consolidation of efforts of the real sector of the regional economies with scientific and educational achievements, which are integrated in the institutional sectors [6]. Contemporary graduates will be forced to rebuild the Russian economy on a fundamentally new basis. Today, there is an active reorientation of the market, there is a development of transport and logistics infrastructure within the Eastern direction (transition «from the West to the East»), which will be about 30.5% by 2025. The economy takes the import substitution direction, which leads to imports from neutral countries, which significantly increases the level of localization for specific industries, as well as the share of the Russian-made goods due to the development of the domestic market. The transformation affects the development of domestic corporate software products and technologies and stimulates the creation of own telecommunications equipment, which will significantly strengthen technological sovereignty. The state stimulates the private investment activity, the creation of special economic zones, individual development programs, strengthens public-private partnerships, provides infrastructure budget loans, and initiates project financing factories. By 2030, the investment growth rate will reach 30% [7]. The integration of the efforts of business and the state makes it possible to accelerate the transformation pace of the economy and the implementation of priority areas for the development of economic tasks [8]. «Business» forms digital strategies for longterm and sustainable development, creates an ecosystem that provides digital support for innovative programs, reveals a strategic vision in which a separate role is assigned to digital technologies, integrates program and operational areas of activity into a single «pool» of tasks. Digitalization is pushing business to new approaches within the framework of strategic management, the existing paradigm of thinking is changing towards long-term forecasting and research of advanced technologies that provide intellectual leadership [9]. The current transformation is moving into strategic innovation, adding an infrastructural digital catalyst to the main block of the strategic vision, which affects the innovation ecosystem and digital products, including monitoring and process management.

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5 Conclusions The state sets the task for educational organizations in a very short time not only to form a digital strategy for development and digital transformation, but to implement it in conditions of limited resources. The result of the implementation of digital strategies should be the achievement of digital maturity, both of individual educational organizations and of the country’s education system as a whole [10, 11]. The development of a digital strategy for an educational organization is an important part of the joint development and decision-making activities for leaders: a common vision of digital transformation, defining the goals and objectives of the organization. The digital strategy allows you to increase the digital literacy of employees, responsibility for the competent implementation of digital technologies, provides an increment in digital competencies for students, determines the transition to a qualitatively new stage in the development of educational processes, scientific research, the implementation of the social, cultural, scientific and educational mission of modern educational organizations. Digitalization is changing the comprehensive strategy of most educational organizations towards an approach to educational service as a product, which consists in creating the ultimate value for the student, and subsequently the graduate, who is able to provide high-quality performance of professional activities important for the digital economy. The integration of the efforts of business and the state makes it possible to accelerate the pace of transformation of the economy and the implementation of priority areas for the development of economic tasks.

References 1. Kenton W (2023) What is strategic management? https://www.investopedia.com/terms/s/str ategic-management.asp, last accessed: 23 March 2023 2. Konstantinova DS, Kudaeva MM (2020) Digital competencies as a basis for the transformation of professional education. Labor Economics 7(11):1055–1072 3. Sheremetyeva EN, Gorshkova LA, Mitropolskaya-Rodionova NV (2021) Management of innovative eco-systems in a digital transformation of the Economy. In: Ashmarina SI, Horák J, Vrbka J, Šuleˇr P (eds) Economic systems in the new era: Stable Systems in an Unstable World, vol 160. Lecture Notes in Networks and System. Springer, Cham, pp 417–423 4. Sheremetyeva EN, Larionov VG, Gorshkova LA (2021) Digital transformation of higher education: Technologies and digital competencies. Bulletin of the Astrakhan State Technical University, Siberian Financial School 2:61 5. Volkodaeva AV, Balanovskaya AV, Chulkov AV (2021) Trends in demand for information technology specialists in the labor market in Russia. Science of Krasnoyarsk 10(3):174–187 6. Kolesnikova YS, Larionova NI, Valeev ER, Frantasov DN (2021) Informatization Impact on Social and Economic Development of the Region. In: Ashmarina SI, Horák J, Vrbka J, Šuleˇr P (eds) IES 2020, vol 160. LNNS. Springer, Cham, pp 840–845. https://doi.org/10.1007/9783-030-60929-0_108 7. On the forecast of the socio-economic development of the Russian Federation for 2023 and the planned period of 2024 and 2025, https://www.economy.gov.ru/material/file/9c4f3a a4a3acd28245705149b85167d1/o_prognoze_socialno_ekonomicheskogo_razvitiya_rf_na_ 2023_god_i_planovyy_period_2024_i_2025_godov.pdf, last accessed: 23 March 2023 8. Kurnysheva IR (2022) Features of structural transformations and new economic reality. Bulletin of the Institute of Economics of the Russian Academy of Sciences 4:128–139

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9. Nurislamov IF, Khakimyanov II, Gareev AI (2021) Influence of digital transformation on the efficiency of oil companies. Innovations and Investments 5:65–68 10. Sheremetyeva EN, Gorshkova LA, Mitropolskaya-Rodionova NV (2022) Digital marketing transformation: Trend and realities. In: Ashmarina SI, Mantulenko VV (eds.), Digital Technologies in the New Socio-Economic Reality. ISCDTE 2021. Lecture Notes in Networks and Systems, vol. 304, pp. 497–504. Springer, Cham 11. Volkodaeva AV, Balanovskaya AV, Rustenova EA (2022) Trends in information and communication technologies development in the context of economy digitalization. In: Ashmarina SI, Mantulenko VV (eds.), Digital Technologies in the New Socio-Economic Reality. ISCDTE 2021. Lecture Notes in Networks and Systems, vol. 304, pp. 583–592. Springer, Cham

Immersive Learning Methods and Their Impact on the Perception of Learning Material K. A. Arzhanova(B)

, D. V. Dolgopolov , and V. S. Starostin

State University of Management, Moscow, Russia {ka_arzhanova,dv_dolgopolov,vs_starostin}@guu.ru

Abstract. The contribution discusses immersive teaching methods used in the engineering education, such as VR technologies, the video game mechanics for learning purposes (Minecraft, etc.), interactive online whiteboards (Miro, etc.). This study has the theoretical significance due to the exploring the effectiveness and significance of immersive teaching methods in modern engineering education based on existing data and materials, as well as ways to adapt effective methods to Russian reality. The use of VR technologies, video game learning mechanics and interactive online whiteboards in the framework of engineering education is not sufficiently covered in the scientific field as we see it. This study determines the features of the immersive teaching methods in education and their impact on the perception of educational material that applies to its practical significance. Also, the study concerns the answer of how to apply them in the framework of training engineers. Some universities are beginning to introduce these methods into their educational programs, but stumble upon the certain difficulties within this implication. This study will allow universities to introduce best practices into their curricula and improve the immersive methods in the educational process. This will give universities the opportunity to remain competitive in the development of new technologies. The research methodology was based on a meta-analysis of the main semantic and statistical studies on the selected topic. The secondary studies’ results were combined by quantitative assessment methods. Published (secondary) research results on the problem of using immersive methods in engineering education are summarized. Keywords: Design Thinking · Educational Games · E-Learning · Immersive Education · Immersive Technologies · Interactive Whiteboards · Virtual Reality

1 Introduction The modern education development is actively transforming. This statement applies to various areas, including engineering education. The specialists’ training in this field requires certain improvements which are associated with the technological development of engineering specialties and professions. It becomes insufficient to educate students using accepted tools. Chalk, the usual wall board, paper drawings and diagrams are being replaced by modern teaching methods and digital technologies. These tools include VR technologies, video game teaching and interactive online whiteboards. Technical and © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 320–329, 2023. https://doi.org/10.1007/978-3-031-38122-5_45

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methodological tools’ changes are necessary for the learning process to be as effective as possible in terms of student involvement. It is necessary to introduce modern technologies that allow to sufficiently improve the students’ perception. Engineering sciences are specifically important as a science field as they have the need to apply the acquired knowledge to specific mechanisms and equipment that should be acquainted within the walls of the university. VR technologies imply complete student immersion in the learning process. Engineering education is practice-oriented, so that is the ideal field for introducing VR into the educational process. Video game mechanics are often aimed at understanding the algorithmic sequence of actions, which is necessary for the engineering thinking that is also an important training component for specialists in this field. Finally, interactive online whiteboards provide opportunities for teaching soft skills – teamwork, systematization and analysis of available information, finding the best solution among many options. In this work, the authors explore the features of immersive teaching methods in education and their impact on the perception of educational material. This study has the theoretical significance due to the exploring the effectiveness and significance of immersive teaching methods in modern engineering education based on existing data and materials, as well as ways to adapt effective methods to Russian reality. The use of VR technologies, video game learning mechanics and interactive online whiteboards in the framework of engineering education is not sufficiently covered in the scientific field as we see it. This study determines the features of the immersive teaching methods in education and their impact on the perception of educational material that applies to its practical significance. Also, the study concerns the answer of how to apply them in the framework of training engineers. Some universities are beginning to introduce these methods into their educational programs, but stumble upon the certain difficulties within this implication. This study will allow universities to introduce best practices into their curricula and improve the immersive methods in the educational process. This will give universities the opportunity to remain competitive in the development of new technologies. The purpose of the study: to identify the effectiveness and prospects for the immersive methods in engineering education. The research tasks include: to interpret the basic concepts of the study; to determine the relevant research method and methodology; to describe popular immersive methods in the framework of engineering education: VR technologies, the use of educational games (Minecraft, etc.), interactive online whiteboards (Miro, etc.); and to formulate recommendations for universities on the introduction of immersive methods in the educational process.

2 Methodology The methodological approaches analysis to determine the effectiveness of educational methods is a rather difficult and complex task due to the defining complexity of “education quality effectiveness”. In this case, we can actually rely only on the subjective students’ opinions that provide feedback as part of the learning process, as well as on the major statistical studies’ results related to basic socio-economic indicators – the degree of graduates’ employment, the number of students’ publications in the learning process,

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the success of educational institutions in as part of grant or competitive applications, etc. In this regard, we consider that the methods described above must be evaluated on the principles of how effective they are included in the educational environment and whether they create a continuous immersive educational environment for students. Such studies were carried out, in particular, by O.M. Sokolyuk [1], S.O. Semerikov, V.V. Osadchyi, O.H. Kuzminska [2] and others. It should also be noted that methodologically, our study touches upon the elements of teaching engineering thinking and training future engineers to perform applied tasks within the framework of basic theoretical approaches in physics, chemistry, mathematics and other natural sciences. Thus, we must elaborate upon the issue of teaching design thinking, which is the main element for the future engineer to grow in his competence field. This approach in the context of the specialists’ training was carried out by various researchers [3–8]. An integral part of this study considers direct tools for increasing immersion and student involvement in the educational process, which we identified in the introduction to this work. A lot of researchers are studying VR technologies, their use in the educational process, identifying their specific features [9, 10], the use of educational games in the learning process [8, 11–14]. The application of interactive online whiteboards as part of the educational process is also considered in the contemporary research [15, 16]. The research methodology was based on a meta-analysis of the main semantic and statistical studies on the selected topic. The secondary studies’ results were combined by quantitative assessment methods. Published (secondary) research results on the problem of using immersive methods in engineering education are summarized.

3 Results VR technology is a computer simulation system that creates a new 3D world. It includes computer modeling, computer graphics, artificial intelligence, network parallelism technology, multimedia technology and sensing technology [9]. Interaction with the virtual environment occurs with the help of immersive devices, such as a virtual reality helmet, pens, gloves, costumes, etc. As a result, the user of VR technology can control and work with objects in the virtual environment. The popularity of this technology was largely associated with its promotion in computer and video games. However, some specialties have been actively using this tool in their training for a long time (for example, civil aviation pilot training). Also in 1992, the first VR educational technology was created at The Karolinska Institute. As part of this work, the effective teaching in medicine using VR was demonstrated, that is, educational institutions have been studying the possibilities of this tool for about 30 years. Also, some universities have successfully introduced virtual reality tools into their educational process. The University of Nottingham conducted a series of studies on the application of VR as part of the activities of the School of Mechanical Engineering, Materials, Industrial Engineering and Management [10] that demonstrated the high effectiveness of virtual reality tools in studying the complex nodal mechanisms for engineer students. However, the technology effectiveness is not limited only by its practical application – VR is able to motivate students to better study and consolidate the material. Wirth,

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W. et al. conducted a study in which the value of VR was determined in understanding complex theoretical provisions. They created a model demonstrating that VR is effective as a tool for the theoretical knowledge consolidation, which was based on research studying the perception of VR technologies among adolescents during training [17]. Thus, VR is not only in line with the future development direction of engineering education, but can also meet the many needs of teachers and students [18]. Thus, despite the seeming limited means of virtual reality, which is usually presented as a way to consolidate basic competencies in knowledge of the basic mechanisms and systems, we can also see the effective use of this tool in teaching theoretical material and creating virtual environments for self-study by schoolchildren and students of complex theoretical provisions in the natural science fields. The following immersive method is the video game mechanics to increase the students’ involvement. J. Juul described the game as a process to which the player connects emotionally in order to achieve a goal, a system with certain rules, and where the end result can be measured [11]. In this context, the idea of video game mechanics as a way to measure the results when students achieve specific goals, as well as reflection on how to achieve it, is very suitable for our study. In general, the educational process gamification is one of the most promising and interesting tool that can be used to improve its effectiveness. S. AlJanah, P.S. Teh, J.Y. Tay, O. Aiyenitaju, and R. Nawaz conducted a study in which a group of university students took part in an experiment where the task was to teach them the basics of programming using the Python programming language [14]. The results of the study showed that the participants in the experiment, for the most part, were satisfied with this teaching method. What proved the increase in the effectiveness of the perceived material in the framework of including online learning. One of the most popular video games actively used in the educational process is Microsoft Minecraft Education Edition (MC: EE). This game was created as a simulation game in which a 3D world could be created and interacted with [13]. Initially, the game was not intended to be introduced into the educational process. Its advantages were that it used entertainment, creativity, social media skills, communication and engineering in one shell. As an example, the square blocks were used to improve spatial skills [8]. The video games’ development as an educational platform has made it possible to find a huge number of applications for simple gameplay in engineering processes, such as teaching physics, chemistry, mathematics, basic engineering and design thinking. In general, MC: EE is the common textbook example that demonstrates the introduction of immersive mechanics for the early stages of the learning process – for example, in elementary or high school. However, when we talk about higher levels of education, the issue of using serious games, that is, games created by students on their own or together with curators as a project task, is increasingly raised [12]. The approach to serious games within the educational process framework logically expands the video game mechanics introduction to the classroom – engineering education, as mentioned earlier, also develops a certain type of thinking for students, which is based on the principles of solving structural complex problems in creative ways. Serious games are used not only for entertainment, but also for learning and solving practical applied problems by users [6]. Thus, it can be noted

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that it is video game mechanics within serious games that contribute to the formation of engineering or design thinking for the student. At the same time, the formation of such thinking in the effective way allows us to solve the dilemma we have already identified – the student simultaneously dwells inside a virtual environment that “forgives” mistakes (incorrectly connected parts of the mechanism, incorrectly assembled structure) and allows reflection, but also gets acquainted with new technologies inside his professional field of competence. It should be noted that some authors, such as M.N. Koroglu and B. Yildiz, believe that from this point of view, the game Minecraft, created for entertainment, can also be considered a serious game if used as a tool for solving problems in the field of design thinking and mathematical education [8]. We are not inclined to fully agree with this position; however, we can assume that many Minecraft game mechanics served as the basis for the modern landscape of serious games and the popularization of this tool among various competence areas in engineering education. As part of higher education, it is necessary to use interactive technologies that promote visibility, interactivity, accessibility of quick feedback and work in one virtual space, that is, for example, interactive online whiteboards. These include: Miro, LiveBoard, Microsoft Whiteboard, CleverMaths, IDroo, Drawchat, Jamboard, Scribblar, Classroomscreen, and Twiddla. A large number of different software makes it possible to use online boards taking into account the specifics of competency-based learning requirements. For example, CleverMaths has the most suitable functionality among all platforms for teaching mathematics, while LiveBoard or Miro are more versatile products that are used in many areas of training. One of the main positive features of universal interactive whiteboards is, according to researchers, its compliance with the logic of the “learning curve” [15]. Gradual involvement is ensured by the fact that students independently learn the platform, moving from simple functions to complex ones, thus creating additional opportunities for intergroup communication and learning within the student group without the help of a teacher. This thesis is also confirmed by the research that studied the Japanese students’ interaction during the vid19 pandemic, when intergroup classes were more effective when using virtual whiteboards, as students tended to support and teach each other the functionality, as well as clarify the material in intergroup and intragroup discussion [19]. Interactive online whiteboards in the educational process must be accompanied by training for the teachers themselves to use them. These learning courses for the teachers should be conducted during working hours taking into account the specifics of the disciplines taught [16]. It can be noted that the necessity to train teachers in the using new immersive tools competencies arose largely due to restrictions during the pandemic restrictions, and virtual whiteboards were largely a tool to replace contact learning, but became part of the hybrid environment, including in the context of student self-learning due to the effect “learning curve” [20]. Based on these features, we can say that virtual whiteboards have a more pronounced instrumental interaction component, which eventually grew into a reflective one due to the internal self-learning capabilities of students based on this software. However, within the framework of engineering education, it is rather difficult to single out the specific advantages of this particular tool. The above researchers rather consider this tool in terms of supporting the basic “soft skills”, and

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not as a way to implement design thinking or teaching the necessary software solutions in their area of competence. As a result of the study, the effectiveness and prospects of using immersive methods in engineering education were proved. Popular immersive methods within the framework of engineering education were described: VR technologies, the use of educational games (Minecraft, etc.), interactive online whiteboards (Miro, etc.). Based on the study, recommendations were formulated for universities on the immersive methods introduction in the educational process: – it is necessary to determine how effective the described tools are used in the educational field by conducting research among students, as well as rely on the results of major statistical studies on basic socio-economic indicators (the degree of employment of graduates, the number of publications of students in the learning process, the success of educational institutions in grant or competitive applications, etc.); – mistakes by learners are part of the learning process in an immersive environment, students can make them, and teachers should empower them to correct them, as an immersive learning environment creates opportunities for learning through experience in a “safe learning environment” (no consequences if making a mistake), reflecting on the experience gained and self-awareness of the acquired competencies; – in the case of engineering education, it is necessary to maintain a complex parity: the student needs to understand the basics and operational principles of the mechanisms/theories/phenomena studied in the classroom, as well as the ability to reproduce these principles (that is, in other words, the acquisition of engineering thinking), and on the other hand, the student needs to get acquainted with modern developments in the field of the studied competencies. Reflective and instrumental approaches are the basis for understanding the introduction of certain immersion tools for the educational process; – the new tools introduction should be combined with the competence growth for the future specialist, as well as serve for student involvement in the process not only through entertainment, but also by creating additional conditions for self-learning; – it is necessary to train teachers in the use of new immersive tools, such as interactive online whiteboards, that should be conducted during working hours taking into account the specifics of the disciplines taught.

4 Discussion At the beginning of the study, it is necessary to interpret the basic concepts that are inextricably linked with the concept of “immersion”. This definition is interpreted in various studies from different methodological approaches. The concept of immersion itself is used in various contexts, in particular, in the context of “diving”, deep involvement in certain activities. The position of O.M. Sokolyuk is quite interesting. The researcher offers several interpretations for this concept: – a group of teaching methods based on the unity of consciousness and subconsciousness, two-way communication in the learning process, relaxation;

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– a set of sensations of a person who is in an artificially created three-dimensional world, in which he can change his point of view, zoom in and out of objects, etc.; – creating the effect of “presence” due to the totality of sensations of a person in an artificial environment [1]. Due to our research specifics, we can single out the second approach as the most preferable for engineering education, since such a definition has, first of all, a utilitarian structure that allows working with immersion as a functional concept that involves the student’s involvement through sensory experience. In this context, there is also a need for a clearer definition of immersive education and the environment in which such an involvement takes place. O.M. Sokolyuk understands an immersive educational environment as such a property of the environment that reflects its ability to involve the subject in a relations’ system that is determined by its content [1]. In this case, the idea of not just immersion, but self-awareness of oneself as a part of the educational environment, is put forward in the first place, which allows the student to become a full participant in the educational process along with a teacher or tutor. Thus, it can be noted that an immersive educational environment can be interpreted as the one that creates opportunities for learning through gaining experience in a “safe learning environment” (without consequences in case of making a mistake), reflecting on the gained experience and the acquired competencies’ self-awareness. Since we mentioned reflection and the acquisition of engineering thinking skills, we cannot omit the concept of design thinking (Design Thinking – DT). This concept appeared in the first place as a description for the innovative activity type, and then were to be implied in education. This is an approach, in which creative ideas are used to solve problems or improve existing solutions using technological means [3]. In other words, one can partially equate design thinking with the idea of understanding the internal principles and organizational mechanisms in engineering sciences that allow solving complex objectives through available means. Reflection and engineering thinking as one of the core competencies are inseparably linked to the development of design thinking. The idea mentioned above is confirmed by many works – in particular, it is noted that design thinking is a thinking model that contributes to the acquisition of the necessary skills for the students in XXI century [4]. This approach, according to teachers, helps to develop consistency and creativity in students and acquire the necessary skills for XXI century [5]. There are some works that devoted to the disclosure and a more complete description of design thinking as an integral part for the majority of educational processes, not only in engineering education. The Harvard University Teaching and Learning Lab described DT as a mindset and approach to learning, collaboration, and problem solving, as well as a framework for identifying problems, gathering information, generating potential solutions, developing ideas, and testing solutions (HGSE Teaching and Learning Lab – TLL). Thus, we can directly connect the concept of reflection and self-learning in the training for future engineers through immersive methods with the idea to introduce design thinking as one of the most important components and tangible results for immersive learning methods. A slightly different approach is offered by S.O. Semerikov, V.V. Osadchyi, and O.H. Kuzminska [2]. They describe immersive educational environments, which are

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subdivided according to the types of immersion into psychological (suggesting a fullfledged experience within a virtual environment), physical (suggesting an experience in the physical world) and environments with variable realism (partial and full immersion in a virtual environment). They also conducted a study that identified the necessary e-learning resources, such as educational, scientific, informational, reference materials and tools that are developed electronically, used in immersive environments, reproduced using immersive tools and are necessary for the effective organization of the educational process in terms of filling it with high-quality educational materials [2]. Various types of widely available immersive educational materials allow to develop an immersive educational environment not only in terms of complete replacement, but also the addition of physical learning objects with elements of virtual reality or other means of interaction between a teacher and a student. It can be noted that in this case the immersive educational environment is interpreted from a more instrumental, pragmatic point of view. It implies the large amount of educational, didactic and illustrative materials that allow the teacher and student to interact. In this approach, the process of learning and reflection of the student is not considered in the first place, it is a set of didactic units that are necessary in order to teach a particular student a particular competence necessary for the implementation of the curriculum. These two approaches – reflective and instrumental – are the basis for understanding how to introduce certain immersion tools for the educational process. In the case of engineering education, it is necessary to observe a complex parity. On the one hand, the student needs to understand the basics and operational principles of the mechanisms/theories /phenomena studied in the classroom, as well as the ability to reproduce these principles (that is, in other words, the acquisition of engineering thinking). On the other hand, the student needs to get acquainted with modern developments in the field of studied competencies. Nowadays it is difficult to imagine a good architect who does not know the basics of AutoCAD, a design engineer who can’t work in 3DMax, or a good mathematician who can’t operate MatLab. Thus, the introduction of new tools should be combined with the future specialist’s competence growth, as well as serve the selflearning principles and student involvement in the process not only by the entertainment means, but also by creating additional conditions for self-learning. From this point of view, we need to consider three basic tools that are often mentioned in the academic literature as an effective way to create an immersive environment in modern educational institutions.

5 Conclusion Several important theses can be noted related to the introduction of immersive teaching methods in engineering education and increasing the effective students’ involvement in the educational process. First, there are two main approaches to the formation of an immersive educational environment – we have designated them as “reflective” and “instrumental”. The first is related to immersing the student in a virtual environment that is safe for making mistakes and providing opportunities for reflection on mistakes and learning opportunities for students to find the right solution to the applied problem. The second is the provision of

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tools for studying modern software that meets the need to develop the competencies and students’ applied skills in his professional field. Each of these approaches has its own strengths and weaknesses, and, in our opinion, it is the parity of these two approaches that allows us to talk about the effective introduction of the immersive and innovative methods into the learning process. Secondly, each of the immersive learning technologies identified in the introduction has a different degree of compliance with the above parity. In the case of VR, we see a high need for this tool in the engineering specialties so it can be used to study complex mechanisms or theoretical concepts in the virtual space. You can also note the need to use VR for some areas of competence for future engineers – the implementation of professional solutions in the virtual space is an integral part of modern engineering design. Thus, we can distinguish both a reflective and an instrumental component. For video game mechanics we can conclude that it, first of all, creates a “safe” virtual environment and fully implements the design thinking, especially in terms of using serious games as educational material created by the students themselves as an educational project. The need to use these mechanics in everyday professional activities is rather doubtful, we were not able to find enough demonstrative studies that would describe the visual use of these mechanics outside the military-industrial complex. That is, we can define video game mechanics as a predominantly reflective tool for involving students in the educational process. Finally, virtual whiteboards as an immersive learning tool are more focused on creating competencies in the field of soft skills – teamwork, the implementation of the “learning curve”, the ability to work with data visualization software. In this context, we cannot single out a reflective or instrumental component for engineering specialties, which is most likely why virtual whiteboards are more universal means for supporting students in the events of creating remote or hybrid educational environment.

References 1. Sokolyuk OM (2021) Immersion in modern educational environments. In: Bykov VY, Vakaliuk TA (eds) “Immersive technologies in education”: the collection of materials of the I scientific and practical conference with international participation. Institute of Information Technologies and Learning Tools of NAES of Ukraine, Kiev, pp 143–148 (2021) 2. Semerikov SO, Osadchyi VV, Kuzminska OH (2021) 1st symposium on advances in educational technology: outlook. Educ Technol Q 2021(4):429–604 3. Brown T (2008) Design thinking. Harv Bus Rev 86(6):84–92 4. Li Y et al (2019) Design and design thinking in STEM education. J STEMEduc Res 2(2):93– 104 5. Salen K (2007) Gaming literacies: a game design study in action. J Educ Multimed Hypermed 16(3):301–322 6. Susi T, Johannesson M, Backlund P (2007) Serious games: an overview, from https://www. diva-portal.org/smash/get/diva2:2416/FULLTEXT01.pdf. Last accessed 3 Apr 2023 7. Michael D, ve Chen S (2006) Serious games: games that educate, train, and inform, 1st edn. Thomson Course Technology, Boston 8. Koroglu MN, Yildiz B (2021) Design thinking in mathematics education: the minecraft case. Technol Innovation and Special Education Research 1(2):150–179

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9. Burdea GC, Coiffet P (2003) Virtual reality technology. Presence Teleop Virt Environ 12: 663–664 10. Freina L, Ott M (2015) A literature review on immersive virtual reality in education: State of the art and perspectives. In: Proceedings of eLearning and software for education (eLSE), Bucharest, Romania, 23–24 Apr 2015, vol 1, pp 133–141. eLSE Conference, Bucharest 11. Juul J (2003) The game, the player, the world: Looking for a heart of gameness. In: Copier M (ed) Level up: digital games research conference proceedings. Utrecht University, Utrecht, pp 30–45 12. Kafai YB, Burke Q (2015) Constructionist gaming: understanding the benefits of making games for learning. Educ Psychol 50(4):313–334 13. Ekaputra G, Lim C (2013) Eng KI Minecraft: a game as an education and scientific learning tool. https://si.its.ac.id/pubs/oajis/index.php/home/detail/1219/Minecraft-A-Gameas-an-Education-and-Scientific-Learning-Tool. Last accessed 3 Apr 2023 14. AlJanah S, Teh PS, Tay JY, Aiyenitaju O, Nawaz R (2023) Minecraft as a tool to enhance engagement in higher education. In: Visvizi A, Troisi O, Grimaldi M (eds) Research and innovation forum 2022, Springer proceedings in complexity. Springer, Cham, pp 465–476 15. Chan TACH, Ho JM-B, Tom M (2023) Miro: promoting collaboration through online whiteboard interaction. RELC https://doi.org/10.1177/00336882231165061. Last accessed 3 Apr 2023 16. Kutluca T, Yalman M, Tum A (2019) Use of interactive whiteboard in teaching mathematics for sustainability and its effect on the role of teacher. Discourse Commun Sustain Educ 10:113–132 17. Wirth W et al (2007) A process model of the formation of spatial presence experiences. Media Psychol 9(3):493–525 18. Yunmeng H (2023) Virtual reality in engineering education. In: Rak J (ed) International conference on educational science and social culture (ESSC 2022), SHS web of conferences, vol 157, 02001. EDP Science, Les Ulis 19. Loh L, Ogo M, Zhang Y, Takano N, Shimomura M (2022) Readjusting design education for Japanese high school students during the Covid-19 pandemic: a case study to investigate students’ attitude in using online whiteboard for group discussions during design activities. In: Bruyns G, Wei H (eds) With design: reinventing design modes. Springer, Singapore, pp 1527–1545 20. Freitag N, Serafin A, Schmidt S (2022) Learning analytics dashboards for online collaboration whiteboards: feasibility check of an activity dashboard to support the evaluation of student activity within Miro. Int J Manag Knowl Learn 11(2022):207–214

The Cognitive Approach to the System of Engineering Education Under Digitalization T. V. Goryacheva1

, E. V. Volkodavova2(B)

, and A. P. Zhabin2

1 Yuri Gagarin State Technical University of Saratov, Saratov, Russia 2 Samara State University of Economics, Samara, Russia

[email protected]

Abstract. The relevance of engineering education as a factor ensuring the sustainability of Russian industrial production is due to the level of the system development which depends on the understanding and updating of the strategy for pursuing a balanced industrial policy. The contribution deals with the problems that can be solved by combining the factors of engineering education based on the cognitive approach. The authors considered the system evolution of engineering education in Russia and strategic guidelines to accumulate knowledge by engineers. Education is one of the prerequisites for achieving the sustainable development, and it is also a tool for effective management. As a methodological basis for the study, the authors used such general scientific methods as system analysis, synthesis, abstraction and analogy, generalization and classification. As a result, the authors concluded that to ensure the socio-economic sustainable development of the Russian Federation, we need transformations and changes in approaches when training engineers. In the work, the authors identified the key areas that can set a new vector for the educational development: the revival and development of the integrated learning system that ensures partnerships between universities and business community; advantages and disadvantages of the cognitive approach in engineering education; a cognitive mind map of the student-engineer’s under digitalization. Keywords: Cognitive Approach · Digitalization · Engineering Education · Industrial Production · Mind Map

1 Introduction The sanctions policy of the Collective West countries, the pandemic, the attempts to isolate Russia have once again demonstrated the importance and necessity of pursuing a balanced industrial policy to ensure Russia’s sustainable socio-economic development. Currently, Russian industrial production is mainly focused on large and backbone enterprises that are not able to change quickly under the influence of environmental factors. But the rapid development of digital technologies, the increasing information and logistical accessibility in the modern world determine the need for dynamic changes in the structure and content of industrial production and systems that support it, as well as © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 330–339, 2023. https://doi.org/10.1007/978-3-031-38122-5_46

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the reorientation of political and technological elites and the structure of education and training. These changes cannot be achieved without specialist engineers who are able to create equipment and technologies that meet the world level of competitiveness. That is why Russia needs to radically change the system of engineering education, develop new competencies among future engineers, and increase the number of graduates in the field of production. Now there is a situation when the country lacks qualified engineers. The shortage of engineering staff at large facilities that are being built in Russia ranges from 30 to 50% [1]. Separate measures to address this issue are already being implemented. Back in 2016, President of Russia V. Putin noted in his message to the Federal Assembly that the country needs qualified personnel, engineers, workers who are ready to perform tasks of a new level [2]. The program «Digital Economy of the Russian Federation», developed for the period 2019–2024 [3], focuses on the need to modernize the education system, which will provide the digital economy with competent personnel. But fundamentally, the situation has changed little so far. In 2022, the Ministry of Education and Science of the Russian Federation reported that there were 10.5 thousand unfilled budget places in universities. Most of the places were in engineering and technical areas. In many respects, it is so because engineering professions are not in demand among young people, the prestige of the engineering profession is low. Only the development of engineering education and its popularization will make it possible to radically improve this situation. Research in this area shows that the rapid digital transformation of all spheres of society and the introduction of new technologies determine the need to change guidelines, approaches and training of engineers [4, 5]. Their educational process should not be aimed at memorizing information. They should develop independent skills, cognitive and vigorous activity. Discussions, research, that is, practice-oriented learning using cognitive-pragmatic technologies, come to the fore [4, 6–9]. Cognitive technologies as an independent field of scientific knowledge are the result of applied research. They touch upon and combine the tools and methods of psychology, psycholinguistics, knowledge engineering, and pedagogical design. The interdisciplinary nature of cognitive technologies determines the ambiguity and complexity of their essence and conceptual apparatus [8–10]. The progressive development of cognitive pedagogy has determined the stages of formation and development of views, ideas about the essence, characteristics and purpose of cognitive technologies. The most complete variety of views and positions on cognitive technologies is presented in the monograph [11]. The psychological side of cognitive technologies is described by J.R. Andersen [12], G.A. Miller [13], D. Gentner [14]. In recent works, special attention is paid to the prospects and application of cognitive educational technologies when training specialists in technical areas [5, 10, 15, 16]. Another direction of updating the goals and objectives of engineering education, the development of its target mechanisms, will be adaptation to the digital environment as a natural necessity. From these positions, the theoretical and practice-oriented foundations of engineering training of specialists under digitalization necessitate the deepening of methodological and organizational foundations to develop the educational process in technical universities.

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2 Methodology A retrospective analysis of the formation and further development of engineering education in Russia showed that Peter the Great started it in the 18th century. The significant progress in this area of education was made at the beginning of the 19th century (Table 1). Table 1. Development of engineering education in Russia. Period

Description of stages

1701

Peter the Great organized the School of Mathematical and Navigational Sciences in Moscow

1809

Emperor Alexander I founded the Corps and the Institute of Railway Engineers. It was the beginning of the modern history of the Russian engineering school

Mid XIX century

In 1868, the Imperial Moscow Technical School received the status of a higher specialized institution. Based on the institution, a world-famous training method called «Russian method of training engineers» was developed and implemented

Late XIX century

New educational institutions of polytechnic type were opened in several cities: Warsaw, Kyiv, St. Petersburg and Novocherkassk. The Russian system of higher technical education at that time significantly surpassed the German and French ones in terms of quality of training, which was achieved through a targeted state policy and significant investments in the field of engineering education

1930s

There was the dissolution of old institutions, the creation of sectoral educational institutions on their bases. Branch institutions were directed to mass training of highly specialized specialists in short programs. A large-scale experiment was carried out to introduce a narrow specialization in training of engineers. Over time, this approach illustrated a lot of shortcomings

March 10, 1946

The Higher Physical and Technical School was created in the USSR. Its activities involved training of specialists in nuclear physics, combustion and explosion, low temperatures, radio-physics, optics, thermodynamics

40–80s XX century The railway industry, nuclear and rocket and space industries were developed. The development of the planned «knowledge economy» was based on achievements of fundamental science. Technical universities provided fundamental training in higher mathematics and general physics 1991–2000

Education and industry in Russia were a multitude of industrial enterprises, universities, research institutes that were individually integrated into the industrial, scientific and educational world innovation system, independent of each other

Early 2000s

The Russian economy moved to the innovative type. 29 national research universities were opened and focused on training of engineering personnel (continued)

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Table 1. (continued) Period

Description of stages

December 2016

The Strategy for Scientific and Technological Development of the Russian Federation was adopted. There was a direction to increase the prestige of engineering professions

2022

There was a priority direction to develop engineering sciences and cut off the technological sovereignty of Russia

Source: authors

Today the situation in the system of engineering education is ambiguous. Basically, engineers are trained by theoretical teachers who did not work under economic contracts with industrial enterprises in the last 10–20 years. Therefore, they can only transfer knowledge about traditional approaches and methods [17]. Another aspect of training of specialist engineers is that science-intensive multidisciplinary technologies are developing and updating faster than the traditional educational cycle of engineer training lasts. At the same time, the situation is aggravated by high competition of the digital transformation in all spheres of society. A. Borovkov [17], Vice-Rector for Digital Transformation of Peter the Great St. Petersburg Polytechnic University, notes that domestic engineering education actually has a three-level structure: engineers for the operation of high-tech equipment (about 25%), «traditional» engineers – designers, calculators, technologists, programmers, economists (about 70%) and engineers with world-class competencies, engineers of a new generation – super-engineers, «engineering special forces» (about 5%). At the same time, «traditional» engineers are beginning to experience competition from operational engineers «highly qualified specialists in cross-cutting workers and engineering professions» [17]. At the same time, almost 30% of graduates of the enlarged training group «engineering, technology and technical sciences» do not work in their specialty (Table 2). The release of skilled workers, employees in the fields of education and certain enlarged groups of professions, for the period under review decreased by 33.8 thousand people (from 139.700 people in 2016 to 105.900 in 2021) (Fig. 1). The main reasons for the decline in demand for training in engineering professions for the period 2016–2021 were the following: – – – –

lack of practical skills of work in the specialty during employment; low level of wages of a larger share of engineering workers; overestimated biased requirements of graduates-engineers in job search; lack or non-compliance of competencies of young specialists with requirements of employers; – difficulties in finding a job in the acquired specialty.

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Table 2. Compliance of the work profile of employed graduates with the specialty received in the educational institution of higher education for the period 2018–2020. Specialty

Total

including in relation to work with acquired profession, % connected

not connected

Total

1691,6

74

26

Photonics, instrument making, optical and biotechnical systems and technologies

7,8

62

38

Control in technical systems

12,1

63

37

Technique and construction technology

44,1

66

34

Mechanical engineering

53,5

69

31

Aviation and rocket and space technology

5,8

69

31

Mathematics and mechanics

25,7

70

30

Materials technology

8,1

70

30

Technique and technology of land transport

29,6

74

26

Electronics, radio engineering and communication systems

18,7

75

25

Engineering and technology of shipbuilding and water transport

7,7

76

24

Source: authors based on [18]

Fig. 1. Release of skilled workers, employees in the areas of education and certain enlarged groups of professions, thousand people (Source: authors).

3 Results Currently, like all other areas of social activity, education is undergoing a transition from the industrial model to the information one. This is accompanied by several contradictory processes and transitions: from unnecessary memorization of a lot of facts

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to learning cognitive methods based on the search, systematization, analysis, comparison, generalization and synthesis of new knowledge and skills. All this determines the need for the transition to knowledge society to create such a system of higher education, where cognitive skills will be taught and developed on a large scale, which are now owned only by professional scientific researchers. Meta-technologies of education should become mass-produced, when every educated person owns the methods, skills of research, generalization, and synthesis. In the new education, we should create a teaching methodology that will allow mass training of cognitarians – specialists with research skills (at the level of 20–25% of the population). Now the proportion of such specialists is 2–3% of the population. A 10-fold increase in the proportion of «PhDs» may now seem like a utopia to some, but we need to remember that a hundred years ago, in 1914, only 27% of the population in Russia were literate, and now almost 100% are literate and 35% of the population have diplomas of higher professional education [19]. For the first time, mentions of the cognitive approach to learning appeared in the works of E.C. Tolman [20], and with the development of cognitive psychology, they spread to pedagogy [21]. The definition of cognitive learning determines a field of study in psychology and a trend in pedagogy [22]. The main goal of cognitive learning, according to researchers, is to stimulate the mental abilities of students, which makes the process of learning and adapting to new conditions more effective. Within the framework of the cognitive approach, the educational process is not aimed at memorizing information, it aims at comprehending internal relationships, encouraging students to be engaged in dialogue and research activities, reflection and concentration of mentality. With this approach, reasoning and reflection involve serious and difficult cognitive work. The cognitive approach to learning activates certain thought processes that allow you to perceive theoretical and practical knowledge much better. It helps to achieve high skills in your career, which positively affects labor productivity and other aspects of life. Cognitive strategies improve the understanding of reality. In cognitive learning, the goal is to achieve a deeper understanding of the subject at a qualitatively different level, different from simply memorizing postulates and theories. This creates the effect of immersion in the area being studied, helps to remember and improve the abilities of trained specialists. The analysis made it possible to determine the advantages and disadvantages of the cognitive approach in engineering education (Table 3). The main methods of cognitive learning include: 1. Cognitive training of the brain is used in various types of learning: well-known IQ tests, memory tests, reflex actions, mobile intelligence, creativity, etc. 2. Games and simulations. Educational training games promote decision-making in the process of vigorous exercise or management-competition. 3. Case studies model versions of solutions that educators might find as they explore the subject area. The method focuses the student’s attention on the approach to specific problems, and not on their solution. Decisions are of a secondary nature, in the first place - the understanding of advantages and disadvantages. 4. Method of mind maps. Technology is important because the right hemisphere of the brain perceives information differently than the left one. The reconnaissance-map

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Table 3. Advantages and disadvantages of the cognitive approach in engineering education. Advantages of the cognitive approach in engineering education

Disadvantages of the cognitive approach in engineering education

It improves the understanding through hands-on immersive technologies, and it encourages engineers to learn by doing

It is a time-consuming and painstaking process of implementing approach tools, with a slight error, you can get highly distorted data

It encourages continuous learning, allows you to correlate existing experience and knowledge with new trends in digital technologies and scientific and technical developments

Learning models created within the cognitive approach cannot be standardized. As a result, to design a new process, it is necessary to start all over again, using a large amount of resources, time, and finances

It forms a high level of motivation for the educational process because the acquisition of knowledge, skills, and competencies becomes the main goal for the student

Problem-based learning, developed by cognitivists, involves non-judgmental education. The result obtained in the learning process is unpredictable

There is ease of perception of the data presented in models to enhance thinking, reading and remembering technical information

There is lack of ecological validity. This term denotes the degree of compliance of experimental conditions with the existing reality. Critics of this trend often point out that cognitivists conduct research in the artificial environment, often far from the parameters of reality

It improves problem solving skills of management engineers It increases the reliability and accuracy of the data presented, as it is based on experience and experiment It forms the active position of students in obtaining information and mastering the material Knowledge, skills and abilities can be applied not only in specific areas, but also in new situations It increases confidence in the ability to quickly master new technologies and techniques Source: authors

method helps to find information that allowed it to compare the perception of both the left and right hemispheres. 5. Technology TRIZ. This is a new technology of thinking. The search for solutions is not carried out by trial and error, it is presented as a conscious technological process. Thus, from the standpoint of the cognitive approach, it is necessary to form a model information environment, being in which, the student could acquire necessary skills in solving problems of future activity and form professionally important qualities and competencies. Using a mind map, we visualize this component under digitalization (Fig. 2).

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Fig. 2. Mind map of the student-engineer’s information education environment under digitalization (Source: authors).

Global trends in improving training and developing digital and traditional competencies of engineering specialists are: – reorientation from narrow professional training to the development of a wide profile of competencies and personal orientations; – change of subject-object relations to subject-subject ones; – system representation of the future engineer-specialist, his personal and professional qualities.

4 Discussion Specialists engaged in innovative, production and service activities, in addition to special engineering knowledge, must have the ability to apply them effectively in practice and manage them. An integral part of the engineer’s personality is creative skills, the ability to formulate and solve complex problems outside the subject area of their professional competencies. Their personal qualities should provide the ability for cooperation and project activities, communication skills, determination in achieving goals. Of great importance is the desire and ability of the individual to explore innovations, complex processes, creative strategies for activities. The synthesis of the cognitive, practical and personal approach to teaching students-engineers will allow them to learn how to independently manage personal development in the educational process. As a result, future engineers will develop their individual style of work, different from the techniques and methods formed in society.

5 Conclusion In conclusion, it should be noted that the emergence of many people with cognitive skills, the so-called cognitariats in society, will create new engineering knowledge, based on the understanding of a large flow of information. Specialists with cognitive skills will be

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able to process, classify, generalize and create a new knowledge economy. It is advisable to consider training of a modern specialist engineer under digitalization in the context of the information and educational space development that brings the benefits of learning, both considering the development strategy of effective information and communication technologies, and from the standpoint of preserving the individuality of the subject of professional education. Digital transformation is not so much about hardware or applied technologies, but about a new type of thinking. As a result, the authors concluded that to ensure the socio-economic sustainable development of the Russian Federation, we need transformations and changes in approaches to the educational process. The authors substantiated the key role of the modern education system in ensuring the sustainable digital development and proposed a mechanism for the creation and dissemination of cognitivism in educational and socio-economic processes.

References 1. The development of engineering education is one of the priorities of the state educational policy. https://obr.so/news/razvitie-inzhenernogo-obrazovaniya-o/. Accessed 20 Mar 2023 2. Address of the President of the Russian Federation to the Federal Assembly dated 01 December 2016. http://www.kremlin.ru/events/president/news/53379. Accessed 20 Mar 2023 3. Passport of the national project National program «Digital Economy of the Russian Federation». https://base.garant.ru/72296050/. Accessed 20 Mar 2023 4. Rouvrais S, Remaud B, Saveuse M (2020) Work-based learning models in engineering curricula: insight from the French experience. Eur J Eng Educ 45(1):89–102 5. Asplund F, Flening E (2021) Boundary spanning at work placements: challenges to overcome, and ways to learn in preparation for early career engineering. Eur J Eng Educ 156:1–21 6. Dubrovskaya YuA, Pikhkonen LV (2022) Cognitive-pragmatic technologies in practiceoriented training of mining engineers. Bull. Krasnoyarsk State Pedagogical University named after. V. P. Astafieva 2(60):24–35 7. Ertas A, Maxwell T, Rainey VP, Tanik MM (2003) Transformation of higher education: the transdisciplinary approach in engineering. Trans Educ 4(2):289–295 8. Kirillov NP, Leontyeva EG, Moiseenko YA (2015) Creativity in engineering education. Procedia Soc Behav Sci 166:360–363 9. Granello DH (2010) Cognitive complexity among practicing counselors: how thinking changes with experience. J Couns Dev 88:92–100 10. Crawley EF, Malmqvist J, Ostlund S, Brodeur DR (2007) Rethinking engineering education: the CDIO approach, 1st edn. Springer, Cham 11. Sergeev SF et al (2016) Cognitive pedagogy: E-learning technologies in the professional development of a teacher: Monograph. NEFU named after M.K. Ammosov, Institute of Continuing Professional Education, Yakutsk 12. Anderson JR (2002) Cognitive psychology, 1st edn. Piter, St. Petersburg 13. Miller GA (2003) The cognitive revolution: a historical perspective. Trends Cogn Sci 7(3):141–144 14. Gentner D (2010) Psychology in cognitive science: 1978–2038. Top Cogn Sci 2(3):328–344 15. Poitras G, Poitras E (2011) A cognitive apprenticeship approach to engineering education: the role of learning styles. Eng Educ 6(1):62–72 16. Davis P, Vinson A, Stevens R (2017) Informal mentorship of new engineers in the workplace. In Proceedings of the 124th ASEE annual conference and exposition, p 20. ASEE PEER, Columbus

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17. CSR: Problems of engineering education. https://www.csr.ru/ru/events/1867/. Accessed 20 Mar 2023 18. Federal State Statistics Service: Labor resources, employment and unemployment. https://ros stat.gov.ru/labour_force. Accessed 20 Mar 2023 19. Habr: Cognitive education: From cramming to knowledge. From engineers to cognitives. https://habr.com/ru/post/155791/. Accessed 20 Mar 2023 20. Tolman EC (1948) Cognitive maps in rats and men. Psychol Rev 55(4):189–208 21. Zitter I, de Bruijn E, Simons PRJ, Ten Cate TJ (2011) Adding a design perspective to study learning environments in current higher education. High Educ 61(4):371–386 22. Leushina IV (2008) Formation of engineering thinking and foreign language training: a cognitive approach. Bull South Ural State Humanitarian Pedagogical Univ 10:42–51

Digitalization of the Educational Process in the Modern University N. V. Nikonova1

, V. V. Nasonkin2

, and S. V. Barabanova2(B)

1 Kazan National Research Technological University, Kazan, Russia 2 Russian Peoples’ Friendship University, Moscow, Russia

[email protected]

Abstract. Digitalization of education has its own history, development stages, prospects and difficulties. In this paper, the authors consider specific features of e-learning in the process of teaching various disciplines to students of modern Russian universities. The authors present some positive and negative aspects of the introduction of e-learning elements into the traditional educational process. Specific features of information technology use in traditional and distance learning, and possibilities of their combination are considered. The authors offer examples of online courses and their elements in the learning process. The ability to combine full-time and technological learning is one of the main advantages of mixed learning (a hybrid format). This hybrid approach combines different learning methods and techniques. The application of the mixed e-learning model greatly simplifies the work of a teacher: you can reduce the time to present theoretical material by creating video lectures, more efficiently use time in the classes. Keywords: Digitalization · Education · E-Learning · Online Courses

1 Introduction In modern society for the training of successful specialists, universities should pro-vide the opportunity to model the educational process depending on the changing needs of consumers, actively use modern technologies. Currently, universities, taking into account the educational standards of higher education, have the opportunity to develop and implement educational programs in accordance with their own requirements. The insufficient number of classroom hours allocated to basic subjects results in less classroom work and a large amount of time (more than 50% of the total hours) devoted to temporary extracurricular work by students.

2 Methodology Digital technologies are increasingly permeating the educational process. Their use depended largely on the instructor’s skills, the technical equipment of lecture and workshop rooms and a number of other factors. The teacher constantly has to adapt to the © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 340–344, 2023. https://doi.org/10.1007/978-3-031-38122-5_47

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changing conditions of educational activity [1]. A modern teacher should have a good knowledge of the subject, be a specialist in his subject area and be Digital technologies are increasingly permeating the educational process. Their use largely depends on what the teacher can use, on the technical equipment of lecture and practical audiences and on a number of other factors. The teacher also constantly has to adapt to the changing conditions of educational activity [2]. The modern teacher must have a good knowledge of the subject, be a specialist in his subject area and at the same time be able to use modern information technologies in his classes [3]. One of the possible ways to solve these problems is to introduce into the learning process modern technologies, including mixed learning, which is the integration of traditional and electronic, the use of distance learning technologies. The ability to combine face-to-face teaching with technology-based learning is one of the main advantages of mixed learning. This hybrid approach brings together different teaching methods and techniques [4–6]. The application of the mixed e-learning model greatly simplifies the work of the teacher: it is possible to reduce the time for the presentation of theoretical material through the creation of video lectures, to use time more efficiently in the classes held in the classroom [7, 8]. Not every student who studies in the university program in the traditional way, quickly absorbs information. In addition, in order to better understand the rules and mathematical foundations, as well as complex texts of a legal nature in the traditional course «Jurisprudence», it is recommended to solve a large number of problems and examples. Since the program is limited in time, many students do not develop the necessary skills and understanding in solving basic examples and in the future cannot solve more complex examples and applied problems.

3 Results The authors of this paper offered the application of the virtual learning environment Moodle in the online learning process. The main content of the electronic information educational environment should include the possibility of its use for different professions. Developed online courses should include interactive lectures with built-in video content (mode of presentation of material, active repetition); practical video sessions; training tests, tests (control mode, self-learning, repetition, final inspection). In the learning environment, it is recommended to organize a classroom of the course, where for each type of training session (lecture, practical exercises, execution of calculation tasks) are placed educational and control materials. The course should be accompanied by a bank of various tasks for independent work, calculation tasks and a bank of tests to verify the knowledge gained. The training course can be divided into modules. Each module also consists of several sections. For lectures, theoretical material in the form of notes on each topic, lecture presentations, video materials is offered. The content of the video lectures was made as informative and understandable for the students as possible. The logic of the lecture construction takes into account the principle of «from simple to complex» in such a way that, if necessary, the student could independently trace and understand the basic provisions of the material set out in the lecture.

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For practical exercises of the electronic educational environment, abstracts of educational materials with basic formulas, examples of problem solving are placed; video materials help to understand the algorithm of solving individual problems. Lectures and practical courses of the course contain a large number of examples and tasks, tasks of various kinds, texts for study, allowing the student to acquire the skills of correct use of the studied material and illustrating the relationship between disciplines, practical application of the proposed methods. The task layout follows a scheme from simple (standard) to complex (non-standard) to tasks with a practical application. Also, each module includes: tasks for independent solution; calculation tasks; methodical instructions for solving problems and preparing for practical exercises, examples of solving calculation tasks, a test for testing knowledge; reference and table materials; criteria for evaluation of calculation tasks, tests in the form of tests. A large number of studied examples helps the student to develop skills of independent problem solving and prepare for testing. Successful development of each of these types of independent educational activity of the student is evaluated in the information educational environment test (after work with the lecture), independent work (after independently solving problems in the environment). The introduction of e-learning into the learning process can take place in several stages. The first stage consists in the acquisition of lecture material. During the lecture the basic concepts and definitions are introduced. Their practical application is considered. Lectures give examples explaining the use of certain concepts, given a visual interpretation of the practical results. The examples given make the presentation more accessible and allow the listener to better understand the material. The second stage – practical exercises, detailed solution of the main tasks under each section. In the process of learning, a student must be able to assess his or her level of knowledge in order to understand whether he or she has mastered the material well or to some topics it is necessary to return to a more detailed study. It is not always possible to assess your own capabilities objectively. Since the teacher cannot control and direct the actions of each student at all times, it is necessary to organize ways of self-control. Thus, the control of module uptake can be carried out in the rating system through control points on the module material: standard calculation task, training test tasks, intermediate testing. The third stage – the execution of calculation tasks, course works for each section and the decision of control work, presented as tests. The fourth step is to perform the final test for all sections of the course. The online course can be used by teachers in various ways, for example: as a simulator (to consolidate and systematize knowledge); as a tutor (helps teachers test knowledge and broadcast tasks); as a device to simulate the actions of learners and the learning and communication environment itself. The first two methods make it possible to reduce the time for transmission and inspection, make it possible to monitor the results of training and to analyze them, and make the process itself transparent. But, unfortunately, we are not talking about a qualitative change in the learning process, since such tools can be used in the frame-work of traditional training. The use of online courses in the training process will improve the quality, bring to a new level the interaction of the subprojects of the educational process.

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4 Discussion The course is recommended for students who are in debt or in debt for a semester on selected topics; students who, for various reasons (illness, competition, personal circumstances) were unable to attend classes; students in other specialties who have not studied the subject as a whole to this extent or only selected topics or sections thereof; remote work. This course can be used for teaching students in distance for-mat. The participation of teachers was based on remote technologies. Algorithm of teacher’s work in this course with students with debts: 1. The teacher recommends to study the topic, times or several modules of this online course. The student identifies his or her gaps on the pre-test and begins to study the course. Online – lectures, recorded in the format of 15-min videos, will help the student to learn the basic concepts, theorems/normative legal acts and their application in the management of basic tasks. For a more detailed study of the topic or section of the course, the lecture spectrum is presented and links to the study letter and information sources are provided. For more in-depth study of the material recommended textbooks, which can be found in the university library or in electronic libraries. 2. After studying the lectures, the student can proceed to the analysis of solving examples and problems. Students are also presented practical presentations – 15-min videos, which explain in detail the course of solving the main problems of the course. Authors should choose practical assignments so that the lecture material is used in one way or another. After the video review, the student begins to work independently. 3. After studying video lectures, the student starts independent work. 4. To complete the curriculum and set the necessary rating points, students are ofoffered calculation tasks that must be performed during the semester. The student can solve the proposed calculation tasks for each section and bring them to the teacher for verification or send the teacher through the online classroom course. Thus, the student is given the opportunity to score intermediate points. After all stages the student passes a test on each topic. For each test (test work) you can get a certain number of points. 5. To complete the curriculum and set the necessary rating points, students are offered calculation tasks that must be performed during the semester. The student can solve the proposed calculation tasks for each section and bring them to the teacher for verification or send the teacher through the online classroom course. Thus, the student is given the opportunity to score intermediate points. 6. After all the stages, the student is tested on each topic. For each test – a certain number of points can be obtained. 7. At the last stage of the course, the student comes to the teacher to pay the debts. Passing the final test – a test that contains tasks on all topics and sections, allows the teacher to evaluate the student’s work and close existing debts. If the student fails with the intermediate or final testing, he has the opportunity to study more than once and improve his knowledge.

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5 Conclusion It seems that this course could be included in traditional classes as hours for students’ own work as well as for preparation for examinations. The authors found that its use has a positive impact on students’ performance and motivates them to work independently. Summarizing some results of the transformation of educational activity in the digital reality, it is necessary to emphasize the priority need to develop a normative legal act, reflecting the rapid introduction of distance learning and e-learning technologies into the real learning process. This is necessary not only for the regulation of educational activities, the educational process with the use of distance educational technologies and e-education, but also for the protection of the rights and legitimate interests of science Teachers and students, with an increased workload for the former and the need for appropriate material and technical guarantees for the latter. Further local rulemaking should also be actively developed.

References 1. Sedykh IY (2021) Pandemic, digitalization, and higher education. Azimut Sci Res Pedagogy Psychol 10(3(36)): 240–243 2. Galihanov MF, Khasanova GF (2019) Faculty training for online teaching: roles, competences, contents. High Educ Russ 28(2):51–62 3. Polyakov EA (2018) Mathematics – express course, experience of applying blended learning in higher education. Bull Kostromsk State Univ Ser Pedagogy Psychol Sociokinetics 24(3):165– 170 4. Mantulenko V (2020) Effective ways of digital media usage in school education. Amazonia Investiga 9(30):138–145 5. Mantulenko VV, Goryachev MD (2021) Digital media in higher education: Disruptive or sustaining innovation? In: Ashmarina S I, Horák J, Vrbka J, Šuleˇr P (eds) IES 2020, vol 160. LNNS. Springer, Cham, pp 219–225. https://doi.org/10.1007/978-3-030-60929-0_29 6. Kapustina L, Bakanova I, Sergeeva M (2022) Language training improvement of engineering students through new technologies. In: Ashmarina SI, Mantulenko VV (eds) Proceedings of the International Conference Engineering Innovations and Sustainable Development, vol 210. LNCE. Springer, Cham, pp 445–449. https://doi.org/10.1007/978-3-030-90843-0_51 7. Troshina EP, Dobrova VV, Kozyreva MP (2022) Digital educational platforms: Advantages and disadvantages. In: Ashmarina SI, Mantulenko VV (eds) ISCDTE 2021, vol 304. LNNS. Springer, Cham, pp 183–188. https://doi.org/10.1007/978-3-030-83175-2_25 8. Erokhin SV, Sadykova AR, Zhdankina Y, Korzhuev AV, Semenov SV (2018) Moodle e-learning platform as a resource for improving the quality of technical education. Novosibirsk State Pedagogical Univ Bull 8(6):138–154

Development of Additional Professional Education: Marketing Tools for Information Transparence V. V. Mantulenko1(B)

and A. D. Kornilova2

1 Samara State University of Economics, Samara, Russia

[email protected] 2 Samara State Technical University, Samara, Russia

Abstract. The market of additional professional education is developing dynamically, competition between state and commercial educational organizations is also intensifying due to the emergence of a large number of offers of different quality in the global information space. In these conditions, often the ability to express oneself, sustainably maintain a positive image, monitor one’s reputation, interact with various target audiences and stakeholders through modern information and communication channels become decisive success factors. And consequently, PR activities are becoming increasingly important for educational organizations. These aspects determine the relevance of the chosen topic. The object of the study is the limited liability company «Modern Psychophysiological Institute». The subject of the study is the PR strategy of an educational organization. The purpose of this study is to theoretically substantiate and develop recommendations for improving the PR strategy of an educational organization. The research methods include analysis and generalization of scientific literature, methods of strategic analysis, content analysis of different media, sociological research (online survey and in-depth surveys). Keywords: Additional Professional Education · Brand of Educational Institution · Educational Management · Information Transparence · PR Strategy

1 Introduction Traditionally, information transparency of an organization is understood as timely and accurate disclosure of information about its activities. In this case, we are talking about information of a mandatory nature, and about those data that the organization places in the public domain voluntarily. The information transparency is also traditionally associated with the possibility of realizing competitive advantages of the organization. It is believed that modern economic life dictates a need for regular interaction with various subjects; companies that are not burdened with the issues of information disclosure and communication with stakeholders today, risk losing the time needed to build an appropriate sustainable development management system [1, 2]. A lot of experts write about information transparency as a paradigm of sustainable development of socio-economic systems [3–5]. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 345–353, 2023. https://doi.org/10.1007/978-3-031-38122-5_48

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The principle of transparency is enshrined in the legislation in many countries in relation to different socio-economic systems, including business and educational structures. Timely disclosure by the organization of information about the content and results of its activities allows external users to form a clear idea about it, about the true state of affairs in various areas of its functioning. At the same time, it is important to understand that by providing (disclosing) information about its activities, an organization can remain informationally opaque. Information disclosure and information transparency are not identical concepts. An organization may disclose information that has no real value to an external audience, while important information may remain undisclosed. To ensure the information transparency of the organization, it is necessary to disclose information based on a number of principles, which include reliability, accessibility, efficiency, consistency and completeness, security, balance, neutrality. It is important that a reasonable balance is maintained between the openness of the organization and the observance of its interests, the protection of commercial and other secrets, and confidential information. Therefore, along with the issues of the information transparency of organizations, aspects of their information security are also being updated [6]. It is believed that the transparency is an important condition for ensuring the participation of society, various social groups as stakeholders, in the life of an organization. With regard to educational organizations, this is an important condition for their development, quality control of educational services, creation of partnerships and cooperation with other socio-economic institutions. The established practice and opinions of foreign and Russian experts indicate that modern Russian business is characterized by information secrecy: «the cult of secrecy is strongly expressed» there [1]. Similar assessments are made for educational institutions. At the same time, the need for information openness of educational institutions is emphasized nowadays by many experts. Contact with external audiences has always been a hot topic for educational institutions, but in recent years this issue has become even more significant. The transition to the information age and the protracted reforms in the education sector have created different moods and expectations in all social groups. Quite often, leaders of educational organizations, especially in publicly funded institutions, are reappointed if their performance is evaluated based on the ability to create a positive image of the institution, effectively build relationships between their organization and various communities. Unfortunately, many educational organizations are still quite closed, in particular, they diligently avoid contact with the media. In part, this position is based on fear, fear of negative stories, the depiction of certain management decisions in a light unfavorable for the organization («media phobia»). This is especially true in times of crisis. Experts in the field of educational management point out that many leaders of educational organizations still do not have built personalized relationships with external audiences.

2 Methodology From the point of view of theoretical study, the issues of information transparency of educational institutions have been studied quite poor in the scientific literature. This applies to both government and commercial organizations. On the one hand, commercial

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organizations operating in the educational sphere have a clear competitive advantage in the field of marketing communications compared to government institutions due to their experience in the business context [7]. On the other hand, publicly funded educational organizations have a more developed resource base in terms of funding, human capital, logistics, and information and communication technologies. Although this situation depends on a number of factors: the region of presence, the size and scope of the organization, the status and brand [8], and others. It is important to note that nonstate educational institutions often remain outside the scope of attention when compiling statistical reports. The task of ensuring information transparency (openness) of educational institutions in practice is updated in the context of certain difficulties in the development of this area at the present stage [9, 10]. This is due not only to transformational processes in the external environment, but also to a number of contradictions within the educational systems themselves, their immediate environment. These are contradictions between: – different quality, attractiveness and availability of the market offer of educational services, formed by state, corporate educational institutions, and the offer of commercial structures, including medium, small and micro businesses; – the needs existing in society and the supply in the market of educational services; – the requirement for the educational level to meet the needs of the economy and consumers of educational services and the possibility of real application of the received education in practice; – changes in the legal field, regulations and orders governing the activities of educational organizations, and the need for their sustainable development in the local, regional and international context. The purpose of this work is to study ways to increase the information transparency of an educational institution based on an analysis of the PR strategies used on the example of a commercial educational institution LLC «Modern Psychophysiological Institute» (LLC «MPI»). The tasks of the work are conducting a study of the existing PR strategy of the considered organization, describing the problem area and possible areas for improving the activities of an educational organization in the field of public relations and the information transparence, developing practical recommendations for improving the PR strategy of the educational organization. Research methods used in this work include: – analysis and generalization of scientific literature on the research topic; – methods of strategic analysis (PEST-analysis, competitive analysis, SWOT-analysis); – content analysis of the media, website and social networks of the considered organization; – sociological research (online survey and in-depth surveys).

3 Results As an example for our study, we chose a relatively young educational organization engaged in the field of additional professional education (APE). At the first stage of the study, a strategic analysis of the external and internal environment of LLC «MPI» was

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carried out. The results are reflected in the SWOT analysis matrix. The main conclusions that can be drawn from the results of the conducted strategic analysis are as follows: – from the point of view of the development prospects for the entire segment of additional professional education in Russia, we see the most promising not war, but the peace of brands: co-competition between large and medium-sized players in this market (universities, business schools and corporate educational centers) with representatives of small and micro businesses, as well as educational organizations with each other; this will combine competitive advantages (flexibility and rapid adaptation to the requirements of the market of small companies, and recognition, reputation and image of large educational organizations, as well as personal brands of trainers [8], coaches, experts) in the interests of all participants in the APE market; – ongoing changes in the external environment need constant monitoring, tracking, and response to them, while it is strategically important to consider them not only as potential threats to the activities of educational organizations, but also as growth points, development drivers; – the APE market is actively developing, while it becomes not easy for target audiences to navigate in it (in existing proposals, their quality, applicability in practice, usefulness, personal ecology and other important aspects), especially for small educational organizations; on the one hand, we have a steadily growing demand for APE programs, on the other hand, the multifactorial choice of certain educational products by the consumer s and their disorientation, respectively; an important condition for the development of this area today is special attention to the quality of educational programs, social evidence of their usefulness, ecology of teaching and applicability in the real life. Further, the target audiences of the institute works in all its areas and the currently implementing PR strategy were analyzed. To communicate with target audiences, LLC «MPI» has 2 official websites and positions itself on these resources as a network of educational, research and production organizations, one of the leading educational and research organizations in Russia in the field of applied psychophysiology. Thus, there is no clear positioning of the organization, because, in fact, LLC «MPI» is a microinstitution, not a network of organizations, and the designated research direction should, in our opinion, have some social evidence in the form of patents, scientific publications, licensed methods and other things; any information about these aspects, any links or references on official information resources are not provided. The information provided on the official pages on the Internet is not complete and reliable, in particular, there is no data about some of the courses being implemented. News is not published systematically and not always stylistically correct. Official social media accounts are also underdeveloped. The average frequency of publications is 1–3 times a month. Thus, work with its own promotion channels (official websites, accounts in social networks) is not carried out systematically, the institute’s social networks are not actively developing. The content created is usually dry, unattractive to the general public and potential target audiences. In order to identify the awareness of the potential target audience of the considered institute and its educational services, as well as the interest in additional professional education programs, we conducted a survey in the form of a questionnaire using the

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Google Forms tool. The survey was conducted in March 2023, remotely and anonymously, using open and closed questions. The survey involved 50 people (86% women and 14% men). When asked about their interest in courses, seminars and trainings in psychology, the majority gave an affirmative answer (80% of respondents). In this context, we were also interested in detailed answers, in which survey participants commented on the difficulty of finding such products on the market of additional education, in which they would be sure of the quality (especially with regard to specialists conducting these courses, seminars and trainings), as well as their interest in new topics. A separate block of our questionnaire contained questions regarding the awareness of the target audience about the considered organization and the NLP method which is the main tool in the activities of the LLC «MPI». The vast majority of respondents (80%) have never heard of the Modern Psychophysiological Institute, perhaps because the main focus was originally training of polygraph examiners, which was of interest to the relevant structures and services, and penetration into the field of additional professional education began relatively recently, so we cannot talk about recognition of this institution in the APE market yet. However, according to the estimates of the Wordstat.Yandex resource, the regional popularity of the LLC «MPI» in the Samara region is quite high (1021%). Since the leading method taught in the considered institution is neuro-linguistic programming, it was also important for us to touch upon the awareness of the target audience of this direction, the associations that people have formed around this concept. The semantic analysis of associations showed that NLP is most often associated by survey participants with «programming», «management», «influence» (12 mentions), the following associations also include «hypnosis» (3 mentions), «zombification» (3 mentions) and «manipulation» (3 mentions), a «method to solve mental problems, disease states» (2 mentions). In addition, there were 2 associations associated with something alien («UFO»), with «drugs», with something incomprehensible, unknown. We asked survey participants to rate this method in terms of its usefulness and effectiveness. By including these questions in the questionnaire, we wanted to test our assumption that the potential target audience of educational services does not have a clear understanding of the NLP method, and often the idea of this direction has a negative connotation. This assumption was partially confirmed. In general, the attitude towards NLP, as a psychological direction, is positive (ratings in terms of usefulness and effectiveness are high). Thus, the awareness of potential target audiences about the existence of LLC «MPI» and the activities of this educational organization is low, despite the fact that the respondents have a potential demand for the institute’s services. The population has a weak and unclear understanding of the NLP method, bordering on something fantastic and little studied. The conducted research allows us to conclude that the institute does not yet have a clear and well-developed PR strategy, while it is the marketing component that is today the decisive aspect that ensures the competitiveness of small educational organizations. The nature of the PR tools used in LLC «MPI» indicates that the organization spontaneously adheres to a marketing strategy of differentiation, maintaining the focus of its APE courses on the use of the NLP method. Competitors in the Samara market do not

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have similar products. That allows the considered organization to focus its existing and new educational products under development on this difference. The central product of LLC «MPI» for a wide target audience is the NLP method. It is at the same time the biggest competitive advantage and limitation. To overcome this limitation, the institute can be recommended to develop new educational products at the intersection of psychological and other areas, weaving the NLP method into them as a tool. This will allow the considered organization to make the most of the opportunities that open up in the external environment based on its strengths. The applied PR-tools (photo-reports on the completion of courses, announcements of new courses and trainings of the institute’s partners and graduates, activity in social networks) allow the company to maintain the existing image of an existing (functioning), but little-known institution. These tools are not enough for the further development of the organization in the APE market, in order to take advantage of the opportunities that are opening up and counter the existing threats in order to form and develop the own brand. In the information field, the educational organization works poorly. The information broadcast through official channels (websites, social networks) does not reflect the real state of affairs in LLC «MPI», it is not presented systematically and is not updated regularly. There is no clear positioning, no established reputation in the market of educational services. The organization does not have a formalized PR strategy in any way, there is not even a tactical action plan, and there is no person responsible for public relations work. The personal brand of the head of LLC «MPI» is strong, but this is true for a narrowly professional environment, this is not the brand of the head of the institute. Today, the institute is little known to the general population, and if potential clients visit its information resources, they get the impression of an organization as some kind of closed institution, the activities of which are shrouded in mystery.

4 Discussion In the light of the identified problems, the leading of which is the lack of a clear PR strategy, possible areas for improving the activities of LLC «MPI» can be the following directions: First, it is recommended to prescribe the positioning of an educational organization, taking into account the values and preferences of potential target audiences [11–13]. At the same time, it is important for LLC «MPI» to understand specific features of the existing client request for APE programs, current trends related to the consumer behavior. Promotion the institute’s educational products, it is recommended to position the optimal ratio in terms of the parameters «quality/ecology/value» with an increase in the positive emotional component in the perception of the NLP method. It is important to fix in the minds of potential consumers of the services of LLC «MPI» the image of the institute as a serious educational organization that has its own history and achievements, despite its small size and scale of activity, an organization that is successfully developing, providing various social groups with high-quality services in popular areas of additional professional education. This will influence the choice

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of target audiences in favor of the considered organization. An important aspect in the context of positioning, in our opinion, is also the fact that it is important for the institute to popularize the NLP method, informing the general public about its essence and opportunities for personal and professional development. Second, the analysis of trends in the field of additional professional education showed that target audiences today need effective and interesting tools for self-knowledge and development, as well as some «navigators» that allow them to find the needed product in a diverse field of offered courses and programs. Therefore, it is important for an educational organization to be able to speak with consumers in their languages, to be flexible and attractive. This indicates the need to revise at least the policy of maintaining accounts in social networks and filling the official website. The generated content should be lively and interesting to different target audiences. It should be informative, useful, and at the same time enticing, tasty, lively. This also applies to the activities of the institute itself and the NLP method used in its activities, its capabilities, specifics, and effects. Third, it is important to strengthen the work of the organization in the information space using various PR tools. This is necessary in order to increase the awareness of potential customers about the considered organization, its activities, experts working at the institute, its successful graduates and ongoing professional training and retraining programs. Presence in the information space will allow the institute to work on the reputation and form the own brand. Fourth, purposeful and systematic work is needed on the brand of both the institute as a whole and the personal brand of the first person of the university, the rector, for a wide audience. Building the brand of an educational organization will make it not only recognizable, but also more attractive to potential partners, sponsors, and customers. Of course, building a brand should be a systematic work, including both direct advertising campaigns that increase the reputation of the university, and the use of other PR promotion tools. Among these tools is event marketing: LLC «MPI» is recommended to hold various kinds of open events for a mass audience. These can be open lectures by teachers of the institute or invited experts on relevant, interesting topics in an entertaining format, master classes, seminars, trainings, presentations, etc. Such tools will draw attention to the university, increase its recognition, and also help expand the funnel sales. Fifth, for the development of communication and partnership relations, LLC «MPI» is recommended to attract speakers interesting for a wide audience to its events. These can be representatives of the expert community, famous bloggers, business representatives and other interesting figures. It is possible to create joint, partnership projects on this basis, which will be mutually beneficial. Sixth, increasing its presence in the information field, it is also important for the institute to create its own community around itself. A good platform for this can be social networks, and existing and maintained contacts of the university with its graduates. This community can be formed, for example, around the topic of neuro-linguistic programming, which will allow not only to bring to the masses a scientific, correct understanding of the method in an entertaining, accessible form, but also to discuss important topics in this area, thereby removing prejudices existing in the society, prejudices and delusions.

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Seventh, another recommended direction for improving the information transparence and openness of the educational organization is to increase its expert level [14]. First of all, this concerns the head of the institute, who is required to appear in external media as part of expert interviews, participate in various programs, publish materials in print media, online resources, and professional communities in social networks.

5 Conclusions All this together should be reflected in a formalized marketing strategy, the purpose of which should be to increase the client flow through the implementation of new educational products and a more active presence in the information space. Under these conditions, the objectives of the PR strategy will include: – development of positioning of the educational organization and other key parameters of the brand being formed; – activation of the organization’s presence in the information field; – increasing the degree of awareness of potential customers about the activities of the educational organization; – influence on the formation of consumer preferences of target audiences in favor of the considered organization; – development of communication and partnership relations of the institute; – increasing the confidence level of the NLP method and the proposed educational products with its application.

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8. Mantulenko VV, Yashina EZ, Ashmarina SI (2020) Personal brand of university teachers in the digital age. In: Ashmarina SI, Vochozka M, Mantulenko VV (eds) ISCDTE 2019, vol 84. LNNS. Springer, Cham, pp 62–70. https://doi.org/10.1007/978-3-030-27015-5_8 9. Ramírez Y, Tejada Á (2018) Corporate governance of universities: improving transparency and accountability. Int J Discl Gov 15:29–39 10. Alistair McN, Huw A (2021) The power of accessible knowledge: universities, suppliers, and transparency in the information age. In Baker D, Ellis L (eds) Chandos digital information review, future directions in digital information, pp 71–92. Chandos Publishing, Cambridge 11. Hong S, Kim B, Lee SY (2023) A public health crisis in the university: impact of crisis response strategies on universities’ transparency and post-crisis relationships during COVID 19 pandemic. Public Relat Rev 49(1):102287 12. Diaconu M, Pandelic˘a A (2012) The partnership relationship between economic academic and business environment, component of modern university marketing orientation. Procedia Soc Behav Sci 62:722–727 13. Kislyakov AS (2021) The influence of information transparency of higher education organization on the adaptation of international students. Humanit Soc Sci Bull Financ Univ 11(1):66–71 14. Accreditation in education: Information openness of universities: problems and solutions. https://akvobr.ru/informacionnaya_otkrytost_vuzov_problemy_i_resheniya.html. Accessed 14 Apr 2023

Compliance of Engineering Educational Programs with the Country’s Development Directions D. V. Kharitonova(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. The author examines the role of engineering education for the development of the country. A strategy of scientific and technological development is taken as a basis, which deals with the priority development areas in the modern world. Based on the topic, the research purpose is to study the compliance of the educational programs of the leading universities in Russia with the priority areas of scientific and technological development of the country. During the study, methods such as analysis of domestic and foreign information sources, analysis of Internet resources, sorting, and comparison were used. Based on the analysis of educational programs presented in the leading engineering and technical universities of the country, it was concluded that they cover most of the priority development areas. At the same time, special attention should be paid to the areas of ecological agro- and aquaculture and modernization of the transport and logistics system. The analysis of theoretical sources confirms the importance of engineering education for achieving the strategic goals of global sustainable development. Keywords: Development · Education · Educational Programs · Engineering Education · Priorities

1 Introduction Currently, there is an increasing preference on the part of the state for the support of technical and engineering specialties in the sphere of higher education. According to the Strategy of Scientific and Technological Development of the Russian Federation [1], priority areas are those that are able to create technologies designed to give impetus to the innovative development of products manufactured in Russia for the domestic and foreign markets, as well as to ensure their competitiveness on the world stage. For this, the state needs highly qualified engineering personnel, which determines special support for engineering education. Analyzing the provisions of the Strategy for Scientific and Technological Development of the Russian Federation [1], several priority areas can be identified: 1. IT-technologies and robotics. 2. Ecology and resource-saving energy. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 354–359, 2023. https://doi.org/10.1007/978-3-031-38122-5_49

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Personalized medicine. Ecological agro and aquaculture. Countering techno-, bio- and cyber threats. Modernization of the transport and logistics system.

In accordance with the development priorities, it is necessary to understand the compliance degree of the existing educational programs of the country’s leading technical universities. Based on this, the goal of this study is to consider the compliance of the educational programs of the leading Russian universities with the priority areas of scientific and technological development of the country.

2 Methodology In order to achieve this goal, the rating of the best universities in Russia in the engineering and technical field was analyzed [2]. Universities were sorted and the top three were selected. They became: – Moscow State Technical University named after N.E. Bauman (National Research University); – Moscow Institute of Physics and Technology (National Research University); – National Research Nuclear University MEPhI. Further methods such as matching and comparison were used. The priority development areas and the corresponding educational programs for each university were compared. The number of programs in each development area was compared. The studies of domestic and foreign scientists on the role of engineering education in the world were analyzed.

3 Results In order to show the compliance of the educational programs of the selected universities, their systematization was carried out based on the previously announced priority areas of scientific and technological development. For clarity, the results were presented in Table 1. Looking at the comparison results shown in Table 1, several conclusions can be drawn. Firstly, the educational programs responsible for such a priority development area as IT technologies and robotics are the most common in all the universities examined. At the same time, none of the universities has educational programs in the direction of ecological agro- and aquaculture. Programs in the direction of modernization of the transport and logistics system are also poorly represented. In order to understand which of the considered universities works most fully in the priority areas of scientific and technological development, Fig. 1 graphically reflects the number of programs of each institute in these areas. Figure 1 shows that the largest number of educational programs corresponding to the priority areas of training is presented at the Moscow State Technical University named after N.E. Bauman, and the smallest – at the Moscow Institute of Physics and Technology.

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Table 1. Comparison of educational programs (EP) with priority areas of scientific and technological development. Priority development areas

Moscow State Moscow Institute of Technical University Physics and named after N.E. Technology Bauman

National Research Nuclear University MEPhI

IT-technologies and robotics

- Information systems technologies; - Design and technology of electronic means; - Informatics and computer technology; - Software engineering; - Mechatronics and robotics; - Robotics for military and special purposes

- Radio engineering and computer technologies; - Computer science; - Mathematical modeling and computer technologies; - System programming and applied mathematics; - Mathematical modeling and computer technologies; - Applied mathematics, computer technologies and mathematical modeling in economics

- Supercomputer technologies in engineering and physical modeling; - Extreme programming; - Mechatronics and robotics in the nuclear industry; - Quantum computing systems and data processing; - Mathematical and software support for computers and computer networks

Ecology and resource-saving energy

- Design of technological machines and complexes; - Electricity and electrical engineering; - Power engineering

- Physics of promising technologies: alternative energy, scientific programming and functional materials

- Nuclear power plants; - Radiation ecology and ensuring the safety of man and the environment; - Laser thermo-nuclear fusion; - Controlled thermonuclear fusion and plasma technologies (continued)

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Table 1. (continued) Priority development areas

Moscow State Moscow Institute of Technical University Physics and named after N.E. Technology Bauman

National Research Nuclear University MEPhI

Personalized medicine - Applied Informatics; - Biotechnical systems and technologies

- Applied mathematics and informatics; - Biophysics and bio-informatics; - Biotechnology; - Biomedical Engineering

- Applied mathematics and informatics; - Biophysics; - Medical physics

Ecological agro and aquaculture

–

–

–

Countering techno-, bio- and cyber threats

- Computer security; - Information security of automated systems; - Technosphere safety; - Information technology security in law enforcement

- Development of information security systems for computer systems of informatization objects; - Convergent nano-, bio-, information and cognitive technologies

- Protected high-performance computing systems; - Security of computer systems (Innovative technologies of computer security); - Information security of financial and economic structures; - Economic and legal support of economic security

–

–

Modernization of the - Ground transport transport and logistics and technological system means; - Special purpose vehicles Source: author based on [3–5]

4 Discussion Speaking about the role of engineering education in the modern world, it should be noted its importance for the development of our society as a whole. Technical specialties have a significant impact on various spheres of human life. This is not only the sphere of construction and engineering, but also medicine, agriculture, education and even culture. A number of domestic researchers note the role of engineering education not only within a region or country, but for solving global problems and ensuring the sustainable development of the entire civilization [6]. I.G. Shamshina notes that a lot of industrial companies are currently facing difficulties in finding personnel for engineering specialties [7]. O.F. Piralova suggests that high-quality training of engineering personnel

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17 13

16

20 15 10 5 0 Moscow State Technical University named after N.E. Bauman Moscow Institute of Physics and Technology (National Research University) National Research Nuclear University MEPhI Fig. 1. Number of university programs that meet priority development areas (Source: author).

can ensure the introduction of new competitive technologies [8]. Other researchers see difficulties in the quality training of engineering personnel associated with insufficient provision of equipment and materials necessary for obtaining practical skills [9]. Analyzing the work of foreign researchers, it should be noted that they consider the importance of engineering education on a large scale. Thus, researchers from Australia are considering the modernization of engineering education in order to achieve the goals of global sustainable development [10]. A group of researchers from Romania note the importance of modernizing engineering education in terms of the emerging skills of Industry 4.0 [11]. This trend is also noted by scientists from Mexico, who have noticed the modernization of undergraduate programs in the specialty of industrial and systems engineering to meet the requirements of Industry 4.0 [12]. This is discussed within the framework of chemical engineering, going from the Roman Empire to the Silicon Valley [13]. All this confirms the high role of engineering education in providing solutions to both local and global problems. The interest of researchers from various countries of the world confirms the widespread relevance of research conducted on this topic.

5 Conclusion Based on the study, several conclusions can be drawn: 1. The priorities of the state in the field of scientific and technological development interpret the currently demanded areas of study for vocational education institutions. Stimulation of the modernization of educational programs takes place in order to obtain the greatest support from the state.

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2. Leading engineering and technical universities of the country are called upon to fill the need for engineering personnel based on priority development areas. Analyzing educational programs, it became noticeable that educational programs in the areas of ecological agro- and aquaculture and modernization of the transport and logistics system fall out to a significant extent. 3. An analysis of literary sources confirms the importance of engineering education not only for an individual country, but also for the world community as a whole. Summing up, we can say that engineering education has a significant impact on the scientific and technological development of the country in terms of training engineering personnel in priority development areas. It makes sense to pay attention to drop-down areas and add educational programs to form the most complete picture.

References 1. Decree of the President of the Russian Federation «on the strategy for scientific and technological development of the Russian federation». http://static.kremlin.ru/media/acts/files/000 1201612010007.pdf. Accessed 20 Apr 2023 2. Kommersant: Rating of the best universities in Russia in the engineering and technical field. https://www.kommersant.ru/doc/4773074. Accessed 20 Apr 2023 3. Bauman Moscow State Technical University: Bachelor’s and specialist degree programs. https://bmstu.ru/bachelor/majors. Accessed 20 Apr 2023 4. Moscow Institute of Physics and Technology: Description of programs. https://pk.mipt.ru/ bachelor/2023_programs/. Accessed 20 Apr 2023 5. National Research Nuclear University MEPhI (Moscow Engineering Physics Institute): Catalog of educational programs. https://eis2.mephi.ru/programs?F.LIds=3&F.LIds=5&F.PrN=& F.Ys=&F.DeIds=&F.FInds=1&F.FInds=2. Accessed 20 Apr 2023 6. Ivanov VG, Kaybiyanen AA, Mifathutdinova LT (2017) Engineering education in the digital world. High Educ Russ 12:136–143 7. Shamshina IG (2020) Current trends in Russian higher engineering education. Sci Eur 54– 3(54):47–50 8. Piralova OF (2016) Modern engineering education: Problems and prospects. High Educ Today 10:2–5 9. Antsupova SG, Afonskaya GP (2017) Problems and the future of engineering education. In: Savvinov VM, Arkhangelskaya EA, Ovchinikov NP, Popov RV (eds) Modernization of Engineering Education: Russian Traditions and Modern Innovations. NEFU Publishing House, Yakutsk, pp 79–84 10. Gutierrez-Bucheli L, Kidman G, Reid A (2022) Sustainability in engineering education: a review of learning outcomes. J Clean Prod 330:129734 11. Ciolacu MI, Mihailescu B, Rachbauer T, Hansen C, Amza CG, Svasta P (2023) Fostering engineering education 4.0 paradigm facing the pandemic and VUCA world. Procedia Comput Sci 217:177–186 12. Treviño-Elizondo BL, García-Reyes H (2023) What does Industry 4.0 mean to industrial engineering education? Procedia Comput Sci 217:876–885 13. Meyer T et al (2022) The importance/role of education in chemical engineering. Chem Eng Res Des 187:164–173

Artificial Intelligence Technologies for Evaluating Quality and Efficiency of Education I. V. Nikolaeva1(B)

, A. V. Levchenko2

, and S. I. Zizikova3

1 Samara State University of Economics, Samara, Russia

[email protected]

2 Samara State University of Social Sciences and Education, Samara, Russia 3 Volga Region State University of Physical Culture, Sport and Tourism, Kazan, Russia

Abstract. This work discusses the use of artificial intelligence technologies in the field of education. The use of artificial intelligence technology makes it possible to automate a number of processes. With the help of special algorithms, experts taught the computer to independently perform complex tasks. The author studies the history of the development of the idea of artificial intelligence, starting from ancient Greece, modern times and the Middle Ages, when scientists created inventions that could replace the human labor. The main research results are based on the authors’ conclusion that in the near future artificial intelligence technologies will be an important aspect in the field of education. As a result of the application of artificial intelligence technologies in the educational sphere, extensive opportunities will be available to higher education institutions. The features, the main goal of the educational process is the formation of educated and responsible citizens. At the same time, this creates a number of organizational aspects that require further discussion in the scientific field, which only confirms the significance of the research topic for the modern education system. Keywords: Adaptation · Artificial Intelligence · Digitalization · Education · Technology

1 Introduction In the near future, artificial intelligence technology will play an important role in developing and shaping the foundation of educational experiences as well as new opportunities in this sphere. With the help of special algorithms, experts taught the computer to independently perform complex tasks. The use of artificial intelligence technology makes it possible to automate a number of processes. The work of AI through continuous learning is becoming more efficient. In the context of universal digitalization, artificial intelligence technology is becoming one of the most promising and popular technical and digital tools in many areas of society. AI technologies have become widespread in various sectors and spheres: medicine, industry, education, agriculture, traffic, finance, trade, science and others. However, AI in education is at an early development stage. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 360–365, 2023. https://doi.org/10.1007/978-3-031-38122-5_50

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According to the generally accepted concept, artificial intelligence is a field of computer science (informatics) in which methods and means of modeling and reproduction are developed using an electronic computer. In the Russian legal practice, the artificial intelligence is considered as a set of technological solutions that allows simulating human cognitive functions (including self-learning and searching for solutions without a predetermined algorithm) and obtain results when performing specific tasks comparable, at least, with the results of human intellectual activity [1]. The artificial intelligence is based on several properties: understanding the language, training, ability to think, and ability to act. Research in the field of artificial intelligence technologies is carried out by studying the mental abilities of people and transferring the results to the field of computer properties and functions. Consequently, these technologies receive information from 5 different sources and sciences: psychology, computer science, mechanical engineering, chemistry, biology, mathematics, and even linguistics. With the help of artificial intelligence technologies based on a large amount of data, computers and similar systems try to imitate the human intelligence. At the moment, there are three main application goals of artificial intelligence: The first goal of AI is the automation, development and improvement of human labor in order to increase the productivity. Thus, people can receive more resources, while spending less mental and labor resources. The second goal of AI is to create computer processes that simulate the process of solving intellectual problems. This goal will allow people to better understand themselves, the world around them through the computer simulation. The third AI goal is the result of the two previous goals. It consists in creating an intelligence amplifier. As a result, the artificial intelligence will be stronger than human [2].

2 Methodology In order to conduct this study, the authors used methods of system analysis: generalization, analysis and synthesis, comparison and analogy, graphical, empirical methods. In the process of analysis and synthesis, the authors carried out collection and integration of different parts and properties identified based on the theoretical scientific sources into a whole complex. Deduction made it possible to obtain new provisions in a logical way from general provisions to particular conclusions. Observation made it possible to obtain knowledge about the properties of the object under study which could be useful for educational needs.

3 Results Over the past twenty years, the idea of the development of artificial intelligence began to take root in the field of education, having a significant impact on it. Artificial intelligence is integrating in the educational space as a complex system that consists of several elements: information retrieval system, automated electronic library of educational materials, knowledge control database, digital system for monitoring the level of knowledge, communication system, automated load distribution system [3].

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In order to show how all of the listed elements are implemented in practice, Table 1 summarizes the elements and specific examples of their implementation. Table 1. Ways to implement the AI elements in the educational space. Element

Implementation way

Information retrieval system

On the electronic platform, the possibility of searching for information on specific disciplines, their work programs, analytical and control materials is realized

Automated electronic library of educational materials

On the same platform, a selection of educational materials from the general ELE (electronic library environment) is implemented

Knowledge Control Database

The next step is to create databases of assignments for specific disciplines with a description of the assessment criteria, educational and practical materials

Digital Knowledge Monitoring System

On the electronic platform, fields are formed for uploading completed practical tasks that are subject to evaluation, after which it is possible to form a final monitoring of the level of knowledge

Communication system

Based on the results of the work, it is possible to receive feedback on the work performed

Automated load distribution system

It implies the scheduling of teachers and groups of students in such a way that the intersection of classes is excluded

Source: authors

The prospects for the development of artificial intelligence open up opportunities for teachers, partners of educational institutions (parents of students, potential employers, etc.), administrators, as well as real benefits for students. One of the most significant advantages of artificial intelligence in the field of education is the adaptation of the educational process for each student, taking into account its positive and negative qualities. AI algorithms, based on various data, will be able to analyze the student’s learning style, student performance, put forward hypotheses about the quality of the classes, preferences, build an individual educational trajectory for him, capable of adapting to his individual abilities and needs, as well as change the management systems of educational institutions. The introduction of artificial intelligence into the educational system will significantly expand the capabilities of a teacher. It will automate many routine tasks (grading, checking homework, finding the right information for the teacher, and so on). Such programs evaluate students’ knowledge levels, analyze their answers and provide feedback. The AI system will become an indispensable assistant for teachers and students. The application of artificial intelligence can lead to significant changes in the

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educational sphere, it will increase the efficiency of the educational process, as well as the resources spent on its implementation [4]. In the modern world, much attention is paid to the development of the field of artificial intelligence. To solve the problematic situation in the field of artificial intelligence, the Ministry of Education and Science, together with business structures, developed a special module «Artificial Intelligence Systems». The total volume of the module includes 108 academic hours, of which 36 h of practice. Since September 1, 2021, this module was introduced into the training programs of Russian universities [5]. The following large Russian companies participated in the development of the training module: Gazprom Neft, Sberbank, Mail.ru, RFPI and many others. In addition to the introduction of various curricula and disciplines, the number of budget places in universities in areas related to the field of artificial intelligence (study, development, analysis) will increase. Artificial intelligence technologies will be used in educational activities to automate it, as well as to adapt students to it [6]. For a better understanding of the processes of the impact of the artificial intelligence system on the field of education, it is necessary to create a model that will clearly show the course of the formation of intelligent systems [7]. The artificial intelligence implementation model has 5 stages: 1. Design and analysis (description of stages including the timing and resources that are necessary to achieve the goal). 2. Design and refinement (preparation and establishment of the structure of functional and non-functional requirements). 3. Development and process of finding errors in software. 4. Testing (checking for compliance of the developed software). 5. Monitoring and maintenance (providing assistance to users in case of malfunctions and failures).

4 Discussion The concept of artificial intelligence, that is, machines with consciousness, appeared in ancient Greece. In the Middle Ages and Modern times, scientists created mechanisms that were able to replace the human labor [8]. Thus, between 1641 and 1642, the first calculating machine capable of performing additions and subtractions was developed. In the 19th century, the loom was invented to create patterned fabrics with instructions on punched cards. In 1940, a theoretical development was presented as well as an invention of a universal Turing machine, a prototype of a modern computer. The invention was presented in New York in 1939 [9]. After that, other processors began to actively develop the idea of artificial intelligence. It was the Turing machine that became the basic model for computer science and artificial intelligence. After some time, the concepts of strong and weak artificial intelligence were introduced. At present, these concepts have received the names of narrow and general artificial intelligence [10]. Strong AI (general AI) is an artificial intelligence capable of independent thinking, self-awareness. An example of general AI, in theory, can be computers with the ability to think and be aware of themselves as a separate person (in particular, understand their own thoughts). Weak AI (narrow AI) is an artificial intelligence that is managed, trained and controlled by a

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person. An example of narrow AI are specialized applications of artificial intelligence: voice assistants (Siri, Alice, Alexa and others), Google search, image and text recognition software, unmanned vehicles, Netflix and Spotify recommendation systems. The importance of using artificial intelligence in the educational process is a topic for consideration for many scientists from different countries. For example, some scientists say that the use of artificial intelligence in education faces a number of ethical issues that significantly affect the learning process [11]. Other researchers, touching on this topic, conducted a content analysis of the application of artificial intelligence in the educational process, taking into account the eleven principles of ethics, and also identified additional principles that are characteristic of modernity [12]. There is also a study on the use of artificial intelligence in higher education, which draws conclusions about the proportion of fears and distrust of teachers in such tools [13]. All this suggests that the issues of using artificial intelligence in education have not been sufficiently studied yet. There are both positive aspects and those that cause some doubts. In this regard, it is important to further study the topic.

5 Conclusion The model for the introduction of artificial intelligence in the field of education is a fivestage process of interconnected consecutive elements. Therefore, there is a relationship between the stages, while their duration and labor costs may differ. In the next decade, artificial intelligence will play an important role in the educational field. The use of artificial intelligence in the educational process opens up great opportunities for higher education institutions, schools, teachers, students (students and pupils), heads of educational institutions, parents, administrators and providers, and will serve as a catalyst for changes in the future [14]. It is worth noting that the purpose of using artificial intelligence in the field of education is not to replace a teacher, but to facilitate the process of teaching, learning, preparing for disciplines, as well as for effectively preparing students for educational activities. The main goal of the educational process is the formation of educated and responsible citizens. That is why it is necessary to assess possible risks of using such technologies, focus on identifying and solving emerging problems.

References 1. Decree of the President of the Russian Federation No. 490 dated 10.10.2019 on the development of artificial intelligence in the Russian Federation. http://www.kremlin.ru/acts/bank/ 44731. Accessed 30 Jan 2023 2. Amirov RA, Bilalova UM (2020) Prospects for the introduction of artificial intelligence technologies in higher education. Manage Consult 3(135):80–88 3. Buchanan BG (2006) A (very) brief history of artificial intelligence. AI Mag 26(4):53–60 4. Kuksa LP (2017) Artificial intelligence as an educational problem. In: Materials of the AllRussian Scientific and Practical Conference Socio-Humanitarian Knowledge in the System. Novosibirsk State University of Architecture and Civil Engineering (Sibstrin), Novosibirsk, pp. 33–42

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5. Passport of the National Project National Program Digital Economy of the Russian Federation. https://187.ussc.ru/upload/files/Pacpopt%20nacionalnogo%20ppoekta%20”Cif pova%20konomika%20PF”.pdf. Accessed 30 Jan 2023 6. Potapov AS (2010) Artificial Intelligence Technologies, 1st edn. St. Petersburg State University ITMO, St. Petersburg 7. Chiu TKF, Xia Q, Zhou X, Chai CS, Cheng M (2023) Systematic literature review on opportunities, challenges, and future research recommendations of artificial intelligence in education. Comput Educ: Artif Intell 4:100118 8. Sollosy M, McInerney M (2022) Artificial intelligence and business education: what should be taught. Int J Manage Educ 20(3):100720 9. Sanusi IT, Olaleye SA, Agbo FJ, Chui TKF (2022) The role of learners’ competencies in artificial intelligence education. Comput Educ: Artif Intell 3:100098 10. Ka’bi AA (2023) Proposed artificial intelligence algorithm and deep learning techniques for development of higher education. Int J Intell Netw 4: 68–73 11. Sanisi IT, Olaleye SA, Oyelere SS, Dixon RA (2022) Investigating learners’ competencies for artificial intelligence education in an African K-12 setting. Comput Educ Open 3:100083 12. Adams C, Pente P, Lemermeyer G, Rockwell G (2023) Ethical principles for artificial intelligence in K-12 education. Comput Educ: Artif Intell 4:100131 13. McGrath C, Pargman TC, Juth N, Palmgren PJ (2023) University teachers’ perceptions of responsibility and artificial intelligence in higher education – An experimental philosophical study. Comput Educ: Artif Intell 4:100139 14. Ouyang F, Jiao P (2021) Artificial intelligence in education: the three paradigms. Comput Educ: Artif Intell 2:100020

Stable Development in Unstable World: Economic, Environmental and Information Aspects

Process-Based Cost Management Approach: Enhancing Sustainability of Enterprise Development in Modern Conditions I. A. Naugolnova(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. This contribution explores the process-based approach to cost management as a crucial tool for enhancing the sustainability and competitiveness of businesses in modern conditions. The work outlines the fundamental principles and tools of process-based cost management and presents several successful examples of its implementation across various industries. The process-based approach to cost management involves a comprehensive and systematic analysis of an organization’s business processes to identify areas of improvement and optimize resource utilization. By focusing on process efficiency and effectiveness, this approach can lead to significant cost savings while maintaining or improving the quality of products and services. Moreover, the process-based approach to cost management is a valuable tool for businesses to adapt to changing market conditions, regulatory requirements, and customer expectations. By continuously analyzing and improving their processes, organizations can remain agile and competitive, even in uncertain and dynamic environments. The author also discusses the importance of collaboration and communication across different departments and functions within an organization to successfully implement process-based cost management. Additionally, it highlights the significance of employee engagement and empowerment in achieving sustainable cost reductions and improving overall business performance. In conclusion, this author emphasizes that the processbased approach to cost management is a necessary tool for businesses to enhance their sustainability, competitiveness, and adaptability in the modern economy. By continuously improving their processes, organizations can achieve cost savings, maintain or improve product and service quality, and remain agile and competitive in the face of changing market conditions. Keywords: Business Processes · Competitiveness · Cost Management · Process-Based Approach · Resource Utilization · Sustainability

1 Introduction Process-based cost management is attracting increasing attention in the business world as a means of enhancing the sustainability and competitiveness of organizations. It involves a systemic approach to analyzing and optimizing business processes with the aim of identifying areas for cost reduction and resource optimization. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 369–375, 2023. https://doi.org/10.1007/978-3-031-38122-5_51

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Numerous scholars have explored the benefits and challenges of process-based cost management, as well as the critical success factors for its implementation. Many scholars have emphasized the importance of employee engagement and empowerment in achieving sustainable cost reductions. The significance of collaboration and communication between different departments and functions within an organization in the cost management process has also been noted. Furthermore, scholars have examined the role of process-based cost management in improving the sustainability and competitiveness of organizations. Some scholars have argued that process-based cost management can lead to significant cost savings and resource optimization, which can enhance the sustainability and competitiveness of organizations [1]. Similarly, they have highly valued the potential of process-based cost management for improving the quality of products and services, which can increase the competitiveness of an organization [2]. Therefore, the purpose of this work is to study the process-oriented approach to cost management as a critical tool for enhancing the sustainability and competitiveness of organizations. It provides an overview of the fundamental principles and tools of processbased cost management and presents several successful examples of its implementation in various industrial sectors. In addition, the contribution discusses the importance of collaboration, communication, and employee involvement in the implementation of process-based cost management and achieving sustainable cost reduction.

2 Methodology A comprehensive search was conducted across scientific databases, including Scopus, Web of Science, and Google Scholar, to identify relevant literature on the concept of a process-oriented approach to cost management and its impact on the sustainability of business development in modern conditions. A systematic review approach was utilized to analyze and synthesize the literature on the process-based approach to cost management. Scientific articles were thematically analyzed, with an emphasis on identifying the key directions, issues, and prospects of cost management based on processes. The analysis also included a discussion of thematic studies on enhancing the sustainability of enterprises in modern geopolitical conditions. An algorithm for the effective implementation of a process-oriented approach to cost management in Russian companies was developed based on a review of relevant literature and expert opinions. Overall, the materials and methods used in this work allowed for a comprehensive analysis of the problems and prospects of the process-oriented approach to cost management in Russian companies and its implementation using modern digital technologies.

3 Results Process-based cost management has become increasingly important for companies in modern times of high competition and challenging economic conditions. This approach allows organizations to focus on improving their business processes and cost structures, which can lead to significant cost savings, enhanced resource optimization, and improved competitiveness. In addition, process-based cost management can help companies to

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identify and eliminate waste, streamline their operations, and enhance their ability to respond to changing market conditions. In the context of the current geopolitical situation, where companies may face economic sanctions or trade barriers, process-based cost management can help them to reduce their dependence on certain suppliers or markets and diversify their sourcing and distribution channels. Moreover, this approach can enable companies to identify and mitigate risks associated with supply chain disruptions or other unforeseen events. Overall, the advantages of process-based cost management in enhancing the competitiveness and sustainability of organizations make it a relevant and valuable approach for companies to adopt in today’s business environment. By focusing on continuous improvement and optimization of business processes, companies can achieve long-term success and resilience, even in the face of challenging external factors. The implementation and development of process-based cost management in organizations can be challenging and complex. One of the main difficulties is related to the need for a significant change in the organizational culture and mindset, as process-based cost management requires a focus on collaboration, continuous improvement, and employee engagement. Moreover, the implementation of process-based cost management often requires significant investments in technology, data analytics, and training programs. Another challenge is related to the need to balance short-term cost savings with longterm strategic goals and investments. In some cases, the emphasis on cost reductions may lead to neglecting investments in innovation, quality improvement, and sustainability, which can have negative consequences in the long term. Additionally, the complexity of business processes and the diversity of stakeholders involved can create difficulties in identifying and prioritizing cost reduction opportunities and implementing changes effectively. Furthermore, the current business environment characterized by high competition, geopolitical tensions, and economic instability creates additional challenges for organizations in implementing and sustaining process-based cost management practices. The need for rapid adaptation, agility, and risk management requires organizations to continuously reassess and optimize their cost structures and processes, which can be a complex and time-consuming task. Overall, the successful implementation and development of process-based cost management require a comprehensive and strategic approach that takes into account the organizational culture, technology, stakeholder engagement, and long-term strategic goals. Figure 1 presents some advantages and disadvantages of implementing a process-oriented approach to cost management. A lot of the challenges associated with implementing a process-oriented approach to cost management can be addressed through the development of digital programs. These programs can provide real-time insights into cost structures and resource allocation, allowing managers to identify areas for improvement and make data-driven decisions. Additionally, digital tools can automate routine tasks and streamline workflows, reducing the risk of errors and freeing up staff to focus on more strategic activities. Overall, the use of digital solutions can help companies achieve greater efficiency and cost savings, making it an increasingly popular option in today’s competitive business environment.

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Advantages - enhanced cost visibility and control, - improved decision-making based on accurate cost data, - identification and elimination of non-value-added activities, - increased efficiency and productivity, - alignment of costs with business strategy, - enhanced collaboration and communication within the organization, - better understanding of the cost drivers and their impact on the business, - improved quality of products and services, - increased competitiveness and profitability, - enhanced sustainability and resilience in the face of challenges such as high competition and sanctions policies.

Implementati on of processoriented cost management approach

Disadvantages - resistance to change, - lack of employee engagement, - insufficient data and information systems, - inadequate performance measurement and evaluation systems, - difficulties in integrating processes across different departments and functions, - significant investment in new technologies and systems, - the requirement for skilled personnel to design and implement process-based cost management systems, - high complexity of business process modeling.

Fig. 1. Advantages and disadvantages of implementing a process-oriented approach to cost management (Source: author).

Some of the main software products used in the implementation of the processoriented approach to cost management include: Enterprise Resource Planning (ERP) – an integrated enterprise management system that combines functions such as financial management, accounting, production, material supply, project management, and other functions. ERP systems are built on the principle of centralized data storage and allow for the representation of the relationships between different business processes. Business Process Management (BPM) – a methodology for managing business processes that allows for the improvement and optimization of enterprise operations. BPM systems allow for the management of the lifecycle of business processes, from modeling and analysis to optimization and automation. They are based on methods of business process modeling and change management. Cost Accounting Software – software products designed for accounting and analysis of enterprise costs. They allow for the management of budgets, tracking of costs for specific projects or products, analysis of data, and decision-making based on obtained results. They are based on methods of accounting and financial analysis. Activity-Based Costing (ABC) Software – software products that use the ABC methodology for cost accounting. They allow for the determination of the cost of production or services based on the activity required for their production or provision. ABC

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systems allow for the accounting of hidden costs and optimization of enterprise operations. They are based on methods of business process analysis and allocation of costs by activity. SAP S/4HANA is an enterprise resource planning (ERP) system that provides solutions for managing finances, production, procurement, sales, and other business processes. It is based on in-memory computing technology, which allows for real-time analysis of large volumes of data. SAP S/4HANA simplifies and optimizes business processes, improves customer interaction, and enables data-driven decision making. Oracle ERP Cloud is a cloud-based ERP system that includes solutions for managing finances, procurement, production, sales, and other business processes. It is built on the Oracle Cloud platform, which provides security, flexibility, and scalability. Oracle ERP Cloud improves the efficiency of business processes, reduces IT infrastructure costs, and enables data-driven decision making. Microsoft Dynamics 365 is a cloud-based ERP system that includes solutions for managing finances, procurement, production, sales, and other business processes. It is built on the Microsoft Azure platform, which provides security, flexibility, and scalability. Microsoft Dynamics 365 improves the efficiency of business processes, increases employee productivity, and enhances customer interaction. The principles and methods on which these software products are based include the use of intelligent data analysis, automation of business processes, integration with other systems, and a user-friendly interface. They provide companies with tools to optimize cost management and improve overall business processes. A specific mathematical model for the effective implementation of a process-oriented approach to cost management may vary depending on the specific industry, enterprise, and objectives, but the general objective function can be formulated as minimizing costs or product cost. An example of such a model could be a linear optimization problem: Minimize:   (1) C= (i = 1 to n) (j = 1 to m) Cij Xij Subject to: 

(j = 1 to m) Xij ≤ B_i, i = 1, 2, . . . n

(2)

Xij ≥ 0, i = 1, 2, . . . n; j = 1, 2, . . . m

(3)

where: Cij – cost of j-th process for i-th product; Xij – volume of production of j-th process for i-th product; B_i – available budget for i-th product.

4 Discussion Process-oriented cost management has become an essential tool for businesses to enhance their resilience, competitiveness, and adaptability in today’s rapidly changing economy. By focusing on understanding the various processes and activities within

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their organization, businesses can identify cost-saving opportunities and make more informed decisions about how to allocate resources. This approach allows businesses to gain a more comprehensive view of their operations and make strategic adjustments to remain competitive [3–5]. The process-oriented approach to cost management has gained significant attention in recent years due to the rapid development of digital programs and technologies. Researchers have explored the various perspectives on this approach and its potential for improving cost management practices in modern organizations. One notable study by R. Cooper and R.S. Kaplan highlights the benefits of integrating process-oriented costing (POC) with activity-based costing (ABC) to enhance the accuracy of cost information and identify opportunities for cost savings. The researchers argue that POC offers a more comprehensive view of organizational processes, allowing for more effective cost management decisions [6]. Similarly, the work of M. ˙Incekara emphasizes the importance of process-oriented thinking in cost management and describes a framework for integrating process management and cost management in practice. The researcher suggests that a processoriented approach can lead to better alignment between cost management practices and business strategy [7]. In other studies [1, 2] the researchers examine the potential of digital technologies, such as artificial intelligence and blockchain, to support process-oriented cost management [8]. The authors suggest that these technologies can enhance cost transparency, improve decision-making, and facilitate collaboration between stakeholders. Overall, these works demonstrate the growing interest in the process-oriented approach to cost management and highlight the potential benefits of integrating this approach with digital programs and technologies. By focusing on organizational processes, organizations can make more informed cost management decisions, align cost management practices with business strategy, and enhance collaboration between stakeholders.

5 Conclusion Process-oriented cost management enables organizations to react quickly to changes in market conditions and customer demands. By understanding the impact of changes to their processes on costs, businesses can adjust their operations to accommodate shifting market trends and customer preferences, thereby enhancing their ability to remain relevant and competitive. In conclusion, the process-oriented approach to cost management is crucial for businesses seeking to improve their bottom line, adapt to changing market conditions, and gain a competitive advantage. By focusing on processes rather than just costs, businesses can enhance their understanding of their operations and make more informed decisions about how to allocate resources, ultimately leading to improved efficiency and profitability. The development of digital programs allows to eliminate the problems of implementing a process-oriented cost management model in the enterprise by automating processes, increasing transparency and data accuracy, improving analysis and decision-making, as well as providing more effective collaboration between process participants.

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References 1. Kent MB, Costello O, Phelan S, Petrov K (2018) Cost oriented maintenance management systems for manufacturing processes. IFAC-PapersOnLine 51(30):48–53 2. Ding Y, Chen K, Wei X, Yang Y (2022) A novel cost-management system for container terminals using a time-driven activity-based costing approach. Ocean Coast Manag 217:106011 3. Naugolnova I (2021) The process approach to cost management in project-oriented enterprises of engine building. In: Ashmarina SI, Mantulenko VV, Vochozka M (eds) ENGINEERING ECONOMICS WEEK 2020, vol 139. LNNS. Springer, Cham, pp 85–91. https://doi.org/10. 1007/978-3-030-53277-2_10 4. Surkova E, Chaika N (2022) Cost management for quality of business processes. In: Solovev DB, Savaley VV, Bekker AT, Petukhov VI (eds) Proceeding of the International Science and Technology Conference “FarEastSon 2021”. SIST, vol 275, pp 349–358. Springer, Singapore. https://doi.org/10.1007/978-981-16-8829-4_31 5. Sogaxa A, Simpeh EK (2023) Effective cost management practices for enabling sustainable success rate of emerging contractors in the eastern cape province of South Africa. In: Aigbavboa C, et al (eds) Sustainable Education and Development – Sustainable Industrialization and Innovation. ARCA 2022, pp 339–357. Springer, Cham. https://doi.org/10.1007/978-3-03125998-2_26 6. Cooper R, Kaplan RS (1988) How cost accounting distorts product costs. Manag Account 69(10):20–27 7. ˙Incekara M (2022) Determinants of process reengineering and waste management as resource efficiency practices and their impact on production cost performance of small and medium enterprises in the manufacturing sector. J Clean Prod 356:131712 8. Pal A, Tiwari C, Haldar N (2021) Blockchain for business management: applications, challenges and potentials. J High Technol Manag Res 32(2):100414

Issues of Economic Security in Conditions of Russian-African Integration V. A. Noskov(B)

, V. V. Nekrasov , and D. V. Khilov

Samara State University of Economics, Samara, Russia [email protected]

Abstract. The contribution investigates the nature of cross-country mutually beneficial integration models. The integration issues are considered in the context of the participation of the Russian Federation in the process of ensuring the international and national economic security in the global system of the world economy. The possible resources of the Russian Federation and African countries for ensuring the international economic security were analyzed in the framework of this research. The authors put forward a hypothesis that strengthening the influence of the Russian Federation in Africa, the intensification of integration and cooperation relations with the AU countries will ensure the necessary level of the national, international and Eurasian security. The priority directions of the economic interaction between different subjects of the Russian-African integration processes are shown. A number of recommendations are made for Russian exporters and importers. An important role of issues of the international and national economic security in the conditions of the integration of Russia with the countries of the African Union is recognized by various experts of international organizations and companies. Keywords: African Countries · Country Economy · Crisis · Economic Security · Integration · Integration Models · Risks · Russia

1 Introduction A series of economic and political crises showed advantages of the Russian economic and social system. To adopt the Russian experience is impossible without understanding the basic principles of the structure of this society and without deep consideration of the ongoing integration processes. The entire historical experience of cooperation between the countries of the African Union with Russia, and before that with the USSR, speaks of the sincere interest of this country in the development of the African continent. That fact is recognized by the African countries themselves. In the conditions of reformatting the economic structure of the world, there is a unique opportunity to create a new mutually beneficial, fair, community of equal partners, and Russia has something to offer to solve this task. On the African continent, terrorist and extremist groups pose a strong threat to the national security. Some African countries, such as Sudan, Egypt, turned to Russia with © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 376–382, 2023. https://doi.org/10.1007/978-3-031-38122-5_52

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a request for the intervention in order to suppress armed conflicts unleashed by these military groups. The revival and restoration of lost political and economic ties will take a certain period of time, but the mutual benefit from this cooperation is obvious. Based on the foregoing, it is considered promising to study the integration processes of Russia with the countries of the African Union (the AU countries), the influence of these processes on the formation of the policy of the international and national economic security of Russia. It is also important to conduct the subsequent study of possible scenarios for the development of these relations depending on external and internal factors, the construction of predictive models and, on their basis, the development of recommendations for representatives of the Russian business and supporting structures of foreign trade relations. These issues are analyzed and presented by scientists from such organizations as the Institute for African Studies of the Russian Academy of Sciences, the Institute of Asian and African Countries of Moscow State University named after M.V. Lomonosov, the Institute of World Economy and International Relations of the Russian Academy of Sciences, the Center for African Studies of the National Research University Higher School of Economics. A great contribution to the field of the concept of then national economic security was made by such researchers as K.S. Khrupina, I.V. Manakhova, and A.V. Putilov [1], V. Plotnikov, M. Golovko, G. Fedotova, and M. Rukinov [2], M. Yülek, S. Karabulut, and A.O. Karcı [3]. The topic of integration processes between Russia and the countries of the African Union is considered in the work of A.A. Maslov and D.V. Suslov [4], I.O. Abramova [5], I.O. Abramova and E.V. Morozenskaya [6], A.M. Zadorina [7]. In particular, A.M. Zadorina points to serious prospects in terms of expanding areas of cooperation with African countries. As a key integration organization, the public African Union is considered [7]. Its role is enormous in the implementation and coordination of measures to ensure the national and economic security, a qualitative improvement in the life of the population, the formation of the middle class, the stability of the financial system of countries of the African continent. In the financial system, the advantage of regional standards is noted. Despite the presence of a sufficient number of studies and various approaches to the disclosure of the identified issues, at the moment there is no single approach to the creation of cross-country integration models with the participation of Russia, ensuring its national economic security. The authors suggest that strengthening of the influence of the Russian Federation in Africa, the intensification of integration and cooperation relations with the countries of the African Union will ensure the necessary level of the national, international and Eurasian security.

2 Methodology In this research, the authors used system-dynamic, complex, structural-functional and process approaches. Within the framework of these approaches, analysis and synthesis, abstraction, comparison method, economic-statistical and some other methods have been used. At the first research stage, the main prospects for the development of the African countries in the context of the changing geopolitical and economic paradigm of the world

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development were determined. At the second stage, the role of Russia in the new realities of ensuring the economic development and security in Africa and preventing a new round of neo-colonialism is shown. The necessity of striving for a zero trade balance as the basis for the stability of the world economy is substantiated. At the third research stage, an algorithm for building economic interaction between different subjects of integration is proposed: from the intergovernmental to the B2B levels.

3 Literature Review Africa is the fastest growing region in the last decade. This is evidenced by the indicator of total GDP, which reached about 2.4 trillion dollars. The reasons for this rapid growth were changes in the economic model and a number of demographic factors, such as urbanization (50% of the population lives in cities). An analysis of imports of goods and services by the AU countries also indicates a rapid economic recovery. According to I.O. Abramova [5], it amounted to about 7.4 trillion dollars. 70% of imports were provided by the five countries: South Africa, Egypt, Nigeria, Algeria, and Morocco, 20% were provided by Tunisia, Libya, Angola, Kenya, and Ghana. Considering the growth dynamics of the market of imported goods and services, it is necessary to note such countries as Tanzania, Ethiopia, and Mozambique. The growth in the indicator of total imports of the countries of the African continent for the period 2011–2021 amounted to 1.5% annually. The population growth rate is 2.5% per year. The leaders in terms of the import growth are Guinea (11% per year), Mozambique, the Democratic Republic of the Congo (9.5%), South Africa (2.4% per year), Egypt and Algeria (2.1% and 0.2%, respectively). The African continent will soon be the fastest growing region in terms of demand for basic goods and services. The industry and agriculture of the AU countries will not be able to meet the rapidly growing demand of the middle class for quality services due to the limited access to technology, environmental and security problems. In the medium and long term, the most attractive markets for exports will be agricultural (fertilizers, raw materials, food), investment projects, especially in the transport infrastructure, energy (coal, oil products). With the development and globalization of integration processes, the importance of the African market will increase. In fact, it has entered a new stage of integration after the full operation of the African Continental Free Trade Area and has become the largest regional mega-block. Russia’s position in the foreign policy with the AU countries is aimed at cooperation and ensuring the international and national security. The fundamental event in building the trajectory of relations between Russia and Africa was the Russia-Africa summit held in 2019 [4]. As a result, a document was adopted – a joint declaration – that brings the Russian-African relations to a new level, a voluminous package of agreements consisting of 92 agreements and contracts was signed. The document mentions the 2063 Agenda of the African Union and outlines the main advantages of the Russian policy compared to other world powers, namely a fair approach to the distribution of world resources and wealth, as a guarantee of the global economic security. Russia is striving to form stable and productive relations with the main integration partner on the continent – the African

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Union. Political and economic cooperation with the African Union will allow Russia to expand the boundaries of its influence on the continent and ensure its national and economic security. A lot of work is being done to further develop the entire range of mutually beneficial Russian-African relations. Previously reached agreements are being consistently implemented in such areas as trade, economy, science, humanitarian and investment projects. A number of Russian companies in Africa is constantly growing, including both small and medium-sized enterprises and subsidiaries of large state corporations, such as Rosatom. The share of the Russian exports has increased significantly: according to the Federal Customs Service of the Russian Federation, over the past 10 years, more than 3 times (up to $17.5 billion). The number of African students studying in Russia has increased (3 times over the period from 2011 to 2021) [8].

4 Results There are also some shortcomings in the current foreign economic policy of Russia in relation to the African continent. This is the absence of a single comprehensive strategy. So far, isolated actions and initiatives have been observed on the Russian side. For African partners, this makes them doubt the reliability and more balanced attitude towards participation in long-term projects. The next important step in the development of the Russian-African relations should be the second Russia-Africa summit, which will be held in St. Petersburg in the summer of 2023. It is designed to give a new impetus and expand the range of interaction. The balance of payments makes it possible to comprehensively assess the balance of the system of foreign economic relations: the reliability of the national currency, the peculiarities of financial settlements, the solvency of the country, and the efficiency of the economy. The main purpose of the balance of payments is to equalize imbalances in the system of the international settlements. A country may not draw up a balance of payments, but the impact of interrelations in the system of state relations on the domestic sector is inevitable. In turn, the internal sector influences the state of the external sector. Any changes in the structure of the balance of payments lead to changes in the country’s economy. Economic crises are characterized by a pronounced imbalance in the balance of payments. The balance of payments is a set of economic relations that develop in the country under the influence of external systems and have an impact on macroeconomic processes. The functions of the balance of payments include: first, kit is an indicator in the transitional economy; second, it serves to the elimination of imbalance in the system of international payments; third, it has certain impact on the balance of the country’s budget, inflation. The consequences of changes in the world monetary system are different for countries with developed economies and countries that are at the stage of transition to a new economic system. Analysis of the state of the balance of payments is carried out by various methods of calculation, which provide extensive material for a deep and comprehensive study of it and the construction of a predictive model. The results of the analysis make it possible to study and better understand the dynamics of foreign exchange funds and capital.

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With non-stationary economic processes in the country, the course towards a zero balance of the total balance of payments is not always the right decision; in this case, it is necessary to attract external investment. Strengthening the flow of foreign investment is possible only if favorable conditions are created in the economic policy. It should be noted that in modern realities, an active state of the balance of payments can be used as a tool to counter the economic pressure from competitors. This is especially true for the AU countries in countering the pressure of some Western countries. To effectively build the economic interaction of the subjects of integration among themselves, it is necessary to do the following. At the first stage, goals and prerequisites for integration, the expected results are determined; at the second stage – the subjects of integration; further, interaction technologies (integration technologies) are worked out and agreed between the participants of the integration community; the system of interaction is analyzed through the prism of assessing the application of the reproduction approach; ways to the effectively implementation of the competitive advantages of the integration subjects are identified. The authors improved the conceptual model for the formation of conditions for effective integration and effective interaction of subjects, which was proposed earlier by R.Kh. Shkezhev [9] and later considered by K.M. Bagdasaryan [10]. The model includes a block diagram of the interaction of modules of an industry cluster (Fig. 1) and an algorithm for building the economic interaction between integration subjects (Fig. 2). When developing the model, the concepts of reproduction processes and functioning of the cluster as a single technological complex based on modern integration technologies were taken into account. The structural scheme is based on the following basic principles: 1) the modules of an industry cluster interact with each other through integration technologies. The methodology of interaction, the definition of the content of integration technologies (which ones, the sequence of application at various stages of building the economic interaction) are based on practical experience, have not yet been fully formed and need additional elaboration; 2) a thorough study of the organizational and legal support of the integration technology management system is necessary. This will significantly increase the rate of fulfillment of obligations under cooperation agreements. Integration processes will require multi-sectoral interstate cooperation. It is expedient to separate the functions of managing this interaction into a separate block of centralization and move it to the top level of the integration management system. At the same time, the subject of the cluster undergoes certain training before entering into the integration interaction. The author proposes an algorithm that will allow a comprehensive analysis of possible integration options both at the level of individual countries and at the level of individual industries. The proposed algorithm can become an effective tool for building the economic cooperation with the countries of the African continent and for Russia to solve its own strategic tasks to strengthen its position in the global system of the world economy and ensure the international and economic security.

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Industrial enterprises

Choice of integration technologies

Technologically dependent enterprises and organizations

Organizational and legal support of the integration technology management system

Institutional structure Enterprises

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Integration technology management system

Fig. 1. Structural diagram of the interaction of modules of an industry cluster (Source: authors).

Determining the goal of integration

Cluster assessment at the regional level

Analysis of interaction alternatives

Development of interaction methodology and selection of integration technologies

Development of organizational and legal support for the integration technology management system

Transfer of integration management functions to the interregional level and intergovernmental Fig. 2. Algorithm for building economic interaction between subjects of integration (Source: authors).

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5 Conclusion The research made it possible to conclude that the development of the processes of integration of the countries of the African Union with the Russian Federation, the development of cross-country mutually beneficial integration models with the participation of Russia is one of the key factors for ensuring its international and national economic security in the global system of the world economy. The authors analyzed the main prospects for the development of the African countries in the context of a changing geopolitical and economic paradigm of the world development and showed the role of the Russian Federation in increasing the economic sovereignty of the African countries and preventing a new round of neo-colonialism, assessed the conditions for the stability of the world economy, proposed a number of recommendations related to possible options for integration models, both for the interested institutions of the African Union and the Russian Federation and an algorithm for building the economic interaction between the subjects of integration.

References 1. Khrupina KS, Manakhova IV, Putilov AV (2022) Developing of smart technical platforms concerning national economic security. In: Klimov VV, Kelley DJ (eds) Biologically Inspired Cognitive Architectures 2021, Studies in Computational Intelligence, vol 1032. Springer, Cham, pp 208–215 2. Plotnikov V, Golovko M, Fedotova G, Rukinov M (2020) Ensuring national economic security through institutional regulation of the shadow economy. In: Popkova EG, Sergi BS (eds) ISC 2019, vol 87. LNNS. Springer, Cham, pp 342–351 3. Yülek M, Karabulut S, Karcı AO (2023) On economic security and the political economy of neocolonialist capitalism: the case of France and Niger’s uranium resources. In: Ari A (ed) Capitalism at a Crossroads. Springer, Cham, pp 159–180 4. Maslov AA, Suslov DV (2022) Return to Africa: how to make it a Russian priority. Russ Global Aff 20(1):130–148 5. Abramova IO (2018) Africa in the modern model of the world order: a powerful player or an outsider? Outlines Global Transform: Polit Econ Law 11(5):6–21 6. Abramova IO, Morozenskaya EV (eds) (2016) Africa: Modern Strategies for Economic Development. Institute for Africa RAS, Moscow 7. Zadorina AM (2018) The policy of Russia and its Eurasian partners on integration in expanding cooperation and security with the countries of the African Union: breakthroughs and difficulties. Int Cooperation Eurasian States: Polit Econ Law 1(14):64–71 8. Declaration of the First Russia-Africa Summit. http://www.kremlin.ru/supplement/5453. Accessed 01 Aug 2022 9. Shkezhev R (2012) Strategic management of the interaction of the subjects of integration structures of the regional economy. Reg Econ Manage: Electron Sci J 2(30):3001 10. Bagdasaryan KM (2019) Analysis of an economic integration model. Russ J Econ Theory 16(3):352–361

Identification of Factors Reducing Effectiveness of Institutional Regulation of Financial Capital Market A. Abuzov(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. The financial capital market is crucial for the stability and growth of the global economy, and its proper regulation is essential to prevent systemic risks and strengthen the investor confidence. However, in recent years, the effectiveness of the institutional regulation in the financial capital market is a subject of consideration due to several high-profile cases of the market manipulation, fraudulent activity, and the bankruptcy of one of the largest US banks. The aim of this work is to identify factors responsible for the decreased effectiveness of the institutional regulation in the financial capital market. The author begins with a review of the existing literature on this topic and the identification of key themes and factors. The research results point to a lack of resources and expertise, ineffective enforcement mechanisms, and regulatory capture as some of the main factors contributing to the decreased effectiveness of the institutional regulation in the financial capital market. The author also examines potential solutions to address these issues including increased funding, improved coordination and information sharing between regulatory bodies, the use of modern digital technologies, adaptive approaches, greater transparency and accountability in the regulation process. By identifying these factors and proposing solutions, this work makes a valuable contribution to the ongoing discussion on how to improve the effectiveness of the institutional regulation in the financial capital market. Keywords: Accountability · Financial Capital Market · Institutional Regulation · Market Manipulation · Regulatory capture · Transparency

1 Introduction The financial capital market plays a crucial role in the global economy serving as a platform for companies to raise capital and for investors to seek returns. However, the market is also inherently complex and prone to various risks, including the market manipulation and fraudulent activities. Institutional regulation is necessary to ensure that the market operates fairly and efficiently, and to prevent systemic risk that could threaten the stability of the financial system. In recent years, the effectiveness of institutional regulation in the financial capital market has been called into question. Several high-profile incidents of the market © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 383–388, 2023. https://doi.org/10.1007/978-3-031-38122-5_53

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manipulation and fraudulent activities have highlighted a need for greater security and accountability in the regulatory process. To address these issues, it is necessary to identify factors that are responsible for reducing the effectiveness of the institutional regulation in the financial capital market. This contribution investigates the ongoing discussion on the topic by conducting a review of the existing literature. By synthesizing and analyzing the key themes and factors that have been identified in previous studies, the author provides insights into the current state of the regulation in the financial capital market and identifies specific areas where improvements are needed. The financial capital market is a complex and dynamic system that requires effective institutional regulation to ensure that it operates fairly and efficiently. There is a significant body of literature in which the researchers consider the effectiveness of the institutional regulation in the financial capital market with a focus on identifying factors that contribute to the regulatory success or failure. One important research area covers goals and objectives of the institutional regulation. According to S. Malovaná, M. Hodula, Z. Gric, and J. Bajzík, the primary objectives of the financial market regulation are to maintain the stability, protect investors, and promote the market efficiency [1]. However, achieving these objectives can be challenging due to the complexity of the financial capital market and the potential for regulatory capture by powerful market participants [2]. Another research area has focused on challenges and limitations of the regulatory process. For example, B.S. Black argues that regulatory agencies are often subject to political pressure which can lead to a lack of independence and effectiveness [3]. Additionally, Y. Bian, X. Xiong, and J. Yang note that regulatory agencies may lack resources and expertise necessary to effectively monitor and enforce regulations in the financial capital market [4]. Several authors have also identified specific factors that contribute to the regulatory effectiveness or ineffectiveness. For example, S. Khodabandehlou and S.A.H. Golpayegani highlight the importance of regulatory coordination and information sharing in detecting and preventing the market manipulation [5]. Similarly, V.V. Acharya, T.F. Cooley, M.P. Richardson, and I. Walter argue that effective enforcement mechanisms, such as penalties and sanctions, are necessary to deter fraudulent activities in the financial capital market [6]. Despite the significant research on this topic, there is still much debate about how to improve the effectiveness of the institutional regulation in the financial capital market. Some experts advocate for increased funding and staffing for the regulatory agencies [4], while others suggest that greater coordination and information sharing among the regulators is necessary [5]. Some researchers still argue that increased transparency and accountability in the regulatory process are essential to restoring the investor confidence in the financial capital market [3]. In summary, the literature on the institutional regulation in the financial capital market highlights the importance of effective regulation for maintaining the market stability, protecting investors, and promoting the market efficiency. While there are many challenges and limitations to the regulatory process, identifying and addressing specific

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factors that contribute to the regulatory effectiveness or ineffectiveness are essential for ensuring the long-term health and stability of the financial capital market.

2 Methodology In this study, we used the following databases and websites: EconLit, Google Scholar, ResearchGate, SSRN, and university websites such as Harvard University, MIT, University of Cambridge, and University of Chicago. To study the works of Nobel laureates in the field of institutional regulation and outstanding scholars, we examined their articles, monographs, and books to gain a more comprehensive understanding of institutional regulation in the financial sector and identify factors that can reduce the effectiveness of this regulation. In addition, we conducted an analysis of recent publications and research related to adaptive approaches to the financial market regulation and new technologies in this field. We studied the works of researchers who propose new ideas and approaches to the financial market regulation. Based on these sources, we formulated our conclusions and recommendations for improving the effectiveness of the institutional regulation of the financial capital market.

3 Results The key factors that diminish the effectiveness of the institutional regulation in the financial capital market are: – – – – – –

political interference and inadequate independence of regulatory bodies; insufficient coordination and information sharing among the regulators; lack of resources and expertise in the regulatory agencies; inadequate transparency and accountability in the regulatory process; potential for regulatory capture by powerful market participants; ineffective enforcement mechanisms and sanctions, necessary for preventing fraud and other illicit practices in the financial capital market; – complexity of financial capital and its instruments which makes the task of regulation and oversight quite challenging. Some factors that reduce the effectiveness of the institutional regulation of the financial capital market may be exacerbated in the context of digitization, geopolitical instability, and sanction policies. For instance, the political interference and insufficient independence of regulatory bodies can be intensified in the context of the geopolitical instability and sanction policies when governments use regulatory bodies to achieve their political goals or pressure them to soften regulations in the interest of national companies. Insufficient coordination and exchange of information between the regulators can be worsened in the context of digitization when many new players enter the market and use new technology which complicates the task of regulators. The complexity of financial capital and its instruments makes the task of regulation and monitoring difficult. Besides, it can be intensified in the context of digitization when new technologies and instruments emerge on the market. Ineffective enforcement and sanctioning mechanisms can be exacerbated in the context of the geopolitical instability and sanction policies when some market

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players may resist the regulation and sanctioning due to their influence or the national protection. Some factors that contribute to increasing the effectiveness of the institutional regulation of the financial capital market may include: – independence of regulatory bodies and absence of political interferences; – -coordination and fair information exchange among the regulators, including at the international level; – adequate resources and expertise available to the regulatory bodies; – transparency and accountability in the regulatory process, including open discussion and feedback from stakeholders; – effective enforcement and sanctioning mechanisms that can prevent fraud and other misconduct in the financial capital market; – modern technologies that aid in monitoring and overseeing the financial capital market; – flexible and adaptive approaches to the regulation that can respond to changes in the market environment; – international standards and norms that help ensure consistency and cooperation among the regulatory bodies in different countries (Fig. 1).

Fig. 1. Hindering and promoting factors of the effective institutional regulation in the financial capital market (Source: author).

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4 Discussion Modern technologies, flexible and adaptive regulatory approaches can significantly improve the effectiveness of the institutional regulation of the financial capital market. Modern technologies that help monitor and observe the financial capital market may include: – blockchain technologies to ensure the security and integrity of financial transactions, – artificial intelligence (AI) and machine learning to analyze large volumes of data and detect anomalies in the market, – computer vision and image analysis to monitor trading on the exchange and detect violations, – cloud technologies for storing and processing large volumes of data, – Internet of Things (IoT) for collecting data on the market and financial transactions, – Big Data for analyzing transactions, predicting market trends, and identifying risks, – cybersecurity and protection against cyber-attacks to ensure the security of financial data and customer information. There are numerous researchers who have proposed various flexible and adaptive approaches to regulating the financial market. D.C. North argued that the effectiveness of the financial market regulation depends on the institutional environment where it operates. According to him, the main instrument for increasing the efficiency of the institutional regulation is strengthening the property rights and the judiciary. In his works, D.C. North identifies three key elements for strengthening the property rights: a legislative framework, the property protection, and the ability to enter into contracts [7]. He also emphasized the importance of developing the competition and reducing the state intervention in the economy. Thus, D.C. North proposed not only to strengthen the legal and institutional environment for regulating the financial market but also to develop the competition and limit the state intervention. In his opinion, these measures can increase the efficiency of the financial market regulation and improve economic growth [7]. R.C. Merton suggested the use of risk modeling and assessment to enhance the effectiveness of the financial market regulation. He developed models that allow the assessment of risks and the prediction of market behavior under uncertainty and variability. He argued that the use of such models could help predict the potential consequences of risky investments and improve the quality of decisions made in the market. In his work, Merton also emphasized the importance of the balanced regulation that takes into account both the interests of investors and the interests of society as a whole [8]. A.W. Lo, a professor of finance at MIT Sloan School of Management, proposed a concept of adaptive regulation based on the principles of evolutionary biology. According to this concept, regulation should be based on the principles of heredity, variability, and natural selection. That will create a more effective and sustainable financial system [9, 10]. D.W. Arner, J.N. Barberis, and R.P. Buckley studied issues related to the regulation of financial technologies and Blockchain. They suggests creating a flexible regulatory system that would allow quick adaptation to new technologies and market changes [11].

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H.J. Chang advocates for improving the regulation of the financial sector through the state intervention and tighter control over financial institutions [12].

5 Conclusion This work highlights some challenges facing the regulatory institutions in the financial capital market. The study identifies several factors that reduce the effectiveness of the institutional regulation such as the complexity of financial instruments, the internationalization of financial markets, and the lack of cooperation among the regulatory bodies. However, the emergence of new technologies and adaptive approaches, such as those proposed by [8, 11–14], offer promising solutions to these challenges. These approaches are based on the principles of evolutionary biology, flexible regulation, state intervention, and the use of macroprudential tools. By adopting these new technologies and approaches, the regulatory institutions can improve their effectiveness and create a more stable and sustainable financial system. In conclusion, the author emphasizes the importance of recognizing the limitations of the traditional institutional regulation and embracing new technologies and adaptive approaches to improve the effectiveness of the financial capital market regulation.

References 1. Malovaná S, Hodula M, Gric Z, Bajzík J (2023) Macroprudential policy in central banks: Integrated or separate? survey among academics and central bankers. J Finan Stab 65:101107 2. Shleifer A, Vishny RW (1997) A survey of corporate governance. J Finan 52(2):737–783 3. Black BS (2001) The legal and institutional prerequisites for strong securities markets. UCLA Law Rev 48:781–855 4. Bian Y, Xiong X, Yang J (2022) Investor protection, hedge fund leverage and valuation. North Am J Econ Finan 62:101710 5. Khodabandehlou S, Golpayegani SAH (2022) Market manipulation detection: a systematic literature review. Expert Syst Appl 210:118330 6. Acharya VV, Cooley TF, Richardson MP, Walter I (2010) Regulating Wall Street: The DoddFrank Act and the new Architecture of Global Finance, 1st edn. Wiley, New Jersey 7. North DC (1990) Institutions, Institutional Change and Economic Performance (Political Economy of Institutions and Decisions), 59262nd edn. Cambridge University Press, Cambridge 8. Merton RC (1974) On the pricing of corporate debt: the risk structure of interest rates. J Finan 29(2):449–470 9. Lo AW (2004) The adaptive markets hypothesis. J Portf Manag 30(5):15–29 10. Lo AW (2012) Reading about the financial crisis: a twenty-one-book review. J Econ Lit 50(1):151–178 11. Arner DW, Barberis JN, Buckley RP (2015) The evolution of FinTech: A new post-crisis paradigm? University of Hong Kong Faculty of Law Research Paper No. 2015/047, UNSW Law Research Paper No. 2016-62 12. Chang HJ (2014) Economics: The User’s Guide. 1st edn. Pelican, New York 13. Black F, Scholes M (1973) The pricing of options and corporate liabilities. J Polit Econ 81(3):637–654 14. Malmierca M (2023) Optimal macroprudential and fiscal policy in a monetary union. Econ Model 122:106238

Multi-vector and Balance as Mandatory Conditions for Sustainable Economic Development S. V. Andreeva(B) Samara State University of Economics, Samara, Russia [email protected] Abstract. The contribution is devoted to the issues of sustainable development of the economy in the context of global contradictions. The current stage of economic development is characterized by an increased influence of negative factors, which significantly reduces the stability of the economy and increases the depth and duration of the economic crisis. The category of «economic sustainability» is complex, determined by a wide range of different factors. Sustainable functioning of the economy is determined by the interdependent action of technological, environmental and social factors. The influence of negative factors is synergistic in nature and leads to the formation of crisis modules that make it difficult for the system to return to the pre-crisis state. To prevent the emergence of such critical areas and their effective resolution, it is necessary to timely identify new factors. The instability and imbalance of the economy are determined, first of all, by factors for which adaptation and counteraction mechanisms have not yet been developed. The higher the rate of dynamics and transformation of the economy is, the more important it is to identify such destabilizing factors. As factors require their clearer identification and control to ensure the sustainable development of the economy, the contribution identifies risks of digitalization and threats to the biological integrity of a human. Timely identification of instability factors is a mandatory step in the policy of reducing the level of economic instability. Keywords: Balance of the Economy · Factors of Sustainable Development · Sustainable Development of the Economy

1 Introduction Modern research in the field of economics demonstrates the interest of researchers in vrious interpretations of its sustainable development. Despite the usual terminology, sustainable balanced development of the economy is currently a phenomenon of exceptional complexity. This is due to the dynamic transformation of economic relations in the context of the priority influence of information technology, breakthrough achievements in science and technology, which ensure the acceleration of economic growth. At the same time, the risks of economic vulnerability increase due to the action of factors for which adaptation and counteraction mechanisms have not yet been developed. And the higher the pace of dynamics and transformation of the economy is, the more important it is to ensure its balance in order to reduce the level of uncertainty and instability. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 389–394, 2023. https://doi.org/10.1007/978-3-031-38122-5_54

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The current stage of development of the world economy is unfolding against the backdrop of geopolitical changes, aggravation of conflicts over the possession of resources, and restructuring of state institutions. For the Russian economy, the situation is complicated by the unprecedented volume of sanctions, the breaking of traditional business ties that have been formed over decades. This situation requires updating approaches to the study of conditions for sustainable development of the economy. Numerous scientific publications in this direction do not relieve the issue. Updates require questions regarding the nature and manifestation of factors of influence and mechanisms for ensuring the sustainable development of the economy in the context of global contradictions.

2 Methodology This contribution is devoted to the development of theoretical and methodological foundations for ensuring the sustainable development of the economy. The information basis of this work was the results of scientific works of Russian and foreign authors devoted to the issues of the economic sustainability at the macro level. The theoretical basis of the study is the concept of cyclic dynamics of socio-economic systems, the contribution to the development of which was made by the outstanding scientists J.M. Keynes [1], K. Marx [2], P.A. Sorokin [3], M.I. Tugan-Baranovsky [4], J.A. Shumpeter and J. Stiglitz [5] and the author of the theory of long waves – N.D. Kondratieff [6]. In particular, the provisions of this concept were used on achieving a balanced development of productive forces, on the use of a system of parameters, criteria and factors to ensure the sustainable development of socio-economic systems. By sustainability, we understand the ability of a system to recover from the impact of negative factors. At the same time, for the economy, as a dynamic system, it is necessary not only to return to the previous indicators, but also to the pre-crisis development trends. In this case, we should talk about maintaining the dynamic equilibrium of the economic system. If the latter fails to return to its previous positions and trends, then such a system can be considered unstable. The author uses systemic and structural-functional methods, as well as a dialectical approach to the study of economic phenomena and processes of the contemporary period.

3 Literature Review The content analysis of scientific literature on the topic of sustainable development of the economy revealed that the researchers consider the interdependence of the sustainable functioning of the economy with the environmental, social and technological development of our society with the basic conceptual approach. A feature of the modern period is the increased influence of shocks and shocks of internal and external origin, which sharply reduce the possibility of sustainable functioning of the economy in the long term and increase the depth and duration of economic crises [7]. The authors note the apparent inability of the classical theory of long waves and cycles to explain the negative crisis state of national economies in the context of globalization. At the same time, some researchers deny the existence of Kondratieff’s cycles outside the 19th century, justifying this by the fact that the latest world crises are characterized by a

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non-cyclical nature and differ from the models known in science [6]. Modern crisis states are permanent in their nature, the exit from them no longer demonstrates the restoration of high rates of development. Other researchers point to the prospects of improving the theoretical and methodological foundations of the concept of cyclical and non-equilibrium development of the economy in modern conditions [8–11]. The main trend is to conduct research based on the theory of technological modes, which has a fundamental advantage due to its systematic character [12–14]. The material basis for the sustainable development of the economy is a new technological order, the core of which is a combination of digital, information, bioengineering, cognitive, additive and nanotechnologies [15, 16]. Considering the impact of technological development as a priority for the modern development of the economy, experts identify a number of factors that worsen the stability of the national economy: a) the simultaneous presence in its contour of both advanced industries and sectors that do not meet the requirements of the modern technological order; b) incomplete transition to the sixth technological order; c) an unbalanced ratio of investment volumes and the needs of reindustrialization and modernization of the economy [17]. The modern concept of sustainable economic development is inextricably linked to global environmental issues. Researchers substantiate the need for a transition to a circular economy, a balanced interaction of ecological and economic systems [18]. The improvement in the environmental situation as a result of a significant economic decline under the influence of the COVID pandemic has shown the inadequacy of existing production and consumption patterns due to their burden on the environment. Postpandemic transformations are so global in their nature that they can become an impetus to change the world order and the formation of a new model for the development of civilization [19]. Solving the issues of ensuring the sustainability of the economy is impossible without taking into account the influence of the social component. The content of this element is the maintenance of the stability of the social sphere, the most complete satisfaction of the material and spiritual needs of the population, the development of human capital, concentrating the competencies of individuals. The effectiveness of the development of the social component, as a factor in the sustainability of the national economy, in turn, is determined by the quality of the horizontal links of individuals, established social norms, goals and values [20].

4 Results A review of scientific sources and positions of various researchers made it possible to identify a number of relevant and innovative aspects and formulate appropriate conclusions. As noted above, the sustainability of the development of the economic system is traditionally viewed as the result of an interdependent balanced development of environmental, social and technological elements. However, we believe that in modern conditions the number of influence vectors that determine the degree of sustainability of economic development should be increased. The rationale for this point of view is the following: the influence of all factors is complex, their impact leads to the diffusion and formation of a kind of crisis blocks.

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The more complex the block is, the higher the threat of non-return to the pre-crisis state of the system and the restoration of a positive trend are. In order to prevent the emergence of such critical areas, as well as to ensure compensatory effects, it is necessary to timely identify new objects of attention (vectors of influence). This approach is aimed at ensuring greater balance and sustainability of economic systems, which is especially important for the Russian economy with its high sectoral and regional differentiation. Also, this importance is explained by a very rapid and radical change in the economic formation and economic conditions of the national economy in the post-perestroika period, which also determines the severity of the problem of its balanced progressive development. We single out additional areas that require control in order to ensure a balanced sustainable development of the economy and society as a whole. First, there are digitalization risks. The analysis of scientific works has shown that the modern development of productive forces is considered as a priority through the prism of digitalization. We believe that in order to study the sustainable balanced development of the economy, the question of the risks posed by the rapid pace of digitalization of the economy should be raised. The results, reflecting the beginning of institutional changes under the influence of digitalization, are interpreted by experts very carefully. In particular, a letter signed by a large group of specialists in the field of digital technologies was posted calling for stopping the training of neural networks [21]. According to the authors of the letter, artificial intelligence systems comparable to human ones can pose a danger to our civilization. An example that disrupts the balance of resources in the economy is the restructuring of the modern labor market under the influence of digital technologies: the format of relations between the organization and the employee is changing (the latter from the social status of «employee» goes into the category of «participant in algorithmic relationships»); the level of the social protection of personnel is reduced. Entire professional segments are shrinking, and new ones are emerging to replace them. It is assumed that a huge amount of labor will be released as a result of the production robotization, and as a result there is a formation of new areas of activity that ensure the compensatory involvement of human resources in them. Since digital technologies affect all aspects of the economy, a preventive adaptation of the national economy to a positive and flexible perception of the results of digitalization should be ensured. Secondly, the risks of the biological integrity of the human nature. Human as a biological being can exist only in a certain range of conditions for his survival, which must be maintained. Until recently, this aspect was considered exclusively from the point of view of the interdependent influence «Human – Environment»: human activity worsens the ecological state of the environment of its existence, and in response receives the negative influence of environmental factors. However, the events of recent years make us take a broader look at the issue. The spread of the Coronavirus infection has shown the detrimental consequences for humans of the biological weapons they have created. Advanced scientific technologies are promisingly aimed at overcoming old age, improving physical characteristics. However, the uncontrolled use of these technologies can lead to the emergence of a «post-human», which completely changed the human

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nature through genetic engineering, improvement and transformation of the body, differentiation of personality between a biological and technological carrier, etc. [22, 23]. It should be noted that the risks of the prospective application of new technologies aimed at changing the human nature have not yet received proper coverage. This, in turn, may cause delayed development and application of regulatory documents governing the use of these technologies.

5 Conclusions The current stage of economic development is characterized by an increased influence of negative factors that reduce the stability of the economy and increase the depth and duration of crisis conditions. This determined the relevance of this study, aimed at developing the issues of sustainable development of the economy in the context of global contradictions. The study of the category «economic sustainability» made it possible to consider it as a very complex one, determined by a wide range of factors. They include interdependent groups of environmental, social and technological factors. It has been established that the instability and imbalance of the economy are determined, first of all, by factors for which adaptation and counteraction mechanisms have not yet been developed. The higher the rate of dynamics and transformation of the economy, the more important it is to identify such destabilizing factors. As topical areas that require their clearer identification and control in order to ensure a balanced sustainable development of the economy, we have identified the risks of digitalization and threats to human biological integrity under the influence of the uncontrolled use of genetic engineering technologies, biological transformation, integration of biological and technological carriers. Timely identification of factors of instability, including on the basis of weak signals, should be considered as the most important component of the policy of reducing the level of instability in the economic development.

References 1. Keynes JM (2018) General theory of employment, interest and money, 1st edn. Palgrave Macmillan, Cham 2. Marx K (2014) Capital: a critique of political economy, 2nd edn. Mann, Ivanov & Ferber, Moscow 3. Sorokin PA (1992) Man. Civilization. Society, 1st edn. Politizdat, Moscow 4. Tugan-Baranovsky MI (1997) Periodic industrial crises. History of English crises. General theory of crises. Science Russian Political Encyclopedia, Moscow 5. Schumpeter JA, Stiglitz J (2010) Capitalism, socialism and democracy, 1st edn. Routledge, London 6. Kondratieff ND (2003) Large cycles of conjuncture and the theory of foreseeing. Selected works. Vopr Ekon 8:153–154 7. Demchenko SK, Salomatova TG (2009) Problems of managing structural changes in the Russian economy. Sci Notes Russ Acad Entrepreneurship 20:48–58

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8. Fomina MV, Deshchenko A (2021) Global sustainable development in the context of a systemsynergetic approach. In: Kosheleva EG (ed) International scientific and practical conference «geographical and economic research in the context of sustainable development of the state and the region», Donetsk, 2021. Donetsk National University, Donetsk, pp 314–316 9. Glazyev S (2012) Modern theory of long waves in the development of the economy. Econ Sci Mod Russ 2(57):27–42 10. Schoder C (2020) A Keynesian dynamic stochastic disequilibrium model for business cycle analysis. Econ Model 86:117–132 11. Sukharev OS (2021) Neo-Schumpeterian direction in economic science: modern research. Bull Inst Econ Russ Acad Sci 1:71–85 12. Glazyev S (2022) Global transformations from the perspective of technological and economic world order change. AlterEconomics 19(1):93–115 13. Gusarov Y (2006) Using the methodology of economic dynamics in forecasting and strategic planning. Econ Strat 8(50):30–37 14. Sukharev OS, Voronchikhina EN (2021) Theory of technological mode in the structural analysis of growth of Russian economy. Russ Econ J 1:74–108 15. Glushchenko VV (2020) Scientific theory of technological structures and its application in the management of socio-economic development. Mod Sci Res Innov 2(106):11 16. Oborin MS (2022) Economic security of industrial enterprises in the digital economy. Vestnik Samara State Univ Econ 1(207):44–54 17. Peftiev VI (2010) New political economy: vectors of conceptual searches. Yaroslavl Pedagog Bull 2(1):254–258 18. Ghisellini P, Cialani C, Ulgiati S (2016) A review on circular economy: the expected transition to a balanced interplay of environmental and economic systems. J Clean Prod 114:11–32 19. Fomina MV, Prikhodko VV, Selezenev AV (2021) Global economic development: on the issue of transformation in the post-pandemic period. In: Nekrasova OL (ed) Formation of a geoeconomic strategy for the development of the region during the coronavirus pandemic. FLP Kirienko S.G, Donetsk, pp 80–87 20. Kunchenko AV, Karpenko EV (2022) The role of social capital as a factor of socio-economic development of the region and the state. Econ Bull Donbass State Tech Inst 13:26–30 21. Elon Musk and other tech leaders call for pause on ‘dangerous race’ to make A.I. as advanced as humans. https://www.cnbc.com/2023/03/29/elon-musk-other-tech-leaderspause-trainingai-beyond-gpt-4.html. Accessed 25 Apr 2023 22. Balyk AS, Semkina EN (2020) Globalization, technologization, informatization, digitalization: modern trends transforming society. Philosophical understanding of risks and threats. Sib Anthropol 4(3):185–193 23. Novikova AM, Peftiev VI, Titova LA (2012) Challenges of globalization: conceptual notes. Bull Ivanovo State Univ Ser Econ 3(18):56–60

Perspective Directions of Institutional Transformations of the Economy Ecologization M. V. Kislinskaya1

, S. V. Sharokhina2(B) and E. V. Kornilova1

, N. V. Guseva3

,

1 Lobachevsky State University of Nizhny Novgorod, Nizhny Novgorod, Russia 2 Syzran Branch of Samara State University of Economics, Syzran, Russia

[email protected] 3 Syzran Branch of Samara State Technical University, Syzran, Russia

Abstract. The contribution investigates the expediency of using institutional economic theory to form theoretical foundations of the ecologization of the economy. The fact is argued that the institutional structure of the Russian economy does not have any stimulating effect on the processes of the own ecologization. Besides it is not formed as a single integral system. It is argued that economic relations are inextricably linked with the emergence and development of a system of institutions that ensure the interaction of business entities under environmental restrictions. Institutions eliminate the uncertainty of economic relations regarding the application, exchange, distribution, consumption of natural goods and services. The authors believe that the formation of institutions for the ecologization of the economy and their effective functioning should be carried out on the basis of the state support. By regulating the choice and set of alternatives, the appropriately formed institutional structure of society guides state, governmental and regional authorities, the management of enterprises and organizations to make a choice in favor of an environmentally acceptable solution when making economic decision. This work defines the place of institutions in the ecologization of the economy and the nature of their interaction with the system of economic relations. As a result of the study, the main directions of the institutional transformation of the economy ecologization were formed, and goals for the implementation of institutional transformations were indicated. Keywords: Ecologization of the Economy · Eco-Destructive Impact · Environmental Protection · Institute of Ecologization · Transformation · System

1 Introduction The relationship between our society and the nature is under the influence of complex contradictory relations that manifest themselves at the functioning level of the economic system or economic relations between people regarding the application, exchange, distribution, consumption, reproduction of natural goods. The Environmental Performance Index (EPI) ranks 180 countries in terms of health, environment and ecosystem health. In 2016, the Russian Federation ranked 32nd with 82.52 points. In 2018, Russia moved © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 395–401, 2023. https://doi.org/10.1007/978-3-031-38122-5_55

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to 52nd place, the number of points decreased to 63.79. And in 2020, the result became even lower – 58th place with a score of 50.5 points [1]. Despite the fact that back in 2012, the President of the Russian Federation V. Putin approved the program document – «Fundamentals of the state policy in the field of environmental development of the Russian Federation for the period up to 2030» [2]. To date, the system of institutions for the greening of the Russian economy is imperfect [3]. According to S.E. Maykova, in 2019, the indicator of industrial and domestic waste in the Russian Federation reached record levels in recent years and amounted to 7.7 billion tons and almost 3 times exceeded the figure of 2003 [4]. The purpose of this work is to substantiate promising directions for the systemic and complex transformation of institutions to ensure the sustainable development of society based on the ecologization of the economy.

2 Methodology Ecologization of the economy is understood as a process of transforming the economy to reduce the integral impact of the production processes and the consumption of goods and services per unit of the total social product [5]. The ecologization is carried out through a system of organizational measures, innovative processes, restructuring of the production sphere and the consumer demand, technological conversion, rationalization of the environmental management, transformation of environmental activities implemented both at the macro- and microeconomic levels. The key concept of the ecologization is a concept of integral eco-destructive impact which is understood as the results of the negative consequences of the impact on humans and natural systems of the processes of production and consumption of goods and services reduced to a single criteria base [6]. The content of each structural component of the process of the economy ecologization is considered below: 1. The ecologization of social development is a deep qualitative shift in the patterns of social processes and social reproduction based on dynamic progressive changes in the society, taking into account the environmental perspective and harmonization of a wide range of relationships between society and nature. 2. The ecologization of economic development is associated with a long-term change in the quantitative and qualitative characteristics of economic processes and innovations related to ways of managing the economy based on the preservation and enhancement of the natural capital, reducing the anthropogenic and technogenic impact on it. 3. The ecologization of an economic system implies the involvement in the process of all its structural elements – subsystems (productive forces, technical and economic relations, organizational and economic relations, production relations, economic mechanism).

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To determine the place of institutions in the process of ecologization of the economy, attention should be paid to the potential for preventing environmentally destructive impacts with the help of an appropriate institutional structure. Institutions are structures that outline boundaries of choice, and the latter, in turn, set a framework for functioning of the economy and the society over a given period of time. Social institutions are interconnected and interdependent and together form an institutional system. The institutional structure of the economy is understood as an ordered set of institutions that form the framework of this system, create models of economic behavior of economic entities, determine and limit the set of options for their choice and interaction [7]. The institutional environment determines directions and speed of institutional changes. The changes in the institutional environment can occur in three directions: in the formal rules, in the formal restrictions, in the ways to enforce rules and restrictions. Let us consider the place of institutions in the process of the economy ecologization and the nature of their interaction with the system of economic relations and the productive forces of the society. In addition to industrial relations, the structure of economic relations includes organizational-economic, technical-economic, and financial-credit relations. The formation of technical and economic relations as an independent subsystem is due to the development of scientific and technological progress the widespread dissemination of innovations in all areas of society. For example, in the USA, Japan, Germany, France, the share of innovative enterprises is 70–80% of their total number. In Russia, this indicator is 6–7 times less [8]. The elements of technical and economic relations include specialization, social division of labor, cooperation, combination, concentration, and integration. Organizational and economic relations are a subsystem of economic relations, which are relations regarding the organization of production and consumption of a social product. The main elements of organizational and economic relations are management and marketing. At the end of the 20th century, a three-sector model that divides the economy into three components: agriculture and extractive industries; manufacturing and service industries is being replaced by a five-sector model. It is characterized by a transition from the predominance of material production to the provision of a variety of services. Financial and credit relations arising in the sphere of business services and in the process of relations with other sectors of social reproduction have an independent content [9]. Institutions eliminate the uncertainty of economic relations regarding the application, exchange, distribution, consumption of natural goods and services.

3 Literature Review The works of scientists are devoted to the study of various aspects of the process of the economy ecologization. Frolov distinguishes the following approaches to the definition of the economy ecologization: he considers the ecologization of the economy as a process, a phenomenon, as event, and a condition. The researcher highlights the key goals of greening the economy among which there are conservation and restoration of natural potential by maintaining the biological diversity, protection of ecosystems, the rational use of the resource base and reduction in the environmental pollution [5].

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L.V. Chkhutiashvili considers the ecologization of the Russian economy as an important factor in the growth of the competitiveness of production and products which is realized through the improvement of mechanisms for environmental, economic and tax incentives for economic entities; application of environmental payments and environmental insurance, development of a depreciation mechanism, creation of special state programs [10]. K.V. Samokhvalova also supports the development of tax control and preliminary analysis measures, a system of environmental payments, and food sharing activities [11]. B. Liu and J. Ge go further and propose a computable environmental general equilibrium (CGE) model for estimating consequences of using environmental tax proceeds [12]. E.Ts. Sadykova, N.B. Lubsanova, and A.V. Bilgaev, having studied the problem on the example of the Baikal region, argue that the implementation of strategic directions in order to transit the economy to a sustainable development path is possible on the basis of ecologization of the economy [13]. Ch.L. Chang and M. Fang, using data from a new nonlinear autoregressive distributed lag (NARDL) model, evaluate the positive impact of the sharing economy and green energy on achieving sustainable economic development in China [14]. P.V. Druzhinin, G.T. Shkiperova, and O.V. Potasheva propose a methodology that allows, at the stage of planning the development of a territory, to assess environmental consequences of the proposed scenarios for the development of the economy [15]. E.N. Abanina explores the ecologization as a process of achieving sustainable development [16]. However, theorists do not talk about the ecologization of the economy as a process due to institutional transformations that require a structured presentation.

4 Results To change the institutional structure of the economy ecologization, it is necessary to create conditions and prerequisites provided in Table 1 in the form of promising directions for institutional transformations. The transformation of the institutional system contributes to the formation of environmentally oriented economic relations and productive forces through the coordination and organization of environmentally friendly activities of business entities. The transformation of the economy with the aim of its greening includes, as a prerequisite, institutional changes containing the most important critical elements that are really feasible only in the presence of a strong and active state. In modern civilized economies, private and state management are not interchangeable, but complementary. All structural elements of the subsystem of the economic system should be involved in the process of ecologization, productive forces and an extensive subordinate system of economic relations should be transformed from the standpoint of achieving environmental goals as the economy develops.

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Table 1. The main directions of the institutional transformation of the economy ecologization. Directions

Results

Increasing the role of the state as a leading institution that organizes institutional transformations and forms a legislative and legal framework

The state program for the economy ecologization, the allocation of priorities and the consistent implementation of reforms, the creation of institutional structures, the growth in the share of budget expenditures for these purposes

Improving property relations in the field of the environmental management, the protection of nature and natural resource and the environmental safety while maintaining the leading role of the state property

The priority of public interests over private ones, the formation of an effective eco-mechanism of the environmental management based on the empowerment of owners of natural resources, the definition of the category of natural resources and their identification

Implementation of strategic planning in the field of environmental management

Medium- and long-term budget programs, strategic eco-plans of enterprises increasing the degree of their coordination

Creation of innovative and reproduction institutions for ecological purposes

Venture companies, eco-parks, eco-cities, etc. to create environmental innovations aimed at reducing environmentally destructive impacts at minimal cost, the accumulation of the natural resource potential

Creation of information and consulting institutions to address issues of accessibility and dissemination of information about the state of the natural environment, the formation of public awareness of the value of the natural environment

Adequacy of the existing state of environmental problems of economic and managerial decisions

Implementation of environmental standards, certification, licensing based on the national interests

Creation of a common basis for comparing the environmental policies of enterprises, the expansion of international cooperation

Distribution of environmental audit and improvement of its methodological and methodological support

Systematic monitoring of certain types of economic activities based on the objective criteria of their impact on the environment

Modernization of the system of environmental taxes, strengthening their stimulating function

Integration of tax and environmental policy

Improvement of rent relations in the field of the Increasing the efficiency of the use of natural environmental management resources, providing a financial base for environmental protection measures (continued)

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Directions

Results

Creation of an institution of responsibility for the environmental results of the economic activity

Creation of motivations for the environmentally conscious economic behavior of producers and consumers, public organizations

Strengthening the institution of trust and openness regarding the state of the natural environment, the measures taken for the environmental safety, the use of the natural resource wealth of the nation

A high level of trust in the society enhances the consistency of interests of participants in the economy ecologization

Development of a system of environmental risk Integrity and consolidation of managerial insurance institutions, loans, environmental decisions on the ecologization of the projects economy Source: authors.

5 Conclusion Institutional theory has a whole arsenal of methods and approaches to the solution of environmental problems and the analysis of the economy ecologization. Institutions should be considered as ways and mechanisms for establishing order and a certain organization between human and nature. Systemic institutional transformation ensures the integrity of solutions of environmental problems. The integrity of the economy ecologization lies in the mutual coordination of interests of various participants in the process, the balanced implementation of actions for the formation and effective functioning of institutions, the logical sequence of procedures, the establishment of norms and rules for taking into account the environmental factor at all stages of the economic activity, the launch of the mechanism for the reproduction of the economy ecologization, the transformation of the economy on an innovative basis in order to reduce the eco-destructive impact on the environment and to accumulate the natural wealth. Such profound changes, caused by the requirement to solve acute environmental problems, do not give an instant result. They require purposeful continuous actions on the part of the state and society and can be felt only after some fairly long time.

References 1. Environmental Performance Index. https://epi.yale.edu/. Accessed 08 Apr 2023 2. Fundamentals of the state policy in the field of environmental development of the Russian Federation for the period up to 2030. https://docs.cntd.ru/document/902369004. Accessed 08 Apr 2023 3. Panfilova EA (2021) Quantitative ratings for assessing the environmental performance of national economies. Alley Sci 8(59):90–95 4. Maykova SE (2021) Reducing the resource intensity of production as the most important condition for ensuring economic growth without compromising the environment. Russ J Resour Conserv Recycl 8(2):7

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5. Frolov AS (2021) Essence and features of ecologization of economy. Vest Univ 2:124–129 6. Weber AB (2016) Environmental policy: Experience in measuring efficiency and sustainable development goals. Sociol Sci Soc Pract 4(3(15)):23–37 7. Peiró-Signes Á, Cervelló-Royo R, Segarra-Oña M (2022) Can a country’s environmental sustainability exert influence on its economic and financial situation? The relationship between environmental performance indicators and country risk. J Clean Prod 375:134121 8. North DC (1990) Institutions, institutional change and economic performance (political economy of institutions and decisions), 59262nd edn. Cambridge University Press, Cambridge 9. Ryazheva YI (2021) Ways to develop the innovation environment of the industrial sector. Bull Samara Univ Econ Manage 12(1):43–50 10. Chkhutiashvili LV (2016) Greening of the Russian economy as an important factor of production and competitiveness of production growth. Bull Univ Named After O.E. Kutafin 4:124–129 11. Samokhvalova KV (2022) Ways of developing tax incentives for greening business in Russia. Taxes Taxat 3:32–52 12. Liu B, Ge J (2023) The optimal choice of environmental tax revenue usage: incentives for cleaner production or end-of-pipe treatment? J Environ Manage 1(329):117106 13. Sadykova ET, Lubsanova NB, Bilgaev AV (2022) Sustainability of socio-ecological and economic development of the Baikal region: State and forecast. Bull Altai Acad Econ Law 10(2):306–314 14. Chang C, Fang M (2023) Impact of a sharing economy and green energy on achieving sustainable economic development: evidence from a novel NARDL model. J Innov Knowl 8(1):100297 15. Druzhinin PV, Shkiperova GT, Potasheva OV (2019) Study of the relationship between environmental and economic indicators: modeling and analysis of calculations. 1st end., Federal Research Center «Karelian Scientific Center of Russian Academy of Sciences», Institute of Economics KarRC RAS, Petrozavodsk (2019) 16. Abanina EN (2018) Greening as a process of achieving sustainable development. Bull Saratov State Law Acad 3(122):201–207

New Opportunities for Employment: The View of Young People A. N. Timokhovich1(B)

, T. S. Filenko2

, and A. S. Lelyakova3

1 State University of Management, Moscow, Russia

[email protected]

2 Russian State University named after A.N. Kosygin, Moscow, Russia

[email protected]

3 Russian State University for the Humanities, Moscow, Russia

[email protected] Abstract. The contribution deals with a problem of the existence of new forms of employment and new possibilities of labor realization for young people. New forms of labor realization correspond to the Sustainable Development Goals. This work presents results of an empirical study carried out by the authors in 2021, using quantitative and qualitative methods of primary data collection. Representatives of generations Y and Z were respondents in the study. The most important spheres of human life for young people were identified; life goals were substantiated; young people’s attitudes to present-day forms of labor activity (distant work, part-time employment, multiple jobs) were revealed; young people’s attitudes to freelancing were studied; the strengths and weaknesses of freelancing were evaluated from the position of young people’s experience of freelancing; the main labor trajectories of freelancers were identified. Conclusions about the opportunities of new forms of employment in the context of uncertainty are made. Keywords: Freelancing · Labor Realization · Life Goals · Self-Employment · Values · Youth

1 Introduction In the conditions of present-day realities there are unlimited possibilities for labor realization. New forms of labor realization correspond to the Sustainable Development Goals in that they reduce the number of lower-class people on the brink of survival; promote gender equality through labor opportunities for both men and women; reduce inequality in society through labor opportunities for the general population; allow people to find good jobs and contribute to the economic growth of a region or a country. For most people in modern society, labor activity is not only the leading type of activity, but also represents an integral part of human life, because different types of labor activity are considered as a source of income as well as an instrument of human selfrealization. The traditional model of employment is being actively transformed under the influence of dynamic processes taking place in social structures. The development of new forms of communication, the application of artificial intelligence technologies, challenges and threats, which also include epidemiological conditions, lead to irreversible © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 402–410, 2023. https://doi.org/10.1007/978-3-031-38122-5_56

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changes in the labor market. In particular, organizational structures are changing, distant technologies are being introduced and used in different kinds of labor activity, the volume of personnel to perform certain labor functions and the employment mode of employees are changing, labor legislation is being adjusted, and the prestige of different professions is changing [1]. While previously the field of labor activity was more predictable and stable, the labor market has become increasingly uncertain. There was a direct link between learning, practical experience, and work at the turn of the 20th and 21st centuries. The educational system smoothly prepared the younger generation for further integration into labor activity: in educational institutions of different levels there were disciplines, the mastering of which led to the formation of knowledge, skills and abilities for future labor activity. In modern realities the formation of soft-skills comes to the first place in education, which in general prepares a student for integration into social activity without reference to a specific labor activity [2]. The concept of lifelong learning has been actualized in many countries in order to meet the dynamic changes in the labor market. Representatives of generations Y and Z have formed a different view of the place and role of labor activity in their lives in comparison with the views of generations X and baby boomers. If representatives of older generations considered labor activity as a way of life, tended to work in large companies and organizations, receive social guarantees connected with regular labor employment, representatives of younger generation try to realize themselves through labor activity, find ways and forms of work that allow them to be more fluent and not occupied [3]. It leads to the fact that every year more and more young employable people prefer to start their own start-ups, work as a freelancer or self-employed, many people prefer to work in remote and part-time jobs. People of older generations are increasingly inclined to such forms of work as well.

2 Methodology The purpose of the study was to determine the values and attitudes of young people toward labor and their perceptions of the role of labor activity. The main research questions are: – – – –

What life goals do young people have? What place does labor take in the structure of young people’s types of activity? What spheres of human life are important for young people? What are young people’s attitudes toward present-day forms of employment (telecommuting, part-time work, multiple jobs, freelancing)? – What motivates young people to engage in freelancing, to be outside of traditional employment practices? The object of the study was young people aged 16 to 35 years, i.e. representatives of generations Y and Z. The subject of the research was young people’s attitude to labor activity. The study was conducted using quantitative and qualitative methods of primary data collection. To receive quantitative data, a survey method in the form of online questionnaire was used; the survey period was February-March 2021. The respondents were young people

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aged from 16 to 35 years, i.e., representatives of generations Y and Z. The sample consisted of 416 respondents living in cities of the Russian Federation (Moscow, St. Petersburg, Volgograd, Lipetsk, Kursk, Belgorod, Bryansk). The questionnaire included four blocks of questions: a socio-demographic block, a block of questions about the importance of certain spheres of human life, a block of questions about life goals and values, a block of questions about labor activity. The results of the survey were processed using SPSS-Statistics program. A series of in-depth interviews with young people who are freelancers was conducted to obtain qualitative data. Interviewees included designers, copywriters, photographers, videographers, IT specialists, educators, and bloggers. The interviews were completed in the spring of 2021. The blocks of questions in the interview guide addressed the issues of life values and goals, labor activities, labor motivation, and one’s own work experience. The results of in-depth interviews were processed using the method of content analysis (i.e., highlighting and comparing the main content constructs).

3 Results Socio-demographic data of the respondents of the quantitative study are as follows. Age categories: under 18 years old – 12%; 19 to 25 years old – 38%; 26 to 35 years old – 50%, i.e., representatives of generations Y and Z are equally represented. Marital status: young people are in registered marital relationships 6%; young people are in unregistered marital relationships 13.5%; single/unmarried 80%; divorced/divorced 0.5%. It should be noted that in most cases young people do not tend to get married, delaying the creation of a family for a later date. Every second respondent studies at a university (50%); every third respondent combines work and study (34%); 13% of respondents indicated work as their main activity; 2% of respondents study at a college/technic schools; 1% of respondents study at secondary schools. Even though in general in the age interval up to 25 years in the structure of employment in Russia studying as the leading type of activity dominates [4], the research results showed that young people are quite actively involved in labor activity, many of them combine study and work. 9% of respondents evaluate the financial situation of their families as below average; 20% of respondents evaluate the financial situation of their families as above average; 71% of respondents evaluate the financial situation of their families as average. Representatives of generation Y (respondents under 25 years old) mostly live in their parents’ families (73%); a significant part of respondents from generation Z (age from 26 to 35 years old) have their own household (64%). Table 1 gives respondents’ opinion about different assessments of the importance of the spheres of human life. The following spheres are the most important from the respondents’ point of view: financial situation (95.5% of the survey participants highly evaluated the degree of importance of this sphere); family, home, comfort and business, profession, work (95% of respondents indicated different degrees of importance of these spheres for themselves); leisure time, recreation, entertainment (94% of young people consider this sphere important and very important); health, friendship and social relations, self-realization (92.5% of respondents chose positive evaluation of importance of these three spheres); safety (88%).

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Table 1. Respondents’ evaluation of the degree of importance of the life spheres (in % of the sample). Very important

Important

Probably not important

Not important

Difficult to answer

Business, 32 profession (job)

63

2

1

2

Family, home, home life

64,5

30,5

1,5

0,5

3

Health

59,5

33

1,5

0,5

5,5

Safety

43,5

44,5

2,5

2

7,5

Financial status 45,5

50

1,5

0,5

2,5

Friendship, social connections

50,5

42

4

0

3,5

Leisure time, recreation, entertainment

38

56

3

0

3

Environmental 22,5 habitat, ecology

54

6,5

2

15

Current events in the country, in the world

18

44

9

4

25

Religion, faith

5

12

24

41

18

Self realization

55,5

37

0,5

1

6

Source: authors.

On the one hand, the spheres that received high positions on the scale of importance in the answers of young people are various, on the other hand, in present-day realities there are mechanisms and ways of working that allow successfully balancing the realization in these spheres. Less significant from the respondents’ point of view are the spheres of ecology (76.5%); what is happening in the country, the world (62%). The sphere of religion is significant for every sixth respondent. It should be noted that the spheres of religion, ecology and politics had the highest number of respondents who could offer no opinion. Various alternatives of life goals related to basic values were offered to respondents: family, work, education, social relations, power, material wealth, and dignity. Life goal of creating a family and raising children was at the top of the respondents’ list of answers (63%). Every second respondent indicated that he would like to be engaged in favorite occupation or creative work. Also, often respondents chose the goal to have an interesting job (41%). Career building as a life goal is chosen by 22% of young people. To have good friends, i.e., to be surrounded by people who understand you and to be socially integrated, was chosen by 38.5% of respondents. Every third respondent indicated that

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he wants to become a rich and wealthy person (35%). Every fourth respondent believed that it was necessary to strive to have a lot of leisure time and to spend it for pleasure. Less actively respondents chose answer options related to the values of power (to become famous – 8.5%; to have access to power – 2%; to get into the elite of society – 6%); education (to get a quality education – 9%); romantic relationships (to meet a beloved person and have a harmonious relationship with a partner – 10.5%); human dignity (to live your life honestly – 12%). Less actively respondents chose answer options related to the values of power (to become famous – 8.5%; to have access to power – 2%; to get into the elite of society – 6%); education (to get a quality education – 9%); romantic relationships (to meet a beloved person and have a harmonious relationship with a partner – 10.5%); human dignity (to live your life honestly – 12%). The life goals of young people are presented in Fig. 1.

Fig. 1. Life goals of young people (Source: authors).

Young people with and without working experience mostly (57% and 40%, respectively) perceive work as a source of livelihood in the first place. Unemployed young people more often chose the alternatives that work was not the most important element in their lives, that there were things in their lives that mattered much more than work

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(34% of respondents), and that job was an unpleasant duty for them; if young people could, they would not work (11% of respondents). Employed young people were not as categorical in their responses (22% of employed young people considered that work was not the most important element in their lives; 4% of young people viewed work as an unpleasant duty. A small part of young people considers the job as important, regardless of pay (12% of unemployed and 17% of employed respondents, respectively. The survey revealed young people’s attitudes toward job, with the attitudes of employed and unemployed young people, differing (Fig. 2).

Fig. 2. Young people’s attitudes about the job (Source: authors).

Young people in general have a positive attitude toward self-employment and freelancing. Every second young person believes that they are considering freelancing. Among employed respondents (47% of the total sample) 22% identified themselves as freelancers or self-employed. Positive attitudes toward part-time, combined, and telecommuting opportunities were also revealed among young people. Full-time job is not a priority choice for young people,

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whether working or studying. Only every fifth young person indicated that he would like to pursue a full-time, wage-earning employment path. As a result of in-depth interviews with freelancers and self-employed people the strengths and weaknesses of freelancing were identified. The interviewees noted that in freelancing it is important for them the autonomy in the choice of solutions and orders; the possibility to plan the work schedule taking into account their own needs; the possibility to be more involved in the work and the work functions performed; the possibility to enjoy the completed work by leveling out the orders and projects that are not interesting for freelancers. The weaknesses of freelancing were the inability to calculate income and employment clearly; instability in the freelance market in terms of legal and social guarantees; high risks due to the unstructured freelance market; in some cases – the need to do routine, monotonous work, and the need to find a place to do the work. Young people came to freelancing in different ways. In general, based on the interviews conducted, the following labor paths of freelancers can be distinguished. First track: full-time work in the staff of the organization, then leaving for part-time work (in most cases for family reasons), then leaving for freelancing. The second track: working full-time in the staff of the organization, and then leaving for freelance. Most often this track is related either to the interviewee’s disappointment in the employment activity, or to the structural changes in the organization, due to which the young person lost his/her job and had difficulties in further employment. Third track: freelancing without any employment experience. This employment track is most often characteristic of young people who began to provide services independently in different areas (design, tutoring, photography and videography, etc.) during or immediately after graduation. The fourth track: freelancing, and then combining freelancing and part-time employment. Due to the uncertainty in terms of earnings, social guarantees, and social connections, some young people start to combine freelancing and part-time employment.

4 Discussion The term «freelancing» still causes discussions in the professional community and among independent professionals. A group of authors defines freelancing as a form of selfemployment [5]. Other authors emphasize that a freelancer is an autonomous professional, i.e., a person who works autonomously and fulfills orders for different clients [6]. The results of several studies by different authors allow to formulate the following meaningful aspects of freelancers’ activity. Firstly, freelancer provides service activities; he is not engaged in manufacturing activities [7]. Secondly, freelancing means systematic activity to provide services to one or more customers, rather than an occasional paid activity [8]. Thirdly, freelancer has certain experience, skills and knowledge that are in demand in the market. Fourthly, the freelancer receives a fee for the services provided; the concept of economic profit in the context of freelancing is disputable [9]. Fifthly, a freelancer uses communication technologies during his activity [10]. According to [11], the number of freelancers has tripled over the past five years. Since 2019, a self-employment tax has been applied in Russia, making freelancers official employees along with businesspersons and full-time employees of companies. In Russian reality the concept of self-employment is not identical to individual business:

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the processes of registration with the Federal Tax Service are different; there is a difference in reporting to the tax service [12]; types of taxation and types of insurance and other contributions are not similar; a self-employed citizen cannot use the services of employees, while an individual businessman can hire employees under an employment or civil law contract; for the self-employed there is a tax for the self-employed. However, not all freelancers are registered as self-employed. The active use of distant technologies in many areas of employment, the increasing range of opportunities to provide communication services, and the change in the mentality of young people regarding attitudes toward employment lead to an increase in the number of people who not only think about freelancing as an alternative to employment, but also choose to work as a freelance labor track.

5 Conclusion The results of the study indicate the popularity of freelancing ideas among Russian youth. For young people, the top priorities are the questions of financial situation, employment, self-actualization, leisure time, and safety. All these spheres are presented in the freelancer’s activities. The main life goals of young people are the goals of having a family, raising children, interesting work, creativity, and financial success. It should be noted that these goals are based on the basic values of family, employment, social relationships, and self-actualization. The optimal combination of the stated goals can be achieved within the framework of freelancing, because traditional employment imposes restrictions on the possibility of planning non-working time, spending leisure time, in some cases restrictions on family life. The dynamic processes taking place in society under the influence of the pandemic in 2020–2021, namely the closure of many businesses and companies, the relocation of employees to distant work, the reduction of full-time employees, the decrease in earnings, the introduction of social distancing methods, the reduction of social and legal guarantees for employees, have led to changes in the labor market [13]. Accordingly, for many hundreds of thousands of people in Russia and all over the world, freelancing becomes one of the possible choices of labor activity in conditions of uncertainty, which allows a person to get the necessary means for existence, to engage in their favorite business, to be included in social relations, to self-actualize.

References 1. Strebkov DO, Shevchuk AV, Spirina MO (2016) Self-employment in the remote work market: diffusion of innovative labor practice. Monit Public Opin: Econ Soc Change 6:89–106 2. Malova MM (2019) The meaning of soft skills in the modern professional career. Vest Samara State Tech Univ Psychol Pedag Sci 16(4):150–165 3. Begicheva OL, Grishaeva SA, Polyakov MB, Timokhovich AN, Chuev SV (2017) Value orientations of Russian youth and realization of state youth policy, 1st edn. State University of Management Publisher, Moscow 4. Kasatkina NP, Shumkova NV (2020) From self-education to self-employment: back entrance for youth to the labor market. Monit Public Opin: Econ Soc Changes 3:201–223

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5. Shevchuk AV, Strebkov DO (2016) Heterogeneous self-employment and work values: the evidence from online freelance marketplaces. In: Bogenhold D, Bonnet JP, Dejardin M, de Lema DGP (eds) Contemporary Entrepreneurship: Multidisciplinary Perspectives on Innovation and Groth. Springer, Switzerland, pp 141–158. https://doi.org/10.1007/978-3-319-281 34-6_9 6. D’Souza E (2020) The pervasiveness of self-employment. In: D’Souza E (ed) Conceptualizing the Ubiquity of Informal Economy Work. Springer, Singapore, pp 59–69. https://doi.org/10. 1007/978-981-15-7428-3 7. Alferova TV, Arakelyan AM, Semeikina AA (2018) Problems and prospects of freelancing as a modern form of employment. Actual Issues Mod Econ 1:29–34 8. Hogarth M (2019) Life as a freelance. In: Writing feature articles: print, digital and online, 5th edn. Routledge, London, pp 9–20 9. Christin A (2020) Between exposure and unpaid work: compensation and freelance careers. In: Metrics at work: journalism and the contested meaning of algorithms. Princeton University Press, Oxford, pp 125–151 10. Ferguson JL (2018) Creating a freelance career. Routledge, New York 11. Baitenizov DT, Dubina IN, Campbell DFJ, Carayannis EG, Azatbek TA (2019) Freelance as a creative mode of self-employment in a new economy (a literature review). J Knowl Econ 10(1):1–17 12. Medvedeva LD, Supataeva GT (2021) On self-employment in the Russian Federation. Bull Altai Acad Econ Law 4(1):90–95 13. Mantulenko VV, Zotova AS, Makhovikov AE (2021) Digital transformation of the labor market: values and competences. In: Ashmarina SI, Mantulenko VV (eds) IPM 2020, vol 161. LNNS. Springer, Cham, pp 321–328. https://doi.org/10.1007/978-3-030-60926-9_41

Fixed Asset Investments in Russia: Analysis and Forecast Estimate O. F. Chistik(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. The relevance of the study is that investment activities associated with investments in fixed assets relate to the «system-forming» activity of the state and are articulated in a number of federal documents and national projects. In Russia, it is planned to increase capital investment in fixed assets by 2030 by at least 70 percent compared to 2020. The author’s version of blocks of factors of investment in fixed assets is formed according to a content criterion. Hierarchical classification of Russian regions into qualitatively homogeneous groups according to factor indicators of regional promotion of investments in fixed assets by the method of cluster analysis based on interregional comparisons was performed. A federal approach to the analysis of trends of indicators of investments in fixed assets has been implemented and their forecasting for 2022–2023 has been carried out. The proposed analytical and methodological support for the executive authorities of the federal and regional levels serves as the basis for the development of the appropriate measures to ensure the conditions for growth of investments in fixed assets and sustainable economic growth. Keywords: Analysis of Trends · Blocks of Factors · Cluster Analysis · Fixed Asset Investment · Forecasting

1 Introduction As it is noted in the Decree of the President of Russia «On National Development Goals of the Russian Federation for the Period until 2030» [1] the sustained economic growth is associated with a high level of investment activity. The purpose of national projects implementation is to ensure sustainable growth of investments in fixed assets. This course of action is directly related to the high level of investment activity and the evolution of socio-economic development of the regions. A number of authors consider the essence of investments as acquired assets and as the process of investing in such assets [2–4] and their value [5]. A number of authors consider investments as an incentive for enterprises to compete [6, 7]. The connection between economic and legal nature of investments from theoretical perspective has been investigated [8]. The structure of investments [9] is studied in detail. Investments in fixed assets are being investigated [10] as a resource of import substitution and a guarantee of economic security. We have formed blocks of factor indicators according to a content criterion, allowing us to deepen the © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 411–418, 2023. https://doi.org/10.1007/978-3-031-38122-5_57

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analysis of investments in fixed assets in the regional context, highlighting qualitatively homogeneous groups of regions according to the nature of investments. The method of studying the dynamics of indicators of investments in fixed assets has been implemented and the forecast for 2021–2022 has been carried out. The results can be used by federal and regional government bodies to resolve issues related to the regulation of investment activities.

2 Research Methods The dialectic method and the comparison method were used as research methods in a time-series analysis of fixed capital investments. Statistical tools included: a method of classification of factors by their content assessment, a method of time-series analysis, a Chow test for hypothesis testing that there is a structural gap in the trend. The methods of cluster analysis and ranking of regional units according to the nature of investment activity were used, as well as the method of constructing statistical tables for calculation of general indicators and the graphical method of presenting the results of the study.

3 Results Our study, based on official information from Rosstat [11] and statistical methodology, should provide an insight of the state of investment activities related to fixed capital investments, the processes and trends in it, the relationships and features of regional functioning. The study of territorial differentiation of investment activities is related to the definition of a range of specific statistical indicators. Moreover, they should be presented in a regional context. Such indicators include investments in fixed capital per capita (rub.) and index of physical volume of investments (%). We will consider the factors of regional development of fixed capital investments from a statistical point of view. Factors are grouped according to a content criterion, the following groups are highlighted: 1. Factors of economic development of the region. SA prominent representative of this group is the «gross regional product per capita». In this group we also consider: consumer activity of the population, inflation rate, state of the labor market. These indicators create the economic background for investment activities to take place. 2. Demographic factors. a. Investment activities are eventually connected with people, so the influence of demographic conditions cannot be ignored. The demographic factor is the «total fertility rate». The demographic situation is directly related to the level of human capital development. 3. Social factors. a. This is a group of indicators of the standard of living and development of the social sphere of the region. As an example: «monetary income of the population». Higher living standards correlate with higher incomes, which can also be considered as a potential source of investment.

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4. Structural and production factors. a. The factors of this group characterize the structure of the economy, the level of labor productivity, innovative activity, the state of fixed assets, and environmental conditions. This variety of factors allows us to cover various aspects of the state of the industrial and infrastructural segments of the region. This includes, for example, «the share of mining in the gross value added (GVA) structure of the region». 5. Factors of digital development. a. Investors cannot ignore the level of digital development of the region, because of its great influence on business activity and the pace of economic development. An example of a factor sign is «the number of personal computers per 100 employees». 6. Financial factors. a. This is a very important group. It reflects financial resources and financial conditions for investment activities. This group included, for example, the factor characteristic «proportion of loss-making organizations». At the next stage with the aid of «Statistica» application we conducted a cluster analysis of factor indicators of fixed capital investments. The baseline data were prestandardized, allowing them to be used as data sets for multidimensional grouping of fixed capital investment factors (conditions). The Ward method and the k-average method are used to perform cluster analysis of factor indicators. As a result, we came up with a multidimensional grouping of regions of the Russian Federation by factors (conditions) of investment activity. Following the results of cluster analysis, six clusters were singled out. Table 1 shows the results of a multidimensional grouping with a content-related interpretation of each single cluster. Table 1. Multidimensional grouping of regions of the Russian Federation according to the investment climate for investments in fixed assets. Investment climate for investments in fixed assets

Representative regions of the Russian Federation

Very favorable

Moscow

Favorable

St. Petersburg, Moscow, Murmansk, Yaroslavl, Udmurtia

Good

Arkhangelsk, Stavropol, Mari El, Perm, Tver, Samara

Medium

Crimea, Novosibirsk, Astrakhan, Sverdlovsk, Khabarovsk

Poor

Sakhalin, Khanty-Mansi autonomous district, Kamchatka territory, Magadan

Unfavorable

Chechen Republic, North Ossetia, Republic of Tuva, Kurgan, Jewish Autonomous Region

Source: authors.

Moscow alone falls into a group with «very favorable conditions». The city of Moscow is an urban area with high socio-economic and financial standards. It is the

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leader in attracting foreign investments and one of the business centers in Eastern Europe. Moscow marks a very high level of incomes of the population, technologically advanced Internet infrastructure and high-tech industries. The group with «favorable conditions» includes the regions of the European part of Russia. Their distinctive feature is the rapid digitalization of business and economy as whole and the presence of high tech industries. «Good conditions» extend mostly in the regions of the European part of the Russian Federation. Samara is also in this cluster. Along with the average level of digitalization, the demographic situation is not the most favorable in these regions, but they do have an increase in the physical volume of GRP and a positive dynamics when it comes to investments in digital technologies. «Average conditions» are observed in regions spread over the entire territory of Russia – from Crimea to Primorye. With rare exceptions, the high costs of digitalization in these regions are combined with underdeveloped high tech sector. The majority of representatives of this group reach a high level of gross regional product – GRP. The group with «poor conditions» included 4 regions with severe natural and climatic conditions. They feature high level of financial and production indicators, but lack of development of high-tech industries and Internet technologies. «Unfavorable conditions» developed in the North Caucasus and a number of regions of the Asian part of the country. The main advantage of this group of representatives is a good demographic situation. Investment activities related to investments in fixed assets have fluctuations over time. They are caused by the seasonal factor as well as the phase of the economic cycle, changes in business activity in the economy, economic shocks (sanctions, etc.), the changing situation in the foreign market and other factors. During the crisis years, investment activity in Russia faded to subsequently intensify, but the growth in activity over time became less significant. At the beginning of the 21st century chain growth rates reached 42% per year (2007), then after the crisis of 2008–2009 the largest chain rate growth was just 29,1% (2010), and after the crisis of 2014–2015 – only 11,3% (2018). Forecasting the value of investment in fixed assets was carried out in the Gretl program. The dynamics of the value volume of investments is well approximated (R2 = 0.980) by a linear trend. The forecast values are shown in Table 2. Table 2. Forecast of investments in fixed assets in the Russian Federation for 2021–2022 (billion rubles). Forecast year

Point Forecast

Interval forecast (95% probability) Lower limit

Upper limit

2021

20926,9

19139,0

22714,8

2022

21963,6

20139,0

23788,2

Source: authors.

Despite a fairly stable development, investments time series indicators reveal fluctuations and a change in trend, so a logical scientific question arises – is this related to any qualitative shift? Such a shift could be any legislative change in the field of investment in fixed assets or the introduced measure of state regulation. Since 2014 the State Program «Economic Development and Innovative Economy» [12] has been developed

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415

and implemented in Russia. It is designed for the period until the end of 2024 and concerns many issues of the economy and social sphere including the investment activities of enterprises. We will consider this program as a qualitative factor that could cause changes in the trend. We apply the Chow test to verify this thesis. The observed Chow test value was calculated in the Gretl program. The year 2015 was chosen as the time point for splitting the sample into 2 parts, since any major legislative and managerial change has a delayed effect, with a lag of at least 1 year. The observed value Fob = 5.57; the p-value is 0.0195. This suggests that, with a probability of 95%, the hypothesis that there is a structural gap in the trend can be adopted. Therefore, the introduction of the State Program «Economic Development and Innovative Economy» [12] had the expected effect at the federal level and influenced the investment activities. The crises of 2008–2009 and 2014–2015 influenced the physical volume of investments, although the second crisis was more severe. Currently, the Russian economy is undergoing a period of investment activity, but index values are already beginning to slow down. Table 3 shows the forecast values of the index (according to the ARMA model). Table 3. Forecast of physical volume index of investments in fixed assets in the Russian Federation for 2022–2023 (%). Forecast year

Point Forecast

Interval forecast (95% probability) Lower limit

Upper limit

2022

99,5

91,6

107,5

2023

105,4

96,7

114,2

Source: authors.

The model forecasts a possible slowdown in investment activity and subsequent recovery, which is generally consistent with current economic forecasts. For example, Pryazhnikov [13] notes «the current forecast for the development of Russia is not precisely formulated and has practically no connection with the actual indicators». A number of authors believe that «the main issue in the field of the economy now is the correct assessment of the timing of its full recovery and further reaching an accelerated pace of economic development. An important topic is the influence of the next wave of pandemic that can interrupt the economic recovery» [14]. Under these conditions, a certain decline in the values of economic indicators is almost inevitable. Let’s check for structural changes in the time series of the index. Observed Chow test value Fobz = 6.61; p-value is 0.0395. This suggests that with a probability of 95%, a hypothesis about the presence of a structural gap in the trend can be adopted – this means that there is a positive effect after the introduction of the State Program «Economic Development and Innovative Economy» [12].

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4 Discussion In the area of global economy there are a number of studies on specific investment issues. Chinese researchers have discovered a link between the environmental situation and the size of foreign investment. The results obtained indicate that tight environmental regulation results in a drop in production volumes of foreign companies in general and a decrease in polluting industries around cities, oriented, in particular, at emissions reduction [15]. Italian scientists studied the investment activities of family enterprises and concluded that family property is less sensitive to investment fluctuations, which indicates a more effective investment behavior of family firms [16]. Scientists [17], using the Tobit model, put forward the argument that bilateral investment treaties can help countries with poor management and administration problems, like many countries in sub-Saharan Africa, develop their economies more efficiently. Thus, a review of scientific literature and federal documents makes it possible to draw the following conclusions: firstly, investment activity is recognized as one of the key in the modern innovative economy, and therefore the Russian government should place increased emphasis on this matter; (develop relevant programs, create legal and regulatory framework); secondly, the scientific community has conducted many diverse empirical studies on investment, but there are still unresolved issues in the theoretical understanding of this phenomenon. We paid special attention to the informational and methodological aspect of the analysis of investments in fixed assets in Russia and in its regions.

5 Conclusion Investments generate innovation, stimulate innovative activity in the economy. Investments in fixed capital (fixed assets) create a solid basis for sustained development of the enterprises. Their growing business activity acts as a financial source of new investments. This is a gradual process, a circular flow, and investment policy itself can be considered as part of strategic development. The information-methodical approach is proposed: – the author’s version of blocks of factor indicators of regional development forming according to a content criterion: factors of economic development of the region; demographic factors; social factors; structural and production factors; digital development factors; financial factors; – based on the application of the cluster analysis method, six qualitatively homogeneous groups of Russian regions according to factor indicators of the development of investments in fixed assets were recognized. Clusters with various formation conditions were identified: «very favorable», «favorable», «good», «medium», «poor», «unfavorable». A geographical feature was revealed – the first two clusters represent a city of federal status – Moscow and the regions of the European part of Russia; in the last two - the regions of the Far North, the Far East and the North Caucasus;

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– the federal-scale approach to analyze the dynamics of indicators of investments in fixed assets, as well as their forecasting has been implemented. An analysis of investment trends showed their relationship with economic cycles. During the years of crisis, investment activity in Russia slowed down to subsequently intensify, but the growth in activity over time became less substantial. The levels of investment time series are subject to fluctuations and a change of trend, which can be caused by the effect of structural shift (that is, the influence of a qualitative factor). We consider such a factor to be the adoption of the State Program «Economic Development and Innovative Economy» in 2014 [14]. Verification using the Chow test revealed that in general, a hypothesis of the presence of a structural gap in the trend is true, consequently the Program on investment activities in the Russian Federation proves to have a positive impact. In the conclusion, it should be noted, that the results of the analysis are required for the government executive authorities in the process of state programs update for the development of specific regions in the direction of sustainable accelerated growth of real investments in fixed assets.

References 1. Official Internet Portal of Legal Information: Decree of the President of Russia «On National Development Goals of the Russian Federation for the Period until 2030». http://publication. pravo.gov.ru/Document/View/0001202007210012. Accessed 23 Feb 2023 2. Safiullin MR, Abdullina AR (2019) The essence of investments and their classification. Sci Works Cent Adv Econ Res 16:33–45 3. Khakimov SN, Fasikhov MS (2019) Socio-economic essence and principles of regional investments. Sci Educ Today 1(36):32–38 4. Surzhikov VI (2017) Analysis of investment opportunities of the region: municipal level. Fundam Res 1:209–213 5. Pinkovetskaya Y (2021) Investments in capital asset in the regions of Russia in 2019. Stat Econ 18(1):47–53 6. Tavbulatova ZK, Gentamirov MKh (2016) Investments in manufacturing industries as a competitive incentive for enterprises. In: Isaev MG (ed) Current problems of the functioning of the financial mechanism of the regions: materials of the all-Russia scientific and practical conference 2016. Aprobation LLC, Makhachkala, pp 399–402 7. Demina ID, Larionova EI, Chinaeva TI (2017) Investments in fixed assets and depreciation of fixed assets: theoretical and practical aspects of study and analysis. Stat Econ 14(3):71–79 8. Spinev Yus (2020) The concept, essence and legal nature of investments. Probl Econ Legal Pract 16(4):137–141 9. Singireva AA, Ioda Y (2018) Theoretical aspects of investments in fixed assets. Territ Sci 4:132–137 10. Vyakina IV (2017) Renovation of fixed capital in the real sector: the potential of import substitution and economic security. Econ Anal: Theory Pract. 16(5):800–815 11. Rosstat: Regions of Russia. Socio-economic indicators. https://rosstat.gov.ru/bgd/regl/b19_ 14p/Main.htm. Accessed 01 Apr 2023 12. State Program «Economic Development and Innovative Economy». http://government.ru/rug ovclassifier/823/events/. Accessed 16 Apr 2023 13. Pryazhnikov VN (2020) Economic development of Russia: forecasts and reality. Sci J Young Sci 1(18):85–90

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14. Karavaeva IV et al (2020) The main trends in the development of the Russian economy for the next three-year period: analysis, risks, forecast. Econ Secur 3(4):415–442 15. Xu Y, Wu Y, Shi Y (2021) Emission reduction and foreign direct investment nexus in China. J Asian Econ 74(C):101305 16. Quarato F, Cambrea DR, Calabrò A (2021) Investment decisions of family firms in the three largest euro countries: the role of the financial crisis. Financ Res Lett 42:101980 17. Amendolagine V, Prota F (2021) Bilateral investment treaties and backward linkages in SubSaharan Africa. Int Econ 165:172–185

Retail Trade Development in National Economic Conditions N. A. Kryuchkova1(B)

and S. V. Grankina2

1 Samara State Economic University, Samara, Russia

[email protected] 2 Samara State Technical University, Samara, Russia

Abstract. Trade, is constantly undergoing changes in its development caused by the influence of a combination of various factors. As a result, when analyzing retail trade, one can distinguish the trends characteristic of it in the current period. The key ones are the following: digitalization of business processes of a commercial enterprise; increasing trade in e-commerce and e-grocery; the strengthening role of marketplaces in electronic commerce; change in trade formats when some trade and technological processes are separated into an independent business; transformation of the interaction of the trading enterprise with consumers; changing the structure of consumption, as a result of which attention is focused on marketing tools, in the implementation of which all participants in the distribution chain of goods in the market are involved, as well as an increase in the supply structure of goods under own brands; activating and changing the structure of classified ads sites (classifieds); using parallel import increasing the share of sales through machines and robotic kiosks. All these trends contribute to the adaptation of the trade sphere in the context of the negative influence of geopolitical and economic factors. Keywords: Classified Retail · Fulfillment Center · Marketplace · Offline and Online Sales Channels · Online Trade

1 Introduction Change in consumer behavior has an impact on major retail development trends. At the moment, Russian customers have become attentive to their expenses and are trying to reduce expenses for the following categories: 61% of consumers for clothing; 59% – leisure time outside; 57% – cheaper brands of products; 44% – save on vacation, and 40% refused to take a vacation. It should be noted that consumers began to buy premium goods 35% less often and goods under popular brands 23% less often. Factors of importance in choosing the method of purchase: assortment; quality and shelf life of products; prices for goods and services; purchase time, delivery speed, build quality; easy return, exchange of goods and solution of problem situations [1]. Trade today reflects all the changes taking place in the country and the world. The Russian trade sector is following the path of digitalization of processes, using the achievements of scientific and technological progress, as well as optimizing the relations of all © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 419–425, 2023. https://doi.org/10.1007/978-3-031-38122-5_58

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the participants of the trade process. This is reflected in the current trends of Russian trade, the analysis of which is the purpose of this work.

2 Methodology This study was conducted using a combination of theoretical and empirical methods. The first group of methods, including analysis and synthesis, contributed to the interpretation of data on the activities of trade entities in Russia, and the identification of trends in the development of retail trade in the national market. The authors also used practical research methods: observation, comparison. The graphical representation of the research materials made it possible to determine the dynamics of the development of types of stores and online retail sites in the market. The use of a set of research methods in the work made it possible to ensure the reliability of the results presented in this contribution.

3 Results There is a tremendous growth of online commerce in the Russian market. By the end of 2021, the online market grew by 45.4%, the chain growth rate in 2022 was 27% [2]. If we consider the quarterly structure, it was distributed evenly. According to the seasonal component, the winter months are in the lead (34.2%), ahead of the spring and summer season by 10%. The drivers of online shopping have changed: convenience and time savings, as well as prices are the main factors determining online shopping [2]. It is noteworthy that online buyers choose not only cheap goods, but also expensive items. For example, in the category «Furniture and household goods», the most expensive online purchase was made in the first half of 2022 – a furniture set worth 3.1 million rubles. The increase in the volume of e-commerce and e-grocery trade is mainly due to the development of marketplaces. Modern electronic trading platforms perform the following functions: information mediation between consumers and suppliers of goods, services; aggregation of offers from manufacturers or suppliers of various goods; sale; fulfillment and courier delivery; organization of the process of interaction with the consumer at the pick-up points and postamates [3]. The marketplace at the present stage of development combines the potential of information search engines, the capabilities of online stores, fulfillment and logistics services [4]. The problem of the last mile in logistics is solved at the expense of pick-up points and postamates, because the buyer is much less dependent on the quality of the organization of the delivery service. Consumer convenience has become a key factor in the high demand for this format of trade, which, in turn, stimulated the rapid growth in the number of virtual outlets, real pick-up points and postamates. Thus, on the area of 0.12 km2 (the territory of one of the residential neighborhoods of Samara) there are 3 pick-up points of Wildberries online orders and one pick-up point of each Ozon and Yandex.Market marketplaces. Also, within walking distance are the postamates: Cainiao, Ozonbox, 5 post, Qiwi box, Sber Logistics. In 2022, the growth rate of the number of postamates decreased, but still remained significant. The growth rate in 2022 amounted to 16.92%, and the total number of postamates in the Russian Federation exceeded 37 thousand [5].

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Modern marketplaces specialize in certain segments of the market of goods or services, or act as universal platforms that do not limit the product range, concentrate existing players on the market and form an oligopolization of relations in the considered trade format. Universal format marketplaces play a significant role in the Russian segment of Internet sales. The leader in terms of online sales in Russia is Wildberries, which occupies almost 23% of the market. The second place takes Ozon (14%), the third place is taken by Sber (5.5%), a year earlier the third place was taken by the M.Video-El Dorado network. A distinctive feature of the marketplace is the higher availability of competitors’ goods to customers than in the online stores of individual enterprises (manufacturers or retailers), and the speed of the buyer’s transition between the offers of various suppliers is literally lightning fast. It should be noted that the number of sellers at each marketplace is increasing – Yandex.Market has demonstrated the dynamics of 227%, Ozone – 221%, SberMegaMarket – 219%, Wildberries – 150%. According to experts, in 2023–2024, the continued growth of sellers’ presence on electronic platforms is possible, since the transition to digitalization of trade processes at the stages of product sales is not realized by all potential sellers. Marketplaces have mechanisms aimed at involving buyers in the selection process, stimulating the purchase of not one, but several products at once, convenient opportunities for the seller for additional sales (offering a set, related products, etc.). Large retail chains also do not abandon the use of e-commerce and e-grocery, starting to partially function as order pick-up points [6]. For example, «Detsky Mir», gave away part of the stores’ area for storage of goods purchased using an online store. JSC «Russian Post» is developing a project for organizing the delivery of Russian-made wine, within the framework of which special packaging for the safe shipment of wine bottles is being tested, an integration platform for consumers, producers and post offices is being designed, as well as special issues related to the turnover of alcoholic beverages are being solved. Modern marketplaces in the Russian Federation are becoming not only the largest players in the e-commerce market, but also large consumers in the labor market. The organization of their daily work is based on a large transport and logistics facility, information and communication infrastructure, quality and supplier selection service, technical support and order processing and tracking service. But being advanced organizations in terms of use of modern digital technologies, they stimulate the gradual primitivization of labor, i.e. as a result of the emergence of a large number of new pick-up points and postamates, the demand for unskilled labor is growing on the market. These workers are also characterized by high labor mobility. Primitivization has become inevitable due to the impossibility of carrying out a large number of routine operations in the process of commodity distribution without human participation. Improving the quality of e-commerce services stimulated the process of creating fulfillment centers. When online trading requires a completely different approach to the placement of goods with a small storage depth, to the picking of orders, new processes appear in the form of packaging and labeling orders for various delivery services. Fulfillment centers use an area three times larger than traditional retail distribution centers that operate with the same amount of goods. This is due to the assortment features of

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online commerce, where goods with a small balance are required for each position. For an effective picking process, it is necessary to organize storage not in pallets, but in cells individually for operational access [7]. Modern means of automation of intralogistics processes can significantly improve the efficiency of fulfillment centers and reduce operating costs. Since 2007 robotic systems have begun to be introduced into fulfillment in the world, which increases the number of orders processed several times [8]. But in Russia, most fulfillment centers, even large marketplaces, use manual selection, due to the high capital intensity of the business. For example, for the equipment of a warehouse for a fulfillment center with an area of 10 thousand m2, about 700 million rubles are required. At the moment, most fulfillment centers are concentrated in Moscow and the Moscow region, which is reflected in the uneven regional structure of purchases in online retail. The central Federal District accounts for 42%, the North-Western and Volga Federal Districts have 13% each, the remaining federal districts account for less than 10% [2]. Only large online retailers develop fulfillment in regions, which is necessary for the speed and quality of e-commerce delivery services. The lack of proper development of fulfillment in the Russian Federation is dictated by several factors: 1. Refusal of the services of a specialized IT integrator, which causes a delay in the process of integrating systems necessary for the implementation of online trading. 2. Limited access to information about deliveries and availability of goods. 3. The high cost of fulfillment services. At the moment, it is important for fulfillment to expand logistics service packages, connect new universal platforms and niche marketplaces. API integrations with marketplaces based on the DBS model will also be developed. It should be noted that another feature of both online and offline retail trade development on the territory of the Russian Federation is the changes in the issue of suppliers. Until 2022, direct suppliers of goods for Russian marketplaces were countries such as the USA (in 2020 they formed 8% of deliveries), Singapore (10%) [9]. Import channels in 2022 were mainly provided by Belarus and Kyrgyzstan. If Belarus traditionally formed a significant share in the supply channels – in 2020 it imported 11%, in 2021 – 13%, in 2022 – 25%, then the share of e-commerce products from Kyrgyzstan was not significant – in 2020 it was 2%, in 2021 – 5%. However, 2022 showed a significant increase – the share was 11%. Parallel imports carried out through these countries made it possible to ensure the supply of goods, despite the logistics problems caused by sanctions and the unwillingness of foreign manufacturers to interact directly with the subjects of Russian trade. At the same time, the change in the geography of deliveries did not affect the development of online trading. Another significant type of online trading platforms that allows a lot of buyers to meet with a lot of sellers are classifieds. Avito is currently the largest classified in Russia. In November 2021, the site was visited by almost 280 million users, on average, visitors spent 11 min on it and viewed 11 ads on the site in one visit. At the moment, classifieds work not only in the C2C segment, but also a significant part of the suppliers of goods are legal entities or enterprises without the formation of a legal entity that have their own large online stores and extensive networks of offline

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selling points. According to the results of the study, 85% of visitors to classifieds have made at least one purchase of new things on ad sites over the past six months. The volume of retail trade through vending machines and robotic kiosks is growing. More and more retail representatives, as well as some manufacturing companies developing their own retail sales, use vending and automation of the shopping system. For example, X5 Retail Group launched stores of the «Pyaterochka #Naletu» format with a fully automated shopping system. Stores operate on the principle of a «smart home» (X5 Retail Group’s own developments): based on the IoT architecture, there is a system of special sensors that automatically monitor the process of entering, exiting, and being inside the facility. One of the retail trends in 2022 was the increase in sales of goods under own trademarks. According to experts, each federal retailer has about 10–11 own brands, under which more than 5 thousand items of goods were let in last year. The reason for the growth of the share of own brands in the revenue of companies was the withdrawal of foreign brands from the market, as well as restrained demand from consumers for more expensive products. The vacant niche was occupied not only by the products of own brands already available on the market, but also by new products in the line of their own, created under the influence of favorable external factors. The average share in the revenue of own brands in the sales volume of food chains was 20%. In the non-food sector, the share of own brands in revenue reached 42%, showing an increase of 8% compared to the previous year. The highest share of own brands is noted in the categories of clothing and footwear. The share of products of these categories under own brands in the Detsky Mir and Snow Queen retail chains exceeds 90%. In Sportmaster, bicycles, skateboards and exercise equipment became the largest categories of products of its own brands last year. The share of sales of such goods was 95%. In the market of household goods in Do It Yourself format stores, the share of own brands increased by 2% and amounted to 12% in the revenue of trading entities. There is a tendency to organize organic and farm departments or zones on the territory of hypermarkets, supermarkets and general stores. Such organization can be implemented in the form of collaboration with other regional stores (development in the shopin-shop format – a department in the store with the necessary traffic and target audience, joint purchases). The noted trends are blurring retail trade formats, changing its offline appearance. Based on the highlighted trends and features of retail trade development, the authors have compiled a forecast of its structure by sales channels and presented it in Table 1. We believe that hybrid models combining the values of several trade formats will develop. For example, supermarket, market/fair and darkstore.

4 Discussion It should be noted that there is a redistribution of consumers from a variety of offline channels to a variety of online channels. At the moment, the buyer is increasing the number of channels used and a partial degradation of offline retail is expected: closing stores, reducing the assortment, unpredictability of prices. Even if we compare the existing number of return points of the Wildberries marketplace with the total number of stores of the X5 Group and Magnit chain retailers, the former is 2.5 times ahead, which shows greater accessibility for the buyer.

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Table 1. Dynamics of the structure of retail trade by sales channels in the Russian Federation, % Name of the type of store/site

2020

2021

2022

2023 (forecast)

Offline channels Mini market/convenience store

27

29,6

31

34

Discounter

2,3

3

3

4

Supermarket

22

21

20

19

Hypermarket

13

11

10

9

Traditional trade

35,7

35,1

35,3

32

Stores without a salesman/ robotic kiosks

–

0,3

0,7

2

Marketplacea

19,2

25,8

36,7

41,7

Classifieds

28,2

24,4

21,9

21,3

Social networks and messengers

6,8

15,0

9,4

9,4

Online stores

45,9

34,8

32,0

27,6

Source: authors

Forecasting sales volumes through online retail channels is quite difficult, because the data for the last three-year period are contradictory. The authors insist on strengthening the share of marketplaces in total revenue. eCommerce in the Russian Federation is undergoing a transformation into the «Marketplaces&Brand stores» model. The former form an ecosystem around themselves, and specialty stores can offer unique advice on goods and apply direct sales. The remaining channels will serve as additional ones.

5 Conclusion Reducing the consumer’s costs led him to revise the structure of his purchases and prefer sellers’ own trademarks. Changing consumer behavior contributes to the development of classifieds as platforms for sellers-legal entities. Foreign economic conditions and the implementation of import substitution contributed to the optimization of logistics solutions, which led to the revision of trading partners and the separation of independent elements in the supply chain – fulfillment centers. The desire to save time has aroused interest in online shopping, the widest possible range of products for which are provided by marketplaces. The expansion of marketplaces is caused by their active penetration into residential areas of the city, the emergence of their own marketplaces from individual large companies, including those with state participation and the creation of industry platforms. The active development of marketplaces is facilitated by their synergy with marketing channels [10]. The influx of new brands to the Russian market is expected, and the marketplace will be considered as the main selling points due to the following reasons: 1. The ability to evaluate sales conversion and analyze user traffic, reports on the current assortment;

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2. Places to search for the current product, not an appeal to the search engine; 3. Using the channel’s media capabilities not only by sellers, but also by external advertisers. Knowledge of online trade trends will allow traditional retail companies to hold leading positions.

References 1. Veloso CM, Sousa BB (2021) Drivers of customer behavioral intentions and the relationship with service quality in specific industry contexts. Int Rev Retail Distrib Consum Res 32(1):43– 58 2. Association of Internet Trade Companies (AITC). https://akit.ru/analytics/trade. Accessed 24 Mar 2023 3. Van Veldhoven Z, Vanthienen J (2021) Digital transformation as an interaction-driven perspective between business, society, and technology. Electron Mark 32:629–644. https://doi. org/10.1007/s12525-021-00464-5 4. Alt R (2022) Electronic markets on platform dualities. Electron Mark 32:1–10 5. Number of postamates in Russia in 2022. Annual rating Ecomhub. https://ecomhub.ru/thenumber-of-postamates-lockers-in-russia-in-2022-ecomhub-annual-rating. Accessed 26 Mar 2023 6. Neslin SA (2022) The omnichannel continuum: integrating online and offline channels along the customer. J Retail 98(1):111–132 7. Ardjmand E, Bajgiran OS, Rahman S, Weckman GR, Young WA II (2018) A multi-objective model for order cartonization and fulfillment center assignment in the e-tail/retail industry. Transp Res Part E: Logist Transp Rev 115:16–34 8. Li L, Wang Z, Ye F, Chen L, Zhan Y (2022) Digital technology deployment and firm resilience: evidence from the COVID-19 pandemic. Ind Mark Manag 105:190–199 9. Stone M et al (2021) Reciprocating business model innovation – how client and supplier models interact. J Bus Bus Mark 28(2):187–202 10. Stone M, Woodcock N (2021) Developments in B to B and B to C marketing and sales automation systems. J Bus Bus Mark 2(28):203–222

Development Prospects of Regional Business Under Conditions of External Challenges and Threats A. D. Bogdanov

and O. E. Pudovkina(B)

Syzran Branch of Samara State University of Economics, Syzran, Russia [email protected]

Abstract. The authors analyze the state of socio-economic development in the difficult conditions of sanctions impact on the domestic economic system. It is concluded that under the current conditions, the position of the business sector seems to be especially vulnerable, the state of which was significantly «undermined» due to the COVID-19 pandemic in 2020–2021. To develop prospects for the development of the business sector, the authors analyzed the volume of funding for entrepreneurship support programs in the region based on data from the Unified Register of Small and Medium Business Entities. Quantitative estimates of the direction of the policy for the development of entrepreneurship at the regional level have been obtained and an indicator of the activity of regional authorities in supporting entrepreneurship has been formed. A conceptual model has been proposed for the consistent development of the entrepreneurship support fund in the context of the implementation of the main business processes in the current business environment, which makes it possible to increase the speed of managerial decision-making. A regional center for business cooperation of small, medium and large enterprises has been proposed. The inevitability of such a structure is determined by the need to attract competencies when creating new products in the context of the import substitution and their promotion to the market. The main task of the center is to unite manufacturers, suppliers and developers of import-substituting products, in which scientific laboratories will be involved. Keywords: Business Cooperation Center · Business Sector · Entrepreneurial Potential · Entrepreneurship Support Fund · Import Substitution · Regional Policy

1 Introduction Today, the regional policy is considered as one of the areas of activity to ensure sustainable socio-economic development in a difficult business environment. In 2022, the Russian economy faces unprecedented challenges. The sanctions impact on the domestic economic system and a sharp outflow of investments have radically changed the usual course of life for most economic entities. International settlements were largely limited, most large foreign companies closed their representative offices in the Russian © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 426–433, 2023. https://doi.org/10.1007/978-3-031-38122-5_59

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Federation or significantly limited their activities in the country. This led to a break in the supply chains that had been formed over the years and created the risk of an acute shortage of most imported goods and components, as well as significantly increased their prices. In addition, the impact of the sanctions, which undoubtedly had a negative effect on the financial and economic system of the country, gave a tangible incentive to the development of certain parts of the manufacturing sector. Crises can shock the system, but, being a critical moment, they provide opportunities for transformation [1]. In the conditions described, the position of the business sector seems to be especially vulnerable. The possible consequences of changes in the economic and political environment, as well as in the business environment are becoming more and more destructive, the speed of changes is increasing and the time allotted for response is decreasing [2]. In the current situation, the following question becomes relevant: what are the promising opportunities for further development of the business sector in the future and what can radically change the situation? In addition, the problem of optimizing the relationship between small, medium and large businesses is quite acute in the implementation of the system of measures of the regional policy in the field of entrepreneurship. In particular, there is a need for functionally substantiated cooperation of activities, taking into account the current situation in the economy. Not the last role belongs to the system of measures of the regional authorities, aimed at creating a favorable business environment in order to support the production sectors of the economic complex, i.e. implementation of the tasks of the state regional policy. At the same time, the disclosure of new opportunities for the business sector, which is capable of performing the functions of a generator of sustainable regional development, is of great importance. In this context, the task of developing possible directions for the development of the business sector to ensure balanced regional development becomes relevant.

2 Methodology The solution of the research tasks required the use of methods of generalization and systematization of information. The research materials included data from federal and regional state statistics bodies, a unified register of small and medium-sized businesses, materials from various rating agencies and analytical centers. Statistical analysis of the data made it possible to obtain information on the dynamics of the volume of sectors of the Russian economy, the PMI industrial activity index in the Russian Federation and the volume of financing of regional entrepreneurship. The review of scientific literature made it possible to study the state of the business sector in the current conditions and develop a conceptual model of its development to stabilize the economic situation at the regional level.

3 Results The development and active support of entrepreneurship are identified as priority tasks for the long-term socio-economic development of the Russian Federation [3]. It should be noted that after a period of constant shocks in the spring–autumn of 2022, the Russian

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financial and economic system began to gradually adapt to new realities. So, according to the materials of the report of the Bank of Russia «Regional Economy: Comments of the State Administration» [4], as of February 01, 2023, there has been an increase in the economic activity, the trend that began to form earlier during 2022 continues. First of all, it is associated with the launch of new industries, most of which are focused on providing the market with products similar to those that were previously produced/supplied by foreign companies that have ceased operations in the territory of the Russian Federation. At the same time, within the framework of individual regions, various trends are observed in the context of the development of individual industries. Thus, in the Northwestern regions of the country (in particular, in the Leningrad and Pskov regions), there is an increase in production in the field of chemical and pharmaceutical industries, in the Volga region – in the field of production of investment goods, in the Urals – in mechanical engineering Separately, it is worth highlighting the Far Eastern federal district which is experiencing growth of the logistics industry by more than 25% compared to the same indicators of the previous year, which, according to experts of the National Credit Ratings [5], is associated with an increase in imports and exports passing through the Far Eastern regions: according to the results of 2022–2021 trade turnover between Russia and China amounted to $190 billion, which is 29% higher than in 2021 [6]. The volume of trade with India also increased significantly: over the past year, the countries increased trade turnover by 2.4 times, primarily due to the supply of fuel, energy and chemical products from Russia and consumer goods from India. At the end of 2022, we can conclude that the negative forecasts regarding the Russian economy, for the most part, did not come true. Instead of a 20% drop, the country’s GDP decreased by 2.1%, which is comparable to the decline after the introduction of sanctions in 2015, with their significantly lower volume. The reason for this is the relatively fast structural transformations in the domestic economy: the market is actively moving towards the import substitution, as evidenced by the maximum growth rate of industrial production over the past 5 years. This circumstance is additional evidence of the high adaptability of the Russian business sector and its efficiency. Considering also the latest assessments and forecasts [7], it can be assumed that in the foreseeable future the country’s economy is expected not only by the growth of entrepreneurial activity and a relatively quick recovery after the recession caused by the pandemic and sanctions, but also by a tangible change in its structure with a bias towards the growth of the manufacturing sector. The country is taking numerous measures to increase the economic growth using a new approach and tools [8]. Despite the fact that external influence did not bring down the Russian economy, its subjects faced a number of large-scale problems that have a tremendous impact on the development of the country’s business sector. In a particularly vulnerable position were companies whose activities are directly and indirectly related to the use of imported goods, raw materials or software. In the context of maintaining or strengthening sanctions in the foreseeable future, most companies using foreign components intend to look for new suppliers, including bypassing the sanctions. Taking into account the negative effect of stopping the work of many enterprises with foreign participation, which has already begun to be offset by the acquisition of their assets by Russian entrepreneurs and the launch of new production facilities, there

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is a high probability that the trend towards an increase in the production volume will continue in the coming years. And, in this regard, it is important to develop directions for the development of the regional business sector and the use of effective levers of financial support to enhance production processes. Sustainable development of the regional economy in the current global economic situation depends on the ability to innovations and entrepreneurship [9]. Under the regional policy of entrepreneurship development, we understand, on the one hand, the practical activities of state and regional executive authorities, clearly developed in the legislative aspect, aimed at creating the necessary set of conditions for the development of entrepreneurship, and on the other hand, socio-economic measures acceptances that are carried out within the framework of the national policy, enshrined in the legislation by the regions themselves to achieve certain regional goals and objectives. Entrepreneurship makes an important contribution to the general regional development [10]. To develop prospects for the development of the business sector, the authors analyzed the amount of funding for entrepreneurship support programs in the region based on data from the Unified Register of small and medium enterprise subjects – support recipients. [11]. The amount of allocated funds at the beginning of 2023 increased compared to 2021 and 2022. The achieved indicators are a natural consequence of the implementation of a whole range of decisions and activities to support business initiatives in the regions, develop the sector of small and medium-sized businesses and create a favorable business climate, taking into account the difficult socio-economic conditions and challenges of the new reality [12]. In general, when analyzing the financial support of regional development programs, in the implementation of which the business sector is fully involved, positive trends should be noted that characterize the financial side of its support. However, we note that in crisis conditions, it is obvious that the expectations of entrepreneurs regarding the volume of the state support for business will grow. Depending on the scenario of further development of events (strengthening, maintaining or mitigating sanctions pressure), business entities expect an increase or, at least, the preservation of the volume of the state support measures. The main factor hindering the development of the state policy in the field of business support is currently the limited state budget reserved for such purposes. At the regional level, to support production processes, there are entrepreneurship support funds, the specifics of which are to help entrepreneurs in the competent organization and development of their business. It should be noted that the state regional funds function in the conditions of budget financing, that is, their material resources are quite limited. At the same time, they are an instrument of power, and therefore have a significant administrative resource, which allows them to receive information and answers about business activities much faster than the business sector (or even associations of entrepreneurs) can do, to involve institutions of education and science, as well as other entrepreneurs who work in the field of services and goods for business (B2B). Based on the main opportunities and goals, we will form an improved conceptual model for the consistent development of the entrepreneurship support fund in the context

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of the implementation of the main business processes in the current business environment (Fig. 1).

Fig. 1. Conceptual model of the business process for the development of an entrepreneurship support fund from creation to self-sufficiency (Source: authors).

The stages proposed by the authors of the improved conceptual model of the business process for the development of an entrepreneurship support fund are the following stages: Stage 1. Collection of information about the current situation regarding the business support infrastructure in the region. Stage 2. Reporting the collected information to associations of business entities in the region and to business entities that are not included in such associations. Building constant communication with them using an Internet resource. Stage 3. Organization of advanced training in the field of entrepreneurship and other training programs (with the involvement of representatives of state bodies working with business, as well as business entities providing consulting and educational services). Stage 4. Organization of constant interaction with business entities, primarily with those who have completed training programs. Including within the framework of providing resource support (compensation of interest on loans received at the expense of the regional budget, etc.). Stage 5. Creation of a center providing services for business (with a focus on providing commercial services for entrepreneurs in other regions and countries).

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4 Discussion The main direction of the development of entrepreneurship in the regions should be the improvement and specification of functions for the development and support of entrepreneurial activity [13]. The proposed approach to the organization of entrepreneurship support funds will increase the speed of business processes in the region, because business entities spend a significant amount of time searching for primary information, checking potential counterparties, selecting training programs and searching for opportunities to obtain additional resources. At the same time, the successful solution of the problem of collecting and structuring information, organizing effective training and building a communication system with business entities will create an opportunity for extra-budgetary self-sufficient financing of the business sector development fund. In addition, within the framework of the business sector support fund, we propose to create a center for business cooperation of small, medium and large businesses, the inevitability of which is due to the need to attract competencies when creating new products in the context of import substitution and their promotion to the market. On the basis of this regional center (RC), a unique service will be created for the development of strategically important areas of the Russian state, such as digital technologies, industry, engineering, innovation, and others, within which a wide range of production development tools is offered. These are solutions in the field of digital, additive, technological technologies, data and knowledge management, infrastructure of strategic areas of regional development, and more (Fig. 2).

Fig. 2. Regional center for business cooperation of small, medium and large business (Source: authors).

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The center will act as a single platform for working with large, medium, small companies, regional authorities and scientific organizations. Regional authorities will implement elements of industrial policy on behalf of the Ministry of Industry, Entrepreneurship and Trade in the field of obtaining administrative and financial support for activities. In addition, the functions of the center will include the formation of a register of technical and engineering requests of large enterprises, the search and preparation of solutions to these problems with the involvement of small and medium-sized businesses, that is, the formation of cooperation between potential contractors. Small and medium businesses will be involved in the execution of industrial orders, promotion of products at the regional, federal and international levels. The creation of a regional center will facilitate the launch of innovative products and developments of small and medium-sized companies on the market by building cooperation chains with the involvement of large partners, providing support measures in the direction of industrial cooperation. Note that the integration of medium and small enterprises should not be limited to supplies only. It is important to use innovative entrepreneurship for the development of product lines of large companies, for the creation and modernization of existing industries that are based on innovation and technology, together with business and science, they must build the infrastructure for commercialization and innovations. Thus, cooperation will make it possible to participate in the chains of large business, this is especially true in the context of technological capabilities in the context of limited foreign supplies.

5 Conclusion Promoting the development of the business sector is one of the measures of the regional policy, which provides the need for financial support of priority production sectors of the economy in the face of external challenges and threats. In the course of implementing its tasks, emphasis should be placed on improving the conceptual model for the development of an entrepreneurship support fund, which will help optimize the business process management and create prerequisites for sustainable regional development as a result of the growth of the economic potential of administrative-territorial entities. As a result of the study, the authors came to the conclusion about the creation of a center for business cooperation of economic business structures, in particular small, medium and large businesses, which will contribute to the development of industries in the manufacturing sector in the context of the import substitution.

References 1. Loewen B (2022) Coal, green growth and crises: exploring three European union policy responses to regional energy transitions. Energy Res Soc Sci 93:102849 2. Zafari K, Biggemann S, Garry T (2023) Development of business-to-business relationships in turbulent environments. Ind Mark Manage 111:1–18 3. Pleshakova MV, Pleshakov GG (2018) Analysis of the development directions of existing methods and system of indicators of the state of the entrepreneurial environments at the meso level in consideration of the value approach. Bull Altai Acad Econ Law 5:203–211

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4. Bank of Russia: Regional Economy: Comments of the State Administration. https://rosstat. gov.ru/enterprise_industrial Accessed 30 Mar 2023 5. National Credit Ratings: Russian economy. Analytical study. https://ratings.ru/files/research/ corps/NCR_Resilience_150622.pdf. Accessed 01 Apr 2023 6. RBC: Russia’s trade with China reaches a record. https://www.rbc.ru/economics/13/01/2023/ 63c0ffb79a79474aaf45862d. Accessed 01 Apr 2023 7. Dynkin AA, Baranovsky VG (2021) Russia and the world: 2022. Annual forecast: Economy and foreign policy / Project leads. 1st end. IMEMO, Moscow 8. Batirova N (2021) Measures to stabilize the socio-economic development of regions in a pandemic (on the example of the industrial complex of the Tashkent region). Bull Soc Econ Humanitarian Res 9(11):2–14 9. Talmaciu M (2012) Considerations regarding the development of Romanian regional economies through innovation and entrepreneurship. Procedia Econ Finan 3:914–920 10. Huang Y, Li S, Xiang X, Bu Y, Guo Y (2022) How can the combination of entrepreneurship policies activate regional innovation capability? A comparative study of Chinese provinces based on fsQCA. J Innov Knowl 7(3):100227 11. Unified register of small and medium enterprise subjects – support recipients https://rmsppp.nalog.ru/. Accessed 01 Apr 2023 12. Salikhova SF (2022) Small business development in the new reality: regional opportunities and limitations. Ekonomika, Predprinimatelstvo i Pravo 12(12):3189–3204 13. Ushchenko AL (2014) Problems and ways of development of regional systems of entrepreneur-ship in Russia now. Modern Sci Res Innovations 6(38):54

Economic Aspects of Enterprises’ Sustainable Development L. R. Tuktarova(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. The author explores the essence of sustainable development of enterprises and the main provisions of its assessment. The relevance of this problem in the market conditions is undeniable. Sustainable enterprises are enterprises that operate continuously, are able to withstand disturbances in the external environment without signs of loss of liquidity (solvency) in the foreseeable future. This state leads to the functioning of the enterprise in a stable and dynamic balance with its operating environment. To maintain its sustainable development, an organization must have an effective self-control (prevention) system that would detect signals of deviations from accepted standards (including the required level of sustainable development) early enough to take appropriate measures. Only in this case, the activity of the enterprise will be based on a solid foundation, which will ensure sustainable growth. This determined the research direction, the main task of which is to find out the essence of sustainable development, its specific features and criteria for its assessment. Particular attention in the contribution is paid to the self-control system, which allows you to timely identify signs of the enterprise’s instability and eliminate them, which is a measure of the success of the enterprise’s management personnel. Keywords: Economic Aspects · Financial and Economic Stability · Financial Condition · Sustainable Development · Sustainability · Stability Assessment Indicators

1 Introduction In the modern economy, there is no single generally accepted and used definition of sustainable development, so this research topic is especially relevant today. In recent years, attempts have been made to formulate the essence of sustainable development. However, most studies on this topic fit into a specific topic of an article or speech, but do not reach a full-fledged scientific work. Most authors prefer to define not financial and economic stability, but financial instability or systemic risk. Thus, the approach used is not to determine the stability, but, on the contrary, to determine its absence. Systemic risk management can affect management decision-making to prevent a crisis situation (bankruptcy), analysis and analytical conclusions [1]. It should be noted that the issue of assessing the sustainable development of the enterprise’s work is given considerable attention in the studies of Russian and foreign © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 434–441, 2023. https://doi.org/10.1007/978-3-031-38122-5_60

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experts [1–4]. The main purpose of this work is to prove the need for sustainable development of enterprises, to show factors influencing the increase in the sustainability and solvency. According to the author, the importance of an accurate and timely assessment of the stability of the enterprise is beyond doubt, therefore, at present, the subject of assessing the sustainable development is particularly relevant.

2 Methodology Statistical information related to the financial and economic stability of an enterprise is often inside information that is a commercial secret. This fact was taken into account during the course of this study. However, according to indirect indicators that are available in open sources (accounting (financial) statements of the enterprise), it is quite possible to obtain a reliable and complete picture about the stability of the work of Russian enterprises. Therefore, to achieve the research goal, it was possible to use empirical, diagnostic, retrospective, prognostic and stochastic methods.

3 Results In a digital economy, an enterprise can be successful in the competition by increasing the efficiency of its activities. To ensure the effective functioning of the company requires the correct and proper management of the enterprise. The most important element of the company’s management is the analysis of the economic activities of the organization. Analysis of the economic activity of the organization is the basis for making managerial decisions in business. To justify managerial decisions, problems should be identified, production and financial risks should be assessed, and possible consequences of the decisions taken should be determined. One of the problems facing Russian enterprises is to ensure their economic stability. To ensure the stable operation of an enterprise in a market economy, the administrative apparatus needs to assess the possible and appropriate pace of development of the enterprise from the position of financial support, find new and reliable sources of funds, thus contributing to the development and improvement of the sustainability of its economic entity [2]. The sustainability and stability of the financial condition of the enterprise depends on many results: production, commercial, financial and investment. The stable state of the enterprise has a positive effect on its activities. The administrative apparatus assesses the stability in order to analyze the current financial condition, allocate existing resources, decide where it is more expedient to direct them to ensure the smooth operation of the enterprise, identify ways to increase profits and capital. Sustainability analysis is necessary not only for managers, but also for their potential partners, who need to have an idea about the stability, financial condition and reliability of their client or customer. Therefore, every year this analysis becomes more and more important [3]. Financial stability is the ability of an organization to maintain its existence and smooth operation, thanks to the availability of certain free funds and the balance of financial flows. We can say that this is one of the most important indicators of the stability of the enterprise. An enterprise is considered financially stable if income exceeds

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expenses, funds are spent wisely and efficiently, there is a well-established mechanism for production and marketing of products. The indicator under consideration is classified according to the stability degree: absolute, normal, unstable and crisis state. Depending on the sustainability type, the enterprise determines ways to improve the efficiency of its activities. The absolute stability can be established if the inventory exceeds the size of own working capital and bank loans against these values. This type of stability indicates a high level of solvency of the enterprise and its independence from creditors. The absolute financial stability in Russia is extremely rare. The normal stability can be established if the indicators of the size of material and production resources and the size of own working capital (loans) are identical. This type of stability indicates normal solvency and rational use of borrowed funds, the current activities of the enterprise bring a high income. The normal financial stability guarantees the fulfillment by the enterprise of its financial obligations. The unstable position indicates that the solvency of the enterprise is violated. There is a need to attract additional sources of funding. Restoration of solvency with this type of stability is possible. The crisis situation indicates the insolvency of the enterprise and the increased risk of bankruptcy. The company is unable to cover its debts. The main indicators that also provide information for analysis are the coefficients: autonomy, the ratio of own and borrowed funds, financial stability, maneuverability of equity capital, short-term debt, solvency. The autonomy coefficient shows the share of own capital in the assets of the enterprise. The value of the coefficient is of interest to potential lenders, due to the fact that a high share of own funds indicates a high probability that the borrower will be able to make timely payments on obligations. The ratio of own and borrowed funds shows how many units of borrowed capital account for a unit of own. By the value of the coefficient, we can conclude how much the company is dependent on borrowed funds. The financial stability ratio indicates how much of the assets are financed from reliable sources. The coefficient of maneuverability of equity capital shows what part of the company’s own funds is used to support its activities. The short-term debt ratio shows the share of short-term liabilities in the total amount of external liabilities (what share in the total amount of debt requires short-term repayment). An increase in the coefficient increases the organization’s dependence on short-term liabilities, requires an increase in the liquidity of assets to ensure solvency and financial stability [1]. When analyzing the financial stability, the solvency of an enterprise is singled out separately, which is calculated according to the balance sheet and characterizes the ability of the enterprise to make payments on its obligations. The solvency ratio reflects the company’s ability to pay for its existing obligations. Based on the data of accounting analysis, we see that the enterprise has no borrowed funds, despite the fact that the degree of solvency of the enterprise is very high, and it is able to make payments on its obligations. This, of course, can be seen as a positive factor. However, with the help of borrowed funds, you can significantly expand your production, launch new production shops in other cities, open additional production to the existing one, which will reduce the cost of purchasing raw materials. Theoretical and methodological foundations for analyzing the sustainable development of an enterprise have not yet been fully developed. It is extremely difficult to

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single out a single target variable for assessing sustainable development in the absence of a framework, a set of models, or even the concept of equilibrium, so this paper will consider several points of view on financial and economic stability. The concept of sustainable development is mainly considered in the literature in the macroeconomic context. For example, the financial stability is seen as a necessary condition for the proper functioning of the economic system of a country seeking to achieve economic growth. The financial stability is most often identified with the stability of the financial system. So common that it has practically become a pattern, however, different authors give slightly different definitions of this term. Summarizing their points of view, we can conclude that most researchers understand the financial and economic stability of an enterprise as a state in which this enterprise performs its functions smoothly and efficiently, even if unexpected and unfavorable disturbances of a significant scale occur. It is worth emphasizing that the presented definition of stability considers this term, on the one hand, as a state of proper functioning of the system, and on the other hand, as a state that prevents the transfer of threats to individual enterprises of the same market [5]. The study of various definitions confirms that the literature focuses on the state of dynamic equilibrium. According to K. Chernavsky, the financial and economic stability of an enterprise is a certain set of criteria, the values of which lie in certain specified ranges [2]. From the point of view of Russian economists, the financial stability (stability) of any profitable enterprise is its solvency, i.e. the ability to repay its obligations (loans). The study conducted by R.S. Kaplan and D.P. Norton [4] expands this idea: these authors believe that financial and economic stability should be considered as a systemic, complex indicator. That is, from their point of view, it seems inappropriate to consider each criterion of the stability separately; it is necessary to try to combine all possible sustainability criteria into a single set. According to the theory of sustainable development, the current potential of an enterprise is determined by calculating its financial potential. This is achieved using the method of determining the financial ratios of current activities, based on the use of the company’s financial statements. However, such an analysis, reflecting individual past indicators, is not sufficient for the development of an enterprise in turbulent conditions. Summarizing the above definitions, we can propose a definition of sustainable development: an enterprise that works in accordance with the established goals, despite all the perturbations, will be financially stable; it is able to withstand shocks, quickly returning to the path of growth whenever it is pushed off it. The financial stability allows an enterprise to fully perform its economic functions related to the acquisition and distribution of capital, as well as the proper use of capital in financial and economic activities. Financial and economic stability can be assessed based on selected financial parameters such as liquidity, solvency or profitability. Therefore, the enterprise should be able to develop standards for these parameters in order to delineate the areas of sustainable development of the enterprise. The identification of any violations in any of these areas, in turn, facilitates the adoption of measures that could correct or eliminate the adverse effects of the identified violations.

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Thus, the maintenance of sustainable development is possible only thanks to a wellfunctioning and effective system of self-control. Such a system should be able to handle deviations from enterprise standards in the right way at the right time and at the lowest possible cost. A self-monitoring system can also be called an alert system, the starting point for which can be a built-in analysis of financial ratios. From a practical point of view, the most reasonable is a self-control system based on the idea of early warning of a threat [6] – this facilitates the identification of threats to the enterprise, and, therefore, will allow assessing the stability of the enterprise both in the short and long term.

4 Discussion The financial and economic stability of the enterprise allows it to take steps leading to continuous growth and commercial success. A financially stable enterprise works without any shocks; if necessary, it is able to withstand shocks; and it is constantly financially liquid and solvent. Therefore, the enterprise operates in a dynamic, stable balance with its operating environment. The assumption of such an understanding of sustainable development confirms the assertion that stability is the key to the efficient operation of an enterprise. Currently, a well-established self-control system contributes to maintaining the sustainable development of the enterprise. Under such conditions, it is able to function in accordance with expectations and achieve its goals. Thus, stability is such a state of an enterprise that allows it to implement initiatives aimed at achieving the set goal [7]. An enterprise that strives for sustainable growth is able to meet the needs of all stakeholders. For this reason, an enterprise striving for sustainable growth, of course, must function effectively, while only its financial stability contributes to uninterrupted continuous operation. Without stability, sustainable growth cannot be achieved. In cases where an enterprise becomes unstable (i.e., the system of self-control does not fulfill its task), it is forced to take corrective steps in the form of restructuring. Such steps can help restore the stability and restart the operation of the enterprise, leading it to sustainable growth. However, if the enterprise fails to launch such mechanisms, the effect will be the same as if the restructuring was not carried out (that is, the bankruptcy of the enterprise). Thus, sustainable growth can serve as the goal of an enterprise, since it indirectly relates to all the stakeholders of the enterprise. The financial stability of the enterprise proves the prerequisite for its sustainable growth [8]. A study of domestic and foreign economic literature, conducted by the author, allows us to state that the financial and economic stability of an enterprise is closely related to its financial condition and is determined by its financial stability, which persists for a long period of time. The problem of assessing the sustainable development is always relevant for economists. There are several approaches to assessing sustainable development, the main ones are: – assessment of absolute and relative indicators of sustainable development; – assessment of the capital structure and property of the enterprise;

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– risk management [9]. Absolute indicators characterize the state of the company’s reserves and allow you to determine the sources of coverage of reserves. The main absolute indicator is the value of own working capital (current assets minus short-term liabilities), which characterizes the part of the assets that are aimed at making a profit. An enterprise is characterized by the absolute stability if it has its own working capital to ensure its activities. In a situation where the organization is forced to resort to borrowed funds, the enterprise is relatively financially stable. If the enterprise does not have enough total amount of inventory formation, then in this provision there can be no talk of stability. Relative indicators provide an opportunity to assess the impact of various factors on the financial and economic stability. They are more suitable for spatio-temporal comparisons, because cleared of the inflation component. In the economic literature, many stability coefficients are distinguished. Each author has his own system of relative indicators, and often these systems do not coincide with each other, and sometimes even contradict each other. Bringing different points of view on this issue to a single system of indicators is a topic for a separate study. The risk management approach to assessing the stability of an enterprise involves the identification of financial risks in the course of the enterprise’s activities. Calculation of financial leverage illustrates this approach. To analyze the sustainable development of an enterprise, it is important to analyze the structure of its capital and property. An organization is considered financially stable if the size and structure of capital meet the need for resources and the company has property with which it can cover its obligations in unforeseen situations. The objectives of such an analysis are to assess the composition and structure of capital, property for the analyzed period, to identify how the composition and structure of capital and property changed, to establish reasons of changes, to evaluate on the basis of horizontal and vertical analysis directions of the capital and property use.

5 Conclusion An analysis of the financial stability of an enterprise is an important element in the production management system, an effective means of identifying intra-economic reserves, the basis for the development of economic plans and management decisions. The financial stability is a guarantor of a firm position of the enterprise. The higher the stability is, the more independent the enterprise is from unexpected changes in the market conditions, and the lower the risk of being in bankruptcy is. The high stability of the financial position of the enterprise allows attracting additional investments, increasing the range of products and volumes of sales. The reliability of the financial stability of the enterprise allows, in addition to attracting investments, to receive deferred payments from suppliers, to attract funds at a lower percentage, which increases the competitiveness of the enterprise and reduces its costs. At the end of this study, the following conclusions can be drawn. To improve the sustainable development of the enterprise, it is necessary: – to increase absolutely liquid assets, which guarantees the availability of funds for the enterprise to fulfill obligations without attracting borrowed sources, which in

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certain situations may cause risks associated with the payment of interest for the use of borrowed capital; – to analyze the state of settlements with debtors: if the share of overdue receivables is growing, then this may delay the organization’s cash, which causes a shortage of financial resources, so it is necessary to pay special attention to monitoring the state of receivables; – to find opportunities to increase the turnover of funds, which will reduce the production cycle, and, consequently, increase the profit of the enterprise, which in turn will positively affect the stability of its activities; – to form cash reserves, which will protect the enterprise in the event of an outstanding or unsecured receivables. The management of any enterprise should pay special attention to the development of measures to improve its solvency. One of the ways to increase solvency can be changes in the performance of obligations by transferring the company’s debt to its owners with the necessary condition for the consent of the creditor to transfer the debt. In addition, an entity may sign an assignment agreement in exchange for agreeing to accept a debt (in other words, an obligation to repay a debt). At the same time, two debts will be reduced at once: accounts payable and receivable. In addition, an enterprise can develop ways to use resources more rationally and economically by preventing their overruns and losses at all stages of the production process. This will increase the return on total capital, which will eventually return to its original state, but in a larger volume and with a profit. Thus, an enterprise, in an effort to increase the solvency, can carry out the above actions, take appropriate measures, thereby strengthening the stability and ensuring its stable functioning. During the transition to a digital economy, transformations and new opportunities are associated with the development of new and effective management technologies designed to directly ensure the development of industrial enterprises in the absence of economic stability and market instability. However, at the same time, the position of a number of industrial enterprises indicates the lack of the ability to organize fruitful activities to make appropriate management and production decisions, and, consequently, the lack of flexibility of enterprises in the competition [10].

References 1. Osmonaliev AO, Arzybaev AA, Sapalov AA, Tabirisova RT (2016) On the analysis of influence of credit policy of a company on the condition of receivables. Account Anal Audit 4:71–80 2. Chernavsky K (2014) Financial instability of enterprise as the main obstacle hampering development in turbulent environment. J Econ Soc Dev 1(1):123–135 3. Gorczy´nska M (2013) The financial stability of the enterprise and the sustainable development. Zarz˛adzanie i Finan 2(2):99–110 4. Kaplan RS, Norton DP (1996) Using the balanced scorecard as a strategic management system. Harv Bus Rev 74(1):75–85 5. School of Finance and Investment. https://finzz.ru/finansovaya-stabilnost-predpriyatiya-pri mer-kak-dostich.html. Accessed 10 Apr 2023

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6. Gunarathna V (2016) How does financial leverage affect financial risk? An empirical study in Sri Lanka. Amity J Finan 1(1):57–66 7. Nissim D, Penman SH (2003) Financial statement analysis of leverage and how it informs about profitability and price-to-book ratios. Rev Acc Stud 8:531–560 8. Ion P-L, Anis C (2010) Profitability and risk – components of the financial management. Acta Universitatis Danubius: Oeconomica 6(2):39–46 9. Badokina EA, Nekrasova GA (2019) Analysis of the structure of capital and financial risk of Russian corporations. In: Kurakov LP (ed) Law, economics and management: topical issues. Collection of materials of the all-Russian scientific and practical conference with international participation. Publishing House «Sreda», Cheboksary, pp 11–16 10. Bulavko OA, Tuktarova LR (2021) Development of flexible production systems in the conditions of a new technological style. Bus Educ Law 2:39–43

The Evolution of Marketing: From Consumption to Sustainability I. V. Yakhneeva1(B)

, A. V. Pavlova2

, and N. V. Kalenskaya3

1 Samara State University of Economics, Samara, Russia

[email protected]

2 Volga Region State Academy of Physical Culture, Sport and Tourism, Kazan, Russia 3 Kazan Federal University, Kazan, Russia

Abstract. Since the middle of the last century, social and ecological problems have increasingly extended into economic activities. A focus on sustainability is becoming important for everyone involved in the production and consumption process. The concept of consumer-oriented marketing requires a serious revision in the direction of changing the philosophy of business and the consumer. We compare the results of research on consumer and business priorities in different markets, their expectations and actions in order to understand the real movement of marketing towards sustainability. The research results show a growing interest in sustainability issues on the part of consumers and companies. For consumers, sustainability is becoming an important criterion for purchase decisions. Under consumer pressure, businesses declare sustainability priorities, yet actual sustainable marketing activity does not match the statements. In addition, the implementation of sustainable initiatives is driven by the concern of businesses to enhance their image and increase profits. However, the growth of sustainable markets requires new marketing approaches. Therefore, we discuss the necessary changes in the marketing mix and its transformation into sustainability marketing. Keywords: Business Cooperation Center · Business Sector · Entrepreneurial Potential · Entrepreneurship Support Fund · Import Substitution · Regional Policy

1 Introduction In recent years there has been a growing interest of scholars and practitioners in the integration of sustainability in marketing. The adoption of environmental, social, and corporate governance (ESG) principles by companies is reflected in the business priorities and conceptual points of marketing. Sustainability is that area which is being explored by companies for growth and development [1]. Globally, 85% of people indicate that they have shifted their purchase behavior towards being more sustainable in the past five years [2]. According to McKinsey, value creating-companies engage employees in their sustainability programs and put more effort than other companies into understanding customers’ expectations [3]. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 442–448, 2023. https://doi.org/10.1007/978-3-031-38122-5_61

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Sustainability is considered in business-related disciplines, especially in marketing, as companies are interested in a profitable and sustainable future. This area of research provides an opportunity to study issues related to consumer behavior, social and environmental issues, marketing ethics. There has been a consistent growth in «green», «social», «environmental», «sustainable» and «ESG» marketing, which focuses on offering «environmentally friendly» products, understanding the role of the environment in various business areas [4]. B.R. Chabowski, J.A. Mena, and T.L. Gonzalez-Padron argued that sustainability activities in marketing produce important results based on an understanding of the reality of «green» or ethical values in relation to specific purchases [5]. Terminology is a matter of debate in the scholarly literature. Thus, F.M. Belz and K. Peattie point out that sustainable marketing is a type of marketing that aims to form long-term relationships with customers without regard to sustainability issues. As for sustainability marketing, it is defined as building and maintaining sustainable relationships with consumers, the natural environment and the social environment [6]. The range of research in the field of sustainability and marketing is very broad. It covers marketing of relations between business and consumer [7, 8], environmentally friendly behavior of companies in the market [9, 10], internal marketing system development [11]. Researchers conclude that sustainable development requires interdisciplinary study [4]. This point of view is also shared by other researchers. Sustainability as an area of study requires interdisciplinarity, and in some respects it is more interdisciplinary than scientific research in general [12]. Earlier studies viewed sustainability as a part of a marketing strategy that should have a positive impact on consumers. However, this approach does not seem to be comprehensive. Enterprise sustainability, built on the three pillars of environment, social, and governance thinking, needs to demonstrate how it plans to commit and deliver goods and services in a sustainable manner. At the minimum, it should ensure that enterprise practices do not harm people or the planet, and at best, they create value for stakeholders [13]. The purpose of this work is to discuss the ESG conceptualization of marketing and consider the business and consumer behavioral shift to meet these requirements.

2 Methodology The study is based on the use of methods of analysis and synthesis of public data posted by Russian companies and global institutes. The reports issued by global and Russian research agencies, integrated and sustainability reports published by Russian companies are used. The analysis is based on exploring the results of public reporting, external studies, research reports on consumer behavior and company sustainability policies. The set of selected companies includes firms operating in the electric power industry, oil and gas industry, metallurgy, telecommunications, financial sector, retail. Findings take into account the global market, the markets of Russia and the European Union.

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3 Results Over the past 100 years, marketing has gone through several stages of development – from version 1.0, which is based on the product, to version 4.0, associated with the digital transformation of marketing [14]. Each stage represents concepts that reflect the target marketing orientation. Marketing 1.0 is focused on the product, its production, quality characteristics, and sales. The transition to version 2.0, for which the consumer becomes the center of activity, is significant for the development of marketing. The attention of entrepreneurs is focused on investigation of interests, tastes, preferences of consumers. The important marketing metrics include customer satisfaction, customer retention and customer loyalty. The aim of marketing strategy is to attract, satisfy and retain target consumers in a profitable way for the company. Marketing 3.0 also involves meeting consumer demands. However, values of companies with 3.0 principles are related to changing the world, its preservation, improvement, etc. Marketing 3.0 is based on the perception of the consumer as a member of society. The priorities of marketing change from a customer-centered focus to a communitycentered focus. The pursuit of increased business profitability is combined with social responsibility. Building relationships with stakeholders requires attentive listening to the community. Companies that are incapable of convincing stakeholders of their own responsibility run the risk of failure. Marketing 4.0 is about digital technologies that enhance and supplement marketing functions. Businesses in the 4.0 era are moving toward inclusiveness, providing a consistent experience for all. Technology drives customization and automation, reducing the cost of products and services and enabling access to new emerging markets. The Internet provides transparency to businesses, allowing entrepreneurs to quickly adopt expertise and create businesses and products customized to local markets. The role of the individual is getting more important, the way people interact with each other is changing, and as a result, there are communities that are becoming alternatives to market segments. For example, there is increasing business pressure from millennials, who are questioning the basic premises of corporate behavior and the economic and social principles of business. 33% of millennials choose a sustainable alternative when available [2]. Research conducted after the COVID-19 pandemic shows that consumers demonstrate an interest in sustainable initiatives, but expect them first and foremost from businesses. In turn, companies develop and implement marketing projects based on ESG principles, trying to attract the attention and money of consumers (Table1).

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Table 1. Consumer and business attitudes toward sustainability. Report

Customers

Companies

‘Balancing sustainability and Ready to pay a premium for a profitability’ by IBM Institute sustainable brand or for Business Value (IBV) [15] sustainable products (50%)

Environmental sustainability is a top priority today (39%) Have acted on a sustainability strategy (35%)

‘The Global Sustainability Study 2021’ by Simon-Kucher & Partners [2]

Sustainability is rated as an important purchase criterion (60%)

Will face significant pressure to prove their sustainability credentials

‘How companies capture the value of sustainability’ by McKinsey [3]

The customers are engaged in company’s sustainability agenda

Executives expect their companies to generate value from sustainability in the next 5 years (40%) Value-creating company’s CEO makes sustainability a priority on the strategic agenda (more than 50%)

‘Cancellation culture’ by PBN and Magram MR [16] ‘Barometer of sustainable business transformation’ by Kept [17]

Expect brands to be socially engaged (61%) Willing to recommend a brand if it addresses social issues important to customers (77%) A brand’s social activity on key issues can affect motivation to make a purchase (76%)

The ESG agenda is still relevant (48%) Plan to continue marketing projects related to environmental and social issues (100%)

Source: authors.

Business attitudes toward the implementation of sustainable development in Russia differ from the European market. Russian business is more focused on achieving ongoing corporate goals (Table 2). The analysis of public reports shows increased coverage of ESG topics. These guidelines are mentioned in almost 50% of reports of Russian companies, which belong to large businesses. There is a direct correlation between the publicity of a company and the scope of its disclosure in reporting. According to RAEX, which determines the ECG rating in Russia, the practice of informational dissemination on the issues covered is common [19]. Detailed disclosures and well-developed corporate practices in some areas coexist with poor quality disclosures or even complete neglect of other issues important to the user.

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Table 2. Business attitudes towards sustainable development in Russia and the European Union. Criterion

Russia

EU

The main advantages of sustainable development

Improving operational performance and reducing costs Meeting customer expectations or requirements Attracting, motivating and retaining employees

Meeting customer expectations or requirements Compliance with laws, regulations, and reporting requirements reporting Attracting, motivating and retaining employees

Business areas that take into account the aspects of sustainable development

Attracting and retaining highly skilled employees Overall business strategy Developing new products and services to meet demand

Overall business strategy Developing new products and services to meet demand Supply chain and procurement management

Measuring business effects in Corporate governance effect the areas of sustainable Social effect development Environmental effect

Social effect Environmental effect Corporate governance effect

Source: authors based on [18].

Enhancing economic sustainability while implementing social and environmental responsibility programs is challenging because it requires businesses to be proactive in marketing, changing both their business models and the marketplace. Therefore, we need changes in the marketing mix expressing the sustainable development policy of companies (Table 3). Table 3. Marketing mix revision. Tool

Actions

Product

Innovations in products and services (elimination of harmful ingredients, increased energy efficiency) Repackaging (biodegradable, recycled packaging) Relabeling (more sustainability-related information, labeling of environmentally friendly products)

Price

Reimbursement of product disposal costs

Place of sale

Engaging partners that help uplift their image as sustainability promoting organizations Educating partners and staff about the benefits of responsible sales

Promotion

Promoting responsible consumption, repositioning products with a focus on eco-social choices, information transparency

Source: authors.

In this way, the marketing mix is based on a new business philosophy, the acceptance of with partners, customers, and employees.

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4 Discussion Since its emergence in the last century, marketing has made significant progress in developing knowledge about how to meet consumer needs and address broader issues, including societal development. There has been a noticeable reversal of companies’ marketing policies in accordance with the principles of sustainable development. However, most of the knowledge and actions are focused on studying market forces and adapting to their impact. The promotion of consumption that overlooks socio-environmental issues is the subject of marketing criticism [6]. The predominance of the consumer-oriented marketing concept, on the one hand, and the philanthropic approach to corporate social responsibility activities, on the other hand, remain insufficient to ensure sustainable economic and social development. This raises the problem of responsible marketing, which is more of a market driver than a marketer [13]. Advanced marketing should steer needs towards sustainable offerings, reverse ineffective patterns of consumer behavior for society, and develop positive initiatives for stakeholder engagement [20]. Sustainability marketing requires new tools and strategies that aim not only to adapt businesses to external trends, but also to develop the market in terms of sustainable products and services. Identifying directions for the development of such strategies, the evaluation of stakeholders and government involvement are issues for further study.

5 Conclusion Under the influence of technological and social trends consumer behavior becomes different, and as a consequence, the priorities and conceptual provisions of marketing change, which requires the revision of business values. An analysis of consumer preferences and business priorities shows that consumers are interested in socio-environmental issues, but only a fraction of consumers are willing to change their habits and pay a premium for sustainability. Companies are making changes to their marketing programs and developing projects to include sustainable initiatives. However, even among those who declare strategies are being developed, a significant share of companies has not acted on a sustainability strategy. Working toward sustainability requires efforts to change consumer behavior, promote responsible consumption, transform the business ecosystem. Companies can effectively develop a sustainable marketing strategy by reviewing their marketing mix and engaging all stakeholders.

References 1. Kumar V, Rahman Z, Kazmi AA, Goyal P (2012) Evolution of sustainability as marketing strategy: beginning of new era. Procedia – Soc Behav Sci 37:482–489 2. Global Sustainability Study 2021. https://www.simon-kucher.com/sites/default/files/studies/ Simon-Kucher_Global_Sustainability_Study_2021.pdf. Accessed 04 Apr 2023 3. How companies capture the value of sustainability: survey findings. https://www.mckinsey. com/capabilities/sustainability/our-insights/how-companies-capture-the-value-of-sustainab ility-survey-findings. Accessed 20 Feb 2023 4. Jung YJ, Kim Y (2023) Research trends of sustainability and marketing research, 2010–2020: topic modeling analysis. Heliyon 9(3):e14208

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5. Chabowski BR, Mena JA, Gonzalez-Padron TL (2011) The structure of sustainability research in marketing, 1958–2008: a basis for future research opportunities. J Acad Mark Sci 39:55–70 6. Belz FM, Peattie K (2012) Sustainability marketing: a global perspective, 2nd edn. Wiley, Chichester 7. Lunde MB (2018) Sustainability in marketing: a systematic review unifying 20 years of theoretical and substantive contributions (1997–2016). AMS Rev 8:85–110 8. Thomas NJR (2018) Sustainability marketing. The need for a realistic whole systems approach. J Mark Manage 34(17–18):1530–1556 9. D’Souza C, Marjoribanks T, Young S, Sullivan Mort G, Nanere M, John JJ (2019) Environmental management systems: an alternative marketing strategy for sustainability. J Strateg Mark 27(5):417–434 10. Vesal M, Siahtiri V, O’Cass A (2021) Strengthening B2B brands by signalling environmental sustainability and managing customer relationships. Ind Mark Manage 92:321–331 11. Ilyas IM, Osiyevskyy O (2022) Exploring the impact of sustainable value proposition on firm performance. Eur Manag J 40(5):729–740 12. Lee JH, Wood J, Kim J (2021) Tracing the trends in sustainability and social media research using topic modeling. Sustainability 13(3):1269 13. Sheth JN, Parvatiyar A (2021) Sustainable marketing: market-driving, not market-driven. J Macromark 41(1):150–165 14. Kotler Ph, Kartajaya H, Setiawan I (2010) Marketing 3.0: from products to customers to the human spirit hardcover, 1st edn. Wiley, New Jersey 15. Balancing sustainability and profitability. https://www.ibm.com/downloads/cas/5NG R8ZW2. Accessed 04 Apr 2023 16. One in three Russians has lost confidence in brands. https://www.sostav.ru/publication/kaz hdyj-tretij-rossiyanin-poteryal-doverie-k-brendam-57628.html. Accessed 04 Apr 2023 17. Barometer of sustainable business transformation. https://assets.kept.ru/upload/pdf/2022/10/ ru-kept-and-eplus-barometr-of-sustainable-business-transformation.pdf. Accessed 21 Mar 2023 18. Skobarev, V., Pertseva, E.: Grant Thornton research: Sustainability in small and medium-sized businesses. https://urldefense.com/v3/__https://www.fbk.ru/press-center/news/fbk-grant-tho rnton-predstavila-issledovanie-po-ustoychivomu-razvitiyu-v-kompaniyakh-malogo-i-sre dneg/__;!!NLFGqXoFfo8MMQ!rtspLODhsSxd000lweNhsJJUJEGqP_A7-pGLFk62UM BFPAMyF9OOAkim2FUtiPIuSLojQs3Xmn_O6V49rlIlXDyoOXQWnO-ytffz$. Accessed 21 Mar 2023 19. RAEX Rating Review. https://raex-rr.com/esg. Accessed 04 Apr 2023 20. Little VJ, Lee CKC, Nair S (2019) Macro-demarketing: the key to unlocking unsustainable production and consumption systems? J Macromark 39(2):166–187

Financial Sovereignty in the Era of Economic Changes S. P. Bortnikov(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. This research attempts to identify the main trends in the development of institutions that ensure the financial sovereignty of the country. The issues of monetary policy, the purpose of central banks, the formation of local currency zones are considered. It is argued that the impossibility of sustainable development of the Western world has developed, the means and forms of confrontation between national economies and highly integrated entities are revealed. When countries switch to settlements in national currencies, not only the dollar monopoly is destroyed, but also the question arises about the procedure for providing settlement currencies. In Russia, they are studying the possibility of creating non-emission instruments using the material collateral principle of providing settlements by a group of dual goods. The possibility of returning the monetary function to gold is being considered. There is a high probability that monetary gold will soon regain the functions of world money, which will be accompanied by a revaluation of its value in fiat money. Russia is currently trying to diversify and modernize its economy, overcoming not only natural obstacles, but also market manipulation and internal resistance. Keywords: Central Bank Function · Local Currency Zones · Monetary Gold · National Currencies · Sanctions Aggression

1 Introduction The sovereignty of the country in modern conditions, this is the question of whether it will have its own money or not. Obviously, the Bretton Woods monetary system has exhausted itself, the world is in the process of forming local currency zones, and countries are fighting to become their leaders. The Constitution of the Russian Federation in paragraph 2 of Article 75 stipulates that the protection and ensuring the stability of the ruble is the main function of the Central Bank of the Russian Federation, which it carries out independently of other government bodies [1]. However, this process is outside the scope of national regulation. The beginning of the sanctions aggression of the collective west has chosen the financial and banking system of Russia as its main object. However, almost immediately after the West arrested Russian gold and foreign exchange reserves and other assets, the Bank of Russia banned Russian brokers from accepting instructions from foreign © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 449–457, 2023. https://doi.org/10.1007/978-3-031-38122-5_62

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clients. Their assets worth about $150 billion were also frozen. Now these assets bring income, which foreigners do not have access to. Billions of dollars are piling up in Moscow but remain out of reach of foreign owners. Share dividends, bond interest payments and everything else Western investors haven’t sold before the until February 2012 are all part of a huge amount of money trapped in sanctions. Legally, the money belongs to some of the biggest investment houses, such as JPMorgan Asset Management and Schroders Plc, but privately, most admit there is no hope of a return. The policy of the collective west actually destroyed the world political and legal systems that existed since 1944. On the one hand, the struggle of China and the United States for the European market determined many competitive processes in the field of finance from 2014 to 2022. On the other hand, at present, the financial crisis has changed the situation, including with regard to the dollar as a reserve currency. The United States is faced with the fact that extinguishing the crisis of purchasing power by the monetary issue of the dollar no longer gives any results. The dollar system has run its course. Now in Russia, a real movement towards sovereign finance is beginning. At this stage, those who hold, for various reasons, inflationary rather than investment views will still prevail quantitatively.

2 Methodology Various methods of scientific knowledge were used in the course of the study. The method of materialist dialectics was used as the main one, allowing for the production and analysis of the problem. The use of a comparative legal method has led to a systematic analysis of the phenomena studied. The formal-logical method allowed to justify the conclusions and basic provisions of the study. The analysis and comparison of statistical data revealed comparison benchmarks, the comparison of which provided the basis for the study. Energy modelling and forecasting as a basic method is due to the fact that it takes more account of the peculiarities of national institutions of management and statistical description of modelling objects.

3 Results Turning to the history of the emergence of central banks, it can be argued that their creation was in demand by the tasks facing the government by the end of its centralization and concentration in one hand, the transition from private coin minting to state monopoly and standards, paper issue, etc. The Bank of England was founded in 1694 (albeit as a private company, but to finance the king to wage war with France); The State Bank of the Russian Empire was established in 1762 by Emperor Peter III with the aim of issuing banknotes, and then in 1860; in France, the Banque Generale was created in 1716, but resumed in 1776. The American dollar in the early 20th century was backed by gold. The adjustment of the Bretton Woods system at the Jamaica Conference led to the detachment of the dollar

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from gold – an attempt to replace gold with other goods arose. First of all, copper was tried, the price of which from 1963 to 1964 was a constant and amounted to 234 lb per large ton [2]. To date, studies of copper prices on the London Metal Exchange [3] have shown that copper continues to act as a primary indicator of market fluctuations in the markets of non-ferrous and precious metals, as well as in the oil market. By 1967, the CRB commodity index was finally formed (the futures price index, created by the American company Commodity Research Bureau), which was then calculated on 26 commodity items (since 1987 – 21 commodity items, since 2005 – 19 commodity items). At the same time, Commodities (exchange goods) was tied to Treasueries (securities of the US Treasury). After this preparatory work, it became possible to declare the transformation of the dollar into a reserve currency with its detachment from gold and silver filling. Currently, a policy of mono-commodity quasi-supply of the dollar with oil and, as a derivative of oil, gas is being implemented using this mono-commodity as a currency anchor against a number of national currencies (for example, the ruble). This allows, through the manipulation of energy markets, which are quoted exclusively in dollars, to speculatively and uncontrollably influence the quotes of national currencies, causing catastrophic consequences for the world economy. You can resist the current order of things by creating a new commodity index (sustainability index), the filling of which is carried out according to the following principles: the product remains in the index, provided that its price deviations from the price of the base product do not exceed the consensus agreed boundaries [4]. The impossibility of sustainable development of the Western world has developed, and in order to maintain their hegemony and strengthen their positions, they attacked our country, conducting financial sanctions based on dominance in the financial space, waging a trade war, establishing trade barriers, provoking hostilities by creating a bridgehead and a Nazi state in the center of Europe. Attempts to maintain their leadership on the basis of the destruction of Russia, China, Eurasian integration. It is very difficult to survive without ideology, and the currently dominant liberal line in almost all spheres of the state is unable and unwilling to resist the imposed hegemony of the United States. The world can develop in different ways. For example, during the destruction of colonialism at the beginning of the 20th century, the world developed along the path of the dominance of large capital and TNC, as well as along the path of the USSR, with its nationalization and policy management of the economy. The third version of the Nazi state that defeated all of Europe, stopped by the heroism of the Soviet people. The risks of debt crises in the least developed countries (LDCs) continue to grow due to the consequences of the COVID-19 pandemic and shocks in commodity markets due to the conflict in Ukraine, according to an April report by the International Monetary Fund (IMF). According to the organization, in December last year, 28 out of 69 low-income countries were on the verge of a debt crisis, and 12 have already entered it (the fund did not name specific states). To prevent debt crises, LDCs may need an international support package comparable in scale to the Heavy Indebted Poor Countries (HIPC) initiative,

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which was launched in 1996 by the World Bank (WB) and the IMF, the authors of the report admit. In the period from 2007 to 2015, the ratio of public debt to GDP in LDCs on average did not exceed 40%, but since 2016 it has exceeded this value. In 2019–2020. The volume of public debt sharply accelerated growth amid the COVID-19 pandemic, and by the end of 2021 its average volume in low-income countries amounted to 53% of GDP. In late 1994, prior to the HIPC initiative, average LDC debt was estimated at 72% of GDP. The technological revolution begins after a sharp increase in energy prices – this is a sure sign that the established economic structure reaches the maturity phase and no longer provides economic development. Monopolists inflate prices (the first are oil companies and energy), and the result is a plunge into depression, the way out of which is through a new economic structure. This phase is characterized by a sharp increase in government spending. Currently, monstrous experiments with Covid, released by the Americans to destabilize the socio-political situation in the fight against the economy of the China in order to drive the world’s population into electronic concentration camps, all the foundations of international law have been destroyed, democratic institutions are not working, the Rockefeller Plan has been implemented in the Western world, which was published by the Rockefeller Foundation in a report entitled «Walk in formation» (LOCK STEP) [5]. In the scenario developed by the Rockefeller Foundation, all the key events of this year were clearly spelled out: – – – – –

largest pandemic; the global quarantine; stop of business and social life; breakdown of economic ties; strengthening of control over citizens by states, etc.

It is easy to guess what all these planned events should sooner or later have led to: «All countries fall into the budget deficit, and are forced to go borrow money», S.Y. Glazyev explained [3]. American banks from February 22 to March 29 dropped securities by 277 billion, recording a record loss, which should be reflected in the statements for the 1st quarter. In the sales structure, accounted for 169 billion, sold Treasuries for 67 billion and other securities for 41 billion in accordance with H8 reporting and own calculations. Instead of money being directed to investments, it is invested in securities and the stock market. But here something else is important – from May 2020 to March 2022, banks increased investments in securities by 2 trillion (from 3.8 to 5.8 trillion), and the current assessment of investments in securities is 5.2 trillion. Banks bought bonds during the period of zero rates, and now the estimated change in assets from weighted average purchase prices in the period from May 2020 to March 2022 is minus 10% (due to an increase in rates). Purchasing power is falling and in two or three years a revolutionary situation will arise when consumers will not have money, debts must be forgiven, and it will be possible to «launch» economic processes only with a new currency or new means of payment. Globally, such a process will not be managed, so local currency centers will arise. An important trend is a sharp slowdown in lending, or rather even a decline. Over the

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past 4 weeks, there has been a 0.3% decrease in total bank lending of all types – for the first time since July 2021. The three-month rate fell from a peak of 4% in mid-2022 and 2% in early 2023 to 0.7% at the end of March 2023. Although the credit impulse began to grow from July 2021 – plus 1.8 trillion loans.

4 Discussion If the US financial oligarchy creates a loan, Russia, according to the rules of the IMF, can issue money only for gold reserves and reserve currencies. We fell into the same trap of «walking in formation». It is not surprising that with this state of affairs, the Americans themselves were the first to fall into the debt trap: «Trump was forced to pour money into the social sphere», S.Y. Glazyev recalled [3]. [In the end, the US] hit a budget deficit of 30%. This was not the case even during World War II. Trump was forced to borrow money from the Foundation [6]. Following the American government, all other «seven» states, as well as those who for some reason do not know how or do not want to create their own loan, including Russia, fell into the same «trap of walking in order» that the Rockefeller Foundation invented more than 10 years ago. When moving to a new stage of technological order, the Artificial Intelligence ball will rule in the world, and people will turn into a wordless loyal herd. Disloyal faces will be obstructed and ostracized. In the next change in world economic structures, the system of managing socio-economic development is changing and the center of the world economy is shifting geographically from one place to another. Paradox, but never (in 500 years) has a country that led in the past world economic order managed to maintain its hegemony in a situation where it lost economically and in terms of the effectiveness of the management system. There is the opposite effect: countries develop in a kind of rut according to the path dependency problem law. Each country, even in its development at the stage of capitalism, has come a unique way. There is no capitalism at all, it is always unique. As well as the modern stage: China has its own socialist ideology with Chinese specifics, in India – socialist ideology, in Russia – the doctrine of socio-conservative synthesis [3]. In Europe, norms and social values are destroyed, as well as traditional, religious ones, people are deprived of their identity. This society is close to satanic forms [3]. In Russia, the Central Bank implements an archaic monetary policy, the Central Bank is guided by archaic models and postulates. States represented by national governments today have created a whole set of financial instruments to support investment activity (so far this is within the framework of fiscal restrictions): – – – –

special refinancing instruments; special credit instruments; target credit lines; special investment contracts (SPIC). The SPIC register is public in accordance with the Decree of the Government of the Russian Federation No. 133 [7], in order

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to provide public information about all concluded contracts; multilateral strategic agreements on investment protection [8]. Individual countries have already begun to form local currency structures: both in their calculations and in inter-country currencies. Argentina and Brazil have already announced the creation of a single currency. The BRICS currency is premature, we need a single settlement system. We have different problems and tasks in the economy of each country. The system of investing in the economy is dollar, but Russia was disconnected from it, China – partially, etc. We need a new investment currency. Investments in this currency should be profitable, the ruble in Russia is too expensive. China provides loans at zero%. The system of servicing a ruble loan is too expensive. Small businesses don’t have access to budget money. It is not profitable to invest the ruble in social, innovation and defense. Forbes analyst believes that in September at the annual meeting of BRICS members there will be a colossal event. Russia, together with partners, will officially announce the entry of Saudi Arabia into the BRICS. This means that the old order regarding the trade in crude oil will cease to exist. The governments of Brazil and China, as BRICS countries, have reached an agreement to abandon the dollar in mutual settlements. It is envisaged that mutual trade between the two countries will be carried out in national currencies – in a yuan-real pair. The parties agreed on a direct free currency conversion without the need to use a double exchange, in which the US dollar has traditionally participated in recent decades, which gives savings on double currency exchanges alone of at least 8% of the financial resources pledged in the transaction. In general, we are talking about the creation of an offshore clearing center, which also allows you to speed up the passage of the transaction between these large countries. After all, all settlements in US dollars pass through the Fed. The terms of cooperation with the IMF are far from simple and transparent. For example: country Y needs 20 billion for some kind of energy project. She can apply to the IMF fund with an appropriate request. Issuing a loan (if management considers the project interesting) involves not only a refund with interest, but also «additional conditions». They tend to stay out of sight. For example: we are money to you, and you are these beautiful gentlemen on the boards of several critical companies. Here’s a list. In order for decisions to be made faster in those countries that are of interest, their people are necessarily «brought up». Moreover, as inside the government in the person of advisers or heads of some ministries. So is the opposition as a counterweight. In case the former fail. From the mid-80s to 2008, Russia is like an instruction for use in comics. Everything is clear, obvious and without further ado. Names and surnames are well known to most of you [9]. Few people drew attention to one important document adopted in March of 2023 – Government Decree No. 482 [10], according to which important restrictions on the use of funds from the National Welfare Fund of Russia are lifted [11]. What kind of restrictions are these, what, in general, happens to the Fund after the theft of its funds by Western countries, and what development projects await us, as well as about the new story of heroic salvation, we will tell you in this issue after a summary of positive news.

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As of March 1, 2023, the NWF stores 11 trillion 106.4 billion rubles, or 7.4% of GDP projected for 2023. A very decent amount, however, according to the law, it cannot be invested in development projects within the country, since the liquid part of the fund did not reach the threshold of 10%. But this standard was adopted even before the start of the special military operation of Russia in February 2022 and for a long time does not correspond to today’s realities. The Government Decree adopted on Monday finally abolishes this restriction and allows us to invest in projects now. In Russia, they are studying the possibility of creating non-emission instruments using the material and collateral principle of providing settlements with a group of dual goods. To avoid hyperinflation, Russian scientists propose expanding the gold base with dual goods with commodity and monetary properties at the same time. They can be used for non-cash payments for services provided or supplied goods between the EAEU, BRICS or SCO countries. During the clearing process, the requirements and obligations are netted, allowing to significantly reduce the volume of cash payments. 40% of the world’s dual goods are in our country, and we cannot take advantage of this advantage. The innovative financial index makes it possible at any time to estimate the value of the goods in gold equivalent. Until now, there has been no such mechanism in Russia, Ryabukhin recalled, although it is in demand on the stock markets. The «commodity harness» is still an element of trade, but will soon turn into a settlement mechanism, the expert believes. In Russia, by building objective mathematical models, they revealed the same patterns [12] and were able, due to studies of the compliance of prices at large times of dual goods with the prices of monetary gold, to form a commodity harness that allows expanding the gold base. Based on this methodology and taking into account the identified assets, the authors of the method propose to issue new financial non-emission instruments that allow securitization and monetization of the gold base, which will make it possible to generate long and cheap liabilities (in the amount of several tens of trillion rubles), addressed in a two-contour national currency and financial system.

5 Conclusion Splitting the global economy into opposing blocs could reduce global GDP by between 0.3% and 2.3% on the horizon for 7–10 years – depending on how tough the split will be. At the same time, in the least developed countries (LDCs), the fall in GDP can be double-digit. This is stated in the report of the International Monetary Fund (IMF) «Fragmentation in Global Trade: Accounting for Commodities» [2]. Until 2022, gold had a close correlation with inflation-linked US Treasury bonds. The correlation value was about 99%. However, since 2022, this connection has been broken (by the way, we saw this in 2008). Of course, some linear relationships can still be traced, after all, market makers and their models rule the ball in the markets, and yet the baseline began to change. Russia, which began to abandon the dollar a few years ago, sharply accelerated this process and chose the yuan as an alternative. For our country, the yuan is now one of the main currencies in international reserves, in trade and even personal banking services. The Financial Times reports that more than 50 Russian banks now offer deposits in yuan, and the share of the yuan in Russia’s exports has increased 8 times.

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Needless to say, the volume of trading in a pair of yuan/ruble on the Moscow Exchange exceeded the volume of trading by the unconditional leader of all years – a couple of dollars/ruble. But it is too early to stop here. We see how India is actively expanding the list of countries that conduct international trade through the rupee, not the dollar. The list of countries with which India can trade in rupees and abandon the dollar already has 18 participants - Russia, Singapore, Sri Lanka, Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Seychelles, Tanzania, Uganda and Great Britain. Are these and other events preliminary signals that such a colossal event is coming? There is no doubt that the old world order regarding oil and the dollar is disappearing and a new one is forming.

References 1. The Constitution of the Russian Federation. http://www.constitution.ru/. Accessed 22 Apr 2023 2. Bolhuis MA, Chen J, Kett BR: Fragmentation in global trade: Accounting for commodities. IMF Working Paper, No. WP 2023/073. https://www.imf.org/en/Publications/WP/ Issues/2023/03/24/Fragmentation-in-Global-Trade-Accounting-for-Commodities-531327. Accessed 22 Apr 2023 3. Glazyev SY (2017) Report on the root causes of the growing chaos and measures to overcome the economic crisis. http://www.fa.ru/Documents/Glaziev_Chaos.pdf. Accessed 11 Apr 2023 4. Sidorova AV (2020) Subject structure of the offense in artificial intelligence (AI) and robotics. In: Ashmarina SI, Vochozka M, Mantulenko VV (eds) ISCDTE 2019, vol 84. LNNS. Springer, Cham, pp 541–547. https://doi.org/10.1007/978-3-030-27015-5_64 5. Scenarios for the Future of Technology and International Development. https://libert ynow.com/wp-content/uploads/2021/07/Operation-Lockstep-Rockefeller-Foundation.pdf. Accessed 22 Apr 2023 6. Bazulin YuV (2008) Origin and nature of money, 1st edn. Publishing house of St. Petersburg University, St. Petersburg 7. Decree of the Government of the Russian Federation of February 1, 2023 No. 133. http:// www.consultant.ru/document/cons_doc_LAW_439143/. Accessed 11 Apr 2023 8. Bortnikov SP, Khasaev GR (2022) Legal analysis of the institutionality of digital economies In: Khasaev G, Bolgova V, Bortnikov S, Shul’zenko Y, Medentseva E (eds) Economic and Legal Foundations of Innovative Development in the Digital Age, pp 1–15. Nova Science Publisher Inc., New York 9. Minchenkov MA, Vodyanova VV, Zapletin MP (2017) The mathematical model of calculated gold creating. Power Syst 4(5):61–70 10. Decree of the Government of the Russian Federation on March 27, 2023 No. 482 «On the specifics of the placement of funds of the Fund in 2023 national welfare and suspension of paragraph 12 of Resolution of the Government of the Russian Federation» of 19 January 2008, No 18. http://publication.pravo.gov.ru/Document/View/0001202303280007. Accessed 22 Apr 2023 11. Gel’vanovskij MI, Minchenkov MA, Vodyanova VV, Zapletin MP (2018) Risk management based on its self-similarity effect in the price system of basic goods with dual properties. In: Karavaeva IV, Kolomiets AG, Kolpakova IA (eds) Assessment of risks and threats to the economic security of Russia 2018–2020: Collection of scientific papers of the II International scientific and practical conference «Senchagov’s readings» of scientists, specialists, university

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professors, graduate students, 10–11 April, Moscow, pp 54–57. Institute of Economics of the Russian Academy of Sciences, Moscow 12. Glazyev SYu (2020) Plague 21st century. How to avoid disaster and overcome the crisis, 1st ed. Book World, Moscow

ESG Risk Assessment as a Factor of Ensuring the Regional Economic Security T. A. Korneeva(B)

, V. V. Kozhukhova , D. A. Nordin , and I. E. Yurov

Samara State University of Economics, Samara, Russia [email protected]

Abstract. In modern economic and political conditions, a special role in the development of the national economy belongs to individual regions. It is worth noting the high scientific interest in ensuring the regional competitiveness and economic security. However, the problems of ensuring economic security at the meso-level still require additional consideration. The problem of the non-financial risks impact on regional security and competitiveness, which have become increasingly significant in the last few years, is insufficiently studied. In this regard, the issues of developing a model for assessing the level of regional economic security, which would make it possible to monitor the dynamic change in the level of competitiveness and development of the region, to make forecasts, and compare regions with each other, are becoming particularly relevant. As part of the study, a system of indicators, which allow for a quantitative assessment of regional non-financial risks (ESG-risks), has been developed. The information basis for calculating the criteria of the proposed model consists of open data published by federal and regional statistical bodies and regional ministries and departments. Based on the proposed model, the study assessed the dynamics of non-financial risks of the Samara region for 2019–2021. Keywords: Environmental Risks · Governance Risks · Regional Economic Security · Risk Assessment · Social Risks

1 Introduction In the multidimensional and destabilized economic environment due to the influence of political, economic, environmental, social and other factors, a special role in the development of the national economy belongs to individual regions. Ensuring sustainable economic development and strengthening the competitiveness of regions is becoming the main task of national policy. Regular monitoring of economic security indicators is the basis for ensuring regional sustainable economic development. It is worth noting that the current research of Russian and foreign researchers mainly reveals the issues of ensuring economic security at the macroeconomic level, while the problems of ensuring economic security at the meso-level require additional consideration. The composition and threshold values of economic security indicators at the meso-level are disclosed have been studied by many researchers. However, despite the © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 458–463, 2023. https://doi.org/10.1007/978-3-031-38122-5_63

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high research activity, the statement that the work in this area has led to the formation of a unified theoretical and practical approach to identifying threats to regional economic security and conducting a quantitative assessment of its level is erroneous. The problem of the non-financial risks impact on regional security and competitiveness, which have become increasingly significant in the last few years, is insufficiently studied. There is still a need to develop a model for assessing the level of regional economic security, which would make it possible to monitor the dynamic change in the level of competitiveness and development of the region, build forecasts, and compare regions with each other. Thus, the exceptional importance of assessing and monitoring the level of regional economic security (RES) in the ensuring the competitiveness of individual territories context determines the relevance of the chosen research topic.

2 Methodology Due to the increased importance of non-financial threats, it seems necessary to develop a comprehensive assessment of environmental (E), social (S) and governance risk (G) indicators of the RES. As part of the study, a system of quantitative and qualitative indicators of regional ESG-risks is proposed. The information basis for calculating of the proposed model consists of open data published by federal and regional statistical bodies and regional ministries and departments (Fig. 1). Since the developed system combines indicators that are evaluated in different units of measurement, in order to bring the parameters to a single meter, it is necessary to introduce a point evaluation system. For each test, the region is assigned points from 0 to 2. The score «0» characterizes an increased level of environmental risk according to the test under consideration, and «2» – a depressed level of risk.

3 Results Based on the developed criteria system, an assessment of ESG risks parameters of the Samara region was carried out within the study. The results of the E-risk assessment demonstrate a reduction in risk by a number of indicators (Table 1). Table 1. Assessment of the environmental risk of the Samara region in 2019–2021. Year

n Ehe

n Enhe

n Ehev

n Eng

n Eww

n Ecw

n Emsw

n Epcw

n Em

n Eep

E

2019

0

1

0

0

1

1

1

1

1

0

0.6

2020

0

2

2

0

2

2

1

2

2

2

1.5

2021

2

0

2

1

1

0

1

2

2

2

1.3

Source: authors based on [1–6]

In 2021, there is a significant reduction in harmful emissions from stationary sources (63%). Carbon monoxide compounds (29% – 2019, 33% – 2021) and volatile organic

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Fig. 1. The system of ESG risk assessment indicators for regional economic security (Source: authors).

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compounds (27% in 2019, 30% in 2021) have the largest share in the structure of the produced harmful compounds entering the atmospheric air. The predominance of these types of polutants is due to with the industry specifics of the enterprises of the Samara region, most of which are engaged in the gas, oil and petroleum products extraction, transportation and processing. The strengthening of federal and regional supervision over compliance with the requirements of the current environmental legislation is also noted. However, there is a decrease in the number of captured and neutralized emissions in the total emissions. In 2019, the shape of captured harmful substances was 62.8%, while in 2021 the value of this indicator was only 48.7%. This fact indicates the need to check by regional enterprises the serviceability of existing and installation of additional treatment facilities and filtration systems to reduce harmful emissions. There is also a reduction in harmful emissions from mobile sources and transport. However, the share of transport using alternative fuels is not high (7% in 2021). At the same time, there are no comparative data for previous period, which makes it difficult to assess the dynamics. The dynamics of the integral indicator E indicates an improvement in the environmental situation in the region and a reduction in the overall environmental risk. However, low values of this indicator in comparison with the national average (2.6 in 2021) indicate an increased environmental risk in the studied region. The results of the assessment of the S-risk in the Samara region demonstrate the preservation of the stability of the social situation of the region (Table 2). The region is characterized by a high level of employment, there is an annual increase in the number of jobs created. The annual increase in the funds of the regional budget allocated to the implementation of social policy and support of education also indicates a reduction in the social risk of the study area. Table 2. Assessment of the social risk of the Samara region in 2019–2021. Year

n Spm

n Sesp

n Sees

n Sepss

n Smor

n Ssc

n Spp

n Scj

n Schpj

Sen

S

2019

1

1

2

0

0

0

1

1

1

1

0.73

2020

1

2

2

0

0

1

1

2

1

1

1.00

2021

1

2

2

0

0

1

1

2

1

1

1.09

Source: authors based on [1–5, 7]

The negative dynamics of mortality rates in the region is mostly due to the worsening of the epidemiological situation within the study period. The level of excess mortality in the Samara region during the pandemic period was + 30.1%. It is important to note that according to preliminary estimates, in 2022 the number of deaths in the Samara region tends to decrease. This may indicate a stabilization of the socio-epidemiological situation and a likely reduction in social risk.

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The dynamics of the number of serious and especially serious crimes committed indicates an increased social risk according to this criterion and makes it necessary to take additional measures to prevent criminal activity. The dynamics of the calculated values of S indicates social stability in the region, the preservation of its investment attractiveness and strengthening of competitive positions. The results of the assessment of the G-risk of the RES indicate that the level of risk in the Samara region remains at the same level (Table 3). Table 3. Assessment of the governance risk of the Samara region in 2019–2021. Year

n Gsez

n Gia

n Ggt

n Grb

n Gm

G

2019

2

2

2

0

0

0.8

2020

2

2

2

0

0

1.2

2021

2

2

2

0

0

1.2

Source: authors based on [1–5, 7]

Speaking about the transparency of government structures, it is important to note the presence of structured open official websites of ministries and departments of the region. However, the available amount of data is insufficient to assess a number of indicators, including the effectiveness of anti-corruption policy. According to the rating of investment attractiveness, the investment attractiveness of the Samara region is increasing. The region’s score has increased, the Samara region is characterized as a region with high investment attractiveness. However, the presence of a steady trend towards an n and G n , indicate an increased level of G-risk in terms of these criteria. increase in Grb m The assessment of the integral index G of the region refers a decreasing threats to RES in this block.

4 Discussion The findings correlate with the dynamics of the Samara region’s position in the ratings of regional social and environmental responsibility. According to the Environmental Rating of Russian regions, formed by the Green Patrol, the Samara region takes the 34th position, rising in the list by 14 lines in comparison with 2019 [8]. In the annual regional ESG rating compiled by the RAEX rating agency, the region has also improved its position in the E-risks and takes 42nd place (compared to 49th place in 2019). According to the level of social risk, the region takes the 29th position and can be characterized as socially stable. The assessment of the dynamics of the region’s position in the sub-rating by the G-risk also indicates a decrease in these risks on the region territory [9]. According to the Social-Economic Rating of the RIA Rating, Samara region ranks 11th, rising by 2 positions in comparison with 2019 [10]. The results of the study of the integral dynamics of ESG risks in the Samara region suggest that there is a tendency to reduce the negative impact of ESG risks and strengthen RES. Comparing the dynamics of the calculated ESG index with the position of the

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Samara region in the investment attractiveness rating of the Russian Regions and in the ESG rating of RAEX confirms the reliability of the research results [9]. Thus, the assessment and monitoring of the dynamics of social, environmental and management risks allows for timely control over the state of regional economic security, creating a basis for maintaining the competitiveness and investment attractiveness of the region.

5 Conclusion The modern economic conditions actualize the issues of assessing the impact of various non-financial risks of RES and national economic security (NES). Ignoring the ESG principles can lead to a complete rejection of investing in the economy of the country and its individual regions, which will lead to an increase in financial losses due to an increase in the tax burden and penalties, an increase in the negative impact on the environment, etc. An assessment and analysis of the ESG risks dynamics was carried out on the example of the Samara region, based on the criteria system, proposed in the study. The main trends in the dynamics of the E-, S- and G-risks level are revealed.

References 1. Federal State Statistics Service. https://rosstat.gov.ru/. Accessed 04 Mar 2023 2. Federal State Statistics Service for the Samara Region. https://samarastat.gks.ru/. Accessed 04 Mar 2023 3. Government of the Samara Region. https://www.samregion.ru/. Accessed 04 Mar 2023 4. Ministry of Financial Management of the Samara Region. https://minfin-samara.ru/materialsfor-basic-parameters/. Accessed 04 Mar 2023 5. Minister of Economic Development, Investments and Trade of the Samara Region. https:// economy.samregion.ru/. Accessed 04 Mar 2023 6. Ministry of Forestry, Environmental Protection and Nature Management of the Samara Region. https://priroda.samregion.ru/category/ohrana_okr_sredbi/doklad_ob_eko_situatsii/. Accessed 04 Mar 2023 7. Ministry of Education and Science of the Samara Region. https://educat.samregion.ru. Accessed 04 Mar 2023 8. Russian public organization «The Green Patrol». National Ecological Rating of Regions. https://greenpatrol.ru/ru/stranica-dlya-obshchego-reytinga/ekologicheskiy-reytingsubektov-rf?tid=467. Accessed 04 Mar 2023 9. LLC RAEX. Annual ESG- rating of Russian regions. https://raex-rr.com/pro/ESG/ESG_reg ions/. Accessed 04 Mar 2023 10. RIA Rating. Ranking of Russian regions by socioeconomic status. https://riarating.ru/infogr afika/. Accessed 04 Mar 2023

Assessment of the Company’s Information Potential to Ensure Economic Its Security T. M. Tarasova(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. Now Russia is faced with quite specific problems of import substitution not only of goods, but also of technologies. The role of economic security has sharply increased as a multidiscipline, which now represents not only a way of protection, but also a tool on the way to the development of the country’s economy, which consists of a set of interacting economic entities–enterprises and organizations. The information component of the economic security of an enterprise in this context acquires a more practical meaning–to ensure the information security of an organization. In view of the foregoing and considering the avalanche-like increase in the number of cyber-attacks on economic entities, information security comes to the fore among the elements of economic security. This explains the relevance of the study. The contribution provides an analysis of the organization’s opportunities for further development within the information technology industry. The analysis was carried out in four blocks of information potential: qualification, organizational, innovative and resource. All four components are present in MTS PJSC and have a high level of development. The final assessment of the information potential allowed us to conclude that the company has a predominant position in the information technology industry. Keywords: Economic Security · Information Potential of Enterprise · Information Technology · Information Security · Risks

1 Introduction The basis of an integrated approach to the assessment of any economic phenomenon is its analysis without separation from the environment in which it takes place. In other words, an attempt to analyze an economic phenomenon without considering external factors can lead to incorrect conclusions. Information potential is an integral part of the production potential of an enterprise, therefore, to build a correct assessment model, it is necessary to determine the place of a separate element (in this case, information potential) in the overall system, as well as the size of the system and the distribution of shares for each element. In practice, to solve this problem, a general assessment of the organizational structure of the organization, the scale of production through indicators of the financial and economic activities of the economic entity and indicators of the influence of the external environment is used. These data will be enough to move on to a deeper analysis of the information potential of the organization under study. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 464–470, 2023. https://doi.org/10.1007/978-3-031-38122-5_64

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This study is based on the development of issues of solving the problems of economic security of enterprises in modern realities. Of scientific interest were the works of the following authors M.A. Koroteeva [1], I.V. Manahova [2], I.A. Uglova [3]. In addition, a large amount of information about the current situation in the telecommunications equipment market and existing problems in the activities of cellular operators was taken from open sources [4–12].

2 Methodology The concept of the information potential of the organization at the time of this study has not yet received a clear and unambiguous interpretation. There are several approaches to this concept. The first definition correlates information potential with an information resource that allows an enterprise to solve daily tasks in a timely manner. The disadvantage of this definition is that it does not consider the innovative aspect of the enterprise but represents the information potential as a zero sum that circulates between enterprises, increasing the capabilities of one enterprise and reducing the potential of another. It cannot be said that this definition is fundamentally wrong, but its limitations cut off a whole layer of opportunities that an enterprise has, but this definition is not considered. The second definition is more complex, and implies under the information potential all the possibilities, known and hidden, that an organization has in relation not only to its information system, but also to digital development. The practical application of this definition includes the division of the information potential into 4 independent blocks: qualification, organizational, innovative and resource. As part of the system method, we will use these four gradations to assess the information potential of one of the largest Russian telecommunication company–MTS PJSC.

3 Assessment of the Current Situation The management structure of MTS PJSC has both linear subordination between the general meeting of shareholders, the board of directors, the management board of the company, and the president, as well as functional dependencies in the form of separating the audit commission, internal audit, compliance department, committees reporting to the board of directors and the management board into separate divisions companies, respectively. As part of the study, attention should be paid only to those segments in which the information system of MTS PJSC is directly managed and its security is ensured. Unlike other large companies that prefer the centralized type of such systems, the decision of MTS PJSC on such a construction is quite justified, as it deepens the specialization of a particular segment, thereby increasing the efficiency of this system. Moreover, the functional subordination is also different, which creates a certain hierarchy in these segments: the compliance department is fully subordinate to the Board of directors, and the safety committee and the risk committee–to the president and the management board of the company. This is since the compliance department mainly processes claims to eliminate violations affecting the entire company as a whole (such may be violations of the law regarding the handling of personal data under Federal Law

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№ 152-FZ «On Personal Data» [13]). The remaining divisions of the security block of MTS PJSC deal mainly with local threats, including those arising in the branches and subsidiaries of MTS PJSC, so decisions on them can be made by the management board of MTS PJSC headed by the president of the company. In June 2021, the main owner of PJSC AFK Sistema, which in turn is the beneficial owner of PJSC MTS (more than 47% in the share of equity), Vladimir Evtushenkov, announced to the RBC publication about the large-scale transformation of the Company from a telecom industry company into IT –company. The gradual development of new business processes was not without a corresponding change in the organizational structure of MTS PJSC. Separate segments of the internal control which are responsible for new products of the company appeared in it. Thus, the areas of Big Data of the MTS Group CC (work with Big Data technologies), M2M/IoT of the MTS Group CC (Internet of things and online stores), digitalization of business processes and changes in the ERP systems of the MTS Group were singled out. Each of these areas has its own subdivision and is represented by committees that are subordinate to the Management Board of MTS PJSC. The organization uses a large leverage to generate excess profits. However, in contrast to the manufacturing sector, such behavior in the market is specific to the telecommunications services industry. Among the largest organizations in its industry, MTS PJSC has good debt burden indicators–1.96 against 2.5 on average in the industry. In general, the financial condition of the organization can be characterized as positive. The decrease in financial results is mainly due to the development of new business processes in the IT industry and organizational restructuring. Indicators of the influence of the external environment are divided into several areas– at the macro and micro levels. The macroeconomic aspect of the external environment, first, is manifested in the political situation and the level of economic development of the country in which the economic entity is located. By shifting the focus to the information component of MTS PJSC, we can talk about the main threat–the economic impact of foreign countries through financial and technological pressure against the backdrop of political struggle. As already mentioned in the first chapter of this study, the technological level of development of the Russian Federation does not currently allow to completely replace technological solutions that have left the market. This provision also applies to MTS PJSC–in the event of an escalation of the conflict, it is possible to completely restrict the export of components and equipment necessary for the operation of the basic telecommunications business. Now such a threat is in an uncertain state, since the U.S. Department of the Treasury adopted license № 25 on April 7, 2022 [14], allowing the export of technology and software from the United States and other countries fulfilling obligations under the imposed sanctions. The solution to this problem, the management of MTS PJSC, sees the sale of the telecommunications segment of the business for the maintenance of base stations to an independent owner, thereby transferring the maintenance and service of the stations to outsourcing. Despite these statements, in 2019 MTS PJSC made large capital expenditures to modify existing 4G networks to 5G-ready, ready to master the new communication standard. The question of the sale remains open, it is quite possible that the management of the organization under study will try to keep both the telecom and IT areas.

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4 Analysis of Development Opportunities Qualification block - a set of means and methods of training personnel to improve their qualifications for the systematic development of the organization’s information potential. This definition is private, as it is true to a greater extent for organizations involved in the production of information products. MTS PJSC occupies an intermediate position here. The main income now is income from the telecom segment, however, soon, the company’s management plans to receive income only from the ecosystem of products. In any case, already now the company needs a human resource necessary to promote new business processes, therefore MTS PJSC has a whole system of staff development–the MTS corporate university department, represented by a separate economic entity MTS Corporate University LLC and licensed for the implementation of educational activities. This subdivision includes the following areas: teaching at faculties; development programs; work with universities. The Corporate University of MTS PJSC is an online platform for training employees for their horizontal and vertical rotation, as well as general courses that allow employees to improve their skills to save their jobs. Education is carried out based on faculties, in the framework of assessing the information potential, we are interested in filling the faculty «IT». It is represented by two areas of study based on the MTS.Teta online platform–«Big Data Specialist» and «Golang Developer». As part of the study, we will be interested in the compliance of the program of these courses of activity of MTS PJSC to assess the qualification support of the information potential. Big Data Specialist–MTS PJSC is actively developing big data handling technologies and machine learning, allowing it to follow its CLV 2.0 strategy. Its essence is simple–increasing the life span of customer attention to the company’s products through increasing the concentration of everyday information services under one brand. As part of this strategy, MTS PJSC requires specialists in the development and debugging of information systems for working with big data. An analysis of the possibilities of MTS PJSC to form its own human resources received a positive result–the company has all available means for self-training of the necessary employees. However, the assessment of the qualification block of information potential is impossible without an analysis of the provision of existing lines of business of MTS PJSC with IT specialists. To do this, it is necessary to calculate the coefficient of satisfaction of the need for employees in the IT sector, which reflects the ratio of employed employees in the IT sector to the total number of required employees in this field (formula 1): Kc-IT = Qpr /(Qpr + Qvak )

(1)

where, Kc-IT –the value of the satisfaction rate in employees, Qpr –the number of hired IT employees for the analyzed period; Qvak –the number of vacancies in the field of IT for the analyzed period. The value of this indicator for 2020 was 0.543. This suggests that the need for IT employees in all divisions of MTS PJSC is satisfied by 54.3%. There is a positive trend in this indicator of 26% points, for 2019 this indicator was 0.283, or 28.3%. The reason for this increase was the expansion of the activities of MTS PJSC during the study period towards the IT industry.

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The conclusion on the assessment of the qualification block can be made as follows: it corresponds to the company’s strategy, contributes to an increase in the information potential of MTS PJSC. The organizational unit of MTS PJSC. In this block, we will consider the organizational structure of individual business processes of MTS PJSC, which are responsible for the transformation of an organization into an IT company, since the most important thing at the stage of creating new directions is the correct construction and debugging of the management block. The digital services management system of MTS PJSC, which are components of the new ecosystem, is based on a combination of vertical subordination and functional horizontal lines that provide them. The control system is divided into three independent blocks–the main and two serving. Let us analyze the composition of the main block of the management system of MTS PJSC, namely the business vertical. The main idea of the creators of this system was to use the already established infrastructure of the telecommunications business in the field of relations with other business entities and with customers, for its subsequent transformation to the needs of digital business processes. Based on the organizational block, the following conclusions can be drawn: the management system is represented by a network structure that has a domestic market with the allocation of each segment to a separate organization. From the point of view of assessing the information potential, this system is the most preferable for organizations in the innovation sector, which is consistent with the strategy of the studied economic entity and increasing its information potential. The innovation block assesses whether the organization could supply new technological solutions of its own production to maintain and improve its position in the market. In the organization under study, there are several tools for obtaining innovation: research and development center of MTS PJSC, center for infrastructure solutions and IoT/M2M Services, MTS startup hub. The Research and Development Center of MTS PJSC is a center jointly with the manufacturer of electronic devices Ericsson based on the infrastructure of MTS PJSC in the Innopolis technopark, the main task of which is to develop innovative products in the field of 5G networks. The center for infrastructure solutions and IoT/M2M services is a subdivision within the digital solutions department of MTS PJSC, which develops innovative products in the field of the Internet of Things and systems for transmitting information between machines. The most successful is the project of the IoT platform, launched into commercial production in 2018, whose main task was to help entrepreneurs develop according to the concept of «smart enterprise» with the connection of electronic devices (sensors, automated systems) to an existing organization management platform. Startup Center MTS.Startup Hub–development and support throughout the life cycle of startups in the field of digital and telecommunications technologies, with their subsequent introduction into the ecosystem of MTS PJSC. Of the latest promising projects, KonnektU was singled out, which is revising the usual concept of customer interaction systems (CRM) towards greater customer focus and omnichannel.

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Conclusions on the innovation block can be drawn as follows: MTS PJSC has the necessary innovation cluster that contributes to the development of its information potential. The resource block of the information potential characterizes the technical support of the information processes of the organization under study, as well as its ability to replenish this support due to its moral and physical deterioration. For companies in the telecommunications industry, this factor is decisive, as it directly affects the cost of services provided. To determine the degree of depreciation, depreciation coefficients and coefficients for the renewal of fixed assets of MTS PJSC were calculated for the period from 2018 to 2020 (Table 1). Table 1. Indicators of the state of fixed assets of MTS PJSC for 2018–2020. Name of indicator

Index value, % 2018

Depreciation rate of fixed assets The coefficient of renewal of fixed assets

Change in indicator

2019

2020

23.76

23.49

22.6

276.80

2.01

7.66

−1.15 −269.14

Source: author

The wear rate for the study period decreased by 1.15% points and amounted to 22.6% for 2020. This indicates the renewal of fixed assets of MTS PJSC for the period under study. Over the entire period, the values of the wear coefficient did not exceed 24% percent, which indicates a good physical condition of the technical support of MTS PJSC. The coefficient of renewal of fixed assets decreased over the period under study by 269.14% points, however, such a negative trend was not observed for the entire period. The circumstance that led to such a sharp decrease was the consolidation of MTS PJSC with MTS Bank PJSC after the buyout of a controlling stake in AFK Sistema in 2018. Therefore, we can talk about positive dynamics in the 2019–2020 segment of 5.65% points, which indicates a moderate pace of updating the technical support of MTS PJSC. For the purchase of new components and equipment, MTS PJSC has developed its own platform «MTS. Procurement», which contains information on tenders placed by the Company itself and its subsidiaries. The conclusions on the assessment of the resource block of the information potential of MTS PJSC are as follows: the organization under study has the technical support of information processes, the level of moral and physical depreciation of which does not exceed 24%, as well as its own platform for the procurement of such equipment, which in the future helps to maintain the information potential of the organization under study organizations.

5 Conclusions Analysis of information potential is an integral part of the information security analysis of an organization, which allows you to understand the capabilities of this organization in digital development, as well as the degree of attractiveness of the company for

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intruders. MTS PJSC shows high positions in all four elements of information potential, which indicates its predominant position in the field of digital technologies. However, to maintain its market share, any IT company should have a powerful information security system.

References 1. Koroteeva MA (2018) The impact of the digital economy on the financial security. Sci Notes Young Researchers 3:56–61 2. Manahova IV (2018) Digital future and global economic security. Econ Secur Qual 1(30):6–11 3. Uglova, IA (2018) Digital economy: Information and economic security In: Burmistrova, AA (ed.) Problems of the Development of the National Economy at the Present Stage: Materials of the international scientific-practical conference, Tambov, 2018, pp 428–436 Tambov State University named after G.R. Derzhavin, Tambov 4. Cost of a Data Breach Report 2020. https://www.capita.com/sites/g/files/nginej291/files/ 2020-08/Ponemon-Global-Cost-of-Data-Breach-Study-2020.pdf. Accessed 23 Feb 2023 5. Ivanyuk, A., Wuest, C.: Acronis Cyberthreats Report 2020. https://dl.acronis.com/u/rc/WP_ Acronis_Cyber_Threats_Report_2020_EN-US_201201.pdf. Accessed 23 Feb 2023 6. Habr: Enterprise security: Key threats and means of protection. https://habr.com/ru/post/529 178/. Accessed 23 Feb 2023 7. Annual report of MTS PJSC for 2020. https://ar2020.mts.ru/ru. Accessed 20 Feb 2023 8. Policy «Processing of personal data» in MTS PJSC. https://moskva.mts.ru/about/investorami-akcioneram/korporativnoe-upravlenie/dokumenti-pao-mts. Accessed 15 Feb 2023 9. Conflict of Interest Management Policy of MTS PJSC. https://moskva.mts.ru/upload/con tents/537/Conflict_of_Interest_Management_Policy_29072021.pdf. Accessed 15 Feb 2023 10. Russian Telecommunications Market: The impact of the pandemic and development prospects. Analytical research. JSC AK Business profile. https://delprof.ru/press-center/ open-analytics/telekommunikatsionnyy-rynok-rossii-vliyanie-pandemii-i-perspektivy-razvit iya/?ysclid=l2vis0hco6. Accessed 15 Feb 2023 11. Terms of reference for tender № 57430868 dated 12/24/21 MTS PJSC. Rostendr. http://ros tender.info/. Accessed 15 Feb 2023 12. School of data analysts. MTS.Teta. https://www.teta.mts.ru/. Accessed Feb 2023 13. Federal Law № 152-FZ «On Personal Data». https://www.consultant.ru/document/cons_doc_ LAW_61801/. Accessed 22 Apr 2023 14. Russia-related Designations; Issuance of Russia-related General Licenses and Frequently Asked Question; Revocation of Russia-related General License. https://ofac.treasury.gov/rec ent-actions/20230412. Accessed 22 Apr 2023

The Concept of Independent Development of the Organization: Prospects and Implementation Difficulties E. P. Troshina(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. In this paper, the data of the analysis of the prospects for the development of the management system in a modern organization are carried out. In some cases, a huge impact on the processes of managing an organization is influenced by processes occurring in general recognition and external changes. The authors have identified the main tendentious forms of identifying widespread development under the ban on the introduction of information technology in the management and production processes of the company. The paper presents the results of assessing the observed and prospective stress management at a given level of development of society. During the study, work was carried out to analyze the theoretical and practical basis for managing public organizations in a constantly changing environment and presented the results of the work done in the form of conclusions on the current situation in the economic sphere from the standpoint of the main elements of the system for the development of modern features in practice management. Analyzing the indicators of sustainable development of the organization the main characteristics of sustainable development were identified. In addition, the prospects for the development of a management system for a sharp increase in the level of digitalization of the economy and informatization of production processes were discovered. Keywords: Business Management System · Development · Management · Management System · Risk Management

1 Introduction In a big world, it is important to consider the development of systems for managing innovative problems. To achieve the macroeconomic goals of sustainable development, it is important to achieve intermediate goals and constantly monitor the activities of the system [1]. In the current conditions of coverage of large industrial enterprises in coverage and improvement of the living standards of the country’s population, special attention is paid to priority areas of development related to the coverage and focus on the development of a wide range of enterprises and minimizing the risks of negative impact on the environment [2]. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 471–477, 2023. https://doi.org/10.1007/978-3-031-38122-5_65

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The analyzed topic is relevant and in demand in modern conditions, since a huge variety of. The management system of an organization largely depends on a variety of external and internal factors of functioning. Under the influence of the uncertainty of the environment, barriers arise on the way to the effective development of enterprises, which impede the development of the principles of sustainable development in the company [3].

2 Methodology The methodological and methodological basis of the study was a systematic and comparative analysis of practical and theoretical approaches to organizations close to sustainable development in the context of accelerated processes of digitalization and informatization, which are normal in society. During the study, the authors analyzed the practical and theoretical base of management in a complex technological and innovative enterprise. To identify special prospects for the development of sustainable development in the practice of managing public enterprises, the main directions for the implementation of the phenomena of these observations at the present time were identified, and an assessment was made of monitoring the development of events according to the current general state. To develop a study on improving economic activity in the field of modern resource management, a comparative analysis of domestic and foreign practical implementation was carried out.

3 Results As a result of the work done by the authors on the study of the system, results were obtained. For the cases of the emergence of the main categories of concepts of enterprise development in the big world, there were high indicators of the stability of organizations adopted on the territory of the Russian Federation (Table 1). Based on the data of the study, we can present the following positive and negative aspects of the formation of sustainability goals for economic entities on the territory of the Russian Federation (Table 2). Analyzing the above, we can say that the quality is built. In an organization, the management system directly affects the efficiency of the organization’s functioning and the implementation of the basic principles of the concept of sustainable development in its processes.

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Table 1. Organizational sustainability indicators common in the Russian Federation. №

Sign of grouping

Stability indicators

1

Economic group of producers

- volumes of consumption of manufactured products; - nreadth of product range; - involvement of the local population to work in the organization; - number of counterparties from other regions, countries

2

Ecological group of suppliers

- expenses of non-renewable resources for the production cycle; - environmental pollution

3

Socio-institutional indicators

- number of employees of the organization; - social guarantees for employees of the enterprise; - well-being of the production process

Source: author based on [4, 5]. Table 2. Positive and negative aspects of the formation of sustainability goals for economic entities on the territory of the Russian Federation. Positive aspects

Negative aspects

- The desire to preserve the entire ecosystem by building the management of the organization based on the principles of sustainable development

- The need for many financial investments to achieve the goals of sustainable development of the organization

- Establishing interaction with stakeholders and interested parties in the implementation of the principles of sustainable development of the organization

- Non-acceptance of possible changes and transformations in the management system of the organization on the part of the population and employees of the company

- Implementation of a strategy to minimize the use of non-renewable resources helps to increase the environmental friendliness of production and processes occurring in the organization

- The strong influence of the uncertainty of the environment on managerial decision-making, related, among other things, to the implementation of the concept of sustainable development in practice, which minimizes the results of this process

Source: author based on [6, 7].

Revealing the features of the formation of sustainability in the development of entrepreneurial activity in the modern realities of the functioning of the economic system, it is worth highlighting the barriers that impede the effective implementation of the basic concepts of the concept of sustainable development of an organization (Table 3). The stability of the company is a complex factor and is formed under the influence of many factors. In many ways, the features of the formation of conditions for sustainable development are formed under the influence of the characteristics of the industry in which the enterprise operates.

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Table 3. Barriers to the implementation of the developed strategy for sustainable development of the enterprise in modern conditions. № Barrier

Characteristic

1

Lack of a clear definition of the strategy and its goals on the part of the organization’s personnel Misunderstanding of the purpose and intermediate goals of implementing the chosen strategy

Leads to a low level of motivation of employees of companies in the organization’s sustainable development strategy

2

Excessive savings on the implementation of In most cases, when choosing priority areas precise sides are aimed at increasing the for the development of managers, those efficiency of the company areas are identified that have a significant impact on the growth of financial performance indicators, which in turn limits the direction of the strategy implementation in the resource direction

3

Lack of monitoring of the implementation of the planned control of the strategy

In many cases, it may be due to the lack of clearly formulated goals for the implementation of the development strategy of an international organization. In addition, for the implementation of intermediate control, it is necessary to reallocate resources within the organization and thereby weaken the main processes of the company or spend additional resources

4

Overloaded management of higher and medium tasks of operational processes and, due to the lack of the possibility of prompt intervention in the process of implementing the developed strategy

Management resources are redistributed in such a way that maximum attention is paid to the composition of the intensive process of the enterprise’s activity in violation of the implementation of the strategy of the confidential development organization

5

Lack of knowledge and competencies in the To a large extent, the barriers of a sharp field of management of the organization in increase in the problem of sustainable the field of sustainable development development in recent years have been noted, even though specialists adhere to this direction

6

Influence of external conditions on the processes taking place in the organization

Source: author based on [8].

Under the influence of external processes and emerging conditions for the functioning of the enterprise, obstacles are created on the way to the implementation of the sustainable development strategy due to the emergence of priority tasks. In addition, there is a change in the given conditions under which this strategy was developed

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Analyzing the prospects and obstacles to the development of enterprise sustainability, it is worth assessing the influence of external factors on changing the strategic direction of enterprise development in the current conditions on the territory of the Russian Federation. Particular attention should be paid to the reorientation of the country’s economy to the domestic production of most goods. Due to the sharply increased needs of society in domestic products, production processes in organizations are being restructured, in turn, the attention paid to modeling the current enterprise development strategy is paid at an insufficient level. Based on the above facts and the practice of implementing the sustainable development strategy of the organization at the enterprises of the Russian Federation, the following trends can be identified that are clearly visible at the present time: 1. Increased influence on the production capacity of enterprises and reorientation of the strategy to strengthen and expand the production line of domestic companies. 2. Continued growth in the implementation of environmental quality systems, which are based on the principles of reducing the impact of production processes on the environment. 3. Growth in the implementation of business social responsibility programs. 4. Considering the interests of stakeholders in the development and implementation of the enterprise development strategy in practice. If we talk about the level of development of the concept of sustainable development on the territory of the Russian Federation, then we can trace the fact that it is currently at an early stage and requires great efforts to maintain the effectiveness of implementation and distribution in enterprises of various industries. Thus, we can identify several promising areas that should be given special attention for the further effective development of the economy of the regions and the country as a whole: 1. Social responsibility of business. 2. Environmental friendliness. In this direction, priority is given to the recycling of waste and the reduction of emissions into the environment, the use of closed cycles for the operation of production lines. 3. Priority to consider the interests of third parties. In Russia, enterprises, despite various external difficulties, have many opportunities to implement a sustainable development strategy in the economy. The implementation of this strategy can bring many benefits for the country, such as cost reduction, improving the reputation of enterprises in the market, and increasing the level of competitiveness.

4 Discussion The theme of the formation of the concept of sustainable development is quite widespread in domestic and foreign literature. This topic is multifaceted and analyzed in different aspects and realities. S.A. Kasperovich and M.V. Rogova [8] analyze this topic from the standpoint of the implementation and integration of the principles of sustainable development into the practice of modern quality management on an innovative basis.

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An industrial enterprise whose processes correspond to the current level of economic and information development of the industrial sector in the country. In their work, the authors present a study of the enterprise management system and the possibility of integrating the concept of sustainable development into its processes. As a result of the study, recommendations, and guidelines for organizing processes in such a way as to build an effective short-term and long-term enterprise management strategy using the basic principles of the concept of sustainable economic development are presented. Another of the domestic authors who have studied this area is V.S. Lapshin [9]. The researcher has done work to systematize the requirements imposed by modern society on the emerging model of sustainable development, in addition, he presents the results of an analysis of practical approaches used in modern company management practice. As a result of the research work, the scientist presents recommendations for the development of an integrated management model for a modern company that would correspond to the level of development of society and the economic system of the country. There are many views and points of view on this issue, but there is no single approach that would allow the most holistic formation of an understanding of the concept of sustainable development by an organization from the standpoint of the management of a modern company.

5 Conclusion In conclusion, it is worth highlighting the main aspects of the development of the management system of modern organizations to achieve the principles of sustainable development, based on the analysis of theoretical and practical practices of applying this concept at enterprises in the context of digitalization of the economy: 1. The costs of searching and processing information hinder the authorization of the organization’s activities, reduce the effectiveness of interaction both within the organization and with stakeholders and potential partners. 2. Building an effective communication dialogue between the internal and external environment of the organization increases the level of management. The quality of management is today a kind of brand of the organization, which is reflected in various qualitative, quantitative, and integral indicators of the organization. Such indicators are interesting for potential investors, which means that the quality of corporate governance can be one of the factors of investment attractiveness of a business entity or business structure. 3. The quality of corporate governance directly affects the stability of the organization, the trust of both employees and not only partners, but also competitors The sustainable development of an organization ceases to be a purely economic category. This definition came to economics and management from biology, which indicates that the sustainable development of the economic system is also characterized by systemic and institutional character. Since the quality of management also affects sustainable development, the last category can be replaced by environmental friendliness. In this regard, we conclude that for the effective sustainable development of an organization, it must comply with the principles of environmental management: social

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orientation, high level of training specialists, compliance with the law, initiative, mobility of employees and a well-organized system of information flow between all interested subjects of the organization’s activities.

References 1. Charikov VS, Levashova YV (2022) Innovative approach to improving tax control methods in the context of informatization. In: Ashmarina SI, Mantulenko VV (eds) Proceedings of the International Conference Engineering Innovations and Sustainable Development. Lecture Notes in Civil Engineering, vol 210. Springer, Cham, pp 343–348. https://doi.org/10.1007/ 978-3-030-90843-0_39 2. Troshina EP, Dobrova VV, Kozyreva MP (2022) Digital educational platforms: advantages and disadvantages. In: Ashmarina SI, Mantulenko VV (eds) ISCDTE 2021, vol 304. LNNS. Springer, Cham, pp 183–188. https://doi.org/10.1007/978-3-030-83175-2_25 3. Levashova Y, Troshina EP, Shepelev AV (2019) Features of the development of the organization management system in the conditions of informatization. Manage Econ Syst Electron Sci J 6(124):19 4. Bobylev SN (2017) Sustainable development: a paradigm for the future. World Econ Int Relat 61(3):107–113 5. Chebotareva I, Udychak FN, Tkharkaho MM, Markov PN (2023) Sustainable development and constitutional priorities of modern Russia. Law Power 1:18–22 6. Chirkunova EK, Shekhova NV (2021) Innovative approaches to the implementation of sustainable development goals in the modern Russian economy. Bull Samara Univ Econ Manage 12(2):101–110 7. Unites Nations: Take action for the sustainable development goals. https://www.un.org/sustai nabledevelopment/en/sustainable-development-goals/. Accessed 04 Apr 2023 8. Kasperovich SA, Rogova MV (2015) Implementation of the concept of sustainable development of the organization in the quality management system. Proc BSTU Ser 5: Econ Manage 7:246–249 9. Lapshin VS (2016) Formation of a sustainable development management system based on an integrative approach. Models Syst Netw Econ Technol Nat Soc 2(18):36–46

Management of Regional Sustainable Development on the Example of the Samara Region M. V. Kurganova(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. Within the framework of the study, the problem of assessing the possibility of developing a regional system is considered, effective mechanisms for managing the region in the long term are found. The degree of influence of all factors, external and internal, on the socio-economic system of the region was formulated and determined, and a link was established between increasing the level of stability of the regional system and the use of all growth factors on the example of the Samara region. The topic covered in the study is related to the development of regional systems and the search for effective mechanisms for managing the region in the long term. The paper defines the relationship between the stability of the regional system, the level of development of the socio-economic environment and the use of all growth factors. These issues are important for the development of the regional economy and improving the lives of people in the regions. Keywords: Forecast · GRP · Rating · Regional Development Strategy · Social and Economic System · Stability

1 Introduction Any regional system is part of the overall national economy and can be viewed from the point of view of a subsystem. Moving from the general to the particular, it is possible to formulate the concept of regional management with the expectation of the totality of all processes of controlled development of socio-economic conditions identified at the regional level in order to achieve the set development indicators and, as a result, to ensure the stability of the region and increase competitiveness [1]. The development strategy of any region in modern political and economic conditions is based on the orderly activities of all involved economic entities under the leadership of regional authorities from the position of achieving the planned indicators based on effective adaptation to changing conditions. The management of the region is individual in nature, as it depends on geographical, economic, technological, industrial, innovative, cultural, social and political characteristics [2]. Strategic management of the region, the key goal of which is to improve the welfare of the population in the long term, the allocation of priority areas of socio-economic development has been and remains the foundation for decision-making at all levels of government. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 478–483, 2023. https://doi.org/10.1007/978-3-031-38122-5_66

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2 Methodology The study is based on a comprehensive assessment of the regional development strategy that affects the achievement of the established indicators, a quantitative assessment of such an impact, and an analysis of the sufficiency of available resources to achieve the intended goals. The study examined the regulatory framework that has developed at the federal and regional levels, the conjuncture, documents and information contained in official sources of information on the Internet portals of executive authorities. In the course of the study, methods of analysis and forecasting, the method of expert assessments, modern information technologies were used. In the course of the work, the results of reviews and studies were studied: – the rating of the socio-economic situation of the regions at the end of 2022 (RIA Rating Agency); – SMART regions rating materials for 2021 (AIRR – Association of Innovative Regions of Russia); – the rating of Russian regions in terms of economic development in 2022 (analytical service of the Online publication «Real Time»); – rating of Innovative Development of the Subjects of the Russian Federation (HSE Institute for Strategic Studies and Knowledge Economics).

3 Results The development strategy of the Russian Federation is defined for the period up to 2025. It describes the concept of economic development in connection with the increasing socio-economic role of agglomerations. In accordance with the document, a single goal was established, which boils down to ensuring sustainable and balanced spatial development and reducing interregional differences. The strategy defines prospective economic specializations of subjects that influence the preparation of an overall strategic plan and the definition of goals at the regional level. Thus, the promising specializations of the Samara region are mining, manufacturing, agriculture, information and communication activities, scientific activities, transportation and storage [3]. The main tool for implementing the strategy is the program-target method of managing the regional economy [4, 5]. Let’s consider two main parameters: the conjuncture of the global energy market (CWEM) and the quality of the institutional environment (QiE) for the social and economic development of the region. Five main development scenarios were identified (Table 1). Probabilistic scenarios of socio-economic development of the Samara region in the long term are the target scenario (priority), as well as the basic and transformational. To implement the strategy, it is planned to attract investments in the amount of 9.018 billion rubles, including: 1.610 billion rubles – the initial stage of the development strategy, 2016–2020; 2.764 billion rubles – the main stage, 2021–2025; 4.644 billion rubles – the final stage, 2026–2030. Distribution of investments: 5,538 billion rubles (61.4%) - from own funds; 3,480 (38.6%) billion rubles – external sources. To assess the sufficiency of own investment funds, consider the change in GRP for the period 2016–2022 (Table 2).

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M. V. Kurganova Table 1. The script plans of socio-economic development of the Samara region.

CWEM

The script Τhe struggle for survival

QiE

CWEM

Τhe Τransformation

QiE

Development indicators -lack of investment; - maintaining the sanctions regime; - extremely low energy prices; - the economy is in a state of crisis; - the increasing influence of the state on the economy; - there is no development of production infrastructure; - preservation of potential and search for new growth points. Expected growth rates up to 2030: 100.3% - low energy prices; - development of the institutional environment; - development of non-primary industries; - gradual transition from the trend of economic decline to recovery with minimal growth rates; - support of manufacturing industries; - reduction of administrative barriers; - maintaining the sanctions regime; -moderate growth in agriculture, food industry, petrochemicals, automotive industry, information technology. Expected growth rates up to 2030: 101.3%

CWEM

Basic

QiE

- moderate economic growth; - the core of the economy - raw materials industries; - renewal of enterprises in oil refining and petrochemistry; - development of production infrastructure; - renovation, creation of industrial parks; - attracting financing; - moderate growth in the automotive industry, oil production, oil refining, and the agro-food complex. Expected growth rates up to 2030: 102.6%

CWEM

Τarget

QiE

CWEM

Innovation Leader

QiE

Source: author based on [5].

- high energy prices; - reduction of capital outflow; - efficient use of resources; - increasing the role of innovation; - active socio-economic policy; - creation of new production sites and industrial parks; - the growth of industry and the social sphere. Expected growth rates up to 2030: 104.2% - active economic growth; - improvement of the institutional environment; - lifting of sanctions; - increasing the role of innovation; - increasing the share of high-tech industries with high processing depth; - development of innovative infrastructure; - attracting investments, developing innovations. Expected growth rates up to 2030: 105.1%

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Table 2. Changes in the gross regional product in dynamics 2016

2017

2018

2019

2020

2021

2022*

GRP, billion rubles

1 364,8 1 449,0 1 625,6 1 689,6 1 625,5 2 122,5 2 052,5

Physical volume index GRP, %

97,8

GRP per capita, thousand 425,9 rubles

100,8

100,2

101,4

94,1

105,3

96,7

453,0

509,9

531,1

513,3

675,3

653,0

* forecast values Source: author based on [6].

The average index of the physical volume of the gross regional product of the Samara region for the period 2016–2022 amounted to 99.47%, the total value reached 11,929.5 billion rubles. If we take into account that the total budget investment resource is approximately 15% of the total revenues of the consolidated budget [7], the amount of own investments in fixed assets may amount to 1,789.4 billion rubles. The indicators of the region’s economic development indicate the sufficiency of its own investment funds for the full completion of the first (preparatory) stage of the strategy implementation and the transition to the beginning of the second stage. The main sectors of the economy include such industries as manufacturing (20.83% of the total GRP of the country), mining (17.84%), real estate transactions (10.71%), transport and storage (6.58%), construction (4.89%), agriculture (4.38%), professional and scientific activities (3.97%), provision of electricity, gas and steam (2.98%), information and communication activities (2.06%), public administration, security and social security (4.18%), education (2.61%), health and social services (3.48%) – provision of 85% GRP – demonstrated steady growth [6]. These areas are included in the main list of promising industries of the developing region, which determine the strategy of spatial development of the entire Russian Federation [8]. The study noted a tendentious increase in the share of high-tech and knowledgeintensive industries in the gross regional product, which, according to the Federal State Statistics Service for the Samara region, respectively amounted to: 22.8% (2016), 23.1% (2017), 24% (2018), 23.3% (2019), 24.9% (2020), 25.2% (2021), 25.2% (2022) [6]. In 2022, there has been a trend towards a decrease in GRP. By the end of this year, the volume index may decrease and reach 96.7% compared to the previous year. The main reason for the reduction in GRP in 2022, economic sanctions, the departure of foreign companies, the compression of consumer demand due to a surge in inflation and a decrease in real incomes of the population, as well as the rupture of logistics ties, the slowdown in wholesale trade and related industries - transportation and storage. According to the assessment of the region’s investment potential and investment risk, the Samara Region belongs to the group of regions with average investment potential and minimal investment risk. Samara Region has entered the group of regions with a high level of creditworthiness and financial stability.

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4 Discussion According to a study of various regions of Russia on economic growth by the end of 2022, prepared by the analytical service of the online publication «Real Time», the Samara region ranked 12th among 76 regions included in the analysis [9]. Similar conclusions are found in the preliminary materials of the study of the socio-economic situation of the regions of Russia, prepared by the RIA rating agency (9th place among 85 subjects represented) [10], the research was conducted using SMART methodology, the Association of Innovative Regions of Russia (8th place in the rating, 105.8% of the average score) [11]. According to the results of a study of the innovative development of subjects conducted by the Institute for Strategic Studies and the Economics of Knowledge of the Higher School of Economics, the Samara Region ranked 14th in the consolidated innovation index [12]. Moreover, according to the socio-economic conditions of innovation activity, the region is on the 6th place of the rating, the development indicators of the Samara region exceed the national average due to the high proportion of people employed in high-tech industries, the high educational potential of the population, as well as the high proportion of active users of digital technologies among the adult population. The study noted the quality of innovation policy, the regulatory framework of innovation policy and organizational support of innovation policy, a high number of federal development institutions supporting innovation projects.

5 Conclusion In general, the Samara region is provided with a sufficient amount of investment and financial resources for the investment projects proposed for implementation. At the same time, there are risks associated with restrictions in attracting both extra-budgetary and budgetary resources necessary for the implementation of the strategy. The probability of such risks increases many times due to the increasing competition of the regions of Russia and a decrease in the inflow of investment funds due to the unfavorable situation at the international level. The continuation of the sanctions regime against Russia, geopolitical instability, restriction of access of Russian companies to the global technology market may lead to tough conditions for attracting loans and general uncertainty of investors in the long term. As a result, it was concluded that the development of the Samara region is taking place according to a transformational scenario, which is not a priority. To successfully manage a long-term development strategy from a position of sustainable growth and reaching target scenarios, it is necessary to ensure the maximum involvement of all available sources [13]. The strengths of the regional economy are the high diversification of the economy and the sufficiency of its own investment funds, the development of promising specializations and high risk tolerance of such industries, a high level of competitiveness and financial stability, an advantageous geographical location and the availability of minerals. At this stage of the strategy implementation, it is necessary to focus on the development of new segments of the economy, the development of the transport and logistics cluster and the use of the development effects of the Samara Togliatti regions. These tasks need to be solved through the reconstruction

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of production sites in Russian cities, the development of programs to increase labor productivity in the industrial and agricultural complex, the implementation of infrastructure projects and the development of logistics services, the development of engineering and the introduction of new technologies in the agro-industrial complex.

References 1. Aslanova SH, Topsahalova FM (2015) Strategic management of socio-economic development at the regional level. Basic research. Econ Sci 2(11):2389–2393 2. Novoselov AS, Faleev AV (2021) Comparative analysis of socio-economic development of cities with millions. J SIBFU Humanit 12:1829–1839 3. Decree of the Government of the Russian Federation of February 13, 2019 No. 207-r On Approval of the Spatial Development Strategy of the Russian Federation for the period up to 2025. https://docs.cntd.ru/document/552378463. Accessed 07 Apr 2023 4. Decree of the Government of the Samara Region dated July 12, 2017 No. 441 On approval of the Strategy for the socio-economic development of the Samara Region for the period up to 2030. https://docs.cntd.ru/document/450278243. Accessed 07 Apr 2023 5. Decree of the Government of the Samara Region dated December 30, 2015 No. 913 On approval of the procedure for developing, adjusting, monitoring and controlling the implementation of the strategy for socio-economic development of the Samara Region. https:// docs.cntd.ru/document/434605427. Accessed 07 Apr 2023 6. Federal State Statistics Service for the Samara Region: Gross regional product. https://63.ros stat.gov.ru/grp. Accessed 07 Apr 2023 7. Skotarenko OV (2013) Forecasting GRP in regions based on econometric models. Int Res J 8–3(15):64–68 8. Lola IS, Andreev KD (2022) Risk tolerance of organizations in the real sector of the economy and the service sector (results of 2022). The Research University of Higher School of Economics, Moscow 9. Real Time: The rating of Russian regions in terms of economic development in 2022. https://realnoevremya.ru/articles/271911-reyting-regionov-rossii-po-ekonomichesk ogo-razvitiyu-v-2022-godu. Accessed 07 Apr 2023 10. RIA Rating Agency: The rating of the socio-economic situation of the regions at the end of 2022. https://riarating.ru/regions/20221226/630235161.html. Accessed 07 Apr 2023 11. Association of Innovative Regions of Russia: SMART regions rating materials for 2022. https://i-regions.org/reiting/reyting-regionov-smart. Accessed 07 Apr 2023 12. HSE Institute for Strategic Studies and Knowledge Economics: Rating of innovative development of the subjects of the Russian Federation. https://www.hse.ru/primarydata/rir2021. Accessed 05 Apr 2023 13. Antonyuk VS, Kremer DV, Kornienko EL (2018) Economic potential of accelerated development of municipalities: theoretical and methodological aspects. Innov Invest 12:318–322

Improving Management of Financial and Economic Sustainability in the Organization A. V. Zastupov(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. This work considers some aspects of management of economic sustainability in the organization’s activities. The author studies factors influencing the economic efficiency of the production organization. On the basis of sectoral features, the most acceptable factors and measures are determined in the context of the activities of organizations. The main areas of improving the quality of management in relation to the organization’s assets include measures to improve their use. The conclusion is made that one of the directions of increasing the economic stability of the construction organization is the quality management of fixed assets. This aspect allows you to achieve an increase in the volume of production work, a decrease in the level of costs and an improvement in the quality of the work performed. The problems of formation and management of financial and economic stability of enterprises have been studied. The mechanism for managing the organization’s fixed assets as a tool for improving the efficiency of managing the financial and economic stability has been proposed. The main results on the mentioned problems consideration and issues of managing the financial and economic stability of enterprises are presented in the contribution. Conclusions and recommendations on the issues of improving the efficiency of the economic stability management of business entities are presented here. Keywords: Analysis · Economic Sustainability · Management · Organization · Performance

1 Introduction The need for a comprehensive analysis and development of theoretical aspects and practical approaches in matters of improving the efficiency of the financial and economic stability management in the organization’s activities determines the relevance of this study. Problems devoted to the analysis of the management of financial and economic stability in organizations were considered in a number of works by domestic and foreign researchers [1–7]. Nevertheless, there is still insufficient knowledge of some aspects related to the analysis and assessment of the financial and economic stability management in organization. That requires further research. This contribution presents theoretical, methodological and practical aspects on this issue.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 484–491, 2023. https://doi.org/10.1007/978-3-031-38122-5_67

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The feasibility of developing a research topic is justified by the need to more effectively solve the problems of implementing tools to improve the efficiency of the financial and economic sustainability of enterprises. The scientific novelty of the study consists of the following aspects: 1. The main organizational and economic provisions for the formation and management of financial and economic stability of enterprises are formulated. 2. The mechanism for managing the organization’s fixed assets is proposed as a tool for improving the efficiency of managing the financial and economic stability. In accordance with this, the following research objectives were determined: – consider factors of formation of financial and economic stability of enterprises; – study management aspects of financial and economic stability of enterprises; – formulate a mechanism and directions for improving the management efficiency of economic stability of organizations.

2 Methodology Methods of analysis, systematic approach, logical and graphic research methods, methods of meaningful economic interpretation of the studied processes from the economic practice of enterprises were applied in this study. Enterprises and organizations of various sectors of the economy of the Samara region, in particular the construction company Spetsstroy Management LLC in Samara, have compiled an experimental research base. The use of the above methods for research purposes made it possible to determine possibilities of the sustainable development of organizations through the mechanisms of effective management of financial and economic sustainability.

3 Results The process of managing the financial and economic sustainability of the organization is represented by the implementation of a sequence of steps. The information required to perform the analysis on the selected scorecard at the second stage is collected first. Measures to improve the efficiency of the organization based on the results of the analysis are developed further [1]. The market economy has made a number of changes to the approaches for assessing the economic efficiency, developing and implementing measures for its improvement: – profitability of production directly depends on the quality and timeliness of decisionmaking of the top management, which increases the management level in economic responsibility for the decisions made [3]; – increasing responsibility for decisions made, which contributes to an increase in the number of risks and is the basis for the development of an insurance system, the use of advisory firms and independent expertise;

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– the value of decision-making speed increases in dynamically changing market conditions [2]. The development of measures to improve financial and economic sustainability is based on strengthening the identified weakened aspects of activities. The main factors improving the operational efficiency include: – application of developments of the scientific and technological progress, increasing the technical level of the production potential, the implementation of the innovation policy; – structural adjustment of economic activities, development of science-intensive, hightech industries; – improvement of the organization of production and labor process, specialization and cooperation, diversification and combination of the production process; – development of a system of socio-psychological stimulation and the activation of the human factor, including the strengthening of personal development, etc. [8]. The scale of production, forms of control, etc. should be taken into account in practice in the use of the obtained results of the analysis of the overall sustainability of the organization’s activities. The economic sustainability directly depends on the development and implementation of innovative processes in the context of market relations, which will make it possible to produce competitive products, attract external financing and generate large profits [4]. Let us consider the problems of the questions posed on the example of the construction organization Spetsstroy Management LLC (Samara). The main activities of Spetsstroy Management LLC are industrial construction; metal structures for construction of buildings; construction, repair of external utilities; welding works; metalworking. Priority development areas of Spetsstroy Management LLC include: – expansion of construction services for the consumer market with high quality requirements; – expansion of the client base in Samara and the Samara region. Analysis of the financial state of an organization makes enables to determine such indicators as liquidity, financial and economic stability of the enterprise, which are the necessary criteria for assessing financial risks [9]. The relationship between the enterprise’s financial sustainability and risks is directly proportional. The possibility of a complex of financial risks, one of which is the risk of bankruptcy, arises when the financial condition of the enterprise deteriorates. The analysis of the company’s activities showed that the actual values of all liquidity indicators of the enterprise correspond to the norm. Therefore, the enterprise Spetsstroy Management LLC has been solvent over the past years. In general, the analysis of relative indicators indicates the financial stability of the enterprise, the good structure of capital sources. Such an enterprise has the potential to expand production with the attraction of borrowed financing. At the same time, the analysis of the dynamics and structure of the financial results of Spetsstroy Management LLC for 2019–2021 showed the following. Almost all financial and economic indicators tend to decline over the study period. Therefore, the activities

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of Spetsstroy Management LLC are not quite effective. As a result of the analysis, it was revealed that short-term receivables decreased. The share of receivables in the asset structure amounted to 73.89%. These results indicate that the enterprise cannot use free funds and potential losses of financial benefits. Therefore, it becomes necessary to effectively manage the receivables. This fact will provide an opportunity to mitigate associated financial risks. The main criterion for the effectiveness of the receivable management policy is an increase in profitability for the main activities of the enterprise. This is achieved either due to an increase in sales volumes (which occurs during the credit liberalization) or due to an acceleration in the turnover of receivables [6]. The most important tool for managing receivables is the development of the company’s credit policy. Two main issues are resolved in the process of forming the principles of credit policy in relation to buyers of products: – in what forms to sell products on credit; – what type of the credit policy should be chosen by the company for each of the forms of sale of products on credit [5]. In Spetsstroy Management LLC, it is necessary to transfer doubtful and overdue receivables to the form of highly liquid assets and use such an effective tool as factoring, providing a deferred payment. This should be done to implement the credit policy and optimize the amount of receivables. The task of optimizing the objects of financial analysis is the most important in Spetsstroy Management LLC. A financial strategy that optimizes financial results for various scenarios has been developed for this purpose. The financial strategy contains a number of planned measures to reduce financial risks (Table 1). Table 1. Measures aimed at optimizing the financial results of the considered company. Name of measures

Quantification of optimization, thousand rubles Before the event Expected

Pessimistic Optimistic

75102

74350,52

76581,04

71376,49

Reduction of financial risks through 1075685 external neutralization mechanism – insurance

1034505

1104895

100305

Improve the management of receivables

547562,52 805630

Determining the Optimal Scope of Supply

794925

407360

Source: author.

Table 1 shows that an optimistic assessment of financial results has the best effect. The cost reduction measure was due to a more rational and rhythmic volume of supplies. Thus, there is an increase in profit and an increase in the profitability level. Improving the efficiency of receivables through factoring affects the reduction of receivables and

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payables. Calculations show that the financial indicators of Spetsstroy Management LLC have improved after the relevant measures. The considered factors affecting financial and economic stability show that the most significant among them are development and implementation of results of the scientific and technological progress, modernization of the production process and technology, improvement of labor systems, etc. Other factors are dependent on the main ones. The implementation of these areas is a stimulating factor for the growth of both the economic and integral efficiency of the organization. Important specific factors for the production organizations are the possibility of completion of work on time, diversification of activities and non-uniformity of the ratio of the volume of work performed to the amount of profit received during this period [7]. The organization’s economic sustainability management process includes the development and implementation of short- and medium-term plans, as well as the development and adherence to long-term prospects [10]. The search for reserves to improve the efficiency of the use of all fixed assets available in the organization is vital in the market economy. The active part of fixed assets is most important for production organizations. The performance of production work at enterprises depends on the sufficient equipment in the technological and professional sphere to maintain the necessary level of competitiveness and economic efficiency. The implementation of the process of managing the company’s fixed assets is achieved through the solution of tasks to reduce equipment downtime, reduce accidents, streamline their accounting, reduce the cost of maintaining fixed assets, etc. The used fixed assets in production, their technical condition largely characterize the technical level of production organizations. Effective management of fixed assets is required by enterprises for their recovery and successful operation. Management is conscious and purposeful actions on economic objects to achieve the planned results carried out with a third-party entity [11]. In a broad sense, management is expressed as a complex socio-economic process. This process directly and indirectly affects the managed object to move from the current state to the planned state with the achievement of the set results. The algorithm for managing the company’s fixed assets provides four stages (Fig. 1). Analysis of the use of fixed assets of the organization is carried out in several areas: analysis of availability, structure; analysis of efficiency of use; analysis of efficiency of equipment maintenance and operation costs; analysis of investment efficiency. The first stage provides for an analysis of the status and efficiency of the use of fixed assets of the organization (Fig. 2). Increasing the economic sustainability of the organization’s activities is possible through the management of fixed assets. The measures to improve the use of fixed assets of the enterprise, presented below, should be attributed to the main areas of improving the quality of their management: – – – – –

preventive and capital repairs; improvement of the quality of construction materials used; training of workers and maintenance personnel; increasing the level of mechanization and automation; acquisition of high-quality construction machines and mechanisms;

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ASSET MANAGEMENT

Optimization of the scope and composition of fixed assets

Analysis of the condition and efficiency of the use of fixed assets 1

2

Optimization of depreciation policy

3

Optimizing the structure of funding sources 4

Fig. 1. Algorithm for management of the company’s fixed assets (Source: author).

– application of innovative technologies; – increasing the level of concentration, specialization and combination of the construction production process; – timely updating of the active part of fixed assets to achieve efficiency of their use. Therefore, quality management of fixed assets is one of the areas for improving the economic sustainability of the organization. This makes it possible to achieve an increase in the volume of production (construction and installation) work, reduce the cost level and improve the quality of work. It should be noted that the asset management is a basis for improving the efficiency of the organization. As a result, the implementation of the asset management process allows you to increase the level of technical equipment and reduce the cost level by reducing the cost of equipment downtime, repair, etc.

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FIXED ASSET USE ANALYSIS TASKS

Study of technical condition.

Determining the impact of the use of fixed assets on the volume of goods produced and other economic indicators of the organization.

Finding out the efficiency of equipment use over time and by power.

Determination of the provision of the organization fixed assets and their level usage by generalizing and private indicators, establishing the reasons for their change.

Identification of stock return growth reserves, increase in production and sales, as well as profit due to improved use of fixed assets.

Fig. 2. Analysis of the use of the company’s fixed assets to improve economic sustainability (Source: author).

4 Discussion The current problems and issues of managing the economic stability of enterprises are covered in this study. The application of theoretical and methodological provisions and practical recommendations of the study will make it possible to find correct and effective solutions in improving the management of the financial and economic stability of the organization. The results of the study will be aimed at more effectively solving practical problems in this area. The scientific results obtained during the study fundamentally complement the existing approach to the issues of improving the efficiency of enterprises and their financial and economic sustainability, as well as to the adoption of effective measures to regulate these aspects. The practical significance of the study is that the main results can be used by government agencies and business in order to economically develop production and economic activities and increase the efficiency of the financial and economic stability of organizations.

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5 Conclusion The main results on solving the mentioned problems and analysis of issues on managing the financial and economic stability of enterprises are presented in this work. Conclusions based on the conducted analysis and recommendations on the improvement of the efficiency of managing the economic stability of business entities are presented here. The set goals were achieved as a result of the study. The problems of formation and management of the financial and economic stability of enterprises have been studied. The mechanism for managing the organization’s fixed assets as a tool for improving the efficiency of managing the financial and economic stability has been proposed.

References 1. Alshehhi A, Nobanee H, Khare N (2018) The impact of sustainability practices on corporate financial performance: literature trends and future research potential. Sustainability 10(2):494–519 2. Camilleri MA (2017) Corporate sustainability and responsibility: creating value for business, society and the environment. Asian J Sustain Soc Responsib 2(1):59–74. https://doi.org/10. 1186/s41180-017-0016-5 3. Ekpo N, Etukafia N, Udofot P (2017) Finance manager and the finance function in business sustainability. Int J Bus Market Manag 2(1):31–38 4. Ghezzi A, Cavallo A (2020) Agile business model innovation in digital entrepreneurship: lean startup approaches. J Bus Res 110:519–537 5. Kalyar M, Shoukat A, Shafique I (2020) Enhancing firms environmental performance and financial performance through green supply chain management practices and institutional pressures. Sustain Account Manag Policy J 11(2):451–476 6. Ozanne L, Phipps M, Weaver T, Carrington M (2016) Managing the tensions at the intersection of the triple bottom line: a paradox theory approach to sustainability management. J Public Policy Mark 35:249–261 7. Selden P, Fletcher D (2018) The entrepreneurial journey as an emergent hierarchical system of artifact-creating processes. J Bus Ventur 30(6):865–866 8. Chernyakov M, Tereshchenkova S, Akberov K, Kharlamova I, Kharlamova Y (2021) Development of the theory of financial stability in the theory of risks. Annali d’Italia 19(2):3–8 9. Khudyakova T, Shmidt A, Shmidt S (2019) Implementation of controlling technologies as a method to increase sustainability of the enterprise activities. Entrepreneurship Sustain Issues 7(2):1185–1196 10. Phillips F, Linstone H (2016) Key ideas from a 25-year collaboration at technological forecasting & social change. Technol Forecast Soc Chang 105:158–166 11. Zastupov AV (2019) Investment development of enterprises of industrial clusters. In: Ashmarina S, Vochozka M (eds) Sustainable growth and development of economic systems. CE. Springer, Cham, pp 349–358. https://doi.org/10.1007/978-3-030-11754-2_25

Approaches to the Analysis of the Socially Responsible Behavior of the Company O. S. Aksinina(B) Samara State University of Economics, Samara, Russia [email protected]

Abstract. The social responsibility of business is seen as the most important tool for achieving the key goal of Russia’s long-term socio-economic development, which is the transition to a new model of sustainable, balanced growth. The contribution reveals a modern aspect of understanding the responsibility and defines the essential characteristics based on the opinions of scientists dealing with this issues. The author considers the existing indicators (indices) of social responsibility of companies, as well as the main approaches to the formation of consolidated social responsibility ratings, which may include companies merged by industry or region. The research purpose of this work is to determine the possibility of applying a methodology for assessing the social responsibility of companies based on the use of a number of indicators for the company level, as well as the potential possibility of combining data into a social responsibility rating by industry or regional characteristics. Keywords: Business Reputation · Indicators of Social Responsibility · Social Responsibility · Socially Responsible Behavior · Social Responsibility Rating

1 Introduction The deglobalization trends that have affected relations between countries, expressed in the political and economic confrontation of individual countries and blocs, have recently become much aggravated. At the same time, the business and scientific circles of the United States, China, Russia and European countries continue to state their mutual vulnerability, as well as their mutual interest in overcoming the economic downturn and transition to sustainable development [1]. Mutual interest can be expressed in global economic growth based on the sustainable growth of individual countries, the development of production clusters. That can be expressed, for instance, in maintaining a favorable ecological environment: reducing emissions, not using destructive weapons. Drivers of socially responsible behavior, and social changes can be both political and economic blocs, countries, public organizations, and companies, including, for example, transnational corporations, whose socially responsible activities may affect several regions (countries) or industries. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 492–502, 2023. https://doi.org/10.1007/978-3-031-38122-5_68

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2 Methodology The aim of this work is to determine the possibility of applying a methodology for assessing the social responsibility of companies based on the use of a number of indicators for the company level, as well as the potential possibility of combining data into a social responsibility rating by industry or regional characteristics. The research objectives are: to consider the existing indicators (indices) of social responsibility of companies, as well as the main approaches to the formation of consolidated social responsibility ratings, which may include companies grouped according to industry or regional characteristics. The author applied methods of analysis, synthesis, generalization.

3 Literature Review The concept of social responsibility is often interpreted by different researchers ambiguously. Some scientists globally define it as an element of socially responsible behavior [2]. In other sources it is considered already in the context of companies, for example, as their responsible behavior towards external stakeholders [3] or as a tool to support and stimulate employees [4]. There is also a widespread opinion about social responsibility as an element of creating a positive image of the company [5, 6] and the ability to subsequently derive financial or non-financial benefits from it. Thus, it is possible to single out the essential characteristics of the concept of social responsibility presented in the scientific literature: part of the global socially responsible policy, a set of measures taken by companies to protect employees and stimulate them, the commitment of companies to fulfill all obligations to external stakeholders, a set of measures to create a positive image of the company, with the possibility of further positive impact on the financial condition. It is believed that the modern concept of business social responsibility took shape in 1992 at the World Economic Forum in Rio de Janeiro, where several transnational corporations, united in the World Business Council for Sustainable Development, proposed a self-regulation program. The company’s social responsibility programs contain a set of measures for reputation management or give them a more significant character by developing independent projects. In some cases, the realization of social responsibility programs is accompanied by the pressure of public criticism from various kinds of public organizations, as it was the case with Shell and Nike. In the Russian legal field, the social responsibility of companies was approved as a tool for implementing goals of the sustainable socio-economic balanced development in 1996, in the Concept of Transition of the Russian Federation to Sustainable Development [7]. In the future, the values of socially responsible behavior were repeatedly proclaimed in the concepts of the socio-economic development of Russia. Among the key areas of which were the solution of socio-economic problems that ensure sustainable development, the preservation of a favorable environment, biological diversity and natural resources, the efficiency improvement of the use of natural resources and the reduction of the energy intensity of the economy. Some surveys show, almost 60% of Russian business leaders do not want to follow the principle of social responsibility, almost 50% do not want to participate in the formation

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of a positive public opinion about the business community. Thus, three main limitations in the development of the social responsibility of commercial organizations in Russia can be identified: 1) the imperfection of the legislative and regulatory framework that regulates the opportunities for business participation in federal and regional social programs, which determines the priority areas for the charitable activities of commercial organizations; 2) lack of independent public expertise and evaluation of the results of social and cultural business programs; 3) the absence of a system of moral and economic incentives for socially responsible companies (for example, providing such organizations with additional advantages in conducting tenders, distributing orders, informing the population about social and charitable projects, about business co-investors of sociocultural programs).

4 Results In order to assess the level of social responsibility of companies and their degree of influence on social changes, certain indicators of social responsibility are used. Given the obvious relationship between the level of companies and macroeconomic entities: industry – region – state, it can be assumed that the data that can be obtained for a number of both homogeneous and heterogeneous companies can later be brought together on the basis of a single methodological base of estimates. We believe that an analysis of the socio-economic responsibility of business to the state, the business community and civil society will make it possible to identify the positive and negative consequences of the activities of commercial organizations and assess their impact on the national economy and improve the quality of life of the Russian society. From our point of view, the analysis of the socio-economic responsibility of the company is a broad research direction, which includes an analysis of the social responsibility of the enterprise: to consumers as a manufacturer of goods, works, services; to shareholders (owners) as an investment object; before partners and competitors as a participant in economic relations; to the staff as an employer; for environmental protection and rational use of natural resources as a subject of natural resource management; to the society as a participant in social relations with society as a whole and with individual social groups, as a subject of social development of a region, a country, the world in general. Sociological research allows us to determine the main parameters of a socially responsible company: it is a good taxpayer; it fulfills the requirements of international, Russian, regional legislation; it is a manufacturer of quality products, the executor of corporate programs aimed at improving the professionalism of employees, protecting and strengthening the health of personnel, moral incentives for employees; it performs charitable and sponsorship projects; it is an active participant in the process of forming a positive public attitude towards the business community. The key tasks of analyzing the socio-economic responsibility of a commercial organization are presented in Table 1. If we talk about the main approaches to the analysis of indicators of social responsibility, then some authors have suggested that social ratings can be a tool for ensuring

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Table 1. Key tasks of the analysis of the socio-economic responsibility of a commercial organization. Subjects of economic relations (influence groups)

Analysis tasks

Owners/Shareholders

- Analysis of the organization’s strategy and the effectiveness of its implementation - Analysis of owners’ income - Dividend policy analysis - Optimization of dividends and other income of owners - Analysis of the investment attractiveness of the organization - Analysis of the competitiveness of the organization

Staff

Analysis of the quality of working life, including: - personnel policy; - payment, stimulation and motivation of work; - working conditions, safety measures; - professional and personal development of personnel; - organizational culture; - socio-psychological climate; - social protection of the personnel and members of their families; - participation of personnel in enterprise management; - social partnership policy; - social innovation and the level of social development of the organization

Consumers

- Analysis of product and pricing policy - Analysis of the degree of satisfaction of consumer demand for goods and services by the organization - Analysis of market novelty, quality and safety of goods and services of the organization - Analysis of the level of customer service - Ad integrity and consumer rights analysis

Suppliers, resellers

- Analysis of the state of settlements and settlement discipline - Analysis of the effectiveness of product and pricing policies - Analysis of fulfillment of contractual obligations (continued)

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Subjects of economic relations (influence groups)

Analysis tasks

Competitors

- Analysis of the nature and methods of competition - Analysis of the results and effectiveness of intercompany relations

State authorities

- Analysis of calculations with the budget

Society

- Analysis of the organization’s charitable activities - Analysis of the effectiveness of the implementation of socially significant municipal and regional programs - Analysis of environmental activities of the organization and rational use of natural resources - Analysis of the environmental safety of the organization’s activities

Source: author.

sustainable growth of companies [8]. In other works, for example, the vulnerability of some methods for assessing indicators of social responsibility is highlighted due to the fact that some indicators do not have a quantitative expression, which does not allow building full-fledged statistical models [9]. Some works raise the issues of organizing and maintaining social accounting, its interconnection with accounting, managerial and strategic accounting, the need to transform the existing external financial statements of an enterprise [10–13]. Separately, it is worth noting that the financial environment also uses indices built on the basis of social responsibility reports of listed companies (FTSE4Good, DJSI). Among the areas of social responsibility that describe at the top level the enlarged cost groups, the following can be distinguished from the analysis of the scientific literature: – expenses for support, adaptation, stimulation and development of employees; – investments in social resources of current and capital nature; – expenses on obligations to state bodies, subjects, local communities (Table 2). It is worth noting that there is a possibility of calculating a complex indicator and the need to evaluate a larger number of versatile indicators for more objective strategic planning due to a significant number of various factors. One of the most universal methods for assessing the social responsibility of companies is an integrated assessment, formed by combining data on the responsibility of entire industries or regions. The composite index of social responsibility of an individual company can be calculated as the ratio of the sum for all cost groups (support, adaptation, stimulation and

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Table 2. Estimated indicators characterizing the cost groups of companies in the field of socially responsible behavior. Cost group

Indicator

Support, adaptation, stimulation and development of employees

Level of occupational diseases Number of occupational diseases/Average number of employees

Calculation formula

Worker injury rate

Number of injuries/100

Total social spending

The cost of the enterprise for wages + expenses for the payment of remunerations + expenses for staff development + expenses for social guarantees

Social spending index

Total social spending/Average number of employees

Coefficient of ratio of social expenses to net profit

Costs for social needs of the organization’s personnel in the reporting year/Net profit in the reporting year × 100%

Wage Growth Rate

Average monthly salary in the reporting year/Average monthly salary in the previous year × 100%

Young Personnel Recruitment Rate

Number of young professionals hired in the reporting year/Total number of employees x 100%

The coefficient of growth of the educational level of employees

Number of employees who underwent retraining, received a second specialty/Total number of employees × 100%

Occupational injury rate

Number of accidents at work in the reporting year/Number of accidents at work in the previous year x Total number of employees in the previous year/Total number of employees in the reporting year × 100% (continued)

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Cost group

Indicator

Calculation formula

Investments in social resources of a current and capital nature

The level of costs for environmental safety

Environmental investment/Total cost of production

Share of profit allocated to environmental investments

Environmental investment/Net income

Total volume of social investments

Long-term projects investing in social facilities + environmental investments + other investments

Share of profit allocated to social investments

Total social investment/Net income

Sponsorship Level

Sponsorship expenses/Retained earnings

Total liabilities

Taxes Paid + Fund Contributions + Sponsorship Costs

Community Social Support Spending Ratio

The indicator of expenditures on social support of the surrounding community in the reporting year/The indicator of expenditures on social support of the community in the previous year × 100%

The coefficient of the ratio of expenses for social support of the surrounding community to the net profit

The indicator of expenses for social support of the surrounding community in the reporting year/Net profit in the reporting year × 100%

Obligations to state bodies, subjects, local communities

Source: author based on [14].

development of employees + investments in social resources of a current and capital nature + obligations to state bodies, subjects, local communities) to the current ones – support for industrial purposes. In addition to quantitative indicators, for a complete and more objective assessment, the author recommends the use of a number of expert (qualitative) indicators (Table 3). There are also such areas of analysis of the company’s social responsibility to society: 1) analysis of the external social policy of the organization; 2) analysis of socially significant activities of the organization; 3) analysis of socially significant projects and programs. In the course of analyzing the social policy of a commercial organization, it is necessary to study its goals, objectives, directions, understand the motives that prompt the

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Table 3. Expert indicators characterizing the socially responsible behavior of companies. Indicator

Assessment format

Compliance of manufactured products with environmental and industry standards (with obtaining certificates of conformity)

Expert judgment (Yes/No)

Socio-cultural and housing support is able to cover 75% of the needs of employees

Expert judgment (Yes/No)

The existence of a collective agreement

(Yes/No)

Publication of non-financial reporting in the field of corporate social responsibility

(Yes/No)

Existence of an organizational structure responsible for corporate social responsibility

(Yes/No)

Existence of measures to conduct fair business practices

(Yes/No)

Attitude of the society to measures in the field of corporate social responsibility Source: author.

organization to develop socially significant projects and programs, evaluate the results of their implementation from the point of view of the target social group and from the point of view of the enterprise. The analysis of socially significant activities of the company is primarily related to nature protection, resource conservation, social investments (sponsorship and charity). The objects of analysis of environmental activities are: 1) the main areas of environmental protection (cleaning of harmful emissions from the enterprise does not completely solve the problem of pollution, since the operation of treatment facilities also produces waste, although in a smaller volume, but, as a rule, with an increased degree of concentration of harmful substances; requires large capital expenditures); elimination of the very causes of pollution (development of low-waste and waste-free production technologies that allow the integrated use of raw materials and the disposal of the most harmful substances for the biosphere); 2) environmental protection activities (development and improvement of technological processes in order to save natural resources and reduce negative impacts on the environment; conducting an environmental impact assessment of manufactured products; closing shops that produce products harmful to the environment; construction and equipment of environmental facilities; maintenance and operation of treatment facilities; recycling plants; increasing the efficiency and capacity of existing treatment facilities and recycling plants; monitoring the operation of environmental facilities; processing and disposal of solid industrial waste; maintaining green spaces on the territory of the enterprise in a sanitary protection zone; land reclamation; environmental management); 3) groups of indicators (indicators of the impact of the enterprise’s activities on the water basin; indicators of air pollution; indicators characterizing the situation of protection and rational use of land resources at enterprises of mining, chemical, metallurgical and other industries; indicators of the rational use of mineral resources, as well as production waste).

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The degree of social responsibility of an enterprise for the protection of natural resources can be assessed: 1) according to the dynamics of fines imposed on the organization and paid by it for failure to implement environmental measures against noncompliance with environmental regulations); 2) according to the dynamics of the number of man-made emergencies that resulted in environmental pollution; 3) according to the dynamics of current costs for environmental protection measures, their effectiveness, as well as short-term and long-term investments in environmental projects, etc.; 4) according to the dynamics of indicators characterizing the implementation of environmental protection measures (for example, the level of environmental friendliness of manufactured products; the number of technological processes and equipment to be phased out or improved from an environmental point of view; the efficiency of environmental structures and technologies; the number, capacity and timing of commissioning of facilities intended for the protection of water, air, mineral, land resources; the coefficient of air, water purification, dust capture and the like at newly commissioned installations; land area subject to reclamation; environmental effect of environmental measures - reduction of emissions into the atmosphere, in tons; reduction in volume wastewater by treatment degree, in thousand m3, noise reduction, in decibels, etc.). The leading subjects of the analysis of environmental activities should be state and public organizations. From our point of view, the analysis of environmental activities should be included in the strategic research work of commercial organizations, primarily those whose activities are associated with increased environmental risks. At the same time, the state should actively participate in the financing of analytical work. To conduct such studies, highly qualified specialists (ecologists, biologists, physicians, designers, technologists, economists, etc.) are needed. Resource saving methods are implemented using a system of organizational and technical measures aimed at replacing physically or morally obsolete technologies, equipment, implementing organizational projects, and improving management methods. From the point of view of R.A. Fatkhutdinov, resource intensity can be assessed using the following groups of indicators [14]: 1) absolute indicators calculated by the stages of the life cycle of products (costs: for marketing per unit of product; for R&D per unit of product; for organizational and technical preparation for the production of a new product; for the production of goods; for preparing the product for operation; for operation and maintenance of the goods; for the restoration (repair) of the goods; for the disposal of the goods; 2) structural indicators characterizing the share of the aggregated type of resource at each stage of the life cycle goods or for its entire life cycle in full costs: raw materials and supplies, components, purchased products and spare parts, etc.; 3) relative indicators of resource consumption (fuel consumption per 100 km of run of a particular car, the percentage of shrinkage during the transportation of agricultural products, etc.).

5 Conclusion The author recommends assessing the indicators of the level of social responsibility for each company in the medium-term time frame of 3–5 years, which will allow to identify positive or negative trends that develop in the context of a specific indicator,

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which will allow the management of enterprises to carry out effective monitoring, and in the case of threats to stop them. However, at the moment, the analysis of the level of social responsibility of the company using the previously mentioned indicators will have a number of shortcomings, and the possible implementation is likely to be associated with a number of difficulties: 1. The need to develop a full-fledged methodology that will allow us to compare the calculated and expert assessments of the level of social responsibility, for example, a three-level scoring system. A scoring based on a comparison of empirically obtained values with criterial ones will allow more accurate ranking of companies in social responsibility ratings and increasing the transparency and convenience of visual presentation of information both for individual indicators and for a group or company as a whole over time. 2. It is recommended to balance the methodology for its applicability to the assessment of different subjects of analysis: multinational companies, large, medium and small local businesses. This is due to the difference in the contribution of big business and its impact on the society and the environment. 3. At the moment, information about the social responsibility of companies is fragmented, which could be solved by developing a reliable and relevant social reporting system containing both financial and non-financial information on the socially responsible activities of the company (programs, social costs and investments, impact on activities), as well as meeting qualitative characteristics.

References 1. Perkovich G: Engaging China on strategic stability and mutual vulnerability. https://carneg ieendowment.org/2022/10/12/engaging-china-on-strategic-stability-and-mutual-vulnerabi lity-pub-88142. Accessed 15 May 2023 2. Zagidullina IZ (2015) Corporate social responsibility and methods of its evaluation. In: Gainanov DA, Gayfullin AY, Gataullin RF, Klimova NI, Nizamutdinov MM, Pechatkin VV (eds) Problems of Functioning and Development of Territorial Socio-Economic Systems, pp 348–351. Institute of Socio-Economic Research, USC RAS, Ufa 3. Anferov AM (2014) Methods for assessing social responsibility. In: Management of Economics: Methods, Models, Technologies, vol 2, pp 88–92. Ufa State Aviation Technical University, Ufa 4. Glushchenko AV (2020) Strategic accounting, 1st edn. Yurayt, Moscow 5. Makarenko EN, et al (2019) Modern trends in the development of business entity reporting, 1st edn. RGEU (RINH), Rostov-on-Don 6. Naumova OA, Zak AYu (2022) Assessment of the impact of the organization’s social activity on the effectiveness of its activities. Econ Entrep 2(139):737–740 7. Decree of the President of the Russian Federation of 01.04.1996 No. 440 «On the Concept of Transition of the Russian Federation to Sustainable Development» 8. Kotlyarov DA (2006) Statistical assessment of the social responsibility of industrial enterprise. PhD thesis. Moscow State University of Economics, Statistics and Informatics, Moscow 9. Glushchenko AV, Egorova EM (2015) Conceptual vision and mechanism for the implementation of functional-strategic budgeting in the university. Int Account 17(359):17–31 10. Glushchenko AV (ed) (2013) Expanding the information capabilities of the modern accounting and reporting system, 1st edn. VolSU, Volgograd

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11. Ershova NA (2016) Criteria for effective managerial decision-making in accordance with the social responsibility principles. Vestnik MIRBIS 1(5):7–13 12. Zhoydik AP (2013) Methods for assessing corporate social responsibility of business. Russ Entrep 6(228):94–98 13. Gullo AA, Filimonova NG (2018) Analysis of methods for assessing the effectiveness of corporate social responsibility of enterprises. Socio-Econ Humanit J Krasnoyarsk State Agrar Univ 1(7):92–106 14. Fatkhutdinov RA (2008) Strategic marketing, 1st ed. Peter, St. Petersburg

Author Index

A Abdulova, T. G. 52 Abuzov, A. 280, 383 Acri, E. P. 66, 201 Aksinina, O. S. 492 Alekina, E. V. 66 Andreeva, S. V. 389 Arystambayeva, A. 248 Arzhanova, K. A. 320 B Bakanach, O. V. 217 Balanovskaya, A. V. 313 Barabanova, S. V. 340 Belanova, N. N. 133 Belyaeva, G. I. 72 Bobkova, E. Yu. 86 Bogdanov, A. D. 426 Bortnikov, S. P. 449 Bratchinin, D. S. 217 Bratukhina, E. A. 18 Bulavko, O. A. 228 C Chernousova, K. S. 80 Chichkina, V. D. 58, 111 Chistik, O. F. 46, 411 Chudaeva, A. A. 101 D Davidyan, Yu. I. 266 Denisova, O. N. 58 Doladov, K. Yu. 201 Dolgopolov, D. V. 320 Domnina, S. V. 154 E Ermolaev, K. N. 286 Ermolina, L. V. 66 Evtodieva, T. E. 111, 178

F Filenko, T. S. 402 G Gagarinskya, G. P. 52 Goryacheva, T. V. 330 Gostev, D. V. 217 Grankina, S. V. 419 Grankov, O. R. 133 Guseva, N. V. 395 I Ivanov, D. V. 193 Ivanova, E. V. 18 K Kalashnikova, E. A. 208 Kalenskaya, N. V. 442 Kandrashina, E. A. 304 Karapetyan, L. A. 185 Karno, S. S. 94 Karpova, N. P. 178 Karsuntseva, O. V. 241 Kharitonov, E. A. 164 Kharitonova, D. V. 164, 261, 354 Khilov, D. V. 255, 376 Kislinskaya, M. V. 395 Kogut, O. 248 Kolesova, Yu. A. 18 Korneeva, T. A. 458 Kornilova, A. D. 201, 261, 345 Kornilova, E. V. 395 Koroleva, E. N. 126 Kosyakova, I. V. 52 Kozhukhova, N. V. 10 Kozhukhova, V. V. 458 Kryuchkova, N. A. 419 Kudryashov, A. A. 217 Kurganova, M. V. 478

© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 V. Mantulenko (Ed.): CEISD 2023, LNCE 378, pp. 503–504, 2023. https://doi.org/10.1007/978-3-031-38122-5

504

Author Index

L Lelyakova, A. S. 402 Levchenko, A. V. 360 Loginov, S. V. 126 M Makarov, S. I. 119, 193 Maltsev, M. D. 94 Malysheva, O. V. 86 Mantulenko, V. V. 223, 345 Manyaeva, V. A. 185 Melnikova, D. A. 66 Minina, J. I. 86 Mitropolskaya-Rodionova, N. V. N Nasonkin, V. V. 340 Naugolnova, I. A. 274, 369 Naumova, O. A. 27 Nekrasov, V. V. 255, 376 Nikolaeva, I. V. 360 Nikonova, N. V. 340 Nikulnikov, N. V. 46 Nordin, D. A. 458 Noskov, V. A. 255, 376 Nurgaliyeva, G. 248 P Pavlova, A. V. 442 Perepelkin, V. A. 34 Perepelkina, E. V. 34 Polyanskova, N. V. 72 Popok, L. E. 223 Popova, E. S. 292 Proskurina, N. V. 266 Pudovkina, O. E. 18, 426 R Rakhmatullina, A. R. 86 Ralyk, D. V. 140 Rebrov, S. D. 286

313

S Sattarov, R. A. 133 Savoskina, E. V. 154 Sharokhina, S. V. 241, 395 Shchutskaya, A. V. 10 Sheremetyeva, E. N. 313 Shilman, R. M. 80 Sidorova, A. V. 299 Silantiev, S. V. 27 Smolina, E. S. 208 Solopova, N. A. 154 Starostin, V. S. 320 Sultanova, B. 248 Suraeva, M. O. 292 Svetkina, I. A. 94 T Tarasova, T. M. 464 Timokhovich, A. N. 402 Tomazova, O. V. 3 Toymentseva, I. A. 58, 111 Troshina, E. P. 471 Tuktarova, L. R. 434 U Urazova, Y. V.

126

V Vasetskaya, E. S. 241 Verkolab, A. A. 266 Vishnyakova, A. B. 40, 147 Volkodadova, E. V. 3 Volkodavova, E. V. 330 Y Yakhneeva, I. V. 442 Yurov, I. E. 458 Z Zastupov, A. V. 235, 484 Zhabin, A. P. 330 Zizikova, S. I. 360 Zolotukhin, E. I. 27, 147 Zorina, M. A. 266