Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”: Volume 1 (Lecture Notes in Networks and Systems, 397) 3030948722, 9783030948726
This book contains contributions from an international scientific conference, “Smart Nations: Global Trends In The Digit
128 100 8MB
English Pages 567 [563] Year 2022
Contents
State and Legal Aspects of Digital Transformation of Management Systems
Digital Platforms and Issues of Corporate Criminal Responsibility, Self-regulation
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
The Recruitment Evolution in Russia and the CIS Countries
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
The Development of Tools for Improving the Effectiveness of Regional Programs Planning
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Formation of Profiles of Digital Development of the Modern World Countries
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Public Procurement from SME: Savings Against Special Conditions in 2019–2020
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Chinese Phenomenon of “Pre-knowledge” as Traditional Element of Predicting Digital Future
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
The China – U.S. Trade Policy Stances: The Impasse or Viable Solutions?
1 Introduction
2 Methodology
3 Results
3.1 Pitfalls of the China’s Trade Policy
3.2 The Anti-dumping Effects
4 Discussion
5 Conclusion
References
Integration Barriers of Small and Medium-Sized Businesses with Russian Business Ecosystems
1 Introduction
2 Literature Review
3 Methodology
4 Results
5 Conclusion
References
Stability of the State System in the Context of Digital Transformation
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Ways to Improve Law Forms in the Context of Digital Management Transformation
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Advantages of Smart Contracts in Civil Circulation and Their Legal Regulation Disadvantages
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
International Delivery Services in the COVID-19 Conditions Through the Economics and Law
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Labor Market Precarization: Russian and Foreign Experience of Its Regulation
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Current Development Trends of the System of Public Administration
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Organizational and Economic Problems of Financial Support of the Russian Economy Growth
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Model of the Tax Management System in the Conditions of Cash Turbulence
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Digital Strategies for Improving Global Supply Chain Resilience and Agility
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Smart Department: Technologies of Organizational Processes
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Development of Museum Informatics in Russia and Abroad
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Potential Realization of Lawful Behavior as Condition for Building a Digital State
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
“Big Data” as a Mechanism for Assisting State and Municipal Authorities
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Russian Industry in the Digital Age: State and Development Trends
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Public-Private Partnership as a Management Tool in the Sphere of Culture in Russia
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
The State and Prospects for the Development of Forensic Environmental Expertise Digitalization
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Constitutional Right to Health Protection in the Context of Artificial Intelligence Development
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Violation of Individuals and Legal Entities Rights in the Digital Technologies Field
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Corporate Governance Innovations
1 Introduction
2 Methodology
3 Literature Review
4 Results
4.1 Tokenization of Corporate Assets
5 Decentralization of Corporate Governance
6 Artificial Intelligence in Corporate Governance
7 Conclusion
References
State Support of Russian Commercial Organizations Overcoming the 2020 Pandemic Consequences
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
New Technologies in the Digital Environment of the Information Society
Big Data Regulation: The Main Risks and Ways to Neutralize Them
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Mathematical Model of Rational Location of Augmented Reality Objects in User's Environment
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Digital Signals Processing
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Management of Accumulated Information
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Managing Flexible Systems in Digital Transformation
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
The Future of Communication: Artificial Intelligence and Personal Attractiveness
1 Introduction
2 Methodology
3 Results
3.1 Information Paradigms and Their Specific Features of Communication
3.2 Social Networks as a Promising Communication Functionality
3.3 Features of Online Communication and the Problem of Maintaining Attractiveness
4 Discussion
5 Conclusion
References
Site Base Conversion and Impact of Advertising Traffic Source on Conversion Rate
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Digital Ecosystems: Issues of Creating and Increasing Value
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Socio-Economic and Political Transformation of “Smart Nations” as a Digital Society
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Development Prospects of SMART Grid in the Energy Sector of Kazakhstan
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Creation of Innovative Ecosystems as an Actual Trend of Technological Development
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Improvement of System of Environmental Support for Project Activities
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Transformation of the Innovation Process with Digital Technologies
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Comparative Analysis of Project Management Software Products
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Comprehensive Mathematical Agent-Based Model of Social System for Management Automation Purposes
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Total Digitalization: Problematic Contours of the Future
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Information Technologies in Shaping the Population’s Commitment to Vaccination Against Covid-19
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Digital Footprint Analysis Technology: Some Aspects of Its Application in Recruitment
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Smart Economy: A New Reality
Digitalization of the Construction Industry as a Condition for Sustainable Development
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
System Development for Generating Reports on Production Activities on the Platform SAP
1 Introduction
2 Methodology
3 Results
4 Conclusion
References
The Need to Introduce Digital Technologies in Logistics Companies
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
The Optimization of Compensation Packages in Post-pandemic Economic Environment
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Intellectual Capital Management in High-Tech Project-Oriented Companies Under Dizitalization
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Development of Risk Passport for Digital Financial Product
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Energy Efficiency of the Warehouse Complex
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Management Consulting in Digital Era
1 Introduction
2 Methodology
3 Results
3.1 Management Consulting in Pre-digital Era
3.2 Digital Consulting Challenges and Solutions
4 Discussion
5 Conclusion
References
Optimization of Software System Models
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Online Management Technologies and Organization of Management Activities
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Configurations and Dominants Management Organization Interaction
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusions
References
Value Management Platform in the Digital Environment
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusions
References
Comparative Analysis of the Product Management Application in Startups of Different Types
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Forecasting Innovations on the Example of Low-Price Copters
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Digital Technologies at the Production Enterprises of the Elevator Industry
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Conceptual Model Change of Territorial Administration as Response to Digital Economy Challenge
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Criteria for the Effectiveness of Corporate Social Responsibility
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
“Digital Economy” Concept in the Russian and Kazakh Media Sphere
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Research on The Use of Logistics Efficiency Improvement Tools by Russian Companies
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Information Protection in a Commercial Bank
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Workplace Well-Being in Employee Estimates
1 Introduction
2 Literature Review
3 Methodology
4 Results
5 Conclusion
References
Modernization of the Tax Sphere in the Digital Economy
1 Introduction
2 Methodology
3 Literature Review
4 Results
5 Conclusion
References
Choosing a Hybrid Work Model and New Challenges
1 Introduction
2 Methodology
3 Results
4 Discussion
5 Conclusion
References
Author Index
Recommend Papers
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Lecture Notes in Networks and Systems 397
Svetlana Igorevna Ashmarina Valentina Vyacheslavovna Mantulenko Marek Vochozka Editors
Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy” Volume 1
Lecture Notes in Networks and Systems Volume 397
Series Editor Janusz Kacprzyk, Systems Research Institute, Polish Academy of Sciences, Warsaw, Poland Advisory Editors Fernando Gomide, Department of Computer Engineering and Automation—DCA, School of Electrical and Computer Engineering—FEEC, University of Campinas— UNICAMP, São Paulo, Brazil Okyay Kaynak, Department of Electrical and Electronic Engineering, Bogazici University, Istanbul, Turkey Derong Liu, Department of Electrical and Computer Engineering, University of Illinois at Chicago, Chicago, USA Institute of Automation, Chinese Academy of Sciences, Beijing, China Witold Pedrycz, Department of Electrical and Computer Engineering, University of Alberta, Alberta, Canada Systems Research Institute, Polish Academy of Sciences, Warsaw, Poland Marios M. Polycarpou, Department of Electrical and Computer Engineering, KIOS Research Center for Intelligent Systems and Networks, University of Cyprus, Nicosia, Cyprus Imre J. Rudas, Óbuda University, Budapest, Hungary Jun Wang, Department of Computer Science, City University of Hong Kong, Kowloon, Hong Kong
The series “Lecture Notes in Networks and Systems” publishes the latest developments in Networks and Systems—quickly, informally and with high quality. Original research reported in proceedings and post-proceedings represents the core of LNNS. Volumes published in LNNS embrace all aspects and subfields of, as well as new challenges in, Networks and Systems. The series contains proceedings and edited volumes in systems and networks, spanning the areas of Cyber-Physical Systems, Autonomous Systems, Sensor Networks, Control Systems, Energy Systems, Automotive Systems, Biological Systems, Vehicular Networking and Connected Vehicles, Aerospace Systems, Automation, Manufacturing, Smart Grids, Nonlinear Systems, Power Systems, Robotics, Social Systems, Economic Systems and other. Of particular value to both the contributors and the readership are the short publication timeframe and the world-wide distribution and exposure which enable both a wide and rapid dissemination of research output. The series covers the theory, applications, and perspectives on the state of the art and future developments relevant to systems and networks, decision making, control, complex processes and related areas, as embedded in the fields of interdisciplinary and applied sciences, engineering, computer science, physics, economics, social, and life sciences, as well as the paradigms and methodologies behind them. Indexed by SCOPUS, INSPEC, WTI Frankfurt eG, zbMATH, SCImago. All books published in the series are submitted for consideration in Web of Science. For proposals from Asia please contact Aninda Bose ([email protected]).
More information about this series at https://link.springer.com/bookseries/15179
Svetlana Igorevna Ashmarina Valentina Vyacheslavovna Mantulenko Marek Vochozka •
•
Editors
Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy” Volume 1
123
Editors Svetlana Igorevna Ashmarina Department of Applied Management Samara State University of Economics Samara, Russia
Valentina Vyacheslavovna Mantulenko Department of Applied Management Samara State University of Economics Samara, Russia
Marek Vochozka Institute of Technology and Business České Budějovice, Czech Republic
ISSN 2367-3370 ISSN 2367-3389 (electronic) Lecture Notes in Networks and Systems ISBN 978-3-030-94872-6 ISBN 978-3-030-94873-3 (eBook) https://doi.org/10.1007/978-3-030-94873-3 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 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
State and Legal Aspects of Digital Transformation of Management Systems Digital Platforms and Issues of Corporate Criminal Responsibility, Self-regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V. R. Volkov and E. L. Sidorenko The Recruitment Evolution in Russia and the CIS Countries . . . . . . . . T. V. Suvalova, M. A. Zhukova, and O. S. Suvalov
3 10
The Development of Tools for Improving the Effectiveness of Regional Programs Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . O. M. Pisareva, A. I. Denisova, and I. K. Dzhioeva
17
Formation of Profiles of Digital Development of the Modern World Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . L. A. Konstantinova and I. V. Kramarenko
25
Public Procurement from SME: Savings Against Special Conditions in 2019–2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D. A. Sozaeva and S. A. Suyazova
33
Chinese Phenomenon of “Pre-knowledge” as Traditional Element of Predicting Digital Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . M. Zakharov and A. Shishkova
43
The China – U.S. Trade Policy Stances: The Impasse or Viable Solutions? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . L. N. Talalova and J. Tian
50
Integration Barriers of Small and Medium-Sized Businesses with Russian Business Ecosystems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . O. A. Vasilyeva and O. V. Kurasova
58
v
vi
Contents
Stability of the State System in the Context of Digital Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V. A. Kornilovich, V. I. Vasilenko, and O. A. Kulikova
65
Ways to Improve Law Forms in the Context of Digital Management Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yu. A. Myshko, A. A. Bochkov, and P. V. Gurschenkov
74
Advantages of Smart Contracts in Civil Circulation and Their Legal Regulation Disadvantages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V. V. Popov and D. P. Strigunova
81
International Delivery Services in the COVID-19 Conditions Through the Economics and Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N. Sokolov, N. Malanicheva, and I. Strelnikova
89
Labor Market Precarization: Russian and Foreign Experience of Its Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N. V. Solovova, N. V. Sukhankina, and D. G. Slatov
99
Current Development Trends of the System of Public Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 E. A. Khalimon, S. M. Sycheva, and V. Obradović Organizational and Economic Problems of Financial Support of the Russian Economy Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 Yu. V. Mishin and A. Yu. Mishin Model of the Tax Management System in the Conditions of Cash Turbulence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 A. A. Silaev, G. YU. Parshikova, and A. A. Perfiliev Digital Strategies for Improving Global Supply Chain Resilience and Agility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 V. V. Efimova Smart Department: Technologies of Organizational Processes . . . . . . . . 147 G. Ya. Soroko and I. Z. Kogotkova Development of Museum Informatics in Russia and Abroad . . . . . . . . . 154 V. A. Kolobkova and A. A. Romanov Potential Realization of Lawful Behavior as Condition for Building a Digital State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 E. F. Ivashkevich, G. Sh. Bochkova, and R. V. Shagieva “Big Data” as a Mechanism for Assisting State and Municipal Authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 D. Yu. Znamenski, A. S. Sibiryaev, and T. M. Tokmurzin
Contents
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Russian Industry in the Digital Age: State and Development Trends . . . 179 I. N. Ivanov, L. V. Orlova, and S. I. Ivanov Public-Private Partnership as a Management Tool in the Sphere of Culture in Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187 S. V. Domnina, S. U. Salynina, and E. V. Savoskina The State and Prospects for the Development of Forensic Environmental Expertise Digitalization . . . . . . . . . . . . . . . . . . . . . . . . . 196 E. I. Mayorova and S. E. Titor Constitutional Right to Health Protection in the Context of Artificial Intelligence Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 M. A. Lipchanskaya, T. N. Balashova, and E. V. Maslennikova Violation of Individuals and Legal Entities Rights in the Digital Technologies Field . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 A. T. Movsisyan, F. G. Mushko, and N. B. Rouiller Corporate Governance Innovations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 M. A. Tokmakov, I. V. Smotrova, and M. P. Apukhtin State Support of Russian Commercial Organizations Overcoming the 2020 Pandemic Consequences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227 O. A. Khvostenko New Technologies in the Digital Environment of the Information Society Big Data Regulation: The Main Risks and Ways to Neutralize Them . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 E. L. Sidorenko and Z. I. Khisamova Mathematical Model of Rational Location of Augmented Reality Objects in User's Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248 M. V. Alpatova, A. V. Glazkov, and Yu. V. Rudyak Digital Signals Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255 A. V. Zaytsev Management of Accumulated Information . . . . . . . . . . . . . . . . . . . . . . . 262 A. E. Makarenko Managing Flexible Systems in Digital Transformation . . . . . . . . . . . . . . 270 L. R. Tuktarova The Future of Communication: Artificial Intelligence and Personal Attractiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277 L. Filindash and N. Paudal
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Contents
Site Base Conversion and Impact of Advertising Traffic Source on Conversion Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285 G. L. Azoev and D. A. Khokhlov Digital Ecosystems: Issues of Creating and Increasing Value . . . . . . . . . 297 G. V. Butkovskaya and E. V. Krasnov Socio-Economic and Political Transformation of “Smart Nations” as a Digital Society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303 M. A. Dyakonova, A. K. Botasheva, and M. L. Kardanova Development Prospects of SMART Grid in the Energy Sector of Kazakhstan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310 V. G. Antonov and Y. S. Petrenko Creation of Innovative Ecosystems as an Actual Trend of Technological Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316 V. G. Smirnova, Zh. K. Baziyan, and G. R. Latfullin Improvement of System of Environmental Support for Project Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324 P. V. Zozulya, A. V. Zozulya, and L. N. Derevyagina Transformation of the Innovation Process with Digital Technologies . . . 331 E. N. Dunenkova, E. A. Kakaeva, and S. I. Оnishchenko Comparative Analysis of Project Management Software Products . . . . . 339 E. V. Nikitina, S. A. Nikitin, and D. A. Elkina Comprehensive Mathematical Agent-Based Model of Social System for Management Automation Purposes . . . . . . . . . . . . . . . . . . . . . . . . . 346 M. V. Samosudov Total Digitalization: Problematic Contours of the Future . . . . . . . . . . . 354 E. S. Karsanova and O. S. Volgin Information Technologies in Shaping the Population’s Commitment to Vaccination Against Covid-19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360 V. M. Cherepov, O. V. Sobolevskaya, and I. V. Petrunina Digital Footprint Analysis Technology: Some Aspects of Its Application in Recruitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368 O. A. Peshkova Smart Economy: A New Reality Digitalization of the Construction Industry as a Condition for Sustainable Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379 O. E. Astafyeva, N. A. Moiseenko, and A. V. Kozlovsky
Contents
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System Development for Generating Reports on Production Activities on the Platform SAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386 V. A. Belousov, A. A. Sirotin, and L. I. Shustova The Need to Introduce Digital Technologies in Logistics Companies . . . 395 M. V. Bukhtoyarova The Optimization of Compensation Packages in Post-pandemic Economic Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402 N. I. Arkhipova, S. V. Nazaikinsky, and O. L. Sedova Intellectual Capital Management in High-Tech Project-Oriented Companies Under Dizitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409 M. V. Bogdanova and A. A. Parshintsev Development of Risk Passport for Digital Financial Product . . . . . . . . . 415 O. I. Larina and N. V. Moryzhenkova Energy Efficiency of the Warehouse Complex . . . . . . . . . . . . . . . . . . . . 422 V. B. Vorontsov, I. A. Puzanova, and B. A. Anikin Management Consulting in Digital Era . . . . . . . . . . . . . . . . . . . . . . . . . 430 I. A. Mamedova, V. Savchenko-Belsky, and Serge Velesco Optimization of Software System Models . . . . . . . . . . . . . . . . . . . . . . . . 438 M. Sergievskiy, A. Vinokur, and M. Shevchenko Online Management Technologies and Organization of Management Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445 M. B. Zhernakova, T. Yu. Krotenko, and I. A. Rumyantseva Configurations and Dominants Management Organization Interaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453 A. V. Raichenko, G. V. Avetisyan, and V. V. Maslennikov Value Management Platform in the Digital Environment . . . . . . . . . . . . 462 G. V. Serebryakova, I. V. Nezamaykin, and T. B. Shramchenko Comparative Analysis of the Product Management Application in Startups of Different Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 468 B. E. Tokarev Forecasting Innovations on the Example of Low-Price Copters . . . . . . . 476 E. Yu. Kamchatova, I. S. Vladimirov, and V. S. Kempa Digital Technologies at the Production Enterprises of the Elevator Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 485 E. A. Vikhodtseva, N. A. Kobyzeva, and Z. M. Galperina Conceptual Model Change of Territorial Administration as Response to Digital Economy Challenge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 493 V. I. Tinyakova, N. I. Morozova, and E. V. Potekhina
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Criteria for the Effectiveness of Corporate Social Responsibility . . . . . . 500 A. V. Malkova and Ya. S. Ignatova “Digital Economy” Concept in the Russian and Kazakh Media Sphere . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506 O. A. Popovich, N. F. Krylova, and D. S. Tashimkhanova Research on The Use of Logistics Efficiency Improvement Tools by Russian Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 513 E. V. Tsenina, K. V. Erygin, and E. S. Kurbatova Information Protection in a Commercial Bank . . . . . . . . . . . . . . . . . . . 523 M. N. Oreshina and A. V. Badyina Workplace Well-Being in Employee Estimates . . . . . . . . . . . . . . . . . . . . 529 A. Fedorova, Z. Dvorakova, and H. Atas Modernization of the Tax Sphere in the Digital Economy . . . . . . . . . . . 541 O. L. Mikhaleva Choosing a Hybrid Work Model and New Challenges . . . . . . . . . . . . . . 547 V. G. Konovalova, B. V. Petrenko, and R. V. Aghgashyan Author Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 555
State and Legal Aspects of Digital Transformation of Management Systems
Digital Platforms and Issues of Corporate Criminal Responsibility, Self-regulation V. R. Volkov and E. L. Sidorenko(B) Moscow State Institute of International Relations (University) of the Ministry of Foreign Affairs, Moscow, Russia
Abstract. Foreign literature emphasizes the idea that a corporation is subject to corporate criminal punishment for committing a crime (taking into account the differentiation of criminal responsibility) through the model of corporate criminal responsibility, which is part of corporate social responsibility. However, another co-existing process involved in the management of a corporation is self-regulation, which involves the establishment and implementation of internal control of the company’s activities; its scope is gradually decreasing due to the penetration of state regulation into it. The concept of “digital social responsibility”, the concept of “corporate digital responsibility”, in our opinion, indicate that at the moment there is no single scientific direction for the development of provisions on corporate responsibility on digital platforms, which requires the joint efforts of scientists who justify and explain the effectiveness of applying a particular legal model. Thus, each of the available models in foreign literature defines the subject, scope and limits of legal regulation in different ways, as can be seen from the name and their content. Keywords: Corporate criminal responsibility · Corporate digital responsibility · Corporate social responsibility · Digital platforms · Digital social responsibility · Self-regulation
1 Introduction The inclusion in the scientific sphere of discussion of the types and forms of social relations, the subject, scope and limits of legal regulation of which are determined over time, supposes the formation of “secondary images” of reality before the study of the above-mentioned areas. The phenomenon called “industrial internet”, “industry 4.0” or “Internet of things” is not considered an exception and consists in re-evaluating the nature of products and infrastructure in such a way that it is considered as the penetration of digital technologies into knowledge about goods, services and processes [2]. On the other hand, there is the opinion that the Internet of things platform is seen as “a kind of digital platform along with markets, social media platforms, and is a business model that uses technologies and combines people, organizations, and resources into an interactive ecosystem in which the creation and exchange of a certain amount of value is allowed” [3]. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 3–9, 2022. https://doi.org/10.1007/978-3-030-94873-3_1
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The concept of “digital platform” is considered from the economics, technical and legal, business, and social point of view [4]. Each of the presented positions has its own followers and a certain content included in the structure of knowledge. We adhere to a position that combines the above approaches. The introduction of digital platforms in the activities of corporations, for example, Apple, Amazon, Microsoft, and their subsequent use requires the establishment of a regime of corporate social responsibility, in particular, corporate criminal responsibility of companies and their implementation. This conclusion can be explained through the category of “positivism” as follows. In domestic and foreign literature, there are theories about the “conditionality of law by economic and political processes” [5]. At the same time, it is emphasized, on the one hand, that positivism in the broad sense is a general cultural (ideological) attitude of the “Western” consciousness, formed in the process of the formation of a capitalist (industrial) society. The “earth” – the physical nature of man, his practical “material” interests and production – transforming activities in the material world [6], on the other hand, capitalism continues to look for new ways to extract surplus value [1]. The existence of a capitalist society, the orientation of activities towards profitmaking, the search for forms of its implementation and their subsequent application through digital technologies led to new economic, political, social, legal and other challenges. For example, from the point of view of law, questions are raised about the legal personality of artificial intelligence, the limits of state intervention in the management of corporations and the indirect implementation of their management, the need for selfregulation of companies, the expansion of the concept of “culture” and its application to bring corporations to corporate criminal responsibility, the differentiation of corporate criminal responsibility. Thus, the term “positivism” reflects the phenomena that get their existence, discussed in the scientific community, which is recognized as digital law or the transformation of law taking into account the development of the digital economy, digital technologies, and digital ecosystems. The above phenomena nowadays reflect a certain historical era. For this period of time, it seems that foreign literature developed approaches to assessing the activities of corporations through the prism of corporate criminal responsibility. Since digital platforms became part of the culture of the current time, it is considered necessary to analyze foreign experience on corporate criminal responsibility and due to the fact that “there are no mechanisms in international law for bringing corporations as legal entities to criminal responsibility for their actions”, which may become our future research. On the other hand, there is the position according to which corporate criminal responsibility was introduced into international law in the Nuremberg Charter after all that happened on the Second World War [7].
2 Methodology The following research methods are taken into account: dialectical, induction, deduction, historical, description, logical, formal-legal; abstractions of potential feasibility (assumes a distraction from the whole set of complications of a certain kind, considers them insignificant; the imaginary nature of steps begins to be thought altogether and equally with the actually feasible ones) [6]; a systematic approach.
Digital Platforms and Issues of Corporate Criminal Responsibility
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These methods in a certain area of knowledge at a particular moment, together with other methods, through the philosophical content of the concept of “connection”, influence the theoretical understanding of the research object. This article recognizes the part of the field in which the activity of digital platforms is in interaction with the norms of corporate criminal responsibility, self-regulation at the theoretical level. Our object of research takes into account the potential and limits of legal doctrine (legal science) within the framework of economic and political phenomena, but is not limited to them. Its significance, in particular, is expressed in the current law, on the one hand, in the behavior of corporations, its assessment, on the other hand.
3 Results This study allowed us to form the following idea (“secondary image of reality”) about the area in which the activities of digital platforms are in interaction with the norms of corporate criminal responsibility, self-regulation at the theoretical level. Foreign literature emphasizes the idea that a corporation is subject to corporate criminal punishment for committing a crime (taking into account the differentiation of criminal responsibility) through the model of corporate criminal responsibility, which is part of corporate social responsibility. However, another co-existing process involved in the management of a corporation is self-regulation, which involves the establishment and implementation of internal control of the company’s activities; its scope is gradually decreasing due to the penetration of state regulation into it. The concept of “digital social responsibility”, the concept of “corporate digital responsibility”, in our opinion, indicate that at the moment there is no single scientific direction for the development of provisions on corporate responsibility on digital platforms, which requires the joint efforts of scientists who justify and explain the effectiveness of applying a particular legal model. Thus, each of the available models in foreign literature defines the subject, scope and limits of legal regulation in different ways, as can be seen from the name and their content. At the same time, the points raised in the article are broader than the field of study. The reason for their coverage is the indivisibility of their total system content, the amount of knowledge about which is constantly increasing due to factors that indicate possible paradigms for solving problematic issues. Since the connections in the theoretical representation are not fixed, theories, methods, other categories and their content are universal, since the chosen field of study remains unchanged. At the same time, economic and political realities require the development of digital law, its transformation in the context of digitalization. Through such a property as the adaptability of law, and, in particular, with the help of corporate criminal responsibility (established approaches to assessing the activities of corporations taking into account their legal personality), differentiation of corporate criminal responsibility, self-regulation, there are mutual processes of filling the economic and political with social and legal content. It also seems interesting that in the twentieth century, scientists mainly used the term “accountability”, in the twenty first century, preference is given to the categories of “liability”, “responsibility” - law has become associated with the management of corporate behavior by the legislator, returning to its origins, with the responsibility of corporations in the eyes of the law.
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4 Discussion The COVID-19 pandemic has changed the world order, especially of the economic and political life of society. New types and forms of the capitalist system began to develop, ensuring the functioning of the economy in conditions unusual for human existence. The emergence and development of the digital environment, the reorientation to other values, and their maintenance in communication relations between people through the use of technologies led to a reassessment of the behavior of corporations that began to “implement initiatives in the field of corporate social responsibility… to improve their image and increase sales revenues” [8]. Reducing the financial costs for corporations to carry out social responsibilities on their own, for example, the implementation of projects to raise funds for social and charitable purposes; competition, on the one hand, and, on the other hand, the interaction of companies in digital ecosystems (an actual and discussed problem in the scientific environment); the development of technologies that ensure the fastest result of meeting the needs of society and other aspects of the process of digitalization raised the question (through the concept of “paradigm”) about changing the scientific picture of the world (or the “picture of the reality under study”). Reflecting this conclusion, in particular, is the statement that “any social responsibility efforts on digital platforms can be conceived as digital social responsibility” [8]. Moreover, the concept of corporate digital responsibility, understood as “a set of common values and norms that define the organization’s activities in relation to the four main processes related to digital technologies and data”, is currently proposed for further discussion and development in science [9]. On the basis of the literature used and the literature not included in this article, there is an idea that the management of a corporation is carried out through corporate social responsibility and through self-regulation. Corporate social responsibility is considered as [8]: 1) a concept with which companies integrate social and environmental concerns into their business activities and interact with their stakeholders on a voluntary basis; 2) ethical, moral and social obligations of the firm that go beyond the economic and financial frameworks; 3) a multidimensional concept; one such model is the Carroll model: it includes the economic, legal, ethical, and discretionary (philanthropic) expectations of society in relation to organizations at a given time. The other side of corporate governance is self-regulation. However, it is worth noting that “platform management… moves away from the industry model of self-regulation in the direction of strengthening public administration” [12], which shifts the focus towards legislative regulation of the behavior of corporations using digital platforms for doing business. The extension of state authority to the management of the platform is carried out through corporate social responsibility. Moreover, “if a corporation can be brought to civil liability as an individual for the illegal actions of its “agents”, then there can be no sufficient grounds for refusing to bring it to criminal responsibility [11]. In this regard,
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it is interesting to pay attention to the historical development of the content of corporate criminal responsibility in order to assess modern approaches to it in foreign literature. The prototypes of corporations appeared several centuries ago. “Until the 16th and 17th centuries, they could not be prosecuted. However, the idea of subsidiary liability, together with the emergence of the church as a legal entity in the 12th century, gave way to what we know today as corporate criminal responsibility [7]. In the 17th and 18th centuries, it became obvious that shareholders were unable or unwilling to control the management of corporations. In 1834, it was established that a corporation could be charged with dereliction of duty by omission. In 1909, the principle according to which, if a crime was committed simply by purposefully committing a prohibited act, then the corporation was subject to criminal prosecution, received the approval of the US Supreme Court. At the same time, since the end of the 19th century, barriers to imposing on corporations the entire range of obligations to which individuals were subject, have being destroyed [11]. In science, there is a position in which there are four types of corporate criminal responsibility: “subsidiary responsibility” (involves attributing the actions and omissions of individual agents of the corporation as such), “identification doctrine” (provides for the establishment of actus reus and mens rea; agents act as a company), “aggregation model” (those situations where the knowledge possessed by each of the various agents is attributed to the corporation separately, which are then combined into one criminal whole), “self-identification doctrine” (the guilt of the corporation in committing a crime is exclusively at the structural level) [7]. The regime of corporate criminal responsibility is ensured by the appointment and application of corporate criminal penalties for the commission of a crime. We believe that corporate criminal punishment for the commission of a crime plays a key role in the maintenance of this type of behavior by corporations (this issue is considered controversial [10], which is not only criminally punishable, but also illegal by virtue of existing legal norms. However, since the international legal norms of corporate criminal responsibility do not apply at the international level, the differentiation of criminal responsibility, taking into account the accepted approach to assessing the actions of companies at the national level, varies in its volume, type, and size. It is emphasized that “there should be proportionality in sentencing. Punishment for gross human rights violations may, for example, include the liquidation of a company, on the one hand, on the other hand, the UN emphasizes the need for compensation for damages, while traditionally criminal law should not be reparative [7]; the introduction of non-monetary sanctions due to insufficient wealth of agents [10] is considered as an effective measure that ensures a balance of public and private interests. In all these cases, the differentiation of criminal responsibility is recognized as a legal phenomenon that exists before the commission of the crime. It is integrated into the law, into the criminal fabric in such a way that it does not exist outside of their framework, but is reflected within them not only in the form associated (in the structure of the legal norm) with the sanction, but also in other forms, depending on the directions in which it is considered in criminal law science. Such a theoretical phenomenon in the doctrine of criminal law finds indirect expression in the individualization of criminal punishment, but its value is connected not only
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with its application in legal reality, but also beyond it - it finds indirect reflection in the moral field, which is connected with the content of the concept of self-regulation through the philosophical concept of “connection”, in the sense that its form in both areas has a single basis for different natures: a social basis.
5 Conclusion The stage of the emergence of the digital economy and digital law has passed – their development is taking place, along with them the content of corporate criminal responsibility, new paradigms, for example, the concept of corporate digital responsibility, self-regulation through such a property as adaptability, are developing. This property is inherent not only in the norms of law, but also in social norms, including moral norms, which are included in the activities of companies and are reflected in their management. The management of corporations by law requires explanations from scientists in the form of, for example, theories, models, and paradigms. Thus, it is as if a theoretical attempt is being made to manage a legal entity in the sense and from the historical period of time when such a need was realized, and law began to play a significant role in this situation. And to this day, the challenges that it faces accumulate the joint efforts of specialists from the humanities to solve them. And our suggested field of study is a clear proof of this. Acknowledgements. The authors express their gratitude to the Moscow State Institute of International Relations (University) of the Ministry of Foreign Affairs and the Russian State Library for access to the Scopus and Web of Science databases.
References 1. Brickey, K.F.: Corporate criminal accountability: a brief history and an observation. Wash. Univ. Law Rev. 60(2), 393–423 (1982) 2. Garoupa, N.: Corporate criminal law and organization incentives: a managerial perspective. Manage. Decis. Econ. 21(6), 243–252 (2000) 3. Gorwa, R.: The platform governance triangle: conceptualising the informal regulation of online content. Internet Policy Rev. 8(2), 1–22 (2019). https://doi.org/10.14763/2019.2.1407 4. Hein, A., et al.: Digital platform ecosystems. Electron. Mark. 30(1), 87–98 (2019). https:// doi.org/10.1007/s12525-019-00377-4 5. Howcroft, D., Bergvall-Kåreborn, B.: A typology of crowdwork platforms. Work Employ. Soc. 33(1), 21–38 (2019). https://doi.org/10.1177/0950017018760136 6. Jansson, R.H.W.: Corporate Criminal Liability – time for Sweden to look beyond individual criminal responsibility. Dissertation (2018). http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva360281 7. Koch, T., Windsperger, J.: Seeing through the network: competitive advantage in the digital economy. J. Organ. Des. 6(1), 1–30 (2017). https://doi.org/10.1186/s41469-017-0016-z 8. Lobschat, L., et al.: Corporate digital responsibility. J. Bus. Res. 122, 875–888 (2021) 9. Puriwat, W., Tripopsakul, S.: The impact of digital social responsibility on preference and purchase intentions: the implication for open innovation. J. Open Innovation Technol. Market Complexity 7(1), 24, 1–11 (2021)
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10. Pyanov, N.A.: Theory of state and law. Irkutsk: Publishing house of the IrI (f) VSU (RPA of the Ministry of Justice of the Russian Federation) (2015) 11. Stepin, V.S. (ed.): New Philosophical Encyclopedia. Mysl, Moscow (2010) 12. Steur, A.J., Seiter, M.: Properties of feedback mechanisms on digital platforms: an exploratory study. J. Bus. Econ. 91, 479–526 (2021)
The Recruitment Evolution in Russia and the CIS Countries T. V. Suvalova(B) , M. A. Zhukova, and O. S. Suvalov State University of Management, Moscow, Russia [email protected], [email protected]
Abstract. Recruitment of personnel is becoming an increasingly important function of HR which determines the efficiency and competitiveness of companies’ activities. The purpose of the study is to analyze changes and advanced trends in the field of recruitment. The contribution considers the smooth transition of the recruitment process from the traditional to the new promising models over the past thirty years. The positive effects of the Internet on the speed and efficiency of candidate selection, the emergence of professional communities and social networks are noted. The process of recruitment evolution from the 1990s to the present is presented. The traditional and new models of attracting candidates, the content and directions of recruitment of the corresponding time interval are highlighted. The authors present results of a TAdviser study 2020 on a comparative analysis of the functionality of cloud services for managing candidates for recruiters, identify leaders in this field, summarize the analysis results of the market research of recruiters in Russia, Ukraine, Belarus and Kazakhstan by the company Potok. The work also considers some difficult aspects, the most time-consuming functions, motivating factors, the most popular KPIs, challenges for the profession development, key skills and promising areas for professional growth. Keywords: Candidate · Changes · Competencies · Management · Recruitment · Technologies
1 Introduction Hiring, recruitment and selection of personnel are involved in ensuring the situation when the risk of employ poorly trained specialists is reduced. In order to successfully reduce these risks, the company’s managers make decisions on attracting personnel taking into account objectivity, optimization orientation, formalization and quality. Recruitment refers to the process of attracting, selecting qualified specialists for vacant positions. The HR department, including a psychologist, deals with hiring issues in large companies. The management of small and medium-sized enterprises often does not see the need for HR specialists at all, considers the maintenance of such employees to be highly expensive and solves the task of attracting personnel with the help of recruitment agencies. Turning to history, it can be noted that until the 1960s, the processes of attracting personnel were mainly aimed at solving the current tasks of the organization [8]. The essence © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 10–16, 2022. https://doi.org/10.1007/978-3-030-94873-3_2
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of this approach was the redundancy of the labor market, when supply exceeded demand. There were no problems with closing a vacancy. Universities consistently produced young specialists in various fields of activity. In the late 1980s, the labor market underwent major changes. Recruiters focused not only on the current tasks of the company, but also focused on promising ones. Competition among professionals gradually grew, and the requirements for candidates were also tightened. In addition to professional knowledge and skills, the question arose about the development of business and organizational competencies. In the 1980s and 1990s, even fairly large and successful organizations had large turnover rates and were forced to constantly engage in recruitment. The reason for this is the fact that the management of these organizations considers staff turnover inevitable and tries to see positive aspects in it. In the process of constant departure of employees, enterprise managers even see some “savings” on wages. The field of personnel recruitment over the past thirty years has undergone rapid changes all over the world, including in Russia and in the CIS countries. The rapid introduction of digital technologies into all business processes has led to the automation of recruitment and the active use of digital platforms, data analysis and processing tools to search for potential candidates [6]. In the early 1990s, the first Internet portals appeared, websites where employers were able to publish their vacancies. Since the 2000s, there has been a rapid growth in the activity of specialized job search sites [11]. Aggregators have appeared that collect a lot of vacancies from employers’ websites, “work” portals and employment agencies. With their help, applicants were able to view vacancies both in their city and anywhere in the world. International aggregators provide an opportunity for candidates to upload their CVs to companies of any format and business sector in a few minutes [4]. Since the 2020s, the importance and scale of Internet communities has increased. An example is the professional network Linkedin. Advertising mailings by e-mail and social networks allow you to instantly place vacancies and get an appropriate response. Schematically, the process of recruitment evolution can be presented in the following form in Table 1. Table 1. The process of recruitment evolution Time period
Recruitment model
Content and directions of recruitment
Before the 1990s (before the emergence of the Internet)
A traditional recruitment model based on posting a vacancy and receiving feedback
Attracting staff through the publication of vacancy announcements in print media
1990–2000 (the emergence of Internet portals for employment)
Internet portals for employment appear and begin to work actively. Employers post job ads, and candidates publish their responses through online resources (continued)
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T. V. Suvalova et al. Table 1. (continued)
Time period
Recruitment model
Content and directions of recruitment
2000–2006 (the emergence of social networks)
A new recruitment model based on the search for candidates and the establishment of relationships, trusting relationships with a potential candidate
Interaction with candidates is moving to social networks, which open up opportunities for more open and convenient communication
2006–2010 (the appearance of aggregators)
2010-present (information technologies of data analysis and processing, artificial intelligence)
Aggregators using search technologies allow you to accumulate job ads from employment portals, websites of employers and recruiting companies in one place The introduction of artificial intelligence (chatbots, robots, virtual assistants) in the process of attracting staff. Automation of interviewing processes, video communication in a convenient format and time interval. Data analysis and processing technologies that reduce the labor intensity of attracting personnel. Targeted provision of relevant content and analysis of candidate behavior
Source: authors
Effective recruitment in modern conditions is the integration of artificial intelligence and digital technologies into the labor market expertise [7]. A distinctive feature of these processes is the establishment of long-term relationships and the search for the best professionals.
2 Methodology The purpose of this study is to identify trends and prospects for the development of the recruiters’ market and recruitment in general, to identify key skills, motivating factors and challenges for the professional growth of HR specialists in the field of personnel recruitment. In connection with the digitalization and automation of personnel recruitment processes, the TAdviser study in 2020 is of interest in order to compare the functionality of cloud services for managing candidates for recruiters – ATS (Applicant Tracking System).
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In 2019, the company Potok conducted a study of the recruiters’ market in Russia, Ukraine, Belarus and Kazakhstan using an Internet survey [5]. 650 respondents participated in the survey, mostly women, aged 21 to 40 years, working in recruitment agencies (4%), marketing and PR (5%), banking (7%), trading enterprises (11%), manufacturing companies (12%), IT companies (35%), Telecom (4%), as well as employees of Yandex, Leroy Merlin, AUCHAN, MTS, Sberbank, VTB, DHL, Beeline, Severstal. The full-time number of companies ranged from 50 to 5000 employees. The respondents held the positions of a recruitment specialist (32%), HR managers (27%), head of HR (14%), HRD and HRG (10%), HR BP (6%), recruitment consultant (3%) and Talent Acquisition (4%) with a salary of 30 and above 200 thousand rubles per month. The purpose of the survey was to identify the respondents’ opinions on changes and development trends of their professional skills and prospects for the recruitment sphere.
3 Results In 2020, TAdviser conducted a study of the recruitment systems market in order to compare the functionality of cloud services for managing candidates for recruiters-ATS (Applicant Tracking System). With the help of ats, you can automate the processes of collecting, analyzing and tracking the Necessary resumes [10]. The assessment of the development of recruiting candidate management services (ATS) used in Russia is presented in Table 2. The assessment was carried out according to thirty parameters, including: automation of basic functions, work with resumes, search for candidates in social networks, availability of mobile versions and integrations with other services and telephony, data uploading, an email client for correspondence with a candidate, security audit, saving the history and database of candidates, a career website, Kanban – a board for conducting candidates. Table 2. Assessment of the development of recruitment services for candidate management (ATS) used in Russia Cloud service
Rating on a 5-point scale (1-min, 5-max)
Huntflow
4,7
Potok
4,3
Friendwork
4
Talantix
3,2
CleverStaff
3
Source: authors
The leaders of cloud services were Huntflow, Potok and Friendwork, who scored the highest points. According to the study results, Talantix and CleverStaff were considered as advanced cloud services. Next, we analyzed results of the research of the recruiters’ market in Russia, Ukraine, Belarus and Kazakhstan conducted by the company Potok.
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According to respondents, the most difficult moments in the work are the lack of the right candidates (59.6%), meeting deadlines (10.6%), searching for information for professional development (8.7%), communicating with customers (8.4%), communicating with candidates (4.5%). Recruiters spend the most working time searching for candidates (30%), conducting interviews (24%), attracting candidates (21%), interacting with hiring managers (11%), maintaining a database (9%). The managers mention the compilation of reports for the sake of reports among the most useless function (17%). The motivating factors in the work are career growth opportunities (25%), customer gratitude (18%), salary and bonuses (18%), solving new promising tasks (17%), interesting projects (7%). The most popular KPIs for recruiters are the speed and quality of job closure, the percentage of candidates who successfully passed the probationary period and the duration of the candidate’s work after hiring. The main challenge for the profession development, respondents called mass automation and robotization of recruitment, the introduction of deep HR analytics. Among basic skills for recruiters, respondents mention communications and negotiations (30%), ability to listen and hear (21%), data analysis (15%), strategic thinking (9%). The respondents consider it necessary for their own development and career growth to develop the analytical approach to work (27%), development of creative thinking (11%), IT skills (15%). A third of the respondents (30%) can freely communicate (read, correspond) with native English speakers. The rest (70%) can read professional literature and communicate in English. The generalized results of the conducted research of the recruiters’ market in Russia, Ukraine, Belarus and Kazakhstan are presented in Table 3. Table 3. Results of the research of the recruiters ‘ market in Russia and the CIS Questions
Respondents’ answers
The most difficult moments in the work
Lack of the right candidates (59.6%), Compliance with deadlines (10.6%), Search for information for professional development (8.7%)
The most time-consuming functions
Search for candidates (30%), Conducting interviews (24%), Attracting candidates (21%)
Motivating factors
Career growth opportunities (25%), Customer gratitude, salary and bonuses (18%), Solving new promising tasks (17%)
Basic skills for recruiters
Communication and negotiation (30%), Listening skills (21%), Data analysis (15%), Strategic thinking (9%) (continued)
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Table 3. (continued) Questions
Respondents’ answers
Skills that need to be developed in the future
Analytical approach to work (27%), Creative thinking (11%), IT competencies (15%)
Source: authors
4 Discussion The study showed a change in the recruitment paradigm from the traditional model based on placing a vacancy and receiving feedback towards the concept of establishing feedback and friendly relations. Thanks to social networks and online communities, recruitment specialists can establish contacts with thousands of potential candidates [9]. The connection model will become the most effective tool in the recruitment market in the future. It allows to identify the activity, passivity, leadership qualities of the candidate, his readiness for career growth, processing, to identify risk zones and potential opportunities [2]. The transition to automation of recruitment processes, the introduction of artificial intelligence and cloud services for managing candidates is becoming particularly relevant. The conducted review of the recruiting services development revealed leaders such as Huntflow, Potok and Friendwork companies which scored the highest ratings. The review of the research results of the recruiters’ market in Russia and the CIS countries showed that the traditional search for candidates, conducting interviews and maintaining a database take the greatest amount of working time. That is why many companies are switching to automated software products, implementing cloud services and chatbots [3]. The motivating factors for the most recruitment specialists are career growth and positive feedback from customers. Only after these factors, satisfaction with wages and bonuses follows. The management encourages recruiters primarily by the speed of closing a vacancy and the duration of work of a new candidate after hiring in the company. The skills of developing an analytical approach to work, developing creative thinking, and IT competence are becoming popular among recruiters. Most specialists speak English fluently.
5 Conclusion In conclusion, we consider the actual issue of internal and external recruiting. The traditional advantages of promoting the company’s own staff are knowledge of business processes, understanding of the specific features of the corporate culture, a short adaptation period, saving on hiring functions. External candidates, in turn, allow can bring new methods of work, share the work experience. Attracting recruiting companies to search for new employees is expensive, but it allows you to select specialists of any level in accordance with the tasks set in a short time [1]. In the conditions of remote employment, a number of companies attract professionals from the CIS countries, whose work is cheaper in terms of cost than the same functionality of the capital’s specialists.
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References 1. Ru, H.H.: The main trends of the labor market in Russia (2018). https://hh.ru/article/22393. Accessed 21 Mar 2021 2. Kashtanova, E.V., Ashurbekov, R.A., Maslennikov, I.A.: Russian labour market outlook. IOP Conf. Ser. Mater. Sci. Eng. 753, 082026 (2020). https://doi.org/10.1088/1757-899X/753/8/ 082026 3. Konovalova, V.G., Laas, N.I., Svistunov, V.M., Starun, N.V.: The role of social work in improving of the quality of employees’ life. In: Mantulenko, V. (ed.) Proceedings of the International Scientific Conference “Global Challenges and Prospects of the Modern Economic Development”. The European Proceedings of Social & Behavioural Sciences, vol. 57, pp. 708–719. Future Academy, London (2019) 4. Mitrofanova, E.A., Konovalova, V.G., Mitrofanova, A.E.: Opportunities, problems and limitations of digital transformation of HR management. In: Mantulenko, V. (ed.) Proceedings of the International Scientific Conference “Global Challenges and Prospects of the Modern Economic Development”. The European Proceedings of Social & Behavioural Sciences, vol. 57, pp. 1717–172. Future Academy, London (2019) 5. Potok: Market research of recruiters and HR specialists in 2018–2019 (2018). http://checkl ist.potok.io/study2018. Accessed 29 Mar 2021 6. PWC: The future of the labor market The confrontation of trends that will shape the working environment in 2030 (2018). https://www.pwc.ru/ru/publications/workforce-of-the-fut ure-rus.pdf. Accessed 24 Mar 2021 7. Suvalova, T.V., Troitskiy, A.V., Zhaxybayeva, G.S.: Evolution of the labor market: challenges of the millennial generation. In: Ashmarina, S.I., Mantulenko, V.V. (eds.) IPM 2020. LNNS, vol. 161, pp. 77–84. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-60926-9_11 8. Sviridova, S.V., Kablashova, I.V., Shkarupeta, E.V., Khmeleva, G.A.: Imperative of human capital management transformation in the development of economic systems. In: Mantulenko, V. (ed.) Proceedings of the International Scientific Conference “Global Challenges and Prospects of the Modern Economic Development”. The European Proceedings of Social & Behavioural Sciences, vol. 57, pp. 1355–1362. Future Academy, London (2019) 9. Svistunov, V.M., Kuzina, G.P., Lobachev, V.V.: Inevitability of company’s corporate culture transformation under conditions of new management technologies. In: Ashmarina, S.I., Mantulenko, V.V., Vochozka, M. (eds.) Engineering Economics Week 2020. LNNS, vol. 139, pp. 613–623. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-53277-2_73 10. TAdviser: Market research of recruiting systems: Functionality of cloud ATS in Russia. tadviser.ru/index.php/Ctat:Iccledovanie_pynka_pekpyt ingovyx_cictem:_fynkcionalnoct_oblaqnyx_ATS_v_Poccii. Accessed 28 Mar 2021 11. TopPersonal: Labor market trends in 2020 (2019). https://www.top-personal.ru/newsissue. html?29238. Accessed 29 Mar 2021
The Development of Tools for Improving the Effectiveness of Regional Programs Planning O. M. Pisareva1(B) , A. I. Denisova1 , and I. K. Dzhioeva2 1 State University of Management, Moscow, Russia [email protected], [email protected] 2 South Ossetian State University Named After A.A. Tibilov, Tskhinvale, Georgia [email protected]
Abstract. The purpose of this study is to assess the current state of tools to support the development and implementation of programs regional development, as well as identification of key tasks to improve their effectiveness and adequate ways to solve them. The authors study the current state of infrastructure and analytical support of the strategic planning system especially at the regional level. The main components of the system were considered software, hardware, and information and communication components of the digital infrastructure, such as electronic interaction, statistical reporting and public procurement systems. Based on the identified problem areas, the main directions for improving the effectiveness of tools for planning and implementing state programs were identified. Each of these directions allowed the authors to formulate a number of requirements and proposals for improving the efficiency of development and maintenance of regional development programs. The authors made conclusions about the presence of a significant heterogeneity in the availability of tools for the development and maintenance of regional development programs, as well as a noticeable difference in the availability of information and analytical support for the activities of regional governments. Keywords: Digital platform · Public administration · Regional state programs
1 Introduction Currently, state programs are the main instruments of socio-economic development of the country. Balanced development programs developed on the basis of Federal and regional goal-setting documents. In addition, they are formed on the basis of specific socio-economic, demographic, historical, ecological and natural-climatic conditions of a particular region, as well as a set of problems that have developed here. The goal of each program is to solve a set of specific tasks aimed at solving these problems. This approach is the key to the effective development of each constituent entity of the Federation. Decree of the President of the Russian Federation of 07.05.2018 № 204 [2] stipulates the introduction of digital technologies in the economy and social sphere. One of the main directions of state policy is digital transformation of public government, digital support © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 17–24, 2022. https://doi.org/10.1007/978-3-030-94873-3_3
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for strategic planning, particularly the implementation of state development programs. This work is carried out within the framework of the project “Formation of a digital platform for interaction in the field of strategic management in order to coordinate the actions of participants in strategic planning at all levels of government in achieving strategic priorities”. It is included in the federal project “Digital Public Administration” of the national project “Digital Economy of the Russian Federation” [15]. In this regard, the purpose of our study was to analyze the current state of tools to support the development and implementation of regional development programs. The result of this work is the identification of critical areas of information and analytical support of the strategic planning system at the level of the regions of the Russian Federation, the proposal of measures to eliminate the existing problems, as well as adequate ways to solve them. Improving the set of tools to support the development and implementation of regional development programs will contribute to the efficiency and effectiveness of achieving development goals for both individual regions of the country and the Russian Federation as a whole.
2 Methodology A lot of studies are devoted to the issues of the mechanism of strategic planning; state, development and application of mathematical and computer tools for substantiating and analyzing forecasts; creation of methods for the formation and selection of planning decisions, including at the state and regional [9, 10, 12, 13, 18, 19]. Software, hardware, and information and communication components of the digital infrastructure are used to implement a set of strategic planning tasks at various levels of public administration. This is provided through broadband and high-speed internet channels to all participants in the strategizing process with distributed access to cloud storage and unified services using a set of information security tools. At the federal level, the basis of information and communication interaction is the Federal information system for strategic planning (“FIS SP”) as part of the State automated information system “Governance” of the Russian Federation (gasu.gov.ru). According to the information provided by the Ministry of Economic Development of the Russian Federation [14], this system has already involved more than 24 thousand participants, and the annual cost of its maintenance at all levels of government is estimated by experts to be about 5 billion rubles [14]. To date, more than 450 thousand different indicators have been loaded in the FIS SP. The main source of consolidated statistical information is the mechanism for collecting and processing statistical reports of the Federal state statistics service of the Russian Federation, while an interactive interface with the EMISS database provides access to indicators. According to the official website [3], EMISS provides its users with access to more than 7,100 units of statistical indicators. Electronic interaction between departments involved in the strategic planning system should be carried out using the national system of interdepartmental electronic interaction (“SMEV”, according to the Decree of the Government of the Russian Federation of 08.09.2010 № 697 [1]), which provides a system backbone of information interaction organized on the basis of a service-oriented architecture. Also in full compliance with the plan for implementing the provisions of the Federal law of the Russian federation of 28.06.2014 № 172-FZ [8] tools are being developed and are already functioning to
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support an open platform for public discussion of strategic planning documents, the register of strategic planning documents has been created on the basis of the FIS SP platform and has been successfully used for several years. Additionally, at the regional level, the governments of the subjects of the Russian Federation use various local tools: regional and municipal information systems, registers, software systems, data processing centers, etc. The execution of state programs is closely linked to the conclusion of state contracts and the operation of the public procurement system. The portal is currently functioning reliably zakupki.gov.ru where documents on purchases regulated by Federal law of the Russian Federation of 05.04.2013 № 44-FZ and Federal law of the Russian Federation of 18.07.2011 № 223-FZ [6, 7] are publicly available. In addition to this portal, a large number of non-state platforms have been created and are operating (for example, “Kontur”, “Rostender”, “Synapse”), which perform the functions of aggregators of both state and commercial tenders, successfully organizing the interaction of contractors as part of the implementation of activities of strategic development programs for regions. The following set of heterogeneous sources of information content for the strategic planning information system is proposed (Fig. 1). The analysis of the current state of infrastructure and analytical support for the strategic planning system allows drawing conclusions about the main problem areas of the combination of these information and analytical systems [11, 16, 17].
Regional information and analytical systems
State information system
Departmental information systems
Official statistics bodies of the Russian Federation Municipal information systems
MEDIA
Social network
Electronic interaction with other systems Citizens ' appeals
Monitoring sensor system
Public opinion
Expert judgments Survey s
Strategic planning information system Fig. 1. Information content of the strategic planning system. (Source: authors)
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The following characteristic critical areas are found: – problems with measuring development goals and indicators; – insufficient support for monitoring and control systems for the development process, in particular in the field of organizing the collection and consolidation of statistical information, frequent lack of coherence of indicators; – functional limitations of the systems of strategic planning and forecasting, which particularly manifests itself in the limitations of their “intellectual” component, as evidenced primarily by the composition of their tasks that do not require a large and intellectually powerful set of special methods of mathematical modeling and big data analytics has already been successfully proven, for example, in the intellectualanalytical systems for commercial use; – complexity of integration and integration of regional information systems, which, in addition to technical problems, is caused not least by a significant discrepancy in the legal support of their activities, as well as significant differences in the positions of individual regional and industry departments, etc. In this regard, the main directions for improving the effectiveness of tools for developing and implementing state programs can be called: – development of tools for justifying program goals, their structures and parameters, and implementation plans based on and using a wide range of mathematical and computer modeling tools that take into account the full range of emerging risks of their development and maintenance; – improving the quality of communication between program performers at all levels; – monitoring and control of the effectiveness of program implementation.
3 Results Each of these directions allowed the authors to formulate requirements and proposals for improving the efficiency of development and maintenance of regional development programs and their subsystems. In particular, activities in the first direction involve the design and development of integrated modeling systems in the digital regional ecosystem of information acquisition and processing, which should have the following list of characteristics. 1. The ability to work with highly integrated information resources, including the regulatory framework; statistical reporting; data on the current state and implementation of programs and projects; operational data received from direct collection sensors; information about the external environment of functioning – data from the media, sociological observations, expert information. The effectiveness of this activity requires ensuring the storage of necessary information and its prompt updating, including using electronic services of interdepartmental interaction; ensuring the compatibility of all elements of the system, as well as data of heterogeneous nature
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and diverse structure coming from different sources; organizing work with the metadata of the information base, ensuring their semantic and ontological interrelation and compatibility. 2. Availability of a specialized environment for modeling, analysis and evaluation, which provides for the possibility of: – operational staging (forming a range of development scenarios and conducting scenario experiments on them); – quantitative assessment of the optimal values of the parameters of planning tasks, as well as the permissible boundaries of their stability in cases of revision of the target and resource conditions for the implementation of programs and projects, as well as in the presence of force majeure circumstances during the planning and implementation of programs, projects, activities; – usage a bank of customized models to generate and evaluate options for planning decisions based on calculation data sets with a suitable structure; – integration of model complexes with the results of expert information processing, including using methods for analyzing unstructured and weakly structured information. 3. The ability of a comprehensive assessment of the impact of uncertainty on the resulting, resource and time characteristics of programs, which includes: maintaining and updating risk registers for the implementation of programs and projects; identifying and identifying risk events, assessing their probability and consequences; the ability to quantify the impact of risk events on the implementation of programs and projects during scenario studies. 4. Software for interpreting modeling results, including tools for assessing the stability of the obtained planned values for project/program parameters, the ability to retrospectively analyze the retrospective of generations of development plans, a description of the maps of control variables for generating scenarios and their impact on the implementation of programs and projects. 5. Automation software for generating and presenting standard (standard) and original reports in the field of research, which includes sets of: – infographics tools with visualization settings: tables, graphs, charts, maps, dashboards, etc.; – tools for uploading interim and final reports in formats compatible with the requirements of standard office software packages; – tools for organizing repository storage of generations of created reports. 6. Software support and update tools for solving a set of strategic planning tasks, including user identification and authentication; maintaining a user authority profile; maintaining a tree of model versions, intermediate parameters, data sets, and reports; saving and restoring computing sessions; user reference support with a user-friendly interface; information security modules, etc.
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4 Discussion In the second direction of increase of efficiency of development and support of regional development programs the authors highlight the following points [4, 5, 20]: – careful analysis and use of information about the study coming from the feedback channel; – public oversight of contracting procedures as part of measures to implement decisions in the strategic planning system; – stricter division and delegation of responsibilities at the stages of preparation and awarding of government contracts; – clear separation and separate accounting of technical and financial proposals related to contracting in the framework of ongoing activities of regional programs and projects; – maintaining a national database of errors and violations committed in the procedures provided for the development of strategic planning documents and their implementation, identified, inter alia, as a result of the audit of the public procurement system; – ensuring interoperability between contracting systems and other government databases. In the last, third direction, the following proposals are proposed to improve the monitoring and control system, including in terms of providing up-to-date statistical information: – justification and development of regulatory regulations that allow you to organize the receipt of primary information from the system’s contractors in a timely manner; – usage of secure channels for obtaining primary information from the system’s counterparties; – usage of hardware and software capabilities for storing and, if necessary, digitizing large amounts of data; – development and using of a distributed database; – active promotion of the concept of using an ontological model of the knowledge base that stores semantic links between information sources, calculated or primary targets, metadata, regulations, etc.
5 Conclusion Thus, we can draw conclusions about the presence of an obvious heterogeneity in the availability of tools for the development and maintenance of regional development programs. It can be stated that there is a significant difference in the availability of information and analytical support for the activities of administrations in different regions. The same conclusion can be drawn about related departments and unitary enterprises within the framework of a unified information system of regional management. In addition, we note the importance of interaction between participants in strategic planning at all levels and in all areas of their activities. It is necessary to consider a set of information
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and analytical tools for strategic planning as the basis for increasing the effectiveness of participants in the development and implementation of projects and regional development programs. This requires the harmonious integration of relevant software into information systems at every level of public administration. Additionally, the authors formulated priority vectors for the development of the digital environment for strategic planning at the regional level. Among the most important areas we can highlight: – carrying out comprehensive work to harmonize and agree on regulatory legal acts in the field of creation and dissemination of digital management technologies and the corresponding infrastructure support; – development of ecosystems of scientific developments and innovations in the field of information and communication technologies (digital incubators, accelerators, funding programs, etc.); – establishment of electronic interaction of government bodies with public and commercial organizations in the process of developing regional development programs; – supporting and motivating the distribution of open-source software; – ensuring information security measures; – development in society of confidence in digital management technologies and the provision of public services, training in working with electronic services. In conclusion, we note that at the present time, at the level of the government of the Russian Federation, a number of measures have already been planned to increase the efficiency of the decisions taken in the field of regional planning. They are reported to be implemented within the framework of the federal project “Digital Public Administration” and the national project “Digital Economy of the Russian Federation”. Acknowledgments. The reported study was funded by the Russian Fund for Fundamental Research (project № 19-310-90022).
References 1. Decree of the Government of the Russian Federation of 08.09.2010 № 697 (ed. of 04.09.2020) On a unified system of interdepartmental electronic interaction (2020). https://legalacts.ru/ doc/postanovlenie-pravitelstva-rf-ot-08092010-n-697/. Accessed 16 Dec 2020 2. Decree of the President of the Russian Federation of 07.05.2018 № 204 On national goals and strategic development objectives of the Russian Federation for the period up to 2024 (2020). http://publication.pravo.gov.ru/Document/View/0001201805070038. Accessed 20 Dec 2020 3. EMISS State Statistics: The list of indicators (2020). https://www.fedstat.ru/indicators/. Accessed 03 Dec 2020 4. European Commission: E-library of public procurement good practices (2019). https://ec.eur opa.eu/regional_policy/en/policy/how/improving-investment/public-procurement/e-library. Accessed 16 Dec 2020 5. European Commission: Public procurement indicators 2017 (2017). https://ec.europa.eu/doc sroom/documents/38003. Accessed 20 Nov 2020
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6. Federal law of the Russian Federation of 05.04.2013 № 44-FZ (ed. of 21.07.2014) On the contract system in the field of procurement of goods, works, and services for state and municipal needs (2014). http://www.consultant.ru/document/cons_doc_LAW_144624/. Accessed 17 Dec 2020 7. Federal law of the Russian Federation of 18.07.2011 № 223-FZ (ed. of 01.11.2019) On purchases of goods, works, and services by certain types of legal entities (2019). http://www. consultant.ru/document/cons_doc_LAW_116964/. Accessed 16 Dec 2020 8. Federal law of the Russian Federation of 28.06.2014 № 172-FZ (ed. of 31.07.2020) “On strategic planning in the Russian Federation (2020). http://www.consultant.ru/document/ cons_doc_LAW_164841/. Accessed 16 Dec 2020 9. Glaz’ev, S., Yakovets, Y.: International Experience in Government Forecasting, Strategic Planning and Programming. SUM, Moscow (2008) 10. Glazyev, S.: On the creation of systems for strategic planning and management of scientific and technical development. Innovations 2(256), 14–23 (2020) 11. Kamalov, E.K.: The concept of reference models of automated planning and budgeting systems. Bus. Inform. 2(36), 24–31 (2016) 12. Kleiner, G.B., Rybachuk, M.A.: System balance of the Russian economy: regional perspective. Econ. Reg. 12(2), 309–323 (2019) 13. Makarov, V.L., Bakhtizin, A.R.: Social Modeling – New Computer Breakthrough (AgentBased Models). Ekonomika, Moscow (2013) 14. Ministry of Economic Development of the Russian Federation: Digital strategic planning (2020). https://www.economy.gov.ru/material/directions/strateg_planirovanie/cifrovoe_ stratplanirovanie/. Accessed 03 Dec 2020 15. National program “Digital Economy of the Russian Federation” (approved by the Presidium of the Council under the President of the Russian Federation for Strategic Development and National Projects, minutes of December 24, 2018, No. 16) 16. Pisareva, O.M., Denisova, A.I.: Assessment of the analytical potential of automated systems of public administration for the formation of a single digital platform for public administration. In: Terelyansky, P. (ed.) Proceedings of the 2nd International Scientific Forum, Step into the Future: Artificial Intelligence and the Digital Economy – 2018, vol. 4, pp. 394–403. State University of Management, Moscow (2018) 17. Pisareva, O.M., Denisova, A.I.: Empirical specification of information systems of public administration: analysis of the potential of digital transformation of FIS SP RF. In: Terelyansky, P.V., Malkarova, S.M. (eds.) Proceedings of the III International scientific Forum: Step into the Future: Artificial Intelligence and Digital Economy: Smart Nations: Economy of Digital Equality, vol. 3, pp. 262–273. State University of Management, Moscow (2020) 18. Pollitt, C., Bouckaert, G.: Public Management Reform. A Comparative Analysis - NPM, Governance and the Neo-Weberian State, 3d expanded ed. Oxford University Press, Oxford (2011) 19. Seliverstov, V.E.: Strategic planning and strategic miscounts: Russian realia and trends. Reg. Res. Russ. 4, 6–46 (2016) 20. World Bank Group: Benchmarking public procurement (2017). http://documents1.worldb ank.org/curated/en/121001523554026106/Benchmarking-Public-Procurement-2017-Assess ing-Public-Procurement-Regulatory-Systems-in-180-Economies.pdf. Accessed 06 Dec 2020
Formation of Profiles of Digital Development of the Modern World Countries L. A. Konstantinova and I. V. Kramarenko(B) State University of Management, Moscow, Russia [email protected]
Abstract. The contribution considers the problem of assessing the level of digital development of the countries of the modern world using international ICT ratings. The purpose of the study is to form country profiles of digital development, reflecting the level of readiness of countries for the digitalization of the economy and the degree of their digital globalization. The task is to conduct a comprehensive comparative analysis of the level of digitalization of countries and develop their classification based on the most common digital development assessment indices. Based on the analysis of the formed primary database, the conclusion is made about the ambiguity of this assessment for the position of a particular country in the world rankings. The question of the methodology for measuring these indices is considered: their brief characteristics and calculation methods are given. With the help of correlation analysis, the justification for the presence of an indirect connection between them is given. Based on the indices and their components, a multidimensional classification of countries using cluster analysis methods was carried out. The main component method is used to identify the main component, the value of which is used for ranking countries and cross-country comparisons. A system of cumulative assessment of the country’s positioning in the world digitalization rankings was developed. The IBM SPSS Statistics PPP is used for data processing. Keywords: Classification of countries · Digital development profile · Digitalization · ICT Development Index · Index structure · Rating assessment
1 Introduction The realities of the modern world dictate the need to introduce digital technologies in all spheres of activity. The use of the capabilities of IT technologies is considered as a regulator of the paces of acceleration of the innovative economy [10]. To make decisions about the need for measures to increase the competitive advantages of digitalization of the economy, it is necessary to have an assessment of the level of digital development of the country in the global world. In this regard, an important task of the research is the formation of profiles of digital development of the countries of the modern world. However, the solution of this problem is complicated by the fact that today there are no reliable, comparable data in the field of digitalization, and the analysis of the level of © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 25–32, 2022. https://doi.org/10.1007/978-3-030-94873-3_4
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development and implementation of modern digital technologies is carried out using a variety of indices and world ratings [1, 9–11, 16, 18]. The study presents the most common ratings based on the following indices: NRI (Networked Readiness Index), GCI_H (Global Connectivity Index, Huawei), IMD (Global Competitiveness Index), GKI (Knowledge Economy Index), GCI (Global Competitiveness Index), HDI (Human Development Index). The system of international indicators of digital development of countries is much broader. For example, a cluster analysis of European countries was carried out based on the DESI index [16]. The choice of the above-mentioned indicators is due to the presence of Russia in the list of ranked countries and the possibility of open access to the values of the indices and indicators that make them up. Each of the indices is based on sub-indices that combine their own set of indicators that characterize the level of digitalization in the country. 1. The Networked Readiness Index (NRI) is an assessment of a country’s ability to use information and communication technologies (ICT) for socio-economic development; it is measured on an interval scale from 0–10 and consists of four indicators (Technology, People, Governance, Impact). The index value is defined as the arithmetical mean. 2. The Global Connectivity Index (GCI, Huawei) is an assessment of the progress in the development of digital technologies of countries that account for 95% of global GDP; it is measured on an interval scale from 0–100 and consists of four indicators (Supply, Demand, Experience, Potential). Each indicator within a category is measured on a scale from 1 to 10. The index value is defined as the arithmeticalmean. 3. The Global Competitiveness Index (IMD) is an assessment of a country’s ability to create and maintain an environment that ensures the growth of added value of enterprises and the well-being of citizens; it is measured on an interval scale from 0–100 and consists of three indicators (Knowledge, Technology, Future Readiness). The index value is defined as a weighted average. 4. Knowledge Economy Index GKI is the assessment of the level of development of the economy based on knowledge; measured on an interval scale from 0–100 and consists of seven indicators (Pre-University Education; Technical and Vocational Education and Training; Higher Education; Research, Development and Innovation; Information and Communications Technology; Economy; General Enabling Environment). The index value is defined as a weighted average. 5. Global Competitiveness Index, GCI is the assessment of the ability of the country to ensure the welfare of citizens, taking into account the effective use of resources; is measured on an interval scale from 0–100 and consists of 12 indicators (Institutions, Infrastructure, ICT adoption, Macroeconomic stability, Health, Skills, Product market, Labour market, Financial system, Market size, Business dynamism and Innovation capability). The index value is defined as the arithmetical mean. 6. Human Development Index, HDI is the assessment of the average value of achievements in three basic dimensions of human development: health and longevity, knowledge and decent standard of living; it is measured on an interval scale from 0–1, and consists of seven indicators (Life expectance of birth, Expected years of schooling, Mean years of schooling, GDP per capita in 2017 price, Life expectance index,
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Income Index, Education Index). The partial indices for each category are calculated by subtracting the minimum value of the criterion from the actual value and then dividing by the difference between the maximum and minimum values of the criterion. The specific rating of a country by the level of digitalization of the economy is determined by a number of indicators included in the evaluation system and the methodology of their aggregation. A comparison of the ratings of individual countries by the values of the digital economy development indices for 2019 revealed the ambiguity of this assessment. Thus, according to the IMD index, Russia ranks 38th, according to Huawei GCI-41st, according to GCI-43rd, according to GKI-45th, according to NRI48th, according to HDI-52nd. The purpose of this study is to provide an empirically based profiling of countries by the level of digital development. To achieve this goal, the analysis of international indices and ratings, the classification of countries based on their integration is carried out.
2 Methodology To identify the country’s position on the level of development of the digital economy and make recommendations on increasing competitive advantages, various research groups offer tools for comparative analysis of the most important indicators of digital development [2, 3, 9, 11, 15]. Huawei is an authoritative expert in the field of digital development, which evaluates the level of digitalization of the economies of countries that account for 95% of world GDP, according to the Global connectivity Index (GCI_H) [6]. The analysis of individual groups of index indicators showed that the level of development of information and communication technologies (ICT) infrastructure, the activity of using ICT and the development of digital services and technologies evaluate all these indices. The impact of ICT on the economy is analyzed by almost all indices, except GCI and HDI. The assessment of the level of innovations is included only in two indices: GCI and GKI. Indicators of the educational level of the population are absent in the GCI index, and ICT skills are absent in the IMD index. Thus, for a comprehensive assessment of the degree of development of the digital economy in the country, a comprehensive account of all aspects of digitalization is necessary. The procedure for determining the country’s position on the key international indices of the digital economy and the movement towards the information society, proposed in this study, includes a number of stages: – – – – –
collection of data from open international sources; data quality assessment and its structuring; normalization of the scales by which the indicators are measured; definition of the categories of the constituent indexes; establishing the presence/absence of an indirect relationship between the indices (correlation analysis); – classification of countries by cluster analysis methods; – variance analysis of the level of digital achievements of the selected clusters;
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– determination of the indicator of digital development of countries by the method of main components.
3 Results Due to the limited volume of the article, it is not possible to cite all the results of the study. Therefore, we will limit ourselves to the most important ones, from our point of view. For the analysis, data was collected on six indices (NRI, GCI_H, IMD, GKI, GCI, HDI) and indicators, on the basis of which they were calculated, and subsequently compiled an empirical database. When forming an empirical database of indicators and their components (sub-indexes), there are many problems associated with consolidating data into a single resource. Let’s list the main ones. 1. The lack of a single universal database of the indexes themselves and their components. For example, the source mentions the World Digital Competitiveness Index (WDCI, IMD World Digital Competitiveness Index), but there is no link to the official website where you can see the values of this index and differences from the IMD index [4]. 2. The lack of a single universal codification of countries. When consolidating the data, a reference book with the names of countries and ISO2, ISO3 codes was used. 3. The lack of a single universal abbreviation of indices, which leads to confusion when the same abbreviation can have not only different indices in content (GCI – “Global Connectivity Index” and “Global Competitiveness Index”), but also related to different subject areas, for example, GKI – “Glucose-ketone Index” and “Knowledge Economy Index”. 4. Problems of importing data from different sources (Excel, pdf, html). For example, when importing data, the names of countries are imported with invisible hyphenation signs “Switzerland”, “United Arab Emirates”, unreadable characters at the beginning of the line. Import problems occur mainly when importing data from the Internet. When accessing centralized data stores [8], there is no data losses (Table 1). 5. Data consolidation problems due to different data formats (integral and fractional separators; different designation of missing values (“-”; “N/A”, “space”)). 6. Disparity of Data (Measurement of Indices in Different Measurement Systems and Different Measurement Frequency). 7. The initial indicators that make up the indicators (sub-indexes) are a set of indicators from different sources: official statistics and unofficial, which is based on surveys and expert assessments and is a closed assessment. These problems may affect the quality of the generated database. Therefore, when forming an empirical database, indexes with verifiable data with the maximum intersection of countries by sub-indices were selected for the study (Table 1). All data sets (indexes, sub-indexes) are brought to a comparable form (standardized). The normalized estimates are calculated by centering the indicator value (subtracting the average value from the actual one) and normalizing (dividing) the resulting difference relative to the mean square deviation.
Digital Development of the Modern World Countries
29
Table 1. The volume of the generated empirical database Index
The dimension of the data table at the input
The dimension of the data table after merging in Excel
NRI
121
41
GCI, Huawei
Percentage of data loss (mismatch of countries, missing values) 3%
79
10%
IMD
63
5%
GKI
134
–
HDI
191
–
GCI
141
–
Source: authors
In order to find out the presence/absence of a correlation relationship between the indices, a matrix of estimates of the pair correlation coefficients was calculated. Based on the analysis of this matrix, the following conclusions are made: there is a high level of correlation (more than 0.9) for all indices, except for IMD, for which the values of the correlation coefficients were more than 0.8. This indicates a high level of dependence between the indicators of these indices and will allow to further determine the latent factors that explain the total variation of the indices. We will generalize the above-mentioned ICT indices by subjecting them to cluster analysis, i.e. we will classify countries by homogeneous (by composition) groups (classes, clusters). Hierarchical methods (distant neighbor, intergroup relations) and the iterative k-average method are chosen as clustering methods. The number of clusters (groups of countries) is determined experimentally: by sequentially dividing into a different number of clusters (k = 2, 3, 4) and comparing the quality of the resulting partitions. SPSS PPP is used for cluster analysis. The results of cluster analysis using hierarchical agglomerative procedures such as distant neighbor, intergroup relations and Euclidean distance as a distance metric are identical when dividing the population of countries into two clusters (let’s call them “Leaders”, “Developing”) and differ when divided into three clusters. When combining clusters using the method of intergroup relations, a number of countries are distinguished from the “Leaders” cluster, which occupy an intermediate position in terms of the value of indicators between the “Leaders” and “Developing” clusters (let’s call it “Leaders of unstable development”). When combining by the method of a distant neighbor, countries that are superior in terms of indicators to the countries of this cluster are selected from the “Leaders” cluster. Comparing the composition of the countries of the new cluster to various ratings, it is noted that these are digitally highly developed countries that consistently occupy leading positions (Denmark, Finland, Luxembourg, the Netherlands, Singapore, Sweden, Switzerland) [2]. Let’s call this cluster “Leaders of Sustainable Development”. The countries of the “Leaders” cluster are developed countries with a significant share of investments in high-tech products. The “Developing” cluster includes countries with a low level of digitalization. The cluster “Leaders of unstable development” was formed
30
L. A. Konstantinova and I. V. Kramarenko
by the leading countries with lower indicators of digital development compared to the “Leaders”. To check the stability of the clustering results, the classification was carried out using the iterative k-average method. When the countries were united into three clusters, the groups “Leaders”, “Leaders of unstable development” and “Developing” were formed. The group “Leaders of unstable development” is identical in composition to a similar group when clustering using the method of intergroup relations, with the exception of Belgium and France, which are included in the group “Leaders”, as well as Saudi Arabia, which belongs to the group “Developing” using the method of intergroup relations. When using the k-average clustering procedure with combining into four clusters, the groups “Leaders of sustainable development”, “Leaders”, “Leaders of unstable development” and “Developing” were obtained. The countries of the cluster “Leaders of sustainable development” coincided with the countries of a similar cluster identified using the far neighbor method. Thus, it is advisable to classify countries into four clusters using the k-average method, which is confirmed by the results of checking the quality of partitions using variance analysis: this option has the smallest amount of intra-class variances (s2 = 313.724). Thus, the countries are grouped into four clusters: “Leaders of sustainable development” - Denmark, Finland, Luxembourg, the Netherlands, Singapore, Sweden, Switzerland; “Leaders” - Australia, Austria, Belgium, Canada, France, Germany, Ireland, Japan, South Korea, New Zealand, the United Arab Emirates, the United Kingdom; “Leaders of unstable development” - China, Greece, Estonia, Italy, Lithuania, Portugal, Saudi Arabia, Slovenia, Spain; “Developing” - Brazil, Colombia, Indonesia, Jordan, Kazakhstan, Mexico, Peru, the Philippines, Russia, South Africa, Thailand, Turkey, Ukraine. The difference in the level of digital achievements between clusters is confirmed when testing hypotheses about the equality of mathematical expectations of features in clusters. The hypotheses are rejected. Let’s move on to building an indicator of the digital development of countries based on the indices NRI, GCI_H, IMD, GKI, GCI, HDI. Let’s determine the latent factors, the influence of which explains the total variation of features (indices). To do this, we implement the method of main components. Analyzing its results and the matrix of component loads on the initial features, it was noted that the contribution of the first component to the total variance of the features is 91.5% and it is in direct linear relation with all the features (load values are more than 0.9). This allows to use its value as an integral indicator of digitalization, which absorbed all the properties of the six above-mentioned indices. Ranking countries using this indicator allows to express hidden latent relationships between indicators and give a generalized assessment of the country’s position.
4 Discussion The presented research is based on scientific works related to the definition of the digital divide and the factors of digital development of countries [10, 14]. The indicator of the level of digital development is a set of international indicators (ICT indices, ratings) that reflect the state of digitalization and informatization of the world countries. The analysis
Digital Development of the Modern World Countries
31
of individual digital development indices, such as NRI, GCI, HDI, IMD, is carried out in studies [4, 9–11], the DESI index in [4, 16], the DiGitX index in [1]. In applied studies [1, 17], the authors describe new methodological approaches to the construction of integral indices. Countries are segmented using the methods of cluster and factor analysis [12, 16]. Factor regression models are built [7, 20]. In the works [3, 7, 9, 11, 15, 18] the factors that can have a greater impact on the level of digital development of countries are studied and justified. At the same time, studies are carried out on the example of panel or cross-sectional data from regions of one country [5, 20], countries of the European Union [13, 19] and in an international context [1, 4, 9–11, 16, 18]. The conducted research is based on the formed empirical database of cross-sectional data for 2019 for six indices (NRI, GCI_H, IMD, GKI, GCI, HDI). These indices are used separately to determine the level of digital development of countries [4, 6, 8, 15]. Such a composition of indices was not used previously as a collective assessment of digitalization.
5 Conclusion Measuring the level of digitalization of countries is relevant from the point of view of determining the growth opportunities of the competitive advantages of the digital development of the economy. At the same time, various international ratings serve as a source of information about the results achieved and the potential of individual countries. However, a comparative analysis of the results of assessing the level of digitalization development using various methods indicates the ambiguity of this assessment and the difference in the essence of the indicators. To level this situation and more fully assess the effectiveness of impacts on the digitalization process, it is proposed to evaluate digital development based on a set of ICT indices (NRI, GCI_H, IMD, GKI, GCI, HDI). Statistical analysis of the empirical database of these ICT indices for 2019, formed from open international sources, using the methods of correlation and cluster analysis, allowed to determine the profiles of digital development of the countries of the modern world and to obtain a cumulative assessment of the country’s position in the world digitalization rankings. For the purpose of ranking countries by the level of ICT development, the value of the main component allocated by the main component method was used. The developed system of cumulative assessment of the country’s positioning in the world digitalization ratings allows to interpret the essential differences in the development of the information economy in a new way.
References 1. Cámara, N., Tuesta, D.: DiGiX: The digitization index (2017). https://www.bbvaresearch. com/wp-content/uploads/2017/09/WP_17-03_DiGiX_methodology.pdf. Accessed 06 July 2021 2. Chatterjee, A.: Financial inclusion, information and communication technology diffusion, and economic growth: a panel data analysis. Inf. Technol. Dev. 26(3), 607–635 (2020) 3. Elena-Bucea, A., Cruz-Jesus, F., Oliveira, T., Coelho, P.S. (2017): Assessing the role of age, education, gender and income on the digital divide: evidence for the European Union. Information Systems Frontiers (2017). https://doi.org/10.1007/s10796-020-10012-9. Accessed 06 July 2021
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4. Golovenchik, G.G.: Rating analysis of the level of digital transformation of the economies of the EAEU and EU countries. Digital Transform. 2(3), 5–18 (2018) 5. Gonçalves, G., Oliveira, T., Cruz-Jesus, F.: Understanding individual-level digital divide: evidence of an African country. Comput. Human Behav. 87, 276–291 (2018) 6. Huawei: Global Connectivity Index ranking table (2020). https://www.huawei.com/minisite/ gci/en/country-rankings.html. Accessed 06 July 2021 7. Karman, A., Kijek, A., Kijek, T.: Eco-innovation paths: convergence or divergence? Technol. Econ. Dev. Econ. 26(6), 1213–1236 (2020) 8. Knoema: Activate your data experience (2017). https://knoema.com/. Accessed 06 July 2021 9. Kolmykova, T.S., Khalameeva, K., Zelenov, A.V.: Research of trends in the development of the digital economy in Russia on the basis of international ratings. Innovations Investments 3, 29–31 (2019) 10. Konstantinova, L.A., Kramarenko, I.V.: Analysis of approaches to the assessment of digital inequality in education systems. Microeconomics 1, 32–49 (2020) 11. Kuzovkova, T.A., Almaeva, O.P., Starovoitova, A.S., Sharavova, M.M.: Characteristics of the international level of development of the digital economy and infocommunications of Russia. Econ. Qual. Commun. 2(16), 3–13 (2020) 12. Magomedova, S.R.: Research of informatization and the level of digital development of the regions of the Russian Federation. Basic Res. 10, 66–70 (2020) 13. Myovella, G., Karacuka, M., Haucap, J.: Digitalization and economic growth: a comparative analysis of Sub-Saharan Africa and OECD economies. Telecommun. Policy 44(2), 101856 (2020) 14. Novikov, D., Belov, M.: Methodological foundations of the digital economy. In: Kravets, A.G. (ed.) Big Data-driven World: Legislation Issues and Control Technologies. SSDC, vol. 181, pp. 3–14. Springer, Cham (2019). https://doi.org/10.1007/978-3-030-01358-5_1 15. Portulans Institute: Networked Readiness Index 2019 countries (2019). https://networkreadi nessindex.org/2019/nri-2019-countries/#complete-ranking. Accessed 06 July 2021 16. Raki´cevi´c, J., Levi Jakši´c, M., Jovanovi´c, M.: Measuring the potential for technology entrepreneurship development: Serbian case. Manage. J. Sustain. Bus. Manage. Solutions Emerg. Econ. 23(2), 13–25 (2018) 17. Raki´cevi´c, J., Raki´cevi´c, A., Poledica, A.: Logical clustering approach for analysing digital economy and society performance of countries. In: Novák, V., Maˇrík, V., Štˇepniˇcka, M., Navara, M., Hurtík, P. (eds.) Proceedings of the 11th Conference of the European Society for Fuzzy Logic and Technology (EUSFLAT 2019). Atlantis Studies in Uncertainty Modelling, vol. 1, pp. 550–557. Atlantis Press, Paris (2019) 18. Richmond, K., Triplett, R.E.: ICT and income inequality: a cross-national perspective. Int. Rev. Appl. Econ. 32(2), 195–214 (2018) 19. Ruiz-Rodriguez, F., Lucendo-Monedero, A.L., González-Relaño, R.: Measurement and characterization of the digital divide of Spanish regions at enterprise level. A comparative analysis with the European context. Telecommun. Policy 42(3), 187–211 (2017) 20. Subramaniam, J., Masron, T.A., Hadiyan, N., Hasan, S.H.: Digital divide in developing countries. Bull. Int. Organ. 15(4), 115–139 (2020)
Public Procurement from SME: Savings Against Special Conditions in 2019–2020 D. A. Sozaeva1 and S. A. Suyazova2(B) 1 Moscow Financial and Industrial University “Synergy”, Moscow, Russia 2 State University of Management, Moscow, Russia
Abstract. The contribution considers issues of supporting small and mediumsized businesses through the system of quotas for public procurement and procurement of individual legal entities. The results of the analysis of the Russian and foreign experience of supporting small and medium-sized businesses through regulated procurement mechanisms are presented in this work. The authors highlighted problems of artificial restriction of competition through special procurement conditions from small and medium-sized businesses. The statistics of 2019 and 2020 for the Volga Federal District of the Russian Federation are compared, with aggregation up to two-digit codes of the commodity nomenclature. Keywords: Non-market procurement conditions · Preferences · Purchases from small and medium-sized entrepreneurs
1 Introduction The spread of a new coronavirus infection in 2020 has significantly increased the importance of the state support measures for small and medium-sized businesses in all countries of the world, including in Russia. The set of measures from the Federal Law “On the development of small and medium-sized businesses in the Russian Federation” dated 24.07.2007 No. 209-FZ [6] includes training, assistance in the participation of small and medium-sized businesses in exhibitions and fairs, providing advice in the field of business development and expansion, leasing real estate on preferential terms, preferential lending and subsidies, as well as the establishment of special quotas for purchases by state organizations from small and medium-sized businesses and has already turned out to be minimally necessary. At the same time, the system of support measures through quotas in public procurement, according some researchers, for example Anchishkina [1], is a common and effective mechanism in the world practice. The domestic practice of supporting small and medium-sized businesses in procurement has its own specifics. Table 1 shows a comparative analysis of measures to support SMEs under 44-FZ [5] and 223-FZ [4]. Support for SMEs through the procurement system in 2020 in the context of the coronavirus pandemic is an emergency both for Russia and for other countries. For example, the OECD survey shows that many countries have taken a number of measures © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 33–42, 2022. https://doi.org/10.1007/978-3-030-94873-3_5
34
D. A. Sozaeva and S. A. Suyazova
Table 1. Comparative analysis of measures to support small and medium-sized businesses in procurement Federal Law 44-FZ
Federal Law 223-FZ
Only small business entities (as well as socially oriented non – profit organizations – SONKO) are supported
Small and medium-sized businesses are supported (but without SONKO)
A quota is established for the annual purchase A quota is established for the purchase of of a certain amount of goods, works and ordinary goods, works, services + a quota for services from small enterprises the purchase of innovative (high-tech) products Partnership programs with small and medium-sized businesses are being formed The purchase quota is calculated as % of the total annual purchase volume, but WHAT EXACTLY the customer will purchase is not regulated
The purchase quota is calculated as % of the total annual volume of purchases, but the customer must first form LISTS of goods, works or services that he will purchase from small and medium-sized enterprises
Source: authors based on [4, 5].
to facilitate the access of SMEs to public procurement, as well as simplify the execution of contracts [9]. For example, some countries provide respite and assistance through public procurement measures. A number of countries have introduced deviations from standard procedures to cover emergency needs (for example, Sweden, Portugal, Poland, Greece). Several countries have stopped deferring fines on public contracts (Belgium, France), and accelerated approval procedures in sectors such as construction or the chemical sector (France). Denmark and Israel offer an advance payment for the purchased goods. In Korea, procurement processes have been simplified by limiting on-site inspections. In New Zealand, administrations were ordered to pay their bills within ten working days to support small businesses. In several countries, retailers have committed to paying their suppliers for small businesses quickly. In China and Israel, the government encourages purchases from local SMEs [9]. In Russia, two sets of amendments were adopted in the public procurement segment. The first package of amendments made it possible to carry out purchases only among SMEs without ensuring the execution of contracts until the end of 2020 (98-FZ [2]), the second package of amendments made it possible to reduce the rate for ensuring the execution of contracts by 10 times: from 5 to 0.5% (124-FZ [3]). This amendment makes it possible to ease the financial burden not only on SMEs, but also on the entire business that is the executor of state contracts. Another measure that is aimed at supporting performers under state and municipal contracts is the possibility of increasing the advance payment on contracts from 30% to 50%. In addition, the Ministry of Finance of Russia, the Federal Antimonopoly Service of Russia and regional governments have adopted local regulations that recognize coronavirus as a force majeure circumstance, and, in case of non-fulfillment of such contracts by suppliers, allow them not to apply harsh penalties to them. At the same time, the supervisory authorities draw the attention of customers to
Public Procurement from SME
35
the fact that not all cases of non-fulfillment of contracts are the result of force majeure, and urge them to carefully analyze all the facts of non-fulfillment of contracts or delaying the deadlines for their execution. Despite the made efforts, according to the statistics of some federal trading operators – electronic platforms, the drop in trading volumes for the first “non-working” week (March 30-April 5, 2020) amounted to about 10,000 procedures, the demand for bank guarantees to secure applications and ensure the execution of contracts decreased by 27–30% compared to the average weekly parameters of the precoronavirus periods. The number of requests for obtaining an electronic signature has decreased, but the indicators related to requests for generating a cloud-based electronic signature have significantly increased, which until 2020 was used rather in a test mode, but under new conditions is undergoing technological adjustment and commissioning at an accelerated pace. Statistics on the involvement of small and medium-sized businesses in procurement are quite encouraging [8]. In 2019, customers purchasing under 44-FZ placed 1.3 million purchase notices, the participants of which can only be small businesses and socially oriented non-profit organizations (818 thousand notices in 2018), with a total volume of 1.4 trillion rubles (700 billion rubles in 2018). During the three quarters of 2020, 606 thousand notices on procurement from small businesses and socially oriented nonprofit organizations for a total amount of 1.44 trillion rubles were announced within the framework of 44-FZ. Information about purchases from small and medium-sized businesses by customers under 223-FZ has a more complex structure. Taking into account the fact that customers under 223-FZ pre-form a list of goods that they purchase from SMEs, there is a kind of two-stage selection: preliminary (by nomenclature) and basic-upon purchase. The value volume of contracts concluded with SMEs in 2019 amounted to 4.4 trillion rubles, despite the fact that in 2018 purchases from SMEs totaled more than 2.4 trillion rubles, including 356,206 purchases with a total value of 1.98 trillion rubles were announced only for the participation of SMEs [7]. In the first half of 2020, within the framework of 223-FZ, 165 thousand purchases were announced from SMEs for a total amount of over 1.1 trillion rubles. Despite significant measures to support SMEs in procurement, the creation of special conditions, the gradual increase in the share of purchases from SMEs within the framework of 223-FZ to 20% per year, there is an opinion that the formation of artificial conditions and environment leads to a decrease in the competition level in bidding and a drop in their effectiveness. Among the critical points, many experts call the overestimation of the price of the contract concluded under 44-FZ, if it was played out among SMEs. The authors tried to assess whether the restriction on the status of the participant (only SMEs) is a factor affecting the savings in the auction, using the example of the regions of the Volga District. This work continues the analysis started by the authors earlier [10].
2 Methodology For the study, purchases through electronic auctions were chosen as the most common and relatively transparent method of procurement. The study was based on the regions of
36
D. A. Sozaeva and S. A. Suyazova
the Volga Federal District: the Republic of Bashkortostan, the Kirov Region, the Republic of Mari El, the Republic of Mordovia, the Republic of Udmurtia, the Nizhny Novgorod Region, the Perm Region (in the future, other regions of the Volga Federal District will be included in the study). The choice of the Volga Federal District is determined by the presence of both economic leaders with high innovative potential and depressed regions in it. Among the sample regions, Bashkiria should be singled out separately – the leader in terms of purchases from small businesses and SONKO under 44-FZ after the traditionally abnormal Moscow and St. Petersburg. To make calculations from the portal’s ftp server zakupki.gov.ru at the end of February – beginning of March 2020, notifications of procurement procedures (electronic auctions under 44-FZ) for 2019 were uploaded. The data were subjected to preliminary processing and cleaning, during this process some of the observations on electronic auctions were excluded. This affected purchases that combined lots under several two-digit OKPD 2 codes, as well as those in which the procedure did not take place because of the absence of applications or the rejection of all received applications. Records on purchases with other types of encumbrances (restrictions and preferences) were excluded from the remaining ones. Thus, notifications with restrictions on the national regime in the field of procurement, preferences for organizations of disabled people and the penal enforcement system were excluded too. Finally, we excluded purchases in which the contract price exceeded the initial minimum purchase price due to the “reversal” of the electronic auction on the basis of Article 68 of the 44-FZ (their share is only 1%). After all the preliminary preparation procedures, 50773 electronic auctions were selected for the study. Taking into account that purchases for different groups of goods, works and services have different specifics, we compared the average percentage of savings for two-digit OKPD2 codes, dividing the procedures into two groups: with a restriction on participants (purchases from SME) and without restrictions. Product codes for which the number of observations in any of the groups is less than 30 were excluded from consideration. The savings were calculated as the ratio of the difference between the initial maximum price and the auction winner’s price to the initial price. It should be noted that the official methodology for calculating savings at auctions provides for a slightly different calculation [12] and includes two indicators of savings. Cost savings based on the results of concluding contracts (absolute value). The indicator represents the difference between the guaranteed maximum price (GMP) and the cost specified in the contract that was actually concluded with the supplier (contractor). The indicator is calculated based on existing contracts in the register of contracts and related lots. The indicator is calculated using the formula: Pi ) − Pi (1) EABS = N ∗ (Pi / where: N – GMP specified for this lot and the customer; Pi – the price of one contract; Pi – the sumof contract prices for this lot and the customer. If N * (Pi / Pi ) – Pi < 0, then the indicator remains empty. When concluding several contracts for one lot with several participants, the absolute value of savings is calculated for each contract in the lot, for each contract in the contract
Public Procurement from SME
37
register. The indicator is calculated on the date of conclusion of the contract. The indicator does not take into account: – – – –
lots (and related contracts in the register) in which the GMP is not determined; contracts in the register (and related lots) that do not specify the contract price; canceled purchases; cancelled contracts.
Cost savings based on the results of concluding contracts (relative value). It is calculated for lots and related contracts according to the formula: EOTN = EABS /GMP ∗ 100%
(2)
When calculating, the GMP is used only for those lots for which the condition is met: Cost savings based on the results of concluding contracts (absolute value) ≥ 0. The indicator value is displayed as a percentage. The indicator is calculated on the date of the contract conclusion. For the research purposes, we have slightly modified the methodology, making it more focused on general socio-economic statistics, rather than on procurement statistics. For this reason, at the current stage of the analysis, we calculated the savings for the date of the protocol of the last auction stage. Then, using the Student’s t-test, we tested the difference in the average percentage of savings between purchases with restrictions and without restrictions, by groups of two-digit product codes. We expect that the comparison of averages will allow us to identify groups of goods, the purchase of which from small and medium-sized businesses is more expedient, since it carries a greater percentage of savings. It is also interesting to compare such product groups in 2019 and 2020.
3 Results Tables 2 and 3 show those product codes for which in 2019 and 2020 the difference in the average percentage of savings for purchase groups is significantly different (the p-values for the t-test for equality of averages are less than 0.05), and the savings when purchasing from SME are greater. Moreover, of all such product codes, we have filtered out only those for which the difference in the percentage of savings exceeds 5%. This and the following tables are sorted from a larger difference in the average percentage of savings to a smaller one.
38
D. A. Sozaeva and S. A. Suyazova
Table 2. Groups of goods for which the average percentage of savings in purchases from SME was 5% or higher than in purchases without restrictions (the Volga Federal District, 2019) Two-digit product codes according to OKPD 2
1
Average percentage of savings
Number of observations
P-value for the t-test for equality of averages
SME
No restrictions
SME
No restrictions
2
3
4
5
6
56
Catering services
33,1
17,3
483
147
0,0000
68
Real estate services
33,6
19,6
946
924
0,0000
53
Postal services and 31,8 courier services
18,7
42
165
0,0393
74
Professional, 51,2 scientific and technical services, other
40,2
293
277
0,0000
46
Wholesale trade 30,9 services, except for motor vehicles and motorcycles
21,5
237
65
0,0019
3
4
5
6
1
2
47
Retail trade 26,6 services, except for motor vehicles and motorcycles
20,1
188
63
0,0256
93
Services related to sports, and the organization of entertainment and recreation
8,5
264
146
0,0000
84
Services in the field 40,4 of public administration and military security; mandatory social security
35,0
382
393
0,0117
19
Coke and 15,5 petroleum products
10,5
1867
3131
0,0000
14,8
Source: authors based on [11].
Public Procurement from SME
39
Table 3. Groups of products for which the average percentage of savings in purchases from SME was 5% or higher than in purchases without restrictions (the Volga Federal District, 2020) Two-digit product codes Average percentage of according to OKPD 2 savings
Number of observations
SME
No restrictions
SME
No restrictions
P-value for the t-test for equality of averages
74
Professional, scientific and technical services, other
53,4
32,9
150
71
0,0000
68
Real estate services
49,7
42,7
457
290
0,0164
58
Publishing services
29,5
22,7
175
101
0,0158
29
Motor vehicles, trailers and semi-trailers
26,6
20,7
291
98
0,0040
41
Buildings and works on the construction of buildings
20,0
14,8
255
114
0,0032
Source: authors based on [11].
Tables 4 and 5 show those product codes for which in 2019 and 2020 the difference in the average percentage of savings by purchase groups is significantly different, and the savings when purchasing from SME are less, the difference is at least 5%. Table 4. Groups of products for which the average percentage of savings in purchases from SME was 5% or lower than in purchases without restrictions (the Volga Federal District, 2019) Two-digit product codes according to OKPD 2
1 85
Educational services
Average percentage of savings
Number of observations
P-value for the t-test for equality of averages
SME
No restrictions
SME
No restrictions
2
3
4
5
6
38,0
51,7
142
643
0,0000 (continued)
40
D. A. Sozaeva and S. A. Suyazova Table 4. (continued)
Two-digit product codes according to OKPD 2
1
Average percentage of savings
Number of observations
SME
SME
No restrictions
No restrictions
P-value for the t-test for equality of averages
2
3
4
5
6
21
Medicinal products and materials used for medical purposes
20,5
27,0
1857
72
0,0146
18
Print services and services for copying audio and video recordings, software
32,6
38,7
163
104
0,0419
2
3
4
5
6
1 17
Paper and paper products
23,1
28,9
2046
718
0,0000
10
Food products
19,3
24,3
2228
1225
0,0000
29
Motor vehicles, trailers and semi-trailers
17,2
22,2
509
177
0,0004
Source: authors based on [11].
Table 5. Groups of products for which the average percentage of savings in purchases from SME was 5% or lower than in purchases without restrictions (the Volga Federal District, 2020) Two-digit product codes according to OKPD 2
Average percentage of savings
Number of observations
SME
No restrictions
SME
No restrictions
P-value for the t-test for equality of averages
85
Educational services
43,4
52,8
452
1057
0,0000
25
Finished metal products, except for machinery and equipment
24,1
30,7
109
78
0,0480
17
Paper and paper products
23,1
28,3
1753
550
0,0000
Source: authors based on [11].
Public Procurement from SME
41
4 Discussion First of all, we note that two stable commodity groups of goods were found, in which purchases from SME lead to greater and lesser savings and which are repeated both in 2019 and in 2020. Given the crisis regime of 2020, this is a good result. In addition, this is not just a significant statistical difference in the average: having previously limited the difference in savings to five percent, we identified those product categories in which the difference in savings can be considered as significant. Comparing Tables 2 and 3, we will pay attention to the reduction of groups of product codes, as well as to the reduction in the number of procurement procedures themselves. The crisis related to COVID-19 was primarily reflected in the number of successfully completed purchases. In the research sample, we included only those procedures that passed all three stages of the electronic auction, while in 2020 a significant share of purchases moved to procedures with a single supplier. This is also true for Tables 4–5. We should also note the predominance of services in those procurement categories where savings are shown when working with medium and small businesses: in 2019, this is 8 out of 9 categories, in 2020 – 3 out of 5. At the same time, the number of purchases from small entrepreneurs in these categories either exceeds or is comparable to the number of purchases without restrictions. There are more categories of goods and services in which savings were shown during the purchase from the SME, and this may be due to tougher competition between them. This issue requires a more thorough study, including factors such as the number of submitted and approved applications and the speed of the various auction stages.
5 Conclusion As a result of the analysis of procurement statistics under the 44-FZ for the regions of the Volga Federal District for 2019, the initial hypothesis that the special regime of public procurement for small entrepreneurs affects the savings level was partially confirmed: there are indeed groups of goods for which the purchase using the electronic auction procedure with the sign “only from SME and SONKO” reduces savings by more than 5% compared to purchases without such restrictions. The identified categories of purchases relate mainly to the service sector. Some of the product groups are consistently detected both in 2019 and in 2020: professional, scientific and technical, other services; services for real estate transactions. However, there are also reverse situations when purchases with the sign “only from SME and SONKO” are on average more expensive than purchases without restrictions, and the difference is more than 5%. Such categories in both 2019 and 2020 include such OKPD2 codes as educational services; paper and paper products. The analysis of the impact of restrictive measures “purchasing only from SME and SONKO” affects the savings on purchases heterogeneously which requires further more detailed research of the issue with the inclusion of factors reflecting competition: the number of submitted applications, the duration of individual stages of auctions, and others.
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References 1. Anchishkina, O.V.: Domestic and international experience in the development of contract relations with small businesses: tools to support each other. State Order Manage. Placement Provision 55, 32–37 (2019) 2. Federal law “On amendments to certain legislative acts of the Russian Federation on the prevention and liquidation of emergency situations” of 01.04.2020 N 98-FZ. http://www.con sultant.ru/document/cons_doc_LAW_349080/. Accessed 16 Apr 2021 3. Federal law “On amendments to certain legislative acts of the Russian Federation on ensuring sustainable economic development in the context of a deteriorating situation due to the spread of a new coronavirus infection” of 24.04.2020 N 124-FZ. https://docs.cntd.ru/document/564 747604. Accessed 16 Apr 2021 4. Federal law “About purchases of goods, works, services by certain types of legal entities” of 18.07.2011 №23-FZ. http://www.consultant.ru/document/cons_doc_LAW_116964/. Accessed 05 Apr 2021 5. Federal law “About the contract system in the field of procurement of goods, works, services for state and municipal needs” of 05.04.2013 №44-FZ. http://www.consultant.ru/document/ cons_doc_LAW_144624/. Accessed 05 Apr 2021 6. Federal law “On the development of small and medium-sized businesses in the Russian Federation” of 24.07.2007 №209-FZ. http://www.consultant.ru/document/cons_doc_LAW_ 52144/. Accessed 05 Apr 2021 7. Ministry of Finance of Russia: The contract system. Monitoring of the application of FZ-223 (2020). https://minfin.gov.ru/common/upload/library/2020/07/main/Monitoring_p rimeneniya_223_2019.pdf. Accessed 16 Apr 2021 8. Ministry of Finance of Russia: The contract system. Monitoring (2020). https://minfin. gov.ru/ru/perfomance/contracts/purchases/?id_38=130277-svodnyi_analiticheskii_otchet_ po_rezultatam_osushchestvleniya_monitoringa_zakupok_tovarov_uslug_dlya_obespeche niya_gosudarstvennykh_i_munitsipalnykh_nu. Accessed 16 Apr 2021 9. OECD: SME policy responses (2021). www.oecd.org/coronavirus. Accessed 16 Apr 2021 10. Sozaeva, D.A., Suyazova, S.A.: The impact of the national regime on public procurement in the IT sector on the example of statistics on the Volga Federal District for 2019. In: Proceedings of the II All-Russian Scientific and Practical Conference “Digital Transformation of Management: Problems and Solutions-2020”, pp. 95–97. GUU Publishing House, Moscow (2020) 11. Unified Information System in the Field of Procurement: Ftp server of the public procurement portal 2021. ftp://[email protected]/. Accessed 16 Apr 2021 12. Unified Information System in the Field of Procurement: Purchases (2020). https://zakupki. gov.ru/epz/main/public/home.html. Accessed 16 Apr 2021
Chinese Phenomenon of “Pre-knowledge” as Traditional Element of Predicting Digital Future M. Zakharov(B) and A. Shishkova State University of Management, Moscow, Russian Federation
Abstract. In the culture of the old imperial China, the phenomenon of prognostics was raised to a certain cult. The ancient Chinese believed that in everyday activities, knowledge can be revealed to the world, but in predictive practice, preknowledge is always hidden. Pre-knowledge has also found its niche in modern prognostics, which implements high international standards. The contribution considers some specific features of the Chinese phenomenon “pre-knowledge” in the context of the world experience of using foresight. In the course of this research, such classical theoretical philosophical methods as the method of generalization, analogy, abstraction, analysis and synthesis were used. The authors also applied logical-epistemological analysis to enter and interpret the concepts necessary for the study. During the analysis of modern Chinese foresight projects, it is shown that the state foresight of China includes elements from not only the model of Japanese foresight, which grew out of the classic American one, but also traditional knowledge. It is concluded that the phenomenon of “pre-knowledge” will find its special place in the study of the digital future of our society. Keywords: China · Digitalization · Foresight · Forecasting · Pre-knowledge
1 Introduction The human mind has always tried to lift the veil of everyday life and look into the future, to form a certain predictive knowledge about it. The thinkers of the ancient world have already tried not just to guess the upcoming individual events or changes in the world as a whole, but also to describe the nature of pre-knowledge, to determine the effective technology of its formation. A special place in this cognitive process is occupied by the spiritual culture of the old imperial China, where the phenomenon of prognostics was raised to a certain cult. In the ancient “Book of Changes”, the Chinese recorded the fact of constant variability, fluidity of the surrounding world, the impossibility of its existence in a static state. It said: “If you step on frost, it means that strong ice is also close” [4]. Systematic attempts to comprehend the future have led to the formulation of important initial positions that need to be taken into account in prognostics: the future is based on the unity of heaven, © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 43–49, 2022. https://doi.org/10.1007/978-3-030-94873-3_6
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society, and man; the future of our society is inextricably linked with nature, is in harmonious integrity with it, obeys its natural laws; the future is always a certain balance between the Yin and Yang sides of the universe, which are opposite, interconnected, mutually complement and limit each other; the future is a certain transformation of the past and present.
2 Methodology In the course of the research, such classical theoretical philosophical methods as the method of generalization, analogy, abstraction, analysis and synthesis were used. The authors also used logical-epistemological analysis to enter and interpret the concepts necessary for the study, including “non-action” and “pre-knowledge”. In everyday activities, as the ancient Chinese believed, knowledge can be revealed to the world, but in predictive practice, pre-knowledge is always hidden. The innermost truth of the world has always been associated with the Chinese phenomenon of “Wu Wei” (“non-action”), according to which one should implement non-interference in the pre-established order, not violate the uniform universal laws of nature. In the history of China, we do not find a single interpretation of this phenomenon. For example, the Taoists proceeded from the fact that you need to nurture your heart, stay in “nonAction” and “things will do everything by themselves” [7, p. 41]. The same applies to the management of the Celestial Empire, where it is difficult to manage the people, because those who stand above them are committed to the act [12], therefore, the ideal ruler needs to work less or do nothing at all, because the people have such natural desires that they simply cannot do wrong. In the history of China, there are other interpretations of the phenomenon of “non-action”. So, among Confucians, “non-action” is considered as an element of the prosperity of the Celestial Empire and the ideal ruler can be inactive, and the state is able to function harmoniously, since people will take the ruler’s virtue as an example and try to embody it in themselves. Another interpretation is offered by the legists: the ruler does not need to act, since everything is decided for him by a mechanical law. Along with secrecy, there is another important feature of pre-knowledge: it is the lot of a few, since only a select few are able to draw far-reaching conclusions based on insignificant signs. In any episode of reality, there is a primary impulse of all subsequent changes, but the knowledge of this and that, the ability to correctly decipher unique clues were considered the main indicators of the wisdom of any actor involved in the knowledge of the future.
3 Results The nature of pre-knowledge is unique, it includes many elements, but in general, the traditional pre-knowledge of China, regardless of the historical development stage, is always a single and integral structure, including various elements: rational and irrational, conscious and unconscious. On the one hand, it fully reflects the current level of knowledge, sees the existing trends in the reality development, uses norms and rules of
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reasonable thinking. On the other hand, it believes in the predestination of social development, and the intuition of the predictor helps to obtain predictive knowledge without a specific logical proof or analysis. This phenomenon is explained by the Chinese tradition of the interpenetration of opposites: rest and movement, emptiness and fullness, presence and absence, external and internal. Here we can recall the classic phrases of the great Taoist teacher Lao Tzu: thirty spokes are connected in one hub (forming a wheel), but the use of the wheel depends on the emptiness between them (the spokes); vessels are made of clay, but the use of vessels depends on the emptiness in them; people make doors and windows to build a house, but the use of the house depends on the emptiness in it. That is why the usefulness of (something) available depends on emptiness [12]. This leads to a very important idea: the greater the cognitive emptiness is that provides the potential of internal knowledge, the higher the productivity of the pre-knowledge itself is. True pre-knowledge always originates in an empty container and the question is how to “pull out”, how to “decipher” the inner knowledge. This inner knowledge is tacit. Cognitive emptiness as the habitat of the inner is always silent, there is no need for a verbal form, any word is destructive for emptiness. Therefore, the task is not to make the inner knowledge to “speak”, but to transform it into an external verbal form. The Chinese cult of silence is the most audible and effective part of the great centuries – old culture, the most protected national treasure, which still gives an answer to the most pressing questions. Pre-knowledge has also found its niche in modern prognostics, which implements high international standards. This is especially clearly seen in the predictive technology actively used today called “Foresight” (from the English “foresight” — foresight, prudence, a look into the future), which was first used in the field of technology, then expanded its application to the business sphere, the socio-political sphere and, in general, to all spheres of our society. Since the second half of the twentieth century, along with the United States, technological forecasting has been used in Japan and European countries, and Russia has joined this process. In 2011, the Ministry of Education and Science, on behalf of the Government of the Russian Federation, initiated the scientific and technical Foresight-2030, the purpose of which was to determine the most promising areas of scientific and technical development of Russia for the period up to 2030 to ensure the implementation of the country’s competitive advantages. Dozens of organizations specializing in various fields of science and industry, Russian and foreign scientists, businessmen, and statesmen took part in the large-scale project [3]. The Russian, American, European, and Asian models of foresight somehow use the accumulated socio-cultural experience. It should be noted that the technological consolidation of a globalizing society opposes the processes of unification within the framework of a common cultural tradition and historical memory, while it is the human as a part and carrier of the national cultural way of life who is the addressee of innovative processes [14]. So, in the state foresight of China, not only the model of the Japanese foresight is visible, but also traditional pre-knowledge: the future cannot be predicted reliably, any attempts of extra-scientific, paranascientific, esoteric and other types of knowledge to look into the future only allow you to guess the future, to get probabilistic, not reliable, not verifiable knowledge. But this should be used in modern practice, since
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the public consciousness believes that the future flows from the past in a natural way and the latter leads society to a harmonious future. The world prognostics is faced with the problem of low efficiency of general scientific prognostic methods: quantitative models, extrapolation of existing trends and others, which, as it turned out in the process of the real application, have limited potential. To a limited extent, it is possible to predict the future with the help of modern scientific methodology, which certainly goes beyond the traditional academic sphere, where the main emphasis is placed on the competence of consultants. One of the most important functions of the modern science is the predictive function, which is implemented in various types of prediction: 1) prediction based on hypothetical-deductive methodology; 2) prediction based on induction; 3) prediction based on modeling of possible processes; 4) prediction as staging. Based on long-term Chinese practice, it has been established that many problems of development and planning of scientific, technical and innovative activities can be solved by adopting integrated approaches to conducting technological foresight events, including large-scale Delphi survey, scenario analysis, technological roadmap and bibliometry [6]. Moreover, scenario forecasting of socio-economic development, combining various approaches, is the most promising predictive model for designing the future. A fairly well-developed method of “complex foresight” or “full-fledged foresight” is recognized today all over the world as the most promising option, with the possible use of others. The future formed by such foresight covers not only society as a whole, but also its various spheres, specific events, processes, phenomena, and even specific cases, such as, for example, monitoring of technologies and the environment. The predictive work itself can be organized at the international, national and regional levels, with an effective forecasting horizon of 10–12 years.
4 Discussion Today, most countries are following the path of step-by-step use of complex foresight. For example, the ten-year national program “Made in China-2025” was launched in China in 2015 [10]. It should be noted that since 1949, China has put the creation of innovations at the first place in its state policy, while their implementation played a secondary role and was largely left to enterprises and the market [13]. In this program, the government has proposed a foresight project, the purpose of which is to rejuvenate and strengthen the country’s high-tech manufacturers, which, according to the developers, will lead to a knowledge economy, the formation of its own special Chinese consumer, the change of the country’s negative industrial image and, finally, taking a firm position as a world leader in high-tech industries. The main objectives of the program are: to achieve full technological independence of Chinese manufacturers; creation of a global generator of NBIC technologies on the basis of China in key sectors of the economy, ranging from the production of aerospace equipment to agriculture. In accordance with the general attitude, local industry images of the future are formed: aerospace, transport, energy and medical. In general, by 2025, ten images of key sectors of the economy will be formed and implemented in practice, which in turn will lead to an increase in the share of the production localization to 70%, the creation of 40 national and 48
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provincial innovation centers, state-level demonstration zones in cities and urban clusters in the eastern, central and western regions of the country, attracting innovative foreign technologies and equipment, as well as talented graduates of educational institutions (salaries, subsidies, housing). An interim audit of the implementation of the program shows that today labor productivity has increased by 38%, operating costs have decreased by 21%, energy costs have decreased by 9.5%. Such activities of China cause opposition from industrially developed countries, because at such a pace, China will displace foreign competitors from most promising markets and fully realize the plan of economic conquest of the world, which fully contradicts the basic rules of the World Trade Organization. At the same time, along with optimistic forecasts, there are doubts that China will be able to maintain steady economic growth. For example, in order to get closer to the American indicators of per capita income (~60 thousand up to 2049), China should constantly increase this indicator by more than 6%, while spending more than now on combating environmental pollution, administrative and political control, healthcare and care for the elderly, social security, food imports, military reform and strengthening its global role [9]. In connection with all the above, developed countries, along with political and economic opposition, are trying to independently comprehend the possible future of China. Thus, the foresight project “China-2025: Scientific and innovative landscape” has been organized and is being carried out, the task of which is to identify priority scientific and technical areas for China, analyze current trends in their development, during which four likely scenarios of China’s innovative development until 2025 are compiled [2].
5 Conclusion The international experience of using foresight shows that the latter has significant internal reserves, the use of which has yet to be realized. The interaction of foresight and knowledge management is positively evaluated. First, knowledge management can improve the efficiency and effectiveness of strategic foresight – when developing a strategic foresight and applying its results, knowledge management can be used to effectively ensure future-oriented actions and practices. Secondly, the dynamic interaction between strategic foresight and knowledge management stimulates the development of new technologies in companies: it is necessary to identify new technologies both in the market and in the social environment that can be applied in companies [8]. Big data analysis brings new opportunities and epistemic value for the foresight methodology. There is a wide range of options for various data sources (for example, web data-user data, social network data, sales data, news, reports, etc.) that can be used for a holistic analysis of technical and social development, as well as the dynamics of innovative systems. In particular, the analysis of such data can be used in quantitative scenario approaches [5]. The most promising results of foresight today lie in the field of information technologies: large databases, cloud computing, artificial intelligence, 5G-mobile communications of the fifth generation, smart objects of various nature, cybersecurity. The development of artificial intelligence is now recognized as the main driver of any economy. The results of the 2019 study are interesting, in which the authors conducted four surveys on expectations for the achievements of science, technology and business in
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the next 35 years: readers of «Science», «Nature» and «Harvard Business Review», as well as a group of experts in the field of technological forecasting and scientific policy were interviewed. A combined analysis of four surveys showed that the combination of medical, biomedical and biotechnological achievements with achievements in the field of artificial intelligence will have the greatest impact on business and society in the next 35 years, and progress in the field of energy and transport, based on new advanced and sustainable materials, will accompany this development, if the further research is funded and the workforce is ready for changes [1]. It is possible to create a communicative information network designed to ensure effective interaction of participants (joint use of the resource base, strategic guidelines and current forecasts) to stabilize their relations and solve the tasks accordingly: creating a kind of round table, the procedural result of which can be the table itself, as a permanent tool for long-term planning and forecasting, which, according to a number of experts, will lead to the expansion of the forecast horizon to 25–30 years. The overall result of the work can be official documents of various forms: international and national research programs that ensure the approximation of the selected strategic guidelines, innovative development scenarios, intermediate action programs, priority bases in various spheres of society, methodological features of forecasting and the national culture of foresight in general. The practical result is the expansion of the technological horizon, which, in turn, will allow us to see possible technological leaps that in the future will have a significant impact on society during the formation of the digital economy. The Chinese government is actively attracting private companies and research laboratories for these purposes, which are tasked with implementing fundamental projects related to the development of artificial intelligence technologies for future generations. The Ministry of Industry and Informatization of the People’s Republic of China has identified 17 priority areas for the development of artificial intelligence and has attracted five companies (Baidu, Tencent Holdings, Alibaba Group Holding, iFlytek, SenseTime) to develop an “open innovation platform” in various fields. It is planned that, by 2030, China should not only create an artificial intelligence industry, overtake its closest competitiors – the United States and Japan, but also become a recognized international leader in the field of artificial intelligence, however, increasing technological confrontation, uncertainty, unpredictable problems, such as the coronavirus epidemic in 2020, significantly hinder the implementation of this foresight project [11]. Summarizing the above, it should be noted that it is difficult both to overestimate and comprehensively describe the socio-cultural significance of traditional knowledge in the predictive activity. Based on the unique historical experience, the phenomenon of “pre-knowledge” will find its special place in the study of the digital future of our society. And this is fully demonstrated by China, which has every chance to become the leader of the digital world by the middle of the XXI century.
References 1. Betz, U.A.K., Betz, F., Kim, R., Monks, B., Phillips, F.: Surveying the future of science, technology and business – a 35 year perspective. Technol. Forecast. Soc. Chang. 144, 137–147 (2019). https://doi.org/10.1016/j.techfore.2019.04.005
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2. Christofilopoulos, E., Mantzanakis, S.: China-2025: research and innovation landscape. Foresight STI Governance 10(3), 7–16 (2016). https://doi.org/10.17323/1995-459X.2016. 3.7.16 3. Gokhberg, L., Sokolov, A., Chulok, A.: Russian S&T Foresight 2030: identifying new drivers of growth. Foresight 19(5), 441–456 (2017). https://doi.org/10.1108/FS-07-2017-0029 4. Ching, I.: The Book of Changes – World’s Oldest Book of Wisdom Used to Predict Future Events. Eksmo, Moscow (2012) 5. Kayser, V., Shala, E.: Scenario development using web mining for outlining technology futures. Technol. Forecast. Soc. Chang. 156, 120086 (2020). https://doi.org/10.1016/j.tec hfore.2020.120086 6. Li, N., Chen, K., Kou, M.: Technology foresight in China: academic studies, governmental practices and policy applications. Technol. Forecast. Soc. Chang. 119, 246–255 (2017). https:// doi.org/10.1016/j.techfore.2016.08.010 7. Malyavin, V.V.: Lao Tzu and Chuang Tzu. Mysl, Moscow (1995) 8. Nascimento, L.S., Reichert, F.M., Janissek-Muniz, R., Zawislak, P.A.: Dynamic interactions among knowledge management, strategic foresight and emerging technologies. J. Know. Manage. 25(2), 275–297. https://doi.org/10.1108/JKM-01-2020-0044 9. Parton, C.: Foresight 2020: the challenges facing China. RUSI J. 165(2), 10–24 (2020). https:// doi.org/10.1080/03071847.2020.1723284 10. Perskaya, V.V., Revenko, N.S.: Made in China 2025: Chinese experience in achieving national development goals. Asia Africa Today 7, 19–25 (2020) 11. Reshetnikova, M.S., Lukina, Y.: China’s policy in the race for global leadership in artificial intelligence. Russian J. Innovation Econ. 10(4), 1929–1942 (2020). https://doi.org/10.18334/ vinec.10.4.111115 12. Semenenko, I.I. (ed.): Laozi: The Path of Virtue. TERRA: Book club, Moscow (2008) 13. Wang, P., Li, F.: China’s organization and governance of innovation – a policy foresight perspective. Technol. Forecast. Soc. Chang. 146, 304–319 (2019). https://doi.org/10.1016/j. techfore.2019.05.029 14. Yatsenko, O.Y., Starovoytova, I.E.: Digitization and problems of national culture. In: Popkova, E.G., Sergi, B.S. (eds.) ISC Conference - Volgograd 2020. AISC, vol. 1100, pp. 210–214. Springer, Cham (2020). https://doi.org/10.1007/978-3-030-39319-9_24
The China – U.S. Trade Policy Stances: The Impasse or Viable Solutions? L. N. Talalova1(B) and J. Tian2 1 State University of Management, Moscow, Russia 2 Ningbo University, Ningbo, People’s Republic of China
Abstract. Since the WTO accession China with its market economy demonstrates a stable situation of growth and low inflation, a large trade surplus with the Asian region countries, the U.S., and the EU. The article investigates the problem of China’s international trade policy functioning which is based on flexible and pragmatic-oriented FTAs. Some of them (both provocative and risky as well as preferential) were highlighted within the research. The pivot is the Sino – U.S. trade exchanges which have expanded rapidly and have maintained a double-digit growth for the trade volume in a comparatively short period. Keeping in mind that China and the U.S. are each other’s largest trading partners, the authors utilized the statistics data to evaluate all the gains China gets in the framework of this partnership. Because of the country’s most important exports to the U.S. are electrical machinery and audio-visual products this very sector of industry was used as fact-based, illustrative material for analysis. The study indicates the influential factors which affect the foreign trade and makes an emphasis on some of them which determine the friction, with geopolitical rivalry theme as its background. The authors also appeal to the anti-dumping policy topic and the trade transfer effect. Keywords: Cost-effective advantages · Export electrical goods · Non-subrogation countries · Purchasing power parity (PPP) · Total volume of trade · Trade surplus
1 Introduction Since the reform and opening, China’s economy has developed steadily. Especially since the mid-1990s, China’s socialist market economy has presented a good situation of continuous high growth and low inflation, and the quality of the economic growth has also been significantly improved. Thanks to the strong growth of China’s exports (as well as the number of FTAs), China has maintained a large trade surplus with the U.S. and the EU countries, as well as Japan over the years, as a result, Beijing’s policy turned the country into the one with the largest foreign exchange reserves in the world. According to Jeffrey J. Schott, the broader the liberalization of trade and investment, and the larger the size of the integrated market, the greater the potential that the pact will spur additional economic growth in its member economies [7]. That is why Heng Wang highlights that © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 50–57, 2022. https://doi.org/10.1007/978-3-030-94873-3_7
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all the Chinese FTAs being malleable, cooperation-oriented, and WTO-based trade pacts provide a pragmatic approach [10]. Partially, it is because the proposals of the trading partners are largely adopted in China’s FTAs. Meanwhile, the Chinese participation in the U.S.-designed Trans-Pacific Partnership (TPP) was always considered a long shot. TPP requirements conflict with current Chinese practice; China would have to embrace unprecedented domestic reforms to meet disciplines on State-Owned Enterprises, data flows and localization restrictions, labor obligations, and subsidies [5]. The China – U.S. total volume of trade is constantly growing, and the business ties between the two sides are increasingly close. Since the WTO accession the economic and trade exchanges between countries have expanded rapidly, and the trade volume has been constantly rising, from the U.S. $80.485 billion in 2001 to the U.S. $583.697 billion in 2017, with the CAGR reaching 13.2% [9]. In particular, the trade volume has maintained a doubledigit growth from 2000 to 2008. In terms of the proportion of total trade volume, China and the U.S. are each other’s largest trading partners. The proportion of the Sino-U.S. trade in China’s total trade volume has always been over 12%, and the export – import proportion is at a stable level, 18.99% and 8.36% respectively in 2017. In today’s highly globalized world, the trade between two countries has become inseparable. China’s trade surplus is expanding year by year, and the United States are obviously dependent on China’s imports. The development of the Sino-U.S. trade is not balanced. China as a regional leader has always been a trade surplus country, and the trade surplus has been expanding year by year. The Sino-U.S. trade balance has increased from the U.S. $28.08 billion in 2001 to the U.S. $275.812 billion in 2017, and the CAGR has reached 15.3%. The Chinese products are favored by the American consumers due to their cost-effective advantages, and the United States rely heavily on imported goods from China. In a period of the latest decades, with the strengthening of China’s economy throughout the region, the export proportion of electrical goods has increased significantly. The export amount increased from $5.53 billion in 1995 to $1985.39 billion in 2017, accounting for 22.38% to 46.20%, nearly half of the total export amount. According to the category notes of the General Administration of Customs, electromechanical and audio-visual goods include all kinds of machinery, equipment, electronic circuit related products and their parts, and the products involve home appliances, electrical goods, etc. It, to a certain extent, led to the China’s foreign trade friction intensified.
2 Methodology The authors used the following methods: the statistical method, the theoretical method (the analysis, the synthesis, and the generalization), the empirical method, the historical analysis, the cause-and-effect analysis, and the comparative method. The brief overview of FTAs which are relevant to China for obtaining the regional governance in Asia is also in authors’ blueprint because much was revisited after the American abandonment of Trans-Pacific Partnership (now subsumed by the CPTPP), a treaty described earlier in 2016 as comprehensive and ambitious, as well as a balance of competing interests. Robert Goulder stresses that his country’s trade policy does not concern raising revenue from imports and creating new export opportunities, it tackles geopolitical relationships according to the scheme: if poorly managed, the U.S. trade stance will forfeit critical
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to China and strain relations with our strategic allies. If well…, trade can reassert U.S. influence [4]. Otherwise, while having a dilemma – abandonment or ambition – the U.S. selected the latter. Unexpectedly, Chinese Premier Keqiang Li replied recently that China has a positive and open attitude towards joining the CPTPP Agreement. In the scopes of ‘close reading’ it may be estimated as not a mature interest but a diplomatic act, an intention, in other words, China keeps all options open. Professor Kimberly A. Clausing in her research “Open: The progressive case for free trade, immigration, and global capital” makes an emphasis that if only the political will is there, national policy can harness globalization as a force for inclusive growth [1]. In this case all valid FTAs would became functional to the Chinese image of a key supporter of free trade and economic globalization. Matteo Dian and Silvia Menegazzi marshal the evidence that the FTAs underline how key provisions of the agreements mark a compromise between the objective of promoting China’s centrality in the region (affected economics are included), the need to overcome non-tariff barriers to trade, and the necessity to promote Beijing’s interests and normative orientation. The FTAs, precisely the world’s largest trade pact RCEP Agreement (signed in November 2020) which requires more modest trade reforms than the CPTPP, and which is a basis for substantial economic benefits for China (supplemented by the China – Japan – Korea (CJK) trilateral trade agreement under construction, and the massive Belt and Road Initiative to deepen integration in intra-Asian supply chains), will also particularly protect the Chinese capacity to use State-Owned Enterprises (SOEs) as an instrument of economic and political influence [3]. Chinese participation in RCEP will increase its real national income by $100 billion in 2030, compared with the baseline scenario, offsetting about one-third of the negative effects of a prolonged trade war. Taken together, RCEP and CJK will offer a complementary path for China to deepen engagement in the region. Asia-Pacific countries do not want to choose between the U.S. and China, they want to cultivate good relations with both. As to China’s future accession to the CPTPP, all these prerequisites make it easier. The criteria for analytical evaluation of investment proposals in the framework of the formation of investment programs are proposed to be determined depending on the direction of a reconstruction project on a competitive basis. Competitive selection of investment proposals is usually carried out on basis of expert assessments within the framework of the competition.
3 Results 3.1 Pitfalls of the China’s Trade Policy 3.1.1 China’s Comparative Advantages in Export Prices According to the statistics, the China’s export products are mainly concentrated in the electrical and mechanical, textile, and light industry, household appliances, agricultural and sideline products, such as species, the serious anti-dumping area encompasses textiles, garments, light industry, agricultural products, household appliances, bicycles, microwave oven, computer floppy disk, electric fans, etc., most of these export products has obvious price advantage. With more and more manufactured goods entering the international market, and labor-intensive products mainly relying on comparative costs
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and price competition, the China’s export products form greater competitive pressure on similar products in the American market. In the absence of significant increase in domestic demand in the U.S., the sharp increase in exports will inevitably lead to a decline in the price of export products. Therefore, the bilateral trade imbalance determines the emergence and widespread application of anti-dumping, a form of trade friction. 3.1.2 The Lack of Self-discipline at the China’s Export Enterprises, the Existence of Vicious Competition The export of products of the Chinese enterprises tends to be characterized by disorderliness and randomness rather than quality. They do not attach importance to brand making and mainly use price competition to open the international market. However, price competition often leads to anti-dumping measures of importing countries. The Chinese enterprises are not fully prepared to understand the harm of foreign anti-dumping. Judging from the cases that have taken place, the Chinese enterprises have insufficient understanding of the growing harm of anti-dumping. For example let us take Sichuan Changhong Electric Co., Ltd., a Chinese consumer electronic company which is the second largest manufacturer of televisions in China, for example [8]. In February 2002, Changhong announced plans to expand into foreign markets, starting with the United States. This very year, domestic color TV price war continues in full swing, Changhong color TV export to the United States was also accompanied by this kind of price war of market. According to the news reports at the time, Changhong became the first Chinese company to win the market share for color TV sets in the United States, having undercut Japan’s SONY in the price war. However, this crazy growth of market share also brings potential crisis. The price war launched by Changhong in China has brought huge benefits and returns to some extent due to its environment and period factors. However, in the American market, Changhong is always an outsider. Mentioned before with the same data, according to the U.S. market in 2001–2003 color TV industry statistics, the net profit of U.S. manufacturer selling a color TV set is 30.63 US dollars (253.52 RMB if converted into RMB). Due to the two countries’ purchasing power parity (PPP) different levels, it will not be converted into RMB when explaining the problem. It can be showed through the net profit: in the United States under the level of PPP, the profit belongs to $30.63 (the color TV workers’ every hour wage is $15.50, thus, $30.63 is equivalent to a wage for two hours), this is far enough to pay the high operating costs, making the color TV producers profit to be damaged. By the way, the today’s official minimum wage is $7.25 an hour, and 67% of Americans support its raising to $15 an hour, according to a survey conducted in 2019 [2]. Thus, President Joe Biden reaffirmed his support for raising the federal minimum wage – gradually – to $15 an hour [6]. 3.1.3 Chinese Exports are Overly Concentrated in the United States About 80 per cent of China’s exports are concentrated in the North America and in the Western Europe. Their economic policy (especially economic powers like the United States) determines the implementation of anti-dumping measures for the Chinese export commodities.
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3.1.4 Ineffective China’s Response to Anti-dumping Due to the unsound anti-dumping law and mechanism, lack of professional talents and enterprises’ weak anti-dumping consciousness, China’s anti-dumping work lags seriously. In more than 500 anti-dumping cases against China, at least 50% of the involved enterprises failed to respond in time or failed to respond effectively, making nearly 80% of the anti-dumping cases lost. 3.2 The Anti-dumping Effects 3.2.1 Impact on Chinese Electric Goods Brands Due to the anti-dumping, several electric goods brands have suffered, and had serious losses. According to the final ruling of the U.S. Department of Commerce there is an anti-dumping case against China’s color TV sets, our detailed attention is aimed towards four companies. Among the Chinese color TV enterprises that accounted for more than 90% of the U.S. exports, the Changhong’s dumping margin was the highest, reaching 24.48%. TCL, Konka and Xoceco were respectively 22.36%, 11.36% and 4.35%. The weighted average tax rate of other responding enterprises is 21.49%, and the national unified tax rate of unreported enterprises is 78.45%. 3.2.2 Domestic Companies Will Work as OEMs (vs. ODM) for International Home Appliance Giants Domestic high-tech companies (color televisions are part of the industry) will not be able to achieve success thanks to their own brands or indirect exports, working for manufacturers-giants of the retail network. In order entering the U.S. market, domestic companies must use the brand of international home appliance giants to carry out OEM production for them. Since this is the only option for behavior, the conditions of the international appliance giants will be very demanding, and the profits will be quite meager. One of the samples worth discussing is the so-called an ‘export license’ case of the largest China’s computer servers-maker, the State-Owned Enterprise (SOE) Inspur Group Co., Ltd, which tried struggling to compete with U.S. powerplants. The China’s first commercial high-performance computing systems Tiansuo has been successfully developed by Inspur Group (it is No.1 in the sale of government sectors and No.3 in the world), and it has broken the foreign monopoly in the field of high-performance servers hovever, nevertheless, it is far from being a victory in the battle, especially after being put in a sticky position by the U.S. Department of Commerce put pressure the U.S. chip giant Intel stopped supplying its products to Inspur Group. Though both countries realize that this sort of unilateral sanctions is economically counterproductive (instead of the scenario when the gains are shared by all), nothing can be done. 3.2.3 Anti-dumping Effects Vary from Different Companies The current net profit margin for U.S. color TV exports is only a single digit. Therefore, more than 21.49% of anti-dumping tariffs will mean that these companies can only produce OEM for international home appliance giants. According to the degree of
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dependence on the American market and the difference in resources the enterprises hold, the impact of this anti-dumping on various enterprises is also different. We divided them into 3 categories. The first category is Sichuan Changhong. Since the company relies on the U.S. market for more than 30% there are huge amounts of accounts receivable in the U.S. Anti-dumping will not only cause the company’s exports to the U.S. to be severely hindered but also may lead to the collection of accounts receivable. In general, the risks are high. The second one is TCL. Since TCL and THOMSON have established a joint venture, TCL Holdings, TCL can use the THOMSON brand to sell products to the European and American markets, so the negative impact is minimal. The third category is the other domestic color TV and electric goods companies. Since there are no sales channels, these companies can only produce for the international home appliance giant as OEM but simultaneously, due to small amounts of original exports, the negative impact is not so bad. 3.2.4 Domestic Exporters Will Turn to Other Markets in Future Before Changhong explored the U.S. market vigorously, the latter was not the basic market for exports. The main markets of domestic companies are concentrated in both the Southeast Asia and the Eastern Europe. With the ‘close’ U.S. market, color TV exports must return to these major markets. Being in a different situation as to the U.S. market, China’s color TV companies have adopted the transfer production line to produce goods in the market locally. Thus, Changhong is presented here in Russia, and TCL has its production lines in Vietnam and India. This situation makes it relatively unlikely that domestic manufacturers will be the subject to lawsuits in these markets. Judging from the growth of market size, these markets are still in the growth stage, it can alleviate the pressure of anti-dumping barriers in the European and the American markets to a certain extent.
4 Discussion Because the anti-dumping taxes are only imposed on parts of all the enterprises but not all the companies in this industry, the authors can only use the following illustration how it will influence the accused companies. Because of the increased tax for the accused companies, their cost will increase, it will lead to the increased price and the decreased supply quantity. Through anti-dumping investigations, the duties are oriented to the imported similar products, the price of imported goods will increase accordingly, and the import volume and sales volume will decrease. Therefore, the output and sales volume of similar products of color TVs in the United States will rise. The interests of the manufacturers that produce these products will be guaranteed. The imposition of the duties has narrowed the import volume and pushed foreign products out of the domestic market. The huge number of market vacancies left by the fading out will inevitably be filled by domestic enterprises to increase production capacity. It requires the enterprises to update their equipment, to expand scale and to accelerate their development. Therefore, domestic similar enterprises have increased
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their investment in order of production capacity expanding. On the other hand, antidumping duties increase the price of imported goods, regardless of whether the price is higher than the price of similar goods in the importing country, it will adversely affect the price competition of imported products. Therefore, foreign exporters tend to improve quality to maintain a foreign market share. However, manufacturers of similar products produced by importing countries will increase their capital and expand production due to the protection of anti-dumping duties, and they will not pay attention to the quality of products.
5 Conclusion Thus, the imposition of the duties increases the export cost of products from the enterprises of the respondent country, thereby limiting the alleged countries’ quantity of goods, it determines the decrease of the market share (the decrease of the respondent countries’ quantity of imports). And this reduced market share is filled by the increase in imports from the non-accused countries. The import trade volume of the products involved in the host country during anti-dumping has a ‘trade transfer’ between the accused country and the non-accused country. Anti-dumping protection in specific exporting countries can also cause the trade diversion effects. This effect is for the importing country because the importing country has filed anti-dumping lawsuits against certain imported products and has imposed high anti-dumping duties which increased the sales price of the alleged products and weakened its competitiveness in the importing country market. As a result, its market share has declined; the prices of other unaccompanied products have declined relatively, competitiveness has increased, imports have increased, and the market share has risen. Because of the fact many countries already have extensive trade and investment ties with each other this will inevitably result in the transfer of import sources from one country to another, while causing a trade diversion effect. The trade transfer effect will vary with the anti-dumping tax rate. The higher the anti-dumping tax rate is, the more obvious the trade transfer effect will be. Although anti-dumping will limit imports from the alleged countries and protect domestic industries, the non-accused countries can partially offset this protection by increasing their sales to the target market. If the trade transfer effect is relatively obvious, the restrictions on duties on imports will be smaller than those expected by domestic industries because not only domestically imported competitive enterprises are the beneficiaries of these measures, but the nonsubrogation countries that obtain the net income from the sacrifices of their competitors (the alleged countries) as well. The level of anti-dumping trade transfer effect may also be related to the number of the respondent countries in anti-dumping cases. When there were more than three respondents, the trade transfer effect was much smaller than when the respondent country had only one. The result can be explained: as the number of respondents increases, the number of countries that can increase exports will decrease. The duties are imposed on goods of all the trading partners, the country’s trade volume with all trading partners will be decreased, and there will be no transfer effect.
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References 1. Clausing, K.A.: Open: The Progressive Case for Free Trade, Immigration, and Global Capital. Harvard University Press, Cambridge (2019) 2. Davis, L., Hartig, H.: Two-thirds of Americans favor raising federal minimum wage to $15 an hour (2019). https://www.pewresearch.org/fact-tank/2019/07/30/two-thirds-of-americansfavor-raising-federal-minimum-wage-to-15-an-hour/. Accessed 20 May 2021 3. Dian, M., Menegazzi, S.: The regional comprehensive economic partnership (RCEP). In: New Regional Initiatives in China’s Foreign Policy, pp. 95–117. Palgrave Macmillan, Cham (2018) 4. Goulder, R.: It is not just the taxes and tariffs: Why Biden should reconsider the Trans-Pacific Partnership (2020). https://www.forbes.com/sites/taxnotes/2020/12/22/its-not-just-the-taxesand-tariffs-why-biden-should-reconsider-the-trans-pacific-partnership/?sh=366816b31051. Accessed 18 May 2021 5. Hufbauer, G.C., Schott, J.J., Lu, Z.: China and the trans-pacific partnership: In or out? (2020). https://www.piie.com/blogs/trade-and-investment-policy-watch/china-and-trans-pac ific-partnership-or-out. Accessed 15 May 2021 6. Luhby, T.: Biden continues to push $15 federal minimum wage (2021). https://edition. cnn.com/2021/02/17/politics/15-dollar-minimum-wage-biden/index.html. Accessed 20 May 2021 7. Schott, J.J.: Opinion: Japan needs US to return to CPTPP to expand trade pact (2021). https:// mainichi.jp/english/articles/20210401/p2a/00m/0op/024000c. Accessed 12 May 2021 8. Talalova, L.N., Tian, J.: Case analysis of USA anti-dumping to China’s color TV sets. In: Popkova, E.G., Sergi, B.S. (eds.) ISC 2020. LNNS, vol. 155, pp. 1507–1515. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-59126-7_165 9. Viens, A.: Visualized: Ranking the goods most traded between the U.S. and China (2019). https://www.visualcapitalist.com/visualized-ranking-the-goods-most-tradedbetween-the-us-and-china/. Accessed 17 May 2021 10. Wang, H.: Building towards the RCEP? Reflections on the ASEAN – China FTA. In: Hsieh, P.L., Mercurio, B. (eds.) ASEAN Law in the New Regional Economic Order: Global Trends and Shifting Paradigms, pp. 46–63. Cambridge University Press, Cambridge (2018)
Integration Barriers of Small and Medium-Sized Businesses with Russian Business Ecosystems O. A. Vasilyeva(B) and O. V. Kurasova State University of Management, Moscow, Russia {oa_vasilyeva,ov_kurasova}@guu.ru
Abstract. This contribution is devoted to the study of the attitude of representatives of small and medium-sized businesses of the Russian Federation to potential forms of integration with business ecosystems, to the existing barriers of entry, as well as to possible state intervention in the regulation of relations of Russian market subjects. The purpose of the study is to determine the attitude of representatives of the management level of Russian small and medium-sized businesses to rapidly developing business ecosystems, to determine the level of need for integration, to identify factors that hinder effective interaction. The research methods were the secondary analysis of metadata on the current state of small and medium-sized businesses in the Russian Federation, the analysis of economic indicators of business ecosystems from open Russian and foreign sources, the primary study of the opinions of representatives of small and medium-sized businesses of the Russian Federation in the form of an Internet survey. The result was the development of practical recommendations on overcoming interaction barriers for key participants in economic relations: small and medium-sized businesses, business ecosystems and the state. Keywords: Entry barriers · Business ecosystems · Interaction · Integration · Small and medium-sized businesses
1 Introduction The rapid growth of the number of business ecosystems launches global transformation processes in the world economy. A business ecosystem means a network of organizations, including suppliers, customers, competitors, government agencies, etc., involved in the supply of a product or service through competition and cooperation. Each object in the ecosystem exerts its own influence and is simultaneously affected by other objects. Dynamic relationships are created in which flexibility and adaptability are required for survival in the market, as in a biological ecosystem. Ecosystems are stable in competition and create high barriers to entry for a new market participants [4]. A healthy state economy implies a balance of interaction between all participants in economic relations. However, in the context of digitalization, the resource capabilities of companies are becoming increasingly uneven. The business ecosystem model determines unconditional leadership, the umbrella brand of the ecosystem retains the consumer, databases © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 58–64, 2022. https://doi.org/10.1007/978-3-030-94873-3_8
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and digital processing contribute to the customization of the product and services, technological capabilities strengthen the competitive positions of business ecosystems [5]. On the one hand, the observed processes are natural in the market struggle. On the other hand, the emerging oligopolies of the digital age threaten the independent existence of other subjects of economic relations. Thus, the transformation of the macro-environment has a significant impact on the sector of small and medium-sized businesses in the Russian Federation. The problem analyzed in this paper is the discrepancy of resource opportunities for competition for consumer attention between representatives of small and medium-sized businesses in the Russian Federation and business ecosystems, which creates barriers to integration in the conditions of digitalization of markets.
2 Literature Review Urmetzer, Neely, Martinez, suggested considering the company not as a separate structure in the industry, but as a member of a business ecosystem with participants covering several industries [13]. The business ecosystem consists of a network of interconnected companies that dynamically interact with each other through competition and cooperation in order to survive and increase profitability. The ecosystem includes suppliers, distributors, consumers, government, processes, products, and competitors [6]. Ecosystems have a wide range of shapes, sizes and varieties, while they reflect the following characteristics: – ecosystems allow and encourage the interaction of a wide range of companies and individuals who together can create, scale and serve markets that go beyond the capabilities of any individual organization. – subjects create more and more complex algorithms of work, deploying technologies and tools for interaction and cooperation. There is dynamism and hidden potential for more and more productive development of ecosystems. – all participants in the relationships, including customers, are bound by common interests, goals and values that encourage them to collectively develop, maintain and protect the ecosystem as a common “asset” [7]. At the same time, ecosystems create high barriers to entry, since potential participants should not only duplicate or improve the main product, but also compete with the entire system of independent complementary companies and suppliers that form the network [11]. Is it possible for small and medium-sized businesses to survive in the current conditions, as well as to find an acceptable form of integration with the business ecosystem? In Russian practice, entrepreneurship is a “bottleneck” due to the imperfection of legislative, executive and market mechanisms. At the same time, work has been recently underway to develop the small business sector, as evidenced by the Strategy for the development of small and medium-sized businesses in the Russian Federation until 2030 [3]. The Unified Register of Small and Medium-sized Businesses in the Russian Federation includes 221640 small business entities. As part of the implementation of the National Project “Small and medium-sized entrepreneurship and support for individual entrepreneurial initiative”, the Government of the Russian Federation allocated
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481.5 billion rubles. The target indicators include an increase in the number of people employed in the field of small and medium-sized businesses to 25.0 million people; an increase in the share of small and medium-sized businesses in the GDP of the Russian Federation to 32.5%; an increase in the share of exports of small and medium-sized businesses in the total volume of non-primary exports to 10%. The state allocated 2.5 billion rubles to improve the conditions for doing business activities, 261.8 billion rubles were allocated to expand access to financial resources. 167.9 billion rubles and 8.5 billion rubles, respectively, were allocated for the acceleration of small and medium-sized businesses and the popularization of entrepreneurship [9]. These measures on the part of the state should stimulate entrepreneurship in the Russian Federation, but it takes time to increase the level of trust and debug the mechanisms of public-private partnership. At the same time, the impact of business ecosystems on the viability of small and mediumsized businesses is rapid in terms of the degree of change in the macro environment and more significant in terms of the coverage of consumer markets, which reduces the effect of government measures.
3 Methodology Within the framework of this work, the authors conducted an empirical study. The purpose of the study was to determine the attitude of representatives of the management level of Russian small and medium-sized businesses to rapidly developing business ecosystems, the level of need for integration, and to identify factors that hinder longterm interaction. The authors suggest that the identification of key barriers and factors of mutually beneficial long-term cooperation will allow Russian small and medium-sized businesses to develop systematically in the conditions of strengthening the positions of business ecosystems. The theoretical and methodological basis for conducting this empirical research was the work of such foreign experts as Barefoot, Curtis, Jolliff, Nicholson, Omohundro, [2], as well as Russian researchers Tolstykh and Agaeva [11]. The theoretical methods of this study were analysis, generalization and synthesis. In the course of the study, a critical analysis of scientific literature, a secondary analysis of documents, and an online survey were used. The structure of the questionnaire included a list of the 21st actively developing business ecosystem in the Russian Federation according to the Moscow Department of Information Technologies and the ICT. Moscow platform: Yandex, Tinkoff, Sberbank, MTS and others [10]. The novelty of the work consists in obtaining representative data from representatives of small and medium-sized businesses regarding potential forms of interaction with leading business models on the Russian market. The practical significance lies in the recommendations aimed at increasing the level of interaction of subjects of economic relations.
4 Results The sample of the study conducted by the authors was made up of small and mediumsized business owners, as well as top managers and partners. The main business areas in which respondents are involved are: construction, real estate; marketing, advertising,
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PR; banks, investments, finance; manufacturing, agriculture and others. The majority of respondents are representatives of small businesses with up to 100 employees. Representatives of medium-sized businesses (from 100 employees) made up 11% of the total number of respondents. At the same time, the main legal forms of companies were: LLC and IE (47.5% and 37.3%, respectively). The majority of companies whose representatives took part in the survey have been present on the market for more than 10 years – 33.6%. Companies that have been present on the market for 1–3 years and companies that have been present on the market for 3–5 years took the second and third places, respectively (23.2% and 15.1%). Total sample size: 491 respondents. Among the surveyed representatives of companies, 43.7% indicated that they did not interact with business ecosystems, and 13% of respondents admitted that they heard such a formulation for the first time. The reason for such low awareness and a small percentage of interaction with business ecosystems is primarily that business ecosystems in the Russian Federation appeared relatively recently, most of which are only developing. Today, even the most developed digital business ecosystems in Russia, such as Tinkoff and Sberbank, are still in the stage of active growth – during this period, “scaling of these business ecosystems around the client” is taking place [1]. Interestingly, 22.2% of respondents noted the frequency of interaction with the business ecosystem, which indicates the prospects for further cooperation. At the same time, 5.9% of the surveyed representatives of companies noted that they already cooperate on a regular basis with business ecosystems, and 4.9% admitted that their company is a part of the business ecosystem. Only 10% of respondents said that the interaction was a one-time thing. Consequently, small and medium-sized businesses are only at the initial stage of developing cooperation with business ecosystems in the Russian Federation. In addition, the absolute majority of business representatives surveyed (78.8%) believe that long-term cooperation with business ecosystems is possible, while the remaining 21.2% of respondents do not think so. These data indicate the readiness of small and medium-sized businesses not only to interact with business ecosystems on a one-time basis, but also to develop this cooperation on a regular and long-term basis. For a more detailed understanding of the prospects of such cooperation, the respondents were offered several options for interaction with the business ecosystem. The most preferred option (46.6%) among the respondents was “joint short-term collaborations in related business areas”. Obviously, this answer illustrates the cautious desire of business representatives to cooperate, but respondents do not yet have confidence in cooperation with the business ecosystem. Since this type of cooperation is relatively new, it is not always regulated, and the business ecosystem is a system with many resources that is difficult to resist, in most cases, unfortunately, small and medium-sized businesses, and not the ecosystem, remain the losers. This fact is illustrated by many cases. The most famous and scandalous of which is the unfair cooperation of Amazon. The campaign attracted brands to cooperation, and then copied the most popular products and released them on its site [8]. The option “gradual integration of business into the eco-system” was chosen by 35% of respondents. Next in popularity are the options where either the business ecosystem acts as a retailer (13.8%), or the respondent’s company (11.4%). Among the criteria for the success of business ecosystems in the market, first of all, the following were named:
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integration online and offline (45%), the quality of services provided and high service (40.9%), the ability to quickly introduce innovations (38.9%), the creation of multiple “points of contact” with the consumer (38.9%), effective interaction within the structures included in the business ecosystem (low transaction costs, strict requirements to the quality of work) (30.5%), the availability of resources (the ability to invest in any sphere, charity, etc.) (27.9%), ease in scaling the business (no physical restrictions) (26.3%), the ability to accumulate and redistribute resources (20.8%), the strategic vision of the leader and the management team (19.3%), the combination of products and services in nonoverlapping verticals (mobile communications, banking, food technology, streaming, e-commerce, etc.) (18.5%), the closeness of the ecosystem (the company itself produces and services its products) (13.8%). From the point of view of partnership, the following business ecosystems were the most attractive for respondents: Sberbank (47.3%), Yandex (42.6%) and Tinkoff (26.1%). This is followed by Apple (18.9%), Ozon (18.7%), Avito/Yula (16.3%), AliExpress (14.5%) and others. First of all, this is due to the fact that these business ecosystems are the most developed in the Russian Federation. While most business ecosystems are still at the stage of development, when the variety of services is being transformed into a single ecosystem, Sberbank and Tinkoff are already scaling their ecosystems around customers. The main barriers to entry into the business ecosystem, according to respondents, are pricing (36%), tax tariffs and benefits (33%), the volume of initial investments (23%). At the same time, when answering the question “are business ecosystems a threat to small and medium-sized businesses”, 27.9% of respondents believe that they are not. However, 21.4% of business representatives are sure that business ecosystems are a threat, since it is not possible to compete with them due to limited resources. Only 16.9% of respondents believe that business ecosystems are not a threat, but an opportunity, as they give an impetus to the development of small and medium-sized businesses [12, 14]. Among the conditions necessary for small and medium-sized businesses to develop and cooperate with business ecosystems, first of all, were named: financial support from the state (65%), public projects in support of small and medium-sized businesses (39%), as well as innovations and a unique trade offer (39%). Indeed, the financial support of the state will help to overcome the main barriers to entry into the business ecosystem: pricing, the volume of initial investments, tax tariffs and benefits. Public projects in support of small and medium-sized businesses are also aimed at overcoming the main barriers caused by the lack of resources compared to business ecosystems. Innovations and a unique trade offer will allow small and medium-sized businesses to compete adequately in the market with business ecosystems due to the uniqueness and irreplaceability of their product.
5 Conclusion The development of business ecosystems in the era of digital transformation is due to the need for synergy in achieving goals and rapid adaptation to changes in the external environment. Due to the active development of business ecosystems with a large number of resources and isolation, such forms of competition as an oligopoly or monopoly are formed. In this situation, small and medium-sized businesses become the most vulnerable, which can lead to an imbalance in the economic system of the Russian Federation.
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To reduce the possible negative consequences, regulatory measures should be developed for all subjects of economic relations. State authorities need to increase the level of trust among Russian businesses. In order to develop flexible schemes for effective public-private partnership, it is important to optimize tax mechanisms, reduce bureaucracy, and provide systematic financial support. The census of small and medium-sized businesses in the Russian Federation is the first step to understand the real situation in this sector of the economy. Support in the promotion of goods and services is also required. Regular informing of the Russian population about the quality of products will help to form consumer loyalty and to balance competitive conditions in the market. Representatives of small and medium-sized businesses should accept the fact of inevitable coexistence with business ecosystems and tune in to the transformation of their own business models. It is necessary to develop new products that meet the needs of the digital consumer and focus on entering new high-margin markets. Using creativity and innovations to reduce the cost of production or provide access to new customers, continuous training of employees, improving the efficiency of business processes, stimulating new cooperation to solve user tasks will allow small and medium-sized businesses to develop in new conditions. Business ecosystems should work out investment mechanisms to support small and medium-sized businesses. The targeted use of information technologies and digital resources for the communication purposes of small and medium-sized businesses could become one of the forms of integration. A cyclical change of advertising messages addressed to potential consumers in a time period established by agreement would contribute to a conditional communication balance. Thus, the ecosystem thinking of all subjects of economic relations will allow coordinating complex integration processes, regulating interaction barriers and monitoring the emerging negative changes in the business landscape. The rapid development of preventive measures is possible only on the basis of a dialogue with all interested parties.
References 1. Bajurak, Y.: 5 stages of the evolution of banks’ digital ecosystems (2020). https://www.cossa. ru/special/ecosystems/277077. Accessed 29 Apr 2021 2. Barefoot, K., Curtis, D., Jolliff, W.A., Nicholson, J.R., Omohundro, R.: Defining and measuring the digital economy (2018). https://www.bea.gov/research/papers/2018/defining-andmeasuring-digital-economy. Accessed 01 May 2021 3. Decree of the Government of the Russian Federation No. 1083-r “On approval of the Strategy for the development of small and medium-sized businesses in the Russian Federation for the period up to 2030” (2020). https://rulaws.ru/goverment/Rasporyazhenie-Pravitelstva-RF-ot02.06.2016-N-1083-r/. Accessed 15 Dec 2020 4. Deloitte: Trends – Business ecosystems come of age (2017). www.deloitte.com/us/businesse cosystems. Accessed 21 Apr 2021 5. Gudkova, T.V.: Global chains of added value in terms of digitalization of the economy. Russian J. Econ. Theory 17(1), 53–64 (2020) 6. Lukyanov, S.A., Drapkin, I.M.: Global value chains: effects for integrating economy. World Econ. Int. Relat. 61(4), 16–25 (2017). https://doi.org/10.20542/0131-2227-2017-61-4-16-25
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7. Malecki, E.J.: Entrepreneurship and entrepreneurial ecosystems. Geogr. Compass 12(3), e12359 (2018). https://doi.org/10.1111/gec3.12359 8. Mubarakshina, G.: The WSJ has caught Amazon in using data on sellers of popular products to produce the same under their own brands (2020). https://vc.ru/trade/122598. Accessed 25 Apr 2021 9. Passport of the national project “Small and medium-sized entrepreneurship and support of individual entrepreneurial initiative” (2020). http://government.ru/info/35563. Accessed 11 Dec 2020 10. Rusbase: Moscow authorities presented a map of the city’s digital ecosystems (2019). https:// rb.ru/news/digital-ecosystem-map. Accessed 22 Apr 2021 11. Tolstykh, T.O., Agaeva, A.M.: Ecosystem model of enterprise development in the context of digitalization. Models Syst. Networks Econ. Technol. Nat. Soc. 1(33), 37–49 (2020). https:// doi.org/10.21685/2227-8486-2020-1-3 12. Trabskaja, J., Mets, T.: Ecosystem as the source of entrepreneurial opportunities. Foresight STI Governance 13(4), 10–22 (2019). https://doi.org/10.17323/2500-2597.2019.4.10.22 13. Urmetzer, F., Neely, A., Martinez, V.: Business ecosystems: Towards a classification model. P&OM World Congress 2016, Havanna, Cuba 8(1), 18–34 (2018). https://doi.org/10.20586/ joms.8.1_18 14. World Economic Forum: Digital transformation initiative (2017). https://www.weforum.org/ whitepapers/digital-transformation-initiative. Accessed 06 Aug 2021
Stability of the State System in the Context of Digital Transformation V. A. Kornilovich1 , V. I. Vasilenko2 , and O. A. Kulikova3(B) 1 Federal Research Sociological Center of The Russian Academy of Sciences, Moscow, Russia 2 Russian Presidential Academy of National Economy and Public Administration, Moscow,
Russia 3 State University of Management, Moscow, Russia
Abstract. The aim of the study is to identify changes in the functioning of the state system caused by the digitalization of public relations. The logic of the research consists in a consistent analysis of changes in the theoretical models explaining social reality and related changes in the organization of the political system and political practices. The research tasks are: 1) to reveal the term of “smart crowd” and how this term differs from the term “public”; 2) to determine the characteristics of the digital crowd; 3) to understand how political communication is transformed into “smart management”. The methodological ground of the study is a new understanding of the interaction of the social system with the external environment. The technological features of the digital space significantly expand the communication and interaction of citizens in the global network, where traditional approaches have become mediated by the online space. Digital platforms of “direct” democracy, online digital institutions, political holograms, etc. show the potential of social media influence on the political process. Keywords: Digital transformation · Direct democracy · Smart crowd · Smart governance
1 Introduction The transformation process is based on dialectical overcoming of existing elements of the old order, the development of new goals and the formation of new specific ways to achieve them. This is a process of self-organization, characteristic of the adaptive algorithm of social changes. Changes in system parameters do not violate the contours of the whole system, but only reflect long-term trends: the growth of quantitative and qualitative changes in individual elements of the state system structure. Under conditions of deliberate stimulation of the digital transformation of all social spheres by the authorities, the limited ability of the political system and the state to ensure the manageability of social and political processes begins to fail more clearly. The digital transformation of the structural components of the state system forms new socio-organizational forms and practices of political interaction. The transition of initially networked/digital institutions into offline political processes unfolding before © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 65–73, 2022. https://doi.org/10.1007/978-3-030-94873-3_9
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our eyes indicates the emergence of new resources of power in the society and the exercise of influence on the political organization as a whole. The semantic content of a high-tech digital resource and a new political force is expressed by the idea of “direct democracy” which potentially ensures mass involvement of citizens in various political and social processes through the usage of specially created online platforms. The resource potential in organizing political and social participation is determined, on the one hand, by the coverage of the Internet audience which in the Russian Federation makes up 79% of the population, according to the Mediascope WEB Index [11]. On the other hand, it is determined by the influence of the information flow on human consciousness and behavior. In this context, information is considered not as a signal or the meaning of a message, but as the reason and technology for pushing a person to commit any actions (first of all, nudge – to push with an elbow, to push, to suggest an idea). Thus, the depth of the issue of digital transformation of the state system is largely related not to fixing and discussing the observed social facts of the spread of IT in everyday life, but to working out the fundamental problems of the controllability of social processes, social physics, mimicking information and communication technologies.
2 Methodology The research question is to identify changes in the state system functioning which are caused by the digitalization of public relations. The research logic is in a consistent analysis of changes in theoretical models of explaining social reality and related changes in the organization of the political system and political practices. “Public” vs “Smart crowd”. The idea of determining the influence of an individual on the society, embedded in the description and explanation of social reality, provides the basis for determining properties of socially significant values as public ones, based on the properties of their bearer – the public. The public is contrasted with the mass, the crowd and is considered as the ability of the allocated social integrity to critically perceive information, to develop independent judgments and as the involvement in the processes of political communication. Indicating the initial conditions for the formation of the public (the emergence of printing, the development of mass communication media and the increase in the education of citizens), the reverse process is indicated: with the development of mass communication media, the public begins to lose the properties that distinguish it from the mass. The term “smart crowd”, proposed by Rheingold [8], characterizes one of the properties of the mass – the ability to social self-organization when using information and communication technologies. Defending citizens’ own opinion, using the network form of horizontal links and communication, can lead to the formation of new socioorganizational forms of political activity in the online environment and in the offline space [1]. These include political flash mobs, political holograms, virtual rallies. In our opinion, the euphemism of the term “smart crowd” veils more important processes taking place in our society. This is the transition of the public to the state of the crowd/mass and the institutionalization of a new actor with a strong IT resource for exercising power and management. The change in the status of the public in political communication, and, accordingly, the cultural and ethical imperatives inherent in it, required the scientific substantiation of
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new concepts that explain the changes that have already occurred. An example of this is the emergence of the concept of public value management, where the identification and production of public values move from the number of scientific problems to the practical plane – the organization of the public sphere. Many social facts demonstrate the manifestations of these processes in the modern political discourse and political practice. The manifesto of the new political force: “No one can know better than millions of interested people what exactly needs to be changed in our life”, in some part coincides with the policy of state and municipal management digitalization and characterizes properties of a social subject – mass/individual diversity and a formation mechanism of a subjective factor in the implementation of functions of political power and management – spontaneous social processes (social self-organization) [4]. In the reform of the public administration system, in terms of the provision of public services in a digital format, in the output of authorities and political parties to a direct interaction with the citizens of the country, there is a tendency to replace the content of the concept “public” with a simple indication of the subject of political communication, that includes social groups, people, citizens. The nature of the transformation is determined by the priority of the country’s democratic development and is accompanied by the creation of the necessary conditions, infrastructure, procedures and forms of social participation (electronic voting, open data of authorities, public discussion of draft decisions of authorities, active citizen, Russian public initiative, etc.). The question arises what properties does the mass of people acquire as a subject of political communication, preferring interaction through electronic media and permanently present in the virtual space? The properties of a “smart crowd”. “New environment” was formed in the process of the society informatization and has some side effects along with the positive ones: the expansion of communication opportunities for a mass audience, opportunities for social participation (the connection of global and local aspects in real time, the coverage of interaction participants). The compression of the perception of social problems (limited by the circle of communication), the predominance of passive forms of existence that are not focused on the development of passionarity and socially significant transformations are indicated by Castells [1]. One of the hypotheses is that people who prefer online media and online interactions have little cultural and social capital. In terms of the interaction market, it defines the presence of different amounts of cultural capital and emotions in different social groups that they can offer in the interaction market, and different opportunities for access to each other. Toschenko explains the appearance of a peculiar group of “NEET-youth” (Not in Employment, Education or Training) in the social structure by the facts of a disadvantaged social position (lack of broad social ties, low level or quality of the received education, lack of work experience) [9]. Kravchenko complements the description of the nature of social transformations with the development of centrifugal mobility based on digital technologies and the delocalization of human relations which goes beyond national societies [5]. In our opinion, these trends have a direct impact on the ability of the authorities to ensure the manageability of internal socio-economic,
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socio-cultural, technological processes and opens up additional opportunities for external interference in the internal political processes of the country. Thus, the properties of the mass/crowd, in contrast to the public, are manifested, in the form of an amorphous formation, in the dominance of emotions, stereotypical thinking, intellectual passivity; that explains the susceptibility of the masses to a manipulative influence. The tendentiousness of social transformations is manifested in the society fragmentation, in individualized forms of existence which are passive in their nature. The widespread use of the ICT paradigm in the public administration of Russia and the purposeful formation of various kinds of information and communication systems by the authorities as an infrastructure for the provision of public services and political communication contribute to the consolidation of these properties among the major part of the country’s citizens, manifested in the process of interaction between society and state. In this way, political communication and subjectivity are replaced by regulation/management and the manipulation object. In turn, the reduction of political practice to the result of managerial influence, rather than political dialogue, allows us to raise the question of the possibilities and the influence degree of various strong-resource groups (the dominant subject [4], who has a new power resource) on the construction of value orientations of social groups and behavior models of citizens in the political sphere. In other words, the stability of the state system or its disintegration now depends on the values, the perceived group goals of these new actors.
3 Results Transformation of political communication into “smart management”. Let us pay attention to a new idea of the interaction of the social system with the external environment: the transformation of signals from the external environment into information cannot be considered only as a process of environmental influence on the social system. Information is always unexpected and cannot be entered into the system from the environment. This means that information cannot be brought into the system, it must be developed internally. The perceiving subsystems – the authorities, political parties – have to do some work and integrate the information coming from outside into their internal system of political relations and communication. The unexpectedness of information is manifested due to the presence of expectations in the society, individual and collective intentions in relation to the future [10]. The authorities, presenting information to society in the form of ideologies, forecasts, concepts, laws, strategies and projects, introduce new cause-and-effect links into public relations, thereby forming the properties, scale, quality and volume of socio-economic and political processes. External information determines only the change in the environmental conditions of the social system. It can be argued that information and communication were the fundamental sources of both the government itself and its opposition, the basis of domination and subordination, stability and social changes in operationally closed self-developing social systems, where there can be no input or control influences. However, the intensification of the digitalization processes in the political sphere and the active use of appropriate tools have led to the delocalization of relations, to the expansion of access and dissemination
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of information outside the borders of national states. When the boundaries of the production and dissemination of information via the Internet were removed, there was a redistribution of the power resource and the emergence of new actors (including external ones) in the political system of a particular state. The technologies at their disposal that enable to stimulate actions of an individual and specific social groups, as well as to demonstrate the phantoms of social self-organization of citizens can qualitatively transform the political landscape and achieve the launch of a new political function related to the plebiscite dictatorship. The question seems logical: should citizens meet face to face in order to feel solidarity? Thus, the digital transformation resulted in the deformation of the state system in terms of organization, mobilization of public activity and political communication, that led to the loss of part of its function for the ruling group – the production of information. This judgment is also true if the authorities themselves already use ICT for their own purposes or have incorporated new actors into their structure – holders of an information and communication resource.
4 Discussion Today, it is not enough to consider the state system and political relations in society at the level of individual links of the power-management vertical without taking into account the special role of organized and spontaneous social processes, explicit and latent processes of social group formation in them. The made conclusions are confirmed by a number of facts. A political experiment on conducting digital voting in the elections of deputies of the Moscow City Duma in the autumn of 2019 showed the insufficient use of the resource mos.ru to mobilize voters. There was no mass involvement of citizens in the voting process and social self-organization: 10,396 people out of 11,000 registered on the Moscow Government platform for electronic voting cast their votes on the election day. According to the experiment results, it is noted that the expressed request for the introduction and qualitative development of electronic voting is formed to a greater extent among young people. Here we return to the property of the political communication subject who prefers interaction through electronic media and is permanently present in the virtual space. The creation of the first COVID-19 vaccine by Russian scientists can serve as a basis for national pride. A massive campaign to vaccinate the population, taking place through all official media channels and online media, in theory, should give rise to directed social processes. Nevertheless, the summary data by country gives us the opposite picture (Table 1) [3]. The share of vaccinated people in Russia in relation to the whole country population is 7.7% as of April 27, 2021. In February, this ratio was 1.5%. This result is interpreted by us as the degree of public confidence in the information broadcast by officials, mass media and social services of the Internet expressed in action. In this case, we should talk about the manifestation of the dysfunction of the state system in terms of the ability of the ruling groups to produce information, and the ability of the information and communication infrastructure to organize political communication. During the mass protests in Hong Kong in 2019, Western experts were able to record the increased activity in the use of pro-Chinese bot accounts. However, the increase in
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V. A. Kornilovich et al. Table 1. Data on vaccination in Russia and the world (27.04.2021 at 10.25 Moscow time) Country
1
Cambodia
2
Seychelles
3
Israel
4
Great Britain
5 6
Vaccinated
Percentage of the population
1293000
76,6%
63686
64,7%
5383000
58,9%
33500000
50,3%
Qatar
1394000
47,7%
Chile
7946000
43,7%
7
USA
138600000
42,0%
8
United Arab Emirates
3480000
38,4%
9
Hungary
3576000
36,6%
…
…
57
Russia
11300000
7,7%
Source: authors.
the number of such accounts and reaching a maximum in August 2019 led to a decrease in their effectiveness to zero. During the protest actions, the effectiveness of this service proved itself only in the case of stimulating (naj) a single collective action. The use of digital tools for solving organizational tasks of the state and maintaining the stability of the state system has significant limitations.
5 Conclusion Most scientific publications on the topic of digitalization of public administration, on the development of the digital economy do not contain a critical assessment of the situation. Nevertheless, the impact of ICT on the sphere of public administration is multi-component and manifests itself in the form of changes at its various levels. It demonstrates a high degree of adaptability of society to digital innovations and at the same time a reduced readiness of official authorities to reflect challenges and risks. For modern society, these issues are associated with the construction of new supraconstitutional values regarding the formula for the society consolidation, the significant parameters of the public sphere, its institutional system, the normative-value construct that regulates relations in new socio-political and technological conditions. ICTs give only the illusion of expanding political space and political participation, so we consider the statements of a number of researchers who believe that digitalization and networking of political relations inevitably democratize the established order of power administration to be untenable. In the era of the domination of the mass media, the development of social networks, the diversity of broadcast information, we observe that the public consistently becomes a mass/crowd and the same object of manipulation. The influence of the global ICT paradigm on the condition of the state system, from the point of view of institutional changes, is manifested in maintaining the gap between
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formal and informal institutions, in the intensive introduction of innovations. The result is a violation of the integrity of the social system, the imbalance of its individual parts, excessive digital inequality of territories, the population and individual social groups. In this case, we should talk about the actualization of the most difficult task for the authorities – maintaining the stability and security of their own state system in the conditions of deliberate stimulation of the digitalization of public administration. Based on the public position, the Party of Direct Democracy sees its goal of presence in the political field in the electoral struggle of the cycles of 2020 – 2021. Despite the orientation of using new technological approaches to decision-making, the potential electorate of the party in social media is minimal. 509 users have subscribed to the official Facebook page of the community, the figure in the Vkontakte social network is slightly higher – 702 subscribers. At the moment, the party program does not allow us to single out the nuclear electorate and the main ideas, with the exception of “the voter knows better”. From what was said earlier, we can make an assumption about the initiation of the project in order to popularize and promote the electronic format of voting by elections. We should also note that voting via electronic and remote forms is used in Russia, acting as a new vector for the abolition of “electoral slavery” within the framework of the “Mobile Voter” mechanism. The first experiment on digital voting was conducted at the elections of deputies of the Moscow City Duma in 2019. From the point of view of user turnout, the first experience was successful – from 11 thousand registered people on the platform of the Moscow Government mos.ru, 10,396 cast their votes in the election. Along with this, the voting results showed an extensive pool of problematic aspects of the implementation of the electronic will expression, including: technical failures (the equipment could not withstand the load and the blockchain platform was turned off several times); imperfection of the legislative framework; vulnerability of the system (voters had the opportunity to vote in various districts). Experts also highlight a problematic field in terms of ensuring the secrecy of the vote in the implementation of active suffrage. Along with various difficulties, the Moscow experimental experience of electronic voting gave a vector for the development of the voting system as a whole, identified the “pain points” of the functioning system, which will allow in the future to effectively scale the experience for the electoral cycles of 2021 and 2024. The further course of reasoning about innovative practices of digital participation leads us to the virtualization of public space. One of these mechanisms is the so-called “political holograms”. We emphasize that, despite its virtual nature, a hologram can become a tool for representing various socio-political actors [2]. In recent years, the introduction of holograms into the socio-political discourse has been taking place both on the part of the civil society, political leaders and associations. For example, holographic representations were used in the presidential elections in France (as part of the election campaign of the chairman of the Left Party Jean-Luc Melenchon in 2017), the campaign for the post of Prime Minister of India (the election campaign of the opposition candidate Narendra Damodaras Modi in 2014) [12], in the political activities of Turkish Prime Minister Recep Erdogan in 2014. It is worth noting the Russian practices. During the presidential elections in 2018, Tyumen students developed the application “Photos with
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Putin”, in which users could take a photo with the leader of the state, dressed in a kimono suit. The protest potential of political holograms deserves special attention. For example, the construction of holographic images in Madrid, Spain, was a reaction to the introduction of a law restricting demonstrations near government buildings or attractions. In this regard, it is appropriate to mention the categorical apparatus and the term “smart crowd”, characterized by the use of new information and communication technologies for self-organization. The researcher predicted the importance of “smart crowds” in defending the population’s opinion, including leading to another form of political activity of citizens – the so-called political flash mobs. In this case, the “smart crowd”, based on network horizontal principles, led to the activation of the protest movement not only in the online environment, but also in the offline space [6]. A new form of digital activism, identified by us in the framework of the study, is virtual rallies. Spontaneous online rallies against the self-isolation regime were held in a number of Russian regions, including Rostov-on-Don, Nizhny Novgorod, Krasnoyarsk, Moscow and St. Petersburg, without the leading role of any institutionalized actor. The technological platform for holding virtual rallies was the cartographic service “Yandex. Maps”, an external organization that tests the capabilities of the system, with the functional block “Conversations”, where users left comments en masse, mainly near the administrative buildings of the authorities. A new type of digital activity requires a better understanding of political risks and development prospects. The modification of communication technologies for the use of the Internet promotes extensive involvement without any centralized control. If the social networks of the “twitter revolution” acted as communication tools for the protesters of the “Arab Spring”, then already in Hong Kong, messengers, as well as digital products such as Uber, Tinder, and even AirDrop, were actively used not only for communication, but also for coordinating actions in the offline space. The risks of virtualization of rallies are largely due to the anonymity of the protesters, the permanent nature and complexity of counteraction [7]. At the moment, there is no categorical apparatus of a “virtual rally” in Russian the legislation. Along with this, attempts to hold mass online rallies after the April precedent were carried out both by the systemic opposition – a rally in honor of the birthday of the leader of the LDPR party, and by the non-systemic campaign “No!” (the number of views on YouTube is 18.7 thousand), the Pirate Party of Russia (the number of participants in the action is 40 users). It should be noted that in the Rostov region by the virtual rally, the procedure for issuing passes was changed because of the difficulty of obtaining them. The Center for Political Conjuncture predicts new types of spontaneous digital protest activity, including virtual riots and digital strikes. In our opinion, virtual rallies are a new format of digital sociopolitical activity of citizens. At the same time, the virtualization of protest activity is more likely to have the character of a “digital simulacrum”, contributing to the channeling of protest into a virtual format of “steam release”. It should be noted that online protests in the plane of cartographic services, as alternative communication channels, have the potential to transform into conventional forms of virtual flash mobs with a positive intention.
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Thus, the analysis of the transformation of practices and the consideration of new technological opportunities for political and civic participation allowed us to establish that the technological features of the digital space significantly expand communication and interaction of citizens in the global network, where traditional approaches have become mediated by the online space. Digital platforms of “direct” democracy, network digital institutions, political holograms, etc. show the potential of the impact of social media on the political process.
References 1. Castells, M.: The Rise of the Network Society. Wiley-Blackwell, Oxford (2010) 2. Fedorchenko, S.N.: Political hologram: analysis of technologies and scenarios for the development of the digital phenomenon. Contours Global Transform. Politics Econ. Law 13(2), 212–228 (2020) 3. Kommersant: Joint trials of the Sputnik V vaccine with AstraZeneca (2021). https://www. kommersant.ru/doc/4702487. Accessed 27 Apr 2021 4. Kornilovich, V.A.: Social determinants of the organization of state strategic management. Bull. Inst. Sociol. 11(10), 126–140 (2020) 5. Kravchenko, S.A.: Digital risks, metamorphoses and centrifugal trends in the youth environment. Sociol. Res. 10, 48–57 (2019) 6. Mauri-Rios, M., Pont-Sorribes, C., Perales-Garcia, C.: The invisibility of social movements in international press coverage of the Catalan sovereignty process. Scottish Aff. 29(2), 179−197 (2020) 7. Odou, P., Roberts, G.H., Roux, D.: Co-producing cyber protest: mesomobilization in the digital age. Consum. Mark. Cult. 21(1), 42–64 (2018) 8. Rheingold, H.: Net Smart: How to Thrive Online. The MIT Press, Cambridge (2012) 9. Toschenko, Z.: Precariat: From a Proto-Class to a New Class: A monograph. Nauka, Moscow (2018) 10. Vasilenko, L.: Fractal-synergetic approach to the research of entrepreneurship in the non-profit organizations. Wisdom 1(12), 62–72 (2019) 11. WEB-Index: Internet audience in Russia (2020). https://webindex.mediascope.net/. Accessed 27 Apr 2021 12. Zain, A.: Rise of Modi’s techpopulism in India. J. Cult. Stud. 6(1), 199–208 (2019)
Ways to Improve Law Forms in the Context of Digital Management Transformation Yu. A. Myshko1(B) , A. A. Bochkov2 , and P. V. Gurschenkov2 1 State University of Management, Moscow, Russia
[email protected] 2 Vitebsk State University, Vitebsk, Republic of Belarus
Abstract. The digital transformation of management requires the creation of a “smart” regulatory and law enforcement mechanism. This implies the search for flexible management structures, traditional and electronic tools for realizing the potential of the state and civil society. The purpose of the study is to determine the directions of improving the forms (sources) of law in society of the VI technological order. Methods: methodological pluralism, combining economic (innovative) determinism and synergetic approach, system-structural analysis, synthesis, legal interpretation, legal modeling. It is necessary to create a meta-theory of the law of the digital transformation society with the doctrinal, legislative and law enforcement development of forms (sources) of law. The electronic system of forms (sources) of law, which corrects formal and substantive characteristics, will allow them to be clearly linked to the subject and method of legal regulation. To legislate the electronic version of regulatory legal acts as a source of law. To create a cluster, a consortium to develop a mechanism for translating social laws, interests and needs of the people into forms (sources) of law. To update the system of sanctions of the norms of law, identifying the criteria for automated application. Keywords: Content of law · Digitalization · Doctrine · Form of law · Legislation · Source of law
1 Introduction “Smart regulation” includes better regulation, less regulation, self-regulation, coregulation. It is focused on the social and economic result, the effect to which the process is subordinated, the discovery of new opportunities and advantages, the lowest resource cost of the system. “Smart regulation” is aimed at introducing flexible management structures, saving money, attracting additional subjects of law-making and management, planning and systematizing the interaction of all participants, using proven combinations of various regulatory methods. The search is carried out for legal tools for point impact in the most optimal places that ensure success, conducting an experiment of legal and economic efficiency, forecasting opportunities and risks, assessing managerial impact, direct and two-way feedback. “Smart management” implies the creation of favorable © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 74–80, 2022. https://doi.org/10.1007/978-3-030-94873-3_10
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conditions for the introduction of technological innovations, a digital legal regime, and an understandable algorithm of actions. Ways to optimize the forms, sources, and content of law concern not only new approaches, ways to improve legislation, but also the organization of legislative activity, the creation of an automated (robotic) control mechanism for an electronic system for the development, adoption, placement, systematization of regulatory legal acts, their implementation and application, achieving the planned result and monitoring the execution. Only the dialectical unity of innovative technologies and new forms of education and the implementation of law is the engine of the development of society, increasing its stability and viability. The internationalization and digitalization of society requires a rethinking of the concept of legal education, implemented at a new strategic, virtual, innovative level of alliances, platforms, clusters, consortiums, infrastructures, public process management systems by a community of scientists uniting social, economic, psychological, legal, and spiritual spheres. The search for the ideal form of the state and law, filling them with democratic, fair, humane content begins from the moment of formation and continues forever. The issues of legality, justice, the authority of these institutions, the sources of power, wealth, stability, peace, well-being, are always in the center of attention of human society. It is believed that the concept of the source of law was introduced by Roman lawyers. It is attributed to Cicero (106 BC-43 BC), who in his famous work “Three Treatises on oratory” pointed out that the Laws of the XII tables are the basis and source of Roman law [2]. However, some foreign authors believed that this concept, if considered not in a philosophical, but in a formal legal sense, is very unsuccessful [5]. The ancient Roman historian Titus Livius (59 BC – 17 AD) in his famous work “The History of Rome from the foundations of the city” considered the laws of the XII tables to be the source of all state and civil law [6]. This is one of the complex, multidimensional and debatable problems of modern domestic and foreign jurisprudence [10]. The forms (sources) of law are in a dialectical relationship with the state and law, are determined by them and affect them.
2 Methodology The methodological basis for the adoption, registration and operation of law is the conceptual development of the meta-theory of the digital society. This requires its legislative consolidation in the Code of Sources Law and the creation of an automated law enforcement mechanism. The metatheory of law includes the legal doctrines of legal education and legal formation. Its development is impossible without the use of information and communication technologies, the achievements of artificial intelligence and robotics. It also combines comparative materials adapted for reception, data from axiology, legal psychology, social conflictology, considering the sources, content and forms of law in their interrelation, dynamics and statics. It is important that they are an effective element of the management mechanism of the state and civil society. Methodological pluralism, converging economic (innovative) determinism and a synergetic, probabilistic approach to the study of state-legal reality allows to obtain an
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objective picture of reality [1]. This makes it possible to determine the transformation of forms (sources) of law in the modern electronic era. Using the methods of analysis, synthesis, induction, deduction, legal interpretation, legal modeling, official and unofficial, international and national, textual and electronic, typical and atypical sources of law are distinguished. These methods allow us to distinguish the forms created by society and the state, externally organized and internally self-determined, the content of which organically contributes to the development and prosperity of society.
3 Results Ultimately, the content of a right determines its form. At the same time, for a long period of history, the personalized state-power form determined the content of the state, law, constitution, national sovereignty, justice, freedom, equality, etc. The whole history of mankind is an attempt not only to proclaim, but also to put into practice fundamental human rights and freedoms, to fill a positive form with natural-legal content expressing the people’s will [4]. The form of law should clearly correspond to its content, social sources, the nature of national sovereignty, the subject, the method of legal regulation, especially when it comes to complex industries and institutions. So far, there is no clear interdependence of content, source and form. This applies to the ratio of legislative and subordinate acts, laws and decrees, international and national regulatory legal acts. The legal system, among other things, should include a legal mechanism of selforganization, self-reproduction, self-adjustment to fill in gaps, collisions. It is obliged to automatically regulate the emergency situations related to unpredicted circumstances, a pandemic, man-made disasters, terrorist acts, protection of national sovereignty and territorial integrity of the state that require immediate legal regulation. In order to eliminate conflicts, establish legal legality, and a strong legal order, it is important to observe the hierarchy of regulatory legal acts (NPA), especially at the regional, departmental and local levels. Legal order should unconditionally dominate over departmental expediency and official necessity, and law enforcement acts (especially of the highest authorities) should not contradict regulatory acts and replace them. The substantive aspect of the law depends on its origin, nature, purpose, formalized, legislative consolidation. The task of the form is to create favorable conditions for the manifestation of the potential of law, its true nature. The rule of law, together with civil society, is interested in activating those sources that contribute to the development, harmony, progress, and the common good. The form should be convenient, clear and effective. The source of law is the objective economic, political, social, spiritual prerequisites (causes) that generate law, the subjective carrier of which is a positively directed social force. Economic determinism, which determines the trends of social development in the past, in the modern society of the VI technological order, turns into an innovative one. The synergetic, probabilistic, and unpredictable nature of society is largely due to the fact that the consequences of significant events were not calculated, their cause-andeffect relationship was not modeled (the collapse of the USSR, the creation of a unipolar
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world, the “color revolutions” in Georgia, Kyrgyzstan, Ukraine, and Moldova). Modern information and communication technologies based on artificial intelligence, the use of Big Data, robotics allow to act with a higher degree of probability, use the mechanism of predictive legal analytics and predict the future. The sources of law are not only the causal socio-economic, political-psychologicalvolitional conditionality of the appearance, change and cancellation of legal norms, their interpretation, but also the product of this activity in the form of various normative legal acts [14]. At the same time, there is a need for such legislation that not only meets the needs of practice, but also anticipates and predicts the consequences. The low effectiveness of laws is caused, first of all, not by their quality, but by the shortcomings of public administration, the imperfection of the law enforcement mechanism and the low legal culture of the performers. It is necessary to develop doctrinal, legislative and practical application of the issues of the research topic. In theory and in practice, the problems of strengthening national (state) sovereignty, implementing genuine democracy through representative bodies, strengthening the influence of civil society on the rule of law, determining the role of “street democracy” and its manifestations, combining democratic and personalized forms of government in the interests of the people, etc. are raised. Electronic subjects of law need legal regulation, the definition of legal personality. There is a danger of total digital control and electronic dictatorship of the state apparatus and oligarchic capital. The implementation mechanism of law is lagging behind, due to the bureaucracy and corruption. People’s sovereignty has not revealed its potential and has not received optimal expression. Legal formal equality did not save from actual social inequality. The main ways to improve this issue: – to create a system, a pyramid of forms, a code of sources of law, linking at the digital level their content, subject, method of legal regulation of public relations, with their legal force and hierarchy; – determine the procedure for the development, adoption, execution of regional, local, departmental regulatory legal acts; – to update the system of sanctions in the legal norm, clearly defining the conditions (legal facts), in the presence of which a sanction occurs, its upper, lower limit, alternative, combined option, etc.; – to legislate the judicial precedent of the highest judicial bodies that generalize judicial practice and create legal norms as a source of law; – to fix the electronic version of the NPA in the legislation, as an official source of law; – to form a cluster, a consortium whose core is a scientific and educational center that unites the efforts of politicians, economists, sociologists, mathematicians, psychologists, IT specialists, lawyers in order to create a mechanism for translating social laws into the legal plane, with the allocation of forms, content, sources of law.
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4 Discussion The digital concept of society places special hopes on information and communication technologies that allow creating a flexible, modernized system of rules based on management and self-government, taking into account typical and individual acts, automatically responding to the challenges of the time. There are three main approaches to the question of the relationship between the source and the form of law: – the form and the source are the same; – the form and the source do not match, they differ from each other; – they are in a dialectical relationship. The content is a dynamic, mobile side of the whole (the unity of all the constituent elements, contradictions and trends), and the form covers a system of stable connections. The philosophical definition of the form characterizes it as the appearance, the look of the object and the internal organization of the content that fixes its structure. There is no state or law outside of the form, where formalization, objectification is an essential sign of law. The form, being static, conservative, stabilizes, creates conditions for a strong law and order and peace, the unification of peoples, the preservation of the territory of the state from the collapse and arbitrariness of the ruling elite, subjective opportunistic interests, the action of destructive forces. We should agree with Korkunov’s point of view that all the original legislation was only an addition, an appendage to customary law [6]. The content of the right is determined by who, in whose interests it was created and to whom it serves. It seems that the most complete content of law is revealed by an integrative (synthetic) concept that combines the norm, its democratic, fair, humane content, sociological justification, state legal and legitimate registration and law enforcement implementation in life. The forms (sources) of law are divided into: primary (NPA) and secondary (doctrines, legal principles), written and unwritten [13], formal and informal, official and unofficial, monocratic and polycratic, typical and atypical, existing on paper and electronic media, operating in a real and virtual environment, for individuals, legal entities and electronic individuals and electronic legal entities, etc. The forms (sources) of law at the stages of law-making and law-realization assume a preliminary doctrinal development, including ideological and psychological components. Atypical sources of law in the Republic of Belarus rely on the weight of authority, the President, the heads of judicial and law enforcement agencies, and the trust of the people. This is due to the mentality, culture, traditions, and historical past. Atypical sources of law include: directives, messages, appeals, protocols of instructions, reports, statements, answers to questions. Despite the fact that they are mostly law enforcement forms, however, they often play a more important role compared to traditional NPAs. The hierarchy of NPA in the Republic of Belarus is the following pyramid of regulatory legal acts, built according to legal force:
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1. Legislative acts include the constitution, constitutional laws; decisions adopted by a republican referendum; acts of international law that have entered into force in the Republic of Belarus, laws (program, codes, ordinary), normative acts issued by the President, while the Presidential Decree is equal in force to the law, if the right to issue it is not granted by law. Given the authority of the President, the established practice, in fact, he is above the law in legal force. 2. Regulatory acts include: the norms of the Government, the supreme judicial bodies, the Prosecutor General’s Office, ministries, departments, local Councils of Deputies, executive and administrative bodies, technical and local acts. At the same time, the hierarchy of technical legal acts is not established. The results of the comparative analysis confirm the need for a strictly defined position of each normative legal act in the legislative structure, depending on the subject of legal regulation [12]. To comply with the hierarchy of the NPA, it is necessary to monitor the Ministry of Justice, the relevant legal services and a high level of legal culture of the performers. The supremacy of the Constitution, codes, and laws is determined by the people’s sovereignty and the leading role of the legislative power (Parliament and the people in a referendum) among other branches of government. The subjects of regulation of legislative acts are the most important types of public relations that ensure full, systematic regulation of priority areas of the state sphere [7]. We believe that the concept of “the most important social relations” require clarification and concretization in the structure of the hierarchy of the NPA. It is necessary to fix the subject of legal regulation for a certain form of legislation in a special official document [8]. A special place among the sources of law belongs to the legal (judicial and administrative) precedent. This is the main source of law for the Anglo-American legal family. Only the highest judicial bodies in these countries create norms of judicial precedent [9]. There is a distinction between judicial practice as a specific form of law [11] and judicial precedent as a source of law. In the Romano-German legal system, judicial precedent is not officially a source of law. However, in practice, it acts as such in the form of Resolutions of the Plenums of the Supreme Court, conclusions and decisions of the Constitutional Court [3, 15]. It has a significant impact on judicial practice and the legal consciousness of judges, influencing their legal conviction and the decision made.
5 Conclusion It is necessary to update the doctrine, legislation, law enforcement practice as interrelated elements of legal education, starting from the idea, ideology to rule-making and implementation. The meta-theory of law is a fundamental transdisciplinary science that forms a holistic view of a complex, organized and self-organizing, open modern legal system. The meta-theory of law is based on strategic legal doctrines, programs, concepts of law-making and law enforcement, including information and communication technologies using artificial intelligence and robotics. It combines the materials of comparative jurisprudence, data of axiology, legal psychology, social conflictology, systematized sources, the content and forms of law, management mechanisms. This will help to create “advanced” legislation and an effective law enforcement mechanism (including an automated one), to combine digital innovations, the professionalism of the state apparatus
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and the potential of civil society. Being a multi-branch knowledge, the meta-theory of law synthesizes the achievements of natural, technical and social sciences, pushes the macro and micro frames, provides a close connection of the subject, the method of study with the individual experience of the researcher, does not reject the role of rational and irrational, meditation and intuition. In practice, the electronic version of the NPA is increasingly used, including the text on an electronic medium, acts of interpretation of law, conclusions of the Constitutional Court, decisions of the Plenums of the Supreme Court, comments on legislation. It can be supplemented with generalizing national and foreign judicial practice and statistics, doctrinal developments. The expansion of the law-making base, which includes not only the will of the legislator, but also other representatives of civil (network) society, will contribute to the authority and effectiveness of regulatory legal acts. Legal platforms that combine highly qualified lawyers and modern technologies allow to achieve high efficiency, both at the level of law-making and law enforcement. In order to be an effective social regulator, law must be legal and legitimate, where the sources of legal education reflect objective social laws, the interests and needs of the masses, and the forms correspond to the legal technique and legal culture of the population, which is a guarantee of their implementation in practice with skillful management activities.
References 1. Bochkov, A.A., Gurschenkov, P.V., Bochkova, G.S.: Methodological foundations of modern jurisprudence. Right. Economy. Psychology. Vitebsk State University named after P.M. Masherov 1(21), 4–11 (2021) 2. Cicero, M.T.: Three Treatises on Oratory. AST, Moscow (2019) 3. Demichev, D.M., Bochkov, A.A.: General Theory of Law. Higher School, Minsk (2019) 4. Hart, H.L.A.: Positivism and separation of law and morals. Harv. Law Rev. 71(4), 593–629 (1958) 5. Hearn, W.E.: The Theory of Legal Duties and Rights: An Introduction to Analytical Jurisprudence. Fred B Rothman & Co., New York (1990) 6. Korkunov, N.M.: Lectures on the General Theory of Law. St. Petersburg State University, St. Petersburg (1898) 7. Law of the Republic of Belarus “On Regulatory Legal Acts” dated July 17, 2018 No. 130-133. https://pravo.by/document/?guid=3871&p0=H11800130. Accessed 15 Mar 2021 8. Liviy, T.: The History of Rome from the Foundation of the City. AlfaBook, Moscow (2017) 9. Marchenko, M.N.: Problems of the Theory of State and Law. Avenue, Moscow (2017) 10. Morrison, W.: Yurisprudence, from the Greeks to the Legal Theory. Routledge-Cavendish, London (2016) 11. Petrazhitsky, L.I.: The Theory of Law and the State in Connection with the Theory of Morality. Saint Petersburg (2000) 12. Rubin, E.: The new legal process, the synthesis of discourse, and the microanalysis of institutions. Harvard Law Rev. 106, 1392–1435 (1996) 13. Sheares, P., Stephenson, G.: James’ Introduction to English Law. Oxford University Press, Oxford (2005) 14. Sokolov, N.Y., Fedorchenko, A.A., Shagieva, R.V.: Theory of State and Law. Prospekt, Moscow (2019) 15. Vasilevich, G.A.: Legal consequences of acts of the Constitutional Court of the Republic of Belarus. Right 2(40), 27 (2016)
Advantages of Smart Contracts in Civil Circulation and Their Legal Regulation Disadvantages V. V. Popov1(B) and D. P. Strigunova2 1 State University of Management, Moscow, Russia 2 Russian Presidential Academy of National Economy and Public Administration,
Moscow, Russia
Abstract. The purpose of this work is to identify the main legal advantages and disadvantages of the legal regulation of using smart contracts in civil circulation from the perspective of applicable Russian law. The objectives of the work are the legal qualification of a smart contract, the establishment of the features of the legal regulation of smart contracts in the Russian Federation, the justification of the advantages of using smart contracts in civil circulation, the identification of law enforcement problems when using smart contracts. The methods of this research are a set of general scientific (dialectical, historical, induction and deduction, analysis and synthesis), as well as private scientific (formal legal, comparative legal, legal modeling) methods. Keywords: Blockchain · Civil law contract · Smart contract · Digitalization of the economy
1 Introduction Currently, in many countries of the world there is no legislative definition and legal regulation of smart contracts, there is no uniform definition of a smart contract in science and law enforcement practice. These circumstances make it difficult to understand the category of “smart contract”, ambiguity in resolving the issue regarding the possibility of considering it as a legal concept and determining the place of a smart contract among other legal categories. The authors of the article believe that a smart contract should be considered in two main meanings: as a program code and as a civil contract. From a legal point of view, a smart contract is a legal concept that needs to be given an appropriate legal definition and determine its place among other contractual structures. In the legal sense, a smart contract should be understood as a civil contract that is subject to conclusion and executed using a special technology – blockchain. From this point of view, a smart contract is a non-independent standard contractual structure, distinguished mainly by the environment of conclusion and execution, along with the automatic nature of execution. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 81–88, 2022. https://doi.org/10.1007/978-3-030-94873-3_11
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The use of smart contracts in civil circulation has a number of serious advantages, which are deprived of civil contracts concluded in the “usual” way. These advantages apply to all elements of contractual relations: to the conclusion of a contract, to the fulfillment of contractual obligations and ensuring their fulfillment, to the amendment and termination of the contract, as well as to the resolution of disputes related to this contract. This includes minimizing the risk of non-agreement of significant or other conditions important for the parties, standardization of execution, protection of the contract from falsification by blockchain technology, the nature of the smart contract that directly ensures the fulfillment of obligations (automatic execution), the automatic nature of the termination of the smart contract, and the ease of resolving disputes related to smart contracts (the use of remote procedures, unambiguity of evidences, ease of enforcement of a court decision). The main disadvantages of the legal regulation of smart contracts are undoubtedly caused by the lack of their unified definition at the international level, as well as the lack of their special legal regulation in the national legislation of states, the ambiguous understanding of smart contracts in law enforcement practice and the modern doctrine of states.
2 Methodology When writing this work, its authors relied on the current legislation and scientific works (including those published before the adoption in Russia of norms regulating the peculiarities of legal regulation of digital relations in general and smart contracts in particular). The use of a complex of general scientific (dialectical, historical, induction and deduction, analysis and synthesis) and private scientific (formal legal, comparative legal, legal modeling) methods allowed us to consider a smart contract as a complex phenomenon that combines both legal and technical elements. Among the works of Russian researchers, first of all, it is necessary to highlight the works of Saveliev, who was one of the first in the domestic doctrine to begin to deal with this problem and outlined the main approaches to understanding smart contracts [6, 7]. In his scientific articles and monographs, legal issues related to the use of smart contracts as contracts that exist in the form of program code implemented on the blockchain platform were covered. This allowed the author of this work to formulate his own provisions, in particular, regarding the problems of legal regulation of these contracts in relation to relationships with a foreign element. The methodology of legal science is widely used in the work: the method of dialectical cognition, historical, induction and deduction, analysis and synthesis. When studying the sources, the formal-legal and comparative-legal method, as well as the method of legal modeling, were used.
3 Results Nowadays, in many countries there is no legislative regulation of smart contracts, there are no uniform approaches to their legal qualification, as well as to the definition of a smart contract [6]. The question arises about the possibility of conducting such a qualification in relation to smart contracts, that is, considering them as a legal category.
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Currently, some US states, Italy and other countries adopted special regulatory legal acts aimed at regulating smart contracts [10], and this was done for the first time at the state level in the Republic of Belarus, where a smart contract was defined as a program code intended for functioning in the register of transaction blocks (blockchain), another distributed information system for the purposes of automated execution and (or) execution of transactions or other legally significant actions. There are still disputes in the domestic doctrine as to whether the regulation of computer technologies, including those expressed in smart contracts, is allowed by means of law. This is due, in particular, to the lack of a legal definition of a smart contract and, accordingly, its proper legal regulation in the Russian Federation. Currently, only the possibility of making a transaction is legally fixed, the terms of which may provide for the fulfillment by its parties of the obligations arising from it upon the occurrence of certain circumstances without a separately expressed additional will of the parties aimed at fulfilling the obligation by using information technologies defined by the terms of the transaction, as well as the use of such transactions when disposing of digital financial assets. It is obvious that a smart contract (namely, it is meant by such a transaction) needs more detailed legal regulation [2] than, for example, two mentions in the federal laws of the Russian Federation. The lack of a legal definition and characteristics of a smart contract and the corresponding norms in the Russian legislation of the Russian Federation and the laws of many other states cause the main lack of their understanding and application both in domestic civil turnover and in international economic turnover as a whole. This disadvantage negatively affects their distribution in civil circulation, where they could rightfully take their rightful place, in some cases replacing traditional contracts. A smart contract can be considered in two meanings: as a program code and as a civil contract [9]. Taking into account the specifics of this study, in the future, the concept of a smart contract is used exclusively in the jural significance. In this sense, a smart contract should be understood as a civil contract that is subject to conclusion and executed using a special technology – blockchain. At the same time, a smart contract is a non-independent standard contractual structure along with accession agreements, public contracts, option contracts, etc. [1]. This contractual construction is qualified by such features as the electronic environment of conclusion and execution (information system) and the automatic nature of execution. Like similar contractual structures, a smart contract can contain their features (i.e. it can be both an accession agreement, a public agreement and a smart contract). The form of a smart contract is convenient for an option agreement, in which the actions provided for in this agreement are performed in accordance with the rules of the information system. Also, through smart contracts, the relations of the parties to the framework agreement can be regulated in terms of filling in the missing conditions by submitting applications from one of the parties. The areas of possible application of smart contracts are quite extensive. In particular, Krysenkova highlights such areas as the turnover of digital assets, the issuance of digital securities, the creation of a continuous supply chain, in order to ensure the functioning of smart cities, in the electoral sphere, in the real estate sector, etc. In the future, it is possible to use smart contracts in many other areas [5]. Thus, in the world practice,
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the use of smart contracts in the banking sector, insurance, betting and lotteries, etc. is widespread. The legal features of smart contracts were highlighted, in particular, in the works of Saveliev [6, 7]. The scientist, giving a legal character to a smart contract, draws attention to the fact that a smart contract exists exclusively in an electronic environment and involves the mandatory use of an electronic signature; its terms are set out in one of the programming languages and are implemented exclusively through the use of a blockchain database; the specified contract is concluded by joining, since its terms are formulated by one of the parties who writes the program code, and other participants only join these conditions; the formalization of the language in which the smart contract is drawn up avoids its discrepancies. The smart contract is aimed at disposing of a digital asset; the performance of obligations under such a contract is due to the occurrence of certain circumstances; a smart contract is self-executing and does not require interference in its execution by any persons, including the parties of the contract [6]. The use of smart contracts in civil circulation has a number of serious advantages, which are deprived of civil law contracts concluded in the “usual” way [3]. These advantages apply to all elements of contractual relations: to the conclusion of a contract, to the fulfillment of contractual obligations and ensuring their fulfillment, to the amendment and termination of the contract, as well as to the resolution of disputes related to this contract. At the same time, smart contracts as self-executing contracts limit the freedom of contract for the parties to a certain extent, which cannot be considered an advantage. Firstly, when concluding a smart contract, the risk of non-agreement of essential and other conditions is minimized to the extent that the legal content of the smart contract determines its technical characteristics. For example, it is impossible to conclude a smart contract without agreeing on the criteria for its proper execution, since due to its self-executing nature, the elements of the program code responsible for the execution of the program, if the requirements for them are not met in the information system, cannot be “read” by it, and the contract will not be considered concluded due to the fact that the parties did not reached an agreement in the required form. Undoubtedly, it is necessary to determine the requirements for such information systems in order to avoid further disputes about the non-conclusion of a smart contract due to non-agreement of its essential terms. In addition to this factor, a smart contract is also fully endowed with the advantages of transactions concluded using an electronic signature. Secondly, the standardization of performance makes it possible to avoid uncertainties in the issue of proper performance of obligations. The information technologies used should unambiguously characterize the execution as appropriate. At the same time, it is impossible to exclude the problems of incorrect content of legal information in the information system, as a result of which the execution of the method specified in the terms of the smart contract may initially be impossible. Thirdly, the fulfillment of obligations from the smart contract is confirmed by information included in the information system and protected from falsification by blockchain technology. The authenticity of the information is guaranteed by the operator of the relevant information system. If one of the parties disputes the fact of proper performance of the obligation, the falsification of information about the performance of the obligation is confirmed by information and computer expertise.
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Fourthly, the conclusion of a smart contract directly ensures the fulfillment of the obligation arising from it. Since the automatic execution of a smart contract cannot be canceled or changed by the parties, this feature of it can be considered as “a new way to ensure the fulfillment of obligations” [1]. Indeed, a self-fulfilling obligation to a large extent looks like such constructions as an escrow, an escrow account or a letter of credit – with the difference that in these institutions there is a performing party which is bound by the terms of the agreement, and in smart contracts this role is performed by an information system. Fifthly, the termination of the smart contract and the obligations arising from it is also automated, which excludes disputes about the moment of termination of the rights and obligations of the parties, proper notification of the contract party about its termination, confirmation of the termination of the contract and obligations from it for third parties, etc. Under a terminated smart contract, it is impossible to perform the execution and in the future demand a counter-consideration from the counterparty. Finally, the use of smart contracts in resolving disputes related to them provides serious advantages. These include the use of remote dispute resolution procedures, the use of an arbitration clause on the transfer of a dispute to an arbitration court specializing in them (for example, the Board of the Arbitration Center at the RSPP for Disputes in the field of digital economy), the unambiguity of evidences, the relative ease of enforcement of decisions. At the same time, along with the indisputable advantages, the legal regulation of smart contracts currently has a number of disadvantages, which should be paid attention to first of all by the Russian legislator and the developers of the relevant interstate agreement on smart contracts. As mentioned above, there is no legal definition and proper legal regulation of smart contracts in the domestic legislation, which entails a different understanding of it not only in doctrine, but also in practice, including in the practice of courts and arbitrations. The lack of legal regulation of smart contracts is at the base of most of the other problems of using smart contracts in Russia. It is quite possible that solutions to this problem could be achieved at the international level by adopting an appropriate interstate agreement on smart contracts, which would contribute to the unification of their legal regulation and would serve to develop uniform approaches to them from the position of many states. Another solution to this problem could be the development at the international level of relevant recommendations to states in the form of a model law, which was once developed by the United Nations Commission on International Trade Law (UNCITRAL) in relation to international commercial arbitration, which became the basis for the adoption of national laws on arbitration in more than 50 states. At the same time, the lack of fixing a smart contract in national legislation and international agreements can lead to difficulties in cases of violation of its execution.
4 Discussion The problem of legal regulation of smart contracts can be caused by errors that occur at the stage of formulating the provisions of these contracts and programming it. The result of such errors may be incorrect execution of smart contracts. In this regard, it is necessary to determine the responsibility of those who took part in writing the smart
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contract code and, in our opinion, the formulation of relevant provisions in the national legislation of states and international agreements. Smart contracts have not yet been properly distributed in certain areas of civil turnover. To do this, in our opinion, it is necessary to create appropriate state digital platforms on which individual smart contracts could be concluded, which normally require, for example, notarization or state registration. The lack of appropriate digital platforms makes it impossible to use smart contracts in these areas. Thus, the lack of proper legal regulation of the relevant digital platforms serves as a disadvantage of the legal regulation of smart contracts in certain areas. The problem of legal regulation of smart contracts deserves special attention in terms of the conclusion and execution of such contracts with the participation of the consumer. If the party is a consumer, then when concluding and executing smart contracts, it is necessary to comply with mandatory norms on the protection of consumer rights. When concluding and executing a contract in the usual manner, conditions that contradict such norms are initially invalid, but for the situation with smart contracts that use selfexecuting scenarios, this will lead to the invalidity of the contract as a whole, which is not always in the interests of the consumer and does not contribute to the stability of civil turnover. There is currently no real mechanism for protecting consumer rights in such contracts. Unlike traditional contracts, a smart contract does not have the flexibility that gives the parties an opportunity to negotiate at any time to agree on changing the terms of the contract or terminate it. This circumstance should be taken into account when developing the legal component of regulating smart contracts. In addition, it is necessary to admit that, due to its nature, the smart contract is “deaf” in relation to the evaluative concepts of civil law, such as fairness, conscientiousness, reasonableness, care, prudence and other evaluative categories and principles of law. In this regard, the legal and technical community has yet to understand how the principles of law and evaluation categories could be reflected in smart contracts. An important problem of the legal regulation of smart contracts is also the definition of the applicable law to such contracts complicated by a foreign element. The solution to this problem could also be the creation of an international agreement containing unified substantive and conflict-of-laws rules, or the creation of an international recommendation document in the form of a model law containing relevant provisions that could be used by national legislators in their conflict-of-laws legislation. And finally, at present, and this is emphasized in the doctrine, there are potential security threats and vulnerability of smart contracts [8, 10]. In this regard, the world community as a whole and states individually will have to develop adequate legal mechanisms to ensure the security of the conclusion and execution of smart contracts. These problems cannot be outside the legal field, therefore, their solution should become a priority task of national and international law-making.
5 Conclusion The lack of uniform approaches to the definition and legal qualification of smart contracts causes inconveniences and fears of participants in domestic and international civil
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legal relations, which do not allow their widespread use in all areas of public life, where it is already possible from a technical point of view. Currently, only the possibility of making a transaction is legally fixed, the terms of which may provide for the fulfillment by its parties of the obligations arising from it upon the occurrence of certain circumstances without a separately expressed additional will of the parties aimed at fulfilling the obligation by using information technologies defined by the terms of the transaction, as well as the use of such transactions when disposing of digital financial assets. It is obvious that a smart contract needs more detailed legal regulation. A smart contract should be understood as a civil contract that is subject to conclusion and executed using a special technology – blockchain. This contractual construction is qualified by such features as the electronic environment of conclusion and execution (information system) and the automatic nature of execution. The form of a smart contract is convenient for accession contracts, public contracts, option contracts, framework contracts, and smart contracts must be fixed in chapter 27 of the Civil Code of the Russian Federation. The use of smart contracts in civil circulation has a number of serious advantages, including minimizing the risk of non-agreement of significant or other conditions significant for the parties, standardization of execution, confirmation of fulfillment of obligations by blockchain technology, direct enforcement of obligations arising from a smart contract, automation of termination of a smart contract and obligations arising from it, as well as ease of resolving related disputes. Along with the indisputable advantages, the legal regulation of smart contracts has a number of disadvantages. Currently, there is no legal definition and proper legal regulation of smart contracts, there is no international unification of their legal regulation, the issues of responsibility of persons who took part in writing the code of a smart contract are not settled [4]. The problem of legal regulation of smart contracts deserves special attention in terms of the conclusion and execution of such contracts with the participation of the consumer, since self-executing scenarios may conflict with mandatory norms in the absence of an opportunity not to apply invalid conditions, preserving the obligation between the parties. Also, a smart contract does not have the flexibility that gives the parties the opportunity to negotiate at any time to agree on changing the terms of the contract or terminate it, and the ability to take into account evaluation categories and principles of civil law. Also, the problems of legal regulation of smart contracts include the definition of the applicable law to such contracts complicated by a foreign element, and the development of legal mechanisms that allows to ensure the security of the conclusion and execution of smart contracts. The solution of these problems should become a priority task of national and international law-making in the field of digitalization of the economy.
References 1. Efimova, L.G., Sizemova, O.B.: The legal nature of a smart contract. Bank. Law 1, 23–30 (2019) 2. Filatova, N.: Smart contracts from the contract law perspective: outlining new regulative strategies. Int. J. Law Inf. Technol. 28(3), 217–242 (2020)
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3. Inshakova, A.O., Goncharov, A.I., Salikov, D.A.: Electronic-digital smart contracts: modernization of legal tools for foreign economic activity. In: Popkova, E.G., Sergi, B.S. (eds.) ISC 2019. LNNS, vol. 91, pp. 3–13. Springer, Cham (2020). https://doi.org/10.1007/978-3-03032015-7_1 4. Kaczorowska, B.: Juridical status of so-called smart contracts against the background of the polish legal framework. Masaryk Univ. J. Law Technol. 13(2), 189–218 (2019) 5. Krysenkova, N.B.: Smart contracts in a foreign legal space. Int. Public Priv. Law 5, 28–30 (2019) 6. Saveliev, A.I.: Contract Law 2.0: “Smart” contracts as the beginning of the end of classical contract law. Civil Law Rev. 3, 32–60 (2016) 7. Saveliev, A.I.: Some legal aspects of the use of smart contracts and blockchain technologies under Russian law. Law 5, 94–117 (2017) 8. Sayeed, S., Marco-Gisbert, H., Caira, T.: Smart contract: attacks and protections. IEEE Access 8, 24416–24427 (2020) 9. Turitsyn, A.V., Melikhov, V.M., Uskova, M.S., Turitsyn, D.A.: Smart contract as a new form of civil law contracts: national and international approaches to comprehension and regulation of the legal institution. Stud. Comput. Intell. 826, 163–170 (2019) 10. Zakharkina, A.V.: Smart contract in the context of the formation of a regulatory platform for the ecosystem of the digital economy of the Russian Federation. Bull. Perm Univ. Legal Sci. 1, 66–82 (2020)
International Delivery Services in the COVID-19 Conditions Through the Economics and Law N. Sokolov1(B) , N. Malanicheva2 , and I. Strelnikova3 1 State University of Management, Moscow, Russia
[email protected]
2 Financial University Under the Government of the Russian Federation, Moscow, Russia
[email protected]
3 HSE University, Moscow, Russia
[email protected]
Abstract. The COVID-19 pandemic has led to the stagnation of the global economy. Thus, according to the IMF (International Monetary Fund), in 2020, the world GDP decreased by 4.4%, and the GDP of the “advanced” economies (the economies of the OECD member countries-the Organization for Economic Cooperation and Development) – by 5.8%. In addition to the burden on the health care system and pharmacists in general, this drop is caused by the restrictions imposed by many countries on trade relations. At the same time, it was the service sector that was more vulnerable to the restrictions imposed. In the modern world, there are a number of means by which many economic relations can be translated into a remote format. However, many economic relationships still involve physical contact and/or the personal physical presence of agents: for example, physical labor or many services provided. It is the impact of COVID-19 on international trade in services, as the most significant, that we will consider in this work. Part of the study will also focus on how these restrictions have been reflected in the legal field of states and international organizations (primarily the EU, as a unique international actor). Keywords: COVID-19 · Digitalization · EU · Services
1 Introduction The spread of the COVID-19 virus across the EU countries forced many governments around the world to take unprecedented measures to contain the pandemic. This situation led to the temporary closure of many enterprises and widespread restrictions, affecting the service sector. In a rapidly changing environment and in the absence of timely reliable data measuring the damage to production, it is still extremely difficult to quantify the exact magnitude of the impact of these measures on overall economic activity. The approximate data were established by the OECD and were published in March 2020, shortly after many countries began to apply isolation measures [15]. According to the mentioned indicators, it © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 89–98, 2022. https://doi.org/10.1007/978-3-030-94873-3_12
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was assumed that the initial direct impact of the restriction/quarantine period could be in a decrease in production level by about a quarter in many countries, with consumer spendings potentially falling by about one third. These estimates were based on illustrative judgments about the potential impact of restrictions on production in individual sectors and consumption categories, as well as on the assumption of general effects in different countries. According to other estimates, in a number of European countries, depending on the type of measures considered to stop production, the situation under consideration may lead to a more drastic decrease in production [5]. As noted above, the initial assessment of the potential direct impact of a largescale regime of self-isolation and suspension of the functioning of various spheres was published in March, shortly after most advanced economies began to introduce strict measures taken to contain the spread of COVID-19. The OECD estimates identified the sectors that are most likely to be directly affected by these measures. For each of these activities, assumptions were made about the extent to which the activity would be reduced. The OECD assessment of the situation impact caused by COVID-19 on the service sector includes the following: 1. In the service sector, activities related to traveling, tourism, and direct contact between consumers and service providers, such as in the provision of hairdressing services, will suffer from restrictions on movement and measures of social distancing and self-isolation. 2. Most restaurants and cinemas will be closed, although takeaway food sales and online sales will prevent some businesses from completely shutting down [15]. It is noteworthy that after analyzing the coronavirus outbreak and the impact of coronavirus on the global economy, the researchers also emphasize the importance of the spillover effect that led to the global recession in 2020. In their article on the spillover effect and COVID-19, Ozili and Arun also emphasize that the restaurant business suffered during the pandemic, mainly due to government-announced restrictions on movement and due to “social distancing” imposed by the government in many countries [16]. This led to the rapid suspension of the service sector to combat the spread of the coronavirus, which plunged many restaurants and hotels into shock. At the same time, hotels around the world, in turn, witnessed the cancellation of bookings worth billions of dollars, and the hotel industry demanded financial assistance in the amount of 150 billion dollars. Some hotels in the United States, the United Kingdom and in some European countries announced a temporary suspension of work, resulting in an estimated loss of jobs of 24.3 million people worldwide and 3.9 million in the United States alone due to a decrease in hotel occupancy during the pandemic. The economic consequences of the pandemic for the hotel business were more serious than the recessions of September 11 and 2008 altogether [16].
2 Methodology The research methods were: functional-structural, analytical, logical, graphical, economic-statistical, on the basis of which the situation in the field of international
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service provision (especially the most affected tourism services industry) in the conditions of COVID-19 was analyzed and economic and legal indicators and measures taken by the international community on the example of the EU countries to combat this situation were studied. Thus, on the scale of the European Union, the development of a whole document “Principles for combating the crisis caused by the COVID-19 pandemic” began, which separately notes the need for a moratorium on regular payments and suspension/replacement of payments due to unpredicted situations and difficulties. However, in addition to solving short-term problems, governments around the world have a longer-term task: the need to support the industries most affected by the pandemic, primarily tourism. Thus, in addition to the need to compensate consumers in one way or another for the funds spent on services that are impossible in the new situation, many travel service providers found themselves in a deep crisis that continues to this day. All the industry’s growth plans for 2020 became impossible, and enterprises faced a choice: temporarily or permanently close, optimize costs or apply for state assistance. The first strategy, “Crisis management and mitigation”, provides for a whole range of different measures. In relation to employees, both support of the self-employed in the industry was provided, as well as care for ordinary employees to keep their jobs, as well as protection of the most vulnerable workers. In order to keep the companies “afloat”, it was provided for direct support of their liquidity with the help of various instruments, as well as the facilitation of various regulatory measures (taxes, rules, etc.). Assistance to the tourism industry should also be included in the emergency package both at the global, national and regional levels. In order to allow the industry to adapt to the new conditions, states should also provide assistance with retraining of personnel (primarily in connection with the digitalization of the industry, whether temporary or permanent) and create mechanisms for crisis management and their own plans for overcoming it, taking into account local specifics. At the same time, the state should not forget about consumers, showing that it is ready to protect them and take care of their interests. As of the end of 2020, no country fully implemented the recommendations laid down in the first strategy, but almost all developed countries followed them at least partially. The greatest successes were achieved by Australia, Great Britain and Japan. The second and third strategies provide for the recovery of the tourism industry from the crisis through financial incentives, further changes in regulatory acts, as well as investments in human capital and management. However, it is impossible to say that states sufficiently began to implement these recommendations: some successes were achieved only in increasing the flexibility of responding to the situation in the world and on the market. It is also impossible not to mention the example of Italy, which created a whole program for its tourism industry in advance to restore and overcome the crisis, and also made significant investments in human capital. Moreover, national governments around the world continue to change their plans in relation to the tourism industry, but it can already be concluded that almost every government in the world chose its own unique strategy This strategy may be partially based on the WTO recommendations, but it discards some of them, and also adds something of its own, taking into account local specifics.
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3 Results Let’s analyze the consideration of the measures taken in the EU countries. The EU member states took a variety of measures to combat the pandemic. Since March 17, 2020, countries introduced temporary restrictions on entry from third countries to the EU, which is not important. Most countries also imposed restrictions on movement between EU member states. Public events were canceled by almost all member states, and private gatherings (with a number of people from 2 to 50) were banned. Bars, restaurants and hotels were closed in almost all countries. In addition, most countries closed retail stores, with the exception of supermarkets, pharmacies and banks. In Italy and Spain, the production of secondary goods was stopped, and several countries introduced regional or even national isolation measures, which further hindered economic activity in many areas. The vast majority of preventive measures were taken in mid-March. Most of the preventive measures and restrictions were maintained during April. In May and June, most of the measures were completely or partially canceled, which led to an increase in the volumes of production of services. This dynamic development during the summer was not strong enough to restore the previously incurred losses [7, 8]. Due to the increase in the number of cases of Covid-19 after the summer holidays, several countries re-introduced containment measures in September and October. Unlike the spring measures, they usually did not include the closure of shops, but rather included hygienic measures, social distancing, restriction of public gatherings, etc. Let’s look at the development of the turnover of services in the fourth quarter of 2020. In the fourth quarter of 2020, the total turnover of services in the EU-27 countries increased by 2.4% compared to the third quarter of 2020. This moderate growth followed a 10.6% increase in the third quarter and a significant decline in the second quarter (-16.7%) and the first quarter (-4.0%). It is important to highlight the following features: 1. The largest decrease in 2020 was recorded in the sphere of accommodation and food services (hotels and restaurants). Despite the recovery in the third quarter, the turnover of these services in the fourth quarter of 2020 was only half of what it was a year earlier. 2. Administrative and support services (e.g. employment services, security, cleaning), which are usually purchased by businesses, fell to 78.8% between the last quarter of 2019 and the last quarter of 2020. 3. Transport services (land, water, air) fell by 10.0% in 2020. 4. Information and communication services grew slightly during 2020. 5. Professional and scientific services (legal services, accounting, marketing, etc.) returned to the level at which they were in the last quarter of 2019. Let’s also consider how the development of the situation differs by countries. Since the measures to contain Covid-19 in different countries differed in terms of timing and severity, it was expected that the impact on the production of services would also be different [6]. Thus, in the second quarter of 2020, the total turnover of services decreased by 16.7% in the EU-27 countries and by 17.7% in the euro area. The largest drop in the second quarter was recorded in Portugal (−36.7%). In no country for which data are available, there was no increase in the turnover of services in the period from April, May
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to June. Transport services in the EU-27 decreased by 18.9%. The strongest decline in this sector was recorded in Portugal (−40.0%). Accommodation and catering services decreased by 54.1% in the EU-27 countries. A particularly strong decline was registered in Malta (−93.3%) and Spain (−78.2%). The turnover of information and communication services in the second quarter of 2020 fell by 3.5% in the EU-27 countries. In several countries, there is still positive rates of change in these services. As for professional, scientific and technical services, the overall level of reduction in the second quarter was -11.0% in the EU-27 countries. The turnover of administrative support services fell by 26.6% in the EU-27 countries. In the third quarter, growth rates were positive in almost all countries and services sectors. As for services in general, the growth rate in Europe was 10.6%, the highest growth was recorded in Spain (24.9%) and in Croatia (21.6%). Transport and warehouse services increased, in particular, in Portugal (26.4%), Spain (21.3%), and Italy (21.1%). The average value for the EU-27 was 10.6%. After a sharp decline in the second quarter, accommodation and restaurant services showed strong growth rates in the third quarter, which was largely due to the extremely low level to which activity fell. For the EU-27, the growth rate was 89.5%. Information and communication services increased by 5.0% in the EU-27 countries, professional services by 8.3%, and administrative and support services by 9.2%. The positive dynamics of the third quarter of 2020 continued in the last quarter, but the development was much less dynamic. The total volume of services in the EU-27 countries increased by 2.4%. Transport and warehousing services recovered by 4.0%, information and communication services - by 2.8%. The turnover of professional and scientific services increased by 5.6%, and the turnover of administrative services - by 5.2%. The exception to this positive but moderate growth is accommodation and catering services. Hotels and restaurants were seriously affected by the updated containment measures in the last quarter of 2020, and their turnover fell by 30.2% in the EU-27 countries. The losses were especially strong in Slovenia (-57.8%), the Czech Republic (-48.7%) and Germany (-43.5%). The turnover of hotels and restaurants in Malta increased by 60.4%. As for the legal component of the issue, it is possible to consider legislative acts, declarations adopted to regulate certain aspects of the functioning of the service sector in European countries. In the case of Portugal, the main document establishing the specifics of the activity of the service sector is the “Rectification to Ordinance No. 71/2020, on Restrictions on access and use of commercial establishments, restaurants or drinking spaces” [4]. Article 1 of this resolution establishes restrictions on access to retail spaces. Article 2 deals with restrictions on access to public catering establishments and establishments licensed for serving alcoholic beverages. It is emphasized that the distribution of places available to the population in these institutions should be limited to one third of their capacity. Article 3 describes the responsibilities for management and monitoring in the provision of services. According to this article, managers or owners of spaces and institutions mentioned in previous articles should make every effort to: a) To exercise balanced governance in accordance with the provisions of the preceding articles;
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b) Tracking places that are in public access, in order to avoid crowds of people at the entrance to the premises or institutions as much as possible. Turning to the case of Spain, it is necessary to highlight 8 legislative acts-Royal Decree-Law 6/2020, Royal Decree-Law 7/2020, Royal Decree 463/2020, Royal DecreeLaw 8/2020, Royal Decree 465/2020, Royal Decree-Law 9/2020, Royal Decree-Law 10/2020 and Royal Decree-Law 11/2020 that provide initial measures to overcome the crisis associated with the coronavirus (COVID). The legislation includes measures aimed at protecting health and the economy as a whole, with special emphasis on the tourism industry, small and medium-sized enterprises and the self-employed, as well as persons affected by isolation measures. These measures are examples of measures that are being taken at the national level, and they can be supplemented by measures at the regional and local levels [12]. Among these primary 8 legislative acts establishes measures to support the continued hiring of workers with permanent seasonal contracts in the tourism industry and in the retail sales related to tourism, as well as in the hotel and restaurant sectors (article 13). This article highlights that companies (with the exception of the public sector) in the tourism sector, as well as in the retail trade, hotel and restaurant business related to tourism, companies which carry out production activities in the period from February to June and which hire or retain employees on permanent seasonal contracts during such a period of months will be able to apply a 50% reduction in the employer’s social security contributions for non-professional unforeseen circumstances, as well as for the joint reimbursement of unemployment benefits, the Wage Security Fund and vocational training for such employees. While according to French law, starting from February 25, 2021, shops (with the exception of large non-food shopping centers) and services, including public libraries, are available to the population, but should be closed at 18:00 [11]. At the same time, bars, restaurants, cinemas, theaters, museums and gyms are closed. Speaking about Italy and the impact of COVID-19 on the service sector in it, it is important to highlight the measures of assistance to enterprises that were taken by the government. Italian law supports businesses suffering from falling revenues and a sudden lack of liquidity, also caused by the credit crisis. The main category includes small and medium-sized enterprises whose turnover is below a certain threshold. Enterprises receive a certain amount based on their size and the number of losses in previous months. It is noteworthy that the law also provides for the allocation of financial assistance to enterprises working in the field of construction and tourism [17]. In addition, there is also an emergency assistance fund to support cultural organizations, such as libraries, publishing houses, museums, cultural centers, in order to reduce losses as a result of the cancellation of shows, concerts, fairs, congresses and exhibitions.
4 Discussion Although the closure of borders during the pandemic was the toughest in many years, covering a huge number of countries, such restrictions are not something new. In their article “COVID-19 and international restrictions on movement: the geopolitics of health
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and tourism” Seyfi, Hall and Shabani consider how the new restrictions relate to existing ones [19]. Among the examples, the authors cite sanction restrictions, economic (protectionist) restrictions and migration restrictions. Conclusions are drawn primarily about the impact on the tourism sector, as one of the most affected service sectors. A number of authors consider the issue that the restrictions imposed due to the pandemic are breaking international production chains. Thus, Pinna and Lodi in their article “Trade and global value chains at the time of Covid-19” [18] put this question in the context of the globalization process that continued until 2020. The authors conclude that the crisis that followed the pandemic is very different from its predecessors, and new appropriate measures are required from states and international organizations to get out of it and return the economy to an acceptable state and growth rates of the 2010s. On the contrary, Antràs in his work “De-globalization? Global value chains in the post-COVID-19 age” [2] argues that states overcome the consequences of the pandemic, and it did not have a serious impact on the economic processes of globalization. At the same time, researcher finds it important that the pandemic has hit the segments of the population with small incomes most severely. In the near future, their discontent may lead to a change of power in some countries and, as a result, the implementation of more isolationist policies by these countries. One of the key factors of the pandemic was its unexpected impact on the lives of people around the world: the need to adapt the economy to new conditions. Because of this, many of the services that the parties agreed on before the restrictions were introduced, it turned out to be impossible to provide. So, first of all, these are transport and entertainment services, since tickets for trains, planes and various events are usually booked in advance [1]. Many consumers rightly demanded a refund of the money spent, but in the case of immediate satisfaction of all requests, the companies would have gone bankrupt, because they tried to either delay the refund or give people vouchers instead of money [14]. At the same time, consumers accumulated significant debts that they could not pay off. States are faced with the task of solving these new problems. In the article “Consumer Law and decisions related to changing circumstances in the light of the COVID-19 pandemic”, published in the Journal of Consumer Policy, the authors consider various measures taken by governments (mainly European) in this regard [3]. Several authors focus specifically on the tourism industry, which is international in nature and was most affected during the pandemic. Back in April 2020, Gössling, Scott, Hall, published the article “Pandemics, tourism and global change: A rapid assessment of COVID-19” [10]. Many of the conclusions of this article are already outdated due to the rapid development of the situation, but it can serve as an example of the evolution of researchers’ assessments of the situation and prevent some mistakes in new works [20, 21]. A more recent study on this topic can be the article “National tourism strategies during the Covid-19 pandemic” by Kreiner and Ram [13], published during the pandemic, when states had already managed to respond to the occured economic problems. In the article, the authors consider six different approaches to the problem from the governments of European countries and correlate these approaches with the recommendations of the World Tourism Organization.
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5 Conclusion In conclusion, we can note that the issue of the impact of COVID-19 on international trade in services is a rather extensive topic. In our study, we analyzed only a part of the literature devoted to this topic, and examined the causes of the analyzed phenomenon, as well as how unexpected and different the current crisis became for the world economy and national governments. We also looked at the short-and long-term problems faced by the industry affected by the pandemic and how states and international organizations tried to smooth out these problems. However, as we have already noticed, the plans drawn up by states are constantly changing, as is the situation with the pandemic itself (whether in a negative direction – such as the appearance of new strains, or in a positive direction – such as the spread of vaccines). Perhaps future researchers of this issue should analyze how quickly and accurately governments responded to the pandemic. Summarizing, it can be argued that the COVID-19 pandemic negatively affected the personal services sector compared to other recent economic crises. The pandemic caused serious damage to key service sectors, especially tourism. The reason for this situation is the decisive, but at the same time necessary measures of social distancing and isolation that were taken in the EU countries. The COVID-19 pandemic is, firstly, the most serious health care crisis in the last century, and, secondly, potentially unprecedented if we consider the global nature of the current economy. The pandemic directly affected the scales of international trade in services, primarily due to a reduction in both demand and supply. COVID-19 had a negative and statistically significant impact on bilateral trade flows. Such an impact on world trade was maintained since March 2020. The impact of the COVID-19 is significantly greater than all recent outbreaks of diseases, including HIV, Ebola or SARS in recent years, and is very similar to the impact of the Spanish flu of 1918–1920. The reaction in the sphere of international trade in services corresponded to the escalation of the pandemic and the measures taken by individual countries to control or mitigate its consequences (restrictions on movement, quarantine measures, forced shutdowns of production, as well as monetary and fiscal policy incentives). As mentioned above, COVID-19 led to a sharp drop in the international provision of services. While trade in goods is recovering rapidly, trade in services is lagging behind. Although global traffic volumes are currently exceeding pre-pandemic levels, this growth is mainly due to China. The service sector is not returning to pre-crisis indicators due to the continuing decline in demand in tourism and international travel. In the first 10 months of 2020, the number of tourists fell by 72% and remains well below the level preceding the pandemic. The global health crisis and the economic crisis led to a sharp reduction in all private financial flows to developing countries. According to WTO estimates, the flows of remittances to low-and middle-income countries are expected to continue to decline - by 7.5% in 2021 [9]. The direct consequences of COVID-19 for international trade are associated with direct supply disruptions (due to local and regional quarantine measures and forced production shutdowns); increased transport costs due to the introduction of stricter
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access control measures and due to demand disruptions, due to a decrease in aggregate demand (recession) and the adoption of precautionary measures or waiting and delaying purchases (for example, deferred purchases and investments).
References 1. Alvarez, F.E., Argente, D., Lippi, F.: A simple planning problem for Covid-19 lockdown (2020). https://www.nber.org/papers/w26981, Accessed 15 Juy 2021 2. Antràs, P.: De-globalisation? Global value chains in the post-COVID-19 age (2020). https:// ideas.repec.org/p/nbr/nberwo/28115.html, Accessed 15 July 2021 3. Alderman, R., et al.: COVID-19-consumer law research group: consumer law and policy relating to change of circumstances due to the COVID-19 pandemic. J. Cons. Policy 43, 437–450 (2020) 4. Diário da República Eletrônico - Rectification to Ordinance No. 71/2020, on Restrictions on access and use of commercial establishments, restaurants or drinking spaces (2020). https://covidlawlab.org/wp-content/uploads/2020/07/Ordinance-71_2020-2020-0315-DRE.pdf, Accessed 04Apr 2021 5. Dorn, F., et al.: The economic costs of the coronavirus shutdown for selected European countries: a scenario calculation (2020). https://ideas.repec.org/p/ces/econpb/_25.html, Accessed 04 Apr 2021 6. El-Erian, M.A.: The coming coronavirus recession and the uncharted territory beyond (2020). https://www.foreignaffairs.com/articles/2020-03-17/coming-coronavirus-recession, Accessed: 03 Apr 2021 7. Eurostat: Production in services - Monthly data (2021). https://ec.europa.eu/eurostat/databr owser/view/sts_sepr_m/default/table?lang=en, Accessed 01 Apr 2021 8. Eurostat: Turnover in services - Quarterly data (2021). https://ec.europa.eu/eurostat/databr owser/view/sts_setu_q/default/table?lang=en, Accessed 01 Apr 2021 9. Financial Times: global recession already here, say top economists (2021). https://www.ft. com/content/be732afe-6526-11ea-a6cd-df28cc3c6a68, Accessed 03 Apr 2021 10. Gössling, S., Scott, D., Hall, C.M.: Pandemics, tourism and global change: a rapid assessment of COVID-19. J. Sustain. Tour. 29(1), 1–20 (2020) 11. Government of France: restrictions and requirements in metropolitan France (2021). https:// www.gouvernement.fr/en/coronavirus-covid-19, Accessed 05 Apr 2021 12. KPMG: Government and institution measures in response to COVID-19 (2020). https:// home.kpmg/xx/en/home/insights/2020/04/spain-government-and-institution-measures-inresponse-to-covid.html, Accessed 05 Apr 2021 13. Kreiner, N.C., Ram, Y.: National tourism strategies during the Covid-19 pandemic. Ann. Tour. Res. 89, 10306 (2020) 14. Nelson, R.M.: US sanctions on Russia: Economic implications (2015). https://digital.library. unt.edu/ark:/67531/metadc501885/. Accessed 05 Apr 2021 15. OECD: Evaluating the initial impact of COVID-19 containment measures on economic activity (2020). URL: https://www.oecd.org/coronavirus/policy-responses/evaluating-the-initialimpact-of-covid-19-containment-measures-on-economic-activity-b1f6b68b/, Accessed 05 Apr 2021 16. Ozili, P.K., Arun, T.: Spillover of COVID-19 (2020). https://papers.ssrn.com/sol3/papers. cfm?abstract_id=3562570, Accessed 03 Apr 2021 17. Petracca, I.: The Italian Government’s decree-laws providing measures to tackle the Covid19 crisis (2020). https://www.iota-tax.org/news/the-italian-governments-decree-laws-provid ing-measures-to-tackle-the-covid-19-crisis, Accessed 03 Apr 2021
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18. Pinna, A.M., Lodi, L.: Trade and global value chains at the time of Covid-19. Int. Spectator 56(1), 82–110 (2021) 19. Seyfi, S., Hall, C.M., Shabani, B.: COVID-19 and international travel restrictions: The geopolitics of health and tourism (2020). https://doi.org/10.1080/14616688.2020.1833972, Accessed: 05 Apr 2021 20. Sigala, M.: Tourism and COVID-19: impacts and implications for advancing and resetting industry and research. J. Bus. Res. 117, 312–321 (2020) 21. van Bergeijk, P.A.G.: Deglobalization 2.0. Edward Elgar Publishing, Cheltenham (2019)
Labor Market Precarization: Russian and Foreign Experience of Its Regulation N. V. Solovova, N. V. Sukhankina(B) , and D. G. Slatov Samara National Research University, Samara, Russia
Abstract. The precarization of labor markets observed over the past few decades in both developed and developing countries, is a serious challenge to the existence of a key institution of the modern economy - the institution of formalized and legally protected employment. The study and theoretical understanding of the Russian and foreign research of the phenomenon of precariat, labor force precarization and its impact on the labor market, as well as the associated HR risks, are of vital importance in modern socio-economic conditions. The data analysis and classification methods were used for Interdisciplinary research of the precariat phenomena and precarization of the labor market; the associated HR risks were identified and assessed. To reduce insecurity and improve the working conditions of temporary workers, complex measures shall be implemented at various levels: eliminating gaps in legislation; facilitating the transition to standard employment and eliminating social risks; developing a system of collective bargaining; and improving social security. Keywords: Company’s policy · HR risks · Labor market · Precariat · Precarization · Temporary employment
1 Introduction Current trends in human resource and labor market development shall be reviewed with due regard to the challenges globalization poses to humanity and its technological, economic, social, demographic and political effects. What are the global challenges posed by the society? Among global challenges presented by the contemporary society are: – social challenges, i.e. closing of the frontier, the boundary between the oikoumene conquered by man and the “steppe region”, the area that has yet to be conquered, developed, and integrated into human life; – demographic challenges, i.e. urbanization and depopulation; – political challenges, i.e. protectionism, isolationism and attempts to embed different political and economic systems in situ of global community; – economic challenges, i.e. poverty and increasing inequality, the rise of transnational corporations; © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 99–109, 2022. https://doi.org/10.1007/978-3-030-94873-3_13
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– technological challenges, i.e. Big Data, e-money, robotics and the Internet of Things (IoT), blockchain. At present, the precarization of labor markets observed over the past few decades in both developed and developing countries, is a serious challenge to the existence of a key institution of the modern economy - the institution of formalized and legally protected employment. Traditional forms of employment are becoming increasingly rare on modern labor markets, being superseded by non-standard forms of employment, i.e. part-time employment, temporary employment, and other multiparty employment relationships, as well as disguised employment and dependent self-employment. These non-standard forms reduce the social protection of workers, worsen their economic situation and socio-psychological well-being, and often have a negative impact on their physical and mental health. The study and theoretical understanding of the Russian and foreign research of the phenomenon of precariat, labor force precarization and its impact on the labor market, as well as the associated HR risks, are of vital importance in modern socio-economic conditions.
2 Methodology In the course of study the following theoretical and empirical research methods were employed, i.e. comparative analysis of theses, hypotheses, provisions and concepts available in national and foreign science literature on the precariat; content analysis of regulatory and methodological documents governing labor relations; socio-economic processes simulation and information synthesis. The laws and other normative legal acts containing the labor law norms of the Russian Federation, recommendations and reports of the International Labor Organization, Rosstat data were used as sources of information for the study. The relevant scientific and methodological documents, normative-legal sources and reference literature were analyzed as well. The data analysis and classification methods were used for Interdisciplinary research of the precariat phenomena and precarization of the labor market; the associated HR risks were identified and assessed.
3 Results According to the definition of the International Labor Organization non-standard forms of employment, which can be considered markers of the precarization of the labor market, are as follows [9]: – – – – –
temporary (fixed-term) employment; part-time employment; temporary employment and other multiparty employment relationships; disguised employment; dependent self-employment.
Unfortunately, not all these forms of employment are successfully recorded by national official statistics. According to Federal State Statistics Service [7], by 2021
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the Russian Federation seems to have a lower fertility rate, i.e. the population growth rate has decreased (Fig. 1). In 2018 there were 10.9 births per 1,000 people, which is 5.2% lower than in 2017. Though the death rate was still lower than in 2016. The natural decrease of population was 1.6, which is higher than in 2017, when the natural decrease of population was 0.9. The labor force participation rate remains at its maximum in 2016 (Fig. 2). At the same time, from 2015 to 2018 the number of full- and part-time workers had raised, perhaps due to macroeconomic impact. 17 16,2
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Rising demographic burden is some kind of challenge for HRM (Fig. 3). The changes in the age structure of the population of Russia and decline in the number of workingage population (men aged 16–59 and women aged 16–54) resulted in ratio change of
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working-age to non-working-age population (men and women under 15 years old, men at age 60 and older, women at age 55 and older). 100%
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The number of employees working part-time upon consent between the employee and the employer is shown in Fig. 4.
Thnd. people
1100 1000 900 800 700 600 606,4 665,6 500 400 300 2013 2014
977,1 805,7 749,3
773,4
708,9
2015
810,9
2016
2017 Year
2018
2019
2020
Fig. 4. Part-time employees working under agreement between the employee and the employer (as of the first quarter of the year, thousand people) (Source: authors).
The number of part-time employees is growing (Table 1).
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Table 1. Number of part-time employees working under agreement made by and between the employee and the employer (as of the first quarter of the year, thousand people)
Russian Federation
2013
2014
2015
2016
2017
2018
2019
2020
749,3
606,4
665,6
708,9
805,7
773,4
810,9
977,1
Samara Region
14,8
10,5
10,4
15,1
16,6
15
16,8
19,6
Nizhni Novgorod Region
12,8
21
15,4
20,3
16,8
19,8
20,2
25,4
Leningrad Region
4,6
5,7
5,1
5,9
5,4
5,2
7,3
8,9
Kaluga Region
3,1
3,4
6
4,6
5,4
4,7
4,6
5,5
Saint Petersburg
51,7
50,9
55,7
54,8
56,6
62,3
69,1
71,8
Moscow
109,6
62,3
80,8
93,3
101,5
104,7
120,6
143,3
Belgorod Region
5,3
5,1
5,3
6,2
5,2
4,1
4,6
4,8
Krasnodar Region
17,2
17,9
20
23,7
22,3
20,6
24,2
30,2
Source: authors.
Temporary employment (precarious work), which is a sign of precarization and its marker, is prohibited in the Russian Federation. The concept of precarious employment is identified in Article 56.1 “On prohibition of precarious employment” of the Labor Code of the Russian Federation [6, 10]. The peculiarities for regulating the labor relations between temporary workers sent by the employer to other individuals or legal entities under the work agency agreement are governed by Article 53.1 of the Labor Code [10]. According to Eurostat data [4], in 2011 in Europe 17.4% of workers were employed part-time, and in 2019 their number increased to 17.9%. Temporary workers numerically prevailed in the Netherlands and Switzerland: 46.8% and 39.1%, respectively [4]. The increase in the number of precarious workers is due to diverse country-specific factors [12, 16]. In Australia, temporary (casual) employment is associated with low-paid jobs and one-in-four (25%) workers is a casual. Temporary (casual) workers do not enjoy such social guarantees as paid annual leave or sick leave. At the same time, they are partially compensated by higher wages in comparison with permanent workers. The number of non-standard workers in New Zealand is about 30 per cent. Among the non-standard forms of employment in African countries, temporary (casual) employment prevails, a shortage of jobs is typical for Africa. In Zimbabwe and Mali about 30% of employees are casual, in Kenya their number is 25%. In Ethiopia and the United Republic of Tanzania, about 60% of the working-age population is underemployed, while in Morocco and the Republic of South Africa the number of fixed-term labor contracts is increasing. At the same time, there involuntary part-time employment is the highest in the world, about 12% of men and 16% of employed women work part time involuntarily. In Uganda, for example, 26% of temporary workers would prefer to work more [13]. Since 2009 till 2014 there has been an increase in the number of wage workers in the U.S. from 19.6% to 25%. About 10% of workers in the U.S. work on-call or do not have a work schedule. In Canada, a third of workers are underemployed. In Latin America, changes in labor laws and reduction in wages of temporary employees resulted in reduced part-time employment to less than 10% in Argentina and about 16% in Brazil.
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It worth to be mentioned that this form of employment is more widespread across highskill jobs. At the same time, in other Latin American countries, precarious employment continues to grow. Ecuador and Peru lead the way, with more than half of wage workers employed under fixed-term contracts. The tendency for labor market segmentation into formal and informal sectors, fixedterm and permanent sectors, is observed in Asia. In South Korea, for example, the share of part-time workers increased from 14% to 19% between 2001 and 2013 [13]. High part-time employment rate is found in China, India, Indonesia, and Malaysia. About 75% of Bangladesh, India, and over 40% of Pakistan’s working-age population are underemployed. In Japan, the number of part-time workers in 2009–2014 was 27%, and in 2014 it was 30%. It should be noted that data on dependent self-employment and disguised employment relationships are difficult to obtain, so a combination of several questions in standard questionnaires is used to identify and assess it. But still there are countries that try to evaluate these employment relationships, for example, Slovakia, where in 2015 about 3.6% of workers were either self-employed or had disguised employment relationships [13]. Precarious (non-standard) employment allows companies to respond flexibly to fluctuations in workforce demand and to replace temporarily absent workers. However, when non-standard employment is used intensively by enterprises, its benefits can be outweighed by long-term negative impacts on productivity and innovation. The reluctance of enterprises to train temporary employees in industrialized countries results in part-time employment to be predominant among low-paid jobs [11]. It follows that expenses on employer-sponsored training received by temporary workers are justified. The employees take advantage of these opportunities and this contributes to increased productivity and growth. Many workers, more often women, must combine work with caring for children or sick or elderly family members. The state may support this category of workers by providing parental leave and ensuring opportunities for a smooth transition from fulltime to part-time work. Business and workers may benefit from precarious employment provided that there is a national policy response underpinned by collective bargaining agreement and comprehensive social security systems. In Italy and Spain, for example, the fixed-term contract deregulation at the time of economic stability led to an increase in non-standard employment, especially among migrants, young people, and women. At the same time, this resulted in permanent employment displacement and temporary employment expansion. The large number of short-term contracts, on the one hand, contributes to the companies’ flexibility in a changing market, but, on the other hand, affects economic growth negatively. During economic downturns, when employers did not renew contracts, temporary workers felt insecure and unprotected. To encourage companies to permanently employ workers is not an easy thing to do. Tightening regulations for temporary work leads to alternative flexible work arrangements evading policies [2, 8]. To reduce insecurity and improve the working conditions of temporary workers, complex measures shall be implemented at various levels: eliminating gaps in legislation; facilitating the transition to standard employment and eliminating social risks;
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developing a system of collective bargaining; and improving social security. An important legislative measure is the elimination of discrimination based on contract status; this will contribute to equalizing working conditions for employers. Employees employed on non-standard terms should be entitled to equal terms with permanent employees, for example, to equal hourly wages. Ensuring equal treatment of workers with non-standard employment, among whom there are many women, children and migrants, will help to combat discrimination both at separate enterprises and in the economy as a whole. The principle of non-discrimination of temporary workers is specified in EU Directives and national legislation. A guaranteed minimum number of work-hours and a pre-approved work schedule shall counteract the decline in temporary workers’ income, especially those who do on-call jobs. In addition, temporary workers must have a say in the allocation of their working hours. For example, since 2010, in France a part-time worker shall work a minimum of 24 h per week due to changes introduced into the legislation [13]. In Germany, Holland, Ghana, Papua New Guinea, and some US states, the employer shall pay for minimum hours worked to on-call employees if they show up to work as scheduled but the task is annulled or there is an early closure. A more accurate unified classification of different forms of employment will help to reduce disguised employment rate. The document “Employment Relationship: An annotated guide to ILO Recommendation No. 198” can be helpful in addressing the issues of employment classification [3]. The status of the employment relationship shall be determined with due regard to the work actually performed, rather than to the description of the employment relationships provided by the parties. This principle is codified by law (specified in the constitutions) in such countries as Argentina, Mexico, Poland, Panama, in Colombia and Venezuela. The norms that may help to avoid the excessive use of non-standard employment mechanisms are as follows: ban on employers using temporary agency staff to fill the jobs of workers who take strike action, limiting the use of fixed-term contracts for company’s permanent tasks and setting other limitations on fixed-term employment contracts use. Thus, India, Brazil, Spain, Great Britain, Turkey, Mexico, Norway and a number of other countries have legal prohibition of the use of fixed-term contracts for permanent tasks [1]. Some restrictions are imposed on on-call work and zero-hour contracts. Such contracts, for example, were banned in New Zealand in 2016. The percentage of workers employed under non-standard forms is restricted in China, Italy, and Norway. In Ecuador and Indonesia the non-standard forms of employment are allowed only for unrelated business activities. The rights and obligations of each party shall be clearly specified in the employment contracts. Employees should know who is responsible for ensuring that working conditions meet standards. Companies and recruitment agencies shall be jointly liable for health and safety, payment of wages and salaries and social security contributions in case of bankruptcy of the company. Such norms are in place in Argentina, France, India, Italy, the Netherlands, Namibia and South Africa [13]. Nonstandard workers should be able both de jure and de facto to exercise their right to freedom of association and collective bargaining to the same extent as all other workers. An important tool for regulating precarious employment abroad is collective bargaining agreements, which allow the specifics of particular enterprises or sectors to be taken into
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account [9]. Examples of successful agreements that mitigate the risks for temporary workers are presented in Table 2. Table 2. Successful collective bargaining agreements Country
Industry
Actions
Canada
Civil service
Any employee employed under fixed-term contract for 18 months must be offered a full-time position if there is a continuing need for the services of such employee
Columbia
Oil industry
Oil industry contractors and subcontractors have agreed to pay their contract workers the wages and benefits specified in the collective bargaining agreement
Norway
Multisectoral
Temporary (leased) employees shall be granted the same salary and working conditions as those applicable to the enterprise leasing their labor
Germany
Electric power and metals industries The experimental sector-wide agreement provides for salary adjustments for temporary agency employees based on length of service in order to reduce the difference with the salary of permanent employees
India
Mining and quarrying
Employers should consider the wage rate of their employees to be the minimum wage rate for contract workers performing the same tasks
Philippines
Textile industry
A temporary or casual employee who performs the work of a full-time employee for more than 156 days in any 12-month period shall be deemed to be a full-time employee
Japan
Retail
Qualification-based pay was introduced, and the same selection tests and methods are used to recruit both full-time and part-time employees (who make up 80 percent of the company’s workforce)
South Africa Automotive industry
As of August 2013, no more than 35 per cent of the employer’s workforce may be on temporary contracts
Source: authors.
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Lack of adequate social protection of temporary workers is the key issue to consider. Government policy does not always guarantee workers, regardless of their employment, access to such social security schemes as health insurance and pension funds for them to contribute to and receive services from. To ensure this, one often needs to change the existing social insurance scheme. Part-time workers are often paid minimum benefits because they receive low wages. It follows that there is urgent need for clear measures of social support for this category of workers. An example of government support for those involved in non-standard employment is the policy of the Netherlands, where in 2014 68% of women and 28% of men were employed part-time. Most part-time workers have open-ended employment contracts, which minimize the difference between them and permanent workers. The number of part-time jobs increased in 1982 due to the Wassenaar Arrangement, which was a compromise whereby unions agreed to moderate their wage demands in exchange for policies to combat unemployment. In 2000, the Netherlands adopted the Working Hours Adjustment Act as a part of the “work and care” policy, with the goal of helping to reconcile employment and family responsibilities. This Act enshrined the right for employees to either increase or decrease working hours and employers can refute employee requests for such changes only on the grounds of specific conflicting business interests [5, 14, 15]. In some countries, such as Bulgaria, Cape Verde, Germany, Iceland, Portugal, and Romania, policies facilitate access to part-time employment for all jobs including managerial ones and an employer is obliged to allow full-time workers work part-time.
4 Discussion The company’s human resources policy should be aimed at enhancement of operating efficiency under fixed-term contracts and making permanent employment more attractive and cost-effective for the company. The following organizational (managerial) measures may contribute to increasing the number of permanent employees, i.e.: 1. Regulatory provisions: – easing the registration procedure for the self-employed so that they can participate in social support systems based on the amount of real income; – control over the number and duration of fixed-term employment contracts and the nature of work done under them; – introduction of a uniform methodology (framework) and classification for assessing the labor market. 2. Measures to be taken by the company: – indexation of wages and salaries based on length of service or achievements; – conclusion of fixed-term employment contracts with temporary employees only; – providing social security and support to workers, parenting support to families with children; – maintaining a safe and up-to-date work environment;
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– providing training for employees without experience with due regard to the needs of the company, – ensuring regular advanced training of employees; – reducing bureaucracy’s costs: the introduction of electronic document management system, structural subordination; – activities aimed at increasing motivation: organizing leisure time, meals during work. 3. Recommendations for individual behavioral strategies implementation: – transition from status-based consumption to saving behavior to ensure financial “safety cushion” needed to expand bargaining options with employers and find a better alternative in the marketplace; – transition to “long-term personal development strategies”, i.e. investing in health, education, learning foreign languages; – improving one’s own financial literacy to avoid “toxic” financial decisions that do not allow to build up a “safety cushion”; – monitoring the labor market to find out if the job is at risk of automation; – developing “soft skills”: communication, empathy skills, etc. due to the rapid development and obsolescence of technology. – shifting the emphasis in personal educational strategy from applied specialties to fundamental education, on the one hand, and the active use of situational highly specialized courses and training programs, on the other.
5 Conclusion The above proposals are based on measures targeted at overcoming poverty that wage workers and self-employed workers prone to. In general, increasing economic subjects’ adaptation and flexibility and their ability to build and follow “long” strategies improve the subjective predictability of the socio-economic situation in conditions of precarization and revert the risk of erosion of trust and resource degradation both at the level of an individual, company and state. The findings of the analysis of the Russian and foreign labor market regulation show that precarization is a multifaceted and complex issue. When non-standard employment is used, the HR department shall timely and efficiently assess HR risks associated with a temporary employee being hired, draw up smart HR policy, aimed at getting the most out of this form of labor relations and leveling negative impacts on the company, paying due attention to the legislation in force.
References 1. Aleksynska, M., Muller, A.: Nothing more permanent than temporary? understanding fixedterm contracts. ILO INWORK Gover. Policy Brief 6, 12 (2015) 2. Arranz, J.M., García, C.: The interplay of the unemployment compensation system, fixedterm contracts and rehirings: the case of Spain. Int. J. Manpow. 35(8), 1236–1259 (2014). https://doi.org/10.1108/IJM-04-2012-0064
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3. Employment Relationship: An annotated guide to ILO Recommendation No. 198 (2007). https://www.ilo.org/ifpdial/areas-of-work/labour-law/WCMS_172417/lang--en/index.htm, Accessed 30 Apr 2021 4. Eurostat: Part-time employment and temporary contracts - Annual data. https://ec.europa.eu/ eurostat/databrowser/view/lfsi_pt_a/default/table?lang=en, Accessed 02 May 2021 5. Fagan, C., Norman, H., Smith, M., González Menéndez, M.C.: In search of good quality part-time employment. International Labour Office, Conditions of Work and Employment Series No. 43, Geneva (2014) 6. Federal Law “On Amendments to Certain Legislative Acts of the Russian Federation” dated 05.05.2014 N 116-FZ. http://www.consultant.ru/document/cons_doc_LAW_34683/, Accessed 04 May 2021 7. Federal State Statistics Service: Demography. https://rosstat.gov.ru/folder/12781, Accessed 28 May 2021 8. Garibaldi, P., Taddei, F.: Italy: a dual labour market in transition: country case study on labour market segmentation. Employment Working Paper No. 144. International Labor Organization, Geneva (2013). https://www.ilo.org/employment/Whatwedo/Publications/working-pap ers/WCMS_218971/lang--en/index.htm, Accessed 02 Aug 2021 9. ILO: Successful collective agreements. https://www.ilo.org/infostories/Stories/Employment/ Non-Standard-Employment#plugging-regulatory-gaps/the-role-of-collective-bargaining, Accessed 02 May 2021 10. Labor Code of the Russian Federation of 12/30/2001 N 197-FZ (as amended on 04/01/2019). http://www.consultant.ru/document/cons_doc_LAW_34683/, Accessed 04 May 2021 11. Lydon, R., Mathä, T.Y., Millard, S.: Short-time work in the great recession: firm-level evidence from 20 EU countries. IZA J. Labor Policy 8(1) (2019). https://doi.org/10.1186/s40173-0190107 12. Salvatori, A.: The anatomy of job polarisation in the UK. Journal for Labour Market Research 52(1), 1–15 (2018). https://doi.org/10.1186/s12651-018-0242-z 13. Storrie, D.: Non-standard forms of employment: Recent trends and future prospects. Dublin: Eurofound. URL: https://www.eurofound.europa.eu/publications/customised-rep ort/2017/non-standard-forms-of-employment-recent-trends-and-future-prospects. Accessed: 09.08.2021. (2018) 14. van Ours, J.: The minimum wage in the Netherlands. ifo DICE Report. ifo Institut – LeibnizInstitut für Wirtschaftsforschung an der Universität München, München 16(4), 31–36 (2019). ISSN 2511–7823 15. Visser, J.: The first part-time economy in the world: a model to be followed? J. Eur. Soc. Policy 12(1), 23–42 (2002). https://doi.org/10.1177/0952872002012001561 16. Wozniak, M.: Spatial matching on the urban labor market: estimates with unique micro data. J. Labour Mark. Res. 55(1), 1–17 (2021). https://doi.org/10.1186/s12651-021-00293-1
Current Development Trends of the System of Public Administration E. A. Khalimon1(B) , S. M. Sycheva1 , and V. Obradovi´c2 1 State University of Management, Moscow, Russia 2 University of Belgrade, Belgrade, Republic of Serbia
[email protected]
Abstract. The economy is undergoing a radical transformation in all its structures, completely changing the methods of management. Changes are taking place on a global scale based on the digital technologies being implemented. The role of the state and executive authorities is being completely rethought. They are transforming themselves into “digital governments”, IT platforms, and forming their own digital structures with a list of services that are necessary for the population. In this study the following 4 directions of development of the public administration system were identified and reviewed in detail: digital reforms in the public administration system; long-term balance and sustainability of public administration; focusing on improving the quality and efficiency of public services; implementation of project management methods for the development and implementation of state programs. Based on the conducted research, current trends in public administration have been highlighted, and it was concluded that the trends in the development of modern economies include the mandatory participation of the state. Keywords: Digital reforms · Efficiency · Project management methods · Public services · Sustainability · System of public administration
1 Introduction Economic trends and prospects for the growth of national and economic potential of countries have predicted dynamic development paths. It is necessary to note the periodicity of dynamic development, consisting of recessions (recessions, depressions) and rises. They are characterized by cyclical economic crises of varying duration. Such cycles are divided into medium – term (about once every ten years), long-term and ultra-longterm-these are centuries-old on the scale of civilization. The transition of the economy from planned economic relations to market relations does not mean the exclusion of the state from economic relations and the life of society. On the contrary, during the formation of new economic relations, the need to increase the volume of the public sector was determined. This is dictated by the fact that the market mechanism of equilibrium price formation and distribution of resource potential, economic interaction between subjects is unable to solve a whole list of problems. The state, managing the economy in market © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 110–117, 2022. https://doi.org/10.1007/978-3-030-94873-3_14
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relations, takes all measures to create favorable conditions for social partnership and for the development of a certain sphere of relations that does not function according to the laws of the market.
2 Methodology In the study, the authors used the basic methods that are used in economic science: search for information sources, data collection, systematization, analysis, comparison, clustering of data, identification of general trends, testing the scientific hypothesis about the attribution of the trend of economic development of public administration to the class of modern ones. In addition, foreign sources of literature, long-term development programs, foreign websites, regulations and scientific articles were analyzed. The methodological basis of the research is formed by the general scientific principles of the system approach; methods of logical analysis, factor analysis, comparative analysis, strategic and managerial analysis, etc., methods of economic modeling; organizational and structural modeling, qualitative research of the fundamental directions of digital infrastructure development. Also, the methodological basis of the research was the fundamental concepts and approaches of different scientists in the field of management, system analysis, strategic management and planning, design of management systems, project management. This allowed us to study the scientific problem and show its significance.
3 Results The study identified the following 4 areas of development of the public administration system: 1. Digital reforms in the public administration system. The main direction in increasing the productivity of public services and the apparatus as a whole is the centralization and robotization of the processes of providing services to consumers [12]. The goal of this transformation is to reform the state apparatus according to the laws, standards and established rules of the market mechanism operating in the economy in order to optimize public spending and improve performance. To do this, it is necessary to recruit or train competent, highly qualified managers in departments with a clearly defined area of responsibility [5]. While implementing administrative management reform, the state is carefully studying the robotization of automated processes in its daily strenuous activities. This study is based on analytical and statistical data, the existing experience of large commercial companies. The existing practice of providing a range of public services requires the use of high-quality tools when testing robotic systems. It should be noted that robotic systems provide the proper level of confidentiality [8]. The decisive element in the activity of the apparatus is a stable connection between the government and the population. The trend, customer orientation as it is carried out in the market relations of business and consumer, carries in its activities a change of
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priorities in the departments of state bodies and its services. Improving the efficiency, accessibility and quality of public services is the main direction and strategy of the ongoing reform of the administrative apparatus. For this purpose, the goals and objectives of the relationship of state institutions with customers and consumers of services are formed, i.e., a customer-oriented model of the activity of the apparatus is created. This trend of transformation obliges state bodies to focus on the existing market relations in the economy, to interact with civil society and business, giving priority to the population, which is the consumer of services. From this it should be concluded that: – public services are in demand only when they fully meet the needs of the population. Performing this indicator can be judged on the effectiveness and efficiency of the work carried out with the population. – it is necessary to proceed from the fact that the client is the reference point to which the state is obliged to provide high-quality and timely services, minimizing its losses in time and costs, both material and physical. – the government should always see itself not as a petitioner, but as an equal partner in relations in the chain of established relations: the state with its administrative apparatus is a service that the apparatus – an equal partner-is obliged to provide. – state bodies involved in the provision of services should be controlled not only by higher-level structures, but also should be accountable to the population. Modern trends in the development of computer technologies providelots of services to consumers [7]. Automation improves the working conditions of employees and service specialists, all working in the field of management, eliminates the human factor, frees from the exhausting operations of the human performer. In the era of digitalization, the IT industry has received intensive development, providing hardware workers with high-quality working conditions. 2. Long-term balance and sustainability of public administration. In order to ensure the long-term balance and sustainability of the state system, various countries have implemented a number of measures in recent years, including those aimed at: – ensuring greater stability and predictability of economic development, reducing the dependence on external factors, forming the basis for increasing investment activity and increasing the potential growth rate of gross domestic product; – formation of the necessary regulatory framework for the implementation of long-term planning, which determines the main priorities of state policy and contains indicators for ensuring state programs for the period of their implementation. With the end of the adaptation period, the goal of ensuring a balanced development of the country and expanding the potential of the economy in difficult conditions of increased mobility of the external and internal market conditions comes to the fore of the state economic policy.
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Ensuring the long-term balance and stability of the state system is the most important prerequisite for maintaining macroeconomic stability, which, in turn, creates the basic conditions for ensuring sustainable inclusive economic growth, implementing strategic objectives, and increasing the well-being of the population. Maintaining a balance between ensuring sustainability, long-term balance, and sustainable socio-economic development requires that the formation of the main budget characteristics and budget policy in general take place exclusively on the basis of a new design of “budget rules”. Strict compliance with quantitative restrictions on budget parameters is an essential means of reducing the risks associated with fiscal policy to macroeconomic and financial stability. The key objective of developing a budget forecast should be to assess, on a variable basis, the most likely trends of the state system, allowing to ensure stable macroeconomic conditions and the achievement of strategic goals of socio-economic development of the country. 3. Focusing on improving the quality and efficiency of public services. Despite the results achieved in the social and economic development of many countries, as well as the growth of budget expenditures on the social sphere over the past 15 years, the reforms carried out in the Russian Federation to improve the provision of state and municipal services have not yielded the expected results [3]. A number of issues related to the activities of state and municipal institutions remain unresolved. Despite significant efforts aimed at creating a system of regulatory financing of state and municipal services, there is still a practice of calculating the amount of financial support for the provision of such services not on the basis of economically justified costs, but on the basis of the amount of budget allocations. A separate problem that reduces the overall efficiency of budget expenditures is the inefficient use of property complexes of institutions. The lack of indicators of the effectiveness of the use of property forces public legal entities to finance the expenses of institutions for the maintenance of unused property. The regime of disposing of property secured by the right of operational management does not create incentives for the institution to effectively use state (municipal) property (including for the modernization of fixed assets). Barriers to the development of the system of providing public services is also the distribution of state tasks among state institutions by the administrative method. As a result, the authorities are not interested in improving the quality of services and the efficiency of their activities. On the other hand, the non-governmental non-profit sector is currently actively developing, and there is the greatest potential for its formation and involvement in the provision of public services. Social entrepreneurship should also be developed in the provision of public services. Despite the fact that many objects of social infrastructure, such as health, education, culture, sports and social services of the population, can be objects of public-private partnership, private partners are only responsible for the creation and operation of the corresponding objects. In many countries, there is no regulation on the ability of a private partner to provide public (municipal) services using these facilities, and a public partner
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to finance the provision of such services, which is an obstacle to the conclusion of relevant agreements. Along with the development of existing forms of public-private partnership in the social sphere, it is necessary to develop new mechanisms that ensure compliance with the economic interests of the private partner. 4. Implementation of project management methods for the development and implementation of state programs. A large number of countries are developing project management methodologies in the public sector: the United States, the EU, the Russian Federation, Portugal, Croatia, Poland, etc. [9]. States mostly develop their own methodologies, relying more or less on external professional organizations, such as IPMA or PMI, PMAJ, SOVNET. This trend is primarily aimed at improving the efficiency of public administration through the development of a standardized approach to management, as well as through the development of the project manager profession. One of the key areas for improving the efficiency of public administration remains the development of program-oriented planning based on the methodology of project and program management.To date, the regulatory and methodological framework for the formation and implementation of state programs do not yet allow us to consider state programs as a full-fledged tool for organizing the project activities of federal executive bodies, as well as a tool for improving the efficiency of budget expenditures: – state programs in most cases are considered by developers exclusively as a tool of budget planning, as a result of which the issues of coordination of activities in the relevant areas of state companies and other legal entities, municipalities, as well as measures that do not involve direct budget expenditures remain outside the state programs [2]; – the evaluation of the effectiveness of state programs is of a formal nature, a unified methodology for such evaluation has not yet been established [10]; – the state budget does not fully correspond to the program budget. While in countries that successfully implement program budgeting (for example, Australia, Austria, France), the program structure of budget expenditures is the main, and in some countries, in Russia for example, it is only one of the approved budget expenditure sections, which also contains other classification features (functional classification, as well as classification by expenditure areas); – the lack of the ability to maneuver financial resources between the structural elements of government programs, which in turn calls into question the importance of government programs as a management tool. In 2018 the next stage of program-oriented management– the implementation of large-scale national projects - was officially launched in Russia [4]. In this regard national projects, that is, the project component of state programs, will be of key importance in achieving the goals outlined by the Russian President. However, national projects are not only new measures. Many previously initiated activities are actually aimed at achieving
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the goals of national projects. Such a resource should also be taken into account when forming and implementing national projects. Long-term foreign experience showed that there were no equivalent alternatives to program-target management [6]. However, the formation of a full-fledged system of such management requires considerable time and consistency in the implementation of the ongoing reforms, changes in the management culture in the federal executive bodies, support and constant attention of the executive and legislative authorities.
4 Discussion The history of the concept of “e-government” goes back to the 1970s, but it acquired a real shape only in the early 2000s. The necessary prerequisites for its implementation appeared due to the rapid development of the Internet and the creation of new areas of private entrepreneurship-e-commerce and e-business in the 1990s. The use of information technology in government organizations in a number of countries was already in full swing in the 1990s. However, it soon became clear that “e-government” is not just a new technology of office management, but a whole concept that requires a systemic restructuring and the introduction of new models in public administration. The developers of the “e-government” programs pursued similar goals in many respects. They can be reduced to the following: – – – – –
orientation of public services to the needs of citizens; ensuring greater accessibility of the state and its services; implementation of the principle of social equality in access to public services; more efficient use of information; development of “e-business” and promotion of innovation based on market principles.
“E-government” is an essential component of the information society, the transition to which has begun in the most economically developed countries of the world. However, the international community does not have a single universally recognized strategic goal for the introduction of “e-government”. The political elites of individual states represent it in different ways, which is reflected in the development of specific projects. For example, for the United States, the information society is a mechanism for completing the globalization processes, which will result in the legalization of economic and political power on a global scale by US-based multinational corporations. In this regard, American projects pay great attention to electronic commerce, and the promotion of its developments in the private and public sectors of other countries and regions [11]. For the European Union, the information society is, first of all, a means of preserving the multinational wealth of Europe [1]. Therefore, European e-government projects are aimed at solving the problems of the individual and ensuring equal access to public services for all citizens. The construction of an “electronic country” in Japan is aimed at strengthening the ties between different segments of society, perceived as a single corporation [1]. Therefore, Japanese projects involve achieving a balance between the state, society and business, as well as increasing the country’s competitiveness on an international scale.
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5 Conclusion The current trends laid down in the development programs of public administration have a close connection with such a structure as the economy. The transformation is taking place in the following directions: – the basis for the state digital platform is being created, on which robotic information systems for management in state bodies are created; – increases the productivity of employees of the state apparatus and the digital information systems and technologies they use; – the availability of services is ensured, the efficiency of their provision is increased, which is expressed in obtaining the maximum possible return at the minimum cost; – the digital revolution in the system of public administration is being implemented in the shortest possible time. The state bears the main responsibility for the management and development of the economy, because the market: is not interested in and does not contribute to the conservation of resources of non-reproducible natural potential, often ignoring the consequences of its negative production and other activities; does not implement employment programs; is not interested in implementing long-term development programs, where the invested funds will be returned in the distant future; is not engaged in applied fundamental research and development in science. It is necessary to remember that the pauperization that took place during the formation of capitalist relations in Europe during the industrial revolution, after the wars of conquest, as well as after the destruction of the indigenous population in North America, is the consequences of the establishment of market relations, propagandized by the anti - social goal – profit at any cost. Thus, the trends in the development of modern economies include the mandatory participation of the state. The leading and guiding role of the state consists, firstly, in solving problems that do not involve direct profitability, are long in time and costly for a competitive market, and secondly, in creating safe conditions for the functioning of a complex market structure and favorable conditions for the development and functioning of society.
References 1. Arnaldi, I.: The electronics industry in Japan and EU - An assessment of the common challenges and collaboration potential (2016). https://www.researchgate.net/publication/ 330204053_The_Electronics_Industry_in_Japan_and_EU_-_An_Assessment_of_the_Com mon_Challenges_and_Collaboration_Potential, Accessed 30 Apr 2021 2. Brikoshina, I.S., Birukov, A.P., Geokchakyan, A.G.: Smart transformation of the project management system and processes as a factor in increasing the efficiency and competitiveness of the project. In: Popkova, E.G., Sergi, B.S. (eds.) ISC 2020. LNNS, vol. 155, pp. 1614–1622. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-59126-7_176 3. Decree of the Government of the Russian Federation No. 117-r of January 31, 2019. On the Approval of the Concept of Improving the Efficiency of Budget Expenditures in 2019–2024. http://www.consultant.ru/document/cons_doc_LAW_317187/, Accessed 30 Apr 2021
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4. Decree of the President of the Russian Federation of 07.05.2018 N 204 (ed. of 21.07.2020). On national goals and strategic objectives of the development of the Russian Federation for the period up to 2024. http://www.consultant.ru/document/cons_doc_LAW_297432/, Accessed 30 Apr 2021 5. Khalimon, E., Brikoshina, I., Guseva, M., Kogotkova, I., Nikitin, S.: National projects as a way to solve the problems of economic and digital disparities in different areas and regions. In: Obradovi´c, V., Todorovi´c, M. (eds.) Proceedings of the 5th IPMA SENET Project Management Conference (SENET 2019). Advances in Economics, Business and Management Research, vol. 108, pp. 105–111. Atantis Press, Paris (2019) 6. Khalimon, E., Guseva, M., Kogotkova, I., Brikoshina, I.: Digitalization of the russian economy: first results. In Mantulenko, V. (ed.) Proceedings of the International Scientific Conference GCPMED 2018 - Global Challenges and Prospects of the Modern Economic Development. The European Proceedings of Social and Behavioural Sciences, vol. 57, pp. 199–213. European Publishing, London (2019) 7. Khalimon, E.A., Vikhodtseva, E.A., Obradovi´c, V.: Smart cities today and tomorrow – world experience. In: Popkova, E.G., Sergi, B.S. (eds.) ISC 2020. LNNS, vol. 155, pp. 1340–1347. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-59126-7_147 8. Kogotkova, I.Z., Soroko, G.Y., Guseva, M.N.: Smart department: designing digital applications for smart organizations. In: Popkova, E.G., Ostrovskaya, V.N., Bogoviz, A.V. (eds.) Socio-economic Systems: Paradigms for the Future. SSDC, vol. 314, pp. 1483–1493. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-56433-9_154 9. Obradovi´c, V.: Contemporary trends in the public sector project management. Eur. Proj. Manag. J. 8, 52–56 (2018) 10. Sycheva, S.M., Chernova, T.F., Evdokimova, Y.A.: Project management transformation in the digital economy. In: Popkova, E.G., Ostrovskaya, V.N., Bogoviz, A.V. (eds.) Socio-economic Systems: Paradigms for the Future. SSDC, vol. 314, pp. 269–277. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-56433-9_29 11. UNCTAD: Technology and innovation report 2021 (2021). https://unctad.org/system/files/off icial-document/tir2020_en.pdf, Accessed 30 Apr 2021 12. Zozulya, A.V., Titova, N.V., Ciric, D.: Using the project management methods in digital marketing. In: Popkova, E.G., Ostrovskaya, V.N., Bogoviz, A.V. (eds.) Socio-economic Systems: Paradigms for the Future. SSDC, vol. 314, pp. 1475–1482. Springer, Cham (2021). https:// doi.org/10.1007/978-3-030-56433-9_153
Organizational and Economic Problems of Financial Support of the Russian Economy Growth Yu. V. Mishin1(B) and A. Yu. Mishin2 1 State University of Management, Moscow, Russia
[email protected]
2 Financial University under the Government of the Russian Federation, Moscow, Russia
[email protected]
Abstract. The purpose of this article is to concretize the proposals of the President of the Russian Federation V. V. Putin’s on using as the main tool for the implementation of national projects and state programs for the development of the scientific and industrial potential of the Russian military-industrial complex (MIC) in terms of preparing proposals for attracting extra-budgetary sources of financing capital investments for the organization of production of high-tech civilian products. The article provides a comparative assessment of the feasibility of using mechanisms for attracting extra-budgetary sources of financing for national development projects in Russia; a comparative analysis of the taxation systems of annual income of individuals in developed foreign countries is carried out; reasonable proposals are given for the proposed progressive scale of taxation of personal incomes; mechanisms for attracting additional sources of capital investments are justified; experimental calculations of possible volumes of capital investments are carried out on the basis of the proposed approach. Keywords: National projects · The military-industrial complex · Diversification of production · A flat and progressive scale of taxation
1 Introduction On September 18, 2020, at a videoconference meeting of the Military-Industrial Commission (MIC), President of the Russian Federation Putin noted that stimulating diversification is the most important issue of ensuring its sustainable and balanced development of the domestic military-industrial complex in the context of a significant reduction in arms purchases [10]. First of all, we are talking about increasing the degree of participation of enterprises and organizations of the Russian defense industry in the implementation of national projects and state programs, which will significantly increase the output of civilian products. As our President noted earlier in 2019 at a meeting on the financial recovery of enterprises of the military-industrial complex [2], the consolidated demand only for products manufactured under national projects is estimated at a total purchase amount of about 6.2 trillion rubles. At the same time, most of these products should be produced by enterprises and organizations of the domestic military-industrial complex. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 118–129, 2022. https://doi.org/10.1007/978-3-030-94873-3_15
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When assessing the technological and financial capabilities of organizing the production of civil products developed under national projects, the following circumstances should be taken into account. The main specific feature of the organization of production in most branches of Russian military engineering is the low serial number of products, which makes it necessary to use universal technological equipment. Low serial production is typical for the aerospace, aircraft, shipbuilding and nuclear industries. Enterprises and organizations that produce conventional types of weapons for the ground forces, as well as the radio engineering and electronic industries, have much more serial production. In turn, for mass-produced or large-scale civilian products, specialized equipment is used that produces one part along a rigidly specified technological route. Among other negative factors of production diversification, it should also be noted that enterprises continue to produce, although in much smaller volumes, defense products. And this leads, firstly, to an increase in their production costs due to a relative increase in the cost of military products of conditionally fixed costs (the so – called “scale effect”) and, most importantly, secondly, it seriously increases the cost of production diversification, since enterprises do not have the opportunity to repurpose the released military production capacities. As a result, the diversification of production is a very costly event. In this case, it will be necessary to create and put into operation new production facilities almost from scratch (due to the construction of new buildings and production facilities). And in the most favorable cases, it will be necessary to reconstruct existing production facilities, which, however. It will be faster and cheaper for the state.
2 Methodology During writing this work, the scientific and scientific-practical literature on complex problems of finance, economics and planning of the activities of enterprises and organizations of the machine-building profile of many authors was used. The research methods were generally based on a systematic approach to the study of socio-economic phenomena, mathematical deduction and induction, using logical and comparative analysis, grouping, comparison and analogies. The main results of the work-proposals on the volumes of additional extra-budgetary funds attracted (in the context of the main activities) were obtained on the basis of statistical data on the dynamics of socio-economic and financial indicators.
3 Results In a normally functioning economy, the main source of investment is the funds of the population attracted through financial and investment companies, insurance, pension and investment funds, as well as funds directly allocated for the purchase of shares, etc. [9]. According to Ouyang, Yi, Tang, “the BRICS countries need to attach great importance to the role of domestic demand, rationally direct consumption and investment demand and promote sustainable and rapid economic growth” [11, p. 182]. According to Rosstat, only officially registered savings of the population amount to about 25987.4 billion rubles [12]. Deposits of the population on foreign currency and ruble accounts in credit institutions of Russia for the period 2001–2018 increased
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significantly - by 5634.2% (from 453.2 billion rubles to 25987.4 billion rubles). This means that the population has about $394 billion. However, most of these funds can be invested not in production, but in housing construction. Among the securities entering the primary and secondary markets, the population prefers shares of large stable financial structures, government bonds of the federal loan, and from industrial enterprises - the fuel and energy complex. The whole problem is how to direct this money to the development of domestic production. In this regard, it is worth recalling the not so distant domestic experience: subscribing to targeted loans, for example, industrialization, reconstruction and restoration of the USSR’s national economy destroyed by the war. For more than thirty years (1923– 1957), the Central Bank of the USSR issued 65 bond loans, of which 12 were issued annually during the post-war period (1946–1957), and from 1946 to 1948, state loans for the restoration and development of the national economy were issued - the first (1946) second (1947) and third issues (1948). Since 1949, they have been called state loans for the development of the national economy. Winning bonds gave the opportunity to get a certain amount of money to the owners of the winning bonds. Holders of interest-bearing bonds received payments on them with the frequency of once every few months, and in the case of coupons - annually. In 1951–1953, the winnings were guaranteed to the owners of 35 percent of all bonds, then it decreased to 25%, and in the last 1957 year of the bond issue fell to 6%. All loans were issued for a period of 20 years (except for the 1957 issue, the circulation period of which was reduced by 4 times - to 5 years). All bonds that were not drawn on time were repaid at par within the terms established by the Ministry of Finance of the Soviet Union. In 1951–1952, government loan bonds were issued totaling 30 billion rubles, and in 1953 the volume of borrowings decreased by 2 times to 15 billion rubles, in 1954 it amounted to 16 billion rubles, in 1955–1956 to 32 billion rubles and in 1957 to 12 billion rubles. The total amount of funds raised was commensurate with the receipts of other taxes and fees to the state budget. For example, in 1948, its share in the total revenues of the state budget reached 24.6%, and in 1952 it already increased by about 1.5 times to 42%. The participation of the Russian Federation population in it is possible if two main conditions are met – the adoption, as a result of a nationwide discussion, of the state program for the modernization of the most competitive high-tech sectors of the Russian economy (using approximately the same mechanism of amendments to the constitution of the Russian Federation), and also, remembering the negative experience of returning funds to the state to the population on previously provided loans, issuing the owner of an interest-free bond a state guarantee for the return of its value and free conversion into rubles (the mechanism of domestic loan bonds). It is known, that the main source of the formation of the revenue part of the budgets of any states is tax revenues. For example, in the Russian budget for 2017, they amounted to 34110.7 billion rubles (87.2%) of all federal budget revenues, of which 3456.4 billion rubles (10.2%) fell on the personal income tax. An important reserve for increasing federal budget revenues is the transition from flat to progressive scale of taxation of personal incomes. As can be clearly seen from the characteristics of the tax rates of annual income of individuals presented in Table
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Table 1. Comparative assessment of the tax rates of annual income of individuals in developed foreign countries (Part 1) Taxable annual income (in euro)
Tax rate (as a percentage of annual income) 0
3
0
10
12
14
15
Up to 12450
20
25
Country 28
X
From 12450 to 20200
Spain X
Spain
From 20200 to 35200
Spain
From 35201 to 60000
Spain
Over 60,000
Spain
Up to 9700
x
France
From 9700 to 26791
X
France
From 26791 to 71826
France
From 71826 to 152108
France
Over 152108
France
Up to 8354
X
Germany
From 8355 to 52821
X
Germany
From 52822 to 250730
Germany
Over 250731
Germany
Up to 36950
X
England
From 36950 to 170438
England
Over 170438
England
Up to 36950
X
USA
From 36950 to 170438
USA
Over 170438 Up to 5944 From 5944 to 23775
USA X
USA X
USA
From 23775 to 60800
X
From 60800 to 127856 From 127856 to 278065
From 12320 to 23100
USA USA
Over 278065 Up to 12320
USA X
Japan X
Japan X
Japan
From 23100 to 42350
Japan
From 42350 to 46200
Japan (continued)
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Yu. V. Mishin and A. Yu. Mishin Table 1. (continued)
Taxable annual income (in euro)
Tax rate (as a percentage of annual income) 0
3
0
10
12
14
15
20
25
Country 28
From 46200 to 77000
Japan
From 77,000 to 154,000
Japan
Over 154000
Japan
Source: authors based on [17].
1 in developed foreign countries, the vast majority of them use a progressive scale of taxation (Tables 1, 2). Table 2. Comparative assessment of the tax rates of annual income of individuals in developed foreign countries (Part 2) Taxable annual income (in euro)
Tax rate (as a percentage of annual income) 30
33
35
40
41
42
45
47
Country 55
66
Up to 12450
Spain
From 12450 to 20200
Spain
From 20200 to 35200
X
Spain
From 35201 to 60000
Spain
Over 60,000
X
Up to 9700
France
From 9700 to 26791 From 26791 to 71826
France X
France
From 71826 to 152108
X
Over 152108
France X
Up to 8354
Germany
From 52822 to 250730
X
Over 250731
Germany X
Up to 36950
Germany England
X
Over 170438
England X
Up to 36950 From 36950 to 170438
France Germany
From 8355 to 52821
From 36950 to 170438
Spain
England USA
X
USA (continued)
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Table 2. (continued) Taxable annual income (in euro)
Tax rate (as a percentage of annual income) 30
33
35
Over 170438
40
41
42
45
47
Country 55
66
X
USA
Up to 5944
USA
From 5944 to 23775
USA
From 23775 to 60800
USA
From 60800 to 127856
USA
From 127856 to 278065
X
Over 278065
USA X
Japan
Up to 12320
Japan
From 12320 to 23100
Japan
From 23100 to 42350
X
From 42350 to 46200 From 46200 to 77000 From 77,000 to 154,000 Over 154000
Japan X
Japan X
Japan X
Japan X
Japan
Source: authors based on [17].
Notably, the above-mentioned tax systems of developed foreign countries differ significantly among each other in all parameters, namely, the sizes of the non-taxable base, the rates and sizes of taxable income. The minimum tax rates (0%) are the USA (up to 5944 euro), Germany (up to 8354 euro) and France (up to 9700 euro). In turn, the maximum tax rates of 66% are set in Japan (for income exceeding 154,000 euro), Spain-47% (income over 600,000 euro), as well as France, Germany, and England45% (respectively for income over 152108, 250713 and 170438 euro). According to the work of Lee, Wang, if the excess tax burden is small, a production subsidy is used to improve social security in combination with import tariffs and a partial privatization policy. However, if the excess tax burden is relatively large, the government may switch to using a production tax in combination with a tariff policy and partial privatization to improve social welfare [7]. Today, the idea of switching from a flat scale to a progressive one was considered in practice plane over the past ten years at the legislative level. The main reason is that the incomes of the majority of Russians are falling, and prices are rising, which leads to a decrease in tax revenues – a drop in federal budget revenues and thereby a decrease in spendings. There are three main arguments in favor of switching to a progressive scale. Firstly, in this case, the level of income inequality in different groups of the population decreases against the background of differentiation of their incomes. Over the past three years (2015–2017), the number of poor people (with incomes below the subsistence minimum) remains approximately at the same level and amounts to 19.5 million people, and the deficit of their monetary income for the above-mentioned period increased by
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2.3% (from 700.5 to 716.6 billion rubles). According to the results of a sample survey of household budgets conducted in 2015–2017, approximately 60% of respondents had an income of up to 27 thousand rubles per month, 30% from 27,000 to 60,000 rubles and 10% over 60,000 rubles. Secondly, the involvement of excess incomes in turnover and an increase in tax revenues to the budget. An increase in this tax alone by 1% is equivalent to an increase in tax revenues to the budget in the amount of 39.6 billion rubles. Thirdly, Russia already has experience in using the taxation of personal income on the basis of a progressive scale in 1998–2000. The main reason for the rejection of this system was a sharp drop in the ruble exchange rate and citizens’ incomes due to the default announced by the Russian Federation on August 17, 1998. Of the many methodological approaches that exist in this area, the authors identified three main ones. The first two were born in the bowels of the State Duma of the Russian Federation. The first is the project of the Communist Party faction. It assumes exemption from taxation of personal income of less than 20 thousand rubles per month, and rich Russians (who have an income of more than 400 thousand rubles per month) must pay 35% to the budget. Another project is less “radical”, since it provides for a smoother tax increase (from 13% to 16%) from income of 10,000 rubles to 1,000,000 rubles per month. The third is the progressive scale of taxation of the total income of individuals, which was previously in force and tested in the Russian Federation for three years (1998– 2000). It included six tax rate groups: 12, 15, 20, 25,30 and 35%, the amount of income received is divided (depending on tax rates) into constituent elements-subgroups, each of which has its own tax rate. The increased tax rate is applied not to the entire amount of income, but only to the part of it that exceeds the previous subgroup, as a result of which the amount of tax paid by taxpayers gradually increases. The amount of tax rates varies depending on the mass of total income received in a calendar year, from a minimum of 12% (income up to 20,000 rubles per year) to a maximum of 35% (income up to 100,000 rubles and above). The authors took this system as the basis of the proposed approach, adjusted for the growth (for the period from 2000 to 2017) of the average monthly salary and available statistical data for employees, grouped depending on the amount of wages they receive. The results of experimental calculations of the additional amount of funds from the transition to the proposed progressive scale of taxation of personal income are presented in Table 3.
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Table 3. Calculation of the additional amounts of funds from the transition to the progressive scale of taxation of personal income 2017 (thousand people)
Tax rate (in % of income)
Tax amount (million rubles)
Current
Suggested
Current
Suggested
2.
3.
4.
5.
6.
The number of 146804 people employed in the economy in total, including with an annual income:
x
x
300 thousand rubles
13.0
13.0
264786.6
264786.6
-
300–480 41707.4 thousand rubles
13.0
15.0
2114565.2
2439882.9
+325317.8
480–720 18476.7 thousand rubles
13.0
20.00
1462242.6
2249604
+787361.4
720–1032 1722.3 thousand rubles
13.0
25.00
196135.5
377183.7
+181048.2
1032–1320 2347,6,0 thousand rubles
13.0
30.0
358901.1
828233.3
+469332.2
over 1320 629.0 thousand rubles
13.0
35.0
107936.4
290598
+182658.6
TOTAL
x
x
x
x
3589628.1
1.
6789.4
x
Amount of additional tax revenues (million rubles) 7. x
Source: authors.
The general assessment (calculations) of the proposed measures to attract additional internal funds is shown in Table 4. At the same time, the total amount of financial resources attracted to finance capital investments is about 5497916.7 million rubles, the lion’s share of which - 3589628.3 million rubles (65.2%) falls on the results of measures from the transition from a flat to a progressive scale of taxation, 1206950 million rubles - the purchase of domestic loan bonds by the population (22.0%) and 701338.6 million rubles (about 13.0%) - income tax on enterprises and organizations of mechanical engineering.
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Yu. V. Mishin and A. Yu. Mishin Table 4. Measures to attract additional funds to finance investment activities
No. p/p
Event
Initial information for the calculation
Calculation
Amount of funds (billion rubles)
1.
2.
3.
4.
5.
1.
Transition from a flat to a progressive scale of taxation of personal income
Rosstat data on the grouping of employees depending on the amount of income received [12],as well as information on the average monthly salary by types of economic activity [12]
Grouping the number of the working population depending on their income level. A detailed calculation is given in Table 3
3589628.1
2.
Reinvestment in the development of production of the profit tax of organizations of machine-building industries
Rosstat data on the mass of profit received by the industry in 2017 3506693 million rubles [12]
3506693 million rubles x0,2 = 701338.6
701338.6
3.
Purchase by the population of government bonds of internal loans for the development of innovative industries
Rosstat data on 12069500x0, 1 = household deposits 1206950 in Sberbank of Russia at the beginning of 2018 – 12069500 million rubles [12]
TOTAL (calculated by the authors)
1206950
5497916.7
Source: authors.
4 Discussion According to the study of Sepehrdoust, Tartar, Davarikish, “scientific productivity provides the basis for improving, modifying and modernizing products and, by creating competitive advantages, creates conditions for entering international markets” [15, p. 22]. Significant capital investments will be required to organize the production of competitive civilian products. Audretsch and Lehmann point out that different types of financial organizations have different characteristic preferences for financing various industries and projects [3, p. 340], and according to the Khalimova, Yusupova study, “the development of the high-tech sector plays an important role in ensuring the competitiveness of the national economy” [5, p. 316], but “is characterized by significant sectoral imbalances and territorial unevenness” [5, p. 316].
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Today, with the decline in production volumes caused by the pandemic and the reduction of the gross domestic product, the need to provide social support to the poor, it will be difficult for the Russian Government to find additional funds in the state budget for technical re-equipment and reconstruction of production, and in some cases new construction. In these conditions, there is a problem of finding internal and external extra-budgetary sources of financing investment activities. Academician of the USSR Academy of Sciences Aganbegyan (2019) suggests using a five-fold increase in long-term investments by state-owned banks (although the term state-owned is not clear, only the Central Bank is state-owned in Russia) by transferring current (short - term loans) funds to long-term investment ones [1]. This suggestion implicitly implies (in case of a slight increase in the volume of credit resources) an adequate reduction in short-term lending. Let’s illustrate the consequences of this proposal on real data. Thus, in 2017, Russian commercial banks invested money in the fixed capital of economic entities (in the form of long-term loans) for a total amount of 1,369.6 billion rubles. The five-fold sum in this case will amount to 6848 billion rubles. They also provided short-term loans totaling 33819.9 billion rubles over the same period. Thus, we are talking about reducing short-term lending to legal entities (the purchase of working capital) by about 20%. All this, in our opinion, can, firstly, increase the rates for the use of monetary funds, and secondly, thereby worsen the financial and economic situation (in the conditions of an “artificial” shortage of funds caused by an increase in long-term lending due to a reduction in short-term lending), first of all, high-tech, knowledge-intensive enterprises that have a long production cycle of manufacturing products. Thus, according to the calculations of Ksenofontov, Shirov, Polzikov and Yantovsky (2018), the average period of capital circulation (the term for granting a loan) reaches the greatest value in the form of economic activity – the production of air, sea and railway transport – 567 days (about 2 years) and the production of machinery and equipment - 204 days (about 7 months) [6]. We should also agree with the proposal of Aganbegyan [1], on the use of public funds as sources and the exemption of enterprises from income tax. This will contribute, in his opinion, to its coming out of the shadows and stimulating its own investments, which will make it possible to increase investments by 1 trillion rubles annually. In fact, an increase in investments due to the exemption of all enterprises from this tax gives even greater savings, about 2 times more. Thus, according to Rosstat data for 2017, the total profit reached 10320527 million rubles [12]. Taking the income tax equal to 20%, we get a possible amount of additional investments of 2064105.4 million rubles. But the main problem is that the federal budget revenues will not reach these two trillions. Therefore, it is necessary to release not all enterprises, but only high-tech enterprises of the machine-building profile, the so-called manufacturing industries, which are at the forefront of scientific and technological progress. And its suggestion (especially taking into account the sanctions imposed by the United States on the securities of the Russian Federation) to increase the public debt, which reached 518.9 billion dollars as of 01.10.2018), due to borrowings on foreign financial markets, cannot be accepted. As can be known, the main condition for the provision and repayment of longterm loans by the real sector of the economy is its compliance (high correlation) with
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the refinancing rate set by the Central Bank of the Russian Federation with the actual profitability of the manufactured products. Currently, the discount rate of the Central Bank of the Russian Federation is set at 5.0% per annum, which does not allow receiving and returning funds obtained from credit institutions, since the net profit remaining at the disposal of enterprises does not allow the return of these funds. At the same time, it should be taken into account that in Russia high-tech investments are made with the participation of state ownership, and such companies, according to the Rybalka (2020) study, “have a lower probability of success” [14, p. 264]. If we consider foreign direct investments as a source of direct long-term investments in the real sector of the economy, the authors agree with the position of Aganbegyan, who does not consider them as the main engines of growth of the Russian economy [1]. According to Rosstat, in 2017 (compared to 2015), foreign direct investment in the Russian economy increased more than fourfold (from 6853 to 28557 million dollars) [13]. Countries that have significantly increased direct investments compared to 2016 (by more than 1 billion rubles) in 2017 were: Cyprus - 8693 million dollars, the Bahamas - 6211 million dollars, Luxembourg - 3378 million dollars, Singapore - 2703 million dollars, the United Kingdom (Great Britain) - 2102 million dollars, Switzerland - 1511 million dollars and Bermuda - 1366 million dollars. The negative trend of the so-called foreign aid for the above-mentioned period (2015– 2017) is that direct investments from Russia to other foreign countries exceeded the volume of direct investments of these countries in its economy by 1.4 times, so it can be argued that direct investments primarily from such states as Cyprus, Singapore, Luxembourg and Switzerland are essentially Russian. In Russia, there was no repetition of the Chinese experience, characterized according to Jin (2020) by the fact that “thanks to the huge market potential and business opportunities, China became a “battlefield” in which no transnational corporation can avoid competition” [3, p. 114]. At the same time, the study by Xia, Liu (2017) describes the effectiveness of attracting foreign investments to China and “emphasizes the importance of differentiating the impact of different types of competition” [16, p. 734], characterizing the ambiguity of the effectiveness of foreign investments. Liu, Cheng, Zhong (2017) on the results of their research, came to the conclusion that in China “foreign direct investment slows down economic growth in the manufacturing sector” [8, p. 223]. As you can see, the results of foreign authors also indicate that ensuring the inflow of foreign investments cannot be an absolute goal in itself.
5 Conclusion Postulating the vital importance of foreign investments for strengthening the Russian economy is nothing more than speculation and manipulation. The main problem is not the lack of investments, but the technological backwardness of Russia, which most likely will have to be overcome on its own. To do this, it is necessary first of all to restore and develop the structural and technological potential of domestic mechanical engineering, primarily electronics (element base) and machine tool construction. The proposals given in the article (directions and mechanisms for attracting extra-budgetary funds) can be used in the practical activities of federal executive authorities in determining the amounts
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of extra-budgetary financing of measures of state programs for the development and diversification of defense production, conducting predictive justifying calculations of indicators of strategies and state programs for the development of machine-building industries.
References 1. Aganbegyan, A.: Seven steps to resume meaningful socio-economic growth. Econ. Strat. 4, 42–50 (2019) 2. Arkadiev, A.: Putin said that the demand for peaceful products of military-industrial complex enterprises is trillions of rubles (2019). https://tvzvezda.ru/news/201910161718-yFDCD. html, Accessed 18 Apr 2021 3. Audretsch, D.B., Lehmann, E.E.: Financing high-tech growth: the role of banks and venture capitalists. Schmalenbach Bus. Rev. 56, 340–357 (2004) 4. Jin, B.: Path to innovation: technological progress and structural upgrading. In: Jin, B. (ed.) China’s Path of Industrialization: Endeavors and Inclusiveness, pp. 103–130. Springer, Singapore (2020). https://doi.org/10.1007/978-981-15-1506-4_5 5. Khalimova, S.R., Yusupova, A.T.: Influence of regional conditions on the development of high-tech companies in Russia. Reg. Res. Russia 10, 308–317 (2020) 6. Ksenofontov, M., Shirov, A.A., Polzikov, D.A., Yantovsky, A.A.: Estimation of multiplicative effects in the Russian economy based on input-output tables. Forecast. Prob. 2(167), 3–14 (2018) 7. Lee, J.-Y., Wang, L.F.S.: Foreign competition and optimal privatization with excess burden of taxation. J. Econ. 125(2), 189–204 (2018). https://doi.org/10.1007/s00712-017-0592-y 8. Liu, J., Cheng, Z., Zhong, N.: Development of China’s manufacturing sector: industry research. In: Li, L., Du, Z. (eds.) A Research Report on the Development of China’s Manufacturing Sector. Current Chinese Economic Report Series, pp. 171–311. Springer, Singapore (2017). https://doi.org/10.1007/978-981-10-4445-8_5 9. Mishin, Y.: Organizational and economic aspects of state support for enterprises and organizations of the military-industrial complex. MIR Modern. Innov. Dev. 10(2), 144–165 (2019) 10. Official Internet Resource of the President of Russia: Meeting of the Military-Industrial Commission (2020). http://www.kremlin.ru/events/president/news/64049, Accessed 18 Apr 2021 11. Ouyang, Y., Yi, X., Tang, L.: Economic growth and transformation path of the brics countries. In: Growth and Transformation of Emerging Powers, pp. 113–187. Springer, Singapore (2019). https://doi.org/10.1007/978-981-32-9744-9_4 12. Rosstat: Russia in numbers. 2018. Moscow. A short statistical collection (2019). https://www. gks.ru/free_doc/doc_2018/rusfig/rus18.pdf, Accessed 18 Apr 2021 13. Rosstat: Russia in numbers. 2020. Moscow. A short statistical collection (2021). https://ros stat.gov.ru/storage/mediabank/GOyirKPV/Rus_2020.pdf, Accessed 18 Apr 2021 14. Rybalka, A.I.: Relationship of property structure and performance of high-tech technology companies. Stud. Russ. Econ. Dev. 31, 264–270 (2020) 15. Sepehrdoust, H., Tartar, M., Davarikish, R.: Does scientific productivity stimulate intensified technology exports in developing economies. J. Knowl. Econ. (2021). https://doi.org/10.1007/ s13132-021-00799-6, Accessed 08 June 2021 16. Xia, T., Liu, X.: Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures. J. Int. Bus. Stud. 48, 716–739 (2017) 17. Yurenev, Y.: Overview of taxes in Europe: a comparative table of the main taxes for individuals and legal entities (2021). https://prian.ru/pub/obzor-nalogov-v-evrope-sravnitelnaya-tablicaglavnyh-nalogov-dlya-fizicheskih-i-yuridicheskih-lic.html, Accessed 18 Apr 2021
Model of the Tax Management System in the Conditions of Cash Turbulence A. A. Silaev, G. YU. Parshikova(B) , and A. A. Perfiliev State University of Management, Moscow, Russia [email protected]
Abstract. The authors propose the simplest model of the taxation management system, the methodological basis of which is the Fredholm integral equation of the second kind and the naturally occurring boundary conditions related to it, which allow us to distinguish a single solution from a two-parameter system of solutions. The model takes into account a concentrated lag, that is, a delay, an excessive increase of which delays investment tax flows into the economy, which reduces its flexibility and turbulence of cash disbursement. The authors justifiedthe role of artificial intelligence (in simple cases, robotics) for a global (integral) model that reflects the process of tax collection, focused on minimizing “arrears”, that is, those funds that could become taxable, but, for various reasons, did not become them. The result of the work is the study of a mathematical model of the tax management system. Two methods (exact and approximate) are proposed to solve the Fredholm integral equation which is a formalization of the process under study. Keywords: Degenerate kernel · Eigenfunctions · Eigenvalues · Fredholm integral equation of the second kind · Method of moments
1 Introduction One of the notable “vectors”, both in the direction and in magnitude, along which the resolutions of the Ministry of Economic Development “move”, is the optimization of the structure and volume of collectedtaxes. In particular, explicitly or implicitly, the Ministry solves the problem of minimizing funds that, according to the law, should be taxable, however, they don’t belong to this category yet (for various reasons). In addition, the decision-maker, the time allotted for collecting taxable funds, and the optimization of the structure of this time period are considered too. Consequently, the decision-maker is able to maximize the integral amount of taxable funds using an extensive computer modeling system and on the basis of well-thought-out criteria: at the preliminary stage of forecasting in the form of an economic and mathematical model (EMM), and taking into account the priorities of individual components of the investment tax vector. The same model should reflect timing, in particular, lags (unavoidable delays in tax collection, in the form of a time vector, with fundamentally different components), the volume and structure of investment losses resulting from excessively prolonged lags. Since when © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 130–137, 2022. https://doi.org/10.1007/978-3-030-94873-3_16
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creating such a multi-model, the dominant role is assigned to the system of creating artificial intelligence and progressive robotics in those areas of the economy where it is possible and rational, the authors believe that in the future promising tax collection management system, it is necessary to use not discrete EMM, but integral ones that are continuous in time and the movement of direct and reverse financial flows [2, 9, 10].
2 Methodology The authors suggest, as a primary mathematical material, to begin with the study of the Fredholm integral equation of the second kind with the following continuous, but not having a continuous first derivative, kernel [12] K(t, s) = min {t; s} s, if s ≤ t, t, if s > t.
(1)
The economic interpretation of the core chosen by the authors is the amount of money that were not yet collected in the form of taxes, that is, a lot of “virtual” taxes. It is this volume of “virtually” not collected funds that should be minimized. Let’s take, bearing in mind the qualitative, not quantitative solution of the Fredholm integral equation of the second kind and the subsequent finding of its eigenvalues and eigenfunctions, the length of the planning horizon – the time interval on which the forecast is carried out, in the form of a segment [0; 1] of length “unit” and study the Fredholm integral equations of the second kind connected by endogenous logic, interesting studies of which are presented in the study of Mihlin S. [8]: 1 K(t, s)y(s)ds = f (t).
y(t) − λ ·
(2)
0
As the right part of Eq. (2), we take the quadratic dependence of external influence on the taxation management system (the parabolic form of external influence on the management system is quite characteristic for the economy in general and taxation in particular): f (t) = αt 2 + βt + γ , and for certainty, let’s take: α = −1; β = 2; γ = 0. We obtain an inhomogeneous integral equation t y(t) = λ ·
t s · y(s)ds − λ · t ·
0
y(s)ds + 2t − t 2
(3)
1
(the kernel formula (1) is taken into account here). Let’s note that y(0) = 0. We study the resulting integral equation: we find its exact and approximate solutions.
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3 Results To find an exact solution, we proceed to the equivalent Sturm-Liouville boundary value problem for the corresponding second-order ODE [5]: we differentiate (3) by t sequentially, and twice: y (t) = −λ ·
t
y(s)ds + 2 − 2t, y (1) = 0.
1
Repeated differentiation leads to an ordinary differential equation of the second order, supplemented by boundary conditions y + λ · y = −2; y(0) = 0; y (1) = 0.
(4)
The partial solution of an inhomogeneous equation has the form ϕ(t, λ) = − λ2 . Let’s find the eigenvalues and eigenfunctions of the equation: y + λ · y = 0; y(0) = y (1) = 0.
(5)
It is obvious that for λ = 0 a problem with boundary conditions y = 0; y(0) = y (1) = 0 has a trivial solution. √ √ Let λ < 0. Then the general solution of the equation y(t) = C1 e −λ·t + C2 e− −λ·t also has a trivial solution, and the equation does λ < 0 not have any eigenvalues (and eigenfunctions). Let λ > 0. This case is the most important for the LPR. The general solution takes 2π > 0- the period of the desired solution, depending on the form (in particular, T = √ λ the eigenvalue λ): √ √ y(t) = C1 cos λ · t + C2 sin λ · t. At the left end, the task generates a condition: y(0) = C1 = 0 ⇒ y(t) = C2 sin
√
λ · t.
Let’s calculate the first derivative and use the second boundary condition: √ √ √ √ y (t) = C2 λ cos ( λ · t) ⇒ y (1) = C2 λ cos λ = 0. √ Whence it follows that C2 = 0 either cos λ = 0, but C2 = 0 is excluded, for then y(t) ≡ 0. Therefore 2 π √ π + π n ∀n = 0, ±1, ±2, ±3, ... λ = + π n ⇒ λ = λn = 2 2 We obtained a discrete spectrum of eigenvalues, each of which is (strictly)positive, and the set of eigenvalues contains infinitely many elements and lim λn = +∞, conn→±∞
sequently, the period characteristic for collecting “missing” taxes tends to zero. The corresponding infinite system of linearly independent eigenfunctions is: 5π ϕ0 (t) = sin( π2 · t); ϕ1 (t) = sin( 3π 2 · t); ϕ2 (t) = sin( 2 · t); π ..., ϕn (t) = sin( 2 (2n + 1) · t)...
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(it is accepted here C 2 = 1). It is not difficult to verify that the system consists of orthogonal, but not normalized functions on the segment [0; 1], and the length of the eigenvector in the root-mean-square norm is 1 π 1
ϕn (t) = sin2 ( (2n + 1) · t)dt = √ . 2 2 0
Thus, the system of linearly independent trigonometric functions that are orthonormal on the segment [0; 1] and are solutions of the homogeneous Sturm-Liouville boundary value problem has the form: √ π ϕn (t) = 2 · sin( (2n + 1) · t), n = 0, 1, 2, 3, ... 2 The eigenvalues corresponding to the desired functions form an infinite sequence of positive numbers: 2 π π2 9π 2 25π 2 49π 2 ; λ1 = ; λ2 = ; λ3 = ; ...λn = + π n , ... (6) λ0 = 4 4 4 4 2 the λn periods corresponding to these frequencies are as follows: 2π 4 4 4 T0 = √ = 4; T1 = ; T2 = ; ...; Tn = ; ... 3 5 2n + 1 λ0 Thus, in the model proposed by the authors, the period of tax collection “in the second round”, that is, according to experts, the taxes missing according to the primary (a priori) “plan” can be made small or, at least, quite insignificant. Since the partial solution of the differential equation can be found by the formula ϕ(t, λ) = −
2 2 =− π = ϕn , λ ( 2 + π n)2
then it is clear that lim ϕ(t, λ) = lim ϕn = 0 and desired “private interferences” do not n→±∞
n→±∞
significantly affect the behavior of the economic system that reflects the tax process under study in the (long-term) perspective. For an approximate solution of problem (2), we can use the method of nonpolynomial spline functions [7]. We will apply to this problem the classical, approximate in nature, method of moments [5]. Let’s consider the “residual” for the Fredholm equation of the second kind: b I [yn (t)] ≡ yn (t) − λ ·
K(t, s)y(s)ds − f (t).
(7)
a
If it is possible to “reset” the desired “discrepancy”, then the resulting solution Y (t) ≡ yn (t) will be accurate. yn (t) We will look for an approximate solution in the form of a finite sum of linearly independent functions: yn (t) =
n i=1
ci · i (t) + f (t).
(8)
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Let’s note that the search for an approximate solution in the form of a functional series generates an additional problem-the study of the quality of its convergence. In the formula of the approximate solution (8) i (t) (i = 1, 2, ..., n) - correctly selected linearly independent functions, which are called coordinate functions; the final set c1 , c2 , ...cn is undefined constants. Substituting the assumed form (8) of the approximate solution in the left part (7), we determine its specific “residual”: ⎫ ⎧ b b n ⎬ ⎨ cj j (t) − λ K(t, s)j (s)ds − λ K(t, s)f (s)ds. I [yn (t)] = ⎭ ⎩ j=1
a
a
In our formulation of the problem, a = 0;b = 1; the kernel is given by the formula (1). The essence of the method of moments is that the constants c1 , c2 , ..., cn are determined from the condition of orthogonality of the equation residual (7) to all linearly independent coordinate functions 1 (t), 2 (t), ..., n (t): b I [yn (t)] · i (t)dt = 0 for all i = 1, 2, 3, ..., n. a
We get a system of linear algebraic equations for finding constants c1 , c2 , ...cn : n
cj · (αij − λ · βij ) = λ · γi , i = 1, 2, 3, ..., n,
(9)
j=1
in which the notation is entered: b αij =
i (t) · j (t)dt = αji , a
b βij =
γi =
a
b K(t, s) · i (t) · f (s)ds, (where i = 1, 2, 3..., n).
dt a
K(t, s) · i (t) · j (s)ds = βji ,
dt a
b
b
a
Let’s note that only the parameter γi depends on the right side of f (t) of the external “disturbing” effect on the system. The corresponding system of linear homogeneous algebraic equations has the form: n
cj · (αij − λ · βij ) = 0, i = 1, 2, 3, ..., n.
j=1
In order for the system to have a non-trivial solution {c1 , c2 , . . . , cn } = 0, it is necessary and sufficient that its determinant is equal to zero: D(λ) = det αij − λ · βij = 0.
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From there we find the eigenvalues of the integral equation (of course, approximately). For each of these approximate eigenvalues, we define an approximate eigenfunction corresponding to it, the complete set of which forms a system of linearly independent eigenvalues, pairwise orthogonal functions on the integration interval [0; 1] are symmetric (linear independence follows from the fact that the matrices [8]). Let’s suppose that D(λ) = 0. Then, from the inhomogeneous system of linear algebraic Eqs. (6), the parameters are uniquely determined c1 , c2 , ...cn . We restrict ourselves to two members of the expansion of the approximate solution Y (t) according to the Maclaurin formula: Y (t) = c1 t + c2 t 2 . Here we consider: the condition Y (0) = 0 and the fact that on the segment [0; 1] the coordinate functions we selected 1 (t) = t; 2 (t) = t 2 are linearly independent. Substituting Y (t) Eqs. (7) into the “residual” and calculating the integrals, we get: 3
4
I [Y (t)] = c1 t + c2 t 2 − {λ · c13t + c24t + t( c21 + c32 ) 3 4 λ 4 t ]. −( c12t + c23t )} = c1 [(1 − λ2 )t + λ6 t 3 ] + c2 [− λ3 t + t 2 + 12 The found function, according to the method of moments, is identified by the method of orthogonalization of the “discrepancy” with respect to the two selected coordinate functions 1 (t) = t; 2 (t) = t 2 on the main segment [0; 1]: 1
1 I [Y (t)] · t dt = 0;
0
I [Y (t)] · t 2 dt = 0. 0
Where does the system of two equations with three unknown parameters come from?λ, c1 , c2 : λ λ + c2 · − λ9 + 72 + 41 = 0, c1 · (1 − λ2 ) · 13 + 30 λ λ λ + c2 · − 12 + 84 + 15 = 0. c1 · (1 − λ2 ) · 41 + 36 Equating the determinant of this system to zero to obtain a non-trivial solution, we get a quadratic equation with a positive discriminant: 65λ2 − 1692λ + 3780 = 0 ⇔ λ2 − 26, 03λ + 58, 15 = 0. From where λ1 ≈ 2, 46; λ2 ≈ 23, 57 (with accuracy of two decimal places). Let’s compare the obtained values with the calculated (6) earlier values λ0 and λ1 : λ0 =
π2 4
≈ 2, 467 ≈ 2, 47; λ1 =
9π 2 4
≈ 22, 206 ≈ 22, 21.
We see that the accuracy for the first characteristic number is quite high: λ1 − λ0 ≈ 0, 007 ≈ 0, 2%, while for the second number, the error reaches a significant value of about 6%. It should be noted that the use of integral equations for the study of applied issues has recently begun to attract scientists [1, 3, 4].
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4 Discussion Currently, the economy is considered as a complex developing system, for the quantitative description of which it is necessary to use mathematical models of various complexity degrees. A mathematical model is a conceptual tool focused on managing the simulated process. Complex economic processes with positive and negative feedback are usually described by differential or difference equations [7, 11]. If there is an accumulation of a dynamic indicator in economic processes, both with a “plus” sign and with a “minus” sign, then it is more convenient to use integral equations when modeling them. This is the principled position of the authors. The majority of processes with a cumulative character, in which the resulting indicator continuously accumulates or continuously “evaporates”, allows modeling using the apparatus of integral equations [9, 10]. Taxation in the conditions of cash turbulence refers to such processes. And the authors offer an effective and fairly simple optimization model of taxation. This model is described by the Fredholm integral equation of the second kind. Its core sets the amount of"virtual” taxes. It is this volume of “virtually” unrecognized funds that should be minimized.
5 Conclusion Despite the apparent simplicity of the chosen model, the conclusions arising from its study are very significant: 1. The “second circle” model for collecting “virtual” taxes is fundamentally integral in form and optimized in content. 2. Additional conditions distinguish completely deterministic strategies from the (infinite) set of solutions of the desired model, and these conditions are of a boundary nature (and not initial, like the Cauchy conditions for differential equations (of the second order)). 3. The model is"flexibly” adapted in relation to taking into account real delays (socalled lags), which can be introduced into the corresponding definite integrals in the form of an argument that deviates in time. 4. Artificial intelligence (in the simplest case, a robot). It can be displayed in the model in the form of a"trigger"or a switching function that can minimize the corresponding"discrepancy"characteristic of the primary tax collection (direct the volume of"arrears” to zero). 5. An extensive computer modeling system, based on logically thought-out criteria, with the involvement of AI (in simple situations – robotics), is able to take into account the “rating” priority parameters and, analyzing direct and inverse financial relationships and their turbulence (first and second derivatives, that is, speeds and accelerations), conduct the second “vector” stage to optimize the collection of taxes of the second order (that is, the “second round”): mathematical modeling of the taxation system plays a primary role in this issue.
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References 1. Alhawamda, H., Taib, B.M., Eshkuvatov, Z.K., Ibrahim, R.I.: A new class of orthogonal polynomials for solving logarithmic singular integral equations. Ain Shams Eng. J. 11(2), 489–494 (2020) 2. Bulnes, F. (ed.): Recent advances in integral equations. London: IntechOpen (2019) 3. JabariSabeg, D., Ezzati, R., Maleknejad, K.: A new operational matrix for solving twodimensional nonlinear integral equations of fractional order. Cogent Math. 4(1), 1347017 (2017) 4. Jafari, H.: A new general integral transform for solving fractional integral equation. J. Adv. Res. 25, 205–216 (2020) 5. Korn, G., Korn, T.: Handbook of mathematics for scientists and engineers. Nauka, Moscow (2007) 6. Maleknejad, K., Rashidinia, J., Jalilian, H.: Convergence analysis of non-polynomialspline functions for the Fredholm integral equation. J. Comput. Math. 97, 1187–1211 (2020) 7. Malykhin, V.I.: Economic - mathematical models of the taxation system.Voronezh: IMMiF (2008) 8. Mihlin, S., Smolnitsky, X.: Approximate Methods for Solving Differential and Integral Equations. Nauka, Moscow (1965) 9. Parshikova, G., Silaev, A., Perfilyev, A.: Fredholm linear integral equations of the secondkind in an application to economics. Innov. Invest. 9, 162–169 (2020) 10. Parshikova, G., Silaev, A.: Integro-differential good model and economic dynamics. Innov. Invest. 1, 140–144 (2021) 11. Ternovsky, V.A.: Mathematical models of the taxation for the various classical economiccircuits of industrial and market activity. Bull. VSU Ser. Econ. Manag. 2, 330–335 (2011) 12. Yuldashev, T.K.: On the solvability of a boundary value problem for the ordinary Fredholmintegro-differential equation with a degenerate kernel. Comput. Math. Math. Phys. 59, 241–252 (2019)
Digital Strategies for Improving Global Supply Chain Resilience and Agility V. V. Efimova(B) State University of Management, Moscow, Russia
Abstract. The purpose of the study is to identify trends that affect the formation of supply chains in conditions of uncertainty and to develop proposals to increase their stability and flexibility. Research objectives: to identify the factors that affect the formation of global supply chains and local supply chains; to identify modern technological trends that affect the flexibility and stability of supply chains; to study digital strategic tools that allow increasing the flexibility and stability of global and local supply chains. The main results obtained in the course of the study: recommendations on the use of digital strategic tools to increase the stability and flexibility of global supply chains, as well as to form local supply chains were created; a methodology for improving the reliability of supply chains were developed. Keywords: Artificial intellect · Supply chains management · Information technologies · Logistic ecosystem · Logistic robots · Robotics technology
1 Introduction Modern global supply chains face a number of problems, including rapidly changing demand, hyperpersonalization of customer needs, lack of labor resources, operational inefficiency. At the same time, modern information technologies, artificial intelligence technologies, robotic systems for industrial and service purposes have a decisive impact on the quality level of products and processes in global supply chains. The recent conditions and circumstances of uncertainty that require fast and highquality supplies and related services provided a forced transition to the widespread practical implementation of industry 4.0 technologies in global supply chains. Logistics automation leads to a reduction in overall operating costs, and allows 3PL providers to increase the level of service by providing customers with comprehensive automated highly efficient logistics solutions, including storage, distribution and crossdocking of goods. For 3PL providers, automation and robotization can eliminate the difficult working conditions of employees and provide personnel with a solution to tasks with high added value. Regardless of the size and complexity of the logistics ecosystem, intelligent robotic systems can safely perform the required operations for processing material flows, maintaining a consistently high level of quality. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 138–146, 2022. https://doi.org/10.1007/978-3-030-94873-3_17
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Simultaneously with the introduction of intelligent technologies, automation and robotization of processes along the supply chain, traditional material and economic relationships are changing and new supply chains are being built. The trade war between China and the United States, the COVID-19 pandemic, Brexit and other factors of uncertainty in the external environment revealed the strengths and weaknesses of global supply chains. Disruptions in global supply chains due to the pandemic led to increased investments in processes automation, the use of intelligent digital technologies to optimize business processes to increase productivity, reduce costs and increase competitiveness. The total volume of deliveries of robotic products to the world market is growing rapidly. The service robot sector is expected to grow at a much faster rate than industrial robots. According to the report of the International Federation of Robotics [9], sales of logistics robots are growing at the fastest pace, outpacing robotics for the hospitality sector and robotic systems of military purposes. Robots allow focused manufacturing companies to build resilience into their supply chains. The use and development of intelligent technologies is crucial for the competitiveness and technological independence of integrated supply chains. The formulation and implementation of strategies for the development of intelligent supply chains will ensure competitiveness and will allow focusing on unique niches and use the technological potential of automated systems to improve strengths. An important strategic aspect of supply chain management became quality assurance and security in order to minimize risks and matching with compliance.
2 Methodology The approach of a multiple case study was chosen in order to provide a deep understanding of the impact of the use of digital strategies on increasing the stability and flexibility of supply chains. The research process is based on the concept of sustainable development and the concept of ESG (Environmental, Social, and Governance). The research is based on the following concepts: lean manufacturing, rapid response, robotics as a service (RaaS). The research is based on the theory of convergence of technologies. To assess trends in the development of supply chains and identify factors affecting the formation of supply chains, a mixed methodological approach based on a review of the literature and a review of expert opinions was applied. This made it possible to assess probabilistic events, risks and uncertainties of processes, as well as to develop recommendations for improving the reliability of supply chains. In addition, the study allowed to study the processes of changing supply chains depending on the strategic choice of technological solutions.
3 Results A number of researchers [3, 4] identified risks for the functioning of global supply chains associated with the development of new intelligent robotic technologies. As a vivid example of one of these technologies, we can cite 3D printing, a type of modern production that allows an employee who manages one unit of equipment to perform all production processes, localizing production in one place [5]. With the increasing
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availability of 3D printing technologies, the expansion of the use of robotic systems, the automation of supply chain processes, the replacement of the transportation of goods with the transfer of information, the transformation of global supply networks is possible [10]. In modern conditions, the probability of hidden risks is growing rapidly, so it is important to develop a risk management strategy in the supply chain and, perhaps, it is advisable to entrust risk management to a fourth party in order to implement a strategy of concentration and sustainability, optimizing processes in the supply chain with the help of modern automation technologies and on the basis of cooperation with supply chain partners. In the modern supply chain, along with material flows, large volumes of intangible digital assets are circulating, which are becoming increasingly large and significant, and, accordingly, the need to ensure their confidentiality is growing. However, digital privacy received significantly less attention from researchers in the field of operations and supply chain management than quality, cost, flexibility, delivery and innovation, which can ultimately harm digital privacy [11]. Digital privacy is one of the factors of efficiency, an aspect of productivity, due to the increase in the cost of digital assets compared to the cost of tangible assets. One of the strategically important aspects of risk management in the supply chain is the identification and reduction of the risk of fraud based on an in-depth analysis of the supplier ecosystem and the disclosure of obvious signs of fraud in the supply chain. A separate area is the fight against cyber fraud, which requires the maximum use of data and risk monitoring tools to better prevent fraud. There are high risks of information leakage in the logistics network, i.e. unauthorized exchange of information between supply chain participants [14]. In order to minimize this type of risk, it is necessary to take into account the role of trust based on honesty and abilities, and the possibility of two types of information leaks: opportunistic and unintentional, as well as side effects that manifest themselves along the supply chain. Risk management in the supply chain is closely related to the problem of sustainability. Supply chains are regularly exposed to unforeseen events that can lead to supply disruptions, which entails serious consequences for the focus companies of the supply chains and all network participants. Thus, the ability of supply chains to withstand uncertainty and recover, i.e. sustainability, is vital for their reliable functioning. Studies show that the complexity of the supply network is crucial for determining its sustainability, but there are problems in determining the exact nature of the relationship between the complexity of the supply network and sustainability. A number of researchers [15] identified the influence of three aspects of the complexity of the supply network—the complexity of supplies (nodes in the network), logistical complexity (arcs in the network) and the complexity of the product moving through the network-on the ability of the company to withstand failures and recover from them. The results show that the relationship between the complexity of the supply chain and sustainability is multifaceted. Some aspects of the complexity of the supply chain increase the impact of failures, while others increase the recovery from failures. In order to implement the concept of sustainable development, the following methodology is proposed to improve the reliability of supply chains:
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– conduct a systematic assessment of the supply chain and identify bottlenecks in the field of sustainable development; – make a reasonable choice of a risk management strategy; – develop business case studies to improve the sustainability of the supply chain; – to align key performance indicators and risk reduction methods; – increase the transparency of the supply chain for more effective business continuity planning; – on the basis of increasing the transparency of the supply chain, develop and implement flexible business processes that ensure the implementation of the concept of rapid response. Currently, thousands of organizations in the world are engaged in robotics, artificial intelligence, machine vision and visualization, motion and motor control, as well as related business process automation technologies. The leading manufacturers of robotic systems are ATI Industrial Automation, FANUC Corporation, Harmonic Drive, KUKA Robotics AG, SCHUNK, Boston Dynamics, ABB Ltd, Amazon Robotics, Quicktron, Grey Orange, Brain Corp, BlueBotics, Teradyne, Universal Robots, Seegrid, Balyo, ANYbotics, Yaskawa Electric Corporation, Comau, Stäubli and others. The interests of manufacturers of modern intelligent technologies are represented by a number of organizations, for example, the International Federation of Robotics (IFR), the Association for Advanced Automation (A3), the largest trade association in North America, representing more than 1,100 organizations, including affiliated associations: the Robotic Industries Association (RIA), AIA - The Association for Advanced Vision + Imaging and Motion Control & Motor Association (MCMA). The following are the most promising trends in the field of robotic systems for ensuring flexible production and sustainable supply chains. The development of 3D vision systems and software algorithms expands the range of tasks that robots are able to perform autonomously [9], robots are increasingly able to assess the environment and respond adequately to it due to the development of semantic intelligence. Robotic systems provide flexible production [8]. In modern supply chains, individual orders are circulating, produced in small batches in a short time. In order to quickly respond to new orders, supply chain participants automate business processes and restructure production and logistics, moving from linear production and logistics lines to a series of standard production cells that can be quickly reconfigured to perform the task. Robotic technologies transform production based on the automation of production lines, connecting equipment – including robots – with the software of computeraided design and resource planning systems of the enterprise into a single network. The production process can be automatically initiated when an order is received or when the design of a new product is completed. In a non-linear production scheme, a set of small production cells can be quickly reconfigured to perform parts of the production process. Autonomous mobile robots are able to move materials and parts between cells and can activate equipment in cells, as well as perform some tasks independently. Using 3D vision software, mobile robots in the future will be able to quickly perform quality control of parts, minimizing waste and reducing costs.
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To perform logistics operations, autonomous mobile robots and other equipment, for example, autonomous forklifts, transport goods, and assembly robots select and pack goods from conveyors. Logistics robots are divided into: – – – –
Autonomous Guided Vehicles (AGVs) in manufacturing environments; Autonomous Guided Vehicles (AGVs) in non-manufacturing environments (indoors); robots for Cargo handling; logistics robots for working in open areas outside the premises - outdoor logistics.
The combination of new functionality and lower configuration costs allows the introduction of robotic systems in the supply chains of products of large manufacturers of various industries, for example, food. However, small and medium-sized manufacturers, which form the basis in a number of supply chains, often experience problems with the introduction of automated processes, they need robotics that is easily configured, programmed and deployed. Collaborative robots will be able to meet the demand for easy-to-use, scalable and flexible technologies. Colloborative robots are projected to occupy up to 29% of the industrial robot market [1] over the next decade. Entire ecosystems are evolving around collaborative robots to provide pluggable and reproducible peripherals-grippers, sensors, and software. Analysts expect to see a blurring of the differences between conventional industrial robots and collaborative robots [2]. The current state of technologies development led to the emergence of new advantages and opportunities for the introduction of robotization of processes: – modern robots are easy to program and reprogram, thanks to intuitive interfaces and demonstrations; – the new generation of collaborative robots can be easily integrated into existing production processes; – the possibility of renting a robot, eliminates the need for initial capital expenditures, and accordingly increases the availability of new technologies. Robots provide stable supply chains, for example, the ability to quickly reprogram a collaborative robot, allows it to be used to ensure production during peak orders, when it is difficult to increase the staff. The introduction of robots makes local production a more economically viable option, providing manufacturers with greater flexibility in building supply chains in conditions of uncertainty. Robots contribute to reducing the total carbon footprint of production, minimizing material wastes and allowing manufacturers to optimize the space used, and accordingly, the energy costs associated with lighting and heating. Robotic systems contribute to the optimization of supply chains, which leads to a reduction in the space used. Robotics is becoming more and more energy-efficient, because it is made of lightweight composite materials and uses energy-efficient motors and gears with reduced friction losses, in addition, it has energy-saving standby modes, as well as energy-efficient control and drive technologies. Robots have a long service life, which can be extended, after which two options are possible-modernization and recycling.
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The volume of material flow is growing in supply chains due to the large number of online purchases, and therefore, the problems of order processing are becoming more and more significant. E-commerce companies, retailers, courier companies, as well as logistics providers are investing heavily in automation systems and robotics. According to ABI Research [6], the supply of mobile robots-Automated Mobile Robot (AMR) will outstrip the supply of traditional industrial robots and collaborative robots (AGV) by millions worldwide over the next decade. Of the 8 million robots expected to be delivered in 2030, almost 6 million will be mobile robots. This is due to the reduced costs of AMRs navigation and the requirements for ensuring the flexibility of the robotic fleet. Revenue from all mobile robotics is expected to exceed 224 billion dollars by 2030, compared to 39 billion dollars for industrial and collaborative systems. The application of mobile robotics can cause a long-term transformative effect in all supply chains as the use of intelligent technologies expands throughout the global economy. The category of mobile robots includes all types of robots with mobility regardless of the method of movement or use: AMR, robotic forklifts/tugs, two-legged and fourlegged robots, cleaning robots, delivery robots and other robots whose market potential was not fully used. For example, about a million forklifts are sold annually in the world, of which less than 1% is automated [2]. All major manufacturers, such as Toyota, KION Group, Mitsubishi, Hyster-Yale, have their own robotics projects and cooperate with robotics suppliers. ABI Research predicts that the supply of automated forklifts will grow from about 1,000 in 2020 to 156,000 in 2030. The use of autonomous unmanned aerial vehicles is increasing in the production and warehouse links of the supply chain, for example, drones developed by Verity Studios AG carry out inventory, determine the occupancy of pallets, scan barcodes and perform a number of logistics operations for inventory management by IKEA and 3PL provider DSV Panalpina. For quality control purposes, when performing a number of operations, for example, cross-docking or production process, pallets delivered to an incoming intermediate zone must be moved throughout the facility to various control or intermediate quality zones. The pallets are placed in intermediate strips and must be scanned and delivered to the appropriate area. Robotic systems equipped with a barcode reader can scan a pallet and determine the appropriate destination by integrating interaction with a WMS or ERP system. According to Gartner [13], the leaders among suppliers of supply chain management software are Blue Yonder, Kinaxis, OMP, E2open, Logility, and SAP, Oracle, Dessaulte Systemes, Demande Solutions, and Infor are close to the leaders in the quandrant. Digital optimization platforms developed by leading organizations use artificial intelligence and machine learning, which allows them to manage supply chains in real time. Blue Yonder company that provides supply chain automation services to BP, Coca-Cola, Unilever, Procter & Gamble and Walmart sold part of the business to Panasonic, which, through the acquisition of a 20% stake, [12] expanded its product offerings to include consulting, services and software for supply chains. The Blue Yonder digital platform is synchronized with the Panasonic information system, providing optimization of business processes. (Robotic process automation – RPA) provides digitalization of supply chains, including hyperautomatization, allows to continuously optimize business processes based on cognitive computing and artificial intelligence.
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4 Discussion According to research by Gartner [7], in order to improve the stability and flexibility of the global supply chain focus organizations of supply chains use the following policy instruments: cooperation with key customers and suppliers (77%); the diversification of supplies (multisourcing) (63%); diversification of products and/or geographic markets (60%); the redesign of products and the elimination of difficulty (60%); segmentation of the supply chain (55%). As can be seen from the results of the study, strategic cooperation with the main customers and main suppliers in the supply chain has a decisive role and the largest share in terms of the degree of use, since the quality of relationships is at the heart of all business processes. At the same time, multisourcing in conditions of instability and uncertainty is a strategically important tool for increasing stability and flexibility. A smaller share fell on the strategic segmentation of the supply chain, but more than half of the studied supply chains use this tool. At the same time, the Gartner study [7] identified the main obstacles faced by focus organizations seeking to increase the stability and flexibility of supply chains: the complexity of the product and portfolio (57%); the balance of trade-offs between economic efficiency and sustainability (54%); organizational fragmentation and various functional metrics (51%); the cost of investing in sustainability measures (39%); lack of technology to ensure visibility and coordination (36%). Thus, one of the five most significant problems is that a number of supply chains do not use modern intelligent robotic systems and technologies, which leads to a decrease in their stability and flexibility.
5 Conclusion Currently, due to a number of trends in the global economy, the process of deglobalization of supply chains is taking place. When making a strategic decision to “buy globally or locally”, a choice is increasingly made in favor of local supplies due to the fact that a new intelligent generation of equipment and technologies allows building an optimal local logistics network. This is especially active in countries with a high density of robots in the manufacturing industry, for example, Singapore, Japan, South Korea, the United States, Switzerland, Germany, Sweden and others. China is the main source of growth in the market for new technologies in the next decade, it is expected that in 2022 it will account for 30% of the global robotics market. Increasing requirements for the flexibility and stability of supply chains leads to an increase in demand for robotics, the average annual growth rate of expenditures on robotic systems and drones is 19.6%. The global robotics market is developing, as evidenced by the outpacing growth of the ROBO Global® Robotics and Automation Index ETF (ROBO) and ROBO Global® Artificial Intelligence Index ETF (THNQ), launched in 2013 and in 2018, respectively. The growth of the robotics and automation market is driven by the development and convergence of artificial intelligence technologies, robotic systems, machine vision and other high technologies, which are now converging and reaching a high level of efficiency in relation to their cost, which makes it possible to develop and apply all new
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types of applications. A number of other factors, including labor problems and mass customization, also play a role, but they are secondary to the convergent technological trend that stimulates growth and development. Thus, the creation of a stable and flexible digital supply chain based on innovative strategic data processing tools of integrated systems, including Internet of Things (IoT) signals, transactional, operational and large data sources will increase the efficiency of the decision-making process, reduce risks and ensure the optimization of business processes.
References 1. ABI Research: The collaborative robot market will exceed US$11 billion by 2030, representing 29% of the total industrial robot market (2019). https://www.abiresearch.com/press/ collaborative-robot-market-will-exceed-us11-billion-2030-representing-29-total-industrialrobot-market/#:~:text=A%20new%20analysis%20from%20global,US$711%20million% 20in%202019, Accessed 30 Mar 2021 2. Anandan, T.M.: Robot industry trends and potential for the future (2021). https://www.contro leng.com/articles/robot-industry-trends-and-potential-for-the-future/, Accessed 18 Apr 2021 3. Baldwin, R.: The globotics Upheaval: Globalization, Robotics and the Future of Work. Weidenfeld & Nicolson, London (2019) 4. Baldwin, R., Kawai, M., Wignaraja, G.: A world trade organization for the 21st century: the Asian Perspective (2014). https://www.adb.org/sites/default/files/publication/159306/adbiwto-21st-centuryasian-perspective.pdf, Accessed 28 Apr 2021 5. Brynjolfsson, E., McAfee, A.: The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies. W.W. Norton & Company, New York (2014) 6. Business Wire: Robotics industry set for seismic change as growth shifts from fixed automation to mobile systems in enterprise (2019). https://www.businesswire.com/news/home/201 91210005104/en/Robotics-Industry-Set-for-Seismic-Change-as-Growth-Shifts-from-FixedAutomation-to-Mobile-Systems-in-Enterprise, Accessed 30 Mar 2021 7. Gartner Future of Supply Chain Survey: Trends in global supply chain management (2020). https://www.gartner.com/en/supply-chain/insights/global-supply-chain-man agement, Accessed 18 Mar 2021 8. International Federation of Robotics: World robotics report 2020 (2020). https://ifr. org/ifr-press-releases/news/record-2.7-million-robots-work-in-factories-around-the-globe, Accessed 20 Apr 2021 9. International Federation of Robotics: Top 5 robot trends 2021 (2021). https://ifr.org/post/top5-robot-trends-2021, Accessed 25 Apr 2021 10. Manyika, J., et al.: Jobs lost, jobs gained: workforce transitions in a time of automation (2017). https://www.mckinsey.com/featured-insights/future-of-work/jobs-lost-jobs-gai ned-what-the-future-of-work-will-mean-for-jobs-skills-and-wages, Accessed 28 Apr 2021 11. Massimino, B., Gray, J.V., Lan, Y.: On the inattention to digital confidentiality in operations and supply chain research. Prod. Oper. Manag. 27(8), 1492–1515 (2018) 12. Patchett, L.: Panasonic expands into supply chain software (2020). https://www.cips. org/supply-management/news/2020/may/panasonic-expands-into-supply-chain-software/, Accessed 20 Feb 2021 13. Payne, T., Lund, P.O., Salley, A.: Magic quadrant for supply chain planning solutions (2021). https://www.gartner.com/doc/reprints?id=1-25FVF5FJ&ct=210312&st=sb, Accessed 18 Mar 2021
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14. Ried, L., Eckerd, S., Kaufmann, L., Carter, C.: Spillover effects of information leakages in buyer–supplier–supplier triads. J. Oper. Manag. 67, 280–306 (2021) 15. Wiedmer, R., Rogers, Z.S., Polyviou, M., Mena, C., Chae, S.: The dark and bright sides of complexity: a dual perspective on supply network resilibility. J. Bus. Logist. 42(3), 336–359 (2021)
Smart Department: Technologies of Organizational Processes G. Ya. Soroko(B) and I. Z. Kogotkova State University of Management, Moscow, Russia
Abstract. The purpose of this work is to study the influence of modern automation systems on the technology of organizational processes implemented at the departments of higher educational institutions. The research objectives included: analysis of the existing practice of automation of university activities and its impact on the organizational processes of the chair level; structuring of the organizational processes of department; formation of the components of the chair automation system; formation of an approach to designing the technology of organizational processes of the department in the conditions of such an automation system functioning. The research was carried out on the basis of the methodology of the system approach, cybernetic principles of management and a prescriptive approach to the automation of organizational processes. As a result of the conducted research, the influence of university-level automation systems on the organizational processes of departments was assessed, the structure of the main functional subsystems of the chair activity was formed, the composition of the components of the department-level automation system was determined and an approach to designing the technology of organizational processes of the department in the conditions of a full-functional system of automation of the chair activity was formulated. Keywords: Automation of organizational processes · Department management · Educational technologies · Smart department · Technology of organizational processes
1 Introduction The dynamics of changes in all spheres of human activity in recent years has a tendency to accelerate significantly. This is largely facilitated by achievements in the field of digitalization and the expansion of its application areas [5]. At the same time, new volumes of knowledge are formed that need to be recorded, stored, updated and passed on to the next generations. A significant part of these functions is performed by the educational system, which itself is changing more and more dynamically. These changes are also largely determined by the emergence of digital technologies that provide new opportunities for working with information. But in the conditions of constant changes, the complexity and uncertainty of the processes associated with the educational activities of higher educational institutions are increasing. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 147–153, 2022. https://doi.org/10.1007/978-3-030-94873-3_18
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Changes have become a characteristic feature of the activities of university departments. Teachers of the department, in addition to educational functions, also perform some administrative tasks related to the implementation of an ever-expanding range of the chair work. The university department is increasingly becoming a bureaucratic structure, and is losing its main purpose – knowledge centers that ensure the accumulation, structuring, storage and transfer of knowledge in a certain subject area to students. As a result of the existing imbalances, the time of teachers for their main pedagogical and scientific activities is reduced. The current situation has to be taken for granted, and we try to reduce the losses and costs associated with the performance of administrative functions by teachers. One of the means of increasing the efficiency of administrative and managerial work is its proper organization, development and implementation of effective technologies of organizational processes, due to which their uncertainty can be significantly reduced. In this contribution, the organizational process is understood as the whole set of processes occurring in an organization considered as an organizational system. And under the technology of organizational processes or organizational technology, we understand ordered organizational processes implemented in accordance with the established regulations. The technology of organizational processes is influenced by the information technologies used in this process. But, no matter what development level digital information technologies have reached, organizational processes are directly related to human intelligence, and, therefore, the human factor is decisive in these processes. The effectiveness of the use of information technologies is ultimately determined by a person. Therefore, the development and implementation of the most advanced information technologies should be accompanied by the creation of appropriate organizational technologies. In this work, we proposed the structure of the system of complex automation of the university chair activities [6]. On the basis of this structure, a conceptual approach to the design, use and development of the technology of organizational processes of the department is formed, in the conditions of an integrated automated information system of the chair level, which should increase the efficiency and quality of the department’s activities.
2 Methodology The conducted research is based on the methodology of a systematic approach to the analysis and synthesis of organizational management systems, which assumes their decomposition into functional subsystems in accordance with the directions of the main activity. In turn, functional subsystems are represented by a set of complexes of tasks, each of which is put in accordance with a certain organizational process, the result of which is the creation of a certain organizational document. The requirement of documenting the process is very important, since it provides the “materialization” of the organizational activity, which is based on virtual intellectual processes of human consciousness. Interrelated tasks form complexes of tasks that determine the order (sequence, logic) of their solution. If the organization regulates the solution time, the performer, input and output information for each task of the complex, then we can say that there is a certain technology of organizational processes or organizational technology in the
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institution. In turn, each of the tasks ends with the formation of a document containing information about certain aspects of the organization’s activities, it is associated with the transformation of the initial input information into output. The order of information transformation in the course of solving the problem is considered as a certain information technology. The level of information technologies used in the organization for solving tasks significantly affects the effectiveness of organizational processes, since the time and quality of solving organizational problems depend on it. The methodological approach used for the decomposition of organizational processes, largely formed by the developers of organizational management process automation systems, corresponds to the maximum extent to the goals of this study that is aimed at improving organizational processes based on the introduction of modern information process automation systems. An important advantage of this approach to the decomposition of organizational processes is that it can be used to represent both repeating functional processes of the organization and unique target processes, which are currently commonly called project processes [3, 9, 10]. The provisions of functional and project management are also the methodological basis of this study. The level of requirements to the structure and functions of the department’s organizational process management system should be determined in accordance with the principle of necessary diversity. Therefore, the composition and functionality of the components of the chair activity management automation system should correspond to the structure of the activity directions.
3 Results The use of automated training systems or automated systems that reproduce the processes corresponding to the future professional activity of students is typical for the chair level. Currently, departments have very limited access to university automation systems and in most cases use only text editors and spreadsheets to solve their information tasks. In the conditions of constant complication of the departments’ activities, the level of chaoticness of the organizational processes inherent in it is constantly increasing. It also negatively affects the performance by the department of its main purpose. In addition, the ill-conceived automation of individual processes at the university level leads to additional complexity and a decrease in the efficiency of organizational processes. In the current conditions, there was a need to automate information processes at the chair level in order to optimize the organizational processes associated with them. It is important to understand that, although the technology of implementing information processes largely determines the organizational technology, the organizational aspect is more important and significant, since it determines the semantic content of human activity. Computer information technologies, despite all their importance and the degree of influence on organizational processes, remain providing, since the semantic processing of information contained in documents is carried out by a person. Currently, many parameters of the organizational processes of the chair level are determined by the organizational processes of the faculty and university levels, which
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in turn are determined by the quality of the university automation system. All the shortcomings of this system are manifested in the technology of organizational processes at all other levels. Despite the great success of automation of university activities in recent years, there are still significant reserves for improving the efficiency of this activity. And one of its main sources is the full-featured automation of information processes at the chair level. The creation of an integrated automation system at this level requires a study of organizational and information processes currently inherent in the department. Their content is determined by the main activities of the chair in modern conditions: educational, methodological, scientific, educational, career guidance, marketing, administrative. According to the principle of necessary diversity, in order to ensure effective management of the chair activities, an appropriate management subsystem should be created in the department’s management system. Currently, this principle is implemented by appointing a teacher responsible for each of the activity directions. Within the framework of each of the activities of the department, many sets of tasks are solved, the performers of which are the chair teachers. The rating of the teacher depends on the degree of his participation in solving these tasks and the assessment of his activity. Currently, there is considerable uncertainty in the content, timing, performers and other parameters of many organizational tasks. That is, the organizational processes at the chair level are largely chaotic in their nature. They require serious work on additional structuring and regulation, which will allow us to form the required procedure and technology for their implementation. The formation and support of the technology of the chair organizational processes should be provided by means of the chair automation system. Only in this case it will be possible to control and promptly make the necessary changes to the existing technology of organizational processes, determined by any external and internal factors. Research has shown that the tasks that make up the content of the organizational processes of the department, according to the uncertainty degree of their solution in a certain time interval, can be divided into several categories: – Deterministic tasks require a mandatory and proven solution. – Situational tasks require solutions only in case of certain situations. But the composition, content and order of solving these tasks are determined in advance. – Spontaneous tasks arise suddenly and do not have ready-made solution scenarios. One of the serious organizational problems in the department activities today is that the complexity of organizational processes has reached a level where very often even deterministic tasks are perceived by the performer as spontaneous, since for some reason he missed their inclusion in the tasks of the current period. This happens even more often with situational tasks. The solution to this problem is possible only with the help of an automation system, the functionality of which includes support for flexible management of organizational processes. It is very important to fix the technology of solving spontaneously arising problems so that they can be transferred to the category of situational and use this experience when similar problems arise in the future.
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Despite the significant expansion of the functional tasks of the chair teachers, the main activity is educational work. It is also an organizational process. Therefore, the development of an effective technology of organizational processes for the implementation of educational activities is extremely important to ensure the effective work of the department as a whole. In essence, we are talking about the development of the technology of organizational processes for the study of individual disciplines, practical training and conducting the final state certification. Moreover, these processes should be integrated into the chair technology of organizational processes. The analysis of the content of the main directions of the chair activity allowed us to form a conceptual model that reflects the structure of the components of the automation system of the chair level [6, 9]. It should be noted that the ongoing research in this direction has allowed us to formulate a number of provisions that complement the content of a number of components of the proposed conceptual model. The application of the chair automation system is aimed at a comprehensive solution of many organizational and information problems of the modern department, which were discussed here. One of them is the problem of creating an effective technology for implementing various organizational processes. The proposed conceptual model of the chair automation system contains subsystems focused on supporting processes of both functional and project nature, as well as a subsystem of flexible operational management focused on working together with organizational processes of any nature. But it is very important to understand and take into account the fact that the practical implementation of the cathedral automation system will further increase the number of complexes of tasks solved by the department. Here, we consider the need to include another “information” direction in the department’s activities and, consequently, another subsystem – information one. At the university level, this direction and the corresponding directions have existed for a long time, and, as a rule, are supervised by the vice-rector responsible for this. As we have already noted, the existing automation systems in universities practically did not affect the chair activity, and if they did, it is again mainly determined by the faculty tasks and the university as a whole. If the task of full-fledged automation is set, then the departments will have to seriously develop the information direction of their activity, since only in this case it will be able to get access to effective modern computer technologies. The administration and teachers of the department should become real customers of the chair-level automation systems, since they are the end users of these systems. At the same time, the technologies of organizational processes associated with the operation of the chair automation system should be formed and improved in parallel with the system implementation.
4 Discussion For a long time, the chair system of the university education, which has been developing for centuries, had well-established technologies of organizational processes. The bureaucratic component in its activities was minimal. The main content of the information activity of teachers was the study of the subject area in which the department worked and the transfer of this knowledge to students. All other issues were resolved at the university and faculty level. Therefore, there are very few works devoted to the effective organization and automation of chair activities [8].
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The organizational processes implemented at the departments were well regulated, all organizational procedures were clearly debugged and were not of serious interest for research. For the same reason, there was no need to create specialized automated workplaces for teachers. The issues of automation of the chair activity mainly related to the creation and implementation of training systems and knowledge control systems. The works devoted to the automation of university activities in the Russian Federation mainly relate to the organizational processes of the university and faculty levels and topics that relate to the issues of the so-called “e-learning” [1, 2, 4, 7]. There are very few studies aimed at solving organizational and information problems of modern departments. In our opinion, this is due to the fact that the creation of a fullfledged automation system based on the proposed or similar conceptual model requires serious financial investments. And the financial systems of educational institutions are organized in such a way that the departments do not have their own budget, although they are the main source of income of the university. As a result, the department cannot act as a customer of the automation system it needs, but is forced to use the capabilities of systems created to solve tasks that are not closely related to the department’s activities. Therefore, there are practically no full-fledged integrated automation systems for chair activities.
5 Conclusion The constant complication of the chair activity associated with the expansion of its functions and the complexity of document management, the need to use effective distance learning technologies require the creation of a modern digital environment of the department level, which would provide support for all information processes of the chair. The automation systems of the university and faculty levels operating in universities are not able to provide solutions to these problems. To implement the project of creating a digital environment of the department that provides an effective solution to its information tasks, it is advisable to include an information direction in the activities of the department, whose task would be to identify problems related to the implementation of organizational and information processes and formulate proposals for their solution for submission to the management of faculties and the university. The development and implementation of the digital environment of the department should be based on the creation of such a technology of organizational processes of the department, which could be aimed at minimizing the uncertainties of these processes and supported by the chair automation system. It is advisable to include a subsystem in the conceptual model of the chair automation system that provides the possibility of describing and presenting the real organizational processes of the department, monitoring their implementation, and, if necessary, their operational adjustment. At the same time, we are talking about organizational processes that ensure the implementation of all areas of the department’s activities, including the educational process.
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References 1. Aleksandrov, A.A. (ed.): International Forum “Digital Technologies in Engineering Education: New Trends and Implementation Experience”, 28–29 Nov 2019, Moscow (2019). http://itee.bmstu.ru/ru/%d1%81%d0%b1%d0%be%d1%80%d0%bd%d0%b8%d0% ba-%d1%82%d1%80%d1%83%d0%b4%d0%be%d0%b2/. Accessed 16 Apr 2021 2. Alekseev, M.Yu., Alekseeva, O.S., Grigorenko, M.M., Kirevnina, E.I. (eds.): Proceedings of the XXXI Conference “Modern Information Technologies in Education”, 2–3 July 2020, Troitsk, Moscow (2020). https://ito2020.bytic.ru/. Accessed 16 Apr 2021 3. Brikoshina, I.S., Birukov, A.P., Geokchakyan, A.G.: Smart transformation of the project management system and processes as a factor in increasing the efficiency and competitiveness of the project. In: Popkova, E.G., Sergi, B.S. (eds.) ISC 2020. LNNS, vol. 155, pp. 1614–1622. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-59126-7_176 4. Chistova, D.V. (ed.): Proceedings of the XX International Scientific and Practical Conference “New information Technologies in Education”, 4–5 Feb 2020, Moscow (2020). https://edu conf.1c.ru/conf2020/thesis/. Accessed 16 Apr 2021 5. Khalimon, E., Guseva, M., Kogotkova, I., Brikoshina, I.: Digitalization of the Russian economy: first results. In: Mantulenko, V. (ed.) Proceedings of the International Scientific Conference GCPMED 2018 - Global Challenges and Prospects of the Modern Economic Development. The European Proceedings of Social and Behavioural Sciences, vol. 57, pp. 199–213. European Publishing, London (2019) 6. Kogotkova, I.Z., Soroko, G.Y., Guseva, M.N.: Smart department: designing digital applications for smart organizations. In: Popkova, E.G., Ostrovskaya, V.N., Bogoviz, A.V. (eds.) Socio-economic Systems: Paradigms for the Future. SSDC, vol. 314, pp. 1483–1493. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-56433-9_154 7. Petrova, V.V., Luppian, M.N.: SMART model of the university department. In: Proceedings of the All-Russian Scientific and Methodological Online Conference Problems and Technologies of Smart Education in Economics Taxation and Finance, pp. 9–11. Saint Petersburg State Technological University of Plant Polymers, Saint Petersburg (2014) 8. Shadrin, D.B.: The system of automation of educational processes of the department. Discussion 11(29), 156–158 (2012) 9. Titov, S., Kurilov, A., Titova, N., Brikoshina, I.: Integrative assessment framework in blended learning. TEM J. 8(3), 768–774 (2019) 10. Titov, S., Nikulchev, E., Brikoshina, I., Suetin, A.: Client communications and quality satisfaction in project-based company. Qual. Manage. 21(174), 68–71 (2020)
Development of Museum Informatics in Russia and Abroad V. A. Kolobkova(B) and A. A. Romanov State University of Management, Moscow, Russia [email protected]
Abstract. In the era of the global Internet, the global informatization of services and the digitalization of the economy, the tourism and hospitality industry is rapidly changing, so the main purpose of this contribution is to study the development of museum informatics in Russia and abroad. The research objectives are to study the existing experience of using modern information and communication technologies in the museum space, as well as to analyze the positive and negative aspects. Based on the study of the practical experience of such organizations as the Museum Computer Network Association MCN (Museum Computer Network), the Information Network for the National Heritage of Canada (Canadian Heritage Information Network), the Main Computing Center of the Ministry of Culture of the Russian Federation, it is concluded that it is necessary to use information and communication technologies in the museum space to improve the quality of service for services consumers. The problems of the introduction of information and communication technologies in the museum space are identified. Their elimination will help make the world’s cultural heritage accessible to the general population. Keywords: Bibliographic catalog · Electronic computer · Information and communication technologies · Historical and cultural heritage · Museum exhibits · Museum informatics
1 Introduction Today, digital technologies are firmly included in all sectors of the economy of our country. President Putin noted: “We assume that it is necessary to accelerate the implementation of the entire “digital agenda” and coordinate efforts to develop the Internet economy, create common rules for digital trade, equal standards for the exchange and protection of information” [14, p. 2]. In recent years, one of the priorities of the state cultural policy has been the application of digital communication technologies. The solution of this task contributes to the development of all types of cultural institutions, including museums, responsible for the preservation, study and popularization of cultural heritage [3]. The authors consider the problems of using information and communication technologies in the service sector, in particular, in the museum space. The novelty of the view is that digital technologies open up the widest prospects for broad segments of the population to © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 154–162, 2022. https://doi.org/10.1007/978-3-030-94873-3_19
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become visitors to museums, to get acquainted with unique exhibits in the virtual space. Interactive expositions play an increasingly important role, the development and implementation of which allow visitors to move away from passive-contemplative forms of obtaining information, from the traditional acquaintance with exhibits through the glass of museum showcases. In our opinion, the introduction of digital technologies in this industry contributes to the creation of a global information network of cultural objects and museum exhibits on a global scale.
2 Methodology The authors used classical methods, such as analysis and synthesis, the method of generalization, analogy, abstraction, the philosophical method of ascending from the abstract to the concrete [4], analyzed data from various scientific and Internet resources. The analyzed concepts include information and communication technologies, historical and cultural heritage, museum informatics, museum exhibits, electronic computer were used. The composition of this work is based on the principles of a systematic approach. The contribution analyzes the state of the world and Russian experience in the introduction of information and communication technologies in the museum space. The processes of transformation of the exposition and exhibition space with the help of information technologies since the second half of the twentieth century are studied. The possibilities of introducing digital technologies at the present time are identified.
3 Results The topic of the digital economy is currently being actively studied by both Russian and foreign scientists. They all agree on one thing: the digitalization of all aspects of society’s life is one of the main trends in the global economy [7]. The beginning of the XXI century was marked by the rapid development of information and communication technologies, which have firmly entered all spheres of the economy, changing the daily lives of millions of people. The tourism industry, where a variety of information technologies turned out to be in demand, did not stand aside either. One of the most important tourist resources is the historical and cultural heritage, a significant part of which is represented in museums. Their activity is conditioned by the society’s request to preserve the natural, cultural, historical and social heritage, to familiarize contemporaries with it and pass it on to subsequent generations. Thus, museums are taking an increasingly active part in cultural and social life. The function of museums is multifaceted, it consists in the selection of exhibits and their systematization, the formation of collections, the creation of conditions for their preservation, demonstration for a wide audience. Attention is also drawn to the explanation of the expositions which contributes to the education of the audience. Museums often act as guides to the natural, historical, architectural and cultural attractions of the places where they are located. There are several important stages in the history of museum informatics as a specific branch [6]. Its ancestor can be considered a scientist from the United States, Vance, who in 1963, in the form of an experiment, compiled a catalog of museum exhibits using a computer from the University of Massachusetts for this purpose. This work was directly
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related to the activities of the Documentation Committee of the International Council of Museums CIDOC (International Documentation Committee), whose members tried to develop national and international standards for museum documentation. At the same time, special attention was paid to the unified approach to the description of the exhibits. It should be noted that at that time the United States was a leader in the field of information technology. So, in 1888, the inventor Hollerith, the founder of IBM, developed and put into production a tabulator – an electromechanical counting device for reading and processing data printed on special cards – punched cards. In 1890, the tabulator was used when conducting a population census in the country. And in November 1945, at the University of Pennsylvania, an ENIAC programmable computer was created by order of the military department. Vance put the data about the exhibits on punched cards and loaded them into a computer, where they were processed and classified according to the specified parameters, in accordance with a specially developed and embedded program. The next stage was printing of the processed data. This is how the first systematic list of museum exhibits appeared, created using a computer, then it was transformed into a catalog. The success of the American specialist attracted the attention of scientists in various museums around the world. Attention was paid to the speed of processing significant amounts of information, the ability to classify and quickly search for data about exhibits according to specified parameters. However, at that time, computer technology had not yet received proper development, computers were very cumbersome and expensive. In 1967, an international meeting of museum specialists was held in Barcelona on the initiative of UNESCO, specialists advocated the formation of national databases of museum exhibits [2]. The topic of discussion was possible approaches to the use of computer technology in working with exhibits. If in the USA the idea of forming a system based on local databases was put forward, then in France, on the contrary, a centralized system consisting of a powerful computer was of interest, in which a common database was embedded, and in different parts of the country there were terminals connected to it. In the USA, in 1967, the national Association of MCN (Museum Computer Network) was created, which united the museums of the country that began to use computer technology [11]. In France, the coordinator in this case was the Database on National Heritage, organized on the initiative of the Ministry of Culture. In the mid-1960s, the introduction of computer technology began in US museums. The leader was the research and educational center - the Smithsonian Institution, which includes about 20 museums, as well as more than 150 museums in different states branches of the institute. Among the most famous museums of the institute are: the Museum of Arts and Industry, the National Museum of American History, the National Museum of African Art, the National Museum of Natural History, the National Museum of the American Indian, the National Portrait Gallery, etc. The collections of museums are the most extensive in the world and number more than 154 million exhibits. Great Britain and Canada have shown interest in museum informatics. In the UK, since 1977, the work in this direction has been coordinated by the Museum Documentation Association (MDA), in Canada, the Canadian Heritage Information Network, established in 1982, has become the leading center for the computerization of museums. Educational institutions also did not stay away from the rapidly developing industry. Having realized the economic effect of museum informatics, US universities in the early 1990s have
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started to offer projects and services in this area widely. Since 2000, cultural informatics has been taught as an educational discipline at the School of Library and Information Sciences of the Pratt Institute in New York. In the Soviet Union, they thought about information technologies in museums much later, in the second half of the 1970s, after learning about the active development of museum informatics abroad [9]. In general, this delay can be explained by the lag of our state from the West in the field of electronics. The paradox was that in a country that was proud of its education system, a high level of fundamental and applied science, thousands of highly qualified scientists and engineers, there was a gap between science and production. Many achievements of Soviet scientists in the field of electronics did not receive practical application in everyday life, the “defense industry” was considered as a priority. Meanwhile, the storage and accounting of these museum exhibits, historical and cultural objects were carried out in the form of typewritten and handwritten texts, photographs, drawings. Paper media, as a rule, are short-lived and occupy a significant amount of space, they are often dispersed in archives, repositories and libraries, which made it difficult for specialists to access them, gave rise to many problems related to storage, systematization, which was carried out manually, and finding the necessary documents. There was also no single all-union database of cultural values, museum exhibits and monuments. The documents were dispersed between different owners, representing a variety of information arrays. The information in them often contained ambiguous signs, which made it difficult to work with them. All this actualized the development and use of information technologies in the museum business. Leningrad became the center of the development of museum informatics, since 1975 in the Hermitage, and since 1978 in the State Russian Museum, activities have been launched to create automated databases of exhibits. An important role in this new case was played by the director of the Hermitage Piotrovsky, who suggested that one of the enthusiasts in the field of computer technology, the archaeologist Sher, use information technologies to catalog some expositions [12]. Technical support for Sher was provided by specialists of the Leningrad Computing Center of the USSR Academy of Sciences, using the MIR-2 electronic computer. The result of the work appeared in 1977, data on two collections of the Hermitage were processed and systematized: artistic bronze of the antiquity era and petroglyphs of Central Asia. In 1981, the Department of Museum Informatics was created in the Hermitage. The Ministry of Culture of the USSR became interested in the success of Leningrad scientists. Here, as a promising task, we saw the development of an information search system (hereinafter ISS) for immovable objects that have the status of historical and cultural monuments. The basis of the project was the principle of “two-circuit” ISS. The first circuit was a computer in the Computing Center of the USSR Academy of Sciences, where data on about 500 objects of domestic religious architecture were entered. The second circuit was located in the newly built Central House of Artists on Krymsky Val, and was an electromechanical system where micro-maps (microfiche) with photographic data of classification objects were loaded, and a monitor for displaying these photos. Communication between the first and second circuits was carried out by telephone. The main role in the electronic search engine was played by a database of classification objects, which included their names, location, year of creation, names of architects, level of preservation, etc. By the opening of the session of the International Committee
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on Immovable Cultural Heritage, the project has become a reality. The new information retrieval system was successfully demonstrated to the participants of the session. This event showed that Soviet scientists can solve previously unknown problems of museum informatics. In 1981, the Department of Computer Science was established at the State Russian Museum. It was headed by a talented scientist Aseev. The museum did not have its own computer, a terminal was installed here connected to the computer “Cyber”, which was located in the Computing Center of the USSR Academy of Sciences (now the Institute of Informatics and Automation of the Russian Academy of Sciences). Thanks to this cooperation, the creation of an electronic database of the museum’s art canvases was started. Research in the field of information technologies in the first half of the 1980s was conducted in other museums, but due to the weak distribution of computers, the complexity of tasks, the high cost of work, the lack of trained specialists in programming, as well as a weak awareness of the benefits of innovations in the Ministry of Culture and the management of museums, no significant success was achieved. Thus, the period of 1975–1981 in the development of museum informatics should be considered the initial one. We can distinguish several of its features: – at the origins of this new business, there was a small group of enthusiastic scientists who were practically not familiar with the achievements of foreign specialists; – the work was experimental, fragmentary in nature, while there was a shortage both in specialists and in material resources; – for the implementation of the first projects, the computing equipment of third-party scientific organizations was used; – the first results, as well as those of foreign colleagues, were translated into search engines and catalogs of individual expositions; – the successful solution of difficult tasks by Soviet scientists in the creation of museum informatics clearly showed the broad prospect of using computers not only in museums with an extensive exposition fund, but also in the field of culture as a whole. The second development stage and introduction of information technologies in museums begins in the mid-1980s, when officials of the Ministry of Culture realized the prospects of museum informatics and, on their initiative, an automated information system for historical and cultural monuments of the USSR (AIS “Monument”) was developed (1981 – 1985). The most famous museums, which have material and intellectual resources and have support at the government level, have started the development and implementation of automated information systems. So, in 1987, the State Tretyakov Gallery received a set of computer equipment from the Italian manufacturer Olivetti from the Ministry of Culture. In 1988, the State Russian Museum was equipped with the same contract. A PDP (medium-sized computer) and four personal computers were delivered: one AT and three XT (with 512 KB RAM and a 20 MB hard disk) [5]. The head of the information technology department of the Tretyakov Gallery was a professional art critic Pertsev, who formulated the mission of museum informatics: “A computer in a museum and a museum in a computer”. The first major undertaking carried out by specialists of this department was a project to digitize images of ancient icons from the gallery’s collection. Gradually, not only metropolitan museums, but also regional ones began to show interest in computer technology for processing data about exhibits. A new period
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of development of information technologies in museums begins in 1991, which was explained by the collapse of the USSR, the end of the confrontation between East and West, the intensification of international relations, including in the cultural sphere, the rapid development of information and computing technology. Since the early 1990s, the wave of computerization swept Russia, information and computing equipment, which was massively imported from abroad, was in great demand. Previously little-known specialties in the field of information technologies began to gain popularity, teams were formed that carried out the development and implementation of standard hardware and software systems for automating information on collections of exhibits of various museums. Computers actively entered cultural institutions, changing the psychology of their managers and researchers, the understanding of the need and benefits of the introduction of new information technologies grew. The development of the Internet has played a huge role in this process. Among the most well-known variants of automated information systems for museums were the ABD-Museum, the AIS-Museum (developed by scientists of the Main Computing Center of the Ministry of Culture), as well as the Complex Automated Museum Information System (CAMIS). The CAMIS system was created in May 1991 at the State Institute of VNIP Statinform by order of the consortium “Masterpieces of Art” [8]. These systems were intended for creating text databases containing information about museum collections, as well as for automating stock and exhibition work. They were constantly being improved, the number of their functions increased, and the number of cultural institutions where these systems were implemented grew. This can be seen on the example of the CAMIS system which includes modules that allow you to prepare the system at the request of any museum. CAMIS performs such functions as: – ensuring communication of users among themselves, with developers, with the system; – automation of the collection reconciliation procedure; – automatic generation of lists for sending to the state catalog with a specified frequency; – direct data exchange with the automated system of the state catalog; – for museums-reserves and estates, it provides the creation of an automated information system for accounting and certification of architectural objects that have the status of monuments; – with the help of the module “Accounting of precious metals and stones” automates the work of museum employees responsible for storing items containing precious materials and processing documentation; – with the help of the module “Marking of museum objects”, it provides automatic identification of exhibits by their marking, records information about reading the marking in the database, identification occurs by marks applied either to the exhibit itself, or to its tag or packaging. The first version of CAMIS was developed in 1991 for the State Russian Museum. In June 1992, the second version was ready for the art museums of Yuzhno-Sakhalinsk, Irkutsk, Yekaterinburg, Novokuznetsk. In 1993, a version of CAMIS 2.5 was developed which found application in the Far Eastern Art Museum (Khabarovsk), the Rybinsk
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Museum-Reserve. At the request of the Russian Ethnographic Museum, a subsystem for “Recording the movement of monuments” was created. In 1994, an automated system “Bibliographic Catalog” was created for the Pushkin House (IRLI RAS) which was used in the Perm Gallery and the Kirov Art Museum. For the Russian Ethnographic Museum in 1995, the system “Checking the availability of monuments” was developed. Thus, in the mid-1990s, important steps were taken in the development of information technologies for cultural institutions in our country, about 200 museums were equipped with computers. Gradually, there was a transition from individual automated workstations to a network complex that allows solving a wide range of tasks in the daily activities of museums and expositions. The problem of introducing automated information systems in cultural institutions was the lack of norms and rules regulating both the composition of the parameters of the description of exhibits and a single terminology. The development of these standards was actively carried out both in our country and abroad. For the period that began in the second half of the 1990s and is continuing to the present time is characterized by the further development of automated information systems (AIS), the widespread use of multimedia technologies, communication on the Internet, the creation of catalogues of museums, including the description of several million exhibits. Relying on technological innovations, new versions of AIS have penetrated into all spheres of the museum space, solving issues of accounting and stock work, restoration, exhibition activities, etc. The integration of databases and information resources of museums in regions has been developed. The most significant projects of a regional nature, as a rule, were carried out on the initiative of cultural institutions, at the expense of their own funds or grants. Informatization was accompanied by the introduction of AIS, which significantly changed the usual forms of museums work. With the awareness of the leadership of cultural institutions of the advantages of new technologies, there was a tendency to integrate between museums of the same region. Using the example of the CAMIS system, it is possible to trace the main trends in the development of museum informatics at the present stage [10]. In 2000, a version of CAMIS 2000 was created, which found application in the Rybinsk Museum-Reserve, the Fund of Children’s Creativity of the State Russian Museum, etc. In 2001, this version was used by the accounting department of the State Russian Museum, the Rostov Kremlin Museum-Reserve, etc. In 2003, the first system for visitors associated with the database was released: the electronic exposition of the Museum of Nature and Man in Khanty-Mansiysk. Since 2005 CAMIS began to be used in Ukraine, having installed it in museums of Russian art, Western and Eastern art (Kiev). In 2007, multimedia expositions for the Kunstkamera and Tsarskoye Selo (St. Petersburg) were developed on the basis of CAMIS. In 2009, a standard solution for displaying museum expositions on the Internet was created on the basis of CAMIS. The following year, the first regional portal “Museums of Ugra” was created, which included a combined catalog, an exhibition hall, a game library of museums of the Khanty-Mansi Autonomous Okrug. 2014 was marked by the implementation of such a large and important project on the basis of CAMIS as the “Electronic Catalog of the State Hermitage Museum” which included data on 3.5 million exhibits, 4 million images, all accounting processes were automated. In the same year, a new web version of CAMIS 5 was released. In 2015, new modules were developed: “Collection on-line”, aimed at demonstrating museum collections on
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the Internet, “Marking” for the registration of exhibits in the Hermitage. The project “Kunstkamera 3 millennia” became a reality on the basis of CAMIS in 2016. It allows you to take a virtual tour, has a mobile application and a museum catalog.
4 Discussion To date, information and communication technologies have firmly entered the museum space. They are able to solve many problems, both inside the museums themselves, and when contacting guests, as well as outside the museums, mainly on the Internet [13]. An urgent problem is the accessibility of the world cultural heritage to the general population. The introduction of information technologies plays a huge role in solving these problems. The spread of COVID-19 has changed the economic, social and cultural life in almost all countries. The consequences of the pandemic can also include the accelerated spread of digital technologies in various industries. We hope that this will also affect the sphere of holding cultural events.
5 Conclusion Summing up, it can be noted that since its emergence, the exhibition informatics in our country and abroad has passed a long and difficult path. If the original goal was to catalog the exhibits of one of the collections of a museum or exhibition, now the tasks of creating a global information network about cultural objects and museum exhibits on a global scale are becoming relevant. Currently, digital museum communication is based on interaction with a single information space of the Internet portal “Culture. The Russian Federation”, created by the Ministry of Culture of the Russian Federation within the framework of the state program “Information Society” [1]. Digital solutions are widely used for continuing education and getting acquainted with cultural achievements in a remote format. Digitalization contributes to the transition to an online environment not only for education, work, trade, but also for entertainment, in the form of theaters, museums, exhibitions. Regarding the period of the global financial crisis of 2008, at the beginning of 2020, more than 4.5 billion people use the Internet, and the audience of social networks has exceeded the mark of 3.8 billion. Almost 60% of the world’s population is already online [15]. Thus, thanks to the joint efforts of scientists from different countries, the cultural space, even in a remote format, becomes more open and accessible. Information technologies are constantly becoming more complex and improved, which until recently seemed like a fantasy, today is successfully being translated into reality. The process of transforming the exposition and exhibition space with the help of information technologies began in the second half of the twentieth century and is successfully continuing at the present time. What will the exposition and exhibition space be like in the foreseeable future? Time will show.
References 1. About the approval of the state program of the Russian Federation “Information Society”. Resolution of the Government of the Russian Federation No. 313 of 15 Apr 2014 (2014). http://www.consultant.ru/document/cons_doc_LAW_162184/. Accessed 24 Dec 2020
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2. Ananiev, V.G.: The history of the formation and the main activities of the International Bureau of Museums. Bulletin of the Russian State University. The series Cultural Studies. Art history. Museol. 11(91), 224–232 (2012) 3. Belyaeva, M.A., Ladygina, T.A.: New museum communication: digital reboot. World of Science. Ser. Sociol. Philol. Cultural Stud. 4(9) (2018). https://sfk-mn.ru/PDF/09KLSK418. pdf. Accessed 22 Apr 2021 4. Bubenchikov, A.A.: Fundamentals of Scientific Research. OmSTU, Omsk (2019) 5. Dricker, A.S.: Information Technologies in the Museum. St. Petersburg University Press, St. Petersburg (2001) 6. Helpiks: Informatization in the Museum: History, Current State, Prospects (2021). https://hel piks.org/7-70398.html. Accessed 24 Dec 2020 7. Korolkov, V.E., Erofeeva, T.A.: Digital Transformation of the Economy in the Conditions of Geo-Economic Instability. Prometheus, St. Petersburg (2019) 8. Kuzmina, E.S., Nol, L.Ya.: A brief description of the museum object: another attempt at unification. Electron. Libr. 4(4) (2001). https://elbib.ru/article/view/162. Accessed 24 Dec 2020 9. Lebedev, L.Y.: Information Technologies in the Museum Business. Fundamentals of Museology. Museums of the Future, Moscow (2005) 10. Loshak, Yu., Kosheeva, E.: The complex automated museum information system KAMIS. Electron. Libr. 4(4) (2001). https://elbib.ru/article/view/165. Accessed 24 Dec 2020 11. Nol, L.Y.: Information Technologies in the Activities of the Museum. RGGU, Moscow (2007) 12. Piotrovsky, B.B.: The History of the Hermitage. A Brief Essay Materials and Documents. Art, Moscow (2000) 13. Rodionova, D.D., Kimeev, T.I.: Problems of information and communication technologies in regional museums. World Sci. Culture Educ. 6(43), 515–518 (2013) 14. TASS: Vladimir Putin urged to accelerate the development of the digital economy (2018). https://www.tass.ru/ekonomika/4882537. Accessed 24 Dec 2020 15. WebCanape: All Internet statistics for 2020 — Figures and trends in the world and in Russia (2020). https://www.web-canape.ru/business/internet-2020-globalnaya-statistikai-trendy/. Accessed 24 Dec 2020
Potential Realization of Lawful Behavior as Condition for Building a Digital State E. F. Ivashkevich1 , G. Sh. Bochkova1 , and R. V. Shagieva2(B) 1 Vitebsk State University, Vitebsk, Republic of Belarus
[email protected] 2 State University of Management, Moscow, Russia
Abstract. A “smart” state-legal management mechanism will help to direct the population behavior in a positive direction. The purpose of the study is to determine the main directions of realizing the potential of lawful behavior as a determining condition for building a digital state. The pluralistic methodology is used: dialectical-materialistic, synergetic and transdisciplinary methods, methods of analysis, synthesis, modeling, comparative studies. Economic growth, strengthening the fight against crime (cybercrime), corruption, abuse of power, ensuring employment of the population, raising the level of legal culture are the most important areas for activating the lawful behavior. The state needs a doctrinal, legislative, law enforcement strategy and tactics of lawful behavior as the main subject of jurisprudence and public practice. This requires constant monitoring of expected and real behavior, a developed system of incentives for lawful behavior, transparency, control of elections and the work of the state apparatus through the electronic state, the provision of public services in electronic form, the development of a digital system of legal responsibility. Keywords: Digital state · Legality · Legitimacy of law · Lawful behavior · Management · Types of lawful behavior
1 Introduction A person of an electronic society, turning into homo-internets, loses his national identity, ties with the traditional social community, transforms into a citizen of the world with an unlimited range of network partners, acquires great opportunities and risks. Its legal personality is filled not only with real, but also with virtual content. In the legal literature, the thesis is often given that both a strong and a weak state is bad for a person. In the first case, it suppresses the person, in the second – it condemns the person to death [4]. Human activity contributes to the development of the whole, strengthens collective links, or contradicts them [14]. The first is evaluated positively by the state, supported and stimulated, the second is negatively restrained and eradicated [8]. If the system of values (moral, religious, aesthetic, legal) cultivated in society corresponds to the needs and interests of the people, then the majority of the population behaves lawfully, if it contradicts – unlawfully [11]. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 163–169, 2022. https://doi.org/10.1007/978-3-030-94873-3_20
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At the same time, the democratic, social, legal nature of the state and the law, customs, traditions and culture of the people play a leading role in choosing the determining model of behavior [9]. Legality or illegality are qualitative indicators of the effectiveness of the legal system, the consequence, the result of responding to causal, deep, objectively existing power institutions and relations that show acceptance or non-acceptance of the existing state-legal reality. Their correlation depends on the nature of law, its legality, legitimacy and maturity of the civil society [15]. The digital society “blurs” traditional ideas about crime and legality associated with the growth of economic, mercenary crime, crime in the field of high technologies, a decrease in social activity of the population and an increase in absenteeism. The importance of the problem is that for a state-organized society, not any activity is important, but only creative, positive, legitimate one which is supports and strengthens it. The large volume of illegal behavior, its destructive nature, doctrinal, legislative, law enforcement difficulties in terms of creating a working system for the formation of lawful behavior, make us constantly turn to this topic. Lawful behavior that corresponds to legal norms, customs, traditions, moral and religious values, is aimed at preserving and strengthening the existing state system, the interests, needs and well-being of citizens [16]. Illegal behavior acts against the system of legal regulation, state power, interests of the society, opposes itself or treats them indifferently. Lawful behavior is the most important cultivated legal value that connects the form and content of the state, positive and natural law, due and measure of possible justice. Lawful behavior is an important prerequisite, a necessary condition for the exercise of citizens’ rights and freedoms, the establishment of the legality and strengthening of the legal order. Being the main form of existence, the realization of the right, it is an integral part of a civilized, law-abiding, respectable, state-demanded civil behavior. Society can function normally only when legitimate actions constitute the main array of legally significant behavior, and the implementation of legal norms gives the greatest social effect [2]. If the number of offenders exceeds the number of law-abiding citizens, it will lead to anarchy, revolution, the overthrow of the ruling political elite, the collapse of the state.
2 Methodology The paper uses a pluralistic methodology, including traditional and new methods. It combines dialectical-materialistic, synergetic, transdisciplinary methods. The authors also used methods of analysis, synthesis, modeling, and comparative studies. Thus, the dialectical-materialistic method, which objectively assesses the new state – legal reality, allows us to speak about a certain “attenuation” of socially active behavior of citizens. This is due to the increase in the labor, stressful rhythm of life, the lack of a clearly formulated and popular ideology, the real results of its implementation, the commercialization and individualization of public relations. The logical analysis indicates the absence of a comprehensive study of the issue at the doctrinal, legislative and law enforcement level. The comparative approach revealed a weak reception of the international aspects of this phenomenon and their implementation in the national legislation. The transdisciplinary
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method allowed us to look at this behavior through the prism of the conceptual foundations of the philosophy of law, the general theory of law, information and communication technologies, sociology, legal psychology, epistemology [13]. The authors investigated the problem through the prism of an integrative (synthetic) concept of law. This theory proceeds from a cartoon approach that combines the norm, spiritual and moral values, social, psychological and law enforcement implementation.
3 Results 1. The state measure of proper behavior is created by a positive legal norm, legal in form and legitimate in content, corresponding to the spiritual and moral mononormatics [1]. This is a legal reflection of real social laws and laws, interests and needs of the population. 2. It is necessary to develop a state strategy and tactics of lawful behavior, turning it into the main subject of jurisprudence and public practice, create a mechanism at the state level that stimulates the lawful behavior of citizens, including economic, social, and psychological determinants. 3. A state-organized society, developed in economic, political, social, legal, spiritual terms, objectively contributes to the growth of social activity and legitimacy of citizens. Their actions are directly proportional to the state’s concern for the people and the effectiveness of public administration. 4. In order to activate lawful behavior, it is necessary to ensure the openness, transparency of the election process, the control of the government’s activities by the civil society through the electronic state and electronic law, the provision of public services to the population mainly in electronic form, via on- and off-line communication, e-mail. 5. Two main factors can improve the situation in society – strengthening the work of law enforcement agencies (raising their social and material prestige) in the fight against crime, corruption and prevention, improving the civil, moral, legal education of young people. 6. Develop an electronic system for the occurrence of legal liability for automatically recorded offenses that can be digitally processed.
4 Discussion In the conditions of democratic, socially-oriented, legal and legitimate law, lawful behavior plays a positive role for both the individual and society, acting as the main direction of development and manifestation of their potential. In the conditions of anti-democratic law, forcibly established with the help of repression, PR, deception, lawful behavior is the only possible means of survival and preservation of human life for the majority of the population. Its action should be aimed at the legitimate change of power, the use of “soft power”, the opportunities of civil society, the formation of the opposition. Evolution has a preference over revolution and rebellion. According to Oksamytny, legal behavior is socially significant behavior that does not go beyond the legal norms and is implemented in practice. It is a possible behavior that
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acts within the proper framework. Its action is carried out on the basis of the spiritual and legal requirements of the state, consciousness, traditions, a sense of duty of a person [10]. Some types of lawful behavior are built into the framework of legal obligations. For example, the protection of the state as a duty and a sacred duty of a citizen (Article 57 of the Constitution of the Republic of Belarus) [19], compliance with the Constitution, laws (Article 52), respect for the dignity, rights, freedoms and legitimate interests of other citizens (Article 53), payment of taxes, duties (Article 56), etc. The Criminal Code of the Republic of Belarus refers to lawful behavior such actions that exclude the criminality of the act: “Necessary defense” (Article 34), “Causing harm when detaining a person who committed a crime” (Article 35), “Extreme necessity” (Article 36), “Staying among the participants of a crime on a special assignment” (Article 38), etc. [20]. The Civil Code of the Republic of Belarus highlights lawful behavior in the articles: “Lawful possession of information constituting official and commercial secrets” (Article 140), “Lawful seizure of property” (Article 280), “Lawful claim” (Article 430), “Lawful indication of the principal” (Article 863), “Harm caused by lawful actions” (Article 933), etc. [18]. There are various classifications of types of lawful behavior. Traditionally, there are: law-abiding, socially active, habitual, conformist, marginal behavior. It is obvious that the division is based on an internal belief (motivation), attitude to the act and the scale of social impact. There are no clear criteria. It is almost impossible to make their measurements. For a long time, the internal and external forms of lawful behavior were distinguished. Internal forms are associated with one’s own conviction in the rightness of an action performed sincerely, without external pressure. While the external form is imposed by law, it is conditioned by coercion, sanctions, fear [10]. Law-abiding behavior is the behavior of subjects based on conscious compliance with the requirements of legal norms. This type of behavior is typical for the majority of the population due to various factors. This is, first of all, the desire for stability, peace, faith in the legality and justice of the actions of the authorities, fear of public opinion, legal punishment, the desire to have harmony with yourself, your conscience. It is based not only on the conviction that one is right, but also on practical skills and abilities, it is based on a high level of legal consciousness and legal culture of the individual, it assumes a positive attitude to the state and law, positive legal motivation. Law-abiding behavior is desirable, acceptable and beneficial for the majority of the population, is cultivated and supported by the state. Its establishment is facilitated by the system of spiritual, moral and religious values. Socially active behavior is the highest form of consciousness, responsibility and voluntary nature of legal subjects. This is a socially significant, preferred and useful type of activity approved by the state. Its determinants may be the desire to realize oneself in socially significant activities, to benefit people, the country, to acquire a certain social status, to make a career, to raise the material level, to fulfill one’s social duty, etc. [5]. Often they are people with high internal positive energy, living for the sake of an idea, justice, the people, the motherland. They can be considered as a conscience, a spiritual and moral measure of society. Gumilev (1912–1992), Soviet and Russian scientist, historian, philosopher, called socially active people “passionaries” who are able to make sacrifices for the sake of achieving an ideal, who want to change the world [17].
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The study of the legal culture of young people in the border regions of Russia and Belarus has shown that our young people have an active civil position in general. They are ready to confront the criminal either with actions (31% of Belarusians and 24.6% of Russians surveyed), or to report to law enforcement agencies (58.45% and 53.6%, respectively). At the same time, it seems to us that the first case, in order to avoid unprofessional actions that can cause damage to health, is dangerous. Only 9.6% of Belarusians and 10.3% of Russians will pretend that this does not concern them, and 2.9% and 10%, respectively, will not make any efforts to interfere. The categorical unwillingness of many young people to help the investigative authorities, the police in suppressing and solving crimes is alarming. In Belarus, this is 44.1%, in Russia – 34.6%. It can be stated that the assistance of the police is considered by a significant part of the youth as an unworthy thing [3]. This is due to numerous cases of violations of the legal order by law enforcement officers, abuse of power, official position, tactless behavior towards citizens. Habitual behavior is behavior within the framework of a legal norm aimed at obtaining a legally significant positive result. This behavior as a result of repeated repetition has become a habitual, natural way of life (“habit is second nature”). Fixed at the conscious level, it turns into an automatically acting unconscious skill of habitually positive lawful behavior. Habit, as the dominant motive of action in the field of law, is called by up to a third of respondents [10]. Habitual behavior can be caused by both fear of punishment and conviction in the usefulness and expediency of lawful behavior. Interestingly, 20% of Russians would have participated in the commission of crimes if there were not any threat of punishment [10]. Therefore, on the one hand, it contributes to the establishment of stability and legality in the state, on the other hand, it leads to conservatism, passivity, non-criticality, fear of changes. Conformist behavior is a position of agreement with the opinion of the majority, the crowd, the policies and actions of the authorities, associated with physical and psychological pressure. The individual tries to be like everyone else, not noticeable, not objecting, agreeing, ready to fulfill any orders of the management. The subject of law is forced to obey legal regulations without their deep and comprehensive awareness, without being convinced of their correctness and justice [7]. This behavior is characterized by a low degree of legal activity of socially significant actions. Conformist behavior, on the one hand, is negative, since it suppresses one’s own opinion, deprives one of initiative, makes one adapt, hypocritical and hide internal beliefs. On the other hand, in a democratic state governed by the rule of law, it can be positive, since it requires law-abiding behavior from an individual, the need to obey generally accepted norms and values, forces him to behave the same way as the majority of the population – lawfully and civilly. Marginal behavior is the borderline behavior of a person who does not go beyond the legal norm and is forced to fulfill it under the threat of external pressure, sanctions. Marginal is a person who, due to significant external or internal cataclysms, “fell out” of the former social community, lost his job, family, friends, the meaning of life. He experienced a life collapse, lost his former social and legal status, did not find himself in the new socio-economic and legal realities. A marginal person is characterized by fluctuations between lawful and illegal behavior, a sense of irresponsibility, indifference
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to the interests of other people. This group lacks a strong ideological and volitional basis, a system of legal beliefs due to isolation from social roots, loss of previous values [12]. They are dominated by psychological motives of instability, bitterness, apathy and aggressiveness caused by unsettled life, the breakdown of social ties, the loss of their former social and legal status. This category includes: refugees, migrants, former prisoners who have returned from prison and have not been able to start a “normal” life, homeless people, people of unclaimed professions, etc. Often their behavior is associated with social deviations, crime, parasitism, dependency, radicalism, satisfaction of selfish interests [6]. Digital inequality increases social stratification at the interstate, national, group, and individual levels. The change of the social development paradigm, life in conditions of constant risk, stress, commercialization and individualization of relationships, dependency, growing immoralism are the breeding ground for marginal behavior.
5 Conclusion A risk society in conditions of instability, uncertainty, fear, unequal opportunities puts a person before a choice. The choice between lawful and unlawful behavior is often made in favor of the unlawful, if it does not threaten serious legal consequences. This is facilitated by the capitalization and dehumanization of relations. Socially active, passionate behavior is rapidly decreasing, giving way to law-abiding, conformist, marginal one. “Social diseases” of the state push to illegal behavior. Lawful behavior is the main indicator of the authority, legality, democracy, and capacity of the government, which is able to dispose of its resources for the benefit of people. Both lawful and illegal behavior have their own objective and subjective reasons. Objective ones relate to nature, the democratic orientation of the state power, subjective reasons are linked with a low level of spirituality, legal culture of the population, the costs of the education and upbringing system. The state must meet its true purpose, serve the people, realize their potential, create conditions for harmonious development. This is possible in the conditions of a legal and legitimate government, which, by a purposeful policy, daily confirms its purpose. Lawful behavior becomes the norm for the absolute majority of people with a stable political situation, an increase in the material and cultural standard of living of the people. The social, democratic, legal nature of the state, the uncompromising fight against crime, the strengthening of the legality and the legal order, the improvement of the legal system, the increase in the social activity of civil society contribute to the growth of legitimate behavior of the population, the formation of legal conviction and legal culture. A lot of theoretical positions related to the legal qualification of “street democracy”, unauthorized mass marches, the legality of revolutions, the collapse of the USSR, the territorial integrity of the state and the realization of the people’s right to self-determination, which have a fine line of legality and illegality, need further research. “Smart regulation” in the digital age is aimed at the realization of the right by stimulating lawful behavior. The doctrinal development, the creation of a legislative and law enforcement mechanism that uses information and communication technologies, the potential of direct, representative and electronic democracy, contribute to the implementation of effective public administration in the conditions of digital transformation of our society.
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References 1. Arrow, D.W.: «Rich», «Textured», and «Nuanced» Constitutional «Scholarship» and Constitutional Messianism at Millennium. Texas Law Rev. 78, 149 (1999) 2. Bernstein, L.: Opting out of the legal system extralegal contractual relation in the diamond industry. J Legal Stud. 21, 115 (1992) 3. Bochkov, A.A.: Legal culture of the youth of the borderlands of Russia and Belarus. Right 2(12), 90 (2011) 4. Demichev, D.M., Bochkov, A.A.: General Theory of Law. Higher School, Minsk (2019) 5. Hirshleifer, J.: On Emotions as Guarantors of Threats and Promises (1987). https://econpa pers.repec.org/paper/clauclawp/337.htm. Accessed 16 Mar 2021 6. Kahan, D.M.: Social influence, social meaning, and deterrence. Va Law Rev. 83, 349 (1997) 7. Kuran, T.: Private Truths, Public Lies: The Social Consequences of Preference Falsification. Harvard University Press, Cambridge (1997) 8. Lindbeck, A.: Welfare state disincentives with endogenous habits and norms. Scand. J. Econ. 97, 477–479 (1995) 9. Matuzov, N.I., Malko, A.V.: Lawful Behavior and Offense. Theory of State and Law. DELO THE RANEPA, Moscow (2016) 10. Oksamytny, V.V.: Legitimate Behaviour. General Theory of State and Law. Zertsalo, Moscow (1998) 11. Posner, E.A.: Law and Social Norms. Harvard University Press, Cambridge (2000) 12. Posner, E.A.: The regulation of groups. The Influence of legal and non-legal sanctions on collective action. Univ. Chicago Law Rev. 63, 133 (1996) 13. Posner, R.A.: Cardozo: A Study in Reputation. University of Chicago Press, Chicago (1993) 14. Posner, R.A.: Frontiers of Legal Theory. Harvard University Press, Cambridge (2001) 15. Posner, R.A.: Law and Legal Theory in England and America. Oxford Scholarship Online, Oxford (1997) 16. Posner, R.A.: Problematics of Moral and Legal Theory. University of Chicago Press, Chicago (1999) 17. Sokolov, N.Y., Fodorchenko, A.A., Shagieva, R.V.: Theory of State and Law. Prospekt, Moscow (2019) 18. The Civil Code of the Republic of Belarus. https://pravo.by/document/?guid=3871&p0=hk9 800218. Accessed 16 Mar 2021 19. The Constitution of the Republic of Belarus. https://pravo.by/document/?guid=3871&p0= v19402875. Accessed 16 Mar 2021 20. The Criminal Code of the Republic of Belarus. https://pravo.by/document/?guid=3871&p0= HK9900275. Accessed 16 Mar 2021
“Big Data” as a Mechanism for Assisting State and Municipal Authorities D. Yu. Znamenski1,2(B) , A. S. Sibiryaev3 , and T. M. Tokmurzin3 1 State University of Management, Moscow, Russia 2 National Research University “Moscow Power Engineering Institute”, Moscow, Russia 3 Financial University Under the Government of the Russian Federation, Moscow, Russia
Abstract. The subject of this contribution is information and telecommunications technologies considered in the context of the use of “Big Data” technologies. The research purpose is to substantiate mechanisms for the use of these technologies in the system of state and municipal administration (hereinafter – SMA) of the Russian Federation, the relevance of the use of “big data” is confirmed by a number of economic, political, social factors. The use of “big data” technologies can offer the state a solution to various problems. However, the introduction of these technologies is associated with overcoming a number of significant difficulties in the system of state and municipal administration. Keywords: Big data · Information and telecommunications technologies · Pandemic · State and municipal authorities
1 Introduction Informatization, namely the use of information and telecommunications technologies (ICT) of a new generation, opens up new development ways within the framework of improving the system of public administration, entering a new stage of relations between the state, state bodies, self-government bodies and civil society. The system of “electronic governments” that emerged in the XXI century in many states and has become widespread in recent years improves such types of interaction as “citizen-state” and takes them to a fundamentally different level. Thanks to the “electronic government” system, transparency of management decisions is ensured and the influence of possible subjective factors is leveled during the process of making such a management decision. It is also worth noting that the current time is characterized by the fact that the state authorities have turned their attention to the insufficient development of informatization of public administration and public life, so now attention is being paid to the existing problems, and development prospects of this direction are becoming obvious [1–3, 5, 6].
© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 170–178, 2022. https://doi.org/10.1007/978-3-030-94873-3_21
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2 Methodology As a methodological basis, the authors use system-dynamic, statistical approaches that involve the consideration of “big data” technology in the context of its institutional, temporal and technological elements. Based on the logic of the above approaches [14], the concept of “big data” analysis should include: 1) the institutional foundations for embedding this term in the structure of state, regional and municipal management, as well as the corresponding goals, value orientations and priority areas for the use of “big data” in the activity field of state and municipal structures; 2) the description of the main problems of the use of information and telecommunications technologies, including “big data” (the problematic aspect of the introduction of “big data”); 3) technological and statistical components of the use of information and communication technologies and one of their tools – “big data”, the description of technologies for the usage of “big data”, as well as opportunities, including mechanisms for the formation, implementation and evaluation of the effectiveness of big data use in the SMA system. The contribution also uses the method of comparative analysis [14, 15]: comparing goals of information and communication technologies management in the period before and during the Covid19 pandemic and linking them with the implementation mechanisms, opportunities and states of intermediate values of the process of implementing “big data” as one of the most important tools in the fight against coronavirus infection.
3 Results Let’s talk about the above-mentioned problems that arise during the development of information and communication interaction processes between management levels: – a probabilistic increase in the need for the presence of substantive, accurate and upto-date information about the situation in the state – at all levels of government, as well as in private organizations, regardless of the region, that is, on the territory of the whole country; – insufficiency of the functionality of collecting the above type of information – an effective process of making managerial decisions becomes possible only with the help of analysis, search for cause-and-effect relationships between events and the creation of various forecasts (optimistic, pessimistic and realistic) of the situation development, leading to the development of correct solutions and their assessment, and subsequently monitoring the implementation of made decisions, which in turn is possible if there is an operatively functioning analytical department or system in the management apparatus; – the growth of public demands for transparency in the activities of government bodies; – the lack of a regulatory framework, as well as the lack of a unified system within the framework of the informatization methodology, which is especially noticeable at the management levels in the regions and municipalities, but not at the federal level. At the same time, the basis for such a legal framework within the regions and territories, the creation of regional and municipal information resources, the construction of an information service system for the population should be federal normative legal acts
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of the information sphere that determine the main directions of the state policy in this area; – inadequate financial support for the field of informatization. Recent years have been characterized by an increase in attracting investment in the field of informatization, and it is also assumed that this trend will continue for future years within the current decade. Nevertheless, the above process is caused by spontaneity, namely, the implementation of one-time plans for informatization takes place within specific government agencies, management bodies and/or enterprises, while these plans are not coordinated with each other within the SMA system, therefore, there are disadvantages such as increased costs, the acquisition of technologies and equipment that do not correspond to the time. Each institution finds itself in a situation where it is necessary to independently generate and maintain its own information resources, for example, directories about counterparties, real estate objects, cadastral numbers, and so on, which would be more objective to request from the bodies authorized for such activities, which would ensure a reduction in the costs of such activities; – the lack of specialists in the required number in the field of state authorities informatization, as well as the lack of professionalism of existing specialists. A significant part of the informatization costs is occupied by capital investments for the purchase of technical equipment, while in second place in terms of expenses are the costs of professional development of employees. Therefore, the successful solution of the described and other issues within the framework of the development of this scientific and technical process in the SMA system is mostly determined by a more advanced state information policy. The following conditions should be met: – correct correlation with actual tasks and results of administrative transformations; – parity between increasing the efficiency of the state’s activities through the development of information technologies and compliance with civil control within the framework of the activities of state authorities; – correction and updating of federal target programs (FTP), interdepartmental and departmental programs for the promotion of IT technologies in the activities of government and management bodies, taking into account the main provisions of the informatization concept; – ensuring priority for Russian scientific, technical and industrial achievements in the field of IT infrastructure, taking into account the knowledge and practice of subjects of the Russian IT technology market; – the obligation to ensure the emergence and improvement of e-government technologies as a mechanism for providing public and municipal services to society. At the current moment, ensuring the operation of electronic management methods in the SMA system is the most promising and important direction within the framework of administrative reform. Serious problems appear when using electronic document management systems (EDMS) both within the departments and within the authorities. The introduction of EDMS in the global plan, as well as in the interdepartmental interaction
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between public authorities, leads to significant problems. Certain features are characteristic of the present time. Despite the significant development of electronic services, the availability of a legal framework, regulatory and methodological documentation on this issue, this is not enough to ensure the full implementation of electronic document management between departments and citizens. The transfer of work from paper to electronic media causes many difficulties that neither an official nor a citizen has thought about before. Moreover, every local government body will not be able to afford such a thing. In some councils of remote areas, there is sometimes no sufficient technical equipment (computers, electricity all year round). What can we say about large-scale servers? Due to these factors, electronic documents has to be processed and transferred to a specialized data center, which is a special room used for storing and processing data. In addition to the basic technical aspects, there are also such negative factors as the inconsistency of departmental electronic document management systems (EDMS) in a number of regional authorities. To date, the most rational solution is to create a centralized EDM system using the “cloud” based on SaaS technology, the subsequent implementation of this system in all authorities, as well as local self-government bodies, bringing the work in the system to a single denominator. A single system is needed to save budget funds, as well as for the work efficiency, compliance of data in all databases and their rapid request between departments. The obvious fact is that in public administration, documents are the main object of management. The documents ensure the vital activity and correct “work” of the state, the public administration system, the joint coexistence of departments and citizens. At the same time, the variety and specificity of these documents are amazing – there are countless types of documents. For such a large state with many regions and a significant mass of the population, this is necessary. As well as it is relevant to solve a problem of creating regulations for working with existing original documents that will need to be digitized and entered into the database, and subsequent work with electronic documents. At the same time, it should be taken into account that the documents will be divided into 3 options: – archival documents that need to be brought into the proper form (digitized – scanned or copied manually in case of improper quality and unreadability of the existing document); – current paper documents – all requests received from citizens and filled out on paper, all “fresh” documents still received by the departments should also be digitized (at the same time, it is important to avoid duplication of paper and electronic documents – it makes no sense to store both and it is extremely expensive); – electronic documents are documents received in electronic form in the current mode, both from citizens and from departments. To create such a complex, it is necessary to carry out a state order, such a largescale issue should be worked out in a specialized research institute. To date, there are objective factors that cause difficulties in using information and analytical systems in the state authority itself. Among such factors, the following can be distinguished:
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– in socio-economic management, it is necessary to take into account human and behavioral factors that are unpredictable and combined with other difficulties that lead to difficulties in using information technologies for forecasting and strategic planning of the development of situations and processes; – currently, the divisions of the public administration system maintain databases in parallel, where the indicators are duplicated, while such data is not verified (the difficulty lies in many factors: the indicators are different, interpreted in different ways – it often happens that different departments have different values for the same indicators). This situation is explained by a number of objective reasons – for example, the lack of a single corporate data warehouse in state authorities at the level of the regions of the Russian Federation. The creation of such a storage is not an easy task, which requires significant financial costs for the formation of a unified telecommunications system of state authorities, which is caused by the purchase of the necessary software and technical equipment, as well as the connection to a server for data storage. Nevertheless, even the above factors are not the main obstacle to the necessary process – the authority that will be responsible for developing the methodology of this process has not yet been chosen, since the task is extremely responsible, it is not easy to choose the performer and the responsible person even at the state level. Turning to the history of the issue, we can recall that in the 2000s, the main problem was the lack of the necessary information and communication infrastructure. Now there is no such problem at the regional level of management, but this positive factor has not led to the solution of the problems completely. An example is the Chelyabinsk Region with several know-how applied within the framework of the authorities activities: there is a gigabit telecommunications network for interdepartmental interaction, an appropriate database processing center of the authorities is being operated, the most common database management systems (DBMS) have been purchased and deployed, a geoportal has been launched. At the moment, not all of these areas of digital technology development are actively and widely used in the Russian Federation. Among the negative trends in the development of information technologies, it is particularly necessary to pay attention to the following: the aggravation of the situation with the openness of data; the lack of necessary conditions for the development of machine-readable laws, despite the active discussion of such laws. Individual experiments of promoting IT technologies in the public administration system have led to the creation of disconnected information systems that duplicate each other, without changing the processes of “paper” document flow. Digital development, transformation and adaptation require a new approach to creating digital solutions, as well as a change in the paradigm of functioning and organizational culture in the system of authorities. Using common platforms with access for all subjects is the simplest solution that ensures user interaction. Therefore, during the new rise of digitalization, not only new technical solutions should be applied, but also new management technologies which will ensure a focus on the transformation of people. Most of the state information systems (SIS) are document-oriented: as a rule, the systems store documents in Word format, or scanned manually signed PDF documents, and not the data to which these documents are linked—it is almost impossible to work with such data. Another problem is that not all government employees are able to work with
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data, and therefore data-based decision-making is almost not used [4]. As the monitoring of the “May Decrees” [7] showed, the possibility of manipulation in the calculation of indicators has become one of the most common ways for departments to formally achieve the target values of indicators laid down in these regulations. Similarly, work can be carried out on state programs, “road maps”, and other strategic planning documents. Even the changes that have already been implemented are of a point nature and do not affect the situation as a whole. It is necessary to act in a completely different way, starting with changing the strategic management system and ending with the formation of a new organizational culture in the civil service [4, 8]. Executive authorities in the digital world should be protected to the maximum, like military facilities. At the same time, it is important to take into account the presumption of innocence of a citizen – after all, digital systems determine a person’s identity and actions solely by external factors, for example, a photo or video from a camera, a voice recognition system. At the same time, the technologies are not yet perfect enough – there are cases of errors in the identification of a person in the case of twins, namesakes, etc. All these risks should be taken into account and multi-factor identification should be introduced, as well as careful attitude to the statements of the citizen himself. Unfortunately, in the system of fines and penalties, the presumption of innocence works extremely poorly. It is also worth noting that “big data” (a large amount of information, as well as a system for working with it, a method for processing and analyzing it; an innovative technological direction) through the use of social networks as platforms for public discussion of problems, significantly help to ensure the involvement of citizens in solving state problems through public discussions. Today, with the help of online services, we can express our opinion on many state issues, especially those related to local problems. In general, big data should be used as efficiently as possible. The new system will allow you to get operational information about the movements of citizens, education and its effectiveness, the level of satisfaction with health care and the speed of solving problems in these most important social spheres. At the same time, such data should be used not for the implementation of a control and supervisory function, as was shown by the example of fines, but for the purpose of improving the life of each individual citizen. It is necessary to monitor whether people receive high-quality medical services, whether they manage to get to the tests and to the doctor on time, whether they have real access to fast and high-quality medical care. The state should use the data obtained with the help of websites and applications, a lot of electronic resources to improve the life of the population, and then a new era of interaction between the state and society will really come. In the face of new risks and challenges (the COVID-19 pandemic), the world as a whole is adapting to high-quality, timely, and most importantly – safe provision of services and the use of limited resources. During the period of coronavirus restrictions, the responsibility of municipal authorities has greatly increased. To ensure the security and at the same time a favorable standard of living of citizens, the state creates conditions for performing certain functions in the field of communications. Therefore, it is important to highlight such aspects as: the needs of citizens for security, growing information flows, electronic platforms, the quality and efficiency of provided services, the quality of
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feedback. The concept of a “smart city” implies the principle of openness. The collected information arrays pass the stages of collection, structuring, processing and storage in a timely manner, which allows us to provide municipal and state services to citizens in accordance with their interests. At this stage, it is necessary to highlight the areas and services that are provided in a remote format within the framework of the “smart city” concept. Big data and electronic platforms interacting on its basis optimize management and communication in various issues. The smart city within the framework of the pandemic causes an increase in the efficiency of the urban management system, provides non-dangerous and comfortable living conditions for citizens [7, 11]. To give a general idea of the amount of data that needs to be processed and stored, the authors are required to provide official statistics: an estimate of the permanent population of Moscow as of January 1, 2020 for municipalities. This will help to give a generalized picture of how many information centers and storage facilities are required for processing information with its further use in the smart city project. The total population in Moscow for the presented time period (January 1, 2020) is 12,678,079 inhabitants. However, we can also talk about difficulties that arise when these tools interact. First of all, this is a question of the security of processing, transmitting and storing arrays of information about citizens. A similar problem can be solved by building a hierarchy of data levels for their separation, classification of protocols for transmitting such data, methods and forms of their storage. To increase the level of data privacy security, it is proposed to divide information into two types: text, which is subject to symmetric block encryption, and the format of images in the form of signals that go through the decryption stages based on the chaos theory [9, 10, 12]. There are problems with the collection of data in the regions and municipalities of the Russian Federation, which results in misinformation of authorities and citizens. It should also be noted that the inefficient form of relaying information about the provided services, which can be arranged remotely. The main complicating factor in choosing the direction of social support for citizens is a long and complex process of collecting and interpreting data on the level of health of citizens of the region, their financial security. This information is generally characterized by heterogeneity and originality, as well as variability. To improve the effectiveness of the taken decisions, it is proposed to use fundamentally new methods that will cover a sufficiently large target audience, which will help to collect information related to the COVID-19 virus. Such an approach is quite appropriate to use through the interaction of social networks and state electronic platforms. In this case, the indicators of viewing information about public remote services may increase. Social networks are a storehouse of information about users, often more relevant and truthful than the reports provided by citizens themselves. In social networks, people indicate the main markers about themselves – gender, age, interests, place of work and study, photos, geodata, note hashtags, due to which the “social monitoring” system can learn much more about them and ensure the correct implementation of isolation. Such data is also needed to identify social needs at the present time. Today, the role of big data occupies a special place in improving the efficiency of service delivery. Municipalities have the opportunity to quickly respond to changes in the external environment. More and more spheres are
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involved in the transition to electronic document management, therefore, for the safety of the health of municipal residents in the conditions of a pandemic, the structuring and collection of huge amounts of information is especially relevant.
4 Discussion Some of the conclusions presented by the authors of the work can serve as the subject of scientific discussion among political scientists and economists. Thus, the point of view of individual authors given during the writing of the contribution may seem erroneous, according to which the financing of certain informatization areas in the SMA bodies is spontaneous. At the same time, the authors insist on the need for more coordinated planning in the field of budget financing of information and telecommunications technologies (big-data is a special case) in the structure of government bodies. We consider it possible for state, regional and municipal authorities to participate in the processes of qualitative analysis, implementation and evaluation of information received in social networks. The authors support the point of view of the Smirnykh [13] about the need to introduce digital technologies to enterprises and authorities in a sufficient volume, since the higher the level of application of these technologies is in the country, the lower the level of the unprepared for innovations population is. However, it is necessary to take into account the mental “opposition” of a larger proportion of the population to the new methods used by the authorities.
5 Conclusion The scientific results presented by the authors can be used in the theoretical and practical spheres of activity of federal, regional and municipal authorities, as well as by scientific and educational organizations in the development of courses for the introduction of information and telecommunications technologies into the system of state and municipal management. The originality of the approach used by the authors lies in the possibility and necessity of using big data technologies to overcome the results of the Covid-19 pandemic. The scientific results have a practical value, expressed in the possibility of their use in the development of strategies for the state, regional and municipal government bodies in the information technology system. The scientific value of the research results is determined by the fact that they can be used as a methodological basis for a wider introduction of big data technologies into the SMA system. The main result of the introduction of telecommunications technologies into the system of state power should be the wider use of “big data” in all spheres of state and public life of people. Thus, the quality of public and municipal services will be improved, and “big data” can become one of the most likely tools for warning citizens about the occurrence of various kinds of threats, including pandemics.
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Russian Industry in the Digital Age: State and Development Trends I. N. Ivanov1(B) , L. V. Orlova1 , and S. I. Ivanov2 1 State University of Management, Moscow, Russia 2 Fabricoat LTD, Limassol, Cyprus
Abstract. The contribution shows some problems in the domestic industry, the causes of their occurrence, as well as actual trends of the Russian industrial policy. Two approaches to the formation of this policy are highlighted: “vertical” and “horizontal”. The authors substantiate the preference for a horizontal model based not on strict measures to support industries and companies, but on the formation of a comfortable environment for the functioning of all participants in the industrial market. The necessity of forming a new development strategy and innovative business models for the implementation of this strategy in the industry is emphasized. The basis of these models should be a technological platform based on a complex of continuous innovations carried out by all participants of the network. Clustering of the industry is presented as a promising form of cooperation of these participants. The positive experience of the formation of innovative industrial clusters in various regions of the country, especially successful in combination with modern information and communication technologies, is shown. Effective ways of creating and subsequent development of these clusters are presented. The prospects of including small and medium-sized businesses in technological industrial chains are discussed. Keywords: Business model · Cluster · Digitalization · Industry · Industrial policy · Small and medium-sized businesses
1 Introduction Industrial policy, which is currently one of the most important national priorities, occupies a special place in the set of tools for the state influence on the Russian economy. The need for effective management of the real sector of the economy has always been obvious, but the real state of this sphere leaves much to be desired. According to the results of 2020, industrial production in the Russian Federation decreased by 2.9%. The decline in industrial output occurred for the first time since 2009, when the decline was 10.7%. According to the results of 2020, the reduction in production was [11]: – in the electric power industry-3.8%; – in the heat power industry-2.5%; – production of coke and petroleum products-3.0%; © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 179–186, 2022. https://doi.org/10.1007/978-3-030-94873-3_22
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coal mining – 6.3%; production of motor vehicles-11.6%; extraction of non-metallic minerals – 15.4%; in the leather industry-12.4%; crude oil and natural gas production – 10.3%.
It is obvious that industrial production, which accounts for about 30% of domestic GDP, will maintain a negative trend for some time, taking into account the high uncertainty with COVID-19 and the reduction in domestic demand for industrial products. It should be emphasized that negative trends both in the industrial sector and in the economy as a whole appeared much earlier: in 2013, the Russian economy, with an oil price of $108 per barrel, grew by only 1.3%, in 2014 - by 0.6% ($98 per barrel). In 2015, there was a general decline of 3.9% [7]. The Russian economy is developing mainly due to the extractive industries and the sale of raw materials abroad, which has formed its (economy) strict dependence on oil prices and the volume of exports of natural resources. Given the sharp drop in oil prices and the deterioration of the political situation for Russia, these sources of economic growth have practically dried up. The vectors of industrial policy in Russia were not constant. At the beginning of the reforms, emphasis was placed on stimulating domestic demand, providing enterprises with working capital, and allocating “locomotive industries”. Later, the emphasis was placed on “growth points”, on “production chains”, on import substitution. The implementation of import substitution programs is certainly extremely relevant. However, there is a number of problems on the way of implementing these programs. First of all, these are difficulties with financing related to restrictions on access to international capital markets, a reduction in foreign investment, as well as high interest rates on loans from Russian banks. The President of the Russian Federation, by his Decree of 07.05.2018 (No. 204) “On national goals and strategic tasks for the development of the Russian Federation for the period up to 2024”, set high benchmarks for the industry, providing for the creation of a high-performance export-oriented sector in the basic sectors of the economy, developing on the basis of modern technologies and high personnel potential [3]. These guidelines determine the export-technological vector of development of the Russian industry.
2 Methodology Industrial policy is currently one of the most important and at the same time controversial subjects of economic science. The Federal Law “On industrial policy in the Russian Federation” dated 31.12.2014, No. 488-FZ interprets industrial policy as a set of legal, economic, organizational and other measures aimed at developing the industrial potential of the Russian Federation, ensuring the production of competitive industrial products [4]. In the scientific literature, this concept is interpreted more broadly and is associated with the structure of the economy with a purposeful change of the latter to achieve its balanced development [13]. If we consider industrial policy from the point of view of the state participation in the country’s economy, then there are two variants of this policy in the scientific literature – “vertical” and “horizontal” policy. At the same
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time, the “vertical” option involves the formation of a set of measures to stimulate the development of the most priority areas of the national economy for the state, which indicates the selective, point-based character of the impact on economic entities. It is obvious that the considered version of industrial policy suffers from subjectivity and can lead to unjustified discrimination of individual sectors of the economy. Therefore, the implementation of this model should be accompanied by reasonable calculations of all possible options for the use of material, financial, labor and other resources. The “horizontal” version of industrial policy does not imply the division of individual sectors of the economy into priority and other ones. The emphasis here is on creating favorable business conditions for the majority of participants in the industrial market by increasing investment attractiveness, improving the business climate, developing competition, stimulating entrepreneurial activity, removing barriers to business creation and development. This model does not exclude state support, but it should not concern organizations of specific (priority) activity spheres, but certain target groups from different sectors of the economy [6]. Such groups can be, for example, knowledge-intensive or export-oriented industries from different sectors of the economy. As for Russia, when implementing industrial policy, the features of the vertical model prevail here. This is manifested, in particular, in the reliance on large state corporations and vertically integrated entities to the detriment of public-private partnership. When choosing a particular set of industrial policy management tools, it is necessary to take into account the specific conditions in which the business as a whole and its individual parts are located. At the same time, world practice shows that there is a clear trend in industrial policy from strict measures to support industries and companies to the formation of favorable conditions for the functioning of a wide range of participants in the industrial market. Following this trend, the most important, some development directions of the industrial sector of Russia will be presented below.
3 Results The most important task of the domestic economy and its industrial sector is currently to include it in the modern world trends of technological development, to gain strong positions in the global markets of high-tech products. To do this, it is necessary to ensure the innovative development of domestic industrial enterprises is based on digital transformation and intellectualization of production processes, which is the essence of the well-known concept “Industry 4.0” [1]. Global manufacturers of industrial products invest more than 900 billion US dollars a year in the implementation of this concept [5]. As for Russia, the digitalization of the domestic industry is associated with significant difficulties related to the rather low level of technological and information development of the industrial enterprises, on the one hand, and the irrational structure of this sphere, on the other, a significant share of which is occupied by low-tech and environmentally unfavorable industries. The implementation of technological innovations requires a radical transformation of the production organization, the product lifecycle management system and the investment process. It becomes necessary to develop a new strategy for the development of enterprises and, as a result, innovative business models for the implementation of this strategy [14].
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Despite a certain lag in the Russian industry in the field of digitalization, some domestic companies successfully use certain elements of the above-mentioned “Industry 4.0” concept. Among them are Evrazholding (implemented 19 projects), ODK-Saturn (implemented components of the smart factory), PJSC Sibur Holding (implemented enterprise and business process management systems), Plus company (combined 210 pieces of equipment into a single circuit). Individual enterprises of the domestic metallurgy have notable successes in the digital transformation of their production and economic activities. In particular, PJSC GMK Norilsk Nickel is implementing a major program of digitalization of mining and metallurgical production based on the SAP S/4HANA platform [9]. PJSC Severstal is also moving to this platform. Digitalization also affected the main enterprises of Metalloinvest (Lebedinsky and Mikhailovsky mining and processing plants). However, the above examples are rather the exception than the rule. The majority of Russian industrial enterprises, as already noted, are not yet ready to fully implement the principles of the fourth industrial revolution in technological and financial terms. In the era of digitalization, the basis of the business model of an industrial company should be a technological platform based on a complex of permanent innovations of all network participants. At the same time, the corresponding technology is a set of methods and techniques aimed at achieving the target result in the field of production, marketing, sales, etc. [2]. The need for comprehensive cooperation and coordination of activities of participants in the innovation process seems to be urgent. The digital economy contributes to the emergence of new forms of such cooperation. One of these forms is innovation clusters, the relevance of which increases with the use of modern technological platforms, various information and communication tools. The innovative development vector of industrial clusters, especially noticeable recently, is determined by possibilities of digital transformation of almost all production and economic activities of any enterprise, access to information and communication technologies of products consumers of these enterprises. In developed countries, the formation of clusters in industry has led to the creation of a network organization of territories, which indicates the emergence of a new resource. In the USA, the competitiveness of its economy is provided by 24 groups of clusters with 318 territorial clusters, in Italy this is provided by 200 industrial districts, in Denmark – by 29 leading clusters [12]. In Russia, the processes of industry clustering began later than in developed countries. At the same time, to date, a number of regions of the Russian Federation have some experience in the formation and functioning of industrial clusters. In the European part of the territory of the Russian Federation, the production sector is quite actively clustering in the Samara Region and the Republic of Tatarstan. There are three basic clusters in the Samara Region: automotive, oil and gas and aerospace. In the future, the primary measure for all these clusters will be the R&D financing, as well as co-financing the purchase of licenses for the latest technologies. In the Republic of Tatarstan, clustering of national economy branches with the inclusion of enterprises in regional, country and global level programs has been chosen as a tool for the integrated development of the region. The relevant ministries of the republic, the center for cluster development, and cluster management companies are connected
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to the clustering processes. Within the framework of the relevant strategy, machinebuilding, construction and food clusters, clusters of construction technologies and materials, as well as manufacturers of medical instruments and medical equipment have been formed in the region. At the same time, the main condition for creating a cluster in a particular production area was a high level of cooperative relations between the cluster participants [10]. Traditionally, the Ural region is a major industrial center of Russia. It consists of three leading metallurgical plants of the country: Magnitogorsk, Chelyabinsk and Nizhny Tagil. The total share of these plants in the total volume of metal products produced in the Russian Federation is about 30%. However, despite such favorable circumstances (high concentration of production), the metallurgical cluster in this region is still in the formative stage. In the Siberian Federal District, there are some successfully operating structures: Barnaul Industrial chemical cluster of the Altai Territory (with the basic enterprises of LLC “Nortek”, LLC “Barnaul RTI”, etc.); Altai cluster of agricultural engineering; Omsk petrochemical industrial cluster; Omsk biocluster (the basic enterprise of LLC “Titan-Agro”). A characteristic feature of both existing and newly created clusters in the district is the high share of small enterprises in them (from 42 to 100%). Like any new direction of management development, the cluster approach requires a systematic study of the appropriate tools. First of all, this concerns the formation and further development of industrial clusters. Methodically justified creation and subsequent development of an industrial cluster should, in our opinion, be based on taking into account the following two groups of factors: – external factors: the region’s infrastructure, communications, investment climate, labor mentality and qualifications of the population, historical and cultural traditions, the degree of the production concentration, the proximity of educational institutions, suppliers and consumers of the region’s products, the presence of a technological chain, integration into international cooperative relations, the brand of the region in Russia and abroad, the subsidization level of the region, the readiness degree of local authorities to interact with business; – internal factors: the technical and technological level of the cluster participants, the availability and level of R&D, the system of training and qualification of personnel, information support, management system, logistics, marketing. The successful development of existing and newly created innovative industrial clusters can be ensured during the implementation of the following measures: – infrastructure development (transport, energy, engineering, creation of technoparks, business incubators); – support of educational and research structures, improving the efficiency of R&D; – professional development of personnel; – promoting the production, development and dissemination of knowledge; – support for small and medium-sized businesses; – improvement of the regulatory framework for the implementation of clustering processes;
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– promoting the export orientation of the cluster participants’ activities and import substitution processes. As noted above, the cluster allows you to include representatives of small and medium-sized businesses (SMEs) in the technological chain in addition to large businesses. Such inclusion helps to reduce the high monopolization of the Russian economy inherited from the USSR, which is a serious brake on the market development. Participants of small and medium-sized enterprises (SMEs) are able to quickly perceive, adapt and implement breakthrough technologies, conduct productive cooperation with large businesses, with scientific and educational institutions, with external partners and government agencies. They are the first to catch the rapidly changing preferences of consumers, adapting to their tastes and habits, and contribute to the competition development.
4 Discussion Russia still lags behind developed countries in the number of small and medium-sized businesses per inhabitant: three times from the United States, twice from the European Union and one and a half times from China. The contribution of this business to the country’s economy in the Russian Federation is also lower: 23% in 2019, in the UK this figure is 51, in Germany – 53, in Finland and the Netherlands – 60 and 63%, respectively. The main problem of small and medium-sized businesses is the lack of financial and credit resources, as well as tax conditions that do not take into account the specifics of this business. The high tax burden hinders the development of SMEs, pushes them to split up and go to the shadow sector. The development of small and medium-sized businesses is also hindered by the presence of various administrative obstacles related to business registration, rental of premises, obtaining certification, licenses, certain benefits, conditions for the production and sale of manufactured products, the quality of goods, etc. The SME is also obliged to pay for the relevant bureaucratic procedures. Organizations of small and medium-sized businesses are strained by a large number of inspections carried out by various authorities, as well as mandatory medical insurance premiums and contributions for the formation of their future pension, regardless of whether entrepreneurial activity brings income or not. The readiness of SME managers to conduct business, their financial literacy leaves much to be desired. President of the Russian Federation Vladimir Putin in his Message to the Federal Assembly in March 2019 said that the contribution of small and medium-sized businesses to the country’s GDP by 2025 should approach 40%, at the same time the number of people employed in this business will increase from 19 (in 2019) to 25 million people [8]. As measures to implement these installations, the state forms special tax regimes, extends supervisory holidays, provides preferential loans, subsidizes the purchase of equipment for expanding production, provides free participation of SMEs in fairs and exhibitions, provides free consulting support to the heads of these enterprises, provides preferential terms for renting land and premises. The development driver of small and medium-sized businesses can be the development of modern digital technologies - crowdsourcing, crowdfunding and freemium.
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These business models make it possible for SMEs to function without having their own IT infrastructure, software, warehouse facilities and even without material assets. This allows SMEs to participate more actively in the innovation process, making a significant contribution to the development of domestic industry and the economy as a whole.
5 Conclusion The domestic industrial sector, which accounts for about 30% of GDP, is the basis of the entire Russian economy. The competitiveness of the Russian Federation in the world market depends crucially on the results of the production and economic activities of this sector. The current state of the domestic industry is characterized by a number of problems, including a decrease in production volumes, high import dependence, a decrease in domestic demand for industrial products, and the inconsistency of the industrial policy pursued in the country. Further development of the industrial sphere of Russia should go in the direction of creating a high-performance export-oriented production, developing on the basis of modern information and communication technologies with a shift in emphasis from strict measures to support the industry and individual companies to the formation of favorable conditions for the functioning of a wide range of participants in the industrial market. It becomes necessary to develop new strategies for the development of the market subjects with the creation of innovative business models for the implementation of these strategies. In the era of digitalization, the basis of an industrial company’s business models should be a platform based on a complex of permanent innovations of all network participants. Innovation clusters are an effective form of relevant cooperation, providing regions with access to resources and advanced technologies, forming qualitatively new relations between business and the state, as well as contributing to the inclusion of small and medium-sized businesses in the technological chains.
References 1. Belov, V.V.: The new paradigm of industrial development in Germany-the strategy Industry 4.0. Contemp. Europe 5(71), 11–22 (2016) 2. Bout, R., Hicks, R.: Defining, conceptualizing and measuring the digital economy. Bull. Int. Organ. 13(2), 143–172 (2018) 3. Decree of the President of the Russian Federation of 07.05.2018 N 204 (as amended on 21.07.2020) “On national goals and strategic tasks of the development of the Russian Federation for the period up to 2024” (2020). http://www.consultant.ru/document/cons_doc_LAW_ 297432/. Accessed 22 Aug 2021 4. Federal Law “On industrial policy in the Russian Federation” dated December 31, 2014 N 488-FZ (last edition) (2014). http://www.consultant.ru/document/cons_doc_LAW_173119/. Accessed 22 Aug 2021 5. Ivanov, I., Afanas’ev, V., Chulanova, O.: Clustering as an effective tool for increasing the competitiveness of industrial enterprises. In: Mantulenko, V. (ed.) Global Challenges and Prospects of the Modern Economic Development. The European Proceedings of Social & Behavioural Sciences, vol. 57, pp. 274–282. European Publishing, London (2019) 6. Kuznetsov, D.A.: Formation of Russia’s industrial policy based on innovation priorities. Petersburg Econ. J. 1, 6–14 (2020)
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7. Litvinyuk, T.A.: The modern vector of development of industrial policy in Russia. Bull. Modern Res. 106(25), 179–182 (2018) 8. Message from the President to the Federal Assembly (2019). http://www.kremlin.ru/events/ president/news/62582. Accessed 22 Apr 2021 9. Nornickel Nornickel and SAP will create IT solutions for metallurgists in a joint laboratory (2019). https://www.nornickel.ru/news-and-media/press-releases-and-news/nornikeli-sap-budut-sozdavat-it-resheniya-dlya-metallurgov-v-sovmestnoy-laboratorii/. Accessed 22 Apr 2021 10. Sharipova, R.A.: Industrial clusters of the Republic of Tatarstan. Sci. Works Center Adv. Econ. Res. 12, 66–70 (2017) 11. Starostina, Y.: Rosstat assessed the first decline in Russian industry in 11 years (2020). https:// www.rbc.ru/economics/25/01/2021/600ed1789a79471706ae3352. Accessed 12 Dec 2020 12. Voskerichyan, R.O., Solovieva, Y.: Industrial clusters in Russia: Strategic and regional aspects. Innov. Econ. 1(10), 3 (2017) 13. Warwick, K.: Beyond industrial policy: Emerging issues and new trends (2013). http://dx. doi.org/https://doi.org/10.1787/5k4869clw0xp-en. Accessed 01 Feb 2021 14. Zozulya, D.M.: Digitalization of the Russian economy and industry 4.0: Challenges and prospects. Issues Innov. Econ. 8(1), 1–14 (2018)
Public-Private Partnership as a Management Tool in the Sphere of Culture in Russia S. V. Domnina1(B) , S. U. Salynina2 , and E. V. Savoskina3 1 Samara State University of Economics, Samara, Russia 2 Samara State Institute of Culture, Samara, Russia 3 Moscow State Construction University, Moscow, Russia
Abstract. The article defines public-private partnership (PPP) as a management tool for the sphere of culture in Russia. The principles of implementation of PPP were developed. The problems of implementation of PPP were analyzed in various aspects: theoretical, legislative, economic, organizational and managerial. The comparative analysis of foreign and Russian experience in implementing PPP in the management of the sphere of culture was conducted. The problems of implementation of PPP in the sphere of culture are the following ones: economic, legislative, political and specific. The dynamics of the market development of implemented projects in the field of culture, leisure, tourism and restoration of cultural heritage in Russia was analyzed. Organizational and management mechanism for the development of PPP in culture was developed. Keywords: Management tool for the sphere of culture · Organizational and management mechanism · Public-private partnership (PPP) · Principles of implementation of PPP · Problems of implementation of PPP · Sphere of culture
1 Introduction Today in Russia there are targeted programs aimed at the development of various types of cultural activities. However, the share of budget financing in the total volume of finance for cultural organizations is decreasing. According to the official data of Eurostat by the indicator of per capita spending on culture, Russia lags behind Norway almost eight times, France more than four times, and Germany 2.5 times [12]. The situation is complicated by the refusal of many enterprises to maintain their own cultural institutions and their transfer to municipal authorities, which occurs without allocation of financial resources for their support and functioning. Today, regional and municipal authorities in the sphere of culture in Russia are facing the problem of searching for innovative approaches to solve the tasks of managing this sphere in the region, choosing the most effective means of managerial influence that allow attracting alternative sources of financing of projects. One of such tools is the public-private partnership (PPP), the introduction of which in the management of the cultural sphere of the territory will enable: © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 187–195, 2022. https://doi.org/10.1007/978-3-030-94873-3_23
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– increasing the cultural potential, as well as the level of investment attractiveness of cities and regions, which will be facilitated by the growth of the total number of cultural institutions and their qualitative transformation, the increase of restored monuments and objects of cultural heritage; – to meet the growing needs of the population in the quantity and quality of cultural services, to ensure their diversity; – to reduce the burden on the territorial budget by private investment in sociocultural projects with a long-term perspective; – to optimize the system of management of cultural organizations and cultural objects; – to bring innovative technologies in the space of culture. Unfortunately, to date this tool for managing the sphere of culture is not used sufficiently and systemically in Russia.
2 Methodology The aim of the research is to reveal the problem of management in culture in Russia and to assess development prospects of PPP. To reach the goal the following research tasks are to be solved: – to characterize PPP as a complex management tool in the sphere of culture in Russia; – to carry out a comparative analysis of the problems of PPP in the cultural sphere in Russia and abroad; – to develop recommendations to improve the mechanism of PPP implementation in the sphere of culture of Russia. The object of the research is the process of cultural management in the Russian Federation. The subject is the PPP as a management tool in the sphere of culture. The research is based on methods aimed at achieving the goal: theoretical analysis of scientific literature, periodical press materials, methodological developments on the research topic; document analysis; statistical analysis. Scientific novelty of the research is a complex study of PPP as a management tool at different levels of knowledge: theoretical, legal, economic, organizational and managerial; comparative analysis of the PPP implementation problems in the sphere of culture in Russian and foreign practice; development of organizational and managerial mechanism of development strategy implementation of PPP in culture.
3 Results In accordance with the Strategy of the cultural policy of Russia until 2030, the priority managerial tasks of the cultural sphere are: – accessibility of cultural goods, creating conditions for comprehensive development, creative self-realization of the population; – development of social and cultural infrastructure of the region;
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– ensuring the preservation of the objects of cultural heritage, etc. [12]. The solution of these tasks requires a fundamentally different managerial approach. In recent years, such an innovative tool for managing the cultural sphere in the region as PPP becomes very popular. At first, we study the theoretical aspects of PPP implementation. The first attempt to give a definition of “public-private partnership” was undertaken by the UN Economic Commission. According to this the definition, PPP is interpreted as “a form of interaction between state structures and the private sector in order to implement major infrastructure projects, where the resources, benefits and opportunities of each participant are mutually complementary” [11]. According to Varnavskiy, this concept has its roots in the English term “public-private partnership”, which is interpreted as a generalizing subject of public power, including, on the one hand, all levels of government and public institutions, on the other hand, commercial structures [13]. Despite the difference in these definitions, they have one thing in common: they all consider PPP as partnership relations between the state and business structures, which are aimed at large-scale projects which are beneficial for both parties and are based on certain principles. In our opinion, PPP is a management tool aimed at the development of sociocultural infrastructure by increasing the financial capabilities of cultural institutions at the expense of business structures on the principles of incentives, guarantees, responsibility, transparency, feedback, equality of partners, competition, object efficiency in the sphere of culture, redistribution of risks. Studying the problem of PPP development, it is necessary to determine the basic management principles of this process. We believe that PPP should be based on the following principles: incentives, guarantees, responsibility, transparency, feedback, partners equality, competition, object efficiencyin the sphere of culture, redistribution of risks. In the collection “Public-Private Partnership in the Sphere of Culture”, projects that were implemented with PPP mechanisms are highlighted. Basically, such projects are associated with long-term investments in budget institutions, state property objects on the basis of concession agreements; investment and development projects, projects in the creative industries; systemic socio-cultural projects, implemented on the leased premises with the support of authorities; event projects, implemented on a commercial basis with the participation of public authorities; sponsorship projects [7]. Secondly, we study the legislative aspects of PPP implementation Analysis showed the availability of such legislative acts in the Russia: Also at the federal level the exemplary forms of concession agreements in relation to cultural, sports, recreation and tourism facilities and other socio-cultural facilities are established. The implementation of partnership relations in the form of a concession agreement is the most applicable to develop socio-cultural sphere. This is due to the fact that not all cultural objects can be transferred to private ownership. First of all, this applies to monuments of cultural heritage of regional and federal importance, which are legally protected by the state. The fact that concession agreements are the most frequent form
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of partnership relations (after leasing with investment obligations) is evidenced by the data of the National Center of PPP “Rosinfra”. The main forms of attracting investors in the sphere of culture are: – – – – – –
lease (gratuitous use) agreement with investment obligations - 50 projects; concession agreements - 36 projects; PPP/MPP agreement (regional legislation) - 3 projects; investment agreement (agreement) - 9 projects; corporate form of partnership (joint venture) - 1 project; life cycle contract or long-term state/municipal contract with an investment component - 1 project [10]. – It should be pointed out that PPP forms differ in terms of duration, requirements for the private partner, ownership rights. In general, today there is a fairly extensive regulatory framework in the sphere of PPP, allowing the PPP implementation in the cultural sphere of the Russian Federation. However, for certain projects it has to be necessary to expand the legal framework, or to clarify certain positions in the legal acts. This refers mainly to the objects of cultural heritage. Analysis of the economic component of the PPP market in the sphere of culture, leisure, tourism and restoration of the cultural heritage objects resulted in the following figures: the total number of projects - 98, which is 2.8% of all PPP projects. The main characteristics of PPP projects in projects in culture, leisure in Russia from 2006 to 2020 (Table 1) are presented. Table 1. The market of PPP projects in culture, leisure, tourism and restoration of cultural heritage in Russia Level
The number of projects
Total volume of investments, bl. rub
Total volume of private investments, bl. rub
Regional
27
4,05
4,02
Municipal
71
3,79
3,54
Total in the sphere of culture
98
7,84
7,56
Total PPP projects in the 3 515 RF
147,43
129,15
Source: authors based on [10]
At the same time since 2006 there is positive dynamics in the number of PPP projects in the sphere of culture (Table 2).
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Table 2. Dynamics of the number of PPP projects in culture, leisure, tourism and restoration of cultural heritage in Russia Year
Number of projects
Total volume of investments in PPP projects, bl. rub
Year
Number of projects
Total volume of investments in PPP projects, bl. rub
2006
1
0,05
2014
3
0,39
2007
1
0,04
2015
16
0,83
2008
2
0,07
2016
13
0,74
2009
1
0,03
2017
23
1,52
2010
2
0,08
2018
18
2,34
2011
5
0,81
2019
13
0,65
2012
3
0,15
2020
4
0,53
2013
5
0,48
2021
6
0,95
Source: authors based on [10]
Obviously, the number of such projects has increased since 2006, only the crisis of 2018 and the pandemic of 2020 had a negative impact on the volume of investment in the cultural sphere. Advantages of PPP for a private investor are: the opportunity to invest into a long-term project with a fixed profitability under state guarantees; to increase overall business profitability by providing additional paid services, reducing costs, increasing productivity and innovations; to receive state assets for long-term possession and use; to have guarantees of return on investment, thereby transferring a part of risks to the state. The following advantages of PPP can be highlighted for territorial authorities: in the conditions of significant budget deficit the regional authority receives new sources of investment; efficient cooperation is provided due to a higher level of socio-cultural services to the population; the risks associated with overpricing and market competition development in key social services are reduced, as well as implementing projects takes less time. Thus, the PPP introduction in the sphere of culture can increase management efficiency by expanding the framework of the established budgetary appropriations and increasing the material capabilities of cultural institutions on the principles of co-financing. Further, we have made a list of necessary organizational and managerial measures to solve the main problems of PPP’sprojects implementation in the sphere of culture (Fig. 1). This multilevel approach facilitates to eliminate negative factors interfering the PPP implementation in culture of Russia, to minimize risks, and the procedure for attracting investors will be accelerated.
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Improvement of the process of PPP implemenng in culture HR Recourses management
Operang environment Infrastructure
Improving the interacon process with the federal government, local government and business Instuonal security and organizaon of fulfillment of partners' obligaons Managerial methods Improvement of instuonal support for PPP development Improvement of management mechanism
Improvement of the quality system at all stages of PPP implementaon
Output: sasfacon with the level and quality of PPP development in culture
Inputs: requirements for the level and quality of PPP by partners
Partners' assessment of PPP development in culture
Validaon, verificaon Monitoring the results of PPP implementaon in culture
prevenve acons
Correcve acons
Management of discrepancy
Partners' efficiency of PPP parcipaon
Improvements Data analysis
Measurement and Monitoring
Fig. 1. Organizational and managerial mechanism of PPP development strategy implementation in the cultural sphere (Source: authors).
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4 Discussion PPP implementation solves the problems of financing major socio-cultural projects, attracting highly competent specialists to their implementation, increasing social activity of business structures. The PPP implementation in the socio-cultural sphere was considered in the studies of foreign authors. They highlight the following problems of PPP implementation: – making PPP contracts, changing relations between business and government [8]; – the order of risks and profits distribution from PPP investments [2]; and risk management issues [1]; – tensions and contradictory views between [5]; – insufficient knowledge about PPP for sustainable development of geotourism and geoheritagetrends [4]; – gaps in knowledge on the research of the partnership life cycle [9]. The following issues of PPP implementation in the sphere of culture are outlined in the studies of Russian scientists: insufficient legislation adaptation, lack of experience, professional competences and successful practices [3]; underestimation of the role of social institutions as the intermediaries between the state and private sector [6]; lack of success factors development. The Russian and foreign studies on the issues of PPP implementation in the sphere of culture were analyzed, the histogram of the problems of PPP implementation in the cultural sphere can be built (Fig. 2). 9
9
25
9
Political factors
16
Economic factors 16 66
Specific factors Legislative factors
50
а) in research by Russian authors b) in research by foreign authors Fig. 2. Distribution of the problems of PPP implementation in the cultural sphere (%) (Source: authors).
Therefore in foreign countries certain legislative base for the projects in culture is developed, therefore the specific and legislative problems take the last place. In Russia, on the contrary, the specific and political problems are the most complicated for PPP implementation in the cultural sphere development. In the above-mentioned works PPP is not considered as the most important development tool of cultural sphere from the position of complex approach and taking into account various components of PPP. This aspect is considered in detail in this article.
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5 Conclusion Today, the development of culture in the Russian Federation faces a lot of problems associated with funding reduction, low level of provision of the population with the objects of socio-cultural infrastructure, with the lack of accessibility of cultural goods for the population living in this or that territory. Appropriate management tools, among which public-private partnership is the most a significant one, facilitate solving the above-mentioned problems. The public-private partnership as a management tool in the socio-cultural sphere of the region is beneficial for all participants of the project. The analysis of Russian and foreign experience in PPP implementation in the management of the cultural sphere of the regions allowed identifying the most typical problems that the territorial administration bodies face. These are economic, political, legislative and specific problems that need to be focused by public administration authorities and measures to eliminate them have to be elaborated. The management mechanism has to be organized to develop PPP forms, which includes economic, institutional and legal aspects. Therefore, the study has developed and presented the mechanism of management strategy for PPP development in the sphere of culture.
References 1. Keers, B.M.,van Fenema, P.: Managing risks in public-private partnership formation projects. Int. J. Project Manage. 36(6), 861–875 (2018) 2. Fleta-Asín, J., Muñoz, F.: How does risk transference to private partner impact on publicprivate partnerships’ success? Empirical evidence from developing economies. Socio-Econ. Plann. Sci. 72, 100869 (2020) 3. Gorbatovskaya, E.S.: Legal bases and practice of mechanisms application of the state-private partnership in the sphere of culture. In: Proceedings of the XII International ScientificPractical Conference Law and Economy: Interdisciplinary Approaches in Science and Education, pp. 41–46. Kutafin University, Moscow (2017) 4. Halder, S., Sarda, R.: Promoting Intangible cultural heritage (ICH) tourism: Strategy for socioeconomic development of snake charmers (India) through geoeducation, geotourism and geoconservation. Int. J. Geoheritage Parks 9(2), 212–232 (2021) 5. Laplane, A., Mazzucato, M.: Socializing the risks and rewards of public investments: Economic, policy, and legal issues. Res. Policy X, 2, 100008 (2020) 6. Marques, I.I., Remington, T., Bazavliuk, V.: Encouraging skill development: evidence from public-private partnerships in education in Russia’s regions. Eur. J. Political Econ. 63, 101888 (2020) 7. Ministry of Culture of the Russian Federation: Public-private partnership in the sphere of culture: successful projects of Russian regions. https://culture.gov.ru/documents/sbornikgosudarstvenno-chastnoe-partnerstvo-v-sfere-kultury-uspeshnye-proekty-regionov-rossii. Accessed 24 Mar 2021 (2021) 8. Nash, R.: Contracting issues at the intersection of the public and private sectors: new data and new insights. J. Corporate Financ. 42, 357–366 (2017) 9. Pilving, T., Kull, T., Suškevics, M., Viira, A.H.: The tourism partnership life cycle in Estonia: striving towards sustainable multisectoral rural tourism collaboration. Tourism Manage. Perspectives 31, 219–230 (2019)
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10. Rosinfra: Market of PPP projects in Russia. https://rosinfra.ru/digest/market. Accessed 24 Mar 2021 (2021) 11. Savchenko, I.I.: PPP in Russia: the current state and problems of development. Proc. Far Eastern Federal Univ. Ser. Econ. Manage. 1, 99–112 (2015) 12. The strategy of the state cultural policy until 2030 (approved by the Decree of the Government of the Russian Federation of 29.02.2016 N 326-r). https://culture.gov.ru/documents/strate giya-gosudarstvennoy-kulturnoy-politiki-do-2030-g-utverzhdena-rasporyazheniem-pravit elstva-rf-/. Accessed 24 Mar 2021 13. Varnavskii, V.G., Klimenko, A.V., Korolev, V.A.: Public-Private Partnership, Theory and Practice. HSE Publishing House, Moscow (2010)
The State and Prospects for the Development of Forensic Environmental Expertise Digitalization E. I. Mayorova and S. E. Titor(B) State University of Management, Moscow, Russia
Abstract. Forensic environmental expertise is one of the mechanisms that contribute to the protection of nature in Russia. The use of such a promising research tool as Big Data (hereinafter referred to as DB) is intended to contribute to improving the quality of forensic environmental research. The purpose of this work is to study the interaction of new technologies and human resources during environmental assessment. As a result of the study, the authors came to the conclusion: the expansion of the use of IoT technology can lead to revolutionary changes in the production of forensic environmental examinations. The activity of an environmental expert cannot be reduced to the role of an operator. The analysis of specific and variable biological communities requires human evaluation for a long time. This expands the range of requirements for the professional training of an environmental expert. A modern expert, along with having special knowledge, should be able to work with computer programs and applications, use digital methods of data processing, apply technological achievements in a legal way. The methodological basis of the study was materials of the practice generalization in the field of forensic environmental expertise by expert institutions of the Ministry of Justice of Russia. Keywords: Big Data · Digitalization · Environmental crimes · Forensic environmental expertise · State environmental monitoring
1 Introduction The development of all branches of the economy in many cases leads to a violation of the balance of fragile and vulnerable ecological systems. Such phenomena as expanded urbanization and intensification of the extractive industry have a downside: the destruction of natural landscapes, deforestation, depletion and pollution of water resources. If these costs of civilization can be partially justified by the achievement of national economic goals, then criminal encroachments on the state of the environment are unacceptable [12]. Environmental crimes are classified as criminally punishable acts. The use of the definition of “environmental” in the qualification of crimes involves the use of environmental data, a complex interdisciplinary branch of knowledge, vaguely differentiated into independent sections. Each of them has its own terminology and is based on © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 196–203, 2022. https://doi.org/10.1007/978-3-030-94873-3_24
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specific methods of studying objects. Persons conducting an inquiry, investigators and judges are not required to have such knowledge. Therefore, for about 20 years, forensic investigative practice has been based on data provided by forensic environmental expertise (hereinafter referred to as FEE). State judicial and environmental activities are understood as providing assistance to courts, bodies of inquiry, investigation in establishing the circumstances that are subject to proof in a particular case, by resolving issues that require special knowledge in the field of science, technology, art and craft. Forensic environmental expertise is understood as procedural actions of persons with special knowledge in the field of ecology, related environmental, technical, economic sciences, who give a conclusion reflecting the course and results of the study of anthropogenic impact on environmental objects [7]. Digital technologies, which open up new opportunities in its development, influence the development and improvement of the FEE.
2 Methodology In order to establish the spread of the digitalization of the FEE, the authors applied the methodology of analysis and generalization of expert practice in the production of forensic environmental studies. An interdisciplinary approach was used which allowed expanding the traditional framework of expert generalization. The methodology was used as a system of methods, techniques and tools used in forensic examination within its subject area. 103 expert opinions of the FEE laboratory of the Russian Federal Center for Forensic Expertise under the Ministry of Justice of the Russian Federation (hereinafter referred to as the RFCFEE) and 18 expert opinions of the system of expert institutions (hereinafter referred to as the SEI of the Ministry of Justice of the Russian Federation) were studied. In total, 121 expert production facilities were investigated for the period from 2017 to 2021. This number is considered as representative for the expert practice. In 23 conclusions of the RFCFEE and in 3 conclusions of the SEI, Big Data elements were used to some extent. In 19 expert productions, as the study showed, the use of digital technologies was appropriate. The analysis of the combination of attitudes and principles of natural science, humanities and exact sciences used in the conclusions allows us to speak about the trend of the transition of expert activity to a fundamentally new level. This indicates the prospect of building a new paradigm of expert research, characteristic of the current development stage of forensic examination. As the most important postulate of the rationalistic methodology, the principle of validity and objectivity of the expert’s conclusions was taken into account. Along with the above, general scientific methods of cognition were used in the work: analysis, synthesis, generalization. The empirical approach allowed us to correlate practice and scientific research in the considered field.
3 Results The effectiveness of the fight against environmental crime is determined not only by the experience and qualifications of the relevant departments or specialists, but also by the volume of information identified in the process of environmental expert research, which is supplied by various, including digital, traces of crime. They are not always explicit,
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but their value is exceptionally high. In this regard, the development of computer technologies in the production of FEE is a necessary and mandatory management tool [1, 9, 14]. The forecast of scientific and technological development of the Russian Federation, approved by the government, determines the development priorities, in particular, information and communication technologies, life sciences, rational environmental management. In order to improve criminal proceedings in the environmental sphere, forensic environmental studies are equipped with such a promising research tool as Big Data (the so-called “big or complex data”). In fact, it is a mechanism for finding and fixing a significant amount of data: heterogeneous arrays belonging to adjacent branches of science, presented and decorated in different ways, systematized to varying degrees. The necessary information comes from various, constantly updated sources, is crossed and rechecked, which contributes to the truth of the experts’ conclusions [2]. In the practice of FEE production, in order to achieve optimal results, most external and internal communications are increasingly carried out using online technologies. The use of the database is optimal for obtaining a working hypothesis about the causes of an unfavorable environmental situation: degradation, oppression (death) of biological objects in a specific territory [8]. With the help of a database, the combination of known data makes it possible to predict the desired unknown. Big Data methods are used to analyze large, continuously increasing amounts of information provided by state environmental monitoring (or environmental monitoring), which was established in the first decade of the 21st century. The tasks of the unified state environmental monitoring system are: – regular monitoring of the state of the environment; – including monitoring of components of the natural environment, natural ecological systems; – observation of the processes, phenomena, and changes taking place in them; – storage, processing, generalization, systematization of information about the state of the environment; – analysis of the received information in order to timely identify changes in the state of the environment under the influence of various factors; – assessment and forecast of these changes; – providing interested persons with information about the state of the environment. It is obvious that the array of generalized and systematized spatial data is a rich source of information for environmental experts, contributing to improving the quality and reliability of conclusions about the causes, scale and reversibility of negative impacts on environmental objects. In particular, the expert study of urban environment objects uses the analysis of geospatial information of an ecological nature, information and analytical data on the state of all urban territories and life support systems [11]. The method of remote sensing of the Earth with the help of global navigation satellite and geoinformation systems GLONASS, Rapid Eye satellites, CORINE Land Rover entered the practice of conducting forensic examinations almost a decade ago. A number of researchers believe that the experience of using satellite images (photos of the
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Earth from space) in forensic examinations shows that the images, along with an understandable illustrative function, carry a huge array of information that can be expressed both in measuring the metric indicators of the considered object, and in determining its qualitative and quantitative indicators, and their changes over time [3, 15]. As a rule, in the framework of criminal, civil and administrative proceedings, in order to answer the questions posed by the investigation or the court about the consequences of the harmful impact of economic activity on specific natural objects, to establish a causal relationship of the elements of the incident, an expert examination of the scene of the incident is required [6] Various changes of objects of biological origin are visually noted and photographed, their organoleptic features are recorded, the parameters of the affected areas are measured, and also a comparison with the standard is carried out (the state of the territories not affected by the impact). Often, the research site is located in a remote or hard-to-reach place, which complicates the observation, reduces its accuracy and increases the examination time. The introduction of remote sensing into expert practice made it possible, on the one hand, to reduce the number of field surveys, and on the other, to increase their accuracy. The influence of climatic and weather factors has also ceased to radically determine the timing of the FEE production. Remote sensing allows you to determine the physical dimensions of damage to environmental objects caused by extractive industries, in particular, to track oil spills, fuel and lubricants, etc. So, with the help of satellite images in the first days of the accident at the thermal power plant, owned by PJSC GMK Norilsk Nickel, it was possible to track the leakage of diesel fuel into the Ambarnaya and Daldykan rivers, into all their tributaries, as well as partially into Lake Pyasino and the river of the same name, which flows out of the lake. At the same time, the information array is analyzed by specialized computer programs that decode digital images of the surface, regardless of the type of aircraft. The analysis of computer images of the surface of the studied territory, obtained with the help of specialized artificial Earth satellites, is gradually entering the practice of FEE. The data of decoding digital images are used in the study of changes in landscapes under the influence of anthropogenic factors, the impact of economic activity gives the expert extremely important information. For example, man-made violations of land: the overlap of the soil horizon, etc.; destruction of vegetation cover: illegal logging, the spread of forest fires, etc.; water bodies: changing the watercourse bed, draining untreated wastewater, etc. [13]. The analysis of satellite images is especially in demand when solving retrospective problems of FEE. The expert, having studied the images using software products created for analytical processing of remote sensing data (for example, ArcGIS, ERDAS Imagine, MapInfo, SAGA, Q-GIS), gets a powerful tool for analyzing the structure, composition and properties of the Earth’s surface [10], which makes it possible to establish what the state of the studied area was a certain period of time ago. At the next stages of expert research, the use of a database makes available arbitrarily large geographically remote arrays of information, which significantly reduces the time of the analysis currently being carried out. It is also important that access to information resources is provided to an environmental expert on the same basis as other open access materials – GOST
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standards, research reports, thereby documenting, if necessary, using a blockchain built on the principle of decentralization, the negative changes that have occurred are recorded. Any forensic environmental study can be represented as a sequential process of solving subtasks, as a result of which the expert gradually deepens and details the knowledge about the analyzed object, increases the volume of the identified characteristics. These information and specific features are mainly of an applied nature, but in some cases they can enrich the fundamental science – biology. Gradually, a new information array is created in the process of solving FEE tasks. Traditional types of characteristics are structured and can be immediately stored in a relational database. This information is often in demand in the future, when assigning standard FEEs. When producing FEEs, the expert may need separate information that affects its subject, but is not taken into account by state monitoring (for example, maximum permissible concentration, maximum permissible reset of harmful substances in various environments, maximum permissible norms for the withdrawal of natural resources, special characteristics of the studied objects, such as, for example, belonging to species listed in the Red Book, etc.). The calculation of compensation for damage to the environment is one of the most common tasks of the FEE, the comparison of previously acquired and previously available (before anthropogenic impact) indicators of the studied community provides the information necessary for calculating the damage caused to the environment (OS). This procedure is carried out using special methods: expert, departmental, allRussian, regional. Every year their number increases, which requires accounting and systematization to choose the optimal option in each specific case. In the context of an increase in the volume of departmental information, the problems of transition to innovative methods, storage of the obtained data become particularly relevant, which contributes to the formation of the concept of a central data warehouse for organizations. At the same time, the issue of information security also arises: the electronic form of data storage can put them at risk of loss because of technical failures of equipment and other force majeure circumstances. Optimization of analysis methods helps to identify an increasing number of set parameters, which in turn requires increasing the accuracy of their assessment (Table 1). Table 1. The use of digital methods at the stages of FEE production Stages of FEE production
Digital technologies usage
Inspection of the scene of the accident
BD (images from space, remote sensing)
Research part
BD (broadband Internet, blockchain)
Synthesizing part
BD (comparison and comparison), AI
Conclusions
BD (new knowledge formation)
Source: authors
It may seem that in the context of improving information and communication technologies, the role of an expert will be reduced to the role of an operator. But technologies cannot fully determine the legally significant decisions of the subject of law enforcement.
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Nevertheless, on the one hand, reducing the time required to perform certain operations with biological objects, and improving the quality of research due to an increase in the volume of used data, on the other hand, are factors contributing to increasing the reliability of the FEE conclusions. At the same time, it should be emphasized that the specificity and variability of biological communities will require an assessment of organoleptic features with the vision, smell, hearing, touch, etc. for a long time, that is, with a human assessment. It is not easy for environmental experts with a basic biological education to restructure and stop considering biology only as a fundamental science that identifies and studies the laws of nature development, looking for ways to apply them in practice, foreseeing the nature of future changes. The rationalism of the modern approach to biology is the result of generalized communication characteristic of the modern information society, which considers science in a utilitarian aspect as a source of economic efficiency [5, 7]. It is the possibility of combining descriptivity (descriptiveness) and modern digital technologies for processing the identified morphological, anatomical, structural, and others features of the object makes biology (the science of living organisms) a very promising branch of knowledge. The descriptivity of biology feeds the prognostic direction of research and does not cease to be the basis of the FEE. The purpose of high technologies is to serve as a special expert tool that allows him to generate legally significant conclusions, taking into account the analysis of a wide range of information provided by these technologies.
4 Discussion For a long time, acute discussions about the priority of biological and legal knowledge in the process of expert research and the formation of conclusions have not stopped in the theory of FEE. In the era of the fourth industrial revolution, digitalization with its formalization is gradually taking a strong position in expert activity along with law and other basic sciences. For FEEs, the objects of which are characterized by certainty and at the same time variability, digital transformation opens up broad prospects and causes the need to use new analysis tools and appropriate skills (operational, formal, informational, and communication). Today’s realities require the adaptation of biological knowledge to new technologies, methods of their organization, the creation of modern development programs and the development of new theories and progressive ideas based on them. This expands the range of requirements for the professional training of an environmental expert. The competence of a modern expert, along with special knowledge, should include the ability to work with computer programs and applications, the ability to use digital methods of data processing, enter into a dialogue with artificial intelligence, refract the obtained research results using digital technologies to formulate conclusions in a legal manner [4]. Most likely, these requirements will be implemented in the process of obtaining secondary and specialized higher education, and the improvement of skills is possible in the process of professional retraining, as well as self-improvement, since progress in computerization provides round-the-clock direct access to the necessary information.
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5 Conclusion As a result of the conducted research, the following conclusions can be drawn: 1. Legal science and practice currently widely use information and communication technologies. Their application in the FEE is natural and relevant, since this section of expert research requires the analysis of a large array of multidirectional data. 2. In the practice of FEE, such sections of the database as operations with environmental monitoring materials, remote sensing of the Earth, analysis of satellite images have already found application optimizing and simplifying the process of expert research. 3. The formation of a large volume of applied information allows us to raise the question of the organization of a departmental relational database. 4. IoT technologies cannot fully determine the legally significant decisions of the subject of law enforcement. The specificity and variability of biological communities will require the use of human assessment and intuition for a long time.
References 1. Briukhanov, A., Vasilev, E., Kozlova, N., Shalavina, E., Subbotin, I., Lukin, S.: Environmental assessment of livestock farms in the context of bat system introduction in Russia. J. Environ. Manage. 246, 283–288 (2019) 2. Channov, S.E.: Big data in public administration: opportunities and threats. J. Russian Law 10(262), 111–122 (2019) 3. Frumin, G.T., Demeshkin, A.S.: Environmental and toxicological assessment of the quality of water in the lake Bienda-Stemme (Western Spitsdergen). Russ. J. Gen. Chem. 90, 13 (2020) 4. Geger, E., Podvesovskii, A., Mikhaleva, O., Korsakov, A.: Intelligent analysis the ecological state of environvent with application of distributed experitise (On the example of Brynsk Region) (2020). http://ceur-ws.org/Vol-2744/paper77.pdf. Accessed 23 Apr 2021 5. Liu, D., Wang, J., Yu, H., Gao, H., Xu, W.: Evaluating ecological risks and tracking potential factors influencing heavy metals in sediments in an urban river. Environ. Sci. Europe 33(1), 1–13 (2021). https://doi.org/10.1186/s12302-021-00487-x 6. Mayorova, E.I.: Forensic Environmental Expertise. INFRA-M, Moscow (2020) 7. Miljan, S.M., et al.: environmental assessment of greenhouse gases emission from sheep breeding in Vojvodina region of Serbia. Acta Veterinaria 70(4), 484–496 (2020) 8. Nielsen, A., et al.: Introducing QWET - a QGIS-plugin for application, evaluation and experimentation with the WET model. Environ. Modelling Softw. 135, 104886 (2021) 9. Rossinskaya, E.R., Galyashina, E.I.: The judge’s desk book. Forensic examination: Theory and practice, typical issues and non-standard situations: Forensic expert institutions, the appointment of expertise in court, typical expert errors, expert opinion, the procedure for conducting examinations. Moscow: Prospect. (2010) 10. Rozov, S., Kutuzova, N.D., Bolysheva, T.N.: Experience of applying remote sensing earth data in environmental forensics. Theory Practice Forensic Sci. 14(1), 56–65 (2019) 11. Sorokin, A.V., Mikhailov, M.I., Fomin, S.V., Muzalevsky, K.V.: Development of methods for using the signals of global navigation satellite systems in environmental monitoring. Reshetnikovsky Readings 1, 310–312 (2015) 12. Spaniol, O., Bergheim, M., Dawick, J., Wheeler, J., Willing, A.: Comparing the European Union system for the evaluation of substances (EUSES) environmental exposure calculations with monitoring data for alkyl sulphate surfactants. Environ. Sci. Europe 33(1), 3 (2021)
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13. Wang, K., Yang, P., L., W.-S., Zhu, L.-Y., Yu, G.-M.: Current status and development trend of UAV remote sensing applications in the mining industry. Gongcheng Kexue Xuebao 42(9), 1085–1095 (2020) 14. Yoshioka, H., Tsujimura, M., Hamagami, K., Yoshioka, Y.: A simple stochastic process model for river environmental assessment under uncertainty. In: Krzhizhanovskaya, V.V., Závodszky, G., Lees, M.H., Dongarra, J.J., Sloot, P.M.A., Brissos, S., Teixeira, J. (eds.) ICCS 2020. LNCS, vol. 12143, pp. 494–507. Springer, Cham (2020). https://doi.org/10.1007/978-3-030-504366_36 15. Zimin, M.V., Girdo, E.A.: The use of the DDZ of the Land in forensic examinations. Earth Outer Space 1(17), 63–69 (2013)
Constitutional Right to Health Protection in the Context of Artificial Intelligence Development M. A. Lipchanskaya(B) , T. N. Balashova, and E. V. Maslennikova State University of Management, Moscow, Russia [email protected], [email protected]
Abstract. The contribution analyzes the transformation of the content of the constitutional law, identifies the main directions of the introduction of artificial intelligence in the field of healthcare to protect health in the context of the pandemic2020, and formulates some problems of using program-targeted methods in public health management in the digital economy. The research purpose is to identify specific features of legal regulation of the implementation of the constitutional right to health protection in the context of the development of artificial intelligence systems. To achieve this goal, the methods of a systematic approach, dialectical interdependence, behaviorism and political hermeneutics were used in the study. It is shown that the right to health protection among the basic social rights of a person and a citizen primarily reflects the introduction of technological information systems. It is confirmed that the unprecedented development of AI systems and technologies in the healthcare sector is determined by forced measures to find solutions that ensure the public safety and protect the health of the nation in the context of a pandemic of a new coronavirus infection. Keywords: Artificial intelligence · Constitutional right to health protection · Coronavirus pandemic · Digital economy · National projects · Public health management
1 Introduction In his annual Address to the Federal Assembly on April 21, 2021, the President of the Russian Federation paid special attention to protecting the health of the nation as a whole and each Russian citizen individually [16]. Of course, ensuring the constitutional right to health protection and medical care in the context of the global coronavirus-19 pandemic and the rapid development of artificial intelligence systems and technologies is of particular importance. The modern trend of ensuring the national security of the Russian Federation is the strengthening of public health, the creation of a comfortable environment for the individual, including in the information and communication space, as well as the development of the national health system by public authorities in cooperation with civil society institutions in the context of digital transformation. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 204–212, 2022. https://doi.org/10.1007/978-3-030-94873-3_25
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The problem of legal regulation of relations in the field of public health protection in Russia is caused, in particular, by the lack of well-founded scientific works that would cover the entire spectrum of legal regulation of human rights in the field of health protection under the conditions of using artificial intelligence systems and technologies, as well as develop new approaches to determining the rights of patients, their normative consolidation and ways to solve the problem of the implementation and protection of these rights in such a situation. A significant number of difficulties arise because of the insufficient legal culture and awareness of citizens about their rights, as well as insufficient regulation of the rights and obligations of medical personnel. The situation is aggravated by the large-scale operational introduction and use of the latest technologies in the healthcare sector, which require adequate legal regulation and the definition of a state strategy for the development of healthcare in the digital economy as a whole. Of course, the domestic healthcare system integrates the achievements of information technologies and digitalization, striving to ensure a barrier-free environment and high-quality implementation of human rights to health protection and medical care. Of course, in the conditions of the digital economy and the introduction of artificial intelligence technologies, not only the process of implementing basic human rights is being transformed, but also their well-established content is changing, new powers are emerging or existing “digital” specifics are being supplemented. In this study, an attempt is made to analyze the legal regulation and features of the implementation of the constitutional right to health protection in the conditions of information and digital reality and the development of AI technologies.
2 Methodology The methodological basis of the study includes the dialectical-materialistic method, as well as the most important general methodological principles and methods of cognition of social reality. The paper analyzes problems of implementing the right to health protection in the context of the development of artificial intelligence in contemporary Russia. The use of systemic and structural-functional methods helped to identify trends and assess prospects for the implementation of the constitutional right to health protection in the conditions of information and digital reality and the use of artificial intelligence. The work is carried out in accordance with the principles of a systematic approach, dialectical interdependence, behaviorism and political hermeneutics. To solve the problem set in the study, a complex of such complementary scientific methods was used, such as: system and socio-cultural analysis, structural and functional method, analysis of documents and sources, interdisciplinary analysis.
3 Results Ensuring human rights and freedoms in the state occurs, first of all, through the adoption of appropriate laws that determine what rights and in what sphere of public relations every citizen has. Currently, Federal Law No. 323-FZ [6] is in force in Russia, which, along with the Constitution of the Russian Federation and other legislative acts, establishes the basic principles of providing affordable and high-quality medical care to citizens of
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the country regardless of gender, age, nationality, condition, property status, place of residence, beliefs and other circumstances. However, taking into account the historical development of the right to health, it can be noted that the normative consolidation of this right arose relatively recently – in the middle of the XX century. Thus, the European constitutions of the XVIII-XIX centuries did not mention the right to health at all, despite the fact that other human rights were proclaimed [19]. In modern law, the right to health is the highest inalienable good of every person. In turn, the protection of the health of citizens in accordance with Art. 2 of Federal Law No. 323-FZ is a system of measures aimed at preserving and strengthening the physical and mental health of every person, providing him with high-quality medical care [6]. Today, there are quite a lot of reasons for classifying the rights of citizens to health protection [19]. The most in-depth analysis of the content of the right to health protection, in our opinion, is possible when studying the classification of such rights depending on their consolidation in legislative acts. This classification enables a more complete and comprehensive study of the implementation scope of the considered right. Within the framework of this classification, three main groups of rights in the field of health protection can be distinguished: – the rights enshrined in the Constitution of the Russian Federation and representing the fundamental principles underlying the construction of the Russian healthcare system, ensuring the safety of citizens and their exercise of the right to health protection; – the rights provided for by international legal acts and representing the basic international principles used by states to build internal, consistent with the world legislation in the field of protection of the relevant rights of citizens; – the rights provided by specialized regulatory legal acts, which are granted to everyone who needs medical care, endow the bearer of such a right with the status of “patient”. Thus, everyone has the right to health, which is determined by the list of patients’ rights, detailed in specialized regulatory legal acts. The constitutional right to health protection is complex and includes a number of powers, assumes the adoption of measures by the state for the development of all health systems. In the context of a pandemic, this right is of particular importance. The global scale of the fight against the COVID-19 pandemic has provoked the rapid development of medical digital technologies and artificial intelligence (AI) systems in modern healthcare [4], which need adequate management and legal regulation. The analysis of the introduction of AI technologies into the healthcare system in the context of the 2020 pandemic allows us to identify several key areas where artificial intelligence was most in demand [12]. These are primarily the following areas: – monitoring of locations and predicting the speed of virus spread; – support of medical research on the development of medicines and innovative methods of treatment; – detection and diagnosis of the virus, as well as prediction of its evolution; – stopping the rate of virus spread through movement control and contact monitoring; – responding to a crisis with personalized information and training; – remote monitoring of human recovery and optimization of prevention methods [8].
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It is easy to note that artificial intelligence is used in the healthcare system in order to combat the pandemic in quite different directions. At the same time, there are three main application areas of artificial intelligence systems in the conditions of a pandemic: the first is screening and diagnosis of the disease, the second is the development of medicines and vaccines, the third is monitoring the movements of citizens under restrictions in order to prevent the spread of infection. The positive effect of the use of AI in the first two directions is obvious and does not cause a negative public response, while the third direction, related to tracking the movements and health status of an unlimited number of people, causes ambiguous judgments. As you know, China has become a leader in the use of artificial intelligence systems to monitor citizens’ compliance with restrictive measures. China, which was one of the first to face the new infection, widely used infrared cameras, including with a face recognition system, to scan a crowd of people with a high body temperature. A similar system was used to identify citizens who violated the self-isolation regime. In addition to cameras, Chinese law enforcement officers used so-called “smart” helmets that can identify and tag people with high body temperature. Masks used everywhere became a minor obstacle to the operation of such devices, but with the help of “smart” technologies, this problem was quickly solved – the devices began to recognize a person in a mask with a 95% probability [13]. China has actively used drones to patrol the streets and identify citizens without masks, measure body temperature [10]. Other countries have also used artificial intelligence to track movements and monitor compliance with the self-isolation regime, providing a safety and public health regime, often without the knowledge of the citizens themselves or without their consent. It is enough to give a few examples. Thus, Israel launched a program to control the movement of citizens through cellular networks or using GPS, while it was not even necessary to download the corresponding application on a smartphone [7]. Singapore has activated the TraceTogether application, which uses Bluetooth Low Energy to create records about other phones located in the zone of the established proximity [2]. Taiwan has taken similar measures. The only difference is that residents of the most affected mainland provinces were given a mobile phone that records their location using GPS, so that the police could monitor their movements and make sure that they did not leave their home [8]. In Italy, they developed and implemented a smartphone application that tracked the route of a person infected with the virus and identified people who were in contact with him [17]. The large-scale use of artificial intelligence systems to identify citizens, control their communication and movement during the pandemic has re-actualized the discussion about the violation of the right to personal privacy. Particularly heated debates took place among the countries that joined the Convention on the Protection of Individuals with regard to the Automatic Processing of Personal Data (this convention is known as “Convention 108”). Of particular interest is the report of the Council of Europe “Digital solutions to fight COVID-19”, which provides a detailed analysis of the observance of the right to confidentiality and protection of personal data in the implementation of some legal and technical measures taken by governments to prevent the spread of the COVID-19 pandemic [3]. Excesses and violations of the principles of the “Convention 108” were revealed in a
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number of countries. In particular, the requirement on the legal basis of the taken measures, their proportionality, justification by public interests and the consent of the subject for processing his personal data was not observed. In our opinion, the most alarming conclusion is that goal-setting is often shifted when using artificial intelligence systems to control the communication and movement of citizens, the boundaries between the tasks of healthcare and the goals of law enforcement agencies are blurred. The increasing complexity and acceleration of technological development, the active development of remote technologies (including in the healthcare sector), which received an additional incentive during the coronavirus pandemic, impose new requirements to the quality of state regulation, both in terms of increasing the validity of state intervention, and in terms of ensuring that the needs of citizens and businesses are met. For more than 10 years, program-targeted methods have been used in the work of state bodies in Russia. The law establishes requirements for the content of strategic planning documents, including state programs. State programs, as strategic planning documents, are aimed at achieving the declared priorities of the country’s development, should contain planned measures, with an indication of the deadlines for their execution, a list of necessary resources, performers; certain instruments of the state policy. In recent years, discussions have been actively unfolding about the need to revise the format of state programs, among the reasons, the relationship of the set of measures that should lead to a specific quantitative goal is not observed; the parameters and indicators for evaluating the result of state programs do not correlate with each other, the goals and activities are not fully adequate to the set tasks for the relevant state bodies; there are shortcomings in the implementation and financing of state programs. National goals in the field of population preservation, health and well-being of people predetermined the content of national projects (programs) in 12 areas. Among them is the national project “Healthcare”. The objectives of the project, among others, include changing the system to protect the rights of patients. Since 2018, five state programs have been implemented in a different format in the pilot mode: they incorporate planning technologies using the principles of project management. Among these pilot programs is the program “Development of Healthcare”, which contains two parts: the project part, which includes federal and departmental projects, some of the most large-scale activities of federal projects; as well as the process part, which contains departmental target programs. Among the federal projects (FP) in the structure of the national project “Healthcare”, we pay attention to the FP “Creation of a single digital circuit in healthcare on the basis of a unified state information system in the field of healthcare” (USISH). The uniqueness and ambitiousness of the project’s goal will certainly require changes in the legal regulation of the healthcare system. The digitalization of public health will predictably face the following most problematic issues: the lack of legal mechanisms for interaction between medical organizations, the risks of introducing digital technologies, the safety of personal data. Since 2016, the National Technology Initiative (NTI), a long-term interdepartmental program of public-private partnership (PPP) to promote the development of new promising markets based on high-tech solutions that will determine the development of the world and Russian economy in 15–20 years, has been operating quite successfully.
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Within the framework of the NTI of Russia, attention is focused on markets that have the development prospect to ensure a high standard of living for citizens and national security, through the development of industries of a new technological type. Among the new global high-tech markets of NTI, Helsnet is the market of personalized medical services and medicines that provide an increase in life expectancy, as well as obtaining new effective means of prevention and treatment of various diseases. According to the forecast, Helsnet in the global healthcare market in 2020 already amounted to $ 2 trillion. It may increase to $ 9 trillion by 2035. At the same time, an expert assessment suggests that the Russian market share of Helsnet will amount to 3% of the global volume by 2035. One of the reasons limiting the implementation of the NTI action plans is administrative barriers, including gaps in the necessary legal or technical regulation, as well as legal uncertainty for bringing advanced technologies, goods and services to the market that ensure the priority positions of Russian organizations in the emerging global markets. In 2017, a document was adopted aimed at optimizing the development of “road maps” to improve legislation and eliminate administrative barriers in order to ensure the implementation of NTI. Although the state acts more as a service organization in NTI, providing support to high-tech businesses, financial resources of the state are also planned to subsidize certain areas of NTI. The analysis of projects in the field of Helsnet and the use of AI allows us to identify the main problems associated with their legal regulation: – the subject of responsibility is not defined in case of errors in clinical practice, biomedical research when using AI. The issue of responsibility is also relevant when there is insufficient protection of AI systems and possible risks and threats to life and health, for example, remote hacking of a pacemaker, deliberate “reprogramming” of the diagnostic system for the use of dangerous drugs; – the problem of violation of privacy and human rights (for example, illegal transfer of data from the medical history; refusal of employment to a candidate with chronic diseases); – the statuses of the owners of medical data and the rights to dispose of data are uncertain. There is a possibility of variability in this issue: the owner can be a patient, a doctor, a clinic, a technological service; – the novelty of the industry and the lack of ready-made cases with insufficient experience of legal expertise and understanding by legislators of the entire scope of legal consequences which potentially lead to the use of trial and error, and mistakes in healthcare concern people’s lives and health; – the uncertainty of the legal consequences that may arise when the right to operate on citizens’ medical data is transferred to foreign states and organizations and a partial loss of sovereignty.
4 Discussion The issues of legal regulation of social rights and freedoms in their implementation using artificial intelligence are actively discussed in the legal science [10, 11, 15]. The
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conditions of the pandemic provoked the active development of medical technologies, including the introduction of artificial intelligence. This, in turn, actualized research on the transformation of not only the process of realizing the right to health protection and medical care, but also required a scientific understanding of the very content of this right [2, 3, 19–21]. The problems of determining and preserving the balance of values when using AI in medicine and the implementation of a number of human rights are of scientific interest. At the international and national levels, many states are discussing the problem of ensuring the right to privacy of personal data [1, 2, 7–9, 13, 18]. At the same time, aspects of the legal regulation of the constitutional right to health protection in the context of the development of artificial intelligence have not been the subject of close scientific research. A separate study on the implementation of the constitutional right to health in the new realities was conducted by Otstavnova, the researches assesses possibilities of using neural networks and expert systems in healthcare, identifies types of medical care where the use of artificial intelligence technologies will allow providing such assistance at a new, high-tech level [14]. At the same time, it can be assumed that the introduction of AI into medical practice will entail the expansion of the right to health protection due to the emergence of a new right related to receiving medical care using AI technologies. One of the significant problems, from the authors’ point of view, is the legal regulation of the interaction of state and other information systems in the field of healthcare in the context of ensuring the safety of personal data [10, 14]. In healthcare, in accordance with the legislation, a variety of information systems can be created and used, including the so-called “other information systems” that have the right to interact with state ones by connecting to the unified identification and authentication system (ESIA). At the same time, the issue of responsibility for data storage by operators of other information systems has not found sufficient legal elaboration.
5 Conclusion The conducted research allows us to draw the following main conclusions. The Constitution of the Russian Federation laid down the fundamental principles of building the Russian health care system, ensuring the safety of citizens and their realization of the right to health protection. Everyone has the right to health, which is determined by the list of patients’ rights, detailed in regulatory legal acts. At the same time, the definition and classification of patients’ rights would not be effective without the development and adoption of a single document, which is Federal Law No. 323 [6], where the scope of legal relations between a doctor and a patient is clearly and in detail defined. The unprecedented development of artificial intelligence systems and technologies in the healthcare sector is determined by forced measures to find solutions that ensure public safety and the health of the nation in the context of a pandemic of a new coronavirus infection. The analysis of the introduction of AI technologies into the healthcare system allowed us to identify a number of areas where artificial intelligence was most in demand when ensuring the constitutional right to health protection in such specific conditions. At the same time, the authors note that digital technologies and artificial intelligence technologies in the healthcare system and ensuring the constitutional right to health
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protection are, on the one hand, necessary tools to assist in taking coordinated state measures in the context of a pandemic, but on the other hand, they reveal a serious conflict of public and private interests, the solution of which cannot be ignored, including in the sphere of legal regulation. The authors identify and substantiate the main problems related to the legal regulation of AI in the field of healthcare, which include: the absence of a subject of responsibility when using AI; violation of data privacy and uncertainty of the status of the owner of medical data and the right to dispose of them; lack of experience in using AI and, as a result, uncertainty of legal consequences arising when using AI in doctor/patient legal relations. Acknowledgements. The authors express their gratitude to the RFBR for the financial support of the scientific study No. 20–011-00765 "Constitutional and legal mechanism for the implementation of social rights and freedoms using artificial intelligence: Problems of legal regulation, limits and responsibility", within the framework of which this work was prepared.
References 1. Anom, B.Y.: Ethics of big data and artificial intelligence in medicine. Ethics, Med. Public Health 15, 100568 (2020) 2. Bay, J., et al.: BlueTrace: a privacy-preserving protocol for communitydriven contact tracing across borders (2021). https://bluetrace.io/static/bluetrace_whitepaper-938063656596c10 4632def383eb33b3c.pdf. Accessed 20 Apr 2021 3. Council of Europe: Media release of the Council of Europe report “Digital solutions to fight COVID-19” (2020). https://search.coe.int/directorate_of_communications/Pages/result details.aspx?ObjectId=09000016809fe4c2. Accessed 20 Apr 2021 4. Econs: Technologies against the virus: How artificial intelligence is fighting a pandemic (2021). https://thebell.io/tehnologii-protiv-virusa-kak-iskusstvennyj-intellekt-boretsya-s-pan demiej. Accessed 18 Aug 2021 5. EverCare: Artificial intelligence technologies and the COVID-19 pandemic (2021). https:// evercare.ru/news/tekhnologii-iskusstvennogo-intellekta-i-pandemiya-covid-19. Accessed 20 Apr 2021 6. Federal Law No. 323-FZ of 21.11.2011 (as amended on 02.07.2021) “On the basics of public Health protection in the Russian Federation”. http://base.garant.ru/12191967/. Accessed 20 Apr 2021 7. Holmes, O.: Israel to track mobile phones of suspected coronavirus cases (2021). https:// www.theguardian.com/world/2020/mar/17/israel-to-track-mobile-phones-ofsuspected-cor onavirus-cases. Accessed 20 Apr 2021 8. Laurent, A.: COVID-19: States use geolocalisation to know who respects containment (2021) https://usbeketrica.com/fr/article/covid-19-la-geolocalisation-pour-savoir-qui-respec teconfinement. Accessed 20 Apr 2021 9. Lindberg, K.S., Murphy, C.: Drones take to China’s skies to fight coronavirus outbreak (2020). https://www.bloomberg.com/news/articles/2020-02-04/drones-take-to-chinas-skies-tofight-coronavirus-utbreak. Accessed 20 Apr 2021 10. Lipchanskaya, M.A., Otstavnova, E.A.: Artificial intelligence as an object of constitutional relations. In: Nazarov, A.D. (ed.) Proceedings of the 2nd International Scientific and Practical Conference “Modern Management Trends and the Digital Economy: from Regional Development to Global Economic Growth”. Advances in Economics, Business and Management Research, pp. 182–187. Atlantis Press, Paris (2020)
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11. Lipchanskaya, M.A., Zametina, T.V.: Social rights of citizens in the conditions of using artificial intelligence: Legal bases and gaps in legislative regulation in Russia. J. Russian Law 11, 77–97 (2020) 12. Naumov, A.: Trends and forecasts: What happened to AI in the pandemic and how it will develop further (2021). https://rb.ru/opinion/ai-trends-2021/ Accessed 18 Aug 2021 13. Noorbakhsh-Sabet, N., Zand, R., Zhang, Ya., Ab.V.: Artificial intelligence transforms the future of health care. Am. J. Med. 132(7), 795–801 (2019) 14. Otstavnova, E.A.: Implementation of the constitutional right to health protection in the context of the development of artificial intelligence. In: Proceedings of the International Scientific and Practical Conference Personality, Economy, Culture in the Modern Digital world: problems and potential opportunities, pp. 36–39. Agency For Advanced Scientific Research, Belgorod (2020) 15. Pollard, M.: Even mask-wearers can be ID’d, China facial recognition firm says (2019). https://www.reuters.com/article/us-healthcoronavirus-facial-recognition/even-maskwearers-can-be-idd-china-facial-recognitionfirm-says-idUSKBN20W0WL. Accessed 20 Apr 2021 16. President of Russia: Address of the President of the Russian Federation to the Federal Assembly of April 21, 2021 (2021). http://www.kremlin.ru/acts/bank/46794. Accessed 20 Apr 2021 17. Sunartia, Sri, Ferry, F.R., Naufa, M., Risky, M., Kresna, F., Rusni, M.: Artificial intelligence in healthcare: Opportunities and risk for future. Gaceta Sanitaria 35(1), 67–70 (2021) 18. Tebano, E.: Coronavirus, pronta la app italiana per tracciare i contagi: “Cos? possiamo fermare l’epidemia” (2019). https://www.corriere.it/tecnologia/20_marzo_18/coronaviruspronta-app-italiana-tracciarecontagi-cosi-possiamo-fermare-l-epidemia-c6c31218-691911ea-913c55c2df06d574.shtml. Accessed 20 Apr 2021 19. Tobes, B.: The Right to Health: Theory and Practice. Sustainable World, Moscow (2001) 20. Valle-Cruza, J.D., Ignacio Criado, R.S.-Al., Edgar, A.R.-G.: Assessing the public policy-cycle framework in the age of artificial intelligence: from agenda-setting to policy evaluation. Gov. Inf. Quart., 37(4), 101509 (2020) 21. Zeitoun, J.-D., Ravaud, P.: Artificial intelligence in health care: value for whom? Lancet Digital Health 2(7), 338–339 (2020)
Violation of Individuals and Legal Entities Rights in the Digital Technologies Field A. T. Movsisyan1(B) , F. G. Mushko1 , and N. B. Rouiller2 1 State University of Management, Moscow, Russia
[email protected]
2 University of Lausanne, Lausanne, Switzerland
[email protected]
Abstract. The contribution analyzes the introduction of digital technologies in modern society, which affect different spheres of life of the state and society, in particular, new technologies penetrate both the economy and public administration. Nowadays, there are problems that affect the rights and legitimate interests of individuals and legal entities related to the field of digital technologies in the process of legal regulation. The authors consider the concept of digital technologies, what we understand by this definition from the point of view of the theory of law and from the position of modern law enforcement practice, as well as in the field of economics, public administration, the type of technologies. The purpose of the study is to determine what legal problems arise in practice when using new technologies, including electronic signature. Since we live in a global world, the process of globalization is taking place, every day Russian citizens are faced with new ways of transmitting and receiving data, as well as transmitting and receiving legal information, obtaining legal documents via the Internet, and obtaining legal documents from the Internet, etc. Keywords: Innovation · Law · Relations · Society · Technology
1 Introduction Globalization, integration, the creation of new integration associations, new economic unions in the world led to the fact that at the moment competition is clearly expressed in different spheres of modern society, the state, the individual, the citizen. Today, new technologies are being introduced in modern society as an innovative breakthrough, which is convenient for using by citizens and state bodies. Digital technologies are new technologies that directly or indirectly relate both to the field of the state’s economy, thereby simultaneously developing the state, including some state institutions, and that sphere of everyday life of a person or citizen. Introducing new technologies, everything new in the life of modern society, various legal problems arise in this process.
© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 213–218, 2022. https://doi.org/10.1007/978-3-030-94873-3_26
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2 Methodology The research uses different methods to identify the problems that have developed in the theory and practice of different countries, including in the Russian doctrine and modern practice. The method is those means, methods that make it possible to identify such important issues in the field of jurisprudence. Comparative analysis provides us with an opportunity to study the social relations that develop when using and applying such technologies in the process of legal regulation. The field of digital technologies includes, among other things, an electronic digital signature (hereinafter referred to as an EDS). Under the general name digital technologies in Russian law, we understand such innovations that are used with the help of appropriate algorithms, the method of digitalization. The term “digital technologies”, “digitalization”, and other equivalent terms are widely used both abroad and in Russia. The process of “digitalization” or, more precisely, the introduction of digital technologies, including EDS, in various spheres of our life activity proceeds through the Internet, i.e. through connection, which we call information-wire communication. In this regard, several federal laws were adopted in Russia. For example, the Federal Law of the Russian Federation “On Electronic Signature” [9], the Federal Law of the Russian Federation “On Communications” [8], the Federal Law of the Russian Federation “On Information, Information technologies and Information protection” [10] and other laws [4, 7, 11, 13]. It should be noted that earlier, when there was no Internet, we identified legal ties, contacts between citizens of different countries through the interaction of different legal systems, for example, in the field of private international law. As a result, the competent authority of a particular country had to make a decision on the applicable law, which is subject to the regulation of these relations. Today, a variety of legal ties and contacts pass through information and wire communication, that is, through the Internet, so public relations can go beyond the framework of the Russian legal system. Introduction of digital technologies in various spheres of public relations. At the moment, digitalization, technological innovation is very relevant for modern society. To regulate such relations, of course, changes are being made in Russian legislation. Both in Russia and abroad, quite a lot of scientific papers have been published on the topic of digital technologies over the past few years. On the one hand, technical specialists on the problems of digitalization, digital technologies, IT specialists express their position, and on the other hand, lawyers on the legal regulation of such specific relations express their own point of view. Digital technologies are now being introduced into various spheres of life of the modern state and society. For example, the introduction of digital technologies in the educational process. As we know, in connection with the coronavirus in 2020, many Russian universities switched to distance learning of students, this happened not only here, but also abroad. Another area where digital technologies are widely used is the healthcare sector. Today, doctors perform operations (TV-video broadcast) in one country, and at the same time, this operation can be seen in a live broadcast, while being in another country, etc. Or, for example, in medical institutions they began to issue electronic medical cards instead of paper ones, which are usual for us. In addition, electronic workbooks appeared in Russia instead of paper ones. For this purpose, a decree of the government of the Russian Federation was adopted [12]. Thus, artificial intelligence, i.e. the field of digital technologies, helps to detain a criminal.
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For example, a citizen who participated in an attack on paratroopers in Chechnya was detained in Moscow [2]. In general, digitalization also affected the housing sector, digital technologies are widely used for the effective operation of the housing sector of the entire city, for example, the efficiency of municipal equipment, etc. The field of jurisprudence was also affected by digitalization. Thus, the introduction of digital technologies in the field of Russian law, in the Russian judicial system, for example, the electronic procedure for submitting documents to the court, we also note that Russian judges sign decisions, court rulings with an electronic digital signature, which indicates that the document has the same legal force as paper copy. Also, Russian notaries widely use new technologies, for example, they have the right to certify transactions through an electronic digital signature, and so on. Digitalization or introduction of digital technologies in the field of trade, both within the Russian jurisdiction and in international commerce. The new thing that is clearly manifested today is electronic money called “bitcoin”, perhaps in the future there will also be an electronic Russian ruble, etc. All this relates directly or indirectly to both the sphere of economics and the field of law, as well as to other spheres of our everyday life. And what is digitalization? Or, more correctly, the introduction of new technologies. All of the above-mentioned applies to the Internet directly, since many processes pass or flow through the Internet network. It is important to note that in the field of digitalization, the rights of citizens are often violated when using and applying such technologies, for example, EDS. And as for e-commerce or commercial, entrepreneurial activity, there are quite a lot of legal problems. It comes to fraud, i.e. criminal liability. For legal entities, digital technologies make it possible to submit reports to the tax authority via an online format, according to the scheme of the electronic signature of the head of the organization or firm. For example, submission of documents with the tax authority for commercial organizations, and yes, it is quite convenient, fast and rational for many private organizations and companies. The Internet in the field of law enforcement makes it possible to read court decisions on civil, family and criminal cases both within the framework of Russian practice and foreign court decisions. For example, the European Court of Human Rights, court decisions in the database system [6]. The Internet makes it possible to search for international conventions in the field of international trade agreements, for example, the International Institute for the Unification of Private Law in Rome [15] and other organizations.
3 Results Execution of transactions through an electronic digital signature (EDS). At the moment, the Russian legislator has granted the right to Russian citizens to execute transactions through an electronic signature with both individuals and state bodies, for example, in a tax authority. On the one hand, it is convenient for our citizens to go to state bodies all the time to get certificates, pay taxes and other legally significant actions. Some authors believe that the use of EP in the provision of public services can save not only the time of citizens, but also the funds of the state [3]. Over the past three years, Russian lawyers of the practice have informed the Russian society that cases of fraud in this area have increased, in particular, it concerns the
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movable and immovable property of our citizens. For example, civil case No. 2-3237/19, which was considered by the Moscow City Court of the Russian Federation. The plaintiff Saltovsky R. Yu. appealed to the court with a claim to the defendant Mashkov I. N. for invalidation of the apartment donation agreement and the application of the consequences of the invalidity of the transaction, in which he asked to invalidate the apartment donation agreement dated September 28, 2018, located at the address: Moscow,*. He asked to apply the consequences of the invalidity of the transaction, returning to his property the apartment located at the address: Moscow, *, by paying off the entry on the ownership of Mashkov I. N. in the EGRN and registering the ownership right of the plaintiff to the specified apartment, indicating that he was the owner of the apartment at the address: Moscow, * [5]. On 08.05.2019, from the receipt for payment of housing and communal services, it became known to him (citizen Saltovsky R. Yu.) that the owner of the apartment is the defendant (citizen Mashkov I. N.). The plaintiff, i.e. Saltovsky R. Yu., having applied to the MFC, found out that the defendant is the owner of his apartment on the basis of a gift agreement dated 28.09.2018, concluded by means of the plaintiff’s electronic signature. However, the plaintiff (citizen Saltovsky R. Yu.) did not make any transactions on the alienation of the apartment, did not sign the gift agreement, did not receive an electronic digital signature. The essence of the problem is that the citizen owned the property right in relation to this apartment, and suddenly it turns out that the real estate is transferred to another person through a transaction, the transaction was made through an electronic digital signature of the owner of the apartment.
4 Discussion Different authors today express different positions on the use of an electronic signature. Today, there are also supporters of the use of new technologies in this area, in the field of digital technologies, in the field of artificial intelligence and other areas of digitalization. Of course, there are also opponents of this sphere, who believe that the introduction of such technologies has a bad effect on citizens and legal entities, etc. How new technologies affect the rights of legal entities in the issue of protecting the rights and interests, as well as the property of the organization. Execution of transactions through an electronic signature (EDS). At the moment, the Russian legislator has also granted the right to Russian companies and law firms to execute transactions through an electronic digital signature with individual entrepreneurs, private companies, and government agencies, for example, to issue a contract for the supply of goods or a lease agreement, etc. At the moment, the Russian legislator has also granted the right to Russian companies and law firms to submit annual reports to the tax authority of Russia using an electronic digital signature. In 2019, at the RTS-Tender trading platform (www.rts-tender.ru) an open auction was held in electronic form for the supply of electrical equipment. So, the purchase number 1282815, the name of the open auction – the right to conclude a contract for the supply of an electric motor 5AI 280 S6 (Analog) for LLC “Transservice”. It should be noted that the start for submitting applications is 28.11.2019, and the end date for submitting applications is 06.12.2019. According to the rules of the trading
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platform, the place for submitting applications is the electronic platform “RTS-Tender”, and the procedure for submitting applications is in electronic form. The initial (maximum) price of the contract for the supply of an electric motor 5AI 280 S6 (Analog) is 2,418,000 (two million four hundred and eighteen thousand) rubles. The regulatory period for concluding the contract is from 5 to 20 days. The organization LLC “Electromechanika” on December 05, 2019 paid a security deposit in the amount of 120,900 (one hundred and twenty thousand nine hundred) rubles, since the amount of the application security is 5% of the initial purchase price. The plaintiff (LLC Electromechanika) submits to the court a payment order No. 1795 dated 05.12.2019. In the future, the security deposit was paid to the settlement account of the organization “Columbia” LLC, which was specified by the Customer (Transservice LLC) in the auction documentation. Later, the open auction did not take place for reasons unknown to the plaintiff and the contract for the supply of the 5AI 280 S6 electric motor (analog) was not concluded by the customer (Transervice LLC). Thus, according to paragraph 3.8 of the Auction documentation “Procedure for returning offers provision”, the customer returns the funds deposited as collateral for offers within 5 (five) working days from the date of: 1. Receiving a notification of the withdrawal of the offer to the participant who withdrew the offer; 2. Signing the protocol with the evaluation and comparison of proposals—to the participant who submitted the proposal after the deadline for their acceptance, except for the participant whose proposal was assigned the second number; 3. After the conclusion of the contract—with the winner or the participant whose offer was assigned the second number; 4. From the date of recognition of the request for proposals as invalid—to the only participant whose proposal was recognized by the commission as not meeting the requirements of the documentation. Later it turned out that the organization of Columbia LLC is a one-day company and it is impossible to get money, i.e. a security deposit. There is even a decision of the Moscow Arbitration Court in case No. A40–264975/20, which has entered into legal force [1]. Summing up the above, it should be noted that there are quite a lot of problems in this area. Thus, Kasperskaya suggests to adopt a Digital Code or digital law in Russia to regulate relations in the digital environment [14].
5 Conclusion In our opinion, it is necessary to develop appropriate measures, means of protection of a state nature, precisely at the state level, which would provide adequate protection against those actions (or inactions) of state bodies that provide such services, including simultaneously performing such services, so that in the future it would be possible to prevent conflicts, complex legal situations that arise in modern Russian practice. Modern practice plays an important role in solving these problems. Summing up the above, we note that the Russian state is obliged to provide the necessary conditions in the field of digital technologies, in the field of digitalization, so that in the future participants in civil
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turnover, i.e. individuals and legal entities, would be sure that they will not lose money or property.
References 1. Arbitration Court of the City of Moscow: The decision of the Arbitration Court of Moscow of 26.02.2021 in the case No. A40-264975/20 “On the claim of LLC “Electromechanika” to LLC “Columbia” on unjustified enrichment and recovery of funds” (2021). https://kad.arbitr. ru/Document/Pdf/ab202f70-74a7-4769-af3d-4dc28da471b7/0b8c5f03-c1b8-4199-8640-3c6 b17f6d009/A40-264975-2020_20210113_Opredelenie.pdf?isAddStamp=True. Accessed 25 Mar 2021 2. Boyko, A.: Artificial intelligence helped to detain a participant in the attack on Pskov paratroopers in Chechnya (2021). https://www.kp.ru/daily/27256/4387505/?utm_referrer=https% 3A%2F%2Fzen.yandex.com. Accessed 01 May 2021 3. Cherkasova, M.V.: Prospects of using an electronic digital signature. Works Young Sci. Altai State Univ. 8, 286–287 (2011) 4. Civil Code of the Russian Federation. https://base.garant.ru/10164072/. Accessed 25 Apr 2021 5. Courts of General Jurisdiction Cities of Moscow: The decision of the Babushkinsky District Court of Moscow of October 4, 2019, case No. 2-3237/19 “On the claim of Saltovsky R. Yu. to Mashkov I. N. on the invalidation of the apartment donation agreement and the application of the consequences of the invalidity of the transaction” (2019). https://mos-gorsud.ru/rs/ babushkinskij/services/cases/civil/details/7ae9082f-aeec-49b9-9822-2bd1eae932e0?partic ipants=%D1%81%D0%B0%D0%BB%D1%82%D0%BE%D0%B2%D1%81%D0%BA% D0%B8%D0%B9. Accessed 25 Mar 2021 6. European Court of Human Rights: Applicants pages (2020). https://www.echr.coe.int/Pages/ home.aspx?p=home. Accessed 01 Sep 2020 7. Federal Law “On State Registration of Real Estate” dated 13.07.2015 No. 218-FZ. http:// base.garant.ru/71129192/. Accessed 25 Apr 2021 8. Federal Law No. 126-FZ of July 7, 2003 “On Communications”. http://base.garant.ru/186 117/. Accessed 25 Apr 2021 9. Federal Law of the Russian Federation “On Electronic Signature” dated April 06, 2011 No. 63-FZ. http://base.garant.ru/12184522/. Accessed 25 Apr 2021 10. Federal Law of the Russian Federation No. 149-FZ of July 27, 2006 “On Information, Information Technologies and Information Protection”. http://base.garant.ru/12148555/. Accessed 25 Apr 2021 11. Resolution of the Government of the Russian Federation No. 1017 of July 10, 2020 “On Amendments to Certain Acts of the Government of the Russian Federation in connection with the adoption of the Federal Law “ On Amendments to the Labor Code of the Russian Federation regarding the formation of information about labor activity in electronic form”. http://www.garant.ru/products/ipo/prime/doc/74295219/. Accessed 25 Apr 2021 12. Resolution of the Government of the Russian Federation No. 65 of January 28, 2002 “On the Federal target program” Electronic Russia (2002–2010)”. http://base.garant.ru/184120/. Accessed 25 Apr 2021 13. The Constitution of the Russian Federation (Adopted by popular vote on December 12, 1993). http://www.constitution.ru/. Accessed 25 Apr 2021 14. Tsargrad: Russia is facing a “Digital Fukushima”: Natalia Kasperskaya urged to take urgent measures (2021). http://tsargrad.tv/news/rossii-grozit-cifrovaja-fukusima-natalja-kas perskaja-prizvala-srochno-prinjat-mery_320155. Accessed 04 Apr 2021 15. UNIDROIT: History and Overview (2020). https://www.unidroit.org/about-unidroit/ove rview. Accessed 01 Sep 2020
Corporate Governance Innovations M. A. Tokmakov1(B) , I. V. Smotrova2 , and M. P. Apukhtin3 1 Samara State University of Economics, Samara, Russia 2 Academy of Public Administration, Moscow, Russia 3 Plekhanov Russian University of Economics, Moscow, Russia
Abstract. The development of modern digital technologies provides tremendous opportunities for their use in corporate governance, which poses unprecedented challenges to corporate law to be tackled as soon as possible. Technologies are developing much faster than law. Possible barriers or ambiguity can hinder this development and require, therefore any public order claiming to be competitive should duly assessment them from the legislative point of view. The purpose of the research prompted the author to go beyond national jurisdictions and assess the impact of digital technology on corporate governance across the world. In the research, authors attempted to identify and give a general description of technologies that can affect corporate governance, such as distributed ledger technology, blockchain, smart contracts, artificial intelligence, etc. The paper estimates the advantages of holding a general meeting of corporate shareholders using DLT, as well as the tokenization of corporate assets. Particular attention is paid to the trends towards decentralization of corporate governance in platform-type companies and decentralized autonomous companies. In conclusion, applications of artificial intelligence in corporate governance are considered. Keywords: Blockchain · Corporate governance · Digital technologies · Distributed ledger technology · Smart contract · Token
1 Introduction Digitalization processes occurring in modern society affect a growing number of economic sectors. Interfering with the relations that have developed over decades or even centuries, digitalization transforms them to one or another extent and makes to adapt to changing conditions. In modern economic systems, such a correlation becomes one of the determining factors that ensure the viability and competitiveness of many elements. Like under the law of evolution, the strongest elements, which managed to adapt and evolve at the right time in the new conditions, survive; the remaining elements of the system either become abandoned either disappear. What stage of “digital evolution” is occupied by modern corporations and legal systems that govern their existence? What elements of these systems have already fallen under digital transformation or will shortly fall? What will be the situation with the corporate law in light of these changes? Is corporate law ready for “evolution” or will it be left behind? This research tries to find answers to these questions. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 219–226, 2022. https://doi.org/10.1007/978-3-030-94873-3_27
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The development of modern digital technologies provides tremendous opportunities for their use in corporate governance; however, it sometimes challenges some foundations of corporate law due to its inconsistency with the established principles. As Fenwick and Vermeulen note, “we all now live in radical cognitive and normative uncertainty [3]. Technologies are developing much faster than law. Possible barriers or ambiguity can hinder this development and require, therefore any public order claiming to be competitive should duly assessment them from the legislative point of view. In the research, authors attempted to identify and give a general description of technologies that can affect corporate governance, such as distributed ledger technology, blockchain, smart contracts, artificial intelligence, etc. The paper estimates the advantages of holding a general meeting of corporate shareholders using DLT, as well as the tokenization of corporate assets. Particular attention is paid to the trends towards decentralization of corporate governance in platform-type companies and decentralized autonomous companies. In conclusion, applications of artificial intelligence in corporate governance are considered.
2 Methodology Due to the globalization of the technologies under study, at the first stage, it appears impossible to refer to the public order of a particular state. The purpose of the research prompted the author to go beyond national jurisdictions and assess the impact of digital technology on corporate governance across the world. In this regard, the methodological background of the research study is primarily the methods of scientific generalization, simulation, and forecasting. Undoubtedly, it is worth making a reservation that the variety of existing forms of legal entities represented in different public orders was not taken into account. To a greater or lesser extent, some technologies under consideration can be applied in many legal forms (tokenization, blockchain, artificial intelligence), in others – they can be advantageous. Some technologies even raise the issue of establishing new forms of legal entities. Anyway, the authors firstly intend to study the technologies, assess their impact on corporate governance and need for legal regulation without imposition on a specific form of a legal entity, which certainly deserves attention in subsequent studies. In this regard, for the sake of convenience, the concept of corporation will be used as a collective category of a legal entity based on membership and connected to members with corporate rights.
3 Literature Review The supreme governing body of the corporation is the general meeting of shareholders, which is held in most jurisdictions annually (regular meeting). The extraordinary meetings are held extremely rarely (if there is a strong need) due to significant costs. At the same time, one of the objectives of modern corporations following from corporate governance codes (rules) in many jurisdictions is to involve into governance the highest possible number of shareholders (encouragement of shareholder activism). Electronic
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remote voting systems of corporate shareholders operating today in different countries certainly contribute to the solution of the problem. However, the use of distributed ledger technologies (DLTs), the most common of which is blockchain technology, open up new opportunities [6]. In addition to increasing the activism of minority shareholders, DLT can solve a wider range of problems. For example, Yermack enumerates the following advantages of using blockchain technology in shareholders’ voting: a) accuracy of vote counting; b) no manipulations during voting due to the transparency of probable results in real time; c) solving the problem of empty voting thanks to the transparency of redistributing voting powers [15]. In turn, Lafarre and Van der Elst distinguish other opportunities of DLT use. In their study, they argue that DLT allows holding a general meeting of corporate shareholders much more frequently than once a year due to opportunity of placing a voting agenda on the blockchain at any time and immediate decision-making by shareholders, as well as not limiting the general meeting to a time frame, which will give additional time to communicate with the corporation management [7]. Besides, Lafarre and Van der Elst remark that all the questions of the participants in the meeting can be included in the blockchain and thus become transparent, as well as the answers of the members of the governing bodies, thereby facilitating an open dialogue and exchange of information between shareholders and corporate management [7]. Reyes, Packin, and Edwards also see the opportunity of creating incentives through smart contracts in the form of reputational benefits or other rewards for interested parties incurring management costs that could solve the problem of free-riders [10]. The designs of modern blockchain-based decentralized applications (Dapps) provide a wide range of functions that push the boundaries of general transaction ledger system. Most studies are dedicated to assessing the problems and prospects of DLT use only for voting by corporate shareholders, but attention should be paid to the deeper applications of this technology that makes it possible to develop not just a voting system, but a platform for holding a full-fledged general meeting of shareholders in real time. This virtual form combines all the advantages of an in-person presence, the convenience of remote participation, as well as the transparency and reliability guaranteed by DLT. Blemus and Guegan express confidence that most corporations will develop an option to hold virtual or hybrid (partially physical and partially virtual) meetings of corporate shareholders in the coming years [1].
4 Results 4.1 Tokenization of Corporate Assets One example of corporate applications of blockchain technology is the issue of socalled traceable shares, i.e. developing DLT-based system of shares and titles to them by issuing the corresponding cryptographic (digital) tokens. The transfer of the title to share from one entity to another, as a rule, takes some time (several days depending on the jurisdiction). DLT reduce time costs to a few minutes. According to Geis, a distinctive feature of the traceable shares is that each unit of shares will have a clear chain of title of ownership identifying all current and previous owners. In his opinion, transparency of
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shares’ origin contributes to the solution of many problems: a) voting right will always be exercised by the current owners of shares, not allowing sellers to vote for shares no longer owned by them; b) Clarity related to determining the moment of transferring titles to shares; c) reducing the tracking costs of beneficial owners that will expand the use of minority shareholders’ initiatives by combining with other shareholders; d) the opportunity of holding previous shareholders liable for corporate offenses [4]. In turn, Yermack emphasizes that DLT gives an opportunity to significantly increase the liquidity thanks to the reduction of costs and time required for the settlement of security transactions. Yermack believes that transparency of ownership and high liquidity will inevitably affect the approaches to corporate governance by institutional investors and corporate management. For example, investors can affect management not through the voting system, but through ultimatum to sell the shares, and insider trading of shares by members of the governing bodies will become meaningless due to transparency [15]. The transition of corporate stocks (shares) recording system to the blockchain technology is surely one of the forward-looking areas for the development of this technology, but the DLT capacity pushes these boundaries. The tokenization of the corporation’s stocks (shares) ultimately means the creation of securities similar in content to existing ones, only in a different form or even rather in a different way (cryptographic one), since the form (electronic, digital) does not essentially differ from other uncertificated securities. However, modern technologies create opportunities for creativity in the field of crypto assets. To date, the literature has developed a trend to classify crypto assets into security tokens, utility tokens, and cryptocurrency tokens. Under this classification, tokens of corporate stocks (shares) are security tokens. At the same time, most of today’s security tokens issued as a result of ICOs are inconsistent in content with traditional securities. Blemus and Guegan note that security tokens can change the relations between corporate founders and investors. They provide an example of commitment of technology giants, such as Snap, Facebook, Google, LinkedIn, Groupon, to change “one share – one vote” principle and reduce or avoid the provision of voting rights to non-founders by creating different classes of shares for different types of shareholders (founders, early investors, late investors, etc.), as well as by issuing several voting shares, as well as non-voting shares [1]. The use of security tokens gives to founders a room for maneuver and allows designing crypto-assets with any content. Tokens may not provide investors with the right to vote, to gain dividends, the right to liquidation balance or stipulate other restrictions in comparison with traditional securities. Besides, owners of corporate utility tokens could potentially be part of a corporate governance system. Having acquired a certain value and liquidity in the secondary market, utility tokens can have profound economic and reputational pressure on the corporation. Along with owners of security tokens that do not provide for participation rights, they can be qualified as corporate stakeholders. Blemus and Guegan predict that the day may come when general meetings of token holders should be arranged in accordance with a new type of communication with corporate stakeholders [1]. Certainly, protecting the interests of holders of various crypto assets requires close attention today and presents one of the main agendas for many national regulators.
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5 Decentralization of Corporate Governance Traditional corporate governance is based on the doctrine of shareholder value maximization and is built on the principle of closed, centralized power with well-defined hierarchies and the distribution of functions between governing bodies. The corporate governance machine has generally aimed at protecting the interests of the top of this hierarchy, i.e. corporate shareholders. However, in the opinion of Wright and De Filippi, large hierarchical companies are imperfect and inefficient. Their flaws are excessive centralization, a delegation of decision-making duty, regulatory capture, and sometimes corruption [14]. Along with that, governance processes in modern economic systems are increasingly reoriented to decentralization. Democratic development is becoming the dominant idea both in political systems and corporate ones. The above opportunities supported by the commitment to decentralization and faith in DLT and smart contracts outlined a silhouette of fundamentally new corporate governance paradigm. Platform-type companies. The current stage of economic development can be definitely called the century of global innovative technology corporations established by the type of platforms, such as Amazon, Facebook, Airbnb, Uber, YouTube, etc., which success is mostly related to the governance model chosen. The foundation of such platforms is a combination of modern digital technologies, such as personal devices (smartphones, tablets, and PCs), the Internet, cloud technologies, autonomous bots, etc., which provide communication between their participants. Fenwick, McCahery, and Vermeulen in their study revealed the distinguishing features of such companies from common corporations. Platform-type companies: – destroy and decentralize existing business models by eliminating and replacing traditional intermediaries; – use network technologies to promote economic exchange, transfer of information or involvement of people; – create value by facilitating the exchange between different, but interdependent groups; – encourage more direct “peer-to-peer” transactions between service providers/manufacturers, on the one hand, and consumers, on the other hand; – take into account stakeholder contribution and feedback to improve users’ interaction with the “platform” and its products, services and other solutions; – continuously supply innovations related to platform performance, products, and services [2]. The success of platform-type companies is predetermined by open communication, which fosters a sense of inclusion and broadens the scope and diversity of participants in key decision-making processes. The departure from shareholder value maximization doctrine and transition to the protection of interests of all stakeholders poses new challenges to corporate law in the task to find a balance of the corporate rights of platform participants, as well as their corporate liability. Decentralized Autonomous Companies (DAO). The climax of the development of platform-type companies was the emergence of decentralized autonomous companies (DAO) that interested and drawn close attention
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of the professional and scientific community because of the notorious failure of The DAO project in 2016. Shakow describes DAO as an incorporeal creature without a visible form that is floating in cyberspace [13]. In fact, DAO is a computer program presenting a complex system of blockchain-based smart contracts. Establishing a peerto-peer communication system between all shareholders, smart contracts make corporate hierarchy undemanded. Companies of this type do not have a board of directors and a sole governing body, and each shareholder has equal powers and unlimited access to information. According to Kaal, the traditional corporate governance model is built to a significant extent on the fiduciary duties of corporate executive officers because efforts and direction of the workflow are important in the DAO structure. Supervision over governance and the imposition of legal duties on management are less important due to the lack or absence of supervisory bodies [5]. Modern literature pays much attention to the definition of the legal nature and regulation of performance and taxation in such entities, as well as comparison with current statutory concepts. An in-depth study of these issues was conducted by Carla Reyes who noted that DAO, as a potential new wave of corporate decentralization and the expansion of peer-to-peer roots of the sharing economy, also poses a new challenge to the prevailing theories of the firm. In contrast to many pessimistic judgments, she substantiates in her work the possibility of the DAO in the United States as a business trust typical for common law [11]. The potential recognition of the DAO as an entity in various public orders opens new horizons and poses new challenges to corporate law. Rodrigues states that it became possible for the first time from a practical point of view to create a type of organization independent from legal regulation [12]. The DAO “encodes” / develops own contract law to abide, and the legal rules are assumed not to be interfered from a legal point of view. This is both an advantage and a disadvantage of such companies. As long as they work exclusively on the blockchain, their contact with traditional law can be minimal. However, Rodrigues is convinced that DAOs cannot develop to such an extent that they will no longer need the law or, more precisely, they will no longer should to fill in the gaps provided by law. But sooner or later, when inevitable defaults appear in code, they will need some legal regulation mechanism. Until there are identifiable DAO founders and participants in the material world, they will provide a point of legal interference [12]. DAOs exist not in fantasies, but in modern reality. In this regard, the development of models of their legal regulation at the legislative level is only a question of time.
6 Artificial Intelligence in Corporate Governance One of the heatedly discussed technologies today is artificial intelligence (AI). Modern literature contains a wide range of studies dedicated to various theoretical and practical aspects of AI. Legal science and corporate one in particular also succeeded in these matters. One of the possible applications of AI is in corporate governance. It is worth noting that in recent years a classification of AI by its involvement in the decisionmaking process has been developed. Commonly, one classify auxiliary AI (decisions are made entirely by the man), consultative one (AI do not replace human intelligence,
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but uses or enhances it, providing information and advice that otherwise would not be available or would be more hard-to-get and time-taking for man) and autonomous AI (makes independent decisions). The first two types of AI have long been actively used in various areas of life, including the corporate sector. AI assistant can answer calls and perform the functions of customer support, set reminders, type messages, schedule jobs, and meetings, draw up reports, etc. AI consultant can provide support in more troublesome situations related to problem-solving and decision making, asking questions and answering them, as well as developing scripts and simulations. AI consultant may be entrusted with more complex tasks, such as medical diagnostics, property management and financial consultations, legal expertise and sales training. In the context of the topic discussed, the engagement of autonomous AI in corporate governance is no doubt of greater interest. Möslein maintains that when business decisions must be made based on numerous and complex data sets, computer algorithms increasingly begin to override people in decision-making, especially if AI allows these algorithms to continuously sophisticate their respective capabilities [8]. Most researchers are sure that the auxiliary role of AI in corporate governance will be soon transformed into a leading role of AI director (robot-director). Such a scenario would correspond to the stage when AI takes on the right to make decisions, either because the man more frequently entrusts AI with decision-making, or decisions must be made quickly or require the processing of data volume unfeasible for man. The robotdirector can work around the clock, process any available information, call and use this information almost instantly and perform his functions for free. Exploring the development stages of AI involvement in corporate governance, Petrin concludes that at the first stage, the number of boards of directors will decrease since AI will provide more tasks and knowledge, at the second one – the boards will be fused into single AI director, and the third stage will lead to the “fused management” of companies, i.e. the union of boards of directors and managers and the abolition of the two-tier structure of corporate governance [9]. Moreover, corporate law will have to solve unprecedented legal issues as a result of such technological developments. One of them is to what extent a man can delegate tasks and rely on recommendations provided by AI (in the sense of releasing from liability), and, respectively, to what extent he can and should control AI. The issue of AI responsibility also deserves particular attention. The law will have to adapt to the changing realities and develop new models of regulation. For example, Möslein notes that, unlike human directors, it will be much easier to predict from the very beginning whether robot-directors will observe the rules through direct analysis of their code and algorithm, which means ex-post strategies (such as controlling directorial behavior through the responsibilities) to likely lose their significance, while ex-ante strategies, on the contrary, will gain particular importance [8].
7 Conclusion The rapid development of digital technology poses unprecedented challenges to modern corporate law to corporate law to be tackled as soon as possible [9]. The submitted research examined some of the key technologies that can transform corporate governance both now and in the near future. At the same time, it should be regarded that
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such innovations are unlikely to be introduced by one, but most likely will accumulate a technological synergy that will significantly reinforce their impact and effect. Thus, corporate law faces a groundbreaking paradigm of corporate governance distinguished by transparency, peer-to-peer character, and decentralization. It will require the established foundations to be reconsidered.
References 1. Blemus, S., Guegan, D.: Initial crypto-asset offerings (ICOs), tokenization and corporate governance (2019).https://dx.doi.org/10.2139/ssrn.3350771. Accessed 10 Aug 2021 2. Fenwick, M., McCahery, J.A., Vermeulen, E.: The end of ‘corporate’ governance: Hello ‘platform’ governance (2018). http://dx.doi.org/10.2139/ssrn.3232663. Accessed 10 Aug 2021 3. Fenwick, M., Vermeulen, E.: Technology and corporate governance: Blockchain, crypto, and artificial intelligence (2018). http://dx.doi.org/10.2139/ssrn.3263222. Accessed 10 Aug 2021 4. Geis, G.S.: Traceable shares and corporate law (2018). https://ssrn.com/abstract=3129042. Accessed 10 Aug 2021 5. Kaal, W.A.: Blockchain solutions for agency problems in corporate governance. World Scientific Publishers, Economic information to facilitate decision making. Singapore (2019) 6. Kolber, A.J.: Not-so-smart blockchain contracts and artificial responsibility. Stanford Technol. Law Rev. 21, 98 (2018) 7. Lafarre, A., Van der Elst, Ch.: Blockchain technology for corporate governance and shareholder activism (2018). http://dx.doi.org/10.2139/ssrn.3135209. Accessed 10 Aug 2021 8. Möslein, F.: Robots in the boardroom: Artificial intelligence and corporate law (2017). http:// dx.doi.org/10.2139/ssrn.3037403. Accessed 10 Aug 2021 9. Petrin, M.: Corporate management in the age of AI (2019). http://dx.doi.org/10.2139/ssrn. 3346722. Accessed 10 Aug 2021 10. Reyes, C., Packin, N.G., Edwards, B.: Distributed governance. (2016). https://dx.doi.org/10. 2139/ssrn.2884978. Accessed 10 Aug 2021 11. Reyes, C.: If Rockefeller were a coder. (2019). https://dx.doi.org/10.2139/ssrn.3082915.. Accessed 10 Aug 2021 12. Rodrigues, U.: Law and the blockchain (2018). https://ssrn.com/abstract=3127782. Accessed 10 Aug 2021 13. Shakow, D.J.: The tao of the DAO: taxing an entity that lives on a blockchain. Tax Notes 160, 929 (2018) 14. Wright, A., De Filippi, A.: Decentralized blockchain technology and the rise of lex cryptographia (2015). http://dx.doi.org/10.2139/ssrn.2580664. Accessed 10 Aug 2021 15. Yermack, D.: Corporate governance and blockchains. Rev. Financ. 21(1), 7–31 (2017)
State Support of Russian Commercial Organizations Overcoming the 2020 Pandemic Consequences O. A. Khvostenko(B) Samara State Economic University, Samara, Russia
Abstract. The use of digital technologies allows to analyze the available statistical data arrays and to evaluate the main parameters of the activities of commercial organizations in Russia, which, in turn, helps to identify negative trends caused by the coronacrisis. A sharp decline in the indicators of trade turnover and income of entrepreneurs was observed in the spring of 2020, when the economy was hit by a double blow - from the fall in oil prices provoked by the abruption of the OPEC + deal, and from the introduction of anti-pandemic restrictions. Almost all leading economists during this period note the stagnation of the world economy. The author considers the results of the impact of the 2020 pandemic on the activities of Russian organizations. Negative trends and problems affecting the balanced financial result in the conditions of overcoming the macroeconomic crisis are identified. Suggestions are formulated to provide state assistance to private commercial enterprises at the expense of the Federal Budget, the National Welfare Fund and the resources of the banking system. Keywords: Commercial organizations · Small and medium-sized enterprises · State support
1 Introduction The Russian economy suffered significant losses as a result of the global coronacrisis. Despite the fact that 233 thousands of new legal entities were registered in the country in 2020, according to the Federal Tax Service, the number of liquidated organizations for the same period amounted to 545.6 thousands, of which 7.3 thousands stopped their activities as a result of bankruptcy [10]. The crisis affected the sphere of medium, small and microbusiness most painfully. In total, 620.5 thousands of individual entrepreneurs and peasant farms were registered in 2020, and 964 thousands of individuals stopped their activities, that is, their total number for 2020 decreased by 343.5 thousands people [10]. Thus, the market lost hundreds of thousands of economic entities. The wave of bankruptcies poses a serious threat to macroeconomic stability, so the need for state support of the entrepreneurial sphere becomes obvious [7]. Digital transformation requires not only to rethink approaches to the interaction of the state and the private sector, but also to introduce new content into the process of performing their functions by public © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 227–235, 2022. https://doi.org/10.1007/978-3-030-94873-3_28
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authorities, providing financial and credit resources and public services, carrying out supervisory and control activities.
2 Methodology In the course of the study, general economic, statistical and information-analytical methods were used; analysis, synthesis and comparison, formalization and concretization of the results obtained. The financial performance indicators of organizations, statistical data provided by the Ministry of Finance, the Federal Statistical and Federal Tax Services, international information and consulting agencies were used. Using the logical method, the normative legal documents regulating the implementation of measures to assist organizations and the withdrawal of the economy from the coronacrisis of 2020 were studied. The methods of generalization and abstraction allowed to draw conclusions about the ways and methods of supporting commercial organizations in modern conditions.
3 Results During the second half of 2020, as business activity resumed and the market relatively revived, the rate of decline in the activities of surviving organizations and individual entrepreneurs slowed down, but they were still far from similar indicators of the previous year, and only during the last three months of 2020 there was some growth [3], which is shown in Fig. 1.
160 140 120 100 80 60 40 20 0
2019, in % to 2018 2020, in % to 2019
Fig. 1. The balanced financial result of the activities of Russian organizations (profit minus loss), as a percentage to the corresponding period of the previous year, for 2019–2020 ( Source: author)
If in 2019 the growth rates slowed down in the period from January to October, but at the same time it was always above 100%, then in 2020, even in December, with some recovery, the ratio of the financial result to the same period of the previous year did
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not exceed 80%. According to the international organization of independent auditors FinExpertiza, there was a maximum decrease in the profitability of Russian commercial organizations over the past 12 years, after the financial crisis of 2008. The balanced financial result of large and medium-sized commercial organizations amounted to 12.4 trillion rubles and decreased by 23.5% compared to 2019, the share of unprofitable organizations increased to 29.4%, and the loss they received reached 5.34 trillion rubles [4]. The most affected are organizations operating in the fields of coal mining, production and distribution of gas and other energy carriers, air conditioning, intercity and international passenger transportations, tourism and hotel services, public catering, culture, sports and entertainment. Small and medium-sized enterprises suffered the most, the demand for their products and services has not recovered still. It is necessary to highlight the main problems of entrepreneurs that cause a decrease in incomes, an increase in expenses and prevent them from reaching the pre-crisis level: 1. Changes in tax legislation that do not simplify the procedure for forming the tax base and do not reduce the amount of taxes. These include changes in the patent taxation system, a doubling of the cost of a trade patent, the cancelling of a simplified taxation system for individual entrepreneurs, a convenient and comfortable regime for applying a uniform tax on imputed income (UTII). We also note the positive side of the innovations - cancelling of the mandatory submission of declarations on land and transport tax, the transfer of reporting to an electronic format. 2. The increase in real estate prices and the cancellation of delays under lease agreements for production, warehouse and retail spaces. Despite the fact that, in general, the demand for leasing of industrial buildings decreased as a result of the coronacrisis, the need for free-use premises increased. The cost of buying all types of commercial real estate continues to increase, as it is considered by entrepreneurs as an investment and saving them from inflation. The leasing price also does not show any downward trends. 3. The impossibility of uninterrupted supply of goods, materials, components in the conditions of closed borders. This is especially important, since the Russian economy has not yet overcome its dependence on the supply of equipment, household and computer equipment from Western and Eastern Europe, China, India, and Southeast Asia. If the situation is more favorable with regard to food import substitution, then the lack of domestic developments in the field of high-grade products and modern technologies forces many organizations to stop their work or close until the anti-epidemic measures end. 4. Non-payments of counterparties for previously delivered goods and services, which exacerbate the financial crisis. According to the international information group “SPARK-Interfax”, in the first half of 2020, since April, the number of unpaid invoices from counterparties has significantly increased, slightly more than half of the invoices were paid on time [8]. This caused a chain of mutual non-payments and served as the basis for the closure and bankruptcy of many enterprises. 5. Non-fulfillment of obligations to banks on loans and payment of lease payments. This problem is compounded by the fact that from April 1, 2021, the regulatory reliefs providing for preferential credit conditions and credit holidays introduced during the pandemic are being terminated. Against the background of the growth of
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non-payments, the Bank of Russia recommends that credit institutions accelerate the collection and write-off of overdue debts, in order to prevent a decrease in the level of liquidity of the banking system, citing the fact that a poor-quality loan portfolio can cause a loss of investor confidence. 6. The tightening of penalties, which negatively affected financial and credit resources of commercial organizations suffering from the pandemic. In 2020, new types of fines were introduced for individuals and legal entities, and tariffs for existing fines were increased. Entrepreneurs, first of all, had to face such types of fines as: – for non-compliance with the requirements related to ensuring the safety of people; – for violation of data transmission to the monitoring system for participants of the pharmaceutical market; – for violating license requirements or working without a license in the field of power/electricity supply; – for non-compliance with the instructions of authorized bodies (in particular, Rospotrebnadzor), etc. The amount of fines varies from several thousands to millions of rubles. 7. The growth of the costs of entrepreneurs as a result of the introduction of new imputed costs. In particular, the application of mandatory labeling of goods affects the turnover of retail trade, since the costs on purchasing equipment for labeling should be borne by private business, while the costs of cash registers and software for only one retail facility is about 40 thousands rubles. In case of non-compliance with the requirements of the law, entrepreneurs will face fines, seizure of unmarked products, and in case of violations in the amount of more than 1.5 million rubles criminal liability. This is a blow to the smallest businesses, small shops in the districts and in the countryside, farms. The result is an increase in the cost of goods against the background of a decrease in household income. All these problems require a comprehensive approach and timely solutions. Undoubtedly, the anti-crisis measures taken by the state in relation to providing assistance to individuals representing the most vulnerable categories of the population-families with children and low-income citizens, deserve attention. Social payments stimulate effective demand, however, they lead to filling the budget only indirectly, through the collection of VAT from the goods sold. If we support the production sector directly by providing financial and credit resources to Russian commercial organizations, both small, medium and large, systemically important, then investments will generate profit and, thus, will begin to lead to an increase in the amounts of taxes collected, without raising rates and tightening fiscal policy. It is necessary to review the volumes of state aid provision in the direction of increase. The Russian Government allocates 1.4 trillion rubles to overcome the consequences of the coronacrisis, this is about 1.3% of GDP, while much larger allocations are set in Western countries. Thus, tax and budget expenditures, taking into account the benefits provided to entrepreneurs, amounted to 6% of GDP in Canada, 9.7% of GDP in Australia,
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10.5% of GDP in the USA, and 4.9% of GDP in Japan [11]. Taking into account the fact that the volume of Russia’s GDP, both as a whole and per capita, is significantly less than in these countries, it is obvious that the allocated funds are not enough to solve anti-crisis problems. The system of state support measures for commercial organizations may include various tools: 1. Tax preferences. In Russia, the measures taken are limited not so much to the allocation of funds, as to the introduction of deferrals on taxes and other mandatory payments, insurance premiums for small businesses, that is, mainly at the expense of extra-budgetary funds, and not the federal budget. Nevertheless, tax preferences will allow investors to optimize financial flows. The provision of preferential regimes to system-forming organizations will strengthen economic growth, fill the commodity market and create jobs. 2. Budget investments in infrastructure projects with a calculated payback, effective examples of which are investments in transport infrastructure, logistics, oil refining, and the development of biotechnologies within the framework of public-private partnership. The implementation of self-funding infrastructure projects is carried out in accordance with the list approved by the Decree of the Government of the Russian Federation No. 2044-r of November 5, 2013 [2]. Preference is given to projects whose implementation allows to use all the advantages of the digital economy. 3. Loans provided by banks with state participation. Currently, it is advisable to provide a program of preferential lending at a rate not exceeding the key rate of the Bank of Russia by more than 3%. The provision of deferred payments on the main debt and interests during the first year of using the loan will allow entrepreneurs to restore their financial condition and reach the pre-crisis level of development. 4. Reduction of mandatory expenses of entrepreneurs, including reduction of insurance premiums for small businesses, subsidizing the costs of paying wages to entrepreneurs who retain regular staff, partial compensation for costs of labeling goods. If the state believes that thanks to labeling, the work of logistics chains will be improved, which will reduce turnover costs and optimize business processes, provide protection against counterfeits of brands of conscientious commodity producers, then it is advisable to encourage the introduction of labeling with financial measures. It is particularly necessary to emphasize the need to use the means of the National Welfare Fund (NWF) [2] to finance measures to overcome the consequences of the 2020 pandemic, the dynamics of which is shown in Fig. 2.
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16000 14000 12000 10000 8000
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6000 4000 2000 44136
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Fig. 2. Dynamics of the amount of funds of the National Welfare Fund from 01.01.2019 to 01.01.2021 ( Source: author).
Despite some volatility in the first half of 2020, there is a general trend towards an increase in the volumes of NWF funds both in rubles and in US dollars: if on January 1, 2019, the volume of NWF funds was 58 billion dollars, then on January 1, 2020 it was 125.5 billion dollars, and on 01.01.2021 it was more than 183 billion dollars [5]. The NWF belongs to the stabilization resource fund, and the search for the most suitable model of its use can be based on the experience of such funds as the Norwegian State Pension Fund “Global”, the investment funds of the United Arab Emirates, Kuwait and Qatar, the Public Investment Fund and the State Oil Fund of Azerbaijan. Currently, the total volume of the National welfare Fund in ruble equivalent is almost 13.5 trillion rubles. The government of the Russian Federation has the right to invest the funds of the National Welfare Fund accumulated over 7% of GDP, but prefers to keep reserves. The problem is that the normative legal and methodological documents do not contain the principles of managing the funds of the National Welfare Fund, if they exceed more than 7% of GDP. We believe that the statutory regulations that apply to the rules for spending funds of the NWF need to be improved, this also applies to assessing the effectiveness of expenditures on projects financed by the NWF. Various forms of state support at the expense of the National Welfare Fund are possible, including: – direct allocation of resources to cover the budget deficit and financing of current government expenditures to maintain macroeconomic stability, including anti-crisis payments to entrepreneurs; – investment of funds in the assets of the banking system within the country for the subsequent support of domestic producers by providing loans at a reduced interest rate;
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– investing in the domestic market, through participation in the financing of infrastructure projects, the acquisition of shares of commercial organizations, investments in high-tech industries. In the process of using the funds of the National Welfare Fund, budgetary, commercial and social efficiency should be taken into account, it is necessary to diversify financial and investment flows so that when the demand for raw materials decreases and prices for them decrease, Russian entrepreneurs can enter the world market with competitive products, which will lead to an increase in GDP, tax and non-tax budget revenues. Cash flow management at the state and international levels requires the introduction and improvement of modern digital technologies, and therefore the Ministry of Finance of the Russian Federation, together with the Bank of Russia, is organizing the development of a strategy for the development of the financial market until 2030, the main task of which is to increase the level of digitalization, develop competition and ensure financial stability at the macroeconomic level [5].
4 Discussion As the global pandemic and the global crisis continue, the discussion about the procedure for disposing of budget funds, which is planned with a deficit for 2021, and the National Welfare Fund, whose capitalization reached a historical maximum, is becoming more acute. Representatives of the Bank of Russia, the Ministry of Finance of the Russian Federation, the Ministry of Economic Development, a number of economic scientists express their point of view. The Bank of Russia adheres to the strategy of preferential investment of NWF funds in foreign assets and foreign currency. Representatives of the Ministry of Finance believe that it is advisable to invest part of the NWF funds in foreign stocks, government bonds and bonds of high-quality corporate borrowers. Domestic investments should not exceed 15–20% and should be allocated mainly on the principles of public-private partnership [9]. The Ministry of Economic Development suggests to direct the funds of the NWF to export loans, preferential creation of service centers for Russian products, placement of production abroad and, in general, to support exporters [9]. Major foreign economists note that the stock market is sensitive to political decisions made by the state in connection with the spread of the pandemic in the field of monetary and fiscal policy [1]. According to Pan and Narayan, as the virus spreads and various political responses measures are taken, the countries of the world should adopt the most successful solutions from each other [6]. Professor of the Institute of Economics of the Russian Academy of Sciences, Doctor of Economics Zeldner analyzes the NWF as a source of innovative development and structural modernization of the Russian economy [11]. He emphasizes the need to change the budget rule, according to which it is impossible to spend more than the amount of lost incomes from the sale of oil below the base price from the NWF. This actually hinders the growth of the economy, industrial production, and slows down investments. An increase in the cut-off price would allow increasing investments in stimulating the economy and would help to overcome the dependence on raw materials. Head of the Financial Research Laboratory of the Gaidar Institute for Economic Policy Vedev believes that the NWF
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needs to increase the level of transparency of its functioning, for which it is necessary to publish more detailed information about the strategic and actual distribution of assets in investment portfolios, about the results of investment and audit reports [9].
5 Conclusion At the stage of overcoming the crisis caused by the COVID-19 pandemic, Russian commercial organizations faced many problems, including: the tightening of tax legislation and penalties, the increase in costs and prices, violation of the terms of materials supply, goods, components, non-payments of counterparties, the growth of credit dependence. The solution of these problems is impossible within the limited frameworks of the private enterprise sector. Thus, for the revival of the Russian economy, it is necessary to provide state support to entrepreneurs and find sources of funds for this, which at the federal level can be budget funds and extra-budgetary funds, resources of the banking system, funds and reserves. Assistance to commercial organizations can be provided in the form of providing tax preferences, making budget investments in self-funding infrastructure projects, affordable and preferential loans, compensations of mandatory expenses, etc. For these purposes, we consider it necessary to use part of the funds of the National Welfare Fund. In the conditions of increasing the volumes and speed of information and cash flows, digitalization will optimize existing processes through the introduction of transformational technologies, which will contribute to the further development of state policy in the field of entrepreneurship support. Acknowledgements. The author expresses his deep gratitude to the Doctor of Economics, Professor Kovaleva T.M. for the recommendations and comments made during the preparation of the article.
References 1. Baker, S.R., Bloom, N., Davis, S.J., Kost, K., Sammon, M., Viratyosin, T.: The unprecedented stock market reaction to COVID-19. Rev. Asset Pricing Stud. 10(4), 742–758 (2020) 2. Decree of the Government of the Russian Federation No. 2044-r of November 5, 2013 “On approval of the list of self-supporting infrastructure projects implemented by legal entities in whose financial assets the funds of the National Welfare Fund and (or) pension savings held in trust by a state management company are placed on a refundable basis” (2013). http://gov ernment.ru/docs/7991/. Accessed 4 Aug 2021 3. Federal Statistical Service: On the financial results of the organizations’ activities in 2020 (2020). gks.ru/bgd/free/B04_03/IssWWW.exe/Stg/d02/41.htm. Accessed 4 Aug 2021 4. FinExpertiza: A year of trillion-dollar losses: The fall in Russian business profits turned out to be a record for 12 yearswebsite 2021 (2021). finexpertiza.ru/pressservice/researches/2021/god-trillionnykh-ubytkov/. Accessed 4 Aug 2021 5. Ministry of Finance of the Russian Federation Homepage. minfin.gov.ru. Accessed 4 Aug 2021 6. Phan, D.H.B., Narayan, P.K.: Country responses and the reaction of the stock market to COVID-19: a preliminary exposition. Emerg. Mark. Finance Trade 56(10), 2138–2150 (2020)
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7. Salisu, A.A., Ebuh, G.U., Usman, N.: Revisiting oil-stock nexus during COVID-19 pandemic: Some preliminary results. Int. Rev. Econ. Finance 69, 280–294 (2020) 8. SPARK-Interfax 2020 (2020). spark-interfax.ru/articles/chast-rossiyskogo-biznesaperestala-oplachivat-scheta-vesnoy-2020. Accessed 4 Aug 2021 9. The Accounting Chamber of the Russian Federation 2020: Report on the results of the expertanalytical event “Monitoring and evaluation of the effectiveness of the placement and use of funds of the National Welfare Fund, including those aimed at financing infrastructure projects, in 2018–2019” (2020). https://ach.gov.ru/upload/iblock/437/437783d8dad23e0620 12fd6e5934f233.pdf. Accessed 04 Aug 2021 10. The Federal Tax Service Homepage. nalog.ru 11. Zeldner, A.G.: Management of the National Welfare Fund in the conditions of the coronacrisis. Econ. Sci. 5(186), 209–211 (2020)
New Technologies in the Digital Environment of the Information Society
Big Data Regulation: The Main Risks and Ways to Neutralize Them E. L. Sidorenko1(B) and Z. I. Khisamova2 1 Moscow State Institute of International Relations (University) of the Ministry of Foreign
Affairs, Moscow, Russia 2 Krasnodar University of the Ministry of Internal Affairs of Russia, Krasnodar, Russia
Abstract. The work reveals the key risks and problems associated with the ubiquitous circulation of big data. Big data, which initially had the character of a local technology, in the last decade has outgrown the main tool for building a successful business. Meanwhile, at the international level, to date, no single approach has been developed to regulate this area. The distinction between the concepts of “big data” and “personal data”, which are regulated in most jurisdictions, also causes certain difficulties. The main problem today is the lack of internationally accepted principles governing the responsible attitude to the processing and use of data. The main purpose of the study is to formulate the key priorities for regulating the legal relations under consideration based on the study of the key risks of using big data. The authors summarize the need for an early adoption at the international level of global initiatives to regulate the responsible attitude to the processing of both big data and personal data. Keywords: Big data · Data ethics · Ensuring balance · Legal regulation · Personal data
1 Introduction In 2006, the famous mathematician Humby declared data to be the new oil [4]. Since then, the amount of data produced by humanity and digital technologies has grown many times. So, in 2013, the volume of information stored in the world was estimated at 1.2 zettabytes (about 1.2 trillion. gigabytes) [24], with an increase to 40 zettabytes by 2020 [14]. However, already in 2017, according to the forecast of IDC, the total volume of information reached these indicators, and continues to double every 2 years [15]. Technologies for working with big data are used in almost all sectors of the economy. If a few years ago, announcements about the introduction of big data meant pilots and approbations, now organizations are seriously engaged in developing corporate strategies for working with data, taking into account business tasks and the formation of technological infrastructure [23]. The demand for big data is clearly demonstrated by the rapid growth of the market. In September 2020, Research And Markets agency published a report on the global big data analytics market. According to the published information, the global market for big data analytics is estimated at 41.85 billion dollars © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 239–247, 2022. https://doi.org/10.1007/978-3-030-94873-3_29
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by the end of 2019. According to analysts, it will grow to 115.13 billion dollars, with an average dynamics of 11.9% during the forecast period from 2020 to 2028 [32]. In 2021, the total volume of global market for big data analytics increase by more than 2.5 times compared to 2016 and will amount to 67.2 billion dollars [13, 25]. Big data technology along with other information technologies and products against the background of the pandemic requires addressing the problem of ensuring cybersecurity. In the Research And Markets report “Big data security market by components, technologies (IAM, security Information and events management, intrusion detection system/intrusion prevention system, UTM), deployment, industry size (SMEs, large enterprises) and geography - global forecast for 2027”, the global big data security market is estimated at 19.5 billion US dollars in 2020. In the context of the crisis, it is projected to reach 54.9 billion US dollars by 2027 [31], it will grow by an average of 16% in the period 2020–2027. Today, it is impossible to imagine a highly profitable business that did not adopted data processing technology [2]. Organizations using big data increased their productivity by an average of 5–6% per year [5]. Big data technology, recognized as one of the end-to-end technologies in the framework of the national program “Digital economy” [27], is used in almost all sectors of the economy. The fundamental laws and policy documents adopted in the Russian Federation also rely on big data [29, 30]. According to the strategy for the development of the big data market until 2024, developed by the Big Data Association together with the Boston Consulting Group (BCG), the overall economic effect and revenue growth of all industries in Russia due to the use of big data processing results in the medium term can range from 1.2% to 3% of GDP [27]. The above figures demonstrate the unprecedented benefits that big data promises to multinational corporations and states. Meanwhile, the collection of big data is inextricably linked to the problem of ensuring confidentiality. As the chairman of the Management Board of Sberbank, German Gref, rightly noted, just 11–12 likes are enough to make the model’s predictions coincide with the assessments of your behavior by colleagues, and 230 will give us the opportunity to understand you better than your loved ones [18]. Thus, the totality of even depersonalized data can make it possible to identify a person, which inevitably leads to the problem of interference with privacy and confidentiality. According to experts, intense activity in social networks contributes to the deanonomization of users and the establishment of their friendly networks (social graph) [26]. Thus, it can be stated that the huge amounts of personal data of users available through the Internet, despite their actual depersonalization, make it possible to quickly deanonymize their owners. In this aspect, the legislation on personal data is of particular importance [35]. In the context of the rapid expansion of the scope of big data, it becomes the main barrier to preventing abuse. It’s necessary to create appropriate regulatory frameworks in this area [40].
2 Methodology The methodological basis of the study is a systematic approach. The study categorized and analyzed policies, laws, and regulations on big data in a number of countries. When selecting countries for the study, the main priority was given to countries whose jurisdictions have a greater global impact on the collection, processing and storage of big
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data. In addition, preference was given to countries with the greatest innovation potential and influence on global policy. When studying countries, official sources, especially government websites, were mainly used. When processing the actual material, such traditional scientific methods as dialectical, logical, the method of scientific generalizations, content analysis, comparative analysis, synthesis, source studies, etc. were used. Their application made it possible to ensure the validity of the analysis, theoretical and practical conclusions and developed proposals.
3 Results It should be noted that at the moment there are a number of key issues related to big data that need legislative regulation. These issues and their resolution within the framework of existing global approaches are covered in this study. There are three approaches to regulation in the world. The European approach, which is based on the GDPR regulation, is based on the characterization of big data through the prism of personal data, which leads to strict regulation of the user data protection. The second approach, implemented in the United States, is also called market-based, where data turnover is subject only to certain requirements aimed at ensuring the confidentiality of personal data, in the absence of a single regulatory mechanism, the desire of the legislator to maintain a balance between private interests and the desire to ensure the growth of innovation and the development of digital technologies, where the processing and analysis of big data is a key element. The country gives greater preference to self-regulation of the industry. The third approach - Chinese, is a symbiosis of the two before-mentioned approaches, but under the auspices of the state. As a result, protecting the information of national companies allows businesses and the state to implement innovative services and systems. In the Russian Federation today there is no single mechanism for ensuring security of big data. The main attention of the legislator is focused on the protection of personal data. Thus, the key law aimed at the protection of personal data - Federal Law No. 152FZ of July 27, 2006 “On personal data" [12], which entered into force on January 26, 2007, presumes principles that are identical to European legislation [10], in particular, they are aimed at ensuring transparency of the procedure for processing and storing data, as well as the responsibility of persons responsible for the processing of personal data [12]. Meanwhile, the sphere of self-regulation of the industry is also actively developing. In particular, the Code of ethics for the use of data was developed – a document of selfregulation of the industry, which sets out the basic principles and norms of fair data handling [3]. 12 major companies of the Russian market have already joined the Code [27]. In general, the construction of a regulatory system that is adequate to the existing threats should be based on three “pillars": the extraterritorial effect of laws due to the lack of borders on the Internet and on the web; the commitment to the principle of priority protection of privacy; as well as the principle of closer sectoral regulation of those areas where the protection of personal data is of high priority [22].
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4 Discussion Understanding the issues of legal regulation is impossible without determining the nature of the phenomena and processes that are the subject of regulation. There is currently no consensus in science about the nature of big data. A review of international experience in the field of big data regulation shows that at present, there is not only no unified approach to regulation in different states, but also no unified terminological dictionary. The term Big Data did not received a regulatory definition in any of the world’s jurisdictions, although there are different working definitions in national jurisdictions [11]. A number of consulting companies, defining the concept of big data, refer to its features. Thus, big data is understood as a set of data whose size exceeds the capabilities of typical databases for entering, storing, managing and analyzing information [25]; big data combines techniques and technologies that extract meaning from data at the extreme limit of practicality [37]. The European Data Protection Inspector (EDPS) assumes that big data means large volumes of different types of data produced at high speed from multiple sources, which require new and more powerful processors and algorithms to process and analyze it. EDPS points out that not all of this data is personal, but many players in the digital economy are increasingly relying on large-scale collection and trading of personal information [9]. EDPS warns that in addition to the benefits, these growing markets pose certain risks to human rights for privacy and data protection [39]. For a long time, the most widely known was the approach to defining big data through the combination of three features: large volume, variety of data, and velocity of their change. This approach is called “three V” [42]. Nowadays, two more features supplement this approach: the value of the data and their veracity. In February 2020, the Ministry of Communications published on the portal regulation.gov.ru a bill to regulate big data. The document is an amendment to the Law “On information, information technologies and information protection” [34]. Under the definition of big data, the document assumes a set of non-personalized data, classified by group characteristics, including information and statistical messages, information about the location of movable and immovable objects, quantitative and qualitative characteristics of activities, behavioral aspects of movable and immovable objects, obtained from various data owners or from various structured or unstructured data sources, through collection using technologies, data processing methods, technical means that combine the specified data set, its reuse, systematic updating, the form of presentation of which does not imply their attribution to a specific individual [19]. In the context of the study, the concept of “big data analytics” is also of interest. The most successful definition given in the work of Treleaven, Barnett, and Koshiyama: big data analytics is the process of studying vast and diverse data sets to identify hidden patterns, trends, customer preferences, etc. One of the most interesting areas for intelligent algorithms is behavioral and predictive analytics. Behavioral analytics focuses on providing information about people’s actions, while predictive analytics extracts information from existing datasets to identify patterns and predict future outcomes and trends [36].
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As noted earlier, the benefits of big data analysis for the modern digital economy are not appreciated. Analyzing large data pools is particularly useful for optimizing production and logistics processes. Almost every machine in these industries now is equipped with some combination of sensors, cameras, and GPS transmitters and generates a lot of data when used. Data analysis allows to create a completely different production structure; processes can be more flexible and scalable, saving significant resources and costs [22]. At the same time, like any innovation, big data, along with other innovations, has significant risks. Let’s look at them in more detail. 1. Violation of conceptual fundamental rights. Tracking the behavioral patterns of users through the analysis of data received from mobile devices, GPS transmitters, household and other communication devices practically deprives a person of the right to privacy, i.e. of the one of the basic rights. 2. The problem of maintaining anonymity and the safety of personal data in the processing of big data. Knowing an individual’s personality and behavior can easily lead to a loss of human autonomy in decision-making and start manipulations [17]. The danger of manipulating the individual is diverse and begins with the commercial interests of companies seeking to change consumer purchasing decisions [7]. The main problem in the regulation of big data is to find a compromise between the focus of the digital environment on removing unnecessary legislative and administrative barriers and the need to protect personal data of individuals, since a significant part of big data, in one way or another, concerns the collection of information about specific subjects. Russian Federal Law of July 27, 2006, N 152-FZ “On personal data" [12] largely reflects the principles of protection and processing of personal data, which are accepted in Europe [8]. Thus, the key principles are: mandatory receipt of voluntary informed consent from the subject of personal data, restriction on the use of personal data for purposes other than those stated in the consent of the subject, prevention of merging databases containing personal data, as well as the principle of the possibility of identifying the subject only to the extent necessary for the purposes of processing. These principles undoubtedly correspond to the interests of the subjects of personal data processing, however, they significantly complicate the work with big data. Meanwhile, many experts note that they are in direct contradiction [20]. Depersonalized personal data is often used for a second time in the framework of analytics, while the legislation on personal data significantly restricts the possibility of such use due to the fact that the subject, within the framework of informed consent to the processing of personal data, cannot physically give consent to all companies that process big data, which is why such consent is fictitious [28]. 3. Lack of differentiation and separate legal regulation regimes for big data and personal data. The lack of a clear definition of big data at the international level led to a situation where absolutely all data, structured and not structured, despite their depersonalization, fall under the regime of regulating the turnover of personal data. In the EU, this approach is due to an expanded interpretation of definitions given in the GDPR. In the United States, we will note the case of USA v. Jones in 2011, this trial limited the large-scale collection of location data by the police [16]. In the United Kingdom in the case of Google Inc. v Vidal-Hall & Others The Court of
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Appeal was asked to decide on the interpretation of the Data Protection Act 1998. The case concerned complaints of Apple’s Safari browser users who believed that Google collected data through this browser in violation of the Data Protection Act 1998. The court held that the browsing information could be personal information, and the misuse of personal information should be considered an offense [1]. In the Russian Federation, judicial practice on this gap issue goes along the path of recognizing the processing of users data without their consent, even from publicly available sources, as contrary to the legislation on personal data (Ruling of the Russian Federation of 29.01.2018 N 305-KG17–21291 in the case N A40– 5250/2017 – bringing to justice LLC Double, which collected user data from social networks in order to form their credit rating) [33]. That is why there are currently initiatives in the business environment to differentiate data regimes, as well as to create specialized intermediaries for storing metadata registers. 4. Discrimination due to imperfect data processing. The problem of social inequality was and now remains one of the actual problems in modern society. Active adoption of digital technologies was initially evaluated by politicians around the world as an opportunity to overcome this inequality. However, it quickly became clear that data-based discrimination tends to exacerbate existing social inequalities. The algorithms underlying predictive analytics are based on such objective factors as the level of solvency, consumer preferences, types of social connections, as well as certain behavioral aspects, ignoring ethical aspects, which ultimately leads to even greater discrimination of the most vulnerable social groups, for example, restrictions on access to certain benefits. We should also focus on the social rating program introduced in China, which is based on total control and restriction of citizens’ rights, based on the patterns identified in their behavior through data analysis. 5. Unjustified restriction of rights. Decisions about the approval of loans, the selection of candidates for service and other important aspects of economic and social life in modern reality are increasingly carried out automatically by software algorithms. These decisions often have important consequences for an individual’s economic and social well-being, especially if they are wrong. However, nowadays, there are no transparent algorithms on how to challenge a decision made based on data analytics [6]. 6. Finding a balance between state regulation and self-regulation of the industry. Currently, there is a process of active discussion about finding balance in the regulation of big data. There are examples of successful cooperation between business and the state. For example, the British government gave DeepMind access to depersonalized data of 1.6 million patients, so that smart algorithms could help doctors to treat patients with kidney failure [41]. However, in general, the discussion on this issue remains open.
5 Conclusion The study demonstrates the need for more close attention to the problem of big data turnover. The Law faces significant new challenges that should be thoroughly studied
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and leveled. Personalization (the use of services, information and knowledge) in the data network creates new unregulated scenarios of public relations. The comparison of risks and opportunities clearly shows the need for appropriate regulation of big data to protect the rights of individuals to privacy and non-discrimination [21, 38]. This aspect is especially relevant for the most socially vulnerable segments of the population. Today, it is becoming clear to the global community that privacy is a public and collective issue. And ensuring a balance between privacy, security, non-discrimination, on the one hand, and the promotion of digital innovations, on the other, requires the creation of a global digital legal culture, as well as the improvement of national and international legal frameworks, the harmonization of approaches implemented in different jurisdictions, including the use of a unified conceptual framework.
References 1. 5RB: Vidal-Hall v Google Inc. https://www.5rb.com/case/vidal-hall-ors-v-google-inc/. Accessed 21 Mar 2021 2. Agrawal, R., et al.: The claremont report on database research. Communications of the ACM. https://doi.org/10.1145/1516046.1516062. Accessed 21 Mar 2021 3. Analytical Center under the Government of the Russian Federation: Data use code of ethics. https://ac.gov.ru/projects/project/kodeks-etiki-ispolzovania-dannyh-5. Accessed 21 Mar 2021 4. Bhageshpur, K.: Data is the new oil - And that’s a good thing. https://www.forbes.com/ sites/forbestechcouncil/2019/11/15/data-is-the-new-oil-and-thats-a-good-thing/?sh=29698c ce7304. Accessed 21 Mar 2021 5. Brynjolfsson, E., Hitt, L.M., Kim, H.H.: Strength in numbers: How does data-driven decisionmaking affect firm performance? https://ssrn.com/abstract=1819486. Accessed 21 Mar 2021 6. Casanovas, P., De Koker, L., Mendelson, D., Watts, D.: Regulation of Big data: perspectives on strategy, policy, law and privacy. Health Technol. 7, 335–349 (2017) 7. Cavoukian, A., Castro, D.: Big data and innovation, setting the record straight: deidentification does work. http://www2.itif.org/2014-big-data-deidentification.pdf. Accessed 21 Mar 2021 8. Convention for the protection of natural persons in the automated processing of personal data (Concluded in Strasbourg on 28.01.1981). http://www.consultant.ru/document/cons_doc_ LAW_121499/. Accessed 21 Mar 2021 9. EDPS: Big data and digital clearing house. https://edps.europa.eu/data-protection/data-pro tection/reference-library/big-data-and-digital-clearing-house_en. Accessed 21 Mar 2021 10. European Union Agency for Fundamental Rights: Handbook on European data protection law - 2018 edition. https://fra.europa.eu/en/publication/2018/handbook-european-data-protec tion-law-2018-edition. Accessed 21 Mar 2021 11. Executive Office of the US President: Big data: Seizing opportunities, preserving values. Interim progress report. https://obamawhitehouse.archives.gov/sites/default/files/docs/201 50204_Big_Data_Seizing_Opportunities_Preserving_Values_Memo.pdf. Accessed 21 Mar 2021 12. Federal Law “On personal data” of 27.07.2006 N 152-FZ. http://www.consultant.ru/doc ument/cons_doc_LAW_61801/. Accessed 21 Mar 2021 13. Frost & Sullivan: Global Big data analytics market fueling artificial intelligence, predictive analytics and security applications present key growth opportunities. https://go.frost.com/ LA_PR_ICT_FValente_K444_BigDataAnalytics_Aug20. Accessed 21 Mar 2021
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14. Gantz, J., Reinsel, D.: The digital universe in 2020: Big data, bigger digital shadows, and biggest growth in the far east. http://connections-qj.org/article/digital-universe-2020-bigdata-bigger-digital-shadows-and-biggest-growth-far-east. Accessed 21 Mar 2021 15. IDC: Results of the IDC study. Big data analytics as a business innovation tool. https://fil earchive.cnews.ru/img/files/2019/05/27/20190424idchitachiwpbdafin.pdf. Accessed 21 Mar 2021 16. In the Supreme Court of the United States No, 10–1259 United States of America, Petitioner v. Antoine Jones. https://www.justice.gov/sites/default/files/osg/briefs/2011/01/01/2010-1259. mer.aa.pdf. Accessed 21 Mar 2021 17. Kim, Y.: The European Union’s regulative direction of information - Focusing Big data regulation issues. IT Law Rev. 20, 129–164 (2020) 18. Kinyakina, E.: Big money from big data: What was discussed at the Forbes conference. http://www.forbes.ru/tehnologii/362377-bolshie-dengi-ot-bolshih-dannyh-o-chem-gov orili-na-konferencii-forbes. Accessed 21 Mar 2021 19. Korolev, I.: The authorities are beginning to regulate big data. Roskomnadzor will keep the register. URL: https://www.cnews.ru/news/top/2020-02-17_vlasti_nachinayut_regulirovat. Accessed 21 Mar 2021 20. Lane, J., Stodden, V., Bender, S., Nissenbaum, H.: Privacy, Big Data, and the Public Good: Frameworks for Engagement. Cambridge University Press, Cambridge (2014) 21. Laney, D.: 3D data management: Controlling data volume, velocity and variety. https://www. bibsonomy.org/bibtex/742811cb00b303261f79a98e9b80bf49. Accessed 21 Mar 2021 22. Lenz, R.: Big data: Ethics and law. https://www.chedteb.eu/media/attachments/2019/09/18/ big-data---ethics-and-law.pdf. Accessed 21 Mar 2021 23. Lindell, J.M.: Big data history – Big data sources and characteristics. https://doi.org/10.1002/ 9781119784692.ch2. Accessed 21 Mar 2021 24. Mayer-Schoenberger, V., Kukier, K.: Big data. A revolution that will change the way we live, work, and think. Mann, Ivanov and Ferber, Moscow (2014) 25. McKinsey Global Institute: Big data: The next frontier for innovation, competition, and productivity. https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/McK insey%20Digital/Our%20Insights/Big%20data%20The%20next%20frontier%20for%20i nnovation/MGI_big_data_full_report.ashx Accessed 21 Mar 2021 26. Narayanan, A., Shmatikov, V.: De-anonymizing social networks. https://www.cs.utexas.edu/ ~shmat/shmat_oak09.pdf. Accessed 21 Mar 2021 27. National Programm “Digital Economy”: Big data regulation. https://digital.ac.gov.ru/opi nions/4284/. Accessed 21 Mar 2021 28. Nissenbaum, H.: The meaning of anonimity in an information age. Inf. Soc. 15(2), 142 (1999) 29. Order of the Government of «On approval of the Strategy for the Development of the information technology industry in the Russian Federation for 2014–2020 and for the future until 2025». http://www.consultant.ru/document/cons_doc_LAW_154161/. Accessed 21 Mar 2021 30. Order of the Government of 01.11.2013 N 2036-r On Approval of the Strategy for the Development of the Information Technology Industry in the Russian Federation for 2014–2020 and for the future until 2025. http://www.consultant.ru/document/cons_doc_LAW_154161/. Accessed 21 Mar 2021 31. Research and Markets: Big data security market by component, technology (IAM, security information and event management, intrusion detection system/intrusion prevention system, UTM), Deployment, industry size (SMEs, large enterprises), and geography - Global forecast to 2027. https://www.researchandmarkets.com/reports/5144606/big-data-securitymarket-by-component-technology. Accessed 21 Mar 2021
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Mathematical Model of Rational Location of Augmented Reality Objects in User’s Environment M. V. Alpatova1 , A. V. Glazkov2(B) , and Yu. V. Rudyak1 1 Moscow Polytechnic University, Moscow, Russia 2 State University of Management, Moscow, Russia
[email protected]
Abstract. The growth in the number of applications using the technology of tagless augmented reality makes us think about the approaches and methods of developing AR applications in general. This work considers an example of a mathematical model that allows calculating the optimal location of a virtual object in the user’s environment. The side data obtained when considering a mathematical model can be used to visualize hints in the user interface and control the placement of an augmented reality scene. The main idea of the algorithm for the rational location of a virtual object is to constantly evaluate the scanned space and compare its parameters to the pre-laid properties of the virtual object. Based on this comparison, it is possible to make recommendations on the placement of a virtual reality object in such a way that its location does not complicate interaction with the object and physical reality. Keywords: AR · Augmented reality · Mathematical model · Parameters of virtual objects · User interface · UX
1 Introduction Markerless Augmented Reality (Markerless AR) is becoming more and more popular every day. This technology offers a lot of functionality and opportunities to get the most immersive user experience and more and more mobile devices coming out are able to support this technology [1]. Such trends inspire developers to release more and more applications using tagless AR, but for most ordinary users, this experience is completely new, so it is very difficult for them to figure out how to use such software products. That is why it is necessary to begin to formulate the main problems that users face while working with augmented reality and find solutions to them [3]. In particular, this class of tasks can also be relevant in the field of agriculture for designing the infrastructure of farms and their arrangement.
© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 248–254, 2022. https://doi.org/10.1007/978-3-030-94873-3_30
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2 Methodology The bulk of applications using the tagless AR technology contain a user script that begins with the installation of a virtual object in the real user space. The user does not know exactly the dimensions and features of the virtual object, especially at the time of the first launch of the application. In this connection, there is a threat that the user will place the virtual object in an inconvenient place for interacting with it, because of which the impression will be spoiled, both about the software product and about the very idea of using AR technology. Moreover, today there are no scientific methods and approaches to solving this class of problems in the industry, and the only source of guidelines for the development of AR UX is Apple Inc. corporation as the most advanced company in this field. In this article, it is proposed to create an algorithm based on a mathematical model and fuzzy logic that prompts the user with the help of application interface elements about the most rational and convenient place for the location of a virtual object. Let’s divide the possible user environment into two categories that can be used for the initial design of the augmented reality scene: – indoor rooms, Indoor; – external spaces, Outdoor. The gaming component of an AR application strongly depends on these characteristics, and along with it, the developer’s idea of how much free space the user will have for interacting with virtual objects. Within the framework of this article, the case of Indoor user experience will be considered, because it is the limited free space that requires a more thorough analysis and advanced tools to determine the optimal location of virtual objects in the most comfortable way for the user. The parameters of the source scene can be any and are determined dynamically in real time during the AR session itself as the mobile device scans the space around the user. Scanning takes place by obtaining various information from the phone’s sensors, such as a camera, gyroscope, LiDAR (if available) [5] and others, and then its further transformation into a virtual 3D map of the world, which is superimposed 1 to 1 on the real surface. The virtual map consists of a cloud of key points (feature points) [2]. The points lying on the same level are determined by the device as an AR plane, on which, as a rule, a virtual object is placed in the future. These planes can distinguish the following parameters available for development: – – – –
the XYZ coordinate of the location in 3D space; linear dimensions; surface area; type (horizontal/vertical).
To develop the mathematical model described in the article, it is proposed to take the following minimum necessary parameters for virtual objects placed in space:
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– linear dimensions (LxWxH); – comfortable delta-distance around the object that provides the proper level of user experience of interacting with it. To denote the sides of the AR scene, we will write it into a cube, the center of which is located in the center of the coordinate system (0, 0, 0) (Fig. 1). Let the X-axis reflect the horizontal movement of the object to the right (1) and to the left (−1), the Y - axis – the vertical movement of the object up (1) and down (−1), and the Z-axis-the movement in depth further from the user (1) and vice versa closer to the user (−1).
Fig. 1. Vectors of the sides of the virtual object ( Source: authors).
Let’s suppose that during the design of an AR application, the developer laid down a user scenario in which a virtual object should be located on a horizontal plane (for example, on a table or on the floor), and free access to this object is necessarily required from the front side, and it would also be nice to be able to view it from different sides, as well as from above. Let’s make the following program model describing the characteristics of the object, presenting it in the form of a table (Table 1). Table 1. Model of AR object parameters Vector (side)
Priority
Comfort line (m)
Right, + X
Average
0.5
Left, −X
Average
0.5
Up, + Y
Average
0.5
Down, −Y
Low
0
Forward, + Z
High
1
Back, −Z
Average
0.5
Source: authors
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The presented table formalizes the description of the virtual object from the previous paragraph. We will introduce three categories of priorities to indicate the significance of the object sides and by an expert assessment, based on our knowledge of the size of the object and an interactive scenario with it, we will set our own values for the width of the comfort zone for each of the sides. Thus, it was found that the lower side of the object is not significant, because the object will be installed on a horizontal plane, so the user will not see this part of the scene. The front side of the scene is given the highest priority, so it is necessary to lay the maximum free space along this vector. Figure 2 shows the visualization of the priorities of the parties for traversing the AR model.
Fig. 2. Visualization of the priorities of approaches to the AR model ( Source: authors).
3 Results In order to be able to display hints and recommendations on the location of the virtual scene in the user interface, it is necessary to analyze information about virtual planes from the sensors of a portable device and correlate it with the sizes of the AR object and the comfort zones embedded in it. We introduce the following optimality criteria for this. K 1 - a criterion or coefficient that characterizes the current status of the placement of a virtual object. The optimal placement in this case is considered to be the state when the linear size of the free physical space is greater than or equal to the linear size of the object being placed. Thus, for each of the axes, the following relations are obtained: K1X =
X0 Z0 Y0 ≤ 1, K1Z = ≤ 1, K1Y = ≤1 XP ZP YP
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where X0 and Z0 - linear dimensions (width and depth, respectively) of the virtual object, XP and ZP are the linear dimensions (width and depth, respectively) of the available plane in space, Y0 - linear size of the object height, YP - available height in physical space, depends on the Indoor/Outdoor characteristics. K 2 - a criterion or coefficient that determines how the amount of free space around the virtual object being placed corresponds to the comfort value preset by the developer. Let’s consider the construction of the criterion K2 on the example of the X-axis (for the other two axes, this criterion is defined in the same way). To begin with, we will determine the comfort on the right for a given location of a virtual object: X+ , X+ < D+ D + , K+ (X+ , D+ ) = 1, X+ ≥ D+ where X+ - the actual x-axis distance from the edge of the object to the right edge of the scanned plane, D+ - preset comfortable distance for this object. Similarly, the comfort on the left is determined: X− , X− < D− D − K− (X− , D− ) = , 1, X− ≥ D− On the X-axis, ideal comfort can be achieved if condition K+ (X+ , D+ ) = K− (X− , D− ) = 1 is met, which can not always be achieved. If the condition XP − DX + − DX − < X0 < XP is met, i.e. the size of the object is smaller than the size of the area in which this object is embedded, but together with both comfort zones it no longer fits there, comfort has to be sacrificed. At the same time, there should be no "distortions" when high comfort on the left is achieved by low comfort on the right, and vice versa. In order to prevent this from happening, we will strive to make the loss of comfort on both sides the same. To do this, we introduce the function: K2 = (K− − K+ )2 We will consider the optimal placement to be such that the minimum of this function is achieved. Obviously, min (K2 ) is reached when the condition is met: K− = K+ We will consider this ratio as the optimality criterion.
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Let XP be the linear size of the free niche, and XO let be the linear size of the object along the selected axis. Let’s consider a critical situation when an object with the comfort zones required for it does not fit completely into an accessible niche: XO + DX − + DX + > XP Since X+ and X− are related to each other by the ratio. X+ = L − l − X− , then K− = K+ the optimal placement of the object is obtained from the optimality criterion: X− = (L − l)
DX − , DX − + DX +
X+ = L − X− = (L − l)
D+ DX − + DX +
A similar calculation is performed for each vector (X, Y, Z) in both directions + (1) and – (−1).
4 Discussion The main idea of the algorithm for the rational location of a virtual object is to constantly evaluate the scanned space and compare its parameters to the pre-laid properties of the virtual object. The obtained coefficient values can be used to visualize hints in the user interface and control the placement of the augmented reality scene. For example, the space around the model (the areas on its different sides according to the directions of the vectors) can be colored with a red-green gradient, depending on the presence of a free niche for installing an AR object.
5 Conclusion It is believed that no one is talking about AR now, because in the near future they will go through the stage of “the abyss of disappointment” in the Panetta technology maturity cycle [6]. As you can see, AR technology is now almost at the very bottom of the “abyss of disappointment”. Ivanova comments on the situation as follows: this can be explained by the difference in expectations based on the results of testing samples of developments and programs for augmented reality that were released for mass use [4]. At the current stage, flaws in any complex technologies are usually detected. The main problem of AR technology is that society especially believes in it, but currently has no clear ideas about how this technology should be implemented and used at the household level. Poor user interface and intuitive incomprehensible mechanics spoil the impression of the product and the augmented reality technology in general. The entry point to the AR application is the installation of a virtual object in the user’s environment. Modern AR applications try to implement this algorithm based on subjective experience and “pulling” ideas from each other. That is why a scientific approach is extremely necessary to solve many AR problems.
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References 1. Brito, P.Q., Stoyanova, J.: Marker versus markerless augmented Reality. Which has more impact on users? Int. J. Hum.–Comput. Interact. 34(9), 819–833 (2018) 2. Goshtasby, A.A.: Feature point detection. Theory and Applications of Image Registration. Wiley, Hoboken (2017) 3. Irshad, S., Rohaya, D., Rambli, B.A.: User experience of mobile augmented reality: a review of studies. In: Proceedings of the 3rd International Conference on User Science and Engineering (i-USEr), pp. 125–130. IEEE, New York (2014) 4. Ivanova, A.V.: VR & AR technologies: Opportunities and application obstacles. Strateg. Decisions Risk Manage. 3(108), 88–107 (2018) 5. Jiang, J., Wang, J., Wang, P., Bao, P., Chen, Z.: LiPMatch: LiDAR point cloud plane based loop-closure. IEEE Robot. Autom. Lett. 5(4), 6861–6868 (2020) 6. Panetta, K.: Top trends in the Gartner hype cycle for emerging technologies (2017). https:// www.gartner.com/smarterwithgartner/top-trends-in-the-gartner-hype-cycle-for-emerging-tec hnologies-2017/. Accessed 08 July 2021
Digital Signals Processing A. V. Zaytsev(B) State University of Management, Moscow, Russia
Abstract. Digital signal processing (DSP) started in the fifties of the last century - at a time of the appearance of computers. At first, it was an ultra-new direction, which was perceived as exotic - due to the limited possibilities at that time, the need to promote a fundamentally new direction in signal processing was not obvious. But with the development of various mathematical algorithms, digital processing began to find application in more and more new areas, which caused a rapid increase in the number of its supporters. Now the field of application of digital signal processing algorithms is wider, and the processing is often much simpler than that of analog methods. The reasons for such a DSP success will be described in this contribution. Keywords: Fourier transformation · Convolution · Signal · Filtering · Digital processing
1 Introduction Signal (from the Latin signum - sign) is an information function that reports on the state of any value at a given time. Any signal received by a person or device can be continuous-analog or discrete. Analog signal - the transmitted parameters are a function of time, and the set of values of this function is infinite. A discrete signal is a signal that takes any value at a certain point in time and is equal to zero at the rest. In a discrete signal, only the discretization interval is quantized, the signal value is not quantized. An example is the temperature information from the sensor, which is polled by the system with an interval of T. If a discrete signal is quantized by level, that is, the signal takes some fixed values at certain points in time, then such a discrete signal is called digital. The values of the digital signal do not exactly correspond to the values of the analog signal, but take the nearest allowed values. Such an error is unavoidable when digitizing analog signals and can be minimized by increasing the bit depth of the analog-to-digital converter of the ADC [5]. But the complexity of the equipment inevitably leads to its rise in price. A digital signal can be rewritten from one digital data carrier to another almost an unlimited number of times. At the same time, there will be no loss of information, no interference. The analog signal always loses some of its information during rewriting and becomes overgrown with new noises.
© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 255–261, 2022. https://doi.org/10.1007/978-3-030-94873-3_31
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2 Methodology Signal processing - performing actions on a signal to change its characteristics (amplification, noise suppression) or highlight the information contained in the signal. Analog signal processing includes such simple actions as: addition and subtraction of signals, multiplication and division. As well as integration, differentiation, filtering and others. According to audiophiles, an audio signal that has undergone only analog processing, including recording to an analog medium, is better in quality than similar signals in the processing path of which there is digitization. We would also like to highlight that the percentage of people with such hearing is very small. Digital signal processing is a method of processing based on numerical methods using digital computing technology. Analog signal processing consists of three stages: 1. The formation of a digital signal x(nT ) from an analog signal x(t) that came from the source (LPF ADC). 2. Conversion of the received digital signal x(nT ) to y(nT ) a certain algorithm (DSP device). 3. The formation of an analog signal y(t) from a digital signal y(nT ) (DAC+ADC). The structural diagram of the device in which the digital processing of the analog signal takes place is shown in Fig. 1.
x(t )
LPF
ADC
Device DSP
DAC
ADC
LPF
Fig. 1. Block diagram of an analog signal processing device (Source: author).
The digitization of the signal is based on the principle of Kotelnikov’s theorem – an analog signal with a finite spectrum is completely determined by the sequence of its samples taken with the interval T < 1/F, where F is a high frequency of an analog signal. In simple terms – the sampling frequency of the signal must be at least twice as high as the maximum frequency of the digitized signal. In this case, the signal can be completely restored. If the condition of Kotelnikov’s theorem is not met, then the signal recovery will occur with an error. For example, if the sampling frequency is 10 kHz, then the maximum theoretical (in practice, you need to take some margin, the signal frequency is taken 0.3–0.4 of the sampling frequency) frequency of the analog signal to be digitized will be 5 kHz. If a harmonic with a frequency of, 8 kHz appears in the signal, then at the output it will turn into a harmonic with a frequency of 10–8 = 2 kHz. Therefore, in order to avoid such troubles, a low-pass filter is placed at the ADC input, which will not miss frequencies above 5 kHz – half of the sampling frequency (in this example).
3 Results Analog-to-digital conversion includes time sampling of the signal, level quantization and digital encoding [5]. In accordance with the specified algorithm, the input digital
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signal x(nT ) is converted into an output digital signal in the DSP device y(nT ). The DAC receives an analog signal quantized by the level from the digital output signal. Analog-to-digital and digital-to-analog conversions are not mutually reversible due to irreversible quantization errors. The output LPF limits the spectrum of the output signal, thereby smoothing it. The main tasks of the DSP are [3]: 1. 2. 3. 4. 5.
Spectral analysis. Linear filtering. Convolution of signals. Time-frequency analysis. Adaptive filtering, etc.
In the 19th century, the French mathematician Jean-Baptiste Joseph Fourier showed that any function that meets the Dirichlet conditions (the function must be bounded, piecewise continuous and have a finite number of extremums throughout) [1] can be decomposed into a series, later called the Fourier series. This decomposition found wide application in radio engineering; with its help it became possible to convert a nonharmonic signal into a sum of harmonic signals. There is a direct Fourier transformation and an inverse one. In the direct transformation, it allows to get its spectrum from the original signal, and the reverse, respectively, on the contrary, to get a signal from the spectrum. Direct Fourier transformation [6]: +∞ s(t)e−2π ift dt S(f ) = −∞
where s(t) is the initial signal, S(f ) is the Fourier image, the argument of which is the frequency. The inverse Fourier transformation is similar [8]: +∞ s(t) = S(f )e−2π ift dt −∞
When performing this transformation using digital methods, integration is replaced by summation. The Fourier transformation for a discrete signal has the form: direct
S(k) =
N −1 1 s(n)e−2π ink/N , k = 0, . . . N − 1 N n=0
and the opposite
s(n) =
N −1 k=0
S(n)e2π ink/N , n = 0, . . . N − 1
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To reduce the calculations, there is a fast Fourier transformation (FFT) [4]. Direct calculation of all N coefficients will require N 2 computational operations. The essence of the fast Fourier transformation is that the original N-point sequence is divided into two N2 - point sequences, from which the original one can be restored. But then we will 2 2 need N2 · 2 calculations, that is N2 , twice less. Let’s look at how it turns out. N
N
N −1 2 −1 2 −1 1 −2π ink/N −2π ik(2m)/N s(n)e = s2m e + s2m+1 e−2π ik(2m+1)/N S(k) = N n=0
N 2
=
m=0
−1
s2m e
−2π ikm N2
+ e−2π ik/N
m=0
m=0
N 2
−1
s2m+1 e
−2π ikm N2
m=0
The peculiarity of this method is that as long as m is even, you can use this method repeatedly, each time twice reducing the number of calculations [10]. Signal filtering is needed to increase the signal-to-noise ratio. At the same time, it is necessary to try to suppress the interference in such a way that the useful signal suffers as little as possible. Linear digital filtering [7] is an algorithm for processing a discrete signal that allows multiplication of its elements by a number, delay by an integer number of ticks, and addition. As a result, a certain frequency range is suppressed. In general, a digital filter is described by a linear difference equation: y[n] =
N
ak x[n − k] +
k=0
N
bk y[n − k]
k=1
where x[n] is the input signal y[n], and is the output signal of the filter, respectively. The block diagram of the digital filter is shown in Fig. 2.
x [ n]
CF
y [ n]
Fig. 2. General view of the digital filter (Source: author).
Convolution is used to calculate the output signal of the system with a known input signal and a known characteristic of the system [9]. A convolution is a correlation function of two functions, one of which is mirrored. Let’s say we have a function consisting of three samples: 1, 3, 2, and the second function consists of four samples: 4, 3, 2, 1. The mirror image of this function will be: 1, 2, 3, 4. At the zero step, the samples intersect with the values 1 and 4. Their production is 4. Further, at the first step, two intersections and the sum of their products will be equal to 15 and so on (Fig. 3).
Digital Signals Processing
k =0 h(0 − m)
259
2
3
1 4
3
2
y (0) = 1 ⋅ 4 = 4
2
1 3
3 4
2
1
y (1) = 1 ⋅ 3 + 3 ⋅ 4 = 15
1
1 2
3 3
2 4
y (2) = 1 ⋅ 2 + 3 ⋅ 3 + 2 ⋅ 4 = 19
k =3 h(3 − m)
1 1
3 2
2 3
4
k =4 h(4 − m)
1
3 1
2 2
3
4
k =5 h(5 − m)
1
3
2 1
2
3
k =1 h(1 − m)
1
k =2 h(2 − m)
y (3) = 1 ⋅1 + 3 ⋅ 2 + 2 ⋅ 3 = 13
y (4) = 3 ⋅1 + 2 ⋅ 2 = 7
y (5) = 2 ⋅1 = 2
4
Fig. 3. Explanation of the principle of obtaining a convolution (Source: author).
The result of the convolution is shown in Fig. 4. 0 4
1 15
2 19
3 13
4 7
5 2
Fig. 4. The result of the convolution of two signals (Source: author).
4 Discussion Time-frequency analysis is a combination of methods and techniques that are used to describe and control signals, the statistics of which changes over time. Time-frequency analysis is widely used in the analysis of musical and speech signals, as well as signals received from medical devices, since they have variable frequency characteristics. Adaptive filtering is extremely difficult for analog signal processing, but it is quite feasible in the form of a digital system. The essence of the work is that the system analyzes a process consisting of a mixture of signal and noise using some adaptive algorithm. Next, the signal is fed to a controlled digital filter, the parameters of which can change. The signal from the output of the digital filter is fed to the adder, where it is added to the input signal. In this case, it turns out that the noise components are mutually extinguished, and the signal-to-noise ratio increases. In the next cycle, the process at the output of the system will be different and other system settings will be required to optimize filtering.
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That is, the system adapts the filter to the current conditions on each cycle. That is why the filter is called adaptive. Figure 5 shows a block diagram explaining the principle of its operation. signal+noise Digital filter
noise
−
∑
+ Signal evaluation
Adaptive algorithm
Fig. 5. Block diagram of the adaptive filter (Source: author based on [2]).
5 Conclusion As you can see, digital signal processing, due to its huge power, penetrated into all areas of signal processing, somewhere completely, and somewhere almost completely replacing analog processing. This is quite logical – after all, digital processing devices can be implemented not only in hardware, but also in the form of a program. From time to time, the program can be updated, thereby improving the devices or adapting them depending on the tasks set. And it makes no sense to implement them on discrete elements. This applies even to such complex devices as various types of radar stations. What can we say about household appliances, the “filling” of which is much easier. Therefore, we can say with confidence that the future belongs to digital technologies, until they give way to even more progressive and advanced means of information processing.
References 1. Afanasyev, A.A., Rybolovlev, A.A., Ryzhkov, A.P.: Digital Signal Processing. HotlineTelecom, Moscow (2019) 2. Davydov, A.V.: Digital Signal Processing. USMU, IGiG, GIN, Electronic Documents Foundation, Yekaterinburg (2015) 3. Helpiks: DSP subject and tasks (2021). https://helpiks.org/9-31337.html. Accessed 06 Jul 2021 4. Kobernichenko, V.G.: Fundamentals of Digital Signal Processing. Publishing House of the Ural University, Ekaterinburg (2018) 5. Kurenev, A.N., Petukhov, P.E.: Digital Signal Processing. YarGU Publishing House, Yaroslavl (2019) 6. Magazinnikova, A.L.: Fundamentals of Digital Signal Processing. Publishing House “Lan”, Saint Petersburg (2016) 7. Smith, C.: Digital Signal Processing. DMK-Press Publishing House, Moscow (2018) 8. Solonina, A.I.: Digital Signal Processing in the Mathlab Mirror. BHV-Petersburg, Saint Petersburg (2018)
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9. StudMe: Discrete convolution of signals and z-transform theory (2021). https://studme.org/ 171396/tehnika/diskretnaya_svertka_signalov_teoriya_preobrazovaniya. Accessed 06 Jul 2021 10. Zolotukhin, V.V.: Methodical instructions for laboratory work No. 3 “Analysis and synthesis of digital filters in the MATLAB program” on the discipline “Digital signal processing” (2017). https://www.sibsau.ru/sveden/edufiles/127965/. Accessed 06 Jul 2021
Management of Accumulated Information A. E. Makarenko(B) State University of Management, Moscow, Russia
Abstract. The purpose of this study is to identify the requirements for a structured digital data storage system. The aim of the study is to study the features of the accumulation and use of heterogeneous information. The contribution notes the tendency of increasing the volume of personal electronic archive and discusses the problems caused by the use of stored materials, as well as assesses the possibilities of available means to solve these problems. The structures of personal professional archives are studied, the lack of their uniformity even within the framework of one type of activity is noted. The nature of the accumulated information is analyzed, the practice of naming files of different types when saving them to a local computer is studied, the efficiency of information search by various criteria is evaluated. The expediency of developing a software application for managing information stored in an individual electronic archive is shown. Based on the results of the research, the main requirements for such a data warehouse are formulated. Keywords: Accumulation of information · Archive structure · Heterogeneous information · Information search · Personal digital archive · Software application
1 Introduction A person in the modern world every day learns a large amount of new information. We immediately dismiss some of it as unnecessary, we get acquainted with some of it -cursorily or carefully, after which it ceases to interest us. But a certain amount of information seems so useful to us that we want to save it in our computer so that we can work with it later without searching such information in the Internet. Moreover, often the search for information and working with it are necessary for the implementation of professional tasks. As a result, information is accumulated on our hard drives or in cloud storages. We return to some part of it, but we miss some part of it: we simply forget that we have it. Or we know that we have saved it, but we can’t find where exactly. At the same time, the information does not cease to be useful or interesting. Therefore, the problem of storing and managing the collected information is becoming more and more urgent. Personal archives formed during the professional activities of researchers, teachers and representatives of creative professions can be important not only for the fund-builder himself, but also represent a public value [8]. In this regard, the importance of a meaningful and intuitive personal digital archive storage system increases. Researchers discuss various aspects of the problem of collecting and managing the collected information. The article [1] notes the rapid increase in the volumes of available © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 262–269, 2022. https://doi.org/10.1007/978-3-030-94873-3_32
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text data, the complexity of working with vast amounts of information is noted, and the use of structural thematic modeling in discursive analysis is suggested. The study [7] discusses the reasons for the accumulation of large amounts of digital data and methods of information management. The authors’ attention is focused on the consequences of such accumulation. This publication does not analyze this issue, it concerns the usability of the collected materials. Working with huge amounts of information, the constant need to quickly identify the necessary data in the course of performing labor functions can have an unfavorable load on the human psyche, leading to professional burnout, studies are devoted to this problem [2, 6]. In one article, the effectiveness of the use of information technologies for the prevention of professional burnout is justified [6]. The work [9] is of interest. The authors discuss the development of software that collects screenshots, stores information about them in a searchable database and is able to extract text and images in order to perform psychological analysis. The idea of developing a software application for managing accumulated information seems to be correct, although the tasks of this article differ significantly from the tasks of this publication. The researchers note that the introduction of special software for storing information will solve a number of problems associated with joint design and requiring careful documentation [4]. The methods of using such an application should be intuitive to the user. The significance of this approach and the ways to achieve the desired result are considered in the study [5].
2 Methodology Every person whose activity is connected with working on a computer sooner or later faces the question: where and how to store the information accumulated during the implementation of labor functions. As a rule, it is not difficult to answer the question “where?”: the storage location must have sufficient volume, ensure the security of information, allow unhindered access to it at any time and support the tools necessary for work. The question “how?” does not arise immediately, because at first there is not too much information, and, provided that the storage logic and meaningful naming of files and directories are followed, the file system makes it relatively easy to find the necessary information. However, over time, the amount of data increases-sometimes arithmetically, and often exponentially. At the same time, both quantitative and qualitative changes occur: in the course of labour activity, new aspects and directions are revealed that require the creation of new catalogs and an increase in the depth of investment. And most importantly, the variety of information is expanding, both by files type and by content. Situations where a document must be accessible from two or more directories are particularly difficult. Synchronization partly helps to solve the issue of consistent content change, but its sloppy application is fraught with complete loss of information. A good solution to the problem is to create symbolic links [10] or shortcuts [3] when working on Linux or Windows operating systems, respectively. They provide storage of a file or folder in a single sample with the ability to access it from different places. Their disadvantage is the loss of performance when transferring information from one operating system to another. The search for the necessary information in the computer using the tools provided by the operating system is very inefficient, which is clearly visible when compared with
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the search on the Internet. Such a search takes a lot of time, even if the search area is localized, especially if you have to search not by the name of a file or directory, but by a fragment of content. At the same time, it is not possible to find an image, audio or video file by its contents at all. Thus, the capabilities of the file system become insufficient for effective work with information: successfully coping with the task of storage, they cease to satisfy us in terms of describing data and searching for it within the local computer. One of the ways to solve these problems can be a software application that provides not only rational placement of files on the hard disk, but also makes it possible to form a descriptive block that will allow to easily and conveniently navigate the accumulated information. The creation of such a software application requires studying the structure of personal electronic archives, assessing the nature of the accumulated information to determine a rational storage system, identifying user-friendly ways to form a descriptive block, as well as taking into account the requirements for the subsequent use of the collected data. The present work is devoted to the study of the features of the accumulation and use of heterogeneous information. The purpose of the study is to formulate requirements for the storage system. The set of identified requirements is the foundation for the development of a convenient information management system. The structure of a personal digital archive. Structuring the information accumulated in a personal digital archive is the most important stage necessary to ensure effective search and convenient navigation. The totality of information that requires storage will be different for various areas of human activity. It is difficult to talk about any general trends in the accumulation of private information. However, it can be expected that within the same professional sphere, the structures of archives will be similar. Confirmation of this hypothesis would allow us to equip the storage system with ready-made templates, which would make it easier for the user to structure information. The nature of the accumulated information: classification by source of origin and the practice of naming files. The whole set of information stored on electronic media can be conditionally divided into two categories: 1 - documents created in the course of labor or other activity by the subject himself; 2-documents whose authorship does not belong to the subject, but for one reason or another are of interest to him. Each of the categories has its own characteristics. The content of documents belonging to the first category are thoroughly familiar to the subject. As a rule, he can easily describe them briefly, so when giving a name to a file, he is likely to choose the optimal one: reflecting the essence of the stored information, but not too long. Moreover, the time required for naming is very insignificant in comparison with the time spent working on the document. The more organized the subject, the higher the probability that the system of storing such documents will be more logical and convenient. However, we note that, unfortunately, this is not a generally accepted rule. This was confirmed by an experiment involving 60 volunteers whose work or training involves creating files. Each of the participants was asked to choose one of the folders on their computer where they save their files or subdirectories, and submit 10–15 names of the objects contained there. Folders with photos whose names were generated automatically during copying did not have to be selected. The results of the experiment
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are presented in Sect. 3. Anyway, finding the necessary information in personally created documents is not the most difficult task. Documents belonging to the second category are not the author’s property of the subject, therefore they are not initially familiar to him. When the amount of data to be reviewed is small, and time allows, there are no problems. But if you need to make a thorough search and collect information in a limited time, it is more convenient to firstly save everything that may be useful or interesting, and get acquainted with the information and select the necessary after. The assessment of potential suitability is made on the basis of the title of the document, at best – the annotation, if there is one. After that, the document is saved in a folder. The lack of time when collecting information often leads to giving the saved files little informative names, most often it turns out to be generalized (group) name in the combination with the serial number. As a result, a folder is formed containing several dozen of files, whose names make it impossible to judge the content. And this is in the best case, since the folder can also contain nested directories with files. Evaluation of the effectiveness of information search by various criteria. In order to assess the effectiveness of finding the necessary information, an experiment was conducted in which 60 volunteers aged 18–22 years took part. The experiment included three stages. The first stage was of an auxiliary nature, during which the reading speed of each of the participants was determined. At the second stage, each participant was offered a list of author’s titles of 100 articles, 15 of which related to some problem. It was necessary to find the maximum number of these articles. The search time was limited and was determined for each participant individually, based on his reading speed. The search was given the time necessary and sufficient to read all 100 titles of articles. The protocol of the experiment recorded the total number of documents found and the number of documents selected by mistake. The third stage was similar to the previous one. The difference was that the search should be performed not by the name of the document, but by its brief description (no more than 2 lines). The conditions for conducting all stages (monitor, text type and size, etc.) were the same. Each stage was preceded by at least 15 min of rest. The search in the experiment was carried out using text documents. The search for non-text documents was not specifically studied, since it is often not possible to determine their author’s name, and the search for a brief description does not differ from the search for text documents. All participants of the experiment performed the same tasks at each of the three stages. Only the execution time differed, since it was determined by the individual reading speed. In this regard, the relative difference in time spent during the second and third stages was the same. It should be noted that the described experiment is of an evaluation nature, but this is enough to identify trends and form recommendations based on them.
3 Results The structure of a personal digital archive. The study was carried out by analyzing the professional personal archives of volunteers of two groups: teachers of higher educational institutions and representatives of science. 24 people took part in the experiment. A comparison of the structures in the first group showed that they all have a number of similar blocks: information sources, lecture material, sets of tasks for laboratory and
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practical works, organizational materials. However, the archives of teachers of different disciplines differed significantly both in quantitative and qualitative terms. A comparison of the structures in the second group showed that they are very much dependent on the field of scientific activity. It was possible to trace the similarity only at the most general level: the sources of information, the research conducted and their results. The nature of the accumulated information: classification by source of origin and the practice of naming files. The results of the experiment, which allows to identify the principles of forming the names of file system objects, are presented in Table 1. The following abbreviations are used in the Table: D – a time characteristic (date or year); N – a number in order; S-a name reflecting the essence of the stored information; O - a generalized (group) name; R – an arbitrary set of symbols or a default name. Table 1. Choosing the principles of constructing the names of file system objects Quantity
%
Type of object names
Examples of object names
4
6.7
D_S or S_D
2020_LectEncapsulation
10
16.7
S
LectEncapsulation
6
10
S_N
LectEncapsulation_01
14
23.3
O_D or D_O
Prog_201123
15
25
O_N or N_O
Prog_001
8
13.3
D_N
201123_001
2
3.3
R_N
z01, qwerty_001, New_01
1
1.7
R
111, qwerty
Source: author
As can be seen from Table 1, only 33.4% of the participants in the experiment choose meaningful names. 48.3% use generalized names, differentiating them using a date or sequential number. 13.3% are guided by the date, but this method is convenient if an informative name of the container folder is defined or for naming exclusively monotonous information: for example, when all documents are fragments of a single whole. The remaining 5% of the participants in the experiment name the documents randomly. Evaluation of the effectiveness of information search by various criteria. The results of the experiment, which allows to compare the effectiveness of searching for information by the author’s title of the document and by a short annotation, are presented in Table 2. The table shows the average values. Stage 2 - search by name, stage 3 - search by description.
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Table 2. Efficiency of searching for information on different elements of the descriptive block Stage
Documents selected
Search errors
Quantity
%
Quantity
%
2
11.73
78.2
2.17
14.5
3
14.40
96.0
0.04
0.3
Source: author
The search performance was 63.7% when searching by the author’s title of the document and 95.7% when searching by a short description. The relative difference in time spent during the second and third stages was the same. The third stage required 1.72 times more time than the second.
4 Discussion An analysis of the structures of personal archives has shown that the same information can often be assigned to different categories. The choice of a folder for placing such files is ambiguous, since access to them would be convenient from different places in the catalogue. This implies the need to develop a logical structural hierarchy that is different from the hierarchy corresponding to physical storage. At the same time, the internal logic of placing data in the storage should provide maximum convenience of operation by a specific individual, taking into account his personal characteristics – first of all, the level of competence and psychological characteristics. It follows from the above that the user should be able to independently determine the structure of the information storage and change it as necessary. This does not exclude completing the application with a package of ready-made templates for various fields of activity. Searching for the necessary information in the computer using the tools provided by the operating system is not very effective, since the information is not indexed. The inconvenience is especially noticeable when compared with the search on the Internet. An analysis of the file names assigned by the user when saving to a local computer showed that only a third of them set meaningful identifiers. This suggests that using the file name as a search key is not the best solution, it needs to be more informative. At the same time, it is impossible to focus on the place of physical storage, since the convenience of work requires that the same document can be recorded in several sections. Evaluation and comparison of the effectiveness of searching for information by the author’s title of the document and by a brief annotation showed the following. If the document is not a text document, then an abstract is actually the only acceptable option. Many graphic and media editors allow to provide a file with meta-information, but only a small part of developers use this opportunity. In addition, there is no single way to access this information. Therefore, the abstract must be present in the descriptive block. The search by the author’s name turns out to be quite effective, so you can not refuse this opportunity. Moreover, viewing the catalog in this case requires less time than reading the annotations. However, the name is not always informative enough: in this case, it remains possible to resort to an abstract. When compiling an abstract, it is very advisable
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to use a tag system. This will allow to formalize and speed up its compilation, as well as to simplify the search for this criterion. The survey of the study participants showed that when saving information, they often need to convert the content into a more convenient format. pdf documents, as well as text, tabular, graphic, media files do not need to be converted, but the bulk of information on the Internet is presented in the form of html pages. Such documents, along with the required information, almost always contain navigation blocks, site design elements and numerous advertising inclusions that are useless when saving to a local computer. Unfortunately, many of the documents do not have a “printable” version. Saving “as text” leads to the loss of graphics and formatting, without filtering out the excess. In this regard, documents have to be either saved in their original form, that is, together with unnecessary information, or create a file of a format convenient for further use and manually transfer the necessary content there. At the same time, it is very important to save the address of the resource, which is necessary for compiling a bibliography, and also allows you to re-refer to the original document. This is especially true when saving data is accompanied by their conversion. The information block can be conditionally divided into two parts. The first one includes information that is necessarily recorded when saving the document. These are the categories to which the document belongs, the address at which the document is saved on the local computer, a hyperlink to the original source on the Internet and the author’s name of the document, if there is one. The second part includes an abstract and, possibly, user comments. This data can be entered into the system both when saving and later, during a detailed review of the document.
5 Conclusion The work performed allows us to formulate a number of requirements for the application for managing accumulated information. Let’s list them. 1.
2.
3. 4. 5.
6.
The application must be associated with a database containing catalog information. The recommended set of fields: the author’s name of the document; abstract; hyperlink to the document in the local computer; address in the Internet; notes (notes of the subject after a detailed acquaintance with the document). For a visual representation of the catalog, an html document can be recommended, with information displayed in the form of nested lists. For a multifunctional application, it is advisable to use the visual component “tree” provided by applications development environments. The application should provide the possibility of extracting the author’s name for text documents. The application should contain tools to simplify the formation of a descriptive block. The application should provide functions for working with the file name: transliteration, conversion in accordance with certain rules, the ability to select the base name from the list with subsequent auto-generation. The address of the document in the local computer should be generated automatically.
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7.
The number of operations performed by the user when saving data should be minimal. 8. The control system should provide convenient search in two modes. Firstly, by the fields of the database with the formation of a list of identified documents (in particular, a template search). Secondly, by directly viewing the catalog with the mark of files for automatic selection in the list. 9. The user should be able to register the file in several sections of the catalogue. 10. The user should be able to convert a document containing text into a format that is convenient for him. 11. Working with abstracts should include a system of tags, which will formalize the preparation of an abstract and simplify the search for this criterion.
References 1. Brinkmann, F.: Topical discourse structures: using topic modeling in discourse analysis approaches. Hum. IT 14(3), 83–114 (2019) 2. Cherniakevich, E., Pogodina, E.: The study of emotional burnout in connection with life meaning and career orientations among representatives of socionomic professions. Vestnik Universiteta 1, 195–202 (2020) 3. Demchenko, D.: What are the shortcuts in Windows and how to enable the display of their extensions. https://www.white-windows.ru/kakie-byvayut-yarlyki-v-windows-i-kakvklyuchit-pokaz-ih-rasshirenij. Accessed 07 Apr 2021 4. Díaz, P., Aedo, I.: Combining software engineering and design thinking practices in the ideation process of augmented digital experiences. Interact. Comput. 32(3), 279–295 (2020) 5. Lehane, P.: Use without training: a case study of evidence-based software design for intuitive use. Human Technol. 15(1), 100–135 (2019) 6. Makarenko, A.: Use of information technologies for the prevention of professional burnout of teachers. Vestnik Universiteta 1, 188–194 (2020) 7. McKellar, K., Sillence, E., Neave, N., Briggs, P.: There is more than one type of hoarder: collecting, managing and hoarding digital data in the workplace. Interact. Comput. 32(3), 209–220 (2020) 8. Ostashova, E., Rozhneva, Z.: Personal digital archives: preserve impossible to destroy. In: Proceedings of the II International Scientific and Practical Conference Records Management in the Digital Economy: Interaction Challenges, pp. 279–287, Moscow: RSUH Publishing (2019) 9. Reeves, D., et al.: Screenomics: a framework to capture and analyze personal life experiences and the ways that technology shapes them. Hum.-Comput. Inter. 36(2), 150–201 (2021) 10. Sukhov, I.: How to create a desktop shortcut in Ubuntu 18.04. http://ru.d-ws.biz/articles/ubu ntu-18-04-create-symlink.shtml. Accessed 07 Apr 2021 (2018)
Managing Flexible Systems in Digital Transformation L. R. Tuktarova(B) Samara State University of Economics, Samara, Russia
Abstract. This work focuses on the issues of new management technologies in the period of transformation of innovative potential due to the development of digital platforms and tools. The processes taking place at enterprises in connection with the transition to the digital economy and the implementation of National projects are considered. The necessity of introducing information and digital technologies, innovative products is shown. At the same time, the assessment of the efficiency of enterprises’ activities indicates that a number of them imply further development and increased flexibility of production. These transformations are associated with management technologies that should ensure the dynamic and efficient functioning of a number of industrial enterprises. The efficiency criterion allows analyzing relatively expedient production and management decisions and indicate an insignificant amount of flexible technologies at enterprises that have taken a course for the development of the digital space. The digital environment provides a huge opportunity for the effective development of enterprises, improving flexible management systems and increasing the efficiency of all economic indicators. Keywords: Digital environment · Flexible management technologies · Management and production solutions · Production flexibility · Management technologies
1 Introduction During the transformation of economic relations and the transition to innovative and digital platforms, the issue of information literacy of an effective management process is particularly important. These issues were studied in the works of such scientists as Feldvari, Varga [5]. In Anisiforov’s scientific works, a large role is assigned to the role of informatization and its innovative potential [1]. An important factor for the survival of enterprises in the new digital environment, in addition to marketing components, is investment. Investment potential is a set of factors of production available on the territory and areas of capital application, which includes a number of macroeconomic characteristics, consumer demand of the population and other parameters [2]. Due to this, a comprehensive study of the directions of increasing the efficiency of the enterprise’s © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 270–276, 2022. https://doi.org/10.1007/978-3-030-94873-3_33
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functioning becomes relevant, based on the development of a strategy for their practical implementation in the conditions of flexible management. This direction is quite developed, but so far it was not possible to achieve a unified interpretation on the establishment of economic efficiency and signs of economic efficiency of flexible management. In contrast to the rapid development of marketing systems, the ability to manage flexible technologies is practically absent. Therefore, the purpose of this study was to study such aspects as: – the use of flexible management technologies in the process of transition to the digital economy; – analysis of flexible production management technologies as the basis of enterprise development and key indicators of the evolution of the process approach of business processes. In the digital environment, the main factors for increasing the flexibility of management are the following: – the possibility of creating an effective sales channel for products at the enterprise; – application of new information programs and digital products; – development of intellectual capital, inflexible production do not develop the intellectual potential of the enterprise; – accumulation of creative human capital that can increase the level of knowledge, technologies, and economic growth. Thus, increasing the flexibility of production becomes an objective and necessary tool for the survival and development of the enterprise in the digital environment. The modern era, which is often called the fourth industrial revolution, is characterized by deep contradictions that permeate the entire society, but the initial changes, in our opinion, still lie in the content of labor and the qualitative transformations that occur at this level. Any technologies are ultimately derived from the qualities of a person and the transformation of mainly reproductive labor, characteristic of an industrial society, labor that is primarily creative in nature [3].
2 Methodology The methods of analysis, comparison, induction and deduction were used in the research process. Methods of the theoretical level were used, including formalization and synthesis. The solution of the tasks set in the study was carried out on the basis of general scientific methods. The article used a retrospective and prospective analysis. When developing the methodological approach, logical research methods were used. Theoretical studies and evidences of a new methodological approach to solving this problem are based on the concepts of the general theory of systems. Particularly important, in our opinion, were the methods of conducting marketing studies, such as experiments, surveys, observations, focus groups. Each of the above-mentioned methods is a way to solve problems for an enterprise and a business structure. Flexibility in the development of an enterprise can have certain directions. In particular, as the key directions in strategic management, the concept of flexibility is fundamental, which is why it can be applied to all its components: goals, tasks, plans, management
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decisions, and others. The concept of flexible management is an iterative approach in management, which focuses on the phased implementation of the project, ensuring close interaction of internal and external stakeholders, as well as frequent delivery of the result to the customer. In these cases, it pays great attention to flexible technology, a certain organizational and technological solution of the production process, well adapted to the creation of changeable (within some limits) products. The adaptability of flexible technology to the process of creating these products can be expressed in order to reduce the available costs for current and periodic readjustments of the production process in the conditions of changing products parameters [6]. Thus, a flexible management system is the ability of the management apparatus to coordinate actions, expand views and approaches to any situation. Since the end of the twentieth century, some enterprises increasingly began to use new flexible systems of organizational structures that allow them to produce more advanced and knowledgeintensive products and adapt to new market realities. These systems can be called adaptive, and combined, capable of combining all new technologies.
3 Results In the course of our study, the main tool for the flexibility of the management process was identified - the time factor, during which the processes are able to take place with maximum non-interference of management, without loss of efficiency, independently adapting to the current conditions in the economic markets. Some enterprises implement existing opportunities in order to increase flexibility as much as possible, while others are guided by management models that are formalized by certain authors [9]. Managers often choose the following flexible management technologies: Agile [4], they are needed to make a good decision on many emerging issues that are not inherent in traditional management, for example, when it comes to the necessary order, making the economic system stable [8]. Flexible technologies showed their effectiveness in the process of software development, promoting an innovative product and increasing intellectual potential [4]. It should be emphasized that most of the existing Agile approaches provide an opportunity for a fundamentally new organization of activities in the absence of certainty and continuously transforming conditions, while it cannot be argued that these methods were developed not so long ago. Currently, there are software solutions that have similar functionality and perform work on the flexibility of management. The most famous of them are: – advertisment blocker Adblock Plus; – an additional module of Kaspersky Protection antivirus; – Privacy Badger browser tracking protection system. In order to highlight the advantages of the developed system over similar products and to identify the main differences, the work of all of the listed software products was tested on a test bed. All products were placed in absolutely equal conditions of the test bed. Based on the results of the comparison, some conclusions can be drawn.
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Firstly, most of the existing solutions are aimed only at blocking unwanted elements (analytics scripts, advertising banners) to improve the convenience of viewing pages and only partially prevent tracking methods on the client side. Secondly, none of the products protects against collecting Internet connection parameters and non-trivial tracking methods. As a result, the developed system in the context of preventing tracking of users on the Internet showed twice the best result during a visit to a specially prepared resource than existing well-known products. Flexible technologies contribute to the activation of the involvement and development of enterprise processes by their performers, the formation of cross-functional teams. Nowadays, flexible technologies are considered to be viable in the process of developing new products. The use of agile technologies in 41% of respondents showed that the results of Agile are highly appreciated in the process of using them at enterprises [9]. To demonstrate the system’s performance, it is necessary to conduct experimental studies. The system modules were tested in two stages. At the first stage, a resource was created in the test environment with a pre-known fact of the presence of information collection scripts and advertising banners. Also, the verification condition was the mandatory absence of some domain names of the test environment in the list of signatures, in order to demonstrate the imperfection of using only the signature analysis method and, despite this, to show a successful blocking by the system.At the second stage, the operation of the system will be demonstrated in real conditions when visiting many resources on the Internet. Unlike the test environment (the first stage), the reference values of the number of attempts to collect information cannot be known, so only statistical data on the number of detected and blocked tracking methods will be provided. The algorithm for conducting experiments at both stages is as follows: – – – – –
visiting the resource without using the developed system; visiting the same resource with a low level of protection from tracking; visiting the same resource with an average level of protection from tracking; visiting the same resource with a high level of protection from tracking; generating a report on the results of the modules.
A special resource was created in the test environment. The implementation of this site has only one goal – loading analytics scripts, performing data collection functions and advertising banners and displaying the success of these actions. It is necessary to give an example in order to understand how the user can visually evaluate the operation of the system. In the absence of a tracking prevention system, all analytics scripts are loaded successfully, which is immediately notified by the test resource. When the developed system is turned on, the loading of scripts is immediately blocked. Similarly to this example, other successful blockings of information collection methods are signaled. Different data collection methods were used on the loaded test environment page. Advertising banners are presented in the form of static media files. Analytics scripts are an attempt to create requests (known signatures) for downloading scripts from a third-party address. Attempt to write to local storages is calling the functions for writing parameters to Cookies, LocalStorage, SessionStorage, IndexedDB and WebSQL. Attempts to read
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the IP address parameters are a test of the server’s ability to receive Internet connection data. Attempts to create queries are divided into those whose signatures are not known (unlike analytics scripts) and those whose functions to the call are overdetermined (a non-trivial way). A very important aspect is the relationship between the customer and the client. We suggest considering a module that corrects these relationships and allows building effective work. The “Statistics” module, as well as the module for analyzing monitored parameters, has an informational and advisory nature. Its main task is to collect the available results of the work of other modules and compile a report on the operation of the system based on them for output to the user in a convenient format. Since it is required to cover all sides of the system, the implementation of the module is partially performed both on the client side and on the intermediary server. The statistical data is stored directly in the database on the server side and is sent to the client application on a request initiated by the user through the graphical interface of the extension. In order not to overload the traffic between the client and the intermediary server, the results of the modules on the client side are sent only after another resource is closed. But if the user wants to see the intermediate result of processing a specific page, it is possible to request the current report. Thus, digital transformation is inextricably linked with many aspects of management, and to a greater extent with flexible management systems and innovative technologies.
4 Discussion The analysis of relatively flexible management technologies showed that many Russian enterprises have a high scientific potential of employees and great skills of their work, the possibility of professional development and training in digital technologies, the transition to new tools of effective management. Thus, an important aspect for increasing flexibility in the enterprise is: – price dynamics in relation to profit growth, – product quality improvement, – cost reduction. Another important point, in our opinion, is the determination of the critical boundaries of the economic feasibility of the introduction and use of high-tech equipment, the search for effective technological processes and their optimization based on a systematic approach. In the new conditions, an increase in the competitiveness of the enterprise is coming to the fore, associated with the rational use and management of financial, human, and technological resources at its disposal, the possibility of a quick and adequate response to market requirements. In the digital environment, much attention should be paid to competitive advantages in business, the management of innovative potential, as well as the further development of the management system and the development of new information programs.
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5 Conclusion At the end of this study, it is necessary to summarize and coordinate the processes that allow the use of Agile and other flexible management systems in enterprises: – the process of close and fruitful interaction between the customer and the manufacturer; – development and implementation of an innovative product; – linking to the deadline and budget; – the possibility of reorganization at the enterprise. Despite the well-established organization of the workflow, there are two points that should not be forgotten: the human factor – people working in production tend to make mistakes; the quality and productivity of communications formed in the team and with other participants in the process [7]. Moreover, its marketing processes act as a weak point in an enterprise that is just starting to use a flexible approach in management. The above-mentioned criteria, in turn, will improve all the economic indicators of the enterprise’s activity and allow the enterprise to reach a new level of development in the digital space. This contribution describes various systems of flexible management technologies, and selects the most suitable ones for use in the context of the current task. The development of the system modules and methods of their interaction was carried out. To conduct an experimental study, a test environment was designed that accurately simulates real conditions. In the course of comparing the results of the work of independent modules, it was concluded that the system is most effective when combining various methods. If we consider the performance of each module separately, then the results of their work correspond to the stated requirements, but the best results were shown by the runtime environment isolation module. The developed system meets the following requirements: – – – –
the ability to detect data collection attempts without knowing the signatures; prevention of non-trivial methods; prevention of leakage of Internet connection parameters; the ability to manage the system configuration for flexible configuration for a specific resource.
Thus, flexible management technologies are necessary for enterprises of all forms of ownership, as they allow to increase the efficiency of production processes, strengthen the work of responsibility centers, increase intellectual and innovative potential. Digital transformation with flexible management technologies expands the boundaries of the innovation space and provides an opportunity to increase the rating of the enterprise, its investment attractiveness and business activity.
References 1. Anisiforov, A.B.: Key tasks of information management at the enterprise in the digital economy. In: Schepinin, V.E., Kalinina, O.V., Shirikova, S.V. (eds.) Fundamental and Applied Research
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in the Field of Management, Economics and Trade, pp. 88–93, Saint Petersburg: Peter the Great St. Petersburg Polytechnic University (2018) Bulavko, O.A., Zastupov, A.V.: Cluster approach in innovation and investment development of industrial enterprises. Vestnik Samara State Univ. Econ. 7(153), 30–37 (2017) Chekmarev, V.V., Bulavko, O.A.: Changes in the content of labor and their social consequences: discussion issues. In: Ashmarina, S.I., Mantulenko, V.V. (eds.) IPM 2020. LNNS, vol. 161, pp. 85–91. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-60926-9_12 Chepelevich, K.: Why do marketers like Agile methodologies? https://www.e-xecutive.ru/man agement/practices/1985319-kak-vnedrit-agile-v-proizvodstvennoi-kompanii. Accessed 20 Apr 2021 (2016) Feldvari, K., Varga, M.: Young people as human capital - what type of information literacy education is required? In: Tonkovic, A.M. (ed.), Proceedings of the 6th International Scientific Symposium Economy of Eastern Croatia - Vision and Growth. Medunarodni Znanstveni Simpozij Gospodarstvo Istocne Hrvatske-Jucer Danas Sutra, pp. 318–326, Croatia: Ekonomski Fakultet Osijeku-Fac Economics Osijek (2017) Karpov, A.V.: Psychology of Management. Urait, Moscow (2019) Korgova, M.A.: Management. Management of the organization. Moscow: Urait (2019) Plus: Agile in Russia is being implemented quickly and not only in IT. https://plusworld. ru/daily/cat-analytics/agile-v-rossii-vnedryaetsya-bystro-i-daleko-ne-tolko-v-it/. Accessed 20 Apr 2021 (2016) Zub, A.T.: Management Theory. Piter, Moscow (2020)
The Future of Communication: Artificial Intelligence and Personal Attractiveness L. Filindash1(B) and N. Paudal2 1 State University of Management, Moscow, Russian Federation 2 Lomonosov Moscow State University, Moscow, Russian Federation
Abstract. The problem of personal attractiveness in the process of distant communication is actualized in the era of the multimedia paradigm of modernity. The trend in the development of artificial intelligence, which has caused revolutionary changes in the ways of communication, sets the task of preserving the human in a person in civilizational development. In the course of the research, such methods as systematization, comparison, comparison, typologization, description, epistemological analysis were used. The four original forms of information storage are considered in the context of their specific characteristics of communication. The emphasis is placed on the modern multimedia paradigm, which actualizes the problems of humanitarian discourse. The increase in the role of distant communication is associated with the use of artificial intelligence in the communicative sector of the social sphere. Statistical data on the number of users of social networks are given, the reasons for their popularity, problematic aspects of communication in them are identified. Some features of online communication are identified, which has both positive and negative consequences. Keywords: Artificial intelligence · Attractiveness · Distant communication · Information and communication paradigm quasi-communication · Virtual interaction
1 Introduction The four stages of preserving and translating information are presented as a movement from a stone to a figure. The authors propose forms of social communication corresponding to each of these stages. The relevance of the article lies in focusing on the problem of combining humanitarian and technical discourses. The emphasis is placed on the current stage, the peculiarity of which is the use of artificial intelligence in the multimedia sphere. The authors continue the tradition of studying the anthropological problem in a technocratic society. The comparison of direct and technically conditioned forms of communication allows us to conclude that it is necessary to preserve the role of the creative principle for a person. From this point of view, the individual acts as a guarantor of the humanistic essence of civilization. In the conditions of the development of artificial intelligence, in order to preserve the socio-cultural core, it is necessary © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 277–284, 2022. https://doi.org/10.1007/978-3-030-94873-3_34
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to observe the principle of rational distribution of material and intellectual resources of all mankind. Artificial intelligence currently offers a lot of opportunities for online communication. Such quasi-communication leads to the loss of the features of classical interaction. Currently, the value of attractiveness in communication is being actualized and the need for the revival of its emotive content is growing.
2 Methodology In the course of the research, such methods as systematization, comparison, comparison, establishment of quantitative and qualitative parameters were used. At the same time, the authors turned to the typological method for identifying informative and communicative paradigms. The comparative method is used to find out the similarities and differences between the phenomena and processes under consideration. The analytical and descriptive method was used to study the issue of the coexistence of humans and artificial intelligence. Epistemological analysis was necessary for the introduction of concepts. The method of systematization allowed us to correlate information paradigms with types of communication. Qualitative characteristics of the modern communicative stage are given. The statistical method established the percentage ratio of different virtual communication channels. Content analysis made it possible to systematize digital, philosophical and cultural information presented in scientific works and mass media. The typological method was used to characterize the features of the modern stage of communication. The analysis of the features of online communication contributed to the structuring of various forms of digital communication. The comparison of artificial and human intelligence proved the advantage of the attractive principle in culture.
3 Results 3.1 Information Paradigms and Their Specific Features of Communication Modern high-tech society is based on a special paradigm of creating, storing and transmitting information, which determines the evolving and constantly changing nature of communication. Canadian scientist McLuhan proposed to consider four stages of fixing and broadcasting information-oral, written, printed, multimedia [14]. All of them radically changed the nature of communication, which at the present stage of the information society is not only of scientific interest, but also has practical significance. The first stage is associated with the oral nature of the transmission of knowledge that has come down to our days in religious beliefs, traditional medicine, works of such literary genres as legends, epics, myths. The oral form of recording culturally significant information is the most difficult to study, although it has additional narrative sources – drawings, petroglyphs, writings, pictograms. This ancient sign system became the basis of a unified language and facilitated communication. The period of pre-written transmission of information is the longest in history (VII-IV-III thousand. B.C.). The second, written stage of information storage, which changed the nature of communication, is associated with the appearance of syllabic and phonetic writing in the
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states of ancient civilizations. The creation of writing, its possession by a select circle, contributed to accelerated stratification, which led to a variety of forms of communication between social strata and the emergence of new roles in the communicative process: an official – a petitioner, a writer – a reader, a teacher – a student, a philosopher – a philistine. The appearance of written legislation and documented obligations brought to life a normalized, formalized communication regulated by the power structure. The next communicative paradigm is related to the printed form of information storage. This was made possible thanks to such a revolutionary innovation as the printing press, invented in the middle of the XV century. A huge array of printed information has become a means of forming public consciousness, developing the humanities and exact sciences, politics, technology, etc. People of intellectual work who possess “book wisdom” have reached the level of universal knowledge. A new type of communication has emerged, based on the available volume of printed materials for representatives of the enlightened community. It can be called rational-epistemological, since temporary, geographical, and national restrictions were removed. This paradigm made it possible to present different opinions, ideas, theories, views that won both supporters and opponents. Along with the creative intention, the influence of printed works in society led to a clash of estates, classes, social groups, subcultures, which was reflected in state, confessional, and civilizational conflicts. The predominant form of communication has become a mass form of communication, which has raised problems of accessibility, reliability, and efficiency of information flows. Situational oral forms of mass communication (lecture, debate, sermon, public speech, agitation) were combined with direct appeals to the written heritage of scientific, philosophical, and artistic content. This stage is characterized by the expansion of the time, topographical, national framework of communication. Printing has played the role of the dominant means of accumulating and transmitting information for more than five hundred years, during which the social significance of literature has increased, as well as the volume of recorded information has increased many times. A new, fourth stage of the communicative revolution is the multimedia paradigm (English multimedia, from Latin. multum – a lot and media-medium-the center; means). Technological systems that provide all forms of communication – from interpersonal to mass-can be considered examples of artificial intelligence [3]. Innovative interfaces are able to process, classify information, offer the correct algorithm for solving tasks, make the right selection, reducing the role of a person in the processes of cognition and communication. Berdyaev, Ellul and others posed the problem of the coexistence of man and technology, the preservation of the creative role by man [1, 6]. Thus, according to Berdyaev, the “technical era”, the time of the domination of the indifferent machine, will be replaced by the victory of spirituality, not by the rejection of technology, but by its subordination to the humanistic values of life [1]. The emergence of technicist concepts that affirm the value of technical development for the Earth’s civilization as a whole casts doubt on the humanistic perspective. In particular, Dessauer believes that technological progress is not only the result of the manifestation of the laws of nature, but also the embodiment of the supreme mind of the Creator [4].
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At the new stage of communication, the subject acts in a triune role – the creator/performer, the consumer/spectator, observer/ expert. Such multiplicity complicates the qualitative functioning of communication participants, which is expressed in a decrease in cognitive abilities. Thus, each paradigm of storing and transmitting information led to serious sociocultural changes, creating communicative innovations. At the same time, at each subsequent stage, the previous types of interaction were preserved. The communicative consequences of the information boom are impossible to predict, since technological changes occur continuously. 3.2 Social Networks as a Promising Communication Functionality The era of digitalization has caused an increase in the importance of communication using interfaces. Mobile phones with applications, tablets today play the role of artificial intelligence [3]. A particularly significant area in Internet communication is associated with social networks. The expansion of the number of networks is associated with the opportunity to provide a platform to people with certain life aspirations [2]. Social networks have become one of the available ways of communication, which has led to their more active use in different countries. In particular, in Russia, the average user’s communication time on the TikTok platform has increased from 5.6 to 17.4 h per month. Among the popular reasons for turning to social networks, the need for communication is 26.8%, to share your own opinion - 23.4%, to meet new people - 21.3%, to solve work issues – 20.3%, to tell about the events of your life – 16.3%, to discuss the problems of gender groups [12]. The widespread use of social networks is ensured by cross-border, democratic pricing policy, increasing the speed of information transfer, improving technology and offering new devices by the market. Social platforms are widely used in order to create their own positive image of communication participants. Not only well-known bloggers, but also ordinary users recommend evaluating the declared information, photos and opinions with likes. The criterion for the popularity of people who have their own accounts is not the originality of thoughts, the creativity of actions, the depth of the content of a creative project, but the number of approval marks [5]. Social networks allow a person to become a participant in a session with famous people. The new Clubhouse network quickly gained popularity with such a marketing move as inviting successful entrepreneurs, titled athletes, famous politicians, famous artists, and outstanding scientists as speakers. This social network is attractive for people who want to improve, get up-to-date knowledge, who want to realize themselves in promising areas of activity. Mass communication of people of different levels of education, interests, and intellectual development leads to the dominance of ordinary and even base topics – material status, income, infidelity, establishing kinship, changing appearance, gender – everything that concerns a person’s personal life and until recently was not the subject of universal attention. As a result, this is expressed in a decrease in culture, a drop in speech literacy, a blurring of the value orientations of those communicating. Philosophers warned about the diverse dangers of the influence of artificial intelligence in the XX century. Thus,
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Ellul claims that technology standardizes human behavior and makes it an object of “calculation and manipulation” for broadcasting “banality and emptiness” [6]. It is obvious that social networks can be dangerous for the individual and society, popularizing the activities of organizations banned in the country. The pursuit of likes, approving comments leads to extravagant actions, actions close to hooliganism. This leads to changes in the psyche of bloggers, their fans and followers, who mirror the facts, recognizing anti-human actions as positive, worthy of approval and imitation. The distribution of such content among numerous subscribers is fraught with the loss of humanistic principles, the degradation of the individual, which calls into question the nature of the future society. Futurologist, author of the term “virtual reality” Jaron Lanier summarizes the dangers of online contacts in social networks, paying attention to the loss of individuality, loss of emotionality and will. The negative consequences of communication in social networks take on such a threatening size that the authorities are actively trying to counteract this. Despite all the imperfection of the legislative framework in the field of cybersecurity, there are examples when the state is forced to restrict or prohibit the activities of social networks. In conclusion, it can be argued that social networks guarantee a person distant communication on various types of activities and interests, including for entertainment, educational purposes, and assistance in solving social and everyday problems. At the same time, social networks are a significant danger, since they teach the user to perceive any information uncritically, calling him to instant reflection, response, action. Often, the proposed options for assessments and reactions force a person to follow a given scenario, which blocks his own thought processes and violates the ability to give balanced assessments. 3.3 Features of Online Communication and the Problem of Maintaining Attractiveness There is a critical trend in the philosophy of science that negatively assesses the social and moral consequences of the extremely technocratic structure of society. In the digital era, the achievements of artificial intelligence are being implemented both at the state and at the household level, which can have polar consequences in the social sphere, in particular, in communication processes. It is impossible to imagine future communication without an online form, which will occupy an increasingly significant place, because it is not limited by territorial remoteness, language differences, national identity. The development of technologies unpredictably quickly solves language problems, offering instant translation. Holographic image programs work to create a physical contact, which gives an imitation version of communication. The generation that grew up in constant communication with the computer gets used to laconism, considers the telegraphic style of communication as a general rule, preferring restrained unemotional communication. The habits of a gamer developed in childhood become the norm in adult life. Representatives of this generation are not ready to fully fulfill the social roles of a leader and a subordinate, a representative of the power structure and a citizen, father and son, and many others. The lack of emotional interaction of people, built on mutual assistance and interest, leads to the inability to express feelings, experience deep emotions, demonstrate emotional impulses. The lack
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of real contact, depth and sincerity, interest, the use of a mask that sets the model of both speech, etiquette, and thematic communication, gives it the character of quasi-, pseudo-communication, strengthens the feelings of vacuum, isolation from real society [7]. In this regard, the problem of maintaining attractiveness in various contacts of people is acute. Attractiveness (from the Latin attrahere – to attract) means such an important feature of traditional communication, not burdened with technical innovations, as the ability to evoke a response, generate positive emotions, make a positive impression. According to Gumilev, the nature of attraction is unclear, as, indeed, the nature of consciousness, but its relationship with the instinctive impulses of self-preservation and with passionarity is the same as the ratio of the engine and steering wheel. Equally correlated with them is “reasonable egoism” - the antipode of attraction [8]. The modern technogenic paradigm leads to a change in the dominant reality: virtual life acquires the significance of the real world, in which the character is represented as a media, heroized personality. Telecommunications innovations make it possible to maintain anonymity in the process of distant interaction, to direct one’s own fate from the point of view of their success criteria. The mediated nature of contacts on the Internet changes the structure of communications based on the selection of forms, goals, and motives of communication. At the same time, the mystification of the interaction environment makes it difficult to identify the subjects, hiding their age, national, physiognomic, and social characteristics. Subscribers construct a model of detached interaction according to indifferent parameters, without focusing on the interests and problems of the interlocutors [15]. Communication, set by invented personal characteristics, relevant topics in this community, is often not confirmed by the real readiness of the communicators, their competence in the chosen topic, which indicates the cognitive insolvency of representatives of the Internet generation. The mediated remote form of communication reduces the scope of “direct”, direct interaction, the lack of which is felt at all levels of public life: everyday, business, political, socio-cultural. On the other hand, with all the universality and globality of the appeal to technical and technological forms of storing and transmitting information, it should be noted that the understanding of the value of traditional “live” communication and the advantages of knowledge and emotions obtained as a result of it is returning. It was the forced isolation due to the pandemic that revealed the value of attractiveness in communication, which leads to the renovation of classical forms of communication and the revival of their emotive content.
4 Discussion The publication of Kappa’s work a century after its writing confirmed the deepening interest in the philosophical problems of dehumanization of society. The problem of the consequences of the technical revolution on social processes was considered from opposite positions. Representatives of scientific schools saw both positive and negative consequences of the mechanization of cultural life. Proponents of technicism exaggerated the positive effects of scientific and technological achievements on the development of civilization [4]. Philosophers, writers, scientists opposed the fetishization of mechanics [1]. According to Berdyaev, the domination of the machine meant the transition from
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organic life to organized life. Scientists saw the positive meaning of technology in its ability to protect people from natural disasters. They believed that in the “man-machine” relationship, the intellectual personality should maintain a dominant position. Modern researchers reflect on the losses and gains of a person in the conditions of using artificial intelligence [3, 11]. The proposed article identifies the problems of the deepening differentiation of society in the course of virtual communication and the loss of its attractiveness. Many researchers choose individual groups of people who communicate and the specifics of their interaction as the object of study [9, 10, 13]. The authors of this paper propose to solve the problem of polarization and prevention of social confrontation not at the technical level, but by preserving attractiveness.
5 Conclusion Four paradigms of information storage and transmission are correlated with communicative innovations in the aspect of socio-cultural changes. The first stage, associated with the oral form of recording culturally significant information, is the longest in the history of civilizational development. The second, characterized by the appearance of writing, changed the forms of communication between social strata and had a revolutionary character. The third, based on the printed version of information storage, gave it universal significance. The basis of the fourth stage of the communicative revolution is the multimedia paradigm. The information and computer stage of civilization is considered in the context of the problem of the relationship between man and technology. The modern stage of communication is characterized by an increase in the role of distant communication, the platform of which is social networks. Their popularity, in particular, is supported by the systematic introduction of artificial intelligence technologies. Social platforms are used to create a positive image of communication participants, contributing to the attractiveness in communication. In addition, they provide an opportunity for distant communication for the purposes of entertainment, education, socialization and organization of everyday life. The features of online communication were considered in the context of the problem of maintaining attractiveness. The comparison of classical traditional and virtual interaction allows us to put forward the thesis about the need to give communication on multimedia platforms the attractiveness inherent in the individual as a carrier of the humanistic principle.
References 1. Berdyaev, N.A.: Man and the machine (the problem of sociology and the metaphysics of technology). Path 38, 3–38 (1933) 2. Bonito, J.A.: A bottom-up approach to examining group-level communication patterns: a multilevel latent profile analysis of functional group interaction. Hum. Commun. Res. 45(2), 202–225 (2019) 3. Canton, J.: Smart Future: Managing Trends that will Transform Your World. Da Capo Press, Boston (2015) 4. Dessauer, F.: Philosophie der Technik. Cohen, New York (1927) 5. Djafarova, E., Trofimenko, O.: Instafamous’–Credibility and self-presentation of microcelebrities on social media. Inf. Commun. Soc. 22(10), 1432–1446 (2019)
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6. Ellul, J.: A technological bluff. Grand Rapids: Wm. B. Eerdmans-Lightning Source (1990) 7. Filindash, E.V.: Features of the information society, initiating loneliness, among Russian youth. Vestnik Universiteta 8, 243–249 (2015) 8. Gumilev, L.: Ethnogenesis and the Biosphere of the Earth. AST, Moscow (2006) 9. Hilbert, M., James, R.G., Gil-Lopez, T., Jiang, K., Zhou, Y.: The complementary importance of static structure and temporal dynamics in teamwork communication. Hum. Commun. Res. 44(4), 427–448 (2018) 10. Kearney, M.W.: Analyzing change in network polarization. New Media Soc. 21(6), 1380–1402 (2019) 11. Lanier, J.: 10 Arguments to Delete All Your Social Media Accounts. Bombora, Moscow (2019) 12. Linabary, J.R., Corple, D.J.: Privacy for whom? A feminist intervention in online research practice. Inf. Commun. Soc. 22(10), 1447–1463 (2019) 13. Maia, R.C.M., Cal, D., Oliveira, V.V., Hauber, G., Rossini, P.G.C.: Deliberation across a space of reasons: assessing epistemic changes in group discussions. Hum. Commun. Res. 44(4), 399–426 (2018) 14. McLuhan, M.: Guttenberg Galaxy. Academic Project, Moscow (2018) 15. Paudyal, N., Filindash, L.V.: Actual issues of renovation of communicative culture in the conditions of the information society. Serv. Plus 9(2), 109–119 (2015)
Site Base Conversion and Impact of Advertising Traffic Source on Conversion Rate G. L. Azoev(B) and D. A. Khokhlov State University of Management, Moscow, Russia [email protected]
Abstract. The contribution studies the conversion of the landing page. Special attention is paid to the search for criteria of the basic conversion of the site, which does not depend on the elements of advertising campaigns. The study describes the reasons for the low accuracy of media plans. After describing the characteristics of the basic conversion, the author classifies the sources of advertising traffic and calculates the conversion rejection coefficients for each group of advertising formats. The obtained coefficients will help media planners to develop media plans of higher accuracy and reduce the number of test and experimental advertising campaigns. The authors outline the direction of further studies of conversion and media planning, the purpose of which is to increase the accuracy of media plans. Keywords: Conversion · Landing page · Media planning
1 Introduction One of the most difficult tasks of media planning in the digital space is to predict the level of conversion of landing page visitors into a desired action. Desired action is a tracked action on a web page that the user have to perform in order to move to the next stage of the sales funnel [3]. The conversion rate is extremely rarely the same not only on different sites, but even on the same web page, users from different advertising sources (contextual advertising, display advertising, targeted advertising, etc.) perform targeted actions with different conversion rate - CR [7–9, 11, 12, 14]. At the moment, there are no studies aimed at studying this topic, and attempts to identify patterns of behavior of the site conversion rate. Most marketers rely on their personal experience of conducting advertising campaigns when developing a media plan, which leads to their low accuracy. Each web page has its own almost unique conversion rate. For some sites, conversion fluctuations of 1, 2 or 3% will not be significant from the point of view of the economic efficiency of promotion. For other sites, a conversion change of 1–2% will become noticeable, for third sites, most often for e-commerce sites and with a large volume of traffic, such as lamoda.ru, market.yandex.ru, wildberries.ru and others, a change in the conversion rate by tenth proportion of percent is a change in financial indicators by hundreds of thousands and millions of rubles. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 285–296, 2022. https://doi.org/10.1007/978-3-030-94873-3_35
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CR cannot be predicted, since it depends on many and mostly unknown factors, among which one can distinguish the design, site structure, titles, offer, source of advertising traffic, attracted audience, site loading speed, and so on [4]. Such a number of factors cannot be considered. Every promotion specialist is familiar with the concept of “test marketing” – a test advertising campaign, the purpose of which is to collect statistics on the effectiveness of certain advertising tools, messages, target groups and other elements of promotion in the digital space, that is, test marketing is carried out to confirm or refute advertising hypotheses. Such advertising campaigns take time and resources that are not always available to the advertiser [5]. All of the above requires studies aimed at increasing the accuracy of media planning, in particular, to identify ways or methods for determining the conversion of a site at the stage of media planning, as well as patterns of CR changes that can be taken into account when developing a media plan. Increasing the accuracy of media planning will reduce the resources spent on test marketing, increase the quality of planning financial indicators and management decisions by advertisers.
2 Methodology In the course of the study, the statistics of 36 different landing pages was analyzed. For comparison, web resources from different areas of commercial activity are taken to come to common and fair conclusions for all sites. 19 of the 36 sites studied are from different areas, including: a furniture store, online stores selling clothing, household appliances, a pharmacy chain, delivery from restaurants, a perfume market place and others. We also compared CR indicators for landing pages of the same company, but in different regions: 17 web pages – posters of circus programs in different cities of the Russian Federation [13]. The main web analytics tools used in the study are Yandex. Metrica and Google Analytics, since all the sites under study use at least one of these services. To obtain statistically significant data, statistics for one calendar year was used. 2019 year was chosen for the study, since 2020 was an extreme year for most companies, and advertisers made various management decisions, which may reduce the quality of the study. Based on the results of the analysis and comparison of statistics of web resources, the authors introduced the concept of the basic conversion of the site, gave it a definition and described the main characteristics of the basic conversion. Also, as a result of the work on the study, a new classification of the most common traffic sources appeared. The main criterion for the new classification of advertising sources is the deviation of the conversion rate from the advertising source from the base conversion of the site.
3 Results After determining the selection of web pages, it is necessary to compare the conversion rates. Firstly, let’s see how the average conversion rate of sites changes depending on the region. Table 1 shows the CR of the web pages of circus programs in 17 cities of Russia.
Site Base Conversion and Impact of Advertising Traffic Source
287
Table 1. Average landing page conversion of circus programs №
City
Conversion rate
1
Tula
2,10%
2
Vladivostok
1,17%
3
Ekaterinburg
1,75%
4
Kirov
0,84%
5
Nizhny Novgorod
1,01%
6
Novosibirsk
0,76%
7
Ryazan
1,45%
8
Astrakhan
0,99%
9
Saint-Petersburg
1,18%
10
Volgograd
2,04%
11
Voronezh
1,61%
12
Irkutsk
1,05%
13
Kostroma
1,53%
14
Kursk
1,78%
15
Rostov
1,82%
16
Samara
1,49%
17
Yaroslavl
1,21%
Source: authors
The table shows that the CR varies in the range from 0.76% to 2.10% and none of the 17 indicators is repeated. The average conversion rate for the studied sites is 1.40%. We cannot apply the obtained average indicator for media planning, since based on the obtained average CR indicator, the media planner will overestimate the conversion rate for some cities from Table 1 by almost 2 times, which may lead to an error when allocating the budget for an advertising campaign. Not enough budget will be allocated for the promotion of the circus program in Novosibirsk, and an excessive budget will be allocated for the program in Tula. As a result, if the marketer relies on an average conversion rate of 1.40%, then the distribution of the budget between cities will not be effective and will lead to financial losses. A deeper study of statistics showed that transitions from different traffic sources have different conversion rates (Table 2). This means that within a single site, the conversion rate can vary greatly depending on the traffic source. From the above, we can conclude that all attempts to find the average conversion will not lead to an increase in the accuracy of media planning, since with an increase in the sample of the studied sites, the average conversion will change, and for most sites, the average CR will have too large an error. We are faced with the task of determining the basic conversion, which describes the quality of a web resource without taking into account other factors that affect the conversion, including the quality of the advertising campaign, the correct allocation of
288
G. L. Azoev and D. A. Khokhlov Table 2. Site conversion rates for different traffic sources №
Transition source
1
Yandex: direct
2
Google Ads
3
Admitad
4,14%
4
Facebook
5,16%
5
SEO
CR 9,55% 10,70%
13,36%
Source: authors
the target audience, the source of traffic and other “external” factors that can be influenced by the landing page. First of all, you need to find a traffic source whose conversion can be taken as a basic one. Let’s formulate the requirements for the necessary traffic: 1. Organic traffic, that is, the user should visit the site without calls and advertising offers [2]; 2. Statistically significant, that is, there should be enough visitors to exclude a statistical error; 3. Tracked, that is, analytics systems should be able to track the traffic source and behavior on the landing page. Web analytics systems distinguish 9 main groups of traffic sources [15]. Let’s check each group for compliance with the requirements described earlier in Table 3, which shows that the only source that meets all the requirements is “transitions from search systems”. Table 3. Compliance of traffic sources with the criteria of the basic conversion Sources group
Organic
Statistically significant
Tracked
Advertisment transitions
No
Yes
Yes
Transitions from search systems
Yes
Yes
Yes
Direct visits
Yes
Yes
No
Transitions from social networks
No
Yes
Yes
Transitions on links
No
Yes
Yes
Internal transitions
Yes
No
No
Transitions from mailing lists
No
Yes
Yes
Transitions from advertising systems
No
Yes
Yes
Transitions from messengers
No
Yes
Yes
Source: authors
Site Base Conversion and Impact of Advertising Traffic Source
289
But the study report “Search systems” Yandex.Metric showed that the conversion of the site changes depending on the search for Yandex system, the value of CR is equal to 11.5%, and for Google is 8.7%. So, we need to move to a deeper level of analytics – to the level of keywords. SEO promotion specialists do not consider the search engine as a single source of traffic, the main unit of analysis is the key phrase, since it is their users who enter into search engines, and it provides them with sites that contain the entered keywords [6]. That is, we need to find the type of key phrases whose conversion does not depend on the service used by the user. The analysis of sites statistics showed that the only type of requests that meets the requirements is brand requests [2]. The conversion between sources for the 20 sites studied differs at the level of an acceptable error of 5.9%. The CR indicators were distributed randomly and there is no trend for more conversion traffic from Yandex or Google. Thus, we can conclude that the base conversion (BCR) is a landing page conversion indicator, which is measured by the ratio of all page visitors who went to the site from search systems for branded queries to visitors who went to the site from search systems for branded queries and performed a targeted action. Now it is necessary to analyze the indicators of CR traffic from different sources. But let’s firstly determine the grouping of the transition sources. To begin with, let’s consider contextual display advertising. Statistics of various advertising campaigns show that the conversion rate varies not only from the source, but also from the format of the advertisment. Also, in contextual display advertising, it is necessary to highlight brand requests that show CR higher than other phrases. Table 4 shows the statistics of advertising campaigns in Yandex. Direct, among which campaigns with numbers 57796341, 57610307, 57510133 have the highest conversion rate. These campaigns contain the brand name in the key phrase. Also from the earlier conclusion we can see that conversion is affected by the source, in our case, Yandex or Google, and the advertisements within the contextual display advertising – display advertising and search advertising. Table 4. Compliance of traffic sources with the criteria of the basic conversion Campaign number
Conversion
Number of visitors
57796341
13,6%
5 186
57610307
15%
3 723
57510133
7,27%
672
58028518
3,02%
181
58007654
3,53%
119
59387380
4,85%
143
57510112
5,84%
82
57510147
6,35%
72
Source: authors
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G. L. Azoev and D. A. Khokhlov
We will compile tables of conversion indicators for contextual display advertising, targeted advertising in social networks and advertising networks for the analyzed sites (see Tables 5 and 6). Table 5. CR indicators of contextual display advertising Website
Their search system transitions
Transitions from their advertising networks
Brand requests
Non-branded requests
Brand requests
Non-branded requests
Yandex
Google
Yandex
Google
RSYa
KMS
RSYa
KMS
1
15,73%
13,73%
8,04%
8,20%
3,85%
3,97%
4,46%
3,85%
2
10,43%
10,69%
7,13%
6,73%
3,04%
2,79%
3,30%
3,21%
3
15,13%
15,10%
8,47%
9,57%
4,81%
4,23%
3,75%
4,42%
4
0,77%
0,69%
0,48%
0,42%
0,23%
0,20%
0,23%
0,19%
5
2,50%
2,69%
1,67%
1,55%
0,76%
0,67%
0,68%
0,73%
6
5,40%
5,96%
3,79%
3,51%
1,53%
1,54%
1,86%
1,57%
7
4,10%
4,52%
2,52%
2,51%
1,19%
1,05%
1,26%
1,21%
8
7,13%
7,40%
4,75%
4,76%
2,10%
2,36%
2,33%
2,36%
9
5,97%
5,95%
3,46%
3,75%
1,62%
1,89%
1,55%
1,95%
10
12,64%
11,78%
7,47%
7,51%
3,69%
3,59%
3,30%
3,76%
11
10,54%
10,41%
6,55%
6,43%
2,96%
2,70%
3,08%
2,84%
12
0,92%
0,94%
0,19%
0,25%
0,19%
0,11%
0,09%
0,12%
13
11,93%
13,01%
6,88%
8,26%
3,56%
3,67%
3,36%
4,13%
14
15,77%
15,58%
10,19%
10,05%
3,99%
4,04%
3,85%
4,42%
15
10,78%
11,21%
6,68%
7,23%
3,27%
3,01%
2,73%
3,27%
16
12,90%
11,29%
7,33%
7,62%
3,83%
3,37%
3,67%
3,71%
17
13,25%
11,88%
8,07%
7,91%
4,01%
3,96%
3,35%
3,87%
18
7,49%
6,79%
4,62%
4,27%
2,18%
1,74%
1,99%
1,87%
19
14,09%
12,96%
8,10%
7,61%
3,56%
4,72%
3,70%
4,29%
20
9,53%
10,61%
6,15%
5,98%
2,77%
2,01%
2,76%
1,87%
Source: authors
Studying the data in Tables 4, 5 and 6, you can see that there are channels whose conversions are close to each other within the same landing page. It can be seen that the conversion rate depends more on the format of the advertisment, and not on the advertising channel, so we can distinguish 5 main groups presented in Table 8. Now we will calculate the conversion deviation coefficient of each advertising channel from the base conversion of the site or landing page.
Site Base Conversion and Impact of Advertising Traffic Source
291
Table 6. CR indicators of advertising in social and advertising networks Website
Social networks
Advertising networks
News feed
Text and graphic blocks
Vk
Instagram
OK
MyTarget
Facebook
Vk
Admitad
1
4,69%
4,19%
4,85%
2,49%
3,08%
2,68%
2,93%
2
3,30%
3,56%
4,09%
1,93%
1,81%
2,11%
2,01%
3
5,89%
6,00%
4,88%
2,33%
2,58%
0,28%
0,22%
0,13%
0,15%
0,13%
0,15%
0,79%
0,98%
0,82%
0,39%
0,57%
0,41%
0,44%
1,96%
0,84%
0,94%
1,10%
1,46%
1,53%
1,58%
0,64%
0,89%
0,85%
0,77%
2,19%
1,28%
1,28%
1,55%
1,32%
4 5 6 7 8 9
1,84%
2,11%
1,16%
0,97%
1,31%
10
3,73%
4,03%
2,31%
2,44%
2,07%
0,33%
0,31%
11 12
1,93%
13 14
5,23%
5,38%
15
4,23%
4,26%
0,12%
0,20%
4,40%
1,97%
2,29%
4,39%
1,49%
2,08%
2,45%
2,46%
2,18%
2,36%
3,00%
16
3,27%
1,91%
17
4,57%
4,72%
4,75%
18
2,61%
2,70%
2,71%
19
4,41%
5,35%
4,31%
2,21%
1,83%
2,59%
1,94%
2,13%
2,11%
2,19%
20 Source: authors
According to Table 7, the deviation in search system transitions for Yandex delusional requests varies from 0.62 to 0.94, that is, the conversion from advertising traffic is from 62% to 94% of the base conversion. At the same time, the indicators 0.62 and 0.94 are distinguished from the total mass of values. 18 out of 20 observations are in the range from 0.77 to 0.88. The average deviation value for all observations will be 0.8185. If we exclude sites 1 and 2 as strongly distinguished, the average value will be 0.8227, which is not a big difference. If we use the average value, taking into account the sites that stand out from the total mass, we will get an error in the calculations from 0.52% to 12.01%, but for 95% of the analyzed sites, the error is no more than 7.32%. The biggest error was received by site 1, the coefficient of which is 0.94, that is, traffic from an advertising campaign for brand queries is only 4% lower than the base traffic of the site. This is due to the specifics of setting up an advertising campaign. Promotion specialists identified key requests containing the name of the campaign in a separate campaign and
292
G. L. Azoev and D. A. Khokhlov Table 7. Coefficients of deviation of CR from BCR contextually targeted advertising
Website
BCR
Their search system transitions
Transitions from their advertising networks
Brand requests
Non-branded requests
Brand requests
Yandex
Google
Yandex
Google
RSYa
KMS
RSYa
KMS
Non-branded requests
1
16,74%
0.94
0.82
0.48
0.49
0.23
0.24
0.27
0.23
2
13,20%
0.79
0.81
0.54
0.51
0.23
0.21
0.25
0.24
3
18,41%
0.82
0.82
0.46
0.52
0.26
0.23
0.20
0.24
4
0,89%
0.87
0.78
0.54
0.47
0.26
0.22
0.26
0.21
5
3,17%
0.79
0.85
0.53
0.49
0.24
0.21
0.21
0.23
6
7,01%
0.77
0.85
0.54
0.50
0.22
0.22
0.27
0.22
7
5,26%
0.78
0.86
0.48
0.48
0.23
0.20
0.24
0.23
8
9,14%
0.78
0.81
0.52
0.52
0.23
0.26
0.25
0.26
9
7,36%
0.81
0.81
0.47
0.51
0.22
0.26
0.21
0.27
10
14,36%
0.88
0.82
0.52
0.52
0.26
0.25
0.23
0.26
11
12,85%
0.82
0.81
0.51
0.50
0.23
0.21
0.24
0.22
12
1,11%
0.83
0.85
0.17
0.23
0.17
0.10
0.08
0.11
13
15,29%
0.78
0.85
0.45
0.54
0.23
0.24
0.22
0.27
14
19,23%
0.82
0.81
0.53
0.52
0.21
0.21
0.20
0.23
15
13,64%
0.79
0.82
0.49
0.53
0.24
0.22
0.20
0.24
16
14,66%
0.88
0.77
0.50
0.52
0.26
0.23
0.25
0.25
17
15,23%
0.87
0.78
0.53
0.52
0.26
0.26
0.22
0.25
18
8,71%
0.86
0.78
0.53
0.49
0.25
0.20
0.23
0.21
19
16,20%
0.87
0.80
0.50
0.47
0.22
0.29
0.23
0.26
20
12,06%
0.79
0.13
0.46
0.13
0.21
0.09
0.29
0.06
0.82
0.78
0.50
0.50
0.23
0.21
0.23
0.23
Average Source: authors
added information classifiers to the list of stop words [6], such as “logo”, “reviews”, “employees”. In other words, it can be assumed that the conversion is allocated due to a better study of the advertising campaign by the directologist. Thus, we have obtained the average deviation coefficient for the channel Yandex. Direct search advertising for brand queries, with which you can calculate the conversion with an error of no more than 12.01%. We will also analyze the available data on advertising campaigns in social and advertising networks from Table 8. The spread of conversion rates is not high and is most likely associated with different approaches when setting up advertising campaigns on the analyzed services.
Site Base Conversion and Impact of Advertising Traffic Source
293
Table 8. Coefficients of deviation of CR from BCR social and advertising networks Website
BCR
Social networks
Advertising networks
News feed
Text and graphic blocks
Vk
Instagram
OK
MyTarget
Facebook
Vk
Admitad
1
16,74%
0.28
0.25
0.29
0.15
0.18
0.16
0.18
2
13,20%
0.25
0.27
0.31
0.15
0.14
0.16
0.15
3
18,41%
0.32
0.33
0.27
0.13
0.14
4
0,89%
0.31
0.25
0.15
0.17
0.15
0.17
5
3,17%
0.25
0.31
0.26
0.12
0.18
0.13
0.14
6
7,01%
0.28
0.12
0.13
0.16
7
5,26%
0.28
0.29
0.30
0.12
0.17
0.16
0.15
8
9,14%
0.24
0.14
0.14
0.17
0.14
9
7,36%
0.25
0.29
0.16
0.13
0.18
10
14,36%
0.26
0.28
0.16
0.17
0.14
11
12,85%
12
1,11%
0.30
0.28
13
15,29%
14
19,23%
0.27
0.28
15
13,64%
0.31
0.31
16
14,66%
17
15,23%
0.30
0.31
0.31
18
8,71%
0.30
0.31
0.31
19
16,20%
0.27
0.33
0.28
0.29
Average
0.15 0.11
0.18
0.29
0.13
0.15
0.32
0.11
0.15
0.16
0.16
0.16
0.17
0.16
0.17
0.13
0.15
0.12
0.17
0.13
0.27
0.13
0.13
0.14
0.28
0.12
0.15
0.15
0.16
Source: authors
Now let’s combine advertising formats with similar deviation coefficients in Table 8 and enter a conventional symbol for this coefficient - K (Table 9).
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№
Advertisment format
Deviation coefficient (K)
1
Text advertisments in search results for branded requests
0.80
2
Text advertisments in search results for non-branded requests
0.50
3
Text and graphical advertisments in media networks
0.23
4
Announcement in the news feed of social networks
0.29
5
Text and graphic blocks
0.15
Source: authors
4 Discussion A new indicator - the basic landing page conversion (BCR) allows a media planner to improve the accuracy of the media plan. This indicator also helps to analyze the conversion of the site itself without taking into account factors that cannot be affected by changing or optimizing the landing page. Such factors include the text of the advertising message in the advertising service, the selection of the target group, the settings of the advertising campaign and other factors that are adjusted in advertising services by promotion managers. Despite the fact that the BCR remains dynamic and can change depending on more global and objective factors, such as time period, region, the basic conversion excludes a number of subjective features and errors of marketers when setting up an advertising campaign and shows “clean” site statistics without taking into account visitors who accidentally clicked on an advertisment or users who formed inflated expectations about the company when contacting the advertisment, and so on. In the course of the study, the author named the advertisment format as one of the main factors influencing the conversion of traffic on the site. It is worth noting here that most likely this is not an exact formulation. Most likely, the advertisment format is just a marker that describes the level of the user’s needs and his behavior at the time of displaying the advertisment [10]. Thus, it turns out that users who enter a request containing the brand name in a search service most often intend to buy an advertiser’s product or want to learn more information about the product and the company. The level of need of such users is much higher than that of those who saw an advertisement in the news feed in a social network, since the latter were not at the stage of realizing the need at the time of displaying the advertisment, while users who enter a search request are already either looking for information about the product or looking for where to make a purchase [1]. At the moment, there are no similar classifications of advertising formats, and the topic requires more global studies, in which more landing pages will be studied. Such studies will allow to calculate the deviation coefficients more accurately.
5 Conclusion As a result of the study, the basic conversion of the landing page was described, which will allow media planning specialists to rely not on their own experience, but on a single
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indicator when building a promotion plan. BCR also takes into account the features of each landing page and moves away from universal and average indicators, which, as described in the results of the study, do not help to increase the accuracy of media planning. The goal set for the study has been achieved. A tool has been developed that will increase the accuracy of media planning and reduce the number of test advertising campaigns conducted. The proposed classification of advertising formats allows to plan the CR indicator more accurately than existing methods. Also, standard deviation coefficients can serve as a marker for determining the quality of the advertisment campaign settings. If the indicator is higher than the one calculated from BCR, then the advertising campaign will have high communication or economic efficiency, if the conversion rate is lower, then the marketer made a mistake when setting up the advertising campaign or the advertising hypothesis was not effective. The authors conducted a study of 36 sites and more than 2,500 advertising campaigns, which scored a total of 471,346 clicks on the site. Such a number of visitors increases the indicator of the statistical significance of the study data and allows to assume that the results obtained can be used for other sites and advertisers. Acknowledgments. The reported study has been funded by the RFBR under project 20-01000233.
References 1. Aleshina, I.V.: Consumer behavior. Economist, Moscow (2006) 2. Ashmanov, I.S., Yudina, O.V., Kalinin, A.L.: Optimization and promotion in search engines, Saint Petersburg: Piter (2019) 3. Azoev, G.L., Aleshnikova, V.I., Alexandrova, I.Y.: Digital Marketing Communications: An Introduction to the Profession, Saint Petersburg: Piter. (2021) 4. Azoev, G.L., Khokhlov, D.A.: Formation of a model for forecasting demand for projected digital products. Mark. Mark. Res. 1(143), 18–27 (2021) 5. Azoev, G.L., Tokarev, B.E., Aleshnikova, V.I.: Marketing. Mastering the Profession, Saint Petersburg: Piter. (2020) 6. Enge, E., Spencer, S., Stricchiola, J.: The art of SEO: Mastering Search Engine Optimization (3rd Edition), Sebastopol, CA: O’Reilly Media (2015) 7. Fernández-Durán, J.J., Gregorio-Domínguez, M.M.: Consumer segmentation based on use patterns. J. Classif. 38(1), 72–88 (2020). https://doi.org/10.1007/s00357-019-09360-2 8. Goldstein, N.: On-line advertising campaign measurement. In: SCN Education B.V. (eds.), Webvertising, pp. 219–229, Berlin. Vieweg+Teubner Verlag (1998). https://doi.org/10.1007/ 978-3-322-86793-3_21 9. Grossman, R., Sgarbura, O., Hallet, J., Søreide, K.: Social media in surgery: evolving role in research communication and beyond. Langenbeck’s Arch. Surg. 406(3), 505–520 (2021). https://doi.org/10.1007/s00423-021-02135-7 10. Kotler, P., Keller, K.L.: Marketing Management, 14th edn. Person, London (2011) 11. Liao, S.-H., Yang, C.-A.: Big data analytics of social network marketing and personalized recommendations. Soc. Netw. Anal. Min. 11(1), 1–19 (2021). https://doi.org/10.1007/s13 278-021-00729-z 12. Marketing Terms: Conversion Rate. https://www.marketingterms.com/dictionary/conver sion_rate/. Accessed 07 May 2021
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13. Skorobogatykh, I.I., Efimova, D.M., Meshkov, A.A.: Marketing Research and Situational Analysis. Knorus, Moscow (2017) 14. Su, Y., Jin, L.: The impact of online platforms’ revenue model on consumers’ ethical inferences. J. Bus. Ethics. https://doi.org/10.1007/s10551-021-04798-0 15. Yandex: How does Yandex.Metrica determine the traffic source. https://yandex.ru/support/ metrica/general/sources-tracking.html. Accessed 10 May 2021
Digital Ecosystems: Issues of Creating and Increasing Value G. V. Butkovskaya(B) and E. V. Krasnov State University of Management, Moscow, Russia {gv_butkovskaya,ev_krasnov}@guu.ru
Abstract. Once, companies could create a joint venture or an alliance with several industry partners to share risks or enter a new market, but now many companies are collaborating in digital ecosystems with dozens or even hundreds of partners from several industries to bring their offers to market. In the digital ecosystem, many largely independent economic players join forces to create a digital offer that is more valuable than a product or service of an individual company. This new model of cooperation is the future of business. Digital technologies are changing the quality of customer service in almost all sectors. Leading digital companies are entering the markets with radically new offers, disrupting the ways companies and customers interact and setting a high bar for personalization and interactivity. The introduction of effective marketing technologies begins with understanding how the consumer is changing, which channels are showing growth and why. Companies need to develop their strategies and goals based on a clear understanding of these trends. Keywords: Digital ecosystems · Digital platforms · Digital strategy · Marketing technologies · Strategic partnership · Value chain
1 Introduction As competition in the digital business sphere increases, an increasing number of companies are joining together in new, broader and more dynamic partnerships, creating or participating in digital ecosystems. The ecosystem world is becoming a highly customeroriented model. In this model, consumers can enjoy continuous access to a wide range of products and services through a single access channel without leaving the ecosystem [9, 12]. Ecosystems are developing due to network effects. By offering products and services that individual companies could not create on their own, ecosystems attract more and more customers. This, in turn, creates even more data, which allows artificial intelligence to develop even better offers, which optimizes business processes. In the end, the ecosystem’s customers win. As ecosystems connect links in the value chain, they create a customer-oriented unified value proposition in which users can continuously interact with a wide range of products and services through a single interface. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 297–302, 2022. https://doi.org/10.1007/978-3-030-94873-3_36
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Digital platforms and ecosystems are changing the nature of competition and the company’s strategy. In addition, they influence consumers, allowing them to jointly create value within the ecosystem [4, 8]. For example, digital platforms in the sharing economy can be conceptualized as developing organizations consisting of actors who share, consume and compete together. The issues discussed in this article relate to the research aspects of the digital transformation of companies and industries. This is theoretically important, since digital transformation is something more than an intra-organizational phenomenon [4].
2 Methodology The widespread interest in the term “digital ecosystems” reflects structural changes and emerging strategic opportunities that are not covered by the existing analytical arsenal, so closer attention can bring significant benefits. In the designed ecosystems, organizations unite with each other through joint specialization, creating connections that generate cooperation, without excluding competition [9, 12]. Most of the companies with the highest market capitalization in the world are technology companies that receive a significant part of their incomes from the digital ecosystems they created (Apple, Microsoft, Amazon, Alibaba). Many participants of these ecosystems are B2C market players. Others are B2B spaces. Some companies are engaged in both: for example, Amazon connects e-commerce, cloud computing, logistics and consumer electronics, and China’s Tencent provides services including social networks, games, finances and cloud computing. The concept of digital ecosystems is interpreted by researchers as a new way of perceiving increasingly complex and interdependent created systems [3, 5]. The digital ecosystem is a multidisciplinary concept, which leads to the emergence of many definitions, depending on the point of view from which it is considered, for example, ecology, economics, technology, etc. [2, 7]. In the context of this work, the authors understand the digital ecosystem as an interconnected set of services and/or products that allows users to meet different needs in one single interface. The research problem of this work is how traditional and digital companies can use new technologies in building an effective digital strategy. The purpose of this study is to identify and summarize the experience of forming and increasing the value of companies in the structure of digital ecosystems. The work is based on the research of international consulting companies and experts in the field of development of digital ecosystems, digital products and services. The authors conducted desk studies and identified the key issues of digital transformation of companies from the point of view of the phenomenon of “digital ecosystems”.
3 Results The ecosystem is an important factor of success in the market of any digital products [11]. Therefore, all companies should rethink their strategy by joining the existing ecosystem, or creating their own [1]. How do ecosystems work? Firstly, they create value and it can be viewed from different angles. Ecosystems allow participants to consolidate customers,
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often from different sectors. We are talking about a horizontal vector. As for the vertical vector, ecosystem participants strengthen or even dominate the interaction points on the way to purchase (both B2C and B2B). Of course, the participants of the ecosystem do not try to do this by creating everything that is necessary on their own. Instead, ecosystem organizers provide incentives and actively collaborate with other participants who may be located within their traditional industry boundaries or beyond them. These steps can give impetus to distributed innovations and increase the efficiency of value chains in order to improve the quality of customer service, while opening up new opportunities for creating value for a wide range of participants. Most global companies have already started their efforts to create an ecosystem model and the capital markets have recognized their value. According to McKinsey studies conducted in more than 550 companies, companies in the banking and insurance, technology and retail sectors are the most active in developing ecosystem value propositions [8]. However, ecosystems come in different shapes and sizes. They are based on various business models and cover a complex economy. This complexity explains why most of the followers who tried to replicate the ecosystem successes of companies such as Google and Amazon faced difficulties. The study identified four types of ecosystem players by their respective scale and core assets. Experts defined scale as the size of the customers that the player served in its primary market. At the same time, the main assets of traditional companies differ from the assets of Internet companies, since the main assets of companies in traditional industries (for example, financial services, retail trade and telecommunications) are usually tangible products and services, while the assets of Internet companies are intangible: IT infrastructure, data and digital channels. The first type of digital ecosystem players can be described as a “local leader” company. These are regional players in traditional industries. Their ecosystem strategy is to create value by attracting new customers with their core products. Due to competition from digital providers, it is becoming increasingly difficult for them to attract new customers through old channels, such as bank branches or retail stores. As a result, many of them seek to quickly acquire new customers of the main product using the digital channels of their ecosystem partners. For example, the bank of Nanjing in China built partnerships with online lending platforms such as Du Xiaoman Financial and 360 Finance since 2017 to attract new customers for its consumer finance services. According to the bank’s annual report for 2018, the number of its retail customers doubled between 2016 and 2018. The second type of participants in digital ecosystems are large players in traditional industries. Their ecosystem strategy is to create value by acquiring new customers with their core products and cross-selling new, non-core products. Despite a large customer base and active sales channels, they also face competition from digital providers. If they don’t develop new use options for their core products and increase cross-selling, they may lose both new and existing customers to online players. With 1.3 million insurance agents, Ping An Group is the leading insurer in China. The group built a digital ecosystem to help acquiring new customers and ensure cross-selling. The Ping An ecosystem includes many basic services, such as financial services, healthcare, automotive services, real estate and smart cities. It also incubated several technology companies, such as Lufax,
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an online financial market for consumer lending and money management, and Ping An Good Doctor, a healthcare platform for individual users. Through the platform, new customers can use Ping An Good Doctor to purchase the company’s insurance products, while existing insurance customers can use the Ping An platform to pay for Ping An Good Doctor services. From 2012 to 2018, the number of Ping An retail customers more than doubled, and Ping An Good Doctor services now cover 15% of the Chinese population. Total revenue increased by more than 200%, based on the company’s annual reports and interviews with the company’s finance experts [8]. In recent years, Ping An created OneConnect as part of its financial services ecosystem and HR-X within Smart City in order to commercialize its internal capabilities and serve business customers. The third type of digital ecosystem implies a digital startup. The ecosystem strategy for startups focuses on creating value by acquiring new customers, cross-selling new products and expanding main offerings. They tend to scale up with limited products or services, and then diversify their offerings by participating in the ecosystem. The Grab digital service, for example, was founded in 2012 to offer taxi services. In mid-2015, the company began providing food delivery, digital content and payment services. As a result, its downloads tripled, and revenue increased more than tenfold from 2016 to 2018. The fourth type of player in the digital ecosystem is a company that is an Internet giant. These are large Internet companies with large customer bases and mature data transfer technologies and infrastructure. They use all the opportunities to create value: acquire new customers with their core products, cross-sell new products and create integrated solutions. By diversifying their products and services, they increase the number of points of contact with customers, which helps to expand their customer base and capture a larger share of their customers’ wallets. Such companies also use their data and infrastructure capabilities to provide solutions for new customer segments. Amazon, for example, launched a series of self-supporting companies that increased its ability to sell new products such as the Kindle and Echo. The company also gained new customers by buying Whole Foods in 2017. From 2007 to 2018, its customer base increased fourfold, and revenue per client almost tripled. At the same time, Amazon created Amazon Web Services (AWS), which offers cloud services to other companies, while increasing the operational efficiency of Amazon’s main business.
4 Discussion At first, the ecosystem design process may seem complicated and risky, but when used correctly, it is a powerful tool that allows to go beyond gradual changes and make a radical shift, focused on the customer, necessary to create the best possible customer experience [6]. The Chinese company Tencent successfully used several sources of value formation: QQ and WeChat generate revenue from merchants’ commissions for ecommerce, payments, digital content and advertising services, as well as from customers who pay for additional services; new consumer goods and services currently account for more than 50% of Tencent’s total revenue; the contribution of third-party-funded data monetization to its total revenue is now 20%, while the use of the merchant-funded platform is 25%. So, ecosystem models generate value from several sources:
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1) Increase in income from basic products and services. In this source of value, the ecosystem increases the revenue from the main product by reducing the costs on attracting customers [10]. The ecosystem can also reduce churn and increase customer loyalty to the main business. In addition, advanced analytics can help companies to maximize opportunities within their existing revenue pool, improving both traditional and ecosystem operations. For example, by expanding the scope of medical consultations, car sales, real estate and banking services, Ping An expanded its main insurance business. 2) New products and services financed by customers. Ecosystem structures often focus on expanding the scope of a company’s activities to related opportunities. One of the ways to generate new revenue from the existing customer base is to introduce new products from low-cost high-frequency use to high-cost low-frequency use. Using internal opportunities to sell an infrastructure solution to other companies can also generate new sales from new sources. For example, Amazon’s constant investments in new opportunities helped it to become a platform for self-sustaining businesses. 3) Using a platform funded by merchants. As the ecosystem increases the number of active users, the platform becomes more and more attractive for sellers. This brings more income to the platform owner due to registration or listing fees and commissions paid by sellers. For example, Scout24 manages many car and real estate markets with added value in many European countries. Its consumer services platform distributes third-party services to its current customer base, accounting for 19 percent of the company’s total revenue in 2018. 4) Data monetization funded by third parties. Because the ecosystem collects customer data that sellers can use to improve advertisment targeting and develop new business offers, the company providing the solution can charge for targeted placements, preferred listings in search results, and access to raw data. John Deere, which produces agricultural, construction and forestry equipment, is turning from a heavy industry company into a technology company. By offering a set of digital services for agriculture in one package, John Deere is constantly outperforming the market and attracting new customers thanks to its data-driven ecosystem strategy. 5) Improving operational efficiency. The ecosystem can reduce transaction costs by helping players to achieve economies of scale by combining existing assets with the resources of numerous organizations from various sectors.
5 Conclusion While traditional organizations create value within their firm or supply chain, digital platforms use and organize a platform-mediated ecosystem to create and co-create value with a much wider range of partners and participants. At the same time, the main sources of the company’s value formation for various ecosystem archetypes can be characterized as follows: 1. Development of the main business. The company gains value from increasing revenues from core products and services and using a merchant-funded platform.
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2. Expansion of the network or portfolio. The company benefits from a higher Lifetime customer value (LTV). It can also derive value from many sources, including new products and services funded by customers, the use of a merchant-funded platform, and the monetization of data funded by third parties. 3. Building an end-to-end solution. The company uses an infrastructure solution to get value from new products and services purchased by business customers. It can also create value by increasing its operational efficiency through economies of scale.
References 1. Bughin, J., Catlin, T.: 3 digital strategies for companies that have fallen behind. Harvard Business Review, 12 February 2019. https://hbr.org/2019/02/3-digital-strategies-for-compan ies-that-have-fallen-behind. Accessed 05 Sep 2019 (2019) 2. Dong, H., Hussain, F.K., Chang, E.: An integrative view of the concept of digital ecosystem. In: Ceballos, S. (ed.) Proceedings of the 3rd International Conference on Networking and Services, ICNS 2007, 4438291, p. 42. https://doi.org/10.1109/ICNS.2007.33, Washington, DC. IEEE Computer Society (2007) 3. Fischer, R., Scholten, U., Scholten, S.: A reference architecture for feedback-based control of service ecosystems. In: Hussain, F.K., Chang, E. (eds.) Proceedings of the 4th IEEE International Conference on Digital Ecosystems and Technologies - Conference Proceedings of IEEE-DEST 2010, DEST 2010, 05610624, pp. 1–6. https://doi.org/10.1109/DEST.2010.561 0624, Washington, DC. IEEE Industrial Electronics Society (2010) 4. Hein, A., et al.: Digital platform ecosystems. Electron. Markets 30(1), 87–98 (2019). https:// doi.org/10.1007/s12525-019-00377-4 5. Jansen, S., Cusumano, M.: Defining software ecosystems: a survey of software platforms and business network governance. CEUR Workshop Proc. 879, 41–58 (2012) 6. Leong, C., Tan, B., Xiao, X., Tan, F.T.C., Sun, Y.: Nurturing a FinTech ecosystem: the case of a youth microloan startup in China. Int. J. Inf. Manage. 37(2), 92–97 (2017) 7. Li, W., Badr, Y., Biennier, F.: Digital ecosystems: challenges and prospects. In: Chbeir, R. (ed.) Proceedings of the International Conference on Management of Emergent Digital EcoSystems, MEDES 2012, pp. 117–122, New York, N.Y. Association for Computing Machinery. https://doi.org/10.1145/2457276.2457297 (2012) 8. McKinsey: Competing in a world of digital ecosystems. https://www.mckinsey.com/bus iness-functions/mckinsey-digital/our-insights/competing-in-a-world-of-digital-ecosystems. Accessed 10 Jan 2021 (2018) 9. Mishra, S., Tripathi, A.R.: Literature review on business prototypes for digital platform. J. Innov. Entrepreneurship 9(1), 1–19 (2020). https://doi.org/10.1186/s13731-020-00126-4 10. Purchase, S., Volery, T.: Marketing innovation: a systematic review. J. Mark. Manage. 36(9– 10), 763–793 (2020) 11. Sako, M.: Business ecosystems: how do they matter for innovation? Commun. ACM 61(4), 20–22 (2018) 12. Senyo, P.K., Liu, K., Effah, J.: Digital business ecosystem: literature review and a framework for future research. Int. J. Inf. Manage. 47, 52–64 (2019)
Socio-Economic and Political Transformation of “Smart Nations” as a Digital Society M. A. Dyakonova1(B) , A. K. Botasheva2 , and M. L. Kardanova3 1 State University of Management, Moscow, Russia
[email protected]
2 Pyatigorsk state University, Pyatigorsk, Russia
[email protected] 3 Institute of Service, Tourism and Design (NCFU Branch) in Pyatigorsk, Pyatigorsk, Russia
Abstract. The Smart Nations society is a society of social progress, which can be achieved only through the introduction of digital technologies into all spheres of human life. But a number of researchers of the upcoming digital society are experiencing a state of frustration associated with negative expectations from the dominance of digital technologies, while another part of society and scientists are optimistic, expecting the benefit for humanity in the form of new opportunities and achievements in the economy and social sphere. The purpose of this study is to try to answer legitimate questions – is there a danger to a person from the digital economy, artificial intelligence and, in general, from new digital practices? The subject of the work is the phenomenon of the Smart Nations society (the phenomenon of the digital technology society), which is a socially significant problem. Therefore, the digital future should be built and formed with the participation of international expert communities, governmental and intergovernmental institutions. Keywords: Artificial Intelligence · Digital society · Risks and threats to humanity · Smart Nations society
1 Introduction Has a person always been interested in what the coming day brings? But at the same time with the joy of a person anticipating a number of amazing discoveries and achievements that will give a person new utilitarian opportunities of the Smart Nations society (the term means a society of social progress that will come with the arrival of digital technologies in all spheres of human life), there are millions of people who are afraid of new technologies. In addition to neo-Luddites (people who struggle with technical innovations), a number of representatives of the scientific community speak about the upcoming risks and threats. So, some researchers suggest that: – the construction of a “smart city” can disrupt the traditional way of societies, for example, the Scandinavian society [17]; © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 303–309, 2022. https://doi.org/10.1007/978-3-030-94873-3_37
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– the possibility of using data from mobile phones threatens not only the security of an individual, but also national security [7]; – since the discretionary powers of the state will be forced to be reduced, there will be no independent supervision, which will entail negative transformations of an economic and political nature [10]; – societies are threatened with unemployment and mass poverty (according to the forecasts of some experts, in the next 15-20 years, automation and artificial intelligence will fairly displace the man in the labor market. Unemployment in the country may amount to 20 million people [11]). In turn, mass unemployment and poverty can undermine the socio-economic and political stability of any state. Sometimes scientists speak out more sharply, being concerned about the possibility of building a new slave-owning society based on attacks on civil liberties, total surveillance of everyone [19], as well as the creation of a ruling global elite stratum (about 15%), which will consist of the population of highly technologically developed societies [18], which can cause a surge of opposition and terrorist violence in the world. On the contrary, most experts are of the opinion that the slowdown in the digitalization of the economy has a sharply negative impact on the state of both national economies and the world economy [3]. This message is motivated by the fact that society is suffering from aging and the number of the working population is decreasing; production facilities that are not provided with artificial intelligence are not competitive, respectively, become a brake for the development of the economy. Accordingly, scientists have questions - is there a danger to a person from the digital economy, artificial intelligence and, in general, from new digital practices, or is this a future benefit for everyone? The above indicates the continuing relevance of studies in this area. Being sure that this phenomenon cannot be perceived as a noumenon (as a subject of purely intellectual contemplation), we turned to the study of this topic as a socially significant problem. The purpose of this study is to try to understand - does society underestimate or overestimate the challenges and threats that the total digitalization of the economy and everyday life contains? Therefore, the works of well-known scientists in the field of digital technologies and artificial intelligence were used as empirical material on the basis of which the research was conducted.
2 Methodology To achieve the stated goal, the authors explicated (accompanied) the article with general scientific and private scientific methods. In particular, the study used a network (relational) method, the object of study of which is socio-economic and political ties, relationships, interaction and transactions between people [18]. Considering that the development of digital technologies is inextricably linked with the analysis of new opportunities, new resources, strengths and weaknesses of the digital society, the authors relied on SWOT analysis, which nowadays is widely used in various fields. Also, nonqualitative content analysis was actively used from interdisciplinary methods, which allows creating a picture of the vision of the digital future that is being formed in society through the media. In addition, the authors turned to interdisciplinary civilizational and cultural-historical methods, through which digital inequality in the world was revealed.
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The synergetic approach was of particular importance for the study, which required taking into account complex indirect influences on politics, the economy and society as a whole by non-political and non-economic factors.
3 Results The problem of possible socio-economic and political transformations associated with the formation of a Smart Nations society is actively discussed in the scientific community, is considered at such high international levels as the United Nations [15], in the speeches of the UN Secretary-General [5] and meetings of the World Economic Forum – but scientific opinions on the problem under discussion vary quite a lot and there is still no consensus on the upcoming digitalization of the economy and society [16]. Describing the future, many films and publications of fiction journalism are carried away by fantastic stories about how the achievements of science and technology make human life easier or, on the contrary, turn against man when his mind evolves towards harming its creator. Nevertheless, the society came close to another qualitative change in its state – the formation of a Smart Nations society based on the digitalization of all spheres of human life. But there is no common understanding in society, including scientific, whether the digitalization of society and the development of artificial intelligence brings good to humanity or not. People who are concerned about the mass death of birds, the inhabitants of the oceans being thrown ashore, the disappearance of rare species of flora and fauna are trying to understand what human achievements cause such tangible harm to nature and its inhabitants. Sometimes people’s reaction to new technological innovations becomes aggressive and destructive. For example, news feeds were full of reports that in different countries, residents who are supporters of the conspiracy theory, confident that 5G towers are spreading the coronavirus, are coming out against the construction of towers. So, in the UK, at least 90 cell towers were attacked during the self-isolation regime [1]. (At the same time, the British Association of Mobile Operators MobileUK complained that only a small part of the damaged installations transmitted signals of the 5G standard [9]). In October 2020, the telegram channel Mash reported that Russian cellular companies have to seek permission to install equipment through the court, because residents of cities near Moscow fear that electromagnetic waves from towers negatively “affect DNA” [8]. Therefore, for the self-realization of a person and the widespread introduction of technologies, humanity will have to survive the scrapping of administrative and social barriers. The most significant social barrier is based on people’s fears of a century ago, who fear that intelligent computer systems can evolve into an over-mind and get out of control. According to Horvitz, skeptics are also concerned about potential legal and ethical collisions on decisions made by automated systems, difficulties in understanding the logic of such decisions, the emergence of new forms of surveillance and related threats to civil liberties [6]. We agree that, unfortunately, digital technologies will also serve the criminal world, cybercriminals, terrorists, war criminals and organized crime. And here, indeed, there is a problem of the emergence of risks disproportionately great than they existed before, since new technologies in criminal hands are capable of causing global harm to all mankind. Nevertheless, we would like to emphasize that, despite the fact that
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a considerable part of the world’s population is negatively inclined to the breakthrough of new technologies on a planetary scale, the human mind will continue to surprise the world with new discoveries. And thanks to the introduction of digital technologies, the framework of a person’s habitual lifestyle will be extremely expanded. Automated systems in the near future should replace heavy physical labor and make up a number of assistants in households. It is assumed that the revolution in interfaces will present opportunities for this. It is the voice, conversational interface that will be integrated into household appliances and robot servants. Further in the future, we are waiting for autonomous cars and smart cities that function with the help of high-precision 3D maps based on the signals of the differential correction system with a centimeter level of accuracy CLAS, personalized medical and educational services, artificial intelligence technologies and the Internet of things. Scientists suggest that new technologies will make it possible to better cope with economic and global environmental problems [4], the educational process [14], are applicable in medicine, the service sector and even in the field of justice [12]. As a result, humanity will come to the digitalization of public administration and the creation of equal opportunities for all. In general, the mechanisms of public coordination will be changed in the direction of greater democratization and justice. A new synergy of human existence will be formed, which will allow, among other things, to fight crime at a qualitatively new level.
4 Discussion Israeli Professor Harari, a participant of the Davos World Economic Forum 2020, identified three current threats to humanity: nuclear war, environmental crisis and the destructive power of technology [16]. According to the scientist, in the future, potential problems will be: the release of human capital and the emergence of a mass of “useless” people; the growth of economic and political inequality between countries (which will be dictated by unequal access to artificial intelligence technologies); the establishment of a digital dictatorship by governments and total control over citizens; the seizure of power by technological giants that can control mass consciousness (Facebook, Google, Netflix, Amazon, Alibaba); interference in the biological device and the human genome, etc. [13]. At the Davos Economic Forum-2019, experts and guests of the forum focused on technological instabilities and operated on the concept of “Digital Panopticon”. The main speakers of the forum emphasized the possibility of new forms of social control: face recognition, walking analysis, digital applications, affective computing, micro-chipping, digital lip reading, fingerprint sensors – thanks to the spread of these technologies, we are moving into a world in which all data about us is collected, stored and verified through artificial intelligence algorithms [16]. As the researchers suggest, artificial intelligence is already being considered as a new reality of electronic justice, which may lead to a digital dictatorship of artificial intelligence [2]. Indeed, humanity is approaching such a line of its development when totalitarian governments are able to exercise total control over citizens, depriving them of the opportunity not only to express their opinions, but also to think against the ruling elite. But this danger threatens not only the inhabitants of totalitarian countries. The ruling elite of totalitarian states is able to control developed democracies through digital technologies, arranging controlled chaos in democratic
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countries, introducing ideas of rejection of democracy into the mass consciousness and inculcating ideas of totalitarianism. Nevertheless, humanity has come to such a qualitative change in its existence, which, in our opinion, can be compared with the era of transition from a collective way of life to agriculture, with the invention of the wheel, the steam engine, etc. It is also possible to compare it with the era of the invention of the loom, when humanity rushed from the feudal system to an industrial society. We are close to such discoveries in the field of digital technologies that will allow talking about the life of humanity before these discoveries, and after. As a result of the digitalization of society, most spheres of human life are waiting for big changes. For example, the education sector is waiting for a radical transformation. Despite the fact that today many parents are against distance learning, motivating their protest by the inability of children to learn independently – still, education is waiting for big changes associated with the spread of virtual reality technologies (VR-technologies). VR-technologies, as well as interactive courses, voice interfaces, gamification of the educational process, game mechanics, cloud libraries and other digital technology achievements will allow students to immerse themselves more deeply in learning. Over time, both parents and teachers will appreciate the convenience and practicality of using new technologies in education, the opportunity to get better training through a personalized organization of the educational process. Schools and universities will inevitably turn into a synthesis of classrooms and a hybrid cloud (a storage of educational information). Firstly, Education will inevitably be followed by the transformation of the sociopolitical sphere, since education plays an important role in the modern economy. The point is that high-quality education will not be available to everyone, which will create prerequisites for economic and political inequality in countries. Therefore, at the present stage of the development of digital technologies, it is important to identify potential risks and threats associated with the development of new technologies and artificial intelligence, which may be of an international conflict-causing nature. It is equally important to monitor collisions that may be related to logic and decisions made by artificial intelligence (automated systems in the field of medicine, court, guardianship and guardianship, etc.). Secondly, the coming era of surveillance of a person creates a problem of threats to civil liberties, when the fight against crime is inevitably associated with the identification of each individual, which, in turn, serves as material for both the criminal world and those who want to establish total control over society. This also includes the ability to manipulate public consciousness with the help of artificial intelligence. Therefore, there is a need for constant and systematic public monitoring, public and expert discussions on the observance of civil rights and freedoms. Scientific community has to cooperate with the programmers and specialists in the field of electronics to improve security methods. The expert community as a whole should learn to respond flexibly to any global and local changes in the field of digital technologies, since the upcoming transformations in the political and socio-economic sphere may be of a cardinal nature. Thirdly, it is necessary to create an open global innovation system on an international scale. With this goal, it is important to expand partnership between governments, scientific and expert communities, and universities around the world. Without international
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cooperation, it is almost impossible to build a “Higher intelligent society”. In order to promote the ideas of cooperation and building a “Higher intelligent society” to the masses, the media need to spread a culture of positive perception of the Smart Nations society, a new synergy of human existence.
5 Conclusion Thus, further prospects for the study of the analysis of opportunities and threats associated with the socio-economic and political transformation of the Smart Nations society will not lose their relevance for many more years. The further prospects of the presented research, in which the authors tried to accumulate a number of questions on the topic under consideration, are extensive, due to the versatility of the phenomenon and the debatable nature of the issues raised.
References 1. 1TV: Cell towers are being set on fire in the UK due to fears that the coronavirus is spreading mobile communications (2020). https://1tv-ru.turbopages.org/1tv.ru/s/news/2020-04-07/383 437-v_velikobritanii_podzhigayut_sotovye_vyshki_iz_za_opaseniy_chto_koronavirus_rasp rostranyaet_mobilnaya_svyaz. Accessed 08 Apr 2021 2. Baranov, N.A.: Political aspects of digitalization: the choice between security and freedom in the global world. In: Proceedings of the VI International Scientific Congress Globalistics: Global Problems and the Future of Humanity. MOOSIPNN N. D. Kondratieva, Moscow (2020) 3. Forbes: Hiroyuki Onoda, General Director of LLC Mitsubishi Electric (RUS), told Forbes about the implementation of the Japanese national strategy “Society 5.0” (2018). https://www.forbes.ru/partnerskie-materialy/367837-obshchestvo-50-yaponskie-teh nologii-dlya-cifrovoy-transformacii. Accessed 08 Apr 2021 4. Fukuda, K.: Science, technology and innovation ecosystem transformation toward society 5.0. Int. J. Prod. Econ. 220, 107460 (2020) 5. Guterres, A.: Remarks to the general assembly on the secretary-general’s priorities for 2020 (2020). https://www.un.org/sg/en/content/sg/speeches/2020-01-22/remarksgeneral-ass embly-priorities-for-2020. Accessed 08 Apr 2021 6. Horvitz, E.: AI, people, and society. Science 357(6346), 7 (2017) 7. Julsrud, T., Krogstad, J.: Is there enough trust for the smart city? exploring acceptance for use of mobile phone data in Oslo and Tallinn. Technol. Forecast. Soc. Chang. 161, 120314 (2020) 8. Lenta: Residents of the Moscow region came out to fight against the “DNA-affecting” 5G tower (2020). https://lenta.ru/news/2020/10/20/vyshka/. Accessed 08 Apr 2021 9. Lenta: Conspiracy theorists attacked cell towers to save themselves from the coronavirus (2020). https://lenta.ru/news/2020/05/26/mda/. Accessed 08 Apr 2021 10. Manby, B.: The sustainable development goals and «legal identity for all»: «First, do no harm». World Development, 139, 105343. (2021). 11. MK.ru: Robotization is coming: 20 million unemployed people may appear in Russia (2020). https://www.mk.ru/economics/2020/07/24/gryadet-robotizaciya-v-rossii-mogut-poy avitsya-20-millionov-bezrabotnykh.html. Accessed 08 Apr 2021 12. Numa, A.: Artificial intelligence as the new reality of e-justice (2021). https://eestonia.com/ artificial-intelligence-as-the-new-reality-of-e-justice/. Accessed 08 Apr 2021
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13. RBC: Futurologist Harari named three main threats to humanity in the 21st century (2020). https://www.rbc.ru/trends/futurology/5e2ef4499a79474925acdf08. Accessed 08 Apr 2021 14. Sneps-Sneppe, M.A., Namiot, D.E.: On open source smart city platform: How to get it? Mod. Inform. Technol. IT-Educ. 12(1), 233–241 (2016) 15. UN General Assembly Resolution No. 68/167 of December 18, 2013 «The right to privacy in the digital age» (2014). https://undocs.org/pdf?symbol=en/a/res/68/167. Accessed 08 Apr 2021 16. World Economic Forum: The global risks report 2019 (2019). http://www3.weforum.org/ docs/WEF_Global_Risks_Report_2019.pdf. Accessed 08 Apr 2021 17. Ylipulli, J., Luusua, A.: Smart cities with a Nordic twist? Public sector digitalization in Finnish data-rich cities. Telematics Inform. 55, 101457 (2020) 18. Yudina, M.A.: The impact of digitalization on social inequality. Living Standards Population Regions Russia 1, 97–108 (2020) 19. Zuboff, S.: Big other: surveillance capitalism and the prospects of an information civilization. J. Inf. Technol. 30, 75–89 (2015)
Development Prospects of SMART Grid in the Energy Sector of Kazakhstan V. G. Antonov1(B) and Y. S. Petrenko2 1 State University of Management, Moscow, Russia 2 Plekhanov Russian University of Economics, Moscow, Russia
[email protected]
Abstract. The contribution investigates the forecast of the development of the energy industry of Kazakhstan, compiled on the basis of the foresight methodology. The authors summarized the assessments of 136 leading experts in the field of energy and presented the main development trends. The national energy sector is developing under the influence of the general trend of digitalization and the increase in environmental requirements. However, the use of artificial intelligence is determined by the peculiarities of the state of the national energy system. The purpose of the research is to study development prospects of Smart Grid in the energy sector of Kazakhstan based on the analysis of stakeholders’ opinions who are responsible for the innovative development of the industry. Keywords: Development · Energy · Forecast · Foresight · Kazakhstan · Smart Grid
1 Introduction The future of the global energy sector will depend on the specific features of the future economy. In the coming decades, it will combine non-industrial, industrial and postindustrial types of production. It is the structure of the future economy that will determine the demand for different energy sources. To date, there is an experience of the first application of artificial intelligence in the industry. We can say that the world and domestic energy industry is actively studying and soon the work of enterprises and our everyday life will be provided by “smart energy”. The foundations of the “energy of the future” are being laid today. They are formed in scientific research and new processes in production, discussed by specialists and become part of training programs. According to the development strategy of Kazakhstan, the share of green energy should be 50% of the total energy consumption [3]. Today, the entire RES balance of Kazakhstan is 1.8–2% of the total generation volume. By 2025, this indicator is planned to be reached at the level of 6%. The modern energy industry is already actively using various digitalization tools. There is a significant gap between the demand for electricity and existing grid capacities, the share of decentralized generating enterprises is increasing, and this pushes energy © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 310–315, 2022. https://doi.org/10.1007/978-3-030-94873-3_38
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companies to work on optimizing energy management and encourages the introduction of smart technologies throughout the product creation chain. The possibilities of using Smart Grid in the energy sector are also being considered in Kazakhstan [5]. The future is formed every day, and the energy of human thought eventually turns into the energy of large machines and convenient personal devices. We can “foresee” the future of our energy industry by processing a lot of personal assessments of domestic experts.
2 Methodology In 2020, a study of the image of the future and popular professions in the energy industry of the Republic of Kazakhstan was conducted in the country, in which the authors participated, and which ended with an atlas of new professions and the definition of future competencies [1]. The presented contribution is a continuation of this research. The study was conducted in accordance with the foresight methodology using the Delphi expert assessment method as it is recommended by UNIDO (United Nations Industrial Development Organization) as a basis for determining trends in the development of the industry. Foresight should be understood as a systematic means of promoting scientific and technological development, which can have a strong impact on the industry competitiveness, wealth creation and quality of life. The methodology is carried out by combining the experience of researchers, business people and government officials [7]. The industry employs about 150 thousand people. Highly qualified specialists who can act as experts make up about 10%. Thus, the total aggregate of the expert community is 15 thousand. A total of 136 experts were interviewed, which provides a confidence probability of 90% with a sampling error of ±7%. Our experts are qualified: more than half of them have been working in the industry for more than 15 years, and another 13% have experience from 10 to 15 years. The average experience of the interviewed experts was 13 years, which is optimal for understanding the current problems and development prospects of the industry. Therefore, the forecasts made by experts combined knowledge of technological innovations with an understanding of the specifics of the real situation in the country and the industry. High representativeness ensures the proper reliability of the obtained results. The survey was conducted on the basis of the Google Forms electronic survey platform, the questionnaire was submitted to experts for filling in 3 languages: Kazakh, Russian and English. The authors participated in the development of the questionnaire methodology, collection and processing of empirical material, as well as obtaining the presented results on its basis.
3 Results The future of Kazakhstan’s energy industry is being created by the joint efforts of the community of interested participants. Today, the expert community forms the first image of the future. The uncertainty of the future is high, but this opens up opportunities for creating an amazing and responsible new energy civilization. The forecast of the creation of “smart energy” in Kazakhstan is based, according to experts, on several breakthrough areas. The main breakthrough is expected in the field of monitoring and data processing, according to 56% of experts. Promising areas
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of digitalization of production processes are also the sphere of energy transmission and distribution (43%) and production management (ERP) (39%). Innovations in the energy sector are aimed at improving technologies for the production, delivery and storage of electricity. New opportunities are opening up for managing power systems of various scales through the introduction of “smart” networks and digital substations, the development of consumer services and commercial accounting solutions. The analysis of expert assessments and discussions of the foresight sessions allowed us to identify the following main trends in the development of Kazakhstan’s energy sector: 1. Introduction of new generation, transmission and distribution technologies, including smart technologies – 65% of industry experts believe that this trend will dominate the development. 2. Digitalization, Big Data collection and analytics – 60% of experts estimated the predominant influence of this trend. 3. The growth of environmental requirements is considered as a trend of future influence by 51% of experts. 4. Changes in the structure of energy sources will be an important trend according to 48% of estimates. 5. Changes in consumer preferences will affect the development of the energy branch according to 30% of Kazakhstani experts. In the development of “smart energy” in Kazakhstan, promising areas are the introduction of sensor devices (smart sensors), the transition to ultra-high-capacity batteries and electric microgrids. Experts also consider it important to use energy aggregation platforms and flexible solar panel generators. In the near future, our energy industry will be controlled by an artificial intelligence that plans production. Control and automation of energy generation, transmission and consumption will be carried out using “smart systems”, and technical documentation and accounting will be carried out in electronic forms on the principles of blockchain. Every third Kazakhstan expert points to the increasing risks of climate change and environmental problems that are so important in the new energy civilization. The problems of depletion of energy resources seriously concern domestic experts and they see several promising areas for ensuring the energy of the future. The environmental friendliness of energy will increase thanks to the introduction of digital technologies that will control rational production and consumption. Experts believe that it is possible to rationalize consumption and even export electricity from the republic. For the development of exports, it is necessary to harmonize the technical, administrative and social norms of the closest partner countries in the EAEU and create a single electric power market. In the near future, changes in the behavior of energy consumers will increase. It is expected that consumers will significantly reduce energy consumption through the introduction of energy management (28% of expert estimates), and an increase in electricity consumption by individuals will occur due to the mass appearance of passenger cars and electric trucks (17%). Experts also note that it is becoming relevant for consumers to
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use energy produced in compliance with environmental standards. Some consumers are already ready to pay for energy from alternative sources (23%). Artificial intelligence (Smart Grid) will be widely used in the dispatching service and in open networks of Kazakhstan. Smart power supply networks ensure the transition to fully automatic control and management of the power system. For safety issues, it is especially important that they allow you to automatically prevent and eliminate emergency situations [2]. Experts see the prospects for the development of Smart Grid precisely in improving the reliability of networks and increasing the efficiency of their operation, the ability to ensure the uniformity and stability of electricity generation, which ensures cost reduction and additional benefits for both producers and consumers. The expansion of the use of renewable sources increases the relevance of the application of smart networks. Renewable sources generate power unstable, depending on meteorological conditions. Excessive power needs mandatory consumption, since it can disable the entire power system. The use of smart networks allows you to quickly connect an additional load, use backup batteries and thus prevent the danger of exceeding the generated power over the consumed one. The components of the Smart Grid are: – – – – – – –
the ability to self-repair after power supply failures; the possibility of active participation in the work of the consumer network; the network’s resistance to physical and cybernetic interference of intruders; ensuring the required quality of the transmitted electricity; ensuring the synchronous operation of generation sources and electricity storage units; the emergence of new high-tech products and markets; improving the efficiency of the power system as a whole.
During the discussion and forecasting of the future of Kazakhstan energy industry, the most promising technological solutions in the field of dispatching and management of energy distribution were identified. Through the use of various components of digitalization, such as service platforms, smart devices, the cloud and advanced analytics, companies in the industry are able to increase the lifecycle of infrastructure assets, optimize flows in electric networks and innovate, focusing on customer-oriented products. The prospects of using Smart Grid allow you to get additional advantages in asset lifecycle management. Technological solutions can provide real-time remote control or predictive maintenance to extend the lifecycle or operational efficiency of generation, transmission or distribution assets and infrastructure. Optimization and aggregation of power systems are possible thanks to real-time load balancing, network management and end-to-end connected markets provided by connected assets, machines, devices and advanced monitoring capabilities. Integrated customer service is provided by innovative products and services with digital technology related to the energy production and management, combined into consumer complexes. Hyperpersonalized connected services outside the electricity value chain will adapt to the consumer. And in this way, electricity is transformed from a commodity into a consumer experience. As the energy sector continues to adapt to various ongoing transformations, digitalization should become a key priority. According to the participants of the foresight,
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Smart Grid has a huge potential both in the energy sector of the republic and in the global energy system. So it is possible to bring electricity production and consumption to a qualitatively new level.
4 Discussion The issues of using Smart Grid are considered in the scientific discussion from various sides. Researchers agree that the sustainable development of territories requires innovative solutions in the field of energy usage [4]. The regional and technological view of the problem prevails. Thus, a number of sientists note that the development of modern cities is determined not only by the physical state of the infrastructure, but special cyber relations develop within urban agglomerations [6]. Urban space management should include the development of clear rational standards for the use of modern technologies designed to improve the quality of life of the population. It is also necessary to take into account the participation and influence of various stakeholders that influence the development of a smart city. The authors consider the future of energy development in the broad aspect of creating a so-called new “energy civilization”. We believe that major technological breakthroughs will occur in the energy sector in the coming decades, the technological revolution has not yet fully occurred. But there will be a real revolution in the social model of the energy consumption, since modern energy is connected to all spheres of the social life. This integration is based on completely new principles of interaction “nature-society-man” and the energy-ecological-economic approach is already gaining strength. This approach is shared by researchers who claim that with the emergence of an intelligent network, residents can plan energy consumption in accordance with the demand response program and bridge the gaps between supply and demand [9]. We propose to develop research and discussion, consider the change in the very nature of the energy consumption [8, 10]. The industrial economy as created an energy civilization, the growth of which was carried out on the basis of the organization of large systems and man was only an element of the machine system. In the near future, neoindustrial production will finally be formed, where human creative activity is provided and serviced by self-organizing energy systems. A new energy culture is emerging, using all the possibilities of energy and artificial intelligence for harmonious, non-destructive interaction with the surrounding world. The improvement of technologies and technical achievements are not aimed at obtaining more profit, but for the better organization of the people’s and communities’ development. The new energy culture is based on the application of complex energy management systems in real time using decentralized sources. The energy sector is becoming part of a global technological system with a high level of environmental friendliness, low energy losses and a new model of conscious rational consumption. The development of a new energy culture depends on social norms and people’s behavior, and not only on the power of generation or technological innovations.
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5 Conclusion The general vision of the future of energy suggests that the country has achieved complete harmonization of traditional and alternative electric power, primarily through the introduction of hybrid generating systems: the generation and distribution of electric and thermal traditional and alternative capacities occurs with the maintenance of the consumption schedule, by combining centralized and autonomous consumption based on consumer requests. The majority of experts (56%) believe that industry enterprises are ready to support the application of innovations, but there are also many skeptics among professionals who consider the domestic energy industry to be unprepared for the introduction of innovative solutions. In the near future, the maneuvering capacity sector will be created based on a smart system of capacity regulation in the country’s energy system and regions using the optimal reserve of each thermal power plant included in the system, energy from renewable energy facilities, other energy generators, as well as energy storage complexes of various forms and types. The maneuvering capacities complex will allow saving on the purchase of maneuvering capacities from abroad and will become the basis for a wide application of Smart Grid.
References 1. Atlas of new professions and competencies of Kazakhstan (2020). https://www.enbek.kz/ atlas/en/industry/2. Accessed 21 Apr 2021 2. Blum, H., Legey, L.F.L.: The challenging economics of energy security: ensuring energy benefits in support to sustainable development. Energy Econ. 34(6), 1982–1989 (2012) 3. Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan: Energy statistics (2021). https://stat.gov.kz/official/industry/30/statistic/6. Accessed 24 Mar 2021 4. Cuneo, A., Ferrari, M.L., Traverso, A., Massardo, A.F.: Sustainable district development: a case of thermoeconomic optimization of an energy hub. Entrepreneurship Sustain. 2(2), 74–85 (2014) 5. Kazakhstan Energy Week: XII Eurasian forum kazenergy the future of energy sources: Innovative growth. Final report (2021). http://kazenergyforum.com/wp-content/uploads/files/KEW2019-summary-report-ru.pdf. Accessed 21 Apr 2021 6. Korne´c, R.: The role of stakeholders in shaping smart solutions in Polish cities. Entrepreneurship Sustain. 7(3), 1981–1995 (2020) 7. Kováts, F.: Foresight: A Tool for Pre-accession Countries to Face the Challenges of Globalization and Integration. UNIDO, Vienna (2000) 8. Petrenko, Y., Denisov, I., Koshebayeva, G., Biryukov, V.: Energy efficiency of Kazakhstan enterprises: unexpected findings. Energies 220(13), 1055 (2020) 9. Sajjad, A., Imran, K., Sadaqat, J., Ghulam, H.: An optimization based power usage scheduling strategy using photovoltaic-battery system for demand-side management in smart grid. Energies 14(8), 2201 (2021) 10. Velinov, E., Petrenko, Y., Vechkinzova, E., Denisov, I., Siguencia, L., Gródek-Szostak, Z.: “Leaky Bucket” of Kazakhstan’s power grid: losses and inefficient distribution of electric power. Energies 13, 2947 (2020)
Creation of Innovative Ecosystems as an Actual Trend of Technological Development V. G. Smirnova1(B) , Zh. K. Baziyan2 , and G. R. Latfullin1 1 State University of Management, Moscow, Russia
[email protected] 2 The Office of the Artsakh Republic President, Stepanakert, Republic of Armenia
Abstract. The contribution is devoted to the study of the prerequisites and opportunities for the formation of innovative ecosystems that would allow, by ensuring the implementation of all stages of the innovation process, to reduce the existing gap between research activities and business. The paper reveals the essence of the ecosystem approach, which allows us to apply the principles of the vital activity of natural ecosystems in the study of the nature of the economic agents’ interactions, models of their innovative activity and relationships with the functioning environment. Considering technoparks as potential local innovative ecosystems and relying on the experience of the most successful technoparks in the world, the authors drew a parallel between them and natural ecosystems, highlighting a number of similarities and key characteristics. The identified properties can become the basis for modeling the innovative ecosystem of a modern technopark. Keywords: Innovation ecosystem · Knowledge transfer · Symbiosis · Technological development · Technopark
1 Introduction The presence of a favorable environment that promotes the integration of business, science and education is extremely important for the implementation of the innovation process, the result of which is an innovation – a product of intellectual activity introduced into the commercial circulation. Companies cannot create innovations in isolation: interaction with other “players” is vital, since innovative and technological entrepreneurship is based on the achievements of science [4]. Similarly, universities and research organizations cannot successfully carry out their activities without interaction with the business sector, which generates demand for certain types of fundamental and applied research and specialists. Since the middle of the last century, there has been an understanding in a number of countries of the need to create conditions for a symbiosis of business, science and education. At the same time, the first technoparks appeared on the basis of leading technical universities, around which high-tech companies were located. Over time, they have become unique spaces where technological breakthroughs have taken place as a © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 316–323, 2022. https://doi.org/10.1007/978-3-030-94873-3_39
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result of close interaction between universities, research organizations, small, medium and large companies, startups, venture investors, government agencies and development institutions. First, the Silicon Valley of the USA, and later the American “Research Triangle”, the Tsukuba technopolis and Kanagawa Science Park in Japan, the Chinese Zhongguancun Technology Park, the One-North business district of Singapore, the Bangalore Technopark in India, the Swedish Ideon science park, the French Sofia-Antipolis technopark, the Cambridge Science Park in the United Kingdom and many others have become high-tech capitals, symbols of scientific and technological progress, centers of attraction for corporations, startups and technical specialists from around the world. It should be noted that there is no clear distinction between such territories of innovative and technological development as a technopark, a scientific park, a scientific and technological park, a technopolis, a technological valley. Their differences are most often due to national characteristics, the size of the territory, the dominance of the scientific or technical component, and so on. These differences are not significant for the purposes of this study, so the authors will use the concept of “technopark”. More than 150 technoparks have been created in Russia in recent years, but the existing gap between university research and production has not been overcome, and the culture of startups has not been properly developed. The accumulated experience allows us to conclude that most often when creating technoparks, resources were concentrated on the formation of physical infrastructure and “greenhouse conditions” for start-up businesses in the form of a reduced rental rate and tax benefits. However, insufficient attention was paid to creating a favorable environment for interaction during the implementation of the innovation process from the origin of the idea to its commercialization. As the experience of the US Silicon Valley or the Cambridge Science Park shows, the complex, nonlinear process of the formation of such a symbiosis takes years, so accelerated, catching up development, imposed “from above” is impossible. Recently, the concept of innovative ecosystems or the ecosystem approach, which is based on the application of the principles of the vital activity of natural ecosystems in the study of the economic agents’ interactions, the nature of this interactios, models of their innovative activity and their relationships with the functioning environment, is gaining more and more popularity [8]. In accordance with this, in innovative ecosystems, by analogy with natural ones, there are close relationships between all participants, their permanent interaction with each other and with the external environment is carried out. Thanks to this, the ecosystem not only remains viable, but also continues to develop.
2 Methodology The concept of “ecosystem” (from the Greek “oikos” - dwelling place and system) was first introduced into scientific circulation by the English ecologist Tensley in 1935, meaning by it any set of jointly living organisms and their environment [11]. Despite the fact that the term was borrowed from the biological science, today it is actively used in management, since socio-economic systems are in many ways similar to natural systems. Any natural system is not something linear, it consists of a set of organisms, their interrelations, which all together support the viability of each other and the viability of the system as a whole [3].
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The development of approaches to the concept of “innovation ecosystem” actually began with the fact that in 1993, an American scientist in the field of coevolution in economic and social systems, Moore, used the term “ecosystem” in the context of entrepreneurial activity [7]. The scientist suggested considering companies not as units of any industry, but as part of a “business ecosystem” that covers many different industries. According to Moore, being in a business ecosystem, companies co-evolve around innovations: they interact on the basis of the principles of cooperation and competition to promote new products, meet customer needs and, thus, reach the next level of the innovative development [7]. Yakovleva’s work is of interest, in which the innovation ecosystem is considered as a community that has both formal and informal relationships between participants, which is a catalyst for their cooperation for the exchange, dissemination and distribution of knowledge and other resources, as well as their transformation [12]. Since modern technoparks are a form of integration of organizations focused on the production, dissemination and use of knowledge, innovative ecosystems can also be formed at the level of technoparks. Moreover, just as biological ecosystems together make up the biosphere, so innovative ecosystems can be created at various levels. The technopark as an ecosystem can participate in the formation of larger innovative ecosystems, such as innovation clusters, regional and national innovation ecosystems. The ecosystem approach involves drawing an analogy between natural ecosystems and socio-economic systems. Therefore, the authors, considering the technopark as an innovative ecosystem and relying on the experience of the most successful technoparks in the world, drew a parallel with natural ecosystems, highlighting a number of basic characteristics that can become the basis for modeling the ecosystem of the technopark (Table 1). Table 1. Comparison of the natural and innovative ecosystem of the technopark Characteristic
Natural ecosystem
Technopark as an innovative ecosystem
External environment
A complex of physical, chemical and biotic factors affecting organisms: climate, atmosphere, the world ocean, etc
A complex of economic, geographical, scientific and technical, political, socio-cultural and other factors
Heterogeneity of participants Animals, plants, fungi, microorganisms
Startups, small, medium and large companies from various fields and industries, universities, research institutes, venture companies, business accelerators, business angels, development institutes, technology transfer centers, etc (continued)
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Table 1. (continued) Characteristic
Natural ecosystem
Technopark as an innovative ecosystem
The role of participants
Each participant takes its place Each participant performs one in the trophic (food) chain or more stages of the innovation process
The nature of the relations of the ecosystem participants
Symbiosis and mutualism: mutually beneficial coexistence, in which the presence of one organism becomes a prerequisite for the existence of another and vice versa
Mutually beneficial cooperation, scientific collaboration, joint projects
System-forming process
Movement of matter and energy flows
Knowledge transfer
Source: authors.
3 Results External environment. Like natural ecosystems, the innovation ecosystem of the technopark also has an external environment, the factors of which affect its development and without interaction with which it would not be viable. The functioning and development of technoparks is influenced by many factors, including the geographical location, the level of socio-economic development, scientific, technical, innovative and human potential of the region of placement, cultural characteristics, state policy, in particular, the policy on regulating the activities of technoparks, and much more. For example, it is known that about 40% of all Russian technoparks were created in Moscow or the Moscow region [2], and this is precisely due to a complex of favorable factors that distinguish these regions from the rest. Moscow is the capital, the largest metropolis and one of the most developed regions of the country in terms of the main indicators of socio-economic development. Moreover, Moscow is a major world and domestic scientific center with a developed scientific, technical, educational and industrial base. More than 500 research institutes and organizations performing research and development work, as well as about 50 technical universities operate here. The Moscow Region is also known for its high research potential. Thus, 8 out of 13 Russian science cities are located in the Moscow region, and they form a “research belt” around the capital. As for other regions, the leading technoparks of the country that really have the potential for the formation of innovative ecosystems (the High-Tech Technopark of the Sverdlovsk Region, the Scientific and Technological Park of the Novosibirsk Akademgorodok “Akadempark”, the Ankudinovka Technopark) are located in regions that are distinguished by a historically high level of the scientific development, higher education and innovative entrepreneurship, and where many leading research organizations, universities and industrial enterprises of the country are located.
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The factor of state policy in the field of creation and functioning of technoparks deserves special attention. It includes, in particular, the creation of a new and improvement of the existing national and regional legislative framework, the application of state support measures for management companies and residents of technoparks, the attraction of funds from private investors, federal and regional budgets, the activity of development institutions. In addition, at the first stages of the formation of high-tech companies and innovative projects, the key issue is the participation of the state in the organization of a support system in the form of grants, tax benefits and other preferences. No innovation ecosystem can function effectively without public investment and regulation. In return, the state receives: in the short term – large tax deductions from successful innovative projects, and in the long term – sustainable socio-economic and technological development. Heterogeneity of participants and their role in the ecosystem. If the main participants of the natural ecosystem are various living organisms, then the subjects of the innovation ecosystem of the technopark are startups, small, medium and large companies and corporations, universities, research centers and institutes. And just as in a natural ecosystem, each organism performs its role in the trophic chain, the participants of the technopark perform certain stages of the innovation process. Thus, universities and research organizations carry out fundamental and applied research, the results of which can be used in production both in the short term (prototypes, new processes) and in the long term, raising the level of high-tech production to a new level [5]. In addition, universities contribute to the formation and development of human capital: it is here that highly qualified specialists are trained who are capable of innovative activities and have a developed innovative culture. Many ideas for startups are just generated by students at the university. In turn, business acts as a conductor of innovations, performs the production part of the innovation process, promotes the commercialization of research and development results, their introduction into the market of high-tech products and services. The nature of the relations of the ecosystem participants. In natural ecosystems, there is a symbiosis and mutualism of organisms, that is, mutually beneficial coexistence, an example of which can be the relationship of pollinators and plants: while an insect or animal receives nectar or fruit from a plant, it also collects and transmits pollen, thus performing a vital function in pollinating flowering plants. Similar relations can be observed between the participants of technoparks. The forms of mutually beneficial cooperation can be scientific collaboration, performance of contract scientific research, licensing, consulting activities, engineering services, implementation of joint projects in which technologies are transferred from science to business and commercialization of the results of research activities. It should be noted that for cooperation, physical placement on the territory of the technopark is not necessary, since it often requires the presence of a very large territory. Corporations and universities can place separate divisions in the technopark or act as a partner: the main thing is close cooperation. This is especially important for Russia, since cooperation between business, science and education is poorly developed here. It is obvious that there is a need for such cooperation, and it can develop in the conditions of the innovative ecosystem of the technopark.
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In addition to the interaction of ecosystem participants with each other, it is also important to develop cooperation between technoparks and similar organizations. This is very important from the point of view of the exchange of knowledge, experience and best practices, and also creates wide opportunities for the mobility of residents and the search for partners. Today, a lot of technoparks are united into national, regional and international associations. Examples of such associations are the International Association of Science Parks (IASP), the Association of Asian Technoparks (ASPA), the Russian Association of Clusters and Technoparks, the Association of UK Science Parks (UKSPA) and many others. For example, the International Association of Science Parks annually holds the IASP World Conference – a large-scale event attended by managers, residents of technoparks from 100 or more countries, as well as experts and representatives of government agencies, and discuss the latest trends in the development of technoparks, exchange experience and establish useful contacts. One of these conferences was held in the Moscow Skolkovo Technopark in 2016 and contributed to the establishment of partnerships between many technoparks from different countries.
4 Discussion In natural ecosystems, there is a continuous exchange of energy and matter between living and inanimate nature. Energy and matter are constantly needed by living organisms, and they draw them from the surrounding inanimate nature. According to the authors, the system-forming process of the innovation ecosystem of the technopark, thanks to which the innovation process is carried out, is the transfer of knowledge. Knowledge transfer includes a wide range of different types of activities for the exchange, dissemination and transfer of knowledge, experience, skills, abilities, the movement of intellectual property between universities, scientific organizations and business, aimed at supporting mutually beneficial interaction and cooperation [9]. It can be carried out between employees, groups of people, structural divisions of organizations, as well as between organizations as a whole. According to research, the exchange of knowledge in organizations contributes to synergy and increase the efficiency of organizations [6]. The ways of knowledge transfer in the technopark can be: performing joint research and development, providing consulting services, creating corporate portals and communication platforms, mentoring, holding joint forums, conferences, discussions, webinars, using various types of training, master classes, creating academic spin-off companies, technology transfer centers [10]. Internships for students in companies, various staff rotation programs, migration of scientists and specialists from one organization to another are also well-proven ways of exchanging and transferring knowledge in practice. We should not underestimate the role of informal personal communication and networking, random meetings of employees of technopark organizations in the corridors, cafes and restaurants, fitness centers, where people exchange views on a particular problem, share their experience, give each other valuable advice. Renat Batyrov, General Director of the Skolkovo Technopark and a member of the Board of Directors of the Association of Asian Technoparks (ASPA), shared Skolkovo’s experience in implementing the “Concept of Controlled Randomness [1]. The essence of the concept is that it is impossible to predict every partnership, so you need to create working community
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formats that will then begin to reproduce themselves. These are various educational, cultural and sports programs, “InvesTor” challenges, where invited venture investors analyze startup presentations, Startup4Startup workshops, when some residents share their expertise with others, the “Visit a resident” movement, IT exhibitions, corporate competitions and accelerators. Moreover, it is possible to establish useful contacts in the technopark during much less formalized events. For example, in Skolkovo they came up with dinners called “#nikogdaneeshvodinochku”, Friday parties and even created a rock band from residents, employees and partners of Skolkovo [1]. Modern R&D most often occurs at the junction of several disciplines, often completely far from each other, which means that it implies personal and rather intensive communication between different specialists. Therefore, it is a difficult task to ensure the processes of knowledge transfer in the technopark, which requires extraordinary solutions.
5 Conclusion All over the world, technoparks have long proved their effectiveness as industrial sites for the introduction of the results of research and development work into production. But today, high technologies are rapidly developing, new forms of business and communication are emerging, and the role of universities is no longer limited to providing educational services and carrying out research activities. In these conditions, the technopark, as a form of integration of business, science and education, should not only change and adapt to new realities, but also be at the forefront of these changes, become a living and mobile organism – an innovative ecosystem. The accumulated experience in the creation and development of technoparks shows that the most successful of them have really formed a unique environment that has some similarities with biological ecosystems. The creation and development of innovative ecosystems is an actual trend in the innovation policy of many states today, in particular in Russia. The aspects of the development of technoparks as innovative ecosystems considered in the contribution, by analogy with natural ecosystems, are of practical importance and can be used to model the innovative ecosystem of technoparks to stimulate technological development. It should also be noted that the key characteristics of technoparks as innovative ecosystems considered in the work are not exhaustive and leave a good foundation for further research. The innovation ecosystem, as well as the complex processes of integration and knowledge transfer, primarily begin with the people working there. Therefore, when creating an innovative technopark, it is also necessary to pay attention to the formation of an appropriate culture. The culture that has developed in the technopark affects the motivation of people working there to transfer knowledge and generate breakthrough ideas: the values they share determine the individual attitude to the possession of knowledge and their subsequent exchange and transfer. Therefore, the urgent task is to maximize the disclosure of human potential for creating innovations through a culture that is friendly to the transfer of knowledge.
References 1. Batyrov, R.: How to increase the number of useful business contacts: a recipe from Skolkovo (2019). https://pro.rbc.ru/demo/5c8b6eaa9a79475347049cc5. Accessed 12 May 2021
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2. Bukharova, M., et al.: Technoparks of Russia: Annual Review (2020). https://akitrf.ru/upl oad/VI_Obzor_Technoparki_Rossii_2020.pdf. Accessed 12 May 2021 3. Dee, L.E., et al.: Operationalizing network theory for ecosystem service assessments. Trends Ecol. Evol. 32(2), 118–130 (2017) 4. Edquist, C.: The systems of innovation approach and innovation policy: an account of the state of the art (2001). https://www.researchgate.net/publication/228823918_The_Sys tems_of_Innovation_Approach_and_Innovation_Policy_An_Account_of_the_State_of_the _Art. Accessed 12 May 2021 5. Franco, M., Pinho, C.: A case study about cooperation between University Research Centres: knowledge transfer perspective. J. Innov. Knowl. 4(1), 62–69 (2019) 6. Marchiori, D., Franco, M.: Knowledge transfer in the context of inter organizational networks: foundations and intellectual structures. J. Innov. Knowl. 5(2), 130–139 (2020) 7. Moore, J.: Predators and prey: a new ecology of competition. Harvard Business Review (1993). https://hbr.org/1993/05/predators-and-prey-a-new-ecology-of-competition. Accessed 12 May 2021 8. Ritala, P., Almpanopoulou, A.: In defense of ‘eco’ in innovation ecosystem. Technovation 60–61, 39–42 (2017) 9. Smirnova, V.G., Baziyan, Z.K., Latfullin, G.R.: Corporate portal of a technopark as a unified communication platform. In: Popkova, E.G., Sergi, B.S. (eds.) ISC 2020. LNNS, vol. 155, pp. 1432–1439. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-59126-7_157 10. Smirnova, V., Latfullin, G., Baziyan, J., Sundukova, G., Shramchenko, T., Seidina, M.: Transfer of knowledge and its impact on integration processes in the technopark. In: Karabulatova, I.S. (ed.) Proceedings of the International Conference on Man-Power-Law-Governance: Interdisciplinary Approaches (MPLG-IA 2019), pp. 214–219. Atlantis Press, Paris (2019) 11. Tansley, A.: The use and abuse of vegetational terms and concepts. Ecology 16(3), 284–307 (1935) 12. Yakovleva, A.Y.: Factors and models of the formation and development of innovative ecosystems. Dissertation of Candidate of Economic Science. HSE, Moscow (2012)
Improvement of System of Environmental Support for Project Activities P. V. Zozulya(B) , A. V. Zozulya, and L. N. Derevyagina State University of Management, Moscow, Russia [email protected]
Abstract. In accordance with the environmental policy, mechanisms for preventing harmful effects on the environment are applied to projects which are classified as hazardous. In this contribution, the authors propose to consider the system of environmental support of project activities in relation to the project life cycle stages. That will allow developing environmentally-secured projects of economic activity on the territory and ensuring control of the negative impact at each stage of its implementation, and thereby improving the quality of the environment of the regions. At the same time, the analysis of scientific literature and legislative acts in the field of environmental safety and environmental management revealed problems of the environmental support system for project activities and the most obvious methods of eliminating existing problems. The authors draw conclusions about the need to improve the effectiveness of environmental-oriented management decisions by digitalizing mechanisms for regulating project activities and improving the quality of training of specialists with knowledge in the field of project management, environmental legislation, etc. Keywords: Digitalization · Environmental safety · Environmental support · Life cycle · Project
1 Introduction The solution of socio-economic problems, which guarantees the eco-oriented growth of the Russian economy, is a priority and requires the preparation and implementation of environmentally-secured projects of economic activity on the territory of regions [9]. An urgent problem of humanity is the protection of the environment and in this regard, all implemented projects, in particular, public, private, etc., should be developed in accordance with the requirements of the environmental legislation, comply with the strategy of sustainable development, i.e. meet the needs of modern citizens, do not harm the future generation. Compliance with the requirements of environmental legislation in the implementation of economic activity projects is mandatory both in the world and in Russia [1].
© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 324–330, 2022. https://doi.org/10.1007/978-3-030-94873-3_40
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2 Methodology To determine the possibility of implementing a project of economic activity on the territory and its compliance with modern environmental requirements of the legislation of the Russian Federation, it is necessary to determine a list of potential harmful effects on the environment of the project in relation to which it is necessary to apply the requirements of environmental legislation to prevent and minimize them. In international practice, the impact of projects on the environment is divided into three categories: The first group includes projects that are being implemented, the negative impacts from the implementation of which are absent or practically absent. Mechanisms for regulating these impacts are not applied to such projects. The second category includes ongoing projects with a minor negative impact. Therefore, the basic requirements of environmental regulatory legislation are taken into account in the justifying design documentation and fulfilled in the course of implementing projects of economic activity on the territory. The third (dangerous) category includes projects that, in the process of implementation or operation, can significantly negatively affect the quality of the environment. At the same time, this influence can be significant and cover huge territories. Special attention is paid to such projects all over the world by the state administration at all levels. When implementing such projects of economic activity on the territory of regions, various mechanisms of state regulation limiting these negative impacts are applied to them. In the Russian Federation, such mechanisms include environmental impact assessment, environmental audit, environmental expertise, environmental control, environmental monitoring [11].
3 Results The analysis of the project preparation practice has shown that there is no optimal system that takes into account environmental mechanisms that allow preparing environmentallysecured projects of economic activity in the region and making a decision on their implementation. In this regard, there is a need to create such a system of environmental support for project activities, which allows influencing the quality of implemented projects within the stages of their life cycle [7]. When making a positive decision on the implementation of the project, the customer and the investor are responsible, including in the material sense, for the consequences of the project implementation. In order to justify the expediency of continuing work to achieve the project goals, an EIA process is initiated which ensures the adoption of a management decision on the possibility of further implementation of the project, taking into account the potential negative impacts on the ecology of the region from its implementation and their consequences, based on the opinion of the public, as well as the preparation of environmental measures aimed at preventing or reducing negative impacts during the achievement of the project goals [10]. In accordance with the EIA methodology, it is carried out in three stages: 1. Notification of the project parties, preliminary analysis and formation of the technical specification for conducting an EIA on the project.
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2. Organization, direct execution of works and preparation of an interim version of documents within the framework of the project’s EIA. 3. Development of the final version of the documents in the framework of the EIA of the project. Results of the project’s EIA: – information on the nature and degree of the project’s environmental impact, alternatives and assessment of the socio-ecological and economic consequences of its implementation, as well as measures to minimize possible negative impacts of the project implementation; – establishing and taking into account the reasonable preferences of the interested in the project citizens; – making a decision to identify alternatives to the implementation of the project or to abandon it if it is impractical and impossible to minimize environmental damage within the framework of resource provision. The final version of the documentation within the framework of the EIA is submitted to the state environmental expertise to determine the further “fate” of the project. At the initiative of the customer, at the stage of project development, an environmental audit procedure is initiated for the project documentation of the planned activity to make an objective assessment and verification of compliance with environmental legislation, and its further submission to the state environmental expertise, it is also used to determine the feasibility and environmental and economic justification of investments in the project [4]. Environmental audit activities are carried out in three stages: 1. Planning within the framework of the environmental audit of the project, including the formulation of audit objectives, determining the most significant areas of research, methodological and methodological support, evaluation criteria and the procedure for conducting the audit work. 2. Preparation and documentation of the audit program, including a specific audit plan. In the process of developing the program, the auditor takes into account the requirements of the legislation, the time limits of the audit work, interaction ways with project participants, the need to attract technical specialists to carry out the audit work, and other specific features of the project implementation. 3. Direct audit work on the project, including an objective analysis of the project for compliance with the environmental legislation requirements. The auditor analyzes the project documentation, the work carried out within the framework of the project activity; develops proposals to reduce the harmful impact on the environment of the implemented project; forms and documents the auditor’s conclusions. The next element of the environmental support system at the planning stage of project activities is an environmental assessment which is a mandatory form of control of the EIA. It is carried out after the EIA and aimed at creating the compliance of project activities with established environmental standards.
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Environmental expertise is divided into state or public. The materials prepared within the framework of the EIA are provided for the state environmental expertise [8]. The state environmental expertise is carried out in three stages: 1. At the preparation stage of the environmental assessment, the submitted documents on the project are checked for their compliance with the legislation. 2. At the research stage, an environmental expert analysis of the submitted materials is carried out, in particular, the design solutions presented in the project materials and the results of field studies at the site of the proposed location of the object are studied. 3. At the final stage, the results of the environmental assessment of the project activity are summarized and an environmental expert opinion is drawn up. After that, a specially authorized body approves the order of the expert commission. It should be noted that the issues of project financing are considered only after a positive environmental expert opinion. At the stages of the project life cycle (from planning to completion of the project, up to the operation of the project activity object), constant, continuous environmental control is carried out, which is a system of legal norms and measures for the prevention, detection and suppression of the legislation violations in the field of environmental safety and environmental management, while the regulatory authorities have the right to enforce it. This mechanism is divided into three types: state environmental supervision, industrial environmental control, and public environmental control [3]. Assessment and analysis of the current state of the environment of the territories, determination and monitoring of the total potential impacts of the planned activities on the environment, taking into account existing ones, and prevention of negative consequences of these impacts, foreseeing potential changes in the state of the environment – all this requires the organization of environmental monitoring. It is carried out by authorized state bodies [2]. The environmental support system (regulatory mechanism) with reference to the project life cycle is presented in Table1.
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Table 1. Environmental support system for project implementation at various stages of the life cycle Life cycle stage Content of the life cycle stage
Regulation mechanism type
Initiation
Preparation of pre-project documentation to EIA; justify investments in the project Environmental monitoring
Planning
Preparation of the solution and project documentation for the project
Environmental monitoring; EIA; Environmental audit; State environmental expertise; Environmental control
Realization
Actual implementation of the project, operation of the facility/object
Environmental monitoring; Environmental audit; Environmental control
Completion
Closing the project
Environmental monitoring; Environmental control
Source: authors.
The presented differentiated system of environmental support of project activities by stages of the project life cycle allows us to develop environmentally-secured projects of economic activity on the territory, and thereby improve the quality of the environment in regions [6].
4 Discussion When analyzing the scientific literature and legislative acts in the field of environmental safety and environmental management, the problems of the system of environmental support of project activities are identified, which include: – insufficient number of specialists capable of providing environmental support for project activities; – the lack of a unified information systematized database of potential and real negative impact of projects on the environment; – the basis for conducting an EIA in the world practice is to help the initiator and investor of the activity in choosing an alternative to the project implementation, but in the Russian Federation this procedure is considered as an additional administrative barrier; – the actual non-necessity of conducting an EIA procedure if an environmental assessment procedure is not provided for a specific type of activity; – over the past decades, a large number of laws have been adopted in the field of environmental safety, and as a result, it is necessary to state the fact that there is loyalty in favor of project activities, especially socially significant ones, which violates the balance between ecology and economy, and the expansion of the list of objects which are subject to environmental expertise exacerbates the problem;
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– the coordination of actions of federal and regional executive authorities in conducting environmental expertise, environmental monitoring, etc. is not fully ensured; – the procedure for conducting an environmental audit in our country is not developed and is often implemented only in the case of attracting foreign investment; – the system of state environmental monitoring is widely developed in our country, but there are problems of duplication and fragmentation of information due to monitoring by different departments; – the lack of environmental education both among employees of the executive power and among persons implementing projects, at the same time, an important criterion for the project success is its economic efficiency, and not environmental and social aspects. The most obvious methods of eliminating existing problems and improving the system of environmental support for project activities are: 1. Creation of a state digital database of results, a system that takes into account environmental mechanisms that allow preparing environmentally-secured projects of economic activity in the region and making a decision on the implementation of project activities, while digitalization allows generalizing a large amount of data from these mechanisms. 2. Differentiation of powers and objects of the state regulation and control between various federal and local executive authorities. 3. Implementation of the EIA procedure for projects whose damage is insignificant, that will increase the significance of the procedure and ensure public confidence in the implemented projects. 4. Conducting the EIA procedure at the stage of the project conceptualization, that will help to make an environmentally sound investment decision on its implementation at the earliest stage. 5. Improving the regulation of relations between environmental auditors and state inspectors in order to ensure cooperation, resolve disputes, exchange experience, use the results of the environmental audit in the framework of environmental control. 6. Improving the quality of specialists’ training to ensure the implementation of the system procedures taking into account environmental mechanisms that allow preparing environmentally-secured projects of economic activity in the region and making a decision on the implementation of project activities [5]. 7. Implementation of environmental education and education of the regional population to realize the need to protect the environment. The listed directions of improving the system of environmental support for project activities will make it more transparent and increase the confidence in it of both economic entities and the population interested in the implementation of the project.
5 Conclusion As a result of the analysis of the current state of affairs in the system of environmental support for project activities, it was revealed that there is still a need to conduct
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procedures for the environmental support system for project activities because of the environmental illiteracy of the population and the irresponsibility of the initiators of the implemented projects. In addition, to increase the effectiveness of environmentaloriented management decisions, digitalization of the mechanisms for regulating project activities is needed to simplify the access of public institutions to obtaining environmental information about the project. However, the adoption of environmental-oriented decisions in the implementation of project activities requires constant improvement of the training quality for specialists in the field of project management, environmental legislation, etc. There are universities in our country, including the State University of Management, that train highly qualified specialists in the above-mentioned areas.
References 1. Brikoshina, I.S., Geokchakyan, A.G., Mikhalevich, N.V., Nikitin, S.A., Pavlovsky, P.V.: Analysis of the readiness of coal industry companies to switch to projectoriented management. Ugol 10, 28–33 (2020) 2. Kazakova, N.A., Kogdenko, V.G.: Monitoring of the main parameters of environmental safety of industrial production. Ecol. Ind. Russ. 25(3), 60–65 (2021) 3. Kiseleva, S.P., Vishnyakov, Y.D., Zozulya, P.V., Eroshchenko, S.V., Kanunnikov, O.V.: An integrated approach to the analysis and evaluation of the mechanisms of environmental and economic regulation of railway transport, taking into account the state environmental policy in the context of technological development of the economy. Russ. J. Resour. Conserv. Recycl. 4(7), 1–15 (2020) 4. Korchagina, T.A., Stepanov, Y., Burmin, L.N.: Method of environmental impact indicators assessment within coal enterprises footprint. Ugol 8, 119–127 (2018) 5. Lyalin, A.M., Zozulya, A.V., Eremina, T.N., Zozulya, P.V.: Current trends in training specialists in the coal industry. Ugol 9, 50–53 (2020) 6. Novoselov, A., Novoselova, I., Aliev, R., Avramenko, A.: Preventing regional social and environmental conflicts during oil pipeline construction projects. Entrepreneurship Sustain. Issues 7(1), 773–785 (2019) 7. Novoselova, I., Avramenko, A., Aliev, R.A.: Program for regional conflict prevention when using natural resources. Econ. Reg. 16(2), 637–648 (2020) 8. Vishnyakov, Y.D., Kiseleva, S.P.: Institutionalization of the formation of a civilization of risk and knowledge on the basis of a comprehensive examination of projects of complex systems and innovative technologies. In: Groshev, I.V. (ed.) Proceedings of the Annual International Forum Society. Trust. Risks, pp. 42–428. GUU, Moscow (2020) 9. Zozulya, A.V., Zozulya, P.V.: Problems of implementation of the national project “Ecology” in the context of the transition to sustainable development. In: Proceedings of the III AllRussian Scientific and Practical Conference Priority and Promising Directions of Scientific and Technical Development of the Russian Federation, pp. 30–33. GUU, Moscow (2020) 10. Zozulya, P.V., Zozulya, A.V.: Methodology of environmental support of project activities. In: Proceedings of the II Interuniversity Seminar Strategic Goal and Main Directions of State Policy in the Field of Ecology and Rational Use of Natural Resources, pp. 120–125. Publishing house “BelSU” NRU “BelSU”, Belgorod (2020) 11. Zozulya, P.V., Zozulya, A.V.: Environmental Impact Assessment. KNORUS, Moscow (2021)
Transformation of the Innovation Process with Digital Technologies E. N. Dunenkova(B) , E. A. Kakaeva, and S. I. Onishchenko State University of Management, Moscow, Russia
Abstract. Digital technologies have a significant impact on the transformation of the traditional course of the innovation process implementation. There is an opinion that this influence mainly extends to the use of specialized digital technologies for the design and marketing of innovative products. However, based on the research conducted on the materials of foreign innovative companies in the real sector of the economy, it was revealed that there is a more complex two-way transformation of the innovation process associated with both the direct use of digital technologies for its implementation and the digital transformation of the company’s products, which requires a radical restructuring of the innovation process and allows using digital customer value to simplify it. Three principal classes of transformation of innovative processes through digital technologies were identified. They differ from each other in the complexity level and the achieved synergetic effects: passive transformation, functional and organizational transformation, active transformation. It is noted that most often there is an active transformation which is a trend in changing innovation processes. Keywords: Digitalization · Digital transformation · Digitalization of values · Innovation process
1 Introduction Currently, more and more attention is paid in large innovative companies to the issues of effective construction of the innovation process, the choice of optimal organizational forms and technologies for its implementation. In the traditional sense, the innovation process is a set of three consistently implemented stages: the initiation of innovation, the research stage and the stage of commercialization and diffusion. At the first stage, a competitive idea is searched for and launched into development. The stage often includes conducting fundamental and exploratory research that sets the prospect of innovative development. At the second stage, scientific research and development are carried out to form a specific innovative solution. The third stage consists of commercialization, focused on the production, the introduction of the product to the market, and the passage through all stages of the product life cycle—from the first sales and mass demand to diffusion and global expansion. The stages of the classical innovation process are arranged sequentially or with minimal parallelization. The emergence and widespread application © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 331–338, 2022. https://doi.org/10.1007/978-3-030-94873-3_41
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of digital technologies has led to a significant transformation of the innovation process, the death of its individual stages and the parallelization of stages. The use of digital technologies is most widely manifested at the stage of designing an innovative solution and its implementation at the enterprise [6]. Actively used in the innovation process are CALS technologies, digital counterparts of products, technologies of augmented and virtual reality, technologies of simulation modeling, anisotropic design, additive technologies, etc. They allow us to significantly optimize the innovation process, exclude the stage of technological preparation of production from it, parallelize the design of materials and products, combine the company’s project cycles with contractors, etc. Ecommerce tools also influence the organization of bringing innovative products to the market and change the cycle of product commercialization. Electronic platforms and ecosystems are being developed to attract sources of innovation financing (for fund rising), communications with suppliers, joint developments, and open innovations. In this regard, the purpose of this work is to assess the transformation of modern innovation processes and organizational forms of innovative activity under the influence of digital technologies.
2 Methodology The influence of digital technologies on the innovation process is mainly considered through the prism of replacing traditional technologies for the implementation of its individual stages with digital technologies, primarily at the design and research stage of the innovation process [1, 6]. The issues of the impact of direct digitalization of products from the real sector of the economy on the innovation process transformation, the emergence of synergetic effects of digitalization of the innovation process stages and the digital transformation of the product offer are studied to a much lesser extent. The assessment of the impact of digital technologies on the innovation process was studied in a number of works [2, 4, 7, 8]. To assess the impact of digital technologies on the transformation of the innovation process, a study was conducted to analyze 30 large innovatively active companies in the real sector of the economy from 9 countries of the world that produce commercial products and implement innovative processes on an ongoing basis. In the course of the study, the following companies were analyzed: USA: Boeing; 3M; SpaceX; Honeywell International; General Motors; Lockheed Martin; Hexcel Group; Germany: Audi; Bayer; Siemens; BMW; Fubag; Great Britain: BAE Systems; Rolls-Royce; Spain: Mondragon Corporation; Iberdrola; Sweden: Volvo Group; ABB; Electrolux; Ericsson; France: AirBus Ind.; China: Huaway; Comac; Italy: Avio Aero; Ferrari; Leonardo; Zamperla; South Korea: Samsung; Huyndai; LG. Companies in the information technology sector, whose direct product is digital technology, were not considered in the study. The research data were formed on the basis of studying the companies websites and publications in the periodical press. The study was faced with two questions: (1) whether innovative processes in modern companies of the real sector of the economy are really transformed under the influence of digitalization and change the composition of stages, methods and the sequence of their implementation; (2) whether it is possible to differentiate the digital transformation degree of innovative processes under the influence of digitalization and to identify various forms of sustainable changes in innovative processes.
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To solve the research tasks, the study assessed the transformation degree of the innovation process under the influence of digital technologies for each company included in the sample based on a list of criteria that characterize such changes. The evaluation criteria, in accordance with the research hypotheses as a result of the literature review, were divided into two groups: (1) changes in the innovation process based on the replacement and addition of traditional technologies for implementing the stages of the innovation process with digital ones; (2) changes in the innovation process due to the digitalization of the company’s value proposition (business model) and due to the synergetic effect of the product digitalization and digitalization of the innovation process stages. According to each criterion, the companies were awarded points, in the base of their sum complex indicators were obtained [11] reflecting the transformation degree of the innovation process in the company for each group. CI tip =
N
ki ,
i=1
where CI tip is a complex indicator of the transformation of the innovation process under the influence of digital technologies; i is the number of the criterion for evaluating the transformation of the innovation process; N – the number of criteria for evaluating the transformation of the innovation process; ki is a criterion for evaluating the transformation of the innovation process under the influence of digital technologies. Among the evaluation criteria, there are: – evaluation criteria of the first group: the coverage of all stages of the innovation process by digital technologies; the technical level and set of digital technologies used in the innovation process; the unification or abolition of stages of the innovation process as a result of the use of digital technologies; achieving a synergistic effect from the use of unified digital technologies at several stages of the innovation process; – criteria of the second group: the convergence degree of digital technologies into the company’s products; the type of organizational transformation of the innovation process for integrating the development of digital technologies with the development of the physical component of the product; the presence of a synergetic effect from the digital transformation of the product and the innovation process; unification, abolition, parallelization of stages of the innovation process as a result of the product digitalization. Each criterion was evaluated on a three-point scale, within which 1 point corresponds to a low digital transformation of the innovation process, 2 points – average; 3 pointshigh. Complex indicators were the basis for dividing the studied companies by classes of the digitalization impact on the transformation of the innovation process, which was done on the basis of comparing these criteria in a matrix form. For each class of influence, a typification of changes in the innovation process was carried out, characteristic features were described.
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3 Results In the course of the study, a matrix was constructed that allows comparing combinations of two complex indicators of the innovation process transformation under the influence of digital technologies described in the methodology (Fig. 1).
Fig. 1. Classification of the analyzed companies by classes of innovation process transformation (Source: authors).
As a result, three types of innovation process transformation under the influence of digitalization were identified: (1) passive digital transformation; (2) functional and organizational digital transformation; (3) active (significant) digital transformation. (4) A blind zone is singled out separately, which leads to an impossible combination of factors. 1. Passive digital transformation was identified among those companies that use digital technologies to implement individual stages of the innovation process, while maintaining the release of a traditional physical product with little or no use of digital technologies in the product. The traditional stage implementation technology is
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being replaced (supplemented) with digital technology. 3 out of 30 analyzed companies (10%) underwent a passive transformation of the innovation process. During the passive transformation of the innovation process, the following changes were observed: – development of parallel design to a greater extent based on remote technologies (geographically remote design bureaus), digital platforms for open innovation, agile platforms; – advanced implementation of digital production technologies before the end of development; the use of virtual and augmented reality technologies, the Internet of things, artificial intelligence, 5G industrial communication, autonomous logistics devices, blockchain technologies, additive manufacturing technologies, digital and virtual counterparts of products and processes in the innovation process, which makes production more flexible, ensures end-to-end implementation of developments; – integration of equipment, databases and analytical tools, optimization functions of end-to-end processes into a single system; – extensive use of e-commerce and social networks to sell the first products and create demand; – the use of virtual reality technologies and digital doubles to demonstrate the product to the consumer already at the first stages of the innovation cycle and the formation of demand for it already at the R&D stage; – development of automated project management systems, innovation risk management; development of digital skills of the organization’s personnel. In general, this digital transformation is aimed at reducing the costs and time of implementing the innovation process. 2. Functional and structural digital transformation of the innovation process: in addition to passive changes in the process itself, the company’s products are supplemented with a digital component, which causes the need for organizational changes aimed at the systematic development of the digital component of the product offer and its integration with the physical component [9]. 14 enterprises out of the studied 30 (46%) went through a similar transformation, including: – transformation of the R&D and production process: adaptation of existing development cycles to digital products, resolution of the conflict of concepts of digital and physical products; fundamental change in procedures and resources; – development of multifunctional teams focused on digital design and networks of external developers; revision of the suppliers’ work; – a higher share of attracting external partners for the supply of ready-made digital technologies; development of ethical relations with partners on mutual digital responsibility and price neutrality; – the transition from technology platforms focused on efficiency to convergent digital platforms focused on increasing functionality; the development of cloud solutions for storing the software part of the product by the developer.
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Thus, in general, the innovation process is complicated by the integration of physical and digital product development processes. 3. Active digital transformation of the innovation process includes combining a high level of digital transformation of innovation process stages with a high involvement of the company in the process of user operation of the product through digital technologies. About 60% of the analyzed companies, through digitalization, actually “capture” the process of product operation by the client with their own digital solutions. For example, at Boeing Corporation, the value digitalization is aimed at creating the Boeing AnalitX application system, which is focused on implementing an end-to-end digital process of flight planning and execution, maintaining the airworthiness of the aircraft, and analyzing the flight information. Electrolux, Samsung, LG companies develop and support concepts of digital ecosystems and hubs that ensure the interaction of equipment from one manufacturer with each other on the basis of a digital platform. 3M has developed a complete digital copy of the oral anatomy for the dentist’s work, which uses an intelligent forecasting system based on the accumulation of digital data on changes over time and provides patient monitoring and timely planning of ordering materials and technologies to maintain his health.
4 Discussion There is a synergistic effect from the digitalization of technology and products. Among the considered companies, 12 enterprises (40%) belong to this transformation category. Based on the generalization of their experience, the following changes that have occurred in the innovation process can be identified: (1) at the stage of initiating the innovation process and conducting fundamental and exploratory research: – studying changes in consumer behavior in the digital environment, collecting and analyzing information about the best digital practices to create the best solutions; – active use of social networks to find ideas for new developments and directly for developments; (2) at the stage of applied research and development work: – complication of the process; design of not only products, but also technologies for the work of consumers throughout the entire cycle of its operation; – strengthening of an integrated approach to design – simultaneous development of a family of physical products, digital algorithms for their functioning, a single digital shell, its addition during operation with new digital functionality; – transformation of the development team, including digital technology developers, specialists who ensure interaction with users;
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– development of an approach to parallel design: innovative factories are being created that combine platform-based digital agile (open innovations) with the possibility of testing the best samples at pilot production without visiting the company by the developer; – formation and use of digital blocks, platforms, reusable template models, libraries of digital solutions and integration, models for copying; – introduction of open codes and opportunities for integrating applications developed by a third party into the company’s products, other forms of cooperation for the development of digital applications [3], active involvement of users of digitalized products in the development of applications or content; crowdfunding and market development; – complication of the patent stage of converged solutions; (3) at the commercialization stage: – development of the user’s digital logistics system at the product design stage [5], since the sales of the innovative product are carried out at the buyer’s location; – incorporation of the concept of digital responsibility to the consumer and cybersecurity into the innovation process [7]; – embedding strategies for the formation of consumers through the transition from professional training to multi-level mass training in digital technologies, the development of digital culture and digital knowledge. In general, the active transformation of the innovation process leads to its significant complication, a significant change in the organizational forms of the process.
5 Conclusion As a result of the study, it was revealed that in modern conditions, the innovation process at enterprises of the real sector of the economy is really subject to a two-way transformation under the influence of digital technologies. First, there is a digitalization of the design processes, production development, sale, distribution of products. A separate stage of the innovation process is transformed to increase its efficiency with an unchanged physical product. Secondly, deeper changes in the innovation process occur as a result of the integration of digital technologies into the products and services of companies, there is a significant transformation of the product, which further changes the innovation process both from an organizational point of view and from the point of view of the implementation of the main stages. Three classes of the innovative processes transformation under the influence of digital technologies were identified: passive, functional-organizational and active. The first is aimed at reducing the time and simplifying the innovation process, the second is aimed at integrating the physical and digital components of products; the third is aimed at actively changing the consumer process. The second and third types of transformation significantly complicate the innovation process, add new stages to it, make it more complex. The vast majority of the studied companies transform their own innovation processes precisely on the basis of the second and third types, in connection
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with which it is possible to consider the active transformation of innovative processes under the influence of digital technologies as a modern trend.
References 1. Chirumalla, K.: Building digitally-enabled process innovation in the process industries: a dynamic capabilities approach. Technovation 105, 102256 (2021) 2. Dziallas, M., Blind, K.: Innovation indicators throughout the innovation process: an extensive literature analysis. Technovation 80–81, 3–29 (2019) 3. Felin, T., Zenger, T.R.: Closed or open innovation? Problem solving and the governance choice. Res. Policy 43(5), 914–925 (2014) 4. Gupta, G., Bose, I.: Digital transformation in entrepreneurial firms through information exchange with operating environment. Inf. Manag. (2019). https://doi.org/10.1016/j.im.2019. 103243. Accessed 03 May 2021 5. Kamalaldin, A., Sjödin, D., Hullova, D., Parida, V.: Configuring ecosystem strategies for digitally enabled process innovation: a framework for equipment suppliers in the process industries. Technovation 105, 102250 (2021) 6. Liebrecht, C., et al.: Decision support for the implementation of Industry 4.0 methods: toolbox, assessment and implementation sequences for Industry 4.0. J. Manuf. Syst. 58, 412–430 (2021) 7. MITSloan: Digitalization: practical recommendations for transferring business to digital technologies. Alpina Publisher, Moscow (2019) 8. Moazed, D.: Platform: Practical Application of a Revolutionary Business Model. Al’pina Publisher, Moscow (2021) 9. Nambisan, S., Wright, M., Feldman, M.: The digital transformation of innovation and entrepreneurship: progress, challenges and key themes. Res. Policy 48(8), 103773 (2019) 10. Taques, F.H., López, M.G., Basso, L.F., Areal, N.: Indicators used to measure service innovation and manufacturing innovation. J. Innov. Knowl. 6(1), 11–26 (2019) 11. Urinson, Ya.M. Panfilov, K.S.: Digitalization as a factor in the development of innovative strategies. Bus. Soc. Power 2–3(36–37), 117–125 (2020) 12. Vayl, P.: Digital Business Transformation: Changes in the Business Model for a New Generation of Organizations. Publisher Alpina, Moscow (2019)
Comparative Analysis of Project Management Software Products E. V. Nikitina(B) , S. A. Nikitin, and D. A. Elkina State University of Management, Moscow, Russia
Abstract. The paper analyzes the infrastructure of the software products market in the context of the digitalization processes of economic sectors, management, entrepreneurship and society as a whole. One of the aspects of this work is a multisided analysis of several specialized software products that significantly affect specific areas of project management of various scales. The research methodology is based on data analysis using elements of direct study of the list of software products, both by themselves and in the framework of their application, includes a description of functional features and a comparative analysis of digital solutions based on models of their use in an applied format. The purpose of the study is to try to determine which of the software products currently dominate the market of the project approach to management and business management, and which of them are most effective in narrow-profile areas. The results of the study are: the decomposition of software products by types, distribution models and usage profile; specific features of the most popular representatives of the largest group are revealed; the criteria for comparative analysis are defined; a comparative analysis was carried out in each of the identified categories. Keywords: Cascade model · Flexible management · Gantt chart · Management software products · Network planning · Project management
1 Introduction The sphere of digital technologies in the modern business environment is very voluminous and multifaceted. Over the decades of its development, from a highly specialized direction aimed at simplifying interaction with a personal computer, it has turned into a large-scale field for development and widespread of innovations. Thus, digital technologies today are understood as fundamentally diverse areas. Firstly, these are websites, information and social portals on the Internet. Such portals can include news aggregators, online stores, social networks, and other resources. All these are completely different portals with a different system of functioning. And their common properties include only one thing – working through a browser, or through a specialized application (if we are talking about mobile platforms). Secondly, these are structures of online financial transactions and other network interactions. Today, these are conditionally two large areas: digital investment exchanges, payments and money transfer systems. Third, it is © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 339–345, 2022. https://doi.org/10.1007/978-3-030-94873-3_42
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a blockchain. It is worth mentioning here that blockchain covers not only cryptocurrencies, but also many other areas, starting from the formation of artificial intelligence and ending with algorithms for scientific research. And, finally, fourthly, it is software of various directions and systems of functioning [4]. As for digital technologies in the field of project management, it is worth mentioning a variety of software.
2 Methodology Today, it is possible to divide all software products that can somehow function with a useful effect in the project management segment into four basic categories. 1. Directly project software products that work with classical project tools [7]. 2. Software products based on the so-called flexible project approach (on such systems as Agile, Scrum, Kanban, Lean, Kaizen, PRiSM, etc.). 3. Programs for working with connection diagrams (mind-maps). 4. Other software tools that provide a supporting function. Of all these categories, the first one interacts most closely with the project approach. But, before proceeding to the assessment of the most important and significant representatives of the category and their comparative analysis, it is worth determining what is the classical project tools that this category of software products works with [9]. The classical project tools usually include such proven elements as the structure of the project management organization (that is, the command structure of the project management), the structural decomposition of work (or work breakdown structure WBS), the matrix of distribution of administrative management tasks (DAMT), network and calendar planning, the Gantt chart [1]. The computer programs works with these elements or rather with a single complex of most of these elements. It also makes sense to note that many of these programs have their own specific features and some highly specialized areas, and this should be taken into account when choosing a software product for a specific workspace [6]. The entire category of project programs can be divided into three fundamental groups: paid programs, shareware programs, and free programs. Paid products include those solutions that can be used only after a full purchase or after paying a monthly subscription fee for access to the service. The second approach is most often used in cloud access systems [2, 13]. Conditionally free products include such solutions that provide the end user with temporary free access to their own functionality [5]. Most often, such access is limited in time, but sometimes the restriction applies to the general functionality of the product, leaving access only to basic features, with the need to purchase additional functions. Free products are software solutions that are distributed on the principle of freeware.
3 Results Highlighting the most significant project management application programs that are included in the category of distributed on a paid basis for the subsequent evaluation, first
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of all, it is necessary to say about the program developed by Microsoft Corporation [15]. Today there are several versions of this software solution: 1. Microsoft Project Standard is a standalone product with basic functionality. 2. Microsoft Project Professional is an enterprise solution that allows you to share tasks and project resources, and in addition it has the ability to manage project portfolios using Microsoft Project Server. 3. Microsoft Project Web Application—a web interface for making the most basic edits to the project and displaying general reports. 4. Microsoft Project Online is a version that uses cloud capabilities on Microsoft servers, and has all the necessary functionality and allows you to work without installing the original program. Microsoft Project is a versatile and very flexible environment for creating project layouts that you could work with as a result. However, its versatility is both a plus and a minus. On the one hand, this program is a blank sheet that can be customized to meet any specific requirements. For example, you can create your own unique work calendar, reform the remuneration system, etc. On the other hand, this software product is still not able to function adequately with highly specialized projects. However, these shortcomings do not negate the fact that Microsoft Project is one of the leaders in the market of project programs. And it is not without reason, because in addition to flexible settings and a friendly interface that allows the user to work with the program as it is convenient for him, Microsoft Project can fully work with all the main elements of the project tools. This product has a lot of additional settings, both in terms of content and output information, and purely visual. Thus, Microsoft Project is a very flexible tool for working with projects in a variety of areas. The second software product from the category of paid systems that is needed to be evaluated is Oracle Primavera. The Primavera software product has long been one of the central beacons of attention from many companies that practice a project approach in their work activities. In 2008, Primavera Systems was acquired by Oracle. And today Primavera is presented in the Oracle online store along with its own developments [10]. The Primavera software product is a paid program, which, however, has several options that differ in price, depending on the working functionality. Oracle Primavera software is designed to optimize the automation of many primary project tasks. This solution provides both an administrative support system that has the ability to work with risky situations, and flexible functions for interacting with the calendar planning of project tasks [11]. In this software product, the possibility of collective access to project work and shared resources is implemented, taking into account the “piritization” of various participants in the activity. The solution from Oracle has a unique functionality of combining access to the simultaneous administration of several projects, taking into account costs, logistics and current changes in activities. Currently, there are two versions of the product: the Primavera P6 Enterprise Project Portfolio Management (EPPM) web solution and the classic Primavera P6 Professional Project Management (PPM) project interface. If we summarize the comparison, these two are somewhat similar, but still very different
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versions of the same software environment. We can say that the choice of a certain Primavera P6 should depend primarily on the scale of the project, as well as the focus of managers on classical project management or on modern innovative methods. The latest program from the category of paid products is Project Expert—this is a solution with which you can develop, edit and monitor projects primarily of an investment orientation. Project Expert has very high functionality. Just like in other representatives of the project approach, this program has opportunities for building a network schedule, calculating resources, etc. However, first of all, Project Expert specializes in calculating the budget part of the project [8]. The software product is able to calculate and display a report in such areas as budget, estimates, income and expenses, net discounted income, cashflow, etc. The next category is software products distributed under the shareware system. One of the most popular products of the category, with the need to use the desktop version, is a Russian software development called Spider Project. This working environment is popular not only in the Commonwealth of Independent States (CIS), but also in many countries of the world. The full version of the program is paid, but the developers allow you to legally download a demo version from the official website, the only limitation of which is a maximum of 40 tasks for one project. Thus, the demo version of the Spider Project program may be suitable for planning and monitoring small projects. The full-fledged paid version is suitable for the implementation of projects of various scales. Spider Project contains a number of features and functions that allow it to remain an actual choice in the modern market of project software products: large-scale planning algorithms in conditions of limited resources; the ability to work with so-called resource pools, which allows you to quickly and effectively optimize the work schedule; a rich library of information from the technical support of the product; the ability to use formulas and databases. At the moment, Spider Project is most designed for medium and large corporate clients. Currently, GanttPRO and Gantter digital solutions are important players in the market of project software products. Both of these services have in common the fact that they are cloud solutions with web interfaces. Both GanttPRO and Gantter are limited to 30 days of free use, after which both programs offer to purchase a paid subscription which varies depending on the use of it by an individual or a legal entity. Both programs support all the basic functionality of the classical project approach: building a Gantt chart, creating a resource sheet, creating network graphs and work decomposition based on the received data. A special feature of GanttPRO is an adaptive system for tracking and monitoring the implementation of the project [3]. And Gantter has the maximum pairing with Google services, such as Google Drive, Gmail mail service, Google Tables, etc. Both software solutions are designed for small, mediumsized, and large businesses. However, they are most successful in the environment of small businesses, individual entrepreneurship and digital online projects. Among the so-called Freeware software solutions, the following representatives are particularly distinguished: ProjectLibre, GanttProject and LibrePlan. The developers of the ProjectLibre software product have a paid cloud version (called ProjectLibre Cloud), in which you can work using the web interface. But first of all, ProjectLibre itself is interesting as one of the few free representatives of full-fledged classical project
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programs. The advantages of ProjectLibre, in addition to the free distribution of its installation files, include a user-friendly interface, intuitive menus, operations which are divided into 4 main categories: “File”, “Task”, “Resource” and “View”. Each category is responsible exclusively for the elements closely related to its name, so that navigation through the sections of the program is absolutely logical and does not need additional understanding. Purely visually, the ProjectLibre program is very similar to Microsoft Project. In addition, it often has a similar algorithm of actions for project planning and subsequent control [12]. In addition to the standard Gantt chart and resource sheet windows, ProjectLibre is able to automatically create a structural decomposition of project work and a network graph of the vertex-work type based on the entered data. The program also has two additional windows called “Task usage” and “Resource Usage” and show the interaction of tasks and resources with the work schedule on the calendar grid. And a number of auxiliary graphs and histograms can be configured. However, like many other free software products, ProjectLibre has a number of limitations and disadvantages in comparison with the same Microsoft Project. For example, a rather large limitation of project reports, poor interaction with exporting to PDF format when using Cyrillic fonts. We can say that ProjectLibre is a good option for those managers who need a free software solution for project management, and for those companies whose work activities are mainly small projects that do not require strong detailing or flexible program configuration for themselves. GanttProject, in turn, specializes in the development and monitoring of project activities. The main attention of the software product is paid to working with the Gantt chart and the resources functioning in the project: determining the critical path, saving the basic plan, etc. It is worth noting that the program has a number of additional functions. One of them, for example, is the possibility of constructing a PERT diagram which in this product is an alternative to classical network planning [14]. The LibrePlan program has both a desktop version of its product and a web interface that works through a browser. In addition to the standard project management tools, LibrePlan pays a lot of attention to working with resources and finances. In this software solution, it is possible to calculate the load of resources and their use in various types of calendar planning, as well as the distribution of project tasks. The financial part includes the ability to work with the Monte Carlo calculation method.
4 Discussion Conducting a final comparative analysis based on the activity of users of certain software products on the Internet, as well as on the statistics of downloading installation files of the presented products, we can draw the following conclusions: 1. Today, the end user prefers a software product with a low threshold for entering the system and understanding the algorithms of its operation. 2. The most popular are universal design solutions, to which, however, if necessary, you can connect additional functionality working on a modular system, such as Microsoft Project or Project Expert.
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3. The corporate sector, which includes large and medium-sized business players who started using project software products 10–20 years ago, continues to use the same software solutions without looking for alternative options. 4. Small businesses and individual entrepreneurs (especially beginners), in turn, strive for simpler and more understandable solutions, often using popular web interfaces and cloud services such as GanttPRO. 5. Free programs were not and are not a 100% replacement for paid analogues. But they show themselves well as tools in small companies that rely on short-term projects with a small number of participants. 6. The software products of flexible management technologies that have received active development in recent years, which occupy increasing market shares, indicate that many projects implemented mainly in the digital environment prefer the current methodologies, such as Scrum or Kanban, to the classical cascade model of project management.
5 Conclusion Trends in the field of project management software change from year to year. They are most actively affected by the development of the digital segment, as well as economic and social changes. Therefore, it is important to regularly re-evaluate the relevance of certain solutions to optimize project activities in various areas. Such a revaluation may be based on the collection of statistical data on the company’s activities for the reporting period. An alternative option may be expert work with an assessment of causes of necessary organizational changes. Such reasons can be factors of a very different orientation, from development stagnation and deterioration of the market situation, to employee’s dissatisfaction. The main thing is to correctly assess the cause and choose effective optimization methods. The project environment assumes a number of optimization algorithms, an important element of which is the identification of optimal software. In this case, it is important to understand the priorities of using a digital product. This can be both the organization of project work and team communication, as well as control with time management or analysis of results. Taking into account these priorities, it is possible to update the list of software solutions for each specific situation. Some products may have a narrow specific application in one direction, and some cover several at once. Choosing the necessary and sufficient amount of software, as well as the most up-to-date version of each product is an important management decision in any project activity.
References 1. Brikoshina, I.S., Birukov, A.P., Geokchakyan, A.G.: Smart transformation of the project management system and processes as a factor in increasing the efficiency and competitiveness of the project. In: Popkova, E.G., Sergi, B.S. (eds.) ISC 2020. LNNS, vol. 155, pp. 1614–1622. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-59126-7_176 2. Brikoshina, I.S., Geokchakyan, A.G., Mikhalevich, N.V., Nikitin, S.A., Pavlovskiy, P.V.: Analysis of the readiness of coal industry companies to switch to projectoriented management. Ugol’ 10, 28–32 (2020). https://doi.org/10.18796/0041-5790-2020-10-28-32
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3. Khalimon, E.A., Vikhodtseva, E.A., Obradovi´c, V.: Smart cities today and tomorrow – world experience. In: Popkova, E.G., Sergi, B.S. (eds.) ISC 2020. LNNS, vol. 155, pp. 1340–1347. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-59126-7_147 4. Kogotkova, I.Z., Soroko, G.Y., Guseva, M.N.: Smart department: designing digital applications for smart organizations. In: Popkova, E.G., Ostrovskaya, V.N., Bogoviz, A.V. (eds.) Socio-economic Systems: Paradigms for the Future. SSDC, vol. 314, pp. 1483–1493. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-56433-9_154 5. Konstantinov, V., Sakulyeva, T., Makeeva, V.: Development of economic tools for managing regional innovation clusters. J. Entrep. Educ. 22(1) (2019). https://www.abacademies.org/ articles/development-of-economic-tools-for-managing-regional-innovation-clusters-7988. html. Accessed 24 Mar 2021 6. Lyalin, A.M., Zozulya, A.V., Eremina, T.N., Zozulya, P.V.: Current trends in the development of the coal industry, taking into account the impact of the pandemic. Ugol’ 5, 62–65 (2021). https://doi.org/10.18796/0041-5790-2021-5-62-65 7. Makeeva, V.G., Nikitin, S.A., Elkina, D.A.: Digital transformation of the financial services market in Russia. In: Popkova, E.G., Ostrovskaya, V.N., Bogoviz, A.V. (eds.) Socio-economic Systems: Paradigms for the Future. SSDC, vol. 314, pp. 689–699. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-56433-9_73 8. Maltseva, A., Barsukova, N., Klyushnikova, E., Gridchina, A., Kogotkova, I., Brikoshina, I.: How to improve researchers’ communication, collaboration and commercialization of R&D in regions? Interciencia J. 44(4), 44–59 (2019) 9. Malyshkin, N.G., Mikhalevich, N.V., Nikitina, E.V.: System approach in digitalization of management. In: Popkova, E.G., Ostrovskaya, V.N., Bogoviz, A.V. (eds.) Socio-economic Systems: Paradigms for the Future. SSDC, vol. 314, pp. 957–964. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-56433-9_101 10. Monakhov, I., et al.: Assessing the impact of regional scientific environment on the performance of scientific organizations: the example of Russia. Interciencia J. 44(5), 83–96 (2019) 11. Sycheva, S.M., Chernova, T.F., Evdokimova, Y.A.: Project management transformation in the digital economy. In: Popkova, E.G., Ostrovskaya, V.N., Bogoviz, A.V. (eds.) Socio-economic Systems: Paradigms for the Future. SSDC, vol. 314, pp. 269–277. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-56433-9_29 12. Titov, S., Birukov, A., Vichodtseva, E.: Organizational culture and project management in India and Russia in the context of binational projects. TEM J. 9(2), 601–605 (2020) 13. Titov, S., Kurilov, A., Titova, N., Brikoshina, I.: Integrative assessment framework in blended learning. TEM J. 8(3), 768–774 (2019) 14. Titov, S., Nikulchev, E., Brikoshina, I., Suetin, A.: Client communications and quality satisfaction in project-based company. Qual. Manag. 21(174), 68–71 (2020) 15. Zozulya, A.V., Titova, N.V., Ciric, D.: Using the project management methods in digital marketing. In: Popkova, E.G., Ostrovskaya, V.N., Bogoviz, A.V. (eds.) Socio-economic Systems: Paradigms for the Future. SSDC, vol. 314, pp. 1475–1482. Springer, Cham (2021). https:// doi.org/10.1007/978-3-030-56433-9_153
Comprehensive Mathematical Agent-Based Model of Social System for Management Automation Purposes M. V. Samosudov(B) State University of Management, Moscow, Russia
Abstract. The research purpose is to show the possibility of modeling dynamics of a social system and management automation by means of a mathematical agent-based simulation model of a system operating in an active environment. This environment is suitable for creating automating algorithms for management systems of any type and scale of activity. It takes into account the activity of the socio-economic space and subjects, the message flows affecting them, the needs for resources of all kinds, including non-material ones, as well as the subjectivity of the resources value, the interpretation of messages received by subjects from active agents. Actions, social institutions, information flows and other entities are described by one-dimensional and multidimensional matrices, and the dynamics of the system is calculated using differential and integral equations. The model simulates the dynamics of any phenomena and processes observed in the socioeconomic space and in social systems: phase variables allow us to calculate the dynamics of processes, subsystems and the system as a whole, and the principle of agent-based modeling allows scaling the model for tasks of any level. Keywords: Agent-based model · Behavior vector · Comprehensive mathematical model of a social system · Control automation · Digital twin · Resource-functional approach
1 Introduction Management automation involves the calculation of the management effect, that is, the calculation of the object change for the desired change in the result. If the object of management is a company, you need to calculate what and by how much you need to change so that, for example, the incoming cash flow changes. And the task of automation requires the creation of strict mathematical models that allow us to develop computational algorithms. The information system can be used as an “active adviser” to compare the effect of the decision of the management subject and the decision proposed by the computer [3]. Kuznetsov notes that comprehensive tasks involving a change in the state of affairs in the social system as a whole are the most comprehensive management tasks in the socio-economic, political and other spheres [5]. Here, the object of management is the entire problem area, which is considered as a dynamic situation [5]. Moreover, Kuznetsov © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 346–353, 2022. https://doi.org/10.1007/978-3-030-94873-3_43
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notes that some of the factors that determine the result do not depend on the manager, and some of them depend on him only indirectly. As the object of management is not formalized, it is poorly structured, therefore, it is significantly difficult to use information technologies to solve such problems [5]. Traditional models, firstly, require data from previous periods, which limits their capabilities when creating a new company; secondly, they do not take into account the activity of subjects and the content of information in the socio-economic space (SES). This problem was solved back in 1961. Stigler noted that information is a valuable resource. But in the economic theory, information is “huddled in slums”: for the most part, it is ignored [11]. The development of social systems involves the involvement of participants who provide resources. To do this, you need to inform them in order to create subjective assessments of the profitability of exchanging your resources for the resources of the social system. Moreover, it is important to take into account that a resource can be any phenomenon that a person can use to meet needs, as well as the subjectivity of the value of resources. Traditional models do not take this into account. Moreover, to control the information flow affecting potential participants, the method with feedback on the disturbing effect (for example, the impact of competitors) is more suitable. It allows you to reduce losses and additional costs for correcting the movement of the social system. At the same time, its implementation requires formalization and consideration of such an impact at the level of the content of messages broadcast by competitors. In addition, given the task of automation, it is necessary to operate with strict laws suitable for calculating control actions. The data can be recorded in the digital twin of the enterprise (a specialized database for recording the state of the enterprise and the environment at the level of phase variables). And for calculations, you can use simulation models that take into account all the essential parameters of the system, allowing you to calculate the effect of management actions.
2 Methodology The model is based on a resource-functional approach to the analysis of social systems. It was developed when solving the problem of determining the patterns of functional stability of companies [7]. It is not solved by means of statistics. Therefore, the method of mathematical modeling was chosen. The resource-functional approach is a synthesis of the company’s resource concept [4, 6], the theory of functional systems [1] and the theory of active systems [2]. This allowed us to consider the social system as part of the SES, an area of functional concentration of resources. It is formed as a result of structuring the activity of SES participants by managing outgoing message flows and resources. The presence of a link between the resource base of the system and the subjects’ actions predetermined the development of the concept of the behavior vector (BV) as a value that allows taking into account the behavior of subjects in calculations. The concept of BV is based on works in the field of neurophysiology [10]. But works in the field of sociology, psychology, human ethology, biological cybernetics, etc. are also taken into account [7]. Further research on the problem of ensuring the stability of companies allowed us to form a number of theories describing in a strict form the dynamics laws of the social system in the SES and to form a comprehensive mathematical model of a social system functioning in an active environment.
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3 Results An agent-based model is used to model a social system functioning in an active environment. Such models allow you to scale them for any task by changing the number of agents and formalizing the interaction rules. The comprehensive model consists of several particular models: “Corporate person”, which describes the behavior of a person in a corporate system, which is a special case of a social system with a corporate coefficient of more than zero [7]; “Interaction of subjects”, which simulates the process of interaction of subjects in a social system [7]; “The emergence of an incoming resource flow”, reflecting the impact of an active subject on the environment and the emergence of an incoming resource flow at the SES point [8]; “Evolution of the corporate system”, reflecting the process of changing (evolution) of the system in the SES due to changes in the composition of the system, incoming resource flows and messages [7]. The main elements used in the model are divided into the following groups: meta – level entities; entities that do not depend on a point in space, which do not change in the subjective subspace – invariants; entities that do not depend on the point of the SES (on subjects), but which can be created or destroyed by subjects using their available resources-conditionally invariant; entities that depend on the point of the SES, which change in the subjective subspace. Some additional or service entities are also used, which are necessary for linking the main entities of the model. Entities of the meta-level: SES , formed by a set of subjects with phenomena suitable for exchange (resources), having the ability to exchange messages and resources; subject (economic agent) – an element of a set of participants in SES Q, a point of SES, as well as a subjective subspace in which resources acquire value, and messages acquire content and meaning; social system (R(Q), t) – an area of functional concentration of resources and structured activity of subjects. Invariants are, firstly, a set of objects transferred from one participant to another that have value for at least one SES subject due to the fact that it has information about how to use these objects to perform actions (a subset of the transferred resources of the set of resources R). Secondly, these are messages – a set of primary information elements (symbols, images, sounds, etc.), with the help of which the subject transmitting the message through the transmission channels existing in the SES encodes the transmitted (transmitted) meaning. Thirdly, these are natural channels for transmitting messages and resources (atmosphere, surfaces, etc.). Message transmission channels structure the SES, create the possibility of interaction and, as a result, are of great importance for the development of processes in the SES and are described by the following parameters: n the set of subjects receiving messages via the nth channel Qfull information (directivity of the information transmission channel), the transfer function δn , which determines the distortion of messages transmitted through the channel, as well as noise. Resource n transfer channels are described by the set of participants receiving resources Qfull resources , as well as the time of transfer (delivery). And, of course, there are conditions for using the channel – the types of acceptable or unacceptable messages or resources, the number and type of resources that need to be given in exchange for the possibility of using the channel.
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Conditionally invariant objects are artificial channels for transmitting messages and resources used for the interaction of subjects in the SES. Natural transmission channels do not depend on the subjects, but are of limited importance for the task under consideration. Artificially created channels (Internet, mass media, means of delivery and sale points of goods, etc.) play an essential role for structuring the interaction of subjects in SES. They are the property of certain subjects or groups of subjects, they can be created and destroyed by them, but they only partially depend on the participants, therefore they are positioned as entities of an intermediate level between invariants and on perception dependent elements. The value of the resource, the content and meaning of messages, and the institutional environment of interaction depend on the point of the SES (subjective subspace). The value of a resource is a subjective assessment of the amount of another resource that the subject is ready to give for the object offered to him, considered by him as a resource for performing any actions. The meaning of the message is a change in the BV of the subject receiving the message; and the content is a set of signals contained in it. For the calculation of interaction, the change in subjective assessments of incentives and restrictions is important. Therefore, any messages are considered as a set of signals that affect the subjective assessments of stimuli and restrictions. The institutional environment of subjects is a set of social institutions that determines the rules of interaction. Social institution is information about actions and consequences of actions that a person will receive by observing the behavior of other participants, or from documents [7]. The institutional environment H of a social system is a set of k elementary social institutions of this system: H = k hk . Similarly, for the institutional environment of the SES H . In a simplified form, the institutional environment is defined Bj (Oj ) , as the averaging of the BV of the participants of the system or SES: H = QQ B O Q j ( j ) H = . For a more accurate definition, it is necessary to take into account the Q weight of participants, the weight of the system in the SES, the BV of social systems, the intensity of interaction of subjects with systems and among themselves. The elementary institute hk is determined by a tuple [7]: hk = ok s1k , . . . , snk p s1k , . . . p snk l1k , . . . , lmk p l1k , . . . p lmk , where ok is the kth conditioned action; snk are stimuli for the action ok , (resources of the n-type obtained when performing the action); lmk are restrictions the kth action (lost for when performing the action resources of the m-type); p snk , p lmk – the probability of obtaining resources of the n-type and losing resources of the m-type when performing the action. The institutional environment is formalized by a matrix of dimension k × [2 (n + m) + 1], where k is the type of conditioned action, and n and m are types of incentive and restriction, respectively. Additional entities of the model are the impulse of the subject’s activity; the action of the subject; the vector of the subject’s behavior. Social systems are active systems [7], and activity accounting is a specific feature of the model. Activity depends on the satisfaction of the subject with his situation, the benefits that it gives. If the expected benefits gexp.j are no less than the desired benefits gdes.j , the activity pulse is zero; if the desired benefits
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g (t) . Due are less than the expected benefits, it is greater than zero: aj (t) = ϕ 1 − gexp.j des.j (t) to the concreteness of benefits, activity has a direction, determines the choice of actions that minimize the dissatisfaction of the subject with the situation. The desired benefits depend on the needs and the information received by the subject. The impulse of activity leads to the use by the subject of part of its resources to change its situation – there is a resource activity implemented through actions, which leads to the transformation of ˆ k and resources Rˆ k coming the resource base and the emergence of message flows M j j from the participant (from the jth point of the SES), directed to k subjects from the sets of participants receiving messages and resources Qfullinformation and Qfullresources through the selected transmission channels. The action ok is the act of transforming the resource base Rj controlled by the , where Rinitial and subject and is formalized by the dependency: Rresult are the initial and result sets of resources. In general, the initial set of resources is determined by a one-dimensional matrix 1 × n, where n is the type of resource used to perform the action; and the resulting set is a two-dimensional matrix j × m, where j is the number of the participant receiving the resource, and m is the type of ok resource that the participant receives: (rn ) → rjm . Behavior is a characteristic of a person that shows the probability of certain conditioned actions being performed by him. The BV of the jth subject in the basis of conditioned actions Oj known to this subject, this is a value by which the behavior is taken into account in the model, a matrix of dimension 1 × k, each memberof which of the determines the probability subject performing a conditioned action: Bj Oj = p(o1 ), . . . , p(ok ) , ok ∈ Oj . When calculating the probability of an action, the resources available to a person, the positioned incentives and restrictions, as well as the person’s needs for resources and a subjective assessment of the probability of obtaining or losing resources as a result of the action are taken into account [7, 9]. The BV depends on the information Iˇj (t) received by the jth subject from the active subjects of the SES, and is defined as follows [9]: Bj (t) =
t texp. exp. 1 k ˇ ˇ Bj (t0 )+ ∫ divBj Ij (t) dt, · · · , ∫ divBj Ij (t) dt , where texp. is the exposure time t0 t0 (the time during which a person was exposed to the information flow); divBjk Iˇj (t) is the divergence of the BV according to the kth conditioned action due to the influence of the received information. Let’s consider the logic of the model. The key object of modeling is a person, an economic agent, or a SES point. This is an active element of the SES, disposing of controlled resources, influencing other participants through the transmission of messages and resources. The resources available in the SES are distributed among the subjects. The transfer of resources is ensured by performing actions. Part of the resources can be transferred physically or by transferring the right to dispose of them (for example, money, objects, etc.), and another part – by using them to perform actions in favor of another participant or a social system (intellectual resource, physical strength of a person, social ties, etc.). As a result of the action, in addition to the transformation of the resource base, k k there are flows of resources Rj and messages M j coming from the subjects, which are distributed through the transmission channels selected by them that exist in the SES. This
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leads to a redistribution of resources in the SES (the emergence of incoming resource flows to points in space), a change in the activity of participants. ˇ k , k = 1, .Qtrans.inf . from a variety of subjects that A person receives messages M j transmit them. These participants are determined by the channels of information transmission that the jth subject chooses to receive information in a certain life situation. The set of messages received by the jth participant at time t is equal to the sum of the messages of the participants transmitting messages through the channels selected ˇ j (t) = Qtrans.inf . (t) M k (t). From the messages, a person receives informaby them: M j k=1 tion Iˇj (t) that affects his behavior – information about incentives, restrictions and the probability of obtaining or losing resources as a result of performing an action. But information arises precisely in the subjective subspace by isolating signals {in } from a set ˇ j (t), and their interpretation: ofprimary information elements contained in messages M ˇ j (t), Bj (t) . Moreover, a person’s ˇ j (t), Bj (t) = ϕ {in (t)}, Bj (t) , {in (t)} = ψ M Iˇj M BV changes as he receives information due to the divergence caused by previously received messages. That is, the perception of each subsequent signal received in the process of interpreting messages occurs already on the basis of the changed behavior of the subject. Information received by the person from the institutional environment IˇjH , is a function of the institutional environment of the social system H , the institutional environment SES H , and the number of contacts νcont. with participants [9]: IˇjH (t) = ϕ(H (t), H (t), νcont. ). Due to the mutual influence of actors in the SES, there are message flows and resources that form the functional area of resources concentration and structured activity – a social system. The development is determined by an increase in the number of agents. To calculate the control of the social system movement in the phase space to the target state, it is necessary to calculate the necessary changes in the phase variables of the social system, taking into account the phase variables of the SES.
4 Discussion The developed model is universal: it allows you to describe the dynamics of any social system, of any size, organizational and legal form and type of activity. The model uses the phase variables of the social system, connects them with certain dependencies with the result of functioning – the incoming resource flow that occurs as a reaction of the SES to the presence of the system and determines the change in the state of the system, which allows us to calculate its dynamics in the SES. This enables to use the model to calculate the control actions in the process of managing the social system. And the use of strict dependencies and developed methods for quantifying all the elements of the model allows us to implement computational algorithms that can be the basis of information systems for managing automation. The key features of the model are the following aspects: 1. The activity of participants is taken into account by determining the momentum of activity and the probability of performing actions that implement resource activity and form outgoing flows of resources and messages.
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2. The information impact on the participants is taken into account, including the subjectivity of the content and meaning of the transmitted messages between the participants, as well as noise and distortion of messages in the information transmission channels. 3. The subjective value of phenomena (resources) is taken into account. 4. The impact of formal and informal rules, stereotypes and other forms of social institutions on a person is taken into account. When calculating the probability committing actions by a person, the conditions in which a person is located (location, social environment, tasks facing him, etc.), available resources, needs, etc. are taken into account.
5 Conclusion The model uses the phase variables of the social system, which make it possible to accurately record its state and trajectory of movement in the phase space. As a result, it becomes possible to calculate the changes in phase variables necessary for the correction of the phase trajectory. This allows you to implement computational algorithms for managing automation. To specify the model for use in the company, it is necessary to equip it with initial data: a list of resources used in the activity (determined when describing the company’s processes, resource elaboration of individual actions); the list of subjects of interest to the company, their parameters (available resources, expected benefits, etc.); the behavior of subjects in the field of choosing channels for obtaining information in various life situations, as well as in the field of interpreting messages and evaluating the significance of resources; the alphabet for forming transmitted messages (a set of primary information elements used to encode meaning). The developed mathematical apparatus allows you to detail calculations to the level of individual people. To simplify it, you can describe and take into account the behavior of groups of participants in the calculations. Since the model connects the phase variables with certain dependencies with the result of the social system functioning in the SES – the incoming resource flow, it can be used to create algorithms for calculating control actions, automated control systems for social systems.
References 1. Anokhin, P.K.: Fundamental questions of the general theory of functional systems. Principles of the system organization of functions. Nauka, Moscow(1973) 2. Burkov, V.N., Zalozhnev, A.Yu., Novikov, D.A.: Computational complexity of active systems management problems. In: Proceedings of the International Conference “RASO 2001”, pp. 81–102. IPU RAS, Moscow (2001) 3. Burkov, V.N., Burkova, I.V.: Smart mechanisms and the digital economy. Mathematical modeling and information technologies in engineering and business applications. Voronezh State University, Voronezh (2018) 4. Grant, R.M.: Resource theory of competitive advantages: practical conclusions for strategy formulation. Bull. St. Petersburg Univ. Manag. Ser. 3, 47–75 (2003)
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5. Kuznetsov, O.P.: Cognitive modeling of weakly structured situations (2021). http://masters. donntu.org/2010/fknt/andriichenko/library/article4.htm. Accessed 10 Apr 2021 6. Penrose, E.T.: The Theory of the Growth of the Firm, 3rd edn. Oxford University Press, Oxford (1995) 7. Samosudov, M.V.: The theory of corporate interaction and the stability of corporate systems. GUU, Moscow (2016). http://iom.guu.ru/wp-content/uploads/sites/6/2019/05/ 2_%D0%9A%D0%BE%D1%80%D0%BF-%D0%B2%D0%B7%D0%B0%D0%B8%D0% BC%D0%BE%D0%B4%D0%B5%D0%B9%D1%81%D1%82%D0%B2%D0%B8%D0% B5_%D0%A3%D1%87%D0%9F%D0%BE%D1%81_2016-10-15.pdf 8. Samosudov, M.V.: The model of the incoming resource flow of the social system for digitalization of management. J. Adv. Res. Dyn. Control Syst. 11(08), 2892–2900 (2019) 9. Samosudov, M.V.: Formalization of impact of information on the human behaviour for automatization of calculation of the marketing influence. Int. J. Eng. Res. Technol. 13(12), 4849–4854 (2020) 10. Simonov, P.V.: Neurobiology of individuality. Nature 3, 81–89 (1997) 11. Stigler, G.J.: Economic theory of information. Milestones Econ. Thought 2, 507–529 (2000)
Total Digitalization: Problematic Contours of the Future E. S. Karsanova1(B) and O. S. Volgin2 1 State University of Management, Moscow, Russia 2 Moscow State Institute of International Relations, Moscow, Russia
Abstract. Should we be threatened by the opportunity to live in a totally digitalized society operated by AI? That is a key question of this contribution. The authors give a negative answer. They put forward the thesis that there is a crucial difference between totality and totalitarianism. They argue that digital revolution turns to be a total process, but not mechanically totalitarian. The notion “total” means “holistic” or “unparted”. To make a world total is an immanent need of human being, because totality is a characteristic of harmony. It brings no harm for man and society. But totalitarianism means defective totality that is not harmonious, because it is damaged by lawlessness, subjective violence and despotism. The authors emphasize that the threat of totalitarianism comes from the human will, and not from the work of artificial intelligence, which will remain a tool of people, despite its fantastic technical sophistication. Keywords: AI · Digitalized society · Harmony · Totality · Totalitarianism
1 Introduction The growing digitalization forces us to think about the strategy that we should choose in order to get what we want in the future. This is a period of strategic decisions, when strategies are immeasurably more valuable than tactical decisions. At the same time, the issue of strategy becomes particularly important due to the fact that we do not have an exact knowledge of where the digitalization may lead the contemporary society to. One thing is clear, we are entering a qualitatively new development period, determined by factors that had no analogues in the past. The essence of digitalization, which is a key factor in these modern innovations, can be expressed briefly: to reduce to the possible minimum, ideally to zero, any spatio-temporal obstacles to communication. This means that every person can, in principle, count on becoming a full member, participant and producer of the universal information field. By the universal information field, we mean the same Popper’s “third world”, reproduced by people themselves and combining a set of ideas, theories, opinions and information related to any human activity that can only be described.
© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 354–359, 2022. https://doi.org/10.1007/978-3-030-94873-3_44
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2 Methodology Information has always been the determining factor of governance, but it has never been an immediate public good until today: it has been a good for some people, but not for everybody. Today we are building an information system that promises to become total, that is, integral and all-encompassing. In other words, we are creating a global information machine. And here, we are faced with a fundamental problem that is fully comprehended only at the level of the relationship between man and machine, in other words, at the philosophical level. The problem of man and machine has been raised more than once in the modern philosophy of the XX century. The greatest philosophers of the last century, scientists, popularizers of science, science fiction writers wrote about it: Heidegger [5], Ortega y Gasset [11], Jaspers [7], Wiener [11], Lem [8], Pearl [12], Wilczek [18], etc. Berdyaev saw the danger of technology in the fact that, firstly, it becomes the “last love” of a modern person, and secondly, that it is the embodiment of an organization, and an organization, unlike an organism, is infertile, it is by its nature not capable of giving birth to new things, only an organism gives birth [2]. And Heidegger generally made the paradoxical statement that “science does not think” [6]. How, then, can its product – digital artificial intelligence – think? In the last few years, people have been increasingly talking about the danger of the intervention of digital technology and technologies in general in all spheres of human life. A new wave of alarmism has risen, similar to the one that appeared in the late 1960s in relation to the public awareness of the growth limits, thanks to the work of the Club of Rome. But only the new wave seems more threatening and frightening, since the question is no longer about the natural limits of the development of human society, but about the replacement of man himself in the production system, which means that man is “outside the brackets” of that natural working life for him, which throughout the entire anthropological evolution made him a man. People are afraid of such a situation when the master and the servant will change places: machines intended to be servants of people will become their masters. The loss of a person’s production subjectivity will inevitably deprive him of creative subjectivity. Alarmist consciousness is presented with pictures of the future, similar to the one described by Wells in his “Time Machine”: people will become like eloi, beautiful, gentle and pure descendants of modern people, deprived of any energy of survival and serving as living food for the terrible morlocks, the degraded descendants of the proletarians [16]. Only the place of the Morlocks will be taken by machines connected to a network by a common artificial intelligence (AI), and people will become “cogs of the system” [9] like what we see in the science fiction films “The Matrix” or “Terminator”. If we put aside such fears and ask a reasonable question, what are the limits of the intervention of digital technologies in various spheres of human life, then we must admit that there is only one such limit – the inability to replace a person’s consciousness itself, his personal “I”, everything else, including any organs of the human body and receptors for perception of reality, is fundamentally technically possible to replace. However, without going into such an immense distance of the future, where we can no longer consider anything, we can say with confidence that any developing system does not develop by itself, its development is a product of human thought. And a person’s
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thought is by its nature total [14, 15]. And everything that is born of thought tends to totality, including technical means as a system. As an example of systemic totality, we can cite a new phenomenon, the introduction of which is already on the threshold. This refers to the system of “digital money”.
3 Results “Digital money” is the third kind of money along with physical money and non-cash payment. There is no doubt that this innovation will be of fundamental importance for society and, first of all, for its economic development, although the consequences that we can already see today seem to be a small part of what will potentially result from this innovation. “Digital money” is not just “virtual money” that we use to pay with our debit and credit cards, it is special “virtual” money: each digital ruble will have its own unique code. Thanks to this, “digital money” will allow us to put control over the money supply to a qualitatively new level, to make it essentially total. There are two reasons for this effect. First, the issuer of “digital money” will be only the Central Bank, which will be able to control their mass with an accuracy of one ruble, which will significantly increase its power over the inflationary process. Secondly, and this is the main thing, “digital money” will be “labeled” money, which will make the state’s control over cash flows absolutely transparent to the state control bodies. Theoretically, this will make the existence of a “gray economy” impossible due to absolute control over all transactions of both legal entities and individuals. For the first time in the history of monetary circulation, any operations with money, if desired, will be visible to the state at a glance. This means the establishment of total control over any economic activity of any legal entity or individual: where, when, to what extent and with what consequences this activity would be carried out. Theoretically, restrictions on the power of the state, such as the concept of “bank secrecy”, the right to inviolability of private life, personal and family secrets, may disappear. But there will be new positive and promising opportunities for strengthening democracy, in particular, for another economic innovation – an open budget, which will make tax practice more effective and deprive both business and the authorities of loopholes to carry out illegal, shady transactions. We are facing a truly revolutionary transformation in the sphere of monetary circulation, a vivid example of the total coverage of the information and digital management system of all spheres of the economy, the full scale of the consequences of which we cannot foresee. Of course, total digital control frightens people, because the power of artificial intelligence leaves no chance for anyone to leave the field of view. A fundamental question arises: does total control mean a restriction of human freedom? Until now, people have seen the condition of their freedom in the ability to hide from the eyes of the controlling authorities, to be in a space beyond anyone’s control. You can fantasize about chips embedded in people’s brains and connected remotely to artificial quantum intelligence, you can spend money on manipulating people’s minds through the media, etc., but the most effective and least expensive condition for managing people is to know everything about them by controlling their economic activities.
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4 Discussion At the same time, total control in itself is not evil. Any system is potentially total, that is, it is something that strives to be a whole, and such a whole that did not arise externally from a random combination of elements, but initially internally strives to be a whole, to develop as a whole, that is, holistically. The idea of totality was first expressed by the ancient philosophers of the Elean school. They taught that being is total, since it is a whole that has no parts. It was not an allegory, but a statement of the real quality of the objective world, a conceptual expression of the world harmony. Not only nature is total, but every living being is total. The artificial world created by man is also total. The socioeconomic formation is total, the scientific and technical revolution is total, ultimately thought and its generation – culture is total [18]. The popular concept of “cognitive dissonance” in modern postmodernism suggests that we are given by nature the ability to distinguish harmony and disharmony, a kind of positive hearing for harmony as a whole. In this understanding of totality, the information and digital society cannot but be total. But it is necessary to distinguish between “totality” and “totalitarianism”. These words of the same root have different meanings and can confuse us. Totalitarianism is a vicious product of totality. This is a flawed, incomplete totality. True totality is harmonious and symphonic. There is no center and no periphery dependent on it, there is no asymmetry, one-sided subordination without feedback; in it, each part works for the whole. The fifth-century neoplatonist Proclus Diadochus expressed the harmony of the true totality arising from the nature of things as follows: “Everything is in everything, but in everyone – in a special way” [10]. Flawed totalitarianism, on the contrary, is a product of egoistic human arbitrariness. Totalitarianism is not harmonious because a person who has received power wants everything, including other people in whom he does not see his equals, to obey his will, to serve his whim. The more a society acquires the features of totalitarianism, the less it becomes a total, harmonious, unified whole. It begins to decompose internally because it provokes the protest of the majority, to whom totalitarianism denies the right to subjectivity and personal dignity. It was “an indestructible grain of self-respect that helped them (people) to remain beings walking on two legs” [13, p. 387]. The problem of the correlation of totality and totalitarianism, therefore, is not a technical problem, but a moral one. This is not a problem of a technical strategy, but of a moral development strategy. Technical means, including Artificial Intelligence, are a necessary condition for humanitarian development, but not sufficient. Artificial Intelligence, like any technical means, is externally teleological, it cannot go beyond the goals set by the mind. Ultimately, its goal is limited to providing society with well-structured and as complete information as possible. Monopoly power over information media is becoming less and less possible today because a new paradigm of power is being formed today. Its main feature is dispersion. As Foucault wrote: “Power is omnipresent power, but not because it is all-encompassing, but because it comes from everywhere” [4, p. 361]. The question that worries many researchers in the field of Artificial Intelligence (AI) today is: can it cross a qualitative line in its evolution and become a digital Artificial Intelligence? And if so, can Artificial Intelligence become a totalitarian force? The
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answer to this question lies in the plane of understanding the problem, what intellectual action can be rightfully considered as a solution? It is widely believed that AI can make decisions no worse than a human, supported by the examples of the Deep Blue machine winning chess games with world champions Kasparov in 1997. It seems that this confirms Wiener’s belief in “the possibility of describing human behavior by mathematical equations” [17, p. 30]. However, something prevents us from sharing this belief with Wiener, if, with all the success of cybernetics, “robots are still unable to tie their own shoelaces” [9, p. 25]. Indeed, mathematics and logic are harmonious, as pure reason can be harmonious, but this is harmony without a person. It is no accident that our ear is able to distinguish computer music from live, man-made music. And the thesis about shoelaces is not ironic. It shows the fundamental limitations of digital artificial intelligence. Tying shoelaces is not a digital process, but an integral process that includes both a digital and an analog component. That is, a process, its every act, even the smallest, is precisely infinitesimal, meets the problem of nonlinear free choice. And this means a lot. Digital intelligence knows how to choose too, but it chooses from a finite number of alternatives given to it, so this choice is not free, it does not even have relative freedom. Its “freedom” is set by an algorithm subordinate to the logic of rational choice, and rational choice is not actually a choice but a calculation, and therefore it only simulates freedom. It follows from this that digital Artificial Intelligence will never be able to learn to “tie its shoelaces” and therefore the status of a control subject is not applicable to it. In order to manage the society of those who know how to “tie their shoelaces”, the manager himself needs to learn how to do it. One can, of course, hypostatize that someday in the future people will teach machines to combine digital and analog ways of solving problems. But such a statement is more a matter of faith than a subject of scientific analysis of the rational choice nature.
5 Conclusion In order to raise the question of the boundaries of rational choice, about what it can and what it cannot, it is necessary to distinguish between types of rationality: digital machine rationality and human rationality. Machine rationality is limited by the dualism of zero and one, “yes” and “no”, “truth” and “false”. Human rationality is the product of a more complex design of choice, it is threefold, in addition to “yes” and “no”, “truth” and “false”, it includes a third component – “value” [3]. In a human choice, a “lie” can become valuable and get approval (“yes”), and the truth, on the contrary, in the value system, can be rejected by a person and get a verdict of “no”. As a result, a person becomes a fundamentally elusive object in the digital control system. All values, being cultural phenomena, are conditional, with the exception of one – a sense of duty. The three laws of Asimov’s robotics are not moral maxims of the electronic mind, but logically looped contours of problem solving [1]. As for truly moral decisions based on the principles of dignity and duty, they cannot be subordinated to logical algorithms.
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References 1. Asimov, I.: Runaround (2021). https://web.williams.edu/Mathematics/sjmiller/public_html/ 105Sp10/handouts/Runaround.html. Accessed 17 Apr 2021 2. Berdyaev, N.: Man and machine. Way 38, 3–37 (1933) 3. Church, G.: The Rights of Machines. Penguin Random House, New York (2019) 4. Cohen, J., Arato, A.: Civil Society and Political Theory. MIT Press, Cambridge (1992) 5. Heidegger, M.: Die Frage nach der Technik. Die Kuenste im technischen Zeitalter, Muenchen (1954) 6. Heidegger, M.: Discourse of Thinking. Conversation on a Country Path About Thinking. Harper & Row Publishers, New York (1959) 7. Jaspers, K.: Modern Technics. New Technological Wave in the West. Progress, Moscow (1978) 8. Lem, S.: Summa Technology. Publishing House AST, Moscow (2004) 9. Lloyd, S.: Wrong But More Relevant Than Ever. Penguin Random House, New York (2019) 10. Mesyats, S.V.: Proclus (2021). https://bigenc.ru/philosophy/text/3179687. Accessed 17 Apr 2021 11. Ortega y Gasset, J.: Reflections on technology. Questions Philos. 3, 32–68 (1993) 12. Pearl, J.: The Limitation of Opaque Learning Machines. Penguin Random House, New York (2019) 13. Rand, A.: Capitalism: The Unknown Ideal. Centennial Edition, New York (1986) 14. Russel, S.: The Purpose Put Into the Machine. Penguin Random House, New York (2019) 15. Tegmark, M.: Let’s Aspire to More Than Making Ourselves Obsolete. Penguin Random House, New York (2019) 16. Wells, H.: The time machine (2021). http://brooklyncollegegeology.com/ged/books/timeme achine.pdf. Accessed 17 Apr 2021 17. Wiener, N.: The Human Use of Human Beings: Cybernetics and Society. Houghton Miffin, Boston (1950) 18. Wilczek, F.: The Unity of Intelligence. Penguin Random House, New York (2019)
Information Technologies in Shaping the Population’s Commitment to Vaccination Against Covid-19 V. M. Cherepov, O. V. Sobolevskaya(B) , and I. V. Petrunina State University of Management, Moscow, Russian Federation
Abstract. The aim of this work is to study the opinion of the target audience (young people) on the methods of conducting an information campaign aimed at forming a commitment to vaccination against a new coronavirus infection (COVID-19) and the degree of their influence. The main research method is a qualitative method: conducting an in-depth interview with university students, as a social group that most often uses information systems and technologies, including the Internet space, to search for the necessary information that is influenced by users of Internet resources, and in which the percentage of vaccine skeptics is high. The results of the study give an idea of the advantages and disadvantages of the information technologies used in the information campaign to form the opinion of the population about the need and importance of vaccination against COVID-19. Keywords: Information campaign · Information technologies · New coronavirus infection (COVID-19) · Vaccination
1 Introduction It is impossible to imagine the communications of modern society without the use of various information technologies. Informatization of society is a global social process that covers all spheres of life, the essence of which is to use information through its collection, processing, systematization, storage and transmission using information technologies that are available to the population [3]. The healthcare industry also actively uses various information technologies that have a positive impact on the organization of medical care to the population. The most popular in medicine are various information systems used both at the level of a medical organization, and at the level of a regional system or industry as a whole. These information systems allow using information technologies to organize document flow at various levels and with different types of automatic interpretation of data when transmitting the necessary information, to carry out telemedicine consulting, to use remote methods of monitoring the condition of patients, to use artificial intelligence mechanisms in identifying physiological abnormalities when using laboratory and diagnostic studies of patients, and much more [7]. All the information technologies described © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 360–367, 2022. https://doi.org/10.1007/978-3-030-94873-3_45
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above are related to their application directly in a medical organization. However, with the increasing role of information management in various spheres of society, we can state the development and strengthening of the role of various information technologies (IT) as a mechanism for managing the industry, including the organization of various information campaigns using IT. In healthcare, an industry that provides public health protection, that is, the organization of prevention, diagnosis, treatment and rehabilitation of patients, the understanding of the importance of using information technologies when conducting various information campaigns among the population in the most significant areas of the system of public health protection is of particular importance. To date, it is possible to distinguish several areas of the organization of medical care, which are covered by information support, including the use of information technologies [1, 6]. These include: – conducting medical examinations of the adult population; – diagnosis of socially significant diseases (most often in relation to the diagnosis of HIV infection); – blood donation; – vaccination (in terms of flu prevention). All of the above areas are characterized by active information support, that is, conducting various information campaigns using methods of both face-to-face communication through the organization of mass actions, distribution of information materials using information stands, posters, leaflets, banners in public places, coverage of these topics on television and in the media, and information technologies through the placement of relevant information in the Internet space. Strengthening the role of information technologies in the healthcare system for the purpose of information and communication impact on patients is becoming particularly relevant at the present time, firstly, due to the mass use of information technologies by both patients and health care organizers, and secondly, due to the emergence of new challenges to the healthcare system, the key of which at the moment is the pandemic of a new coronavirus infection (COVID-19), announced by the World Health Organization (WHO) in March 2020 [10]. The ongoing information campaigns (on the need to introduce quarantine measures, observe social distance and use personal protective equipment), including the use of information technologies in the Internet space, have had a positive impact on preventing the spread of a new coronavirus infection (COVID-19) [4]. In general, during the year of activity during the COVID-19 pandemic, the domestic healthcare system, with the help of maximum resource mobilization, the use of sufficiently flexible management mechanisms, was able to resist the serious challenges associated with the spread of a new coronavirus infection. The most urgent today is no longer the transformation of the industry for the organization of medical care for patients with a suspected or confirmed diagnosis of a new coronavirus infection (COVID-19), but further countering the spread of a new coronavirus infection, including the formation of collective immunity, primarily through the mass vaccination [2, 8].
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In order to ensure the success of the mass vaccination campaign against COVID19, the experience gained during the information campaigns of organizing seasonal vaccination of the population against influenza is actively used, since this particular vaccination campaign can be considered the largest before the appearance of vaccines against COVID-19 [5, 9]. During its implementation, among the mechanisms of information impact, such methods as advertising on television, contextual advertising in the Internet space, open advertising in public places, especially in medical organizations and institutions providing social services to the population, etc., were most often used. A completely new way to ensure the broad involvement of the population in influenza vaccination was the organization of mobile vaccination points in public places where vaccination was carried out. Taking into account the high social importance of immunization of the population in preventing the spread of coronavirus infection, the information campaign of vaccination against COVID-19 is becoming more widespread. Much attention is paid to the formation of a trusting attitude to the quality, safety and effectiveness of domestic vaccines. In addition to the methods used for vaccination against influenza, members of the medical and scientific communities, representatives of the fields of art, education, and politics are involved in the information campaign to form a positive attitude to vaccination against COVID-19. Information technologies allow integrating information in various Internet resources [11]. Active propaganda work is being carried out, both in medical organizations and at many enterprises and in public places (for example, voice messages about the need for vaccination against COVID-19 have become popular in the metro).
2 Methodology A sociological study was conducted using the expert interview method (qualitative research). The respondents of the interview were students of a higher educational institution (university) aged 19 to 22 years, studying in the educational programs of management in healthcare and management in the sports industry. The target audience for the study was selected from students who study, among other things, the use of marketing tools in relevant areas of society related to both the organization of medical care for citizens and the holding of mass sports events, including those aimed at forming an active position of citizens to maintain a healthy lifestyle. 100 students took part in the interview, both in person and via videoconference. The interview guide included more than 10 questions concerning the mechanisms influencing the formation of the population’s attitude to vaccination against the new coronavirus infection (COVID-19), including the influence degree of Internet technologies on citizens’ commitment to vaccination.
3 Results According to a FOM survey, more than 60% of Russians use various Internet resources [4]. Due to their increasing influence on society and high accessibility for the population, the use of information technologies is becoming a powerful resource for forming adherence to vaccination, including against a new coronavirus infection. In the research part of the work, the respondents’ opinion on the attitude and commitment to various
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ways of conducting an information campaign to attract the population to vaccination against COVID-19 was studied. In general, the interviews confirm the assumption that, firstly, the information campaign aimed at forming the opinion of the population about the need for vaccination against a new coronavirus infection (COVID-19) has become the largest in the modern history of the Russian healthcare system, and secondly, the most preferred ways for respondents to be informed about the vaccination against COVID-19 include information technologies and Internet resources. More than 90% of respondents confirmed that they had repeatedly encountered information in everyday life about the need or involvement in vaccination against a new coronavirus infection (COVID-19). The source of this information is most often advertising on television and information in the Internet space (the answers implied such sources as websites, advertising posts in search queries, etc.) and face-to-face advertising (leaflets, posters, banners on the streets and in public places). At the same time, advertising on television, as a source of information about the need or involvement in vaccination against COVID-19, was the most mentioned method of informing (it was found in 75% of respondents’ responses). When asked who or whose opinion could maximally influence the decision to get vaccinated against COVID-19, the respondents’ opinion was not unambiguous. The opinions of the professional medical community and the opinions of independent foreign organizations engaged in the scientific assessment of the quality, safety and effectiveness of vaccines were equally leading, the opinions of representatives of public organizations, as well as political figures are less popular answers. At the same time, almost all respondents noted that a change in the epidemiological situation, that is, its improvement due to vaccination of the population, as well as the opinion of the close environment (family, relatives, close acquaintances and friends) could increase confidence in the safety of new vaccines and, as a result, determine the readiness to be vaccinated. At the same time, an additional question about the influence of the opinions of media personalities from representatives of business, art, show business stars, popular bloggers, etc. about vaccination, including the results of its implementation, almost all respondents answered in the negative form. At the same time, it is worth noting once again that the entire group of respondents belongs to young people, among whom, of course, the role of dependence on the opinions of popular bloggers and users of social networks is great. This suggests that, firstly, the topic of vaccination is evaluated quite seriously by young people, and secondly, it indicates that young people understand the need to form a trusting attitude to such a socially important topic as vaccination on the basis of reliable objective information. In questions about trust in the information that is presented in the information space about the need or involvement in vaccination against a new coronavirus infection (COVID-19), as well as about the benefits of vaccination, about possible risks and negative consequences of vaccination, it should be noted that more than 70% of respondents trust the provided information. When discussing the most convenient and attractive method of an information campaign in the Internet space, in terms of attracting vaccination against COVID-19, the majority of respondents noted such methods as placing
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advertising information on sites related to medical, pharmaceutical topics or the healthcare system, as well as on portals providing various public services. At the same time, a small number of respondents noted that they would not like to see any information about involvement in vaccination against COVID-19 in the information space. More than 60% of respondents noted that among the mechanisms of the face-toface information campaign, they consider the most convenient and attractive ways of publishing relevant topics in the mass media, more than 50% of respondents support information and communication messages on television, and more than 20% of students prefer holding public mass actions and using open advertising (distribution of leaflets, banners, posters in public places, etc.). Despite the support for the ideas of holding mass information and communication campaigns (of course, during the period of decreasing morbidity and persistent retention of low indicators characterizing the prevalence of the virus), it should be noted that about 70% of students would not like to take part in organizing or participating in these actions in any way, including as volunteers. Almost 90% of respondents confirm that they pay attention to the presence of negative information about vaccination against the new coronavirus infection (COVID-19), which is most often found in the Internet space. Facts of misinformation in social networks are noted by more than 60% of students, however, the most popular answer was the opinion that views on the use of the vaccine against COVID-19 (including negative ones) are formed thanks to the relevant stories of relatives, friends and colleagues, as well as medical personnel during a face-to-face visit to a medical organization. In the minimal version, the presence of such (negative) information is noted in printed media publications. These facts may indicate both that the official media publications in the editorial version probably do not allow negative information on vaccination issues, and that, unfortunately, medical workers themselves sometimes do not comply with the principles of bioethics and the functions of providing information and educational work among the population. Among the reasons for refusing vaccination, almost 80% of respondents noted an insufficient amount of open official information from the professional medical community about the action mechanisms of the vaccine, possible adverse reactions and the research results on the evidence base of the effectiveness and safety of the used vaccines. The second place among the responses was the lack of positive feedback about the procedure and the results of vaccination against COVID-19, which was noted by almost half of the respondents. The third most popular answer option was the presence of anxiety and vaccinophobia, which, of course, were formed under the influence of negative reviews, including from citizens who underwent the vaccination procedure. In addition, it should be noted that among the respondents, 50% had a new coronavirus infection and 5% noted that they had been vaccinated against COVID-19.
4 Discussion The analysis of scientific articles and publications allows us to note that the study of information technologies, including their interrelation and influence on public relations related to the system of public health protection, primarily concerns the formation of
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motivation for a healthy lifestyle among the population. Therefore, their use in the processes of information support for the formation of citizens’ commitment to vaccination, using the example of COVID-19, is especially relevant during the fight against the pandemic of a new coronavirus infection. The study allows us to assess the influence degree on the population (in this case, young people (the age group of respondents is 19–22 years old)) from the side of information campaigns aimed at forming a commitment to vaccination against the new coronavirus infection COVID-19, as well as effective methods of implementing such campaigns (Internet resources, face-to-face interaction, open advertising, etc.). The results obtained in the course of the study can be used in further studying the impact of information campaigns, including using information technologies, on the formation of the population’s commitment to vaccination in general and the organization of a targeted information and communication campaign.
5 Conclusion The results of the in-depth interview show that, in general, the focus group pays attention to different ways of conducting an information campaign aimed at forming the opinion of the population about the need for vaccination against a new coronavirus infection (COVID-19). At the same time, the most preferred method of influence is the use of Internet resources, including the placement of information on sites related to medical topics. The majority of respondents noted that the study of negative information found in open sources, and primarily in the Internet space, negatively affects the formation of their opinion about the need for vaccination. The main factor in the formation of a negative opinion about vaccination, its safety and effectiveness, according to the respondents, is the lack of consolidated reliable information from the professional scientific and medical community in open sources. It should also be noted that the majority of respondents, being active users of information systems, do not trust information related to vaccination against COVID-19 in the Internet space. The experience gained in the course of the study can, firstly, be applied to correct methods of the relevant information campaign, which is currently being carried out as part of attracting citizens to vaccination against COVID-19, and secondly, extrapolate the obtained results to the formation of further information campaigns related to the organization of vaccination in general. In the first case, according to the results of the study, it is necessary to pay attention to the following key areas of improving the information campaign, including using information technologies, aimed at forming an opinion about the need, effectiveness and benefits of vaccination against COVID-19: – ways of posting information and submitting it should be differentiated for citizens of different age groups; – it is necessary to strengthen the role of the medical and scientific community, independent international/foreign organizations engaged in scientific assessment of the quality, safety and effectiveness of new vaccines, in supporting the information campaign aimed at forming a commitment to vaccination against COVID-19;
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– the inadmissibility of broadcasting a negative opinion about vaccination from individual medical workers or medical organizations. In the second case, the results of the study allow us to determine the main advantages and disadvantages of the currently used mechanisms in the information campaign and use this experience in the future when forming concepts of information influence on the population as one of the effective ways to protect people against the spread of infectious and viral diseases. Key factors that should be taken into account when conducting an information campaign on vaccination: – the age of the target audience that is susceptible to the disease against which vaccination is used; – social status, lifestyle of the target audience, which is susceptible to the disease against which vaccination is used; – availability of vaccination for the population; – the necessity degree for maximum vaccination coverage of the population; – the social significance of the disease against which vaccination is directed; – public opinion on the safety and effectiveness of the used vaccines. Thus, it can be stated that the practice of vaccination is associated with certain processes of implementing an information campaign, while the scale of activities, methods and mechanisms for implementing information support for vaccination depends on many social factors that must be taken into account to ensure the success of information support for vaccination of the population.
References 1. Briko, N.I., Mindlina, A.Ya., Polibin, R.V., Galina, N.P., Gorokhova, A.S., Ushanova, A.V.: Assessment of attitudes towards immunization in different groups of population of the Russian Federation. J. Microbiol. Epidemiol. Immunobiol. 2, 98–103 (2017). https://doi.org/10.36233/ 0372-9311-2017-2-98-103 2. Decree of the Government of the Russian Federation No. 2390-r of 18.09.2020. On approval of the Strategy for the development of immunoprophylaxis of infectious diseases for the period up to 2035 (2020). https://www.garant.ru/products/ipo/prime/doc/74591684/. Accessed 11 Aug 2021 3. Federal Law No. 149-FZ of 27.07.2006. On Information, Information Technologies and Information Protection (2006). http://www.consultant.ru/document/cons_doc_LAW_61798/. Accessed 11 Aug 2021 4. FOM: Information sources: Internet (2021). https://fom.ru/SMI-i-internet/14538. Accessed 11 Aug 2021 5. Kostinov, M.P., Khromova, E.A., Kostinova, A.M.: Could influenza vaccination be a nonspecific prevention of SARS-CoV-2 and other respiratory infections? Infect. Dis. News Opin. Train. 9(3), 36–40 (2020). https://doi.org/10.33029/2305-3496-2020-9-3-36-40 6. Naygovzina, N.B., et al.: Optimization of the system of measures to control and prevent infections associated with the provision of medical care in the Russian Federation. Healthcare management: news, views, education. Bull. VSHOUZ 1, 17–26 (2018)
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7. Order of the Ministry of Health of the Russian Federation No. 911n from 24.12.2018. On Approval of Requirements for state information systems in the field of healthcare of the Subjects of the Russian Federation, medical information systems of medical organizations and information systems of pharmaceutical organizations (2018). https://normativ.kontur.ru/ document?moduleId=1&documentId=338271. Accessed 11 Aug 2021 8. Pshenichnaya, N., Veselova, E.I., Semenova, D.A., Ivanova, S.S., Zhuravlev, A.S.: COVID-19 is a new global threat to humanity. Epidemiol. Infect. Dis. Curr. Items 1, 6–14 (2020) 9. Saperkin, N.V., Kukunova, V.V.: Issues of vaccination prevention and the Internet space. Med. Almanac 2(26), 75–78 (2013) 10. World Health Organization: COVID-19 vaccines. https://www.who.int/ru/emergencies/dis eases/novel-coronavirus-2019/covid-19-vaccines. Accessed 11 Aug 2021 11. Zorin, K.V.: Practice and personal-oriented model of infectious diseases in the context of digitalization of medical education. Infect. Dis. News Opin. Train. 9(2), 115–119 (2020). https://doi.org/10.33029/2305-3496-2020-9-2-115-119
Digital Footprint Analysis Technology: Some Aspects of Its Application in Recruitment O. A. Peshkova(B) Moscow State Automobile and Road Construction Technical University, Moscow, Russia [email protected]
Abstract. In the developing trend of digital transformation, which is accelerating under the influence of the Covid-19 pandemic, digital HR technologies are being developed, the use of which is necessary in the conditions of increasing competition in the fight for the best employees. This study is designed to identify the features and consequences of using the technology of analyzing the digital footprint of a job seeker in the recruitment process. Based on the methods of content analysis, statistical analysis of information, as well as system analysis and synthesis, the author conducted a study of the problem field of contradictions between the interests of employers and job seekers arising as a result of the use of digital footprint determining technology. Attention is paid to the ethical aspects of using the technology of tracking and analyzing the digital footprint in social media and the need to build a transparent recruitment process for job seekers, which will lead to the formation of a digital environment based on a more responsible approach. Keywords: Corporate digital responsibility · COVID-19 · Digital footprint awareness · Digital transformation · Tracking digital footprint · Recruitment
1 Introduction In the era of a pandemic that accelerates the processes of digital business transformation, companies need to have personnel capable of operating in a situation of a high level of complexity, uncertainty and continuous changes. The new ways of remote work that have emerged as a result of the pandemic, with concerns about the global economic downturn, will continue to shape these processes. A necessary condition for maintaining the company’s competitiveness is the involvement of motivated loyal talented employees in organizational transformations in the context of digital transformation in order for them to follow the leaders of organizational changes [5]. The identified trends in the work of the future include the growth of the introduction of digital technologies and a reduction in the supply of labor [20]. According to the study [15], in the future it is expected to increase the duration of an employee’s career to 50 years, while reducing the period of necessary skills renewal to 2–5.5 years. In a situation of increasing competition for talented loyal employees, companies need to transform their personnel processes to level out a number of challenges that arise in the conditions of the new normality. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 368–375, 2022. https://doi.org/10.1007/978-3-030-94873-3_46
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According to the results of surveys on the impact of the pandemic on digital transformation [5] conducted by the IBM Institute for Business Value in collaboration with Oxford Economics in April-August 2020 (400 CEOs, CIOs, technical directors, operational directors and transformation directors in the United States were interviewed in 20 industries), the COVID-19 pandemic was a catalyst for accelerating digital transformation in 59% of the organizations whose managers were interviewed; and 66% of respondents indicated that they managed to complete changes, the implementation of which previously met with resistance from staff. In the context of the increasing struggle for talents [4], it is necessary to expand the range of tools for finding and selecting talented employees who could best meet the current and strategic objectives of the organization. Thus, the main challenge is the urgent need for wider use of new digital tools and technologies, including in the field of HR. The sphere of recruitment, including the selection and hiring of personnel, is of particular importance. Digital HR technologies are designed to make the work of employees easier, relieve them of routine functions, free up time for more important operations. The technology of determining the digital footprint of a job seeker for a position from social media is already actively used [10, 11, 14, 16], since it can be used to get valuable candidate data for recruitment purposes. This allows, in particular, to prevent possible personnel risks [6]. At the same time, special attention should be paid to the issues of confidentiality and control of personal information when receiving, using and distributing data.
2 Methodology The problem of the study is the lack of information about the features and consequences of the use of digital tools, in particular, it concerns the technology of identifying the digital footprint of a job applicant for the selection and recruitment processes in the context of the digital transformation of the economy, aggravated by the impact of the Covid-19 pandemic. The purpose of the study is to use the methods of system analysis and synthesis, content analysis, statistical analysis, to study the available sources of information on the problem field of research: scientific publications; laws; the results of specialized reports of consulting companies included in Big3 and Big4; as well as conference materials. Works of researchers [1, 4, 5] are devoted to the problems of functioning in the conditions of the new reality caused by the Covid-19 pandemic. The need for digital transformation and digital leadership is presented in the studies of [8, 12, 20]. The author analyzes the situation of the introduction of breakthrough innovative technologies, accompanied by digitalization, leading to a change in the set of digital tools in the field of personnel management [17]. The study by Mazor and Stephan provides information about the changing role of HR in the situation of digital transformation and the accompanying continuous organizational changes [15]. The works of Jacobson, Gruzd [10], Peshkova, Bardina [18] analyze the traditional approach to recruitment, present modern digital tools used at the stages of recruitment and selection of personnel. Kensbock, Stöckmann consider tracking technologies [11]. Jacobson, Gruzd study the tracking processes in social media [10]. The technology for determining the digital footprint of the job seeker is described in the work of Micheli,
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Lutz, Buchi [16]. Lambiotte, Kosinski [14] analyze the potential of big social data in order to predict a personality model with a certain set of characteristics, and also study the digital footprint in correlation with personality characteristics. This information is important for an HR specialist who selects and hires personnel in order to select the necessary seekers for a particular vacancy. The work [6] describes digital risks, the source of which may be employees of the organization. Lambiotte, Kosinski [14] highlight issues of data privacy related to the use of digital footprint determining technology. The practical aspects of the consequences of the use by recruiters of the technology for determining the digital footprint of a candidate for a vacancy are set out in Federal Law 152-FZ [7], taking into account changes in legislation introduced from March 01, 2021. Sjöberg, et al. [19] express their point of view regarding the need for personal control of their own personal digital footprint. Herden, et al. [9] raise ethical issues of violating the confidentiality of job seekers and employees during the processes of searching, using and distributing personal data, and also touches on the topic of corporate digital responsibility of an organization as an integral part of corporate social responsibility. It should be noted that in this work there is no need to study, for example, search query algorithms and other aspects related to the field of information technologies. The study examines a pool of questions regarding the features, conditions and consequences of using the technology of analyzing the digital footprint of an applicant for a vacancy as an element of the HR Digital Toolkit in the process of digital transformation in the context of a pandemic, taking into account an ethical approach.
3 Results Within the framework of the general trend of digitalization of the economy, the course of which is accelerated by the pandemic [1, 4, 5], the digital transformation of all the processes of the organization happens as usual [8, 12, 20]. Surely, this leads to the digital transformation of HR tools [15, 17]. According to Jacobson & Gruzd, the traditional recruitment process in an organization includes the following stages: the formation of requirements for a job seeker; placement of a vacancy announcement; receiving feedbacks from applicants; selection of applications for the corresponding vacancy; making a final decision on hiring [10]. The traditional sources of recruitment for recruiters include the database of internal candidates, information bases of recruitment agencies and employment centers, specialized websites, advertisements in social networks [18]. The time-tested methods of personnel selection include interviews, testing, checking recommendations and professional experience, etc. Traditional methods of recruitment and selection of personnel are gradually being replaced by modern methods using innovative digital tools that correspond to the ongoing significant global transformation processes. The most relevant digital technologies include mobile, analytical, cloud tools and their combinations [11], as well as technologies based on various algorithms, including artificial intelligence. Let’s consider the digital tools that are already in service with companies for forming a recruiting tunnel [18]. Among the tools, we can distinguish automated personnel recruitment systems (ATS), CRM systems, bots based on algorithms and artificial intelligence, etc. The principle of operation of the ATS system is as follows: on the most
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well-known specialized sites, a curriculum vitae is searched for selecting a candidate for the desired position according to the specified parameters; suitable resumes are uploaded to the database; feedback from candidates is collected; the functionality includes the possibility of publishing job advertisements, as well as reporting according to the specified criteria. An example of a CRM system for recruitment purposes that provides the possibility of integration with both job sites and social networks is the Potok system. Securely protected data is stored in the cloud. The platform is also presented in a convenient mobile version, integrated with the VCV video interview service, there is online support for applicants, and the presence of a contextual search function allows to identify the most talented candidates suitable for the organization. The analysis of the use of artificial intelligence in recruitment requires special attention. The MessinaBot and EstherBot bots are endowed with simple functions of sending resumes and organizing interviews, and the speech digitization technology used, for example, for the development of the Mia bot and the Russian Vera bot, expands the functionality by adding the ability to interview a candidate with the formation of a conclusion about the level of reliability; the bot forms feedback with both the employer and the job seeker; analytical tools are more extensive. By using digital tools to solve the most time-consuming or routine tasks and tracking the effectiveness at various stages of recruitment, we can significantly reduce the company’s costs. At the same time, resources are freed up for more thorough work on the selection of unique and rare specialists. With the increasing availability of information about prospective candidates in Social Media, HR technologies began to attract new types of data: in particular, information sources from social networks are now used in recruitment as a tool for filtering candidates [10]. Data on human behavior and social interaction are used to gain strategic advantages in the competition for the best future employees. Due to the development of datafication technology, social media is not only mass communication media, but also data generation tools from which new information with value can be extracted [3]. The basis of this data is the so-called digital footprint, which arises as a result of creating its own content, passive participation and generating data collected by the platform [16]. An active digital footprint is formed consciously from the information uploaded by the user (photos, comments, correspondence, likes, etc.). A passive digital footprint remains due to unintentional actions of the user, as well as due to the fact that information about it is published by other users. Using the digital footprint analysis, you can find out additional information about the candidate that helps recruiters in choosing: real work experience, hobbies, lifestyle, information about the behavior and personality traits of a particular person, personal preferences and needs. The obtained data can be the basis for a forecast according to the specified criteria [19]. Data can be collected and analyzed independently using APIs, in addition, it is possible contact specialists representing the rapidly emerging specialized market in the field of HR-Tech. Facebook, LinkedIn, Twitter, Instagram, VK, etc., as well as complex technological screening using predictive analytics in accordance with the specified parameters to determine certain correspondences or exceptions are among the services that are in demand by employers. As indicated in [10], there are requests for the identification of diseases, bad habits (drug addiction, drunkenness), as well as other unpleasant personality traits that can be factors of personnel risks of the company.
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Even within the same profession, the employee’s activity will change, since the solution of current tasks is delegated to digital tools. As a result, the company’s employees may need other skills. The forecast [20] shows that by 2030, the demand for professions and activities that require the use of STEM-skills (especially technological skills) will grow by 39 percent in all areas of activity. On the other hand, the same source predicts the growth rate of demand for social and emotional skills by 30% relative to the level of 2020, which means that personnel will be more in demand for the implementation of “human “ functions of management, interaction, training. The study [14] demonstrated that using the technology of determining the digital footprint (in particular, using the analysis of likes) in a social network, it is possible to identify certain characteristic personality traits, including life satisfaction, emotional stability, openness, extroversion, introversion, benevolence, conscientiousness, etc. According to Kniffin, et al. [13], information about character traits allows to predict many aspects in the behavior and business relations of an employee and a job seeker: overcoming difficulties, building a work life balance and achieving subjective well-being are very important indicators in the situation of the COVID-19 pandemic. In addition, the qualities that play a particularly important role for the results of activity in the conditions of the new normality are defined – these are extroversion and conscientiousness [13]. In a situation of a high level of uncertainty, aggravated by the pandemic, it is proposed to pay attention to the qualities that candidates have imposed by the cross-cultural communication requirements: tolerance, stability, curiosity [4]. The use of such soft skills will lead to effective communication, including in the conditions of virtual work. We believe that the employer is more likely to be interested in job seekers with a certain set of Hard Skills, Soft Skills, STEM Skills and personality traits that meet not only the requirements of the vacancy, but also the corporate culture, as well as the specific situation. In order to successfully cope with the digital transformation and thus ensure survival in the era of digitalization, organizations need to attract talents for the successful implementation of a digital strategy. The struggle for suitable personnel turns into a war for talents [1]. Digitalization exposes modern organizations to new risks [12]. The PwC company report showed that the managers whose opinion was studied in January-March 2021 assess the risk of cyber threats among the most likely risks that pose the most significant danger to the activities of enterprises (47% of respondents indicated this risk, which is 14% more than a year earlier) and the risk of misinformation that appeared in 2021, according to 28% of the CEOs respondents [8]. Cybersecurity threats from an employee can be presented on a scale from passive unintentional non-compliance to active intentional abuse (theft of company data) [6]. By analogy, the risk of misinformation, in our opinion, can also be caused by both unintentional actions of employees (occurring for various reasons, among which, for example, incompetence and employee overload can be distinguished), and intentional actions of employees. Digital recruitment technologies are designed to prevent newly emerging risks, which allow obtaining the necessary information about applicants [2].
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4 Discussion The implications of applying procedures for identifying and analyzing the digital footprint of an applicant for a vacancy should be discussed. Candidates for a vacancy, considering the selection methods used by the organization unethical without notifying the applicant, may lose confidence in it and prefer a more responsible competitor with an open information recruitment policy (a similar reaction can be expected from the company’s employees); thus, the company will miss the opportunity to hire the best candidates [10]. There is already a practice of submission of claims about unacceptable recruitment methods from candidates for a position to companies that use screening in social media [2]. Such processes lead to the weakening of the external and internal HR brand of the company. In addition, it is impossible to allow the technology of digital footprint analysis using predictive analytics based on AI and various algorithms to become an additional form of discrimination in hiring. Therefore, when using various digital recruitment tools based on algorithms, it is necessary to take into account the possible risks of making incorrect management decisions due to the use of algorithms, approaches to the development of which are insufficiently justified. It is noted in the study [3] that the information collected through the use of digital footprint analysis technology may not correspond to reality. Therefore, it is necessary to check the reliability of the data obtained, as well as to inform candidates about the tools used for data collection and analysis, including providing an opportunity for the applicant to learn the information extracted from the digital footprint - after all, an ordinary person often does not know what data is published, collected and stored about him [19]. Thus, all recruitment processes and procedures should be transparent for job seekers. The problems of violation of confidentiality due to the use of technology for analyzing a candidate’s digital footprint are discussed at high levels of government: in 2017, the EU advisory body adopted new guidelines that recommend a ban on collecting data from social networks for recruitment purposes, as well as a requirement for employers to disclose information about tracking a digital footprint [10]. In the Russian Federation, the distribution and processing of personal data are regulated by a special Federal Law 152-FZ “On personal Data” [7]. The list of personal data may include passport data - surname, first name, patronymic, year and place of birth, address, ID number and series, as well as phone number, e-mail, profession, information about education and profession, as well as other information about a person. In addition, personal data can include: photos, contacts from the phone book, hobbies, information about travel, purchases, the history of requests and views on the Internet and social networks, changes in geolocation, etc. Since March 1, 2021, this Law has been amended, according to which any distribution of personal data is carried out with the consent of the subject to whom they belong. In order for the innovation of the Law not to lead to negative consequences for recruiters analyzing digital footprint data from the Internet, it is necessary to identify the consent of the personal data subject regarding the dissemination of his personal data before processing personal data from open sources. Digital transformation creates not only new opportunities, but also generates social problems - questions regarding the ethical aspects of using the technology of analyzing the candidate’s digital footprint are included in the agenda, they are discussed from the point of view of ethical corporate governance [10]. Within the framework of the
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concept of corporate social responsibility, there is even a new term “corporate digital Responsibility” (CDR) as a responsibility related to access to digital data [9]. As part of this approach, companies should ensure the protection and provision of information to both employees and candidates for vacancies, who, in turn, will act more responsibly in the network. The goal of this bi-directional process is to create a more secure and responsible digital environment [9].
5 Conclusion The penetration of breakthrough digital technologies into all spheres of society makes serious adjustments to the range of personnel management tools used. And in the field of recruitment, only specialists who possess a modern set of digital technologies for the selection and hiring of the best candidates for a vacancy can get ahead of competitors in the fight for talents. The situation of the developing Covid-19 pandemic contributes to accelerating the digital transformation of companies. Digital transformation brings not only opportunities, but also negative consequences – such as data leaks and cyber attacks. Personnel risks (including the previously mentioned misinformation risks and cybersecurity risks identified by managers) are closely related to the characteristics of candidates attracted to vacancies. The use of the currently relevant technology for analyzing the digital footprint of an applicant in social media helps to carry out predictive actions to identify and attract the most suitable candidates for vacancies more quickly than competitors, which will prevent possible threats. Of course, the technology of determining the digital footprint of a candidate for a vacancy will be in demand by recruitment agencies and employers until it allows saving time and financial resources, however, in our opinion, it can be considered as an auxiliary tool. It should be noted that when applying HR-Tech technologies in the field of recruitment based on artificial intelligence, it is necessary not only to strictly adhere to the requirements of the legislation regarding the processing, storage and dissemination of personal data, but also to develop a concept of corporate digital responsibility within the corporate social responsibility of the company based on an ethical approach. This is necessary to maintain a balance between the interests of the employer and job seekers; with the achievement of conditions for both minimizing the risks of the company, and prohibiting discrimination and ensuring privacy.
References 1. Becker, W., Schmid, O.: The right digital strategy for your business: an empirical analysis of the design and implementation of digital strategies in SMEs and LSEs. Bus. Res. 13(3), 985–1005 (2020). https://doi.org/10.1007/s40685-020-00124-y 2. Bhave, D.P., Teo, L.H., Dalal, R.S.: Privacy at work: a review and a research agenda for a contested terrain. J. Manag. 46(1), 127–164 (2020) 3. Breiter, A., Hepp, A.: The complexity of datafication: putting digital traces in context. In: Hepp, A., Breiter, A., Hasebrink, U. (eds.) Communicative Figurations. TCSCR, pp. 387–405. Springer, Cham (2018). https://doi.org/10.1007/978-3-319-65584-0_16
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4. Caligiuri, P., De Cieri, H., Minbaeva, D., Verbeke, A., Zimmermann, A.: International HRM insights for navigating the COVID-19 pandemic: implications for future research and practice. J. Int. Bus. Stud. 51(5), 697–713 (2020) 5. IBM: COVID-19 and the future of business (2020). https://www.ibm.com/downloads/cas/ 1APBEJWB 6. Dalal, R.S., Howard, D.J., Bennett, R.J., Posey, C., Zaccaro, S.J., Brummel, B.J.: Organizational science and cybersecurity: abundant opportunities for research at the interface. J. Bus. Psychol. 1–29 (2021). https://doi.org/10.1007/s10869-021-09732-9 7. The Federal Law of the Russian Federation 152-FZ «On personal data». http://base.garant. ru/12148567/. Accessed 02 Aug 2021 8. PWC: PwC 24th Annual Global CEO Survey (2021). https://www.pwc.com/gx/en/ceo-age nda/ceosurvey/2021/report.html. Accessed 02 Aug 2021 9. Herden, C.J., et al.: Corporate digital responsibility. Sustain. Manag. Forum | NachhaltigkeitsManagementForum 29(1), 13–29 (2021). https://doi.org/10.1007/s00550-020-005 09-x 10. Jacobson, J., Gruzd, A.: Cybervetting job applicants on social media: the new normal? Ethics Inf. Technol. 2020(22), 175–195 (2020) 11. Kensbock, J.M., Stöckmann, C.: “Big brother is watching you”: surveillance via technology undermines employees’ learning and voice behavior during digital transformation. J. Bus. Econ. 91(4), 565–594 (2020). https://doi.org/10.1007/s11573-020-01012-x 12. Klus, M.F., Müller, J.: The digital leader: what one needs to master today’s organisational challenges. J. Bus. Econ. 91(8), 1189–1223 (2021). https://doi.org/10.1007/s11573-021-010 40-1 13. Kniffin, K.M., et al.: COVID-19 and the workplace: implications, issues, and insights for future research and action. Am. Psychol. 76(1), 63–77 (2021). https://doi.org/10.1037/amp 0000716 14. Lambiotte, R., Kosinski, M.: Tracking the digital footprints of personality. Proc. IEEE 102(12), 1934–1939 (2014). https://doi.org/10.1109/JPROC.2014.2359054 15. Mazor, A.H., Stephan, M.: The future of enterprise demands a new future of HR. Reimagining human resources (2019). https://www2.deloitte.com/us/en/pages/human-capital/articles/fut ure-of-hr.html. Accessed 21 July 2021 16. Micheli, M., Lutz, C., Büchi, M.: Digital footprints: an emerging dimension of digital inequality. J. Inf. Commun. Ethics Soc. 16(3), 242–251 (2018). https://doi.org/10.1108/JICES-022018-0014 17. Peshkova, O.A.: Changing HR-strategy companies in connection with the introduction of breakthrough innovative technologies. In: Ashurbekov, R.A., Lobacheva, A.S. (eds.) Topical Issues of Personnel Management and Labor Economics 2018 - Proceedings of the 4th AllRussian Scientific and Practical Conference, pp. 143–145. State University of Management, Moscow (2018) 18. Peshkova, O.A., Bardina, D.D.: Modern methods and tools of recruitment. In Ashurbekov, R.A., Lobacheva, A.S., Kashtanova, E.V. (eds.) Topical Issues of Personnel Management and Labor Economics 2020 - Proceedings of the 6th All-Russian Scientific and Practical Conference, pp. 264–269. State University of Management, Moscow (2020) 19. Sjöberg, M., et al.: Digital me: controlling and making sense of my digital footprint. In: Gamberini, L., Spagnolli, A., Jacucci, G., Blankertz, B., Freeman, J. (eds.) Symbiotic 2016. LNCS, vol. 9961, pp. 155–167. Springer, Cham (2017). https://doi.org/10.1007/978-3-31957753-1_14 20. Smit, S., Tacke, T., Lund, S., Manyika, J., Thiel, L.: The future of work in Europe: Automation, workforce transitions, and the shifting geography of employment. McKinsey Global Institute (2020). www.mckinsey.com/featured-insights/future-of-work/the-future-of-work-in-europe. Accessed 02 Aug 2021
Smart Economy: A New Reality
Digitalization of the Construction Industry as a Condition for Sustainable Development O. E. Astafyeva(B) , N. A. Moiseenko, and A. V. Kozlovsky State University of Management, Moscow, Russia
Abstract. Modern trends in the sustainable development of organizations have revealed significant problems in ensuring effective functioning in a difficult economic environment, and, therefore, a systematic approach to various activity areas of industrial enterprises is required. In particular, the authors consider issues of state participation in the management of the organizations development as part of the economic development of the industry, the region and the country as a whole. Approaches to the economic development of organizations within the emerging digital environment are consistently considered. The necessity of creating geographically grouped systems is justified, which is determined by the intersection of the interests of participants in production processes in industries and economic sectors. The contribution investigates issues of digital transformation in the organizations of the construction industry, analyzes the emerging problems and provides justification for possible approaches and advantages of introducing digital technologies in the framework of developing a strategy for the sustainable development of organizations in the conditions of creating a single digital space. Keywords: Construction industry · Digital economy · Digitalization of business processes · Digital strategy · Digital transformation · Sustainable development
1 Introduction In modern economic conditions, sustainable economic development is associated with a whole complex of problems that are caused by various reasons that arise both in the external and internal environment of any organization. Practice shows that organizations of the construction industry are also forced to solve these and a number of other problems related to the fact that the construction industry, due to its specifics, intersects with a large number of related industries [3]. Due to this provision, it is necessary to take into account the contradictory requirements of all participants in the investment and construction sector of the economy. In this regard, it is necessary to find new rational ways to create a strategy for the sustainable development of organizations engaged in investment and construction activities. One of the directions can be defined as creating conditions for the introduction of construction industry enterprises into a single digital space. The analytical study of this issue has revealed a number of problems faced by construction enterprises in the process of carrying out production and economic activities © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 379–385, 2022. https://doi.org/10.1007/978-3-030-94873-3_47
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and establishing effective economic relations with other participants in the investment and construction process. Immersion in the digital environment requires a unified approach from all participants of investment and construction activities, integration of digital technologies into a single digital space, revision of the interrelations of business processes, training and retraining of personnel to work in a single digital transformation [5]. The development and justification of approaches to creating a mechanism for adapting construction organizations to functioning in a digital environment will increase the economic stability of industrial organizations that are part of the investment and construction sector.
2 Methodology To date, the most advanced in the field of digital transformation are enterprises and organizations of the banking sector, housing and communal services, telecommunications organizations, companies in the oil and gas industry. This is confirmed by statistical data that show that in 2020 the number of such companies increased by 38% compared to 2019, artificial intelligence methods are widely implemented in the justification and adoption of management decisions [8]. There is a transition from simple models of artificial intelligence (hereinafter – AI) to more complex solutions and networks of intelligent objects. The first positive results of the digital transformation of state bodies in terms of providing public services to the population and managing infrastructure facilities have already been obtained. The digital environment covers organizations of logistics and transport orientation, the consumer sector of the economy and a number of others. Until 2025, the digital transformation of agricultural and industrial enterprises is expected [10]. Small companies are gradually starting to join the digital environment. This gives an understanding that the platform approach will dominate in the architecture of building the digital strategy of organizations. These changes will undoubtedly cause some negative trends, according to expert analytical studies. It is predicted that the gap between organizations that have already passed the path of entering the digital environment and organizations that are at the beginning of this difficult path from an organizational and technological point of view, will increase, that will affect the effectiveness of the performance indicators of these companies [2]. In addition, the accelerated application of digital technologies may lead to the abolition of a number of specialties on the one hand, and an increased demand for specialists in the field of digital technologies, on the other hand. This, in turn, will cause the release of labor, which will lead to the need to increase the state’s attention to social issues. The digital transformation of the construction industry is a necessity to ensure further sustainable development in a competitive environment. Digitalization processes affect almost all stages of the life cycle of the construction process, which makes it possible to increase the efficiency of construction in all activity areas, starting with the design work, organization and implementation of construction and installation works and ending with the commissioning of objects with subsequent maintenance of their operation [1, 12]. To date, there is no scientifically based management of the digital transformation of construction business processes, taking into account the organization of interactions
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of participants in an investment and construction project in the digital environment. In addition, there are some problems that arise during the implementation of digital transformation: 1. The lack of economically substantiated approaches and mechanisms for the introduction of organizations into the general digital environment, which requires the organization to search for a digital development strategy focused on increasing sustainability and competitiveness. 2. The digital transformation requires a serious review of the human resources potential of the organization. It is necessary to rotate, train and retrain personnel within the framework of the necessary specialties, competencies, knowledge and skills. And this, in turn, will lead to a significant increase in costs in the process of digital transformation of organizations. 3. Any restructuring is accompanied by risks of the profitability loss. Digital transformation is no exception. However, the timely digital transformation allows us to ensure a return on investment with a subsequent increase in profitability in the long term. In order to minimize the losses of construction organizations in the process of digital transformation, it is necessary to seriously justify the transformations being undertaken within the framework of the developed digital strategy. These transformations should cover all levels of management and production, including the management of new business models, which is very important at the enterprises of the investment and construction sector.
3 Results In order to improve the quality of technical and design tasks, it is necessary to change the system of expert evaluation of technical tasks, for which it is necessary to assign identification numbers to construction objects within the digital environment of participants’ interaction, for which they can be tracked in the chain of general approvals when obtaining permits, which will reduce the volume of executive and technical documentation [6]. To date, the Digital Construction Superservice (hereinafter referred to as the DC Superservice) has been developed for construction, housing and communal services, which allows gradually integrating public and private structures for joint work on the basis of this platform, ensuring the regulation of the construction industry and determining the algorithm for the exchange of data and information between participants at different levels. This super service can be described as a digital complex of public services. The principle of the proposed integration consists in entering into the digital platform of urban planning initial permits, which, as a result of applying to the DC superservice, is repeatedly replicated taking into account the needs that arise at various stages of the life cycle of the construction object, which ultimately reduces the administrative burden, reduces the risks of violating urban planning norms, optimizes the regulations for the provision of services in the field of construction and provides a target orientation to a specific consumer of the service.
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The work of the digital platform requires the presence of legal regulation. At this stage, the rules for maintaining state information systems for urban planning activities have been approved, technical requirements for maintaining registers of state information systems for urban planning activities have been prepared, there is a methodology for assigning registration numbers to materials and information that will be placed in documents with subsequent assignment of registration numbers to them, classifiers and reference books for processing documentation and the format of its presentation. The launch of the DC superservice consists of several stages: Stage 1 (2019–2021) - the digital service “Construction of an individual residential or garden house”. Stage 2 (2020–2022) - digital service “Construction of multi-apartment residential buildings”. Stage 3 (2021– 2024) - digital service “Construction of other capital construction facilities”. As can be seen from the list, a single information field of urban planning activity is being formed at the state level, where interdepartmental electronic interaction is carried out [8]. In relation to investment and construction activities (hereinafter referred to as ICA), digitalization also covers the restructuring of business processes of a construction organization, changing the business development model, developing investment schemes in digital technologies, implementing information modeling of investment projects. Accordingly, the process of managing digital transformation within the framework of investment and construction activities requires regulating the interaction of both external and internal management entities, which in turn requires the formation of an interaction model within the created information environment that goes beyond the services provided by the DC superservice and ensures the sustainable development of the investment and construction company’s activities within the built business model. The model of digital transformation of an investment and construction enterprise (hereinafter referred to as the ICE model) in the implementation of investment projects can be represented as the following function: F(Ut ) = (P, I, S, D, T)
(1)
where Ut is the required level of digital transformation that ensures the sustainable development of an investment and construction company; P – a portfolio of projects implemented by an investment and construction company; I – availability of an information model of investment projects; S – complexity of investment projects; D – formed digital environment in the company; T – the investors requirements for the digitalization of the company’s business processes. Based on the presented model, the stability of the functioning of an investment and construction company consists of external and internal factors, the digital transformation of which is aimed at balancing the components that ensure each stage of the life cycle of an investment and construction project, such as: investment justification → design and survey work (DSW) → construction support → commissioning of a capital construction object. Setting up the parameters of the ICE model assumes the possibility of embedding it into work with other digital platforms and services in order to organize effective interaction between participants of an investment and construction project when approving permits and determining the effectiveness of using investors’ funds.
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4 Discussion The problems of embedding the construction industry in the digital space are associated with the difficulties that arise when introducing new technologies into the established business processes of the organization [9]. These difficulties are associated not only with serious costs for new equipment, software, and innovative technologies, but also with the need to restructure the entire management system both within the organization and in the external environment. This includes the development of a motivational strategy for employees who are involved in the digital environment on the one hand, and on the other, the search for new approaches to interact with external participants in order to involve them in a common digital platform. In the modern conditions of the contemporary economic development, it becomes obvious that the competitiveness of an organization is possible only by innovative transformations within the framework of digitalization. For example, cloud technologies allow organizations of the investment and construction sector to simultaneously implement several projects rationally using the available capacities and resource potential, involving other interested participants in this work, which allows them to optimize costs and, as a result, reduce the estimated cost of construction, and in such a way to increase the efficiency of activities and strengthen the sustainability [10]. Within the framework of online conferences held under the auspices of the Ministry of Construction of the Russian Federation, the issues on the need to create a single digital space in the investment and construction sector of the economy were considered. At the present development stage, a significant number of public and private information systems have been created, which will eventually be transferred to a single digital platform. It is obvious that digital transformation is a time-consuming process, within which it is necessary to develop a whole system of methods, approaches, mechanisms of functioning and interaction between participants. In addition, it should be clearly understood that this is a dynamic process and organizations need constant development taking into account the emergence of new innovative products and opportunities in all areas of the economy, including digitalization [4, 11]. The introduction of digitalization technologies is only one step. At the enterprises of the construction industry, there is some slowness in the adaptation of personnel to the implemented updated business processes. Due to the fact that the transformation concerns every employee of the enterprise, it is necessary to develop and implement a set of measures to train or retrain the personnel at all levels of the economic activity, which will allow mastering new processes, technologies and approaches to investment and construction activities management. The digitalization system also includes special tools within the framework of the adopted transition mechanisms. For example, the Creatio software is developed on the basis of two modern concepts: Business Process Management (BPM) and Customer Relationship Management (CRM) [7]. The advantage of this software product is that the underlying platform combines business process management technologies and management of various situations arising in the framework of activity based on the use of modern intelligent technologies. In addition, it becomes possible to use standard processes that are embedded in the system, or add and
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configure your own, if the company’s activities require it. This characteristic justifies the possibility of using this tool at enterprises of the investment and construction sector.
5 Conclusion Summing up, it should be noted that currently in the investment and construction sector there are information systems in the field of pricing, urban planning policy, construction and operation of infrastructure facilities of housing and communal services, real estate valuation, territorial planning, etc. The model of digital transformation of investment and construction activities presented in the contribution reflects the process of changes taking into account the project life cycle, which enables to fully coordinate, regulate and control the participants’ activities in the investment and construction process in order to ensure sustainability in the digital economy. The task of further digital transformation of the construction industry is to create a single digital space, through which it will be possible to unify production and organizational processes, streamline relations between construction participants, optimize their activities, thereby reducing costs and increasing the efficiency of management, which will ultimately increase their competitiveness and lead to sustainable development. In addition, the digitalization of the construction industry will contribute to improving the investment climate in the Russian economy through better “transparent” management of public capital investments. It is also necessary to reflect the effectiveness of digital technologies usage in the field of engineering in the construction progress control system. For a high-quality transition to the digital space, it is necessary: – to identify and concretize problems facing organizations when entering the digital space; – on the basis of analytical research, to develop and justify a system of measures aimed at the application of digital technologies in each specific construction enterprise. Thus, it should be stated that the digitalization of the construction industry, despite the existing problems of a transitional nature, has a number of advantages that allow increasing the competitiveness of organizations and, as a result, their stability and reliability.
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5. Government of Russia: ional projects: Targets and key results (2019). http://static.govern ment.ru/media/files/p7nn2CS0pVhvQ98OOwAt2dzCIAietQih.pdf. Accessed 01 Mar 2021 6. Jacobides, M.G., Sundararajan, A., van Alstyne M.: Platforms and ecosystems: Enabling the digital economy (2019). http://www3.weforum.org/docs/WEF_Digital_Platforms_and_Eco systems_2019.pdf. Accessed 01 Mar 2021 7. McKinsey: A winning operating model for digital strategy. https://www.mckinsey.com/ business-functions/mckinsey-digital/our-insights/a-winning-operating-model-for-digital-str ategy. Accessed 01 Mar 2021 (2019) 8. Ministry of Construction of Russia: A digital platform combining information systems in the field of construction will be created in 2024 (2018). http://www.minstroyrf.ru/press/tsi frovuyu-platformu-obedinyayushchuyu-informatsionnye-sistemy-v-oblasti-stroitelstva-soz dadut-k-202/. Accessed 01 Mar 2021 9. Moiseenko, N., Kuzmina, O.: Internal formation mechanism of construction company innovation modeling development. Vestnik Universiteta 10, 151–158 (2016) 10. Strategy for the development of the information society in Russia for 2017–2030. Decree of the President of the Russian Federation No. 203 of 09.05.2017. http://kremlin.ru/acts/bank/ 41919. Accessed 01 Mar 2021 11. Travush, V.I.: Digital technologies in construction. Constr. Sci. 3, 107–117 (2018) 12. Vasilieva, N.V., Bachurinskaya, I.A.: Problematic aspects of digitalization of the construction industry. Bull. Altai Acad. Econ. Law 7, 39–46 (2018)
System Development for Generating Reports on Production Activities on the Platform SAP V. A. Belousov(B) , A. A. Sirotin, and L. I. Shustova State University of Management, Moscow, Russia
Abstract. The research purpose is to develop a system for generating management reports on production activities of an energy company on the SAP platform. To build a reporting system, the following tasks were solved: conceptual and datalogical models of the data warehouse were created, data areas were allocated from the general data model, a data warehouse was designed and developed, universes for report groups were created, a mechanism for integrating data with the data warehouse was implemented. The paper analyzes the IT infrastructure of an energy company, formulates the main requirements for the reporting system. Two main subsystems are designed – data storage and integration. The process of implementing the designed subsystems in physical form using the appropriate software products is described: SAP Hana, SAP Universe Designer, SAP Data Services, SAP Business Intelligence. Thanks to the configured system, a relatively simple data integration mechanism has become possible via the corporate data bus. In the company’s IT architecture, it was possible to model an acceptable data warehouse model and configure appropriate data flows. A convenient platform for data processing is provided. SAP Data Services has set up a clear data integration scheme, with the ability to scale and configure the data loading schedule. Keywords: Data storage · Integration · IT architecture reporting · Sap Hana · SAP Business Intelligence
1 Introduction The activity of modern organizations is accompanied by a variety of business processes and individual operations, the result of which is interconnected data of different types. To make effective management decisions, the company’s managers have to process huge amounts of various information [5]. To facilitate the work of the company’s management, to increase the efficiency of made decisions, technologies are used that specialize in storing, analyzing and visualizing data. This problem primarily affects organizations of all sizes and industries, but it is most typical for large enterprises. One of the industries in which the described problem is relevant is the energy industry. This industry has a number of features that must be taken into account when designing technologies for storing, analyzing and presenting data. For example, a number of data, such as: accident data, critical equipment indicators, production orders, etc., should get into the system with minimal delay; some data, for © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 386–394, 2022. https://doi.org/10.1007/978-3-030-94873-3_48
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example, the service life of equipment, the cost of equipment, etc. are used in reports to external stakeholders, because reliability is especially important for it. In addition, due to the scale characteristic of organizations in this industry, the amount of information required for storage and processing is usually very large. The organization in which this work was implemented did not have a single data warehouse and reports were collected from different systems, from different databases, which was unacceptable for the company, since it was difficult for managers to get complete and up-to-date information in a timely manner, especially in the proper form. The relevance lies in the need for an energy company to collect reporting information from several information systems and other sources in one place, process it and provide it in a convenient form. Common reporting systems, as a rule, do not allow a comprehensive look at the organization functioning providing information about specific functions and processes [8]. In addition, there is a problem of non-relevance of reporting data in large systems, since the report displays not current data, but cross-sections for past periods. Such deviations do not affect strategic decisions, but operational decisions based on such data may not be the most effective, and in some cases, in general, erroneous. The data warehouse integrated with the company’s reporting systems will allow collecting all information about the organization’s activities, and OLAP technologies and the indicator panel will generate informative reports that will serve as the basis for making effective management decisions [3, 9, 11].
2 Methodology To build a reporting system that includes a data warehouse and a mechanism for integrating data with the reporting system, the following tasks were set and solved: 1. 2. 3. 4. 5. 6.
Construction of conceptual and datalogical models of the data warehouse. Selection of data areas from the general data model. Building a view for individual data areas. Design and development of a data warehouse. Building universes for report groups. Design and implementation of the data integration mechanism with the data warehouse. 7. Creating reports. We analyzed the composition of the IT architecture of the energy company and identified the following systems: IBM Web Sphere; AS ASOT; EX NSI; AS “Passportization”; AS “Dispatching”; KASU TO; the module “Maintenance and repair of equipment” (RM) of the organization’s CIS. The existing process of exchanging regulatory and reference information through the IBM Web Sphere corporate data bus has the following architecture: the data source for IBM Web Sphere is ASOT; the recipients of data from IBM Web Sphere are information systems:
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1. 2. 3. 4.
AS “Certification”; AS “Dispatching”; AS “Teploexpert”; The module “Maintenance and repair of equipment” (RM) of the CIS of the Organization’s OJSC; 5. Balance management system (SUB); 6. Tariff calculation system (CPT); 7. The module “Sales for heat power engineering”. ASOT is designed to solve the following tasks: 1) creation and centralized management of directories; 2) creation of a single interface for maintaining directory data; 3) implementation of the adapter (data exchange component) between the ASOT and the integration bus; 4) maintaining a graph of heat supply facilities; 5) downloading information from external sources. AS ASOT transmits regulatory and reference information to the following information systems via the IBM Web Sphere integration data bus: – – – – – – –
AS “Certification”; AS “Dispatching”; AS “Teploexpert”; the module “Maintenance and repair of equipment” (RM) of the Organization’s CIS; balance management system (SUB); tariff calculation system (CPT); module “Sales for heat power engineering” (SAP IS-U). The NSI CEN is designed for centralized reference information management:
– contractors (contractors); – directory of material and technical resources (equipment classifier). The automated system “Certification” is designed for: maintaining and accounting of passport data on objects, parameters and conditions of the technological process and maintaining technical, technological and cadastral documentation; and monitoring of the technological complex. The multi-channel control and production management system AS “Dispatching” was created to improve the efficiency of the technological process of heat and water supply to the city. The basis of the KASU TO is the register of technological equipment. RTO is a quantitative (list) and qualitative (characteristics) description of the technological equipment of the heating network, formed on the basis of executive or other approved documentation. The following business processes of an energy company are the object of automation: – collection, processing, storage of information and reporting on the functional block “state of the economy” of the energy company; – collection, processing, storage of information and reporting on the functional block “reliability” of the energy company. The organizational scope of the project is departments / services of the management apparatus of the energy company:
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– central dispatch control; – heat network diagnostics service; – service for the operation and repair of thermal energy distribution and transmission facilities; – production and technical department; – center for technological connections; – department of main heating networks; – service for the operation and repair of electrical equipment, automated process control systems and instrumentation; – service for the operation of power generation facilities. The system should be implemented as a single software and hardware complex that ensures the independence of the obtained data from individual information systems of operational data processing of the production and technological unit of the energy company, on the one hand, and their integration, if necessary, the formation of consolidated cross-reporting, on the other hand. The integration subsystem should provide logging of incoming and processed data, the ability to quickly analyze errors that occurred when loading data. The integration subsystem should be built on the SAP Data Services solution. Data source systems must: – function within the framework of a single regulatory and reference information; – provide an opportunity to develop new services / procedures through which data will be exchanged with external systems. The data model of the data warehouse should provide the formation of reporting forms. The data model of the data warehouse should include the ability to scale when adding new data source systems. The data should be stored in structures that provide storage of large amounts of data and high speed of their processing. The data storage subsystem should be built on the SAP HANA software and hardware complex. In order to optimize the data management of the system, the structure of the data storage subsystem should be divided into several areas: the area of classifiers and reference books; primary data storage area; the data showcase area. The area of classifiers and reference books is intended for storing the values of reference books from data source systems and centralized (reference) reference books. The primary data storage area is intended for storing transactional data collected directly from external data source systems. The data must be stored in the same format in which it is delivered from external systems. The depth of storage of primary data is determined during the project execution and should be sufficient to build reporting forms. Reporting forms should be developed using the SAP Business Objects Web Intelligence software solution. The reporting subsystem should provide: – the possibility of collective work of users of the energy company, in the presence of a set of tools and measures to ensure information security; – the possibility of remote access using a set of tools and measures to ensure information security; – formation of reports in the interests of the energy company;
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– formation of arbitrary requests to the corporate data warehouse; – the ability to independently (without the involvement of support specialists) build reports and graphs based on information from the data warehouse; – the ability to save versions of reports protected from changes; User accounts should be managed by system administrators through the standard SAP Business Objects Central Management Console (CMC) tool. The following access levels must be configured in the system: functional and organizational.
3 Results During the implementation of the project, data structures, protocols and regulations for the interaction of the system with adjacent systems were developed. The number of related systems included: IBM Web Sphere; AS ASOT; EX NSI; AS “Passportization”; AS “Dispatching”; KASU TO; the module “Maintenance and repair of equipment” (RM) of the Organization’s CIS; module “Sales for heat power engineering”. The control of the correctness of the data entering the system is assigned to the data source systems. In addition to interaction with the related systems indicated above, the integration subsystem should provide the ability to load data into the system from files of the formats “.csv”, “.xls” and “.xml” in accordance with the data structures defined during the project. The entire integration scheme is shown in Fig. 1. The data storage subsystem is a key element of the system and is intended for storing data from the systems of the production and technological unit of the energy company. The data storage subsystem should be the only source for building analytical, operational and regulatory reporting on the production activities of an energy company. There are two fundamentally different approaches to the implementation of data loading. Monolithic architecture is an architecture in which various components of an application are combined into a single program on a single platform. It is characterized by the absence of isolation and distribution. All requests in this architecture are handled by a single “monolith”. The main advantages of this architecture are: – simplified development and deployment; – a small number of end-to-end problems, thanks to a single code base; – good performance. Among the disadvantages, the following should be highlighted: – gradual overload of the code base; – the complexity of the new technologies application; – limited flexibility [4, 6, 10]. Microservice architecture is an approach to creating an application that implies the rejection of a single, monolithic structure [2, 7, 12, 14]. To implement data loading in the system, it was decided to apply a compromise approach: loading is carried out through
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Reporting subsystem SAP BO Web Intelligence
SAP BO Dashboards
SAP Crystal Reports
SAP BO Analysis
SAP BO Mobile
Semantic layer
Data storage subsystem SAP HANA
Integration subsystem SAP Business Objects Data Services
Corporate Data Bus IBM Web Sphere
IACS TO
The "PM" module of the CIS
Module "Sales" for thermal power engineering
AS ASOT, CEN NSI AS "Dispatching" AS "Passportization" Files .cvs, .xls, .xml Data sources Fig. 1. General integration scheme (Source: authors).
one server, in one environment, but within the framework of separate tasks for each table, in order to be able to flexibly configure flows without interrupting the system, and in case of problems – to know the source of the problem exactly.
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For each database table, two mechanisms for loading data were implemented: 1. Full download - for initial data loading and loading in case of malfunctions of the second download type. 2. Delta upload – loading only new data, updating and deleting records. Both mechanisms were designed as a “task” object in SAP Data Services [13, 14] and were attached to the general management of the company’s intersystem integration. In addition, the administrator can start each data stream separately manually if necessary. In addition to the described integration mechanisms, a huge number of auxiliary data enrichment streams from adjacent systems and flat files were also created, but these streams are unique because of their features, so they were considered in this paper. On the server, before receiving data through Data Services, the so-called data concept is formed: a data slice for loading. In the case of a full download, this is simply all the data necessary for sending from the corresponding database; in delta downloads, this is a slice of data for the last 10 days. The following is the implementation of data loading options in SAP Data Services for the Plot table. To implement data areas, combining entities, the SAP Universe Designer software product was used [1, 15]. A universe was created (Fig. 2), which is a physical implementation of the data area. It includes all the entities described earlier, as well as a number of additional tables that are not directly related to any of them, but contain the data necessary for displaying in the report.
Fig. 2. Universe, as a physical model of the data domain (Source: authors).
4 Conclusion An energy company has a fairly wide list of systems, information from which should be combined in the data warehouse. In the work, the general requirements for the designed system were highlighted, based on the wishes of the management of the energy company
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and the standard regulations for the creation of such systems. The requirements relate to the main subsystems of the created system, namely: the data integration subsystem, the data storage subsystem and the reporting subsystem. Thanks to the use of SAP Hana capabilities, a complex data warehouse model is implemented, a convenient platform for further data processing is provided. SAP Data Services has set up a clear data integration scheme, with the ability to scale and configure the data loading schedule. The necessary reports are built using the SAP Business intelligence tool. As a result, a management reporting system was obtained, which has already been put into operation. Employees interested in reporting information received a tool for viewing standard reports and for creating their own specialized reports.
References 1. Ah-Soon, C., Vezzosi, P., Mazoue, D.: Universe Design with SAP Business Objects BI: The Comprehensive Guide. SAP Press, Quincy (2013) 2. Amaral, M., Polo Bardés, J., Carrera Pérez, D., Mohomed, I., Unuvar, M., Steinder, M.: Performance evaluation of microservices architectures using containers. In: Proceedings of the 14th International Symposium on Network Computing and Applications, Cambridge, pp. 27–34. IEEE (2015) 3. Ananyin, V.I., Zimin, K.V., Gimranov, R.D., Lugachev, M.I., Skripkin, K.G.: Real-time enterprise management in the conditions of digitalization. Bus. Inform. 13(1), 7–17 (2019) 4. Artamonov, Y., Vostokin, S.V.: Development of distributed data collection and analysis applications based on microservice architecture. Proc. Samara Sci. Center Russ. Acad. Sci. 18(4–4), 688–693 (2016) 5. Balalaie, A., Heydarnoori, A., Jamshidi, P., Tamburri, D.A., Lynn, T.: Microservices migration patterns. Softw. Pract. Exp. 48(11), 2019–2042 (2015) 6. Doljenko, A., Shpolianskaya, I., Glushenko, S.: Fuzzy production network model for quality assessment of an information system based on microservices. Bus. Inform. 14(4), 36–46 (2020) 7. Fernández-Villamor, J.I., Iglesias, C.Á, Garijo, M.: Microservices - lightweight service descriptions for REST architectural style. In: Filipe, J., Fred, A., Sharp, B. (eds.) Proceedings of the International Conference on Agents and Artificial Intelligence, vol. 1, pp. 576–579. Artificial Intelligence, Valencia (2010) 8. Guseva, E.S., Kruglov, D.V.: The role of information technologies in the process of forming financial information of integrated reporting. Mod. Probl. Sci. Educ. 6 (2014). https://www. science-education.ru/ru/article/view?id=15713. Accessed 04 July 2021 9. Makarov, V., Bakhtizin, A., Beklaryan, G.: Developing digital twins for production enterprises. Bus. Inform. 13(4), 7–16 (2019) 10. Malyzhenkov, P., Ivanova, M.: An architectural approach to IT–business alignment. Bus. Inform. 3(41), 56–64 (2017) 11. Mitrovic, S.: Specifics of the integration of Business Intelligence and Big Data technologies in the processes of economic analysis. Bus. Inform. 4(42), 40–46 (2017) 12. Shitko, A.M.: Designing a microservice architecture of software. Proc. BSTU Ser. 3 Phys. Math. Sci. Comput. Sci. 9(200), 122–125 (2017)
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13. Shomnikov, I.: SAP Data Services 4.x Cookbook. Packt Publishing Ltd., Birmingham (2015) 14. Toffetti, G., Brunner, S., Blöchlinger, M., Dudouet, F., Edmonds, A.: An architecture for self-managing microservices. In Munteanu, V.I., Forti¸s, T.-F. (eds.) Proceedings of the 1st International Workshop on Automated Incident Management in Cloud, pp. 19–24. ACM, New York (2015) 15. Villamizar, M., et al.: Infrastructure cost comparison of running web applications in the cloud using AWS lambda and monolithic and microservice architectures. In Varela, C., Castro, H., Barrios, C.J. (eds.) Proceedings of the 16th IEEE/ACM International Symposium on Cluster, Cloud and Grid Computing (CCGrid), (16158850). IEEE, New Jersey (2016)
The Need to Introduce Digital Technologies in Logistics Companies M. V. Bukhtoyarova(B) State University of Management, Moscow, Russia
Abstract. The contribution deals with issues related to the development of logistics using digital methods. It is noted that at the present stage it is necessary to use the latest software tools in the provision of logistics services. The issue related to the creation of its own digital platform is highlighted as the basis for the strategy of improving the activities of a logistics company. To achieve this goal, such processes as the creation of an Android Uber-libo application, the integration of smart warehouses into the supply chain, and the use of artificial intelligence are highlighted. The modern service that a logistics company should provide at this stage of the development of the logistics market is impossible without the use of advanced digital technologies. Otherwise, the logistics company may be uncompetitive compared to other companies. Keywords: Artificial intelligence · Logistics service · Mobile applications · Digital technologies
1 Introduction The spread of COVID-19 seriously affected both the Russian and the global economy as a whole. The current situation caused serious damage to global logistics and supply chains. The crisis caused an imbalance in cargo flows associated with changes in demand and the introduction of restrictions. The main logistics trends were the decline in cargo traffic both at the global and Russian levels. In the conditions of quarantine, the rules of the game for representatives of the logistics market stopped to be clear [4]. The losses of many Russian industries from the epidemic, according to the company InfraONE, will amount to almost 507 billion rubles by the middle of 2021. At the same time, the losses for the share of the transport industry will amount to about half—230.3 billion rubles [2]. Understanding the complexity of the situation caused by the pandemic and the pattern of losses incurred by logistics companies, the managers of these companies at this stage of their activities should think about the trends for improvement in the logistics market. The company’s management can be considered effective when potential development opportunities are implemented. Such opportunities should include, first of all, the use of the latest digital technologies in the process of providing logistics services. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 395–401, 2022. https://doi.org/10.1007/978-3-030-94873-3_49
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2 Methodology Analyzing the trends emerging in the modern logistics market, it is necessary to consider the creation of its own digital platform as the basis for the strategic development of a logistics company. In order to achieve this goal, the processes of optimizing the available logistics tools should be considered. These include the creation of an Android Uberlike application, the integration of smart warehouses into the supply chain, the use of Artificial Intelligence and, as a result, the introduction into the international ecosystem in the future. A logistics company should provide a modern service. This is possible today with the use of advanced digital technologies. The integration of smart warehouses into the supply chain and the use of artificial intelligence are factors for survival in the competitive struggle and for winning a worthy place in the global logistics market. It is impossible not to note the convenience of using mobile logistics applications. There are not many similar applications in the logistics market yet. If we compare it with similar programs for food delivery or ordering a taxi, then this gap in the logistics service becomes obvious. Such mobile applications can significantly simplify the process of finding new orders and the process of interacting with customers. The mobile logistics application will be in demand by both shippers and carriers. Modern logistics is still a long and energy-intensive process. This includes filling out a bunch of papers, collecting documents, writing emails, etc. But it is ridiculous to tolerate such processes in the 21st century to perform a simple action: to deliver goods from point A to point B. A logistics mobile application will be very useful if it reduces the time spent on these manipulations. In the logistics industry, where a lot of time is spent on phone calls, attempts to book cargo, the service provided by a mobile application should quickly be accustomed.
3 Results A smart warehouse is the implementation of solutions for the digitalization of technological processes. The use of a smart warehouse will improve working conditions, exclude a person from a dangerous area, get rid of monotonous work, reduce overhead costs, save on wages, increase labor productivity, enable the possibility of night shifts and weekends, increase the accuracy of processes, modernize production [1]. With the use of smart warehouses, the productivity of packaging and acceptance of incoming goods, acceptance into the stock, selection and shipment for further distribution will increase. Along with the integration of smart warehouses, it is important for the management to understand the company’s position in the global logistics structure. The Russian warehouse real estate market reached saturation. Capacity building—the construction of additional warehouses stoped to be profitable, since the increase in spaces only increases indirect costs due to unused storage space. In such a situation, it is necessary to switch to new models of planning logistics systems that take into account the provision of warehouse services, which allow using the warehouse space as efficiently as possible. The most promising at the present stage is the transition from supply chain logistics to Service Response Logistics, which is accompanied by the company’s joining the global
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logistics grid. In Western logistics publications, the terms uberization (Uber—international taxi service) and public warehousing—aggregation of resources and organization of public warehouses are increasingly used for this phenomenon. New opportunities are opening up for companies to reduce warehouse logistics costs and optimize the supply chains by expanding the logistics system—the emergence of new resources due to the connection of new participants to the global network. It is necessary to note the importance of using artificial intelligence (AI) to optimize supply chains. With the help of AI, it becomes possible to collect and analyze data from several connected systems in real time to obtain more complete information about the work, which is very useful for decision makers [10]. The use of AI allows to analyze huge amounts of data in real time, reduce the gaps between supply and demand, and develop supply chain management strategies. It should be noted that modern information technologies complement human abilities, eliminate routine work and, therefore, allow employees of logistics companies to move on to more important tasks [10]. An important role in the work of logistics companies is assigned to the creation of Android Uber-like applications for cargo transportations. Logistics application development capabilities are a very popular service. This application simplifies the entire process of finding new orders and interacting with the client. There are still few similar applications on the logistics market, especially compared to similar programs for food delivery or taxi ordering. This means that a logistics company has the opportunity to launch a successful startup without the risk of facing tough competition. Companies with their own fleets realized the importance of implementing digital solutions, but this is not enough to satisfy all interested parties. There are still not enough on-demand applications without intermediaries, such as the American Uber Freight application, although they are extremely in demand.
4 Discussion Before discussing how to develop an application like Uber for the logistics business, you should analyze the advantages of these services. Cargo transportations are a complex, multi-stage and lengthy process [5]. However, the introduction of innovative digital solutions will simplify and optimize this process. A road transport company receives a powerful tool that allows to manage the process of transportation and delivery of goods from one point to another. Mobile applications for logistics provide a constant exchange of data in real time between each participant in the cargo delivery process [6]. If you need to make some changes to the order (for example, a forced route change, an unexpected delay, etc.), then all interested parties will know about the change immediately. Transparency is a key requirement for any successful modern business. Customers want to know where their cargo is located at any given time. Digital programs have special functions focused on tracking the movement of selected objects, so that a logistics company can offer a high standard of work, providing its customers with accurate data on the status of the order [9]. If we talk about mobile applications for on-demand logistics, such as Uber Freight, the situation is even simpler, and intermediaries are no longer an indispensable condition.
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In this case, representatives of a freight forwarding company resort to a digital platform to independently search for the vehicle they need [7]. They also get the opportunity to interact with the selected cargo carrier and track its movement without interference. Thus, the transparency of the processes is ensured in any case, regardless of the type of logistics application. Creating an Uber-like application for a logistics company makes it possible to constantly stay in touch with the client. A mobile application like Uber for cargo transportation allows to: – – – – – – –
to quickly analyze the database of available vehicles; to optimize routes; to improve graphics; to minimize loading time; to warn about traffic jams and road repairs; to offer other ways to speed up the delivery of goods; to simplify document management.
Mobile applications for logistics optimize cargo transportations and thereby increase the efficiency of each participant in the process. There is no unnecessary document flow, inefficient calls, nothing slows down the delivery of goods. The mentioned advantages contribute to an increase in the profit received by the logistics company. Due to the optimization of internal business processes, the speed and quality of order execution increases, which means that the needs of customers are met more fully and efficiently [3]. Using a digital service such as Uber Freight, carriers can find orders faster and fulfill them better, and, consequently, receive additional profit. The greatest experience from the work of Uber, which is known as a reliable application for ordering a taxi, works almost all over the world. However, a few years ago, the company that created Uber decided to expand its sphere of influence and created a mobile application for logistics on request of Uber Freight. The new digital service appeared in 2017 and immediately interested potential users. Moreover, the role of intermediaries is performed by the Uber Freight application itself. This service takes on the most unpleasant part of the driver’s work, namely the search for appropriate orders. Uber Freight is similar to a regular taxi service: customers (shippers) place their orders, and truck drivers (cargo carriers) choose those that suit them. The order card contains all the information necessary for the carrier: data on the location of the cargo and the destination, the offered price, approximate delivery times, etc. The Uber Freight platform was initially available only in the United States. However, two years later, in 2019, the company announced its entry into the European market. Thus, Uber joined the ranks of other European mobile logistics applications and made them a dangerous competition. The advantage of this non-standard Uber Freight service is, first of all, that it is aimed at both groups of users with whom it interacts (carriers and shippers), and offers each of them its own unique advantages. In particular, the carrier receives a clear pricing system and fast payment of the order. Uber Freight is fighting its competitors with flexible prices. These competitors include digital services of such wellknown companies as Echo Global Logistics Inc. and C. H. Robinson Worldwide Inc. (and other popular mobile applications for logistics and transportation). The principle of competition for Uber Freight is simple: firstly, you should reduce prices and, thereby,
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increase your share of the logistics market, and then, when competition practically disappears, you should focus on getting high profits. This strategy, which Uber Freight choose, is very effective. For customers, a fast and convenient service for interaction is also an important factor when choosing a cargo carrier company. The client wants to have an idea of the exact location of the truck delivering his cargo. Such a function in the logistics application will help the client to monitor the movement of cargo in real time. It will also be very useful if the shipper can view the entire history of completed orders. Another very important service of the logistics application is the ability to make online payments. Finally, it should be noted that it is necessary to supplement the logistics application with a service for informing the client about the location of the cargo at a certain time, about the delivery date and about additional services that the logistics company can provide during the delivery time. No less important is the service of a logistics application for drivers in terms of building an ideal route. For this purpose, it is necessary to take into account many different factors: the optimal delivery time, the ability to avoid traffic jams, confirmation of order fulfillment, etc. The fact of cargo delivery can be confirmed in the form of photo and video recordings with the ability to send relevant materials to the client. To improve internal business processes, it is necessary to develop a special logistics application in which the control panel will contain a list of all orders with their status (new, in progress, completed, etc.). The manager of the logistics form will be able to see information about the sender and the carrier who accepted the order. It is extremely important for the shipper to take care of the safety of the cargo. In this case, special tracking devices built into smartphones come to the rescue, as well as technologies such as electronic seals that notify the interested party in case of the container damage. An important task is to ensure the safety of drivers. To do this, you should resort to some fairly simple functions of the mobile application for drivers, which include geo-blocking based on, for example, GPS. The essence is simple: an invisible perimeter is set along the route of the cargo carrier. If the driver leaves the specified area, an alarm is triggered. Finally, an urgent task for the organization of cargo transportation is to ensure the security of the logistics application. Improvement of internal processes and processes related to the provision of logistics services that are extremely necessary and important for a logistics company. Customers of logistics companies consider reliability, ease of opening an order, urgency and ensuring the safety of cargo as priority areas when choosing a cargo carrier. Effective planning and constant monitoring are certainly necessary in logistics companies-both in the short and long term. For logistics companies, it is important to focus not only on finance, but also on key performance indicators. Timely delivery is the most important indicator of transport logistics, as it directly affects the satisfaction of the customer’s needs. The use of electronic document management allows the logistics company and the recipient of the cargo to process all the necessary documents as quickly as possible. The importance of this factor is obvious: when transporting over significant distances, it takes a large amount of time to return the documents to the sender. Incorrect organization of processes will lead to an increase in the settlement time between the logistics company
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and the customer, which as a result will affect the financial position of the logistics company and the availability of financial resources for its activities. I would like to note the advantages of the implementation of modern digital technologies in the activities of logistics companies: – saving time and resources; – access to special settings (they allow to provide different groups of users with different levels of access to information); – large customer base; – a powerful marketing tool that helps to have the right impact on customers; – a significant increase in profit.
5 Conclusion The creation of a digital logistics business platform should be attributed to the strategic development of a logistics company. This will determine the planning, creation of logistics of unified information systems, digital technology infrastructure, which, in turn, will lead to a significant (at times) increase in business benefits due to significantly more complete automation of business processes and the introduction of new digital technologies that significantly change business processes and reduce the number of employees. How should a logistics company launch a digital sales ecosystem: 1. Define goals and do not introduce digital products just because it have to be done, but clearly understand what they will be used for by both the company and its customers. 2. Develop an online showcase that will turn site visitors into potential buyers. This can be done with the power of a full-time information technology specialist or contact contractors. 3. Combine all the digital tools on the site into a single system. This will avoid confusion with the data and significantly save time. 4. Work in the system and closely monitor the process of remote transactions. Constant monitoring will help quickly respond to requests and any changes that occur during the manager’s communication with the client, and coordinate the orders finalization process. When implementing digital transformations, an error may occur, which is that the needs of employees in the company are not taken into account. Unilateral decisions and changes in daily activities, especially those related to the tools of employees, lead to a decrease in efficiency. Without a clear understanding of what digital transformation requires, the company’s employees return to old habits and turn to the old models and software. To prevent this result, it is necessary to treat employees as customers, applying an approach to them that allows them to use their abilities and talents, and thereby ensuring a high level of satisfaction. Communication in departments is an important success factor for the digital transformation of internal processes. During the digital transformation of the company’s activities, ignoring possible risks [8] and not taking them into account is the main mistake of many managers. Instead of blindly following a
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long-term digitalization plan, successful companies use a flexible approach. Each change is tested, analyzed and evaluated before being implemented throughout the company. This approach ensures the rapid implementation of the planned operational strategy, while maintaining flexibility in relation to emerging problems and risks. The digital transformation of the logistics company’s activities is not a destination, but a path from oblivion to a successful and profitable future. The time for digital conversion is running out. Discoverers are rapidly taking over markets, and those in charge need to rethink their strategies in order to stay in business.
References 1. Asaul, A., Malygin, I., Komashinskiy, V.: The project of intellectual multimodal transport system. Transp. Res. Procedia 20, 25–30 (2017) 2. InfraOne: Infrastructure and the pandemic (2021). https://infraone.ru/sites/default/files/analit ika/2020/scenarii_poter_i_vostanovleniya_otrasli_infraone_research.pdf. Accessed 04 Aug 2021 3. Silaev, A.A., Kuternin, M.I., Parshikova, G.Y., Perfilyev, A.A.: Some aspects of forecasting and evaluating the effectiveness of investments in the system of management of oil production and refining industry in the region. In: Popkova, E.G., Sergi, B.S. (eds.) ISC 2019. LNNS, vol. 129, pp. 1653–1663. Springer, Cham (2020). https://doi.org/10.1007/978-3-030-479459_176 4. Kuznetsov, A.L., Kirichenko, A.V., Shcherbakova-Slyusarenko, V.N.: The directions of the transport industry digitalization. Vestnik Gosudarstvennogo Universiteta Morskogo i Rechnogo Flota Imeni Admirala S.O. Makarova 6(52), 1179–1190 (2018) 5. Larin, O.N., Bush, Yu.D.: The main priorities of digitalization in transport logistics. Russia Trends Prospects Dev. 14–1, 525–527 (2019) 6. Pustokhina, I., Rodkina, T.: RFID technology in Russian logistics: real achievements and challenges. Russ. Logist. J. 1(2), 48–53 (2016) 7. Rodkina, T.A.: Digital logistics: a new model or an old cliche? In: Proceedings of the XV International Scientific and Practical Conference Logistics: Current Development Trends, pp. 62–66. Admiral S.O. Makarov State University of the Sea and River Fleet, Saint Petersburg (2016) 8. Silaev, A., Bukhtoyarova, M., Parshikova, G., Atoyan, S.: Features of artificial intelligence simulation models and risks when using them. In: Popkova, E.G., Sergi, B.S. (eds.) ISC Conference - Volgograd 2020. AISC, vol. 1100, pp. 394–403. Springer, Cham (2020). https:// doi.org/10.1007/978-3-030-39319-9_45 9. Vasilenok, V.L., Kruglova, A.I., Aleksashkina, E.I., Negreeva, V.V., Plastunova, S.A.: The main trends of digital logistics. Sci. J. NIU ITMO Ser. Econ. Environ. Manag. 1(40), 69–78 (2020) 10. Zaitsev, A.V., Bukhtoyarova, M.V., Atoyan, S.V., Mokrova, N.V.: Robotization in the economy. In: Popkova, E.G., Ostrovskaya, V.N., Bogoviz, A.V. (eds.) Socio-economic Systems: Paradigms for the Future. SSDC, vol. 314, pp. 215–225. Springer, Cham (2021). https://doi. org/10.1007/978-3-030-56433-9_23
The Optimization of Compensation Packages in Post-pandemic Economic Environment N. I. Arkhipova(B) , S. V. Nazaikinsky, and O. L. Sedova Russian State University for the Humanities, Moscow, Russia
Abstract. The purpose of the study is to identify the main trends in the optimization of compensation packages for personnel in Russian companies in current economic environment. To achieve the objective we defined the following main tasks of the research: to identify the main factors of the influence of the pandemic on compensation policy of organizations, research into practices of Russian companies for changing compensation packages for personnel; identifying the main trends in the optimization of compensation packages in post-pandemic environment. As the result of the analysis and generalization of research data from international and Russian consulting companies, HR expert opinions on the research topic, the experience of Russian companies and surveys the authors defined the main trends in transformation of compensation packages in current economic environment. Keywords: Compensation package · Employees · Optimization · Options
1 Introduction In current economic environment one of the top priority tasks is the optimization of the labor costs and namely compensation packages for the employees. Research into current trends in HR nowadays was carried out by international consulting company Deloitte. According to the results of the survey 10 top trends in HR were defined, typical of all the companies all over the world. The representatives of Russian HR companies identified the urgency for changes in compensation strategies. In spite of the awareness of the importance of anti-crisis compensation strategy, in most companies the professional readiness for work is very low in the new environment (Table 1). The urgency for the transformation of compensation packages is due to both internal and external factors. Lay-off in the economic activity in April-July 2020, shifting to remote work for the most employees in many companies led to economic and social disruption. In this environment all the organizations in Russia had to face cost optimization, and cost cutting for the workforce as well [3].
© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 402–408, 2022. https://doi.org/10.1007/978-3-030-94873-3_50
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Table 1. Rating of HR trends in Russian companies Trends in HR management The importance of the trend for the company %
Readiness for work in new environment %
Compensation strategies
82
49
Participation
81
49
Work force planning
79
49
Well-being as a part of management
79
44
Knowledge management
76
42
HR evolution
75
47
More than retraining
68
43
Ethics and prospects
67
43
Super-teams
67
40
Beyond generations staff
67
36
Source: authors on the results the Deloitte survey [6]
2 Methodology The methodological basis of the research are such general scientific research methods as induction, deduction, system approach, synthesis, methods of logical and comparative analysis, expert assessments, surveys, and questionnaires. Recently, the problem of optimizing labor costs has become the subject of both theoretical and empirical research [1, 2, 4, 8, 10, 12, 14]. The study analyzes the results of research conducted by international and domestic consulting companies, expert opinions, and experience of domestic companies on optimizing labor costs. The authors have analyzed the research results of the impact of the pandemic on the transformation of organization’s compensation policies. An empirical study on the list of preferred options of the employee compensation package in the post-pandemic environment was conducted using an online questionnaire. The survey involved 560 respondents – employees of a large enterprise providing information and communication services. Statistical methods were used to process the results of the research. The research uses tabular methods of data visualization. Generalization and analysis of the obtained theoretical and empirical data allowed the authors to formulate the main trends in transformation of compensation packages of employees of organizations in post-pandemic environment. The work is based on the use of concepts and hypotheses presented in the works of domestic and foreign researchers, in particular, on the concept of human capital, the concept of well-being, the theory of generations, etc.
3 Results Before the outbreak of the pandemic most of the companies planned to expand fringe benefits in order to become more competitive in the job market. According to the survey
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for HR executives in Russia held by Coleman Services 1n 2018, 28% of the companies planned to reinvent the fringe benefits in order to extend the list of benefits [5]. In Russia the most common benefits listed were: medical insurance, allowance for lunches, mobile communication, sports facilities, transport etc. The medical insurance was listed in 84% of the compensation packages [7]. Options and cost of compensation package was typical for all the employees in 56% of the companies, in 26% it depended on the position, labor grade or skill-category of the employee, in 11% – on the production area or on corporate business unit; in 7% – on length of service [5]. Economic crisis and the need to cut labor costs determined the development and implementation of the anti-crisis compensation policy in Russia [11]. In most companies within Russia the compensation package was reinvented during the pandemic (Table 2). Table 2. The most common options in compensation package in Russian companies Options
2018
2021
Corporate training
49%
47%
Corporate events
53%
43%
Compensation of mobile communication
42%
33%
Possibility to get discount for services or goods of the company
37%
29%
Medical insurance
20%
14%
Free lunches (allowance for food)
18%
13%
Allowance for sports facilities
8%
5%
Nothing
9%
11%
Source: authors on the results of Research Centre of SuperJob website [13]
According to the above table there is a decrease in all the options in compensation package. The number of the companies who paid for corporate events for their employees has decreased by 10%, mobile communication – by 9%, medical insurance – by 6%. Moreover, the number of companies that stopped offering compensation packages for their employees altogether has grown from 9% to 11%. It is to be noted that the significance of different options of the compensation package has changed for both employers and employees. For example, the number of the employers providing medical insurance has decreased. One of the possible reasons is that insurance companies have refused to pay for medical services, connected with the outbreak of COVID-19. Another reason is the refusal of sports clubs, swimming pools and other sports facilities to serve their customers due to unprofitableness, thus the companies excluded these options from their compensation packages. The top requested option nowadays is corporate training, reskilling, financed by the company. Both employers and employees are aware of the importance of professional qualifications and skills, that raises their competitiveness at the job market and their productivity and efficiency [9]. Most Russian companies has differentiated the compensation package for their employers according to their work schedule not only to their position in the company or job title (Table 3).
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Table 3. Compensation package for the employees with different work status Options
Traditional work status
Remote work due to coronavirus
Regular remote work
Corporate training
33%
15%
36%
Compensation of 28% mobile communication
27%
24%
Corporate events
28%
12%
22%
Possibility to get 19% discount for services or goods of the company
13%
22%
Medical insurance
14%
4%
5%
Free lunches (allowance for food)
14%
11%
5%
Allowance for sports facilities
4%
3%
1%
25%
44%
34%
Nothing
Source: authors based on [13]
According to the above table compensation package for remote workers has less options. Moreover, 34% of the respondents noted that compensation package for employees is nonexistent. In December 2020 the Chair of Organization Development of Russian State University for the Humanities held on-line opinion research at a large-scale IT enterprise with the view to get the data about most required options, 560 employees were polled (Table 4). Table 4. Preferred options of the compensation package Options
%
Medical insurance
39
Free on-line consultations with psychologist
30
Additional welfare payments beyond legislation
50
Compensation of proactive training
60
Granting expanded corporate benefits (support and resources for family members, not only 50 for staff) Financial aid for family members (staff) who suffered from COVID-19
45
Allowance for sports facilities
25
Granting self-selected options to the employee
60 (continued)
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Options
%
Corporate pension scheme
10
Corporate mortgage scheme
10
Source: authors
According to the Table 4, the most requested options in the current environment are those, that compensate for daily expenses and help to save family budget, e.g. Additional welfare payments (56%), compensation of training (60%), granting expanded corporate benefits (support and resources for family members, not only for staff) (50%). Thus, options aimed at long-term prospects, e.g. corporate pension schemes are less demanded, that is due to economic uncertainty and lack of income security. Most respondents (60%) point out the importance of granting self-selected options to the employee.
4 Discussion As we can see from the survey held by the authors under this research we can identify the main trends in the transformation of compensation packages in domestic enterprises under pandemic economic environment. First, downward trends in the number of options under compensation packages. Thereby it should be noted not only decline in value of the compensation package on the whole, but decline in value of certain options. Second, change in importance of certain options of the compensation package for both employers and employees. The most requested options are those aimed at compensation for daily expenses of the employee and family members, options, aimed at long-term prospects are less demanded. The top requested option is compensation for training and reskilling. Third, changes in the approach to forming compensation packages for employees with different work status. Compensational policy is aimed mainly at the staff with traditional work status. Fourth, meeting the needs of any particular employee in every particular company is the most important when forming compensation package, providing self-selected options.
5 Conclusion The compensation policy is traditionally considered as a factor of increasing the organization’s competitiveness in the labor market. In the pre-pandemic period, in the conditions of stable economic development, most domestic organizations had a trend of an annual increase in the composition and cost of employee compensation packages. In the pandemic environment HR management faces the task of optimization of labor costs. Thus one of the main trends is the development and implementation of anti-crisis compensation policy. This determined the need for transformation of compensation packages for employees with a view of decreasing the value along with boosting their efficiency and productivity.
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The main directions of reducing the organization’s expenses on the compensation policy were the reduction of the total cost of compensation packages and its individual options, a decrease in the number of options in the structure of compensation packages, and refusal to provide compensation packages to employees with alternative forms of employment. A feature of the modern anti-crisis compensation policy is the employer’s orientation to compensate employees’ current expenses, which contributes to save their family finances and stabilize the economic situation. In order to improve the efficiency of employees’ professional activity, the main emphasis in the structure of compensation packages is placed on options that contribute to the updating of their qualifications and an increase in labor productivity, for example, payment for training at the employer’s expense. The only possible way to meet this objective is the individual approach to options taking into account the preferences of the employees and their contribution to overall performance of the company. Thus, only an integrated approach to the transformation of compensation packages for employees in the post-pandemic conditions allows companies to optimize personnel costs and ensure the efficiency of their labor activity.
References 1. Aleshkova, D.V., Akopyan, D.A., Kalenskaya, N.V., Khusnutdinov, R.N.: Motivation tools in entrepreneurial networks of strategic alliances. In: Ashmarina, S.I., Mantulenko, V.V. (eds.) IPM 2020. LNNS, vol. 161, pp. 533–537. Springer, Cham (2021). https://doi.org/10.1007/ 978-3-030-60926-9_67 2. Arkhipova, N.I., Nazaikinsky, S.V., Sedova, O.L.: Management of personnel health and wellbeing in the context of distance employment. In: Ashmarina, S.I., Mantulenko, V.V. (eds.) IPM 2020. LNNS, vol. 161, pp. 129–134. Springer, Cham (2021). https://doi.org/10.1007/ 978-3-030-60926-9_18 3. Arkhipova, N.I.: Current state and prospects for the development of the distance employment. RSUH/RGGU Bull. Ser. Econ. Manag. Law 4, 8–21 (2020). https://doi.org/10.28995/20736304-2020-4-8-21 4. Borisova, V.V., Panfilova, E.E., Raza, H.: Labor market transformation in the context of the digitalization of the economy. In: Ashmarina, S.I., Mantulenko, V.V. (eds.) IPM 2020. LNNS, vol. 161, pp. 265–274. Springer, Cham (2021). https://doi.org/10.1007/978-3-03060926-9_34 5. Coleman Services: Incentives to motivate blue-collar workers (2019). https://www.coleman. ru/publikatsii/kakie-lgoty-pomogut-zavodam-zamotivirovat-sinih-vo. Accessed 11 Apr 2021 6. Deloitte: Global Human Capital Trends – 2020 (2021). https://www2.deloitte.com/kz/ ru/pages/human-capital/articles/human-capital-trends_msm_moved.htm. Accessed 10 Apr 2021 7. HeadHunter: Social benefits and motivation pezyltaty. Results of the survey (2020). https://hhcdn.ru/file/16880633.pdf. Accessed 11 Apr 2021 8. Mitrofanova, E.A., Mitrofanova, A.E., Margarov, G.I.: Organizational and economic mechanism of staff turnover management. In: Ashmarina, S.I., Mantulenko, V.V. (eds.) IPM 2020. LNNS, vol. 161, pp. 590–598. Springer, Cham (2021). https://doi.org/10.1007/978-3-03060926-9_75 9. Nazaikinskii, S.V.: Employee well-being management. Russian experience, science and art of management. Bull. Inst. Econ. Manag. Law Russ. State Univ. Humanit. 1(2), 22–31 (2020)
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10. Patrusova, A.M., Kharitonova, P.V., Vakhrusheva, M.Y.: Anti-crisis HR management program as a measure of retaining specialists in organizations. In: Ashmarina, S.I., Mantulenko, V.V. (eds.) IPM 2020. LNNS, vol. 161, pp. 608–613. Springer, Cham (2021). https://doi.org/10. 1007/978-3-030-60926-9_77 11. Sedova, O.L.: Optimization of the personnel costs in conditions of remote employment. RSUH/RGGU Bull. Econ. Manag. Law Ser. 4, 22–30 (2020). https://doi.org/10.28995/20736304-2020-4-22-30 12. Sidorov, A.A., Kudinova, G.E., Rozenberg, A.G.: Motivating the staff innovation activity for sustainable development. In: Ashmarina, S.I., Mantulenko, V.V. (eds.) IPM 2020. LNNS, vol. 161, pp. 477–484. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-60926-9_61 13. SuperJob: Compensation packages slimmed down (2021). https://www.superjob.ru/research/ articles/112689/kompensacionnye-pakety-pohudeli/. Accessed 10 Apr 2021 14. Suvalova, T.V., Troitskiy, A.V., Zhaxybayeva, G.S.: Evolution of the labor market: challenges of the millennial generation. In: Ashmarina, S.I., Mantulenko, V.V. (eds.) IPM 2020. LNNS, vol. 161, pp. 77–84. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-60926-9_11
Intellectual Capital Management in High-Tech Project-Oriented Companies Under Dizitalization M. V. Bogdanova(B) and A. A. Parshintsev(B) State University of Management, Moscow, Russia
Abstract. The contribution provides scientific and practical recommendations on the management of intellectual capital in high-tech project-oriented companies in the conditions of digitalization of the economy. It is suggested to create an association of high-tech project-oriented companies for intellectual capital management, whose competence should include ensuring an effective exchange of experience of high-tech project-oriented companies, in particular, on the basis of an online platform for bidding in the interests of high-tech project-oriented companies and employee training. Special attention is paid to the analysis of domestic and foreign experience in intellectual capital management, as well as to the justification of the choice of a systematic approach as the main methodological approach to intellectual capital management in high-tech project-oriented companies. Specific principles of intellectual capital management in high-tech project-oriented companies at the macro, meso and micro levels were also developed. Keywords: High-tech sectors of the economy · Intellectual capital · Management · Project-oriented companies · Systematic approach
1 Introduction In the modern world, in the conditions of innovative development of the economy and informatization of society, the most important driver of the socio-economic development of the country, ensuring its competitive advantages on the world stage, is the knowledge and intellectual abilities of the population, which together make up the intellectual capital of the country [1]. According to some estimates, project-oriented forms of economic activity account for more than 21% of the world’s GDP. Moreover, these estimates take into account exclusively activities related to the reproduction and creation of new capital goods, and do not take into account activities for the creation of new products, which makes these estimates greatly underestimated. The introduction of projects into the activities of companies recently became a natural trend, taking into account the modern realities of the functioning of the country’s economy. This leads to an increase in the number of project-oriented companies and an increase in the influence of these companies on the welfare of the country as a whole. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 409–414, 2022. https://doi.org/10.1007/978-3-030-94873-3_51
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The highest level of diversification of economic entities takes place in high-tech sectors of the economy. In accordance with regulatory legal acts, these include the aviation industry, engine building, the rocket and space industry, the nuclear power industry, the shipbuilding industry, the electronic and radio-electronic industry. In the Russian Federation, these activities account for more than 33% of GDP. Thus, effective management of the intellectual capital development of high-tech project-oriented companies is the most important strategic task of any state. In this regard, the purpose of the study is to develop scientific and practical recommendations for managing intellectual capital in high-tech project-oriented companies in the conditions of digital transformation of the economy. Within the framework of the study, high-tech project-oriented companies will be understood as companies that carry out their activities in high-tech sectors of the economy with the direct implementation of high-cost research activities for the production of products, which include more than 50% of high-tech products, and carry out the development and launch of innovations through projects. Intellectual capital in a high-tech project-oriented company will be understood as a combination of human, information and reputation capital and the capital of intellectual labor achievements [2].
2 Methodology The results of theoretical and empirical studies of the key characteristics of intellectual capital in high-tech project-oriented companies predetermined the choice of a systematic approach as the main methodological approach to managing intellectual capital in high-tech project-oriented companies. The system approach is based on the idea that everything is interconnected and interdependent. That is, the system consists of related and dependent elements that interact to form a single whole. A systematic approach to the management of intellectual capital in high-tech project-oriented companies at the national level involves the representation of intellectual capital in high-tech projectoriented companies as a system with subsystems that include the intellectual capital of the regions, which, in turn, is a set of intellectual capital of individual high-tech projectoriented companies, structured on human, information and reputation capital and the capital of intellectual labor achievements [6]. In relation to intellectual capital at the micro level, a system approach is to manage the intellectual capital of a high-tech project-oriented company, based on the representation of intellectual capital as a set of components of human, information and reputation capital and the capital of intellectual labor achievements with complex inter-component, interelement relationships and interdependencies between components, elements, external factors and the system as a whole. Thus, it is assumed to apply a systematic approach to the management of intellectual capital both within a single high-tech company, and their totality at the regional and national levels. In general, a systematic approach to intellectual capital management in high-tech project-oriented companies is a sequence of certain procedures: 1. Defining the goals of the system. 2. Studying the key properties of the system and identifying its structure.
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3. Analysis of the key characteristics of the system and its structure. 4. Analysis of the relationships between elements, components, external factors and the system as a whole. 5. Modeling and forecasting of a system based on the study of its behavior. 6. Identification of information and development of solutions for system management. The application of a systematic approach to intellectual capital management in a high-tech project-oriented company allows to achieve the following results: – to develop optimal theoretical and practical models for assessing the properties of intellectual capital; – to perform the decomposition of the intellectual capital system into relatively separate components, which allows to more effectively cope with the assigned management tasks; – to develop an optimal strategy for managing the intellectual capital system, taking into account the factors that determine it; – to develop programs for effective management of components of the intellectual capital system to achieve the set goals. Taking into account the peculiarities of the economic category of intellectual capital in high-tech project-oriented companies, in order to improve the efficiency of management, a systematic approach to intellectual capital management should be supplemented with innovative, logical-structural, marketing, information, process and risk-oriented approaches to management [8, 10].
3 Results As the analysis showed, in order to increase the innovativeness of the development of high-tech project-oriented companies, a set of state measures is needed aimed at investment, tax, resource, information, institutional, antimonopoly, social and export-import policy of the country. As part of the investment policy, it is necessary to implement targeted measures that stimulate business to finance high-tech sectors of the economy. The tax policy should be aimed at providing benefits to innovative and active business in terms of providing tax benefits, tax deductions, investment loans, accelerated depreciation, patent window, which are widely used in foreign countries. As part of the antimonopoly policy, it is necessary to implement comprehensive measures to regulate unjustified price increases, as well as to create competitive conditions for high-tech companies. The state policy in terms of export-import regulation should include, firstly, stimulating export-import transactions from the point of view of creating an intellectual product through the use of benefits; secondly, supporting the export of high-tech products; thirdly, regulating import substitution by stimulating the creation of domestic intellectual products in industry. Social policy should be aimed at creating competitive conditions for attracting highly qualified workers to high-tech sectors of the economy. From the point of view of institutional policy, it can be suggested to form a new type of organizational structures in the interests of increasing the economic efficiency
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of intellectual capital management in high-tech project-oriented companies. Due to the specificity of the concept of the category of intellectual capital in project-oriented companies, there is currently no single specialized structure whose activities are aimed at improving the efficiency of intellectual capital management. However, due to the strategic importance of building up and effectively implementing intellectual capital at the regional and national level, a structure of this type is necessary. At the moment, various ministries and departments carry out certain functional aspects of intellectual capital management, in particular, in high-tech project-oriented companies. Thus, being the object of management of a large range of state bodies, difficulties arise in the effective management of intellectual capital in high-tech project-oriented companies in terms of its structuring and implementation. In order to improve the efficiency of intellectual capital management, it is suggested to create an Association of High-tech Project-oriented Companies for Intellectual Capital Management. The Association of High-tech Project-oriented Companies for Intellectual Capital Management (hereinafter referred to as the association) have to provide: – Organization of interaction and coordination of the activities of high-tech projectoriented companies in the field of building intellectual capital. – Development and calculation of performance indicators for the implementation of intellectual capital in high-tech project-oriented companies. – Implementation of innovative and investment activities in the interests of increasing intellectual capital in high-tech project-oriented companies. – Development of planned indicators for the implementation of intellectual capital in high-tech project-oriented companies. – Implementation of intermediary functions between high-tech project-oriented companies and other government agencies on the issues of building and implementing intellectual capital. – Activities for the effective commercialization of intellectual products of high-tech project-oriented companies. – Creation and maintenance of an online platform for bidding in the interests of hightech project-oriented companies in Russia, which means a highly effective tool for the interaction of counterparties, storage, processing and provision of information about intellectual products. Within the framework of the association, on the basis of an online platform, it is also planned to create an effective training center for the exchange of experience between high-tech project-oriented companies in the field of building and implementing intellectual capital, conducting advanced training of employees, problem seminars and lectures, conferences, symposiums and implementing interaction between companies on other issues related to intellectual capital [7].
4 Discussion The analysis of the world experience of intellectual capital management in high-tech project-oriented companies showed the need for a management strategy and a roadmap
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for the development of intellectual capital in the company. A special role in the management of intellectual capital is assigned to specialized organizational structures that contribute to the increase of intellectual capital in high-tech project-oriented companies. Knowledge management is an integral part of intellectual capital management in a broad sense. In a narrow sense, a number of scientists assume the identity of intellectual capital management and knowledge management [4]. In foreign practice, it is customary to distinguish four basic concepts in the field of knowledge management: the concept of a learning organization; the model of dynamic transformation of knowledge, the process model of knowledge creation and the concept of intellectual capital [9]. In the context of globalization, the problem of choosing a strategy from the point of view of knowledge sources, one way or another, is faced by every large projectoriented company. International experience shows that the strategy for creating various partnerships (associations) within the industry is more optimal in terms of potential opportunities for creating an intellectual product, as well as ensuring competitiveness in relation to companies not participating in the project. The implementation of the autonomy strategy is used to protect intellectual property. In the case of applying a strategy for creating partnerships, the “leverage effect” operates. An example in this case is “open innovations”. In this case, the leverage effect is that the company’s refusal to control intellectual property and innovations gives a greater economic effect than when implementing the autonomy strategy [9]. The exchange of experience within the framework of a partnership (association) can be carried out using online technologies, in particular, the organization of scientific and technical online events and an internal social network of professional communities.
5 Conclusion Summing up the study, it was concluded that the system of basic principles of a systematic approach to the management of intellectual capital of high-tech project-oriented companies is formed at the intersection of various subject areas. Among them are the legal protection of intellectual property and information, the economic foundations of investment and innovation activities, the economic foundations of industrial enterprises and the development of the national innovation environment. In this regard, specific principles of intellectual capital management in high-tech project-oriented companies at the macro and meso levels were identified. These include a focus on increasing the scientific and technical potential of high-tech project-oriented companies, rational integration of management mechanisms in order to achieve development goals, a focus on the maximum implementation of intellectual potential to strengthen the competitiveness of high-tech industries, an orientation of intellectual capital financing in high-tech project-oriented companies with an aim to create an intellectual product from each investment, as well as the investment nature of intellectual capital management. At the micro level, in order to achieve the company’s goals, in particular, profit maximization, intellectual capital management should be carried out through general and
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specific management functions, such as analysis, planning and forecasting, coordination, financial management, personnel management, organization, motivation, marketing management and control [3, 5].
References 1. Bilorus, T., Kornilova, I., Olikh, L., Firsova, S.: Methodological support for intellectual capital strategic management of the research organization. Probl. Perspect. Manage. 16(1), 292–308 (2018) 2. Bogdanova, M.V., Parshintsev, A.A.: Analysis of intellectual capital: sources of information and system of indicators. Sci. Rev. Ser. 1. Econ. Law 5, 80–90. (2020) 3. Bogdanova, M.V., Parshintseva, L.S.: Big data management in the modern economy: development of an integral indicator. Manage. Russ. Abroad 2, 3–9 (2020) 4. Costa, R.V., Santos, A.: Describing the process of creating an intellectual capital management framework: an interventionist case study. Knowl. Process. Manage. 27(1), 43–52 (2020) 5. Galeitzke, M., Steinhöfel, E., Orth, R., Kohl, H.: Intellectual capital-driven technology and innovation management. Int. J. Innov. Technol. Manage. 14(5), 1750028 (2017) 6. Lentjušenkova, O., Lapi¸na, I.: An integrated process-based approach to intellectual capital management. Bus. Process. Manag. J. 26(7), 1833–1850 (2020) 7. Lovtsov, D.A., Bogdanova, M.V., Loban, A.V.: Informatively-mathematical providing of legal regulation of the turnover of results of intellectual activity. Leg. Inf. 4, 15–23 (2018). https:// doi.org/10.21681/1994-1404-2018-4-15-23 8. Nikolaichuk, O., Arkhypenko, S., Matukova-Yaryha, D.: Intellectual capital management as a composite value of corporate enterprise in a global economy. Espacios 40(16) (2019) 9. Pradhan, B.B.: Review on intellectual capital management. Int. J. Psychosoc. Rehabil. 23(6), 541–546 (2019) 10. Salazar-Elena, J.C., Cancino, C.A., LópezLópez, A., Guimón de Ros, J.: Intellectual capital management and the innovation process: does one size fit all? In: Ferrer-Comalat, J., LinaresMustarós, S., Merigó, J., Kacprzyk, J. (eds.), Modelling and Simulation in Management Sciences. MS-18 2018. Advances in Intelligent Systems and Computing, vol. 894, pp. 1–12, Springer, Cham (2020). https://doi.org/10.1007/978-3-030-15413-4_1
Development of Risk Passport for Digital Financial Product O. I. Larina(B) and N. V. Moryzhenkova State University of Management, Moscow, Russian Federation [email protected]
Abstract. The contribution examines a complex problem that includes the issues of risk management, the use of new digital technologies in the financial sector and the development of the methodology for modeling an innovative product. The authors consider it necessary to take into account the specific risks inherent in the products in specific cases when building such a product. The research purpose is to develop the concept of forming a risk passport of a digital financial product, and the tasks are to determine the stages of its construction and testing on the example of modern payment products that are currently subject to digitalization to the maximum extent. The research methods were a systematic analysis of scientific literature, an analysis of current standards on risk management and other legal sources, an expert analysis of risks and the degree of their influence. The results of the study are the methodology proposed by the authors for building a risk passport of a digital financial product. Keywords: Cryptocurrencies · Digitalization · Payment systems · Risk management · Risks of a digital financial product
1 Introduction The development of digital technologies is transforming the activities of the financial sector. The innovative use of digital technologies in the provision of financial services is changing the models of interaction between consumers and financial service providers, and also helps to improve communication with consumers and increase their involvement, which has a positive impact on the availability of financial services and promotes competition. The digitalization of the financial market generates new risks both at the macro level and in the activities of organizations and consumers of financial services. This fact requires a timely response to new challenges. When forming a business model of a digital product and its implementation, it is also advisable to form a “passport” or a map of specific risks inherent in the product being developed. In this regard, the purpose of the work is to develop the concept of forming a risk passport of a digital product, and the tasks are: determining the stages of building a risk passport and testing on a specific example of a digital financial product.
© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 415–421, 2022. https://doi.org/10.1007/978-3-030-94873-3_52
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2 Methodology Technological innovations are changing the financial market, as well as allowing the formation of new business models and products, changing the competitive environment and models for providing intermediary services, affecting operational efficiency, availability of financial services, consumers engagement, speed of operations, automation, but at the same time there is a problem of protecting personal data of citizens, transparency of financial companies and digital security risks. These facts require the formation and development of state decisions and regulatory legal norms. So, in Europe, a draft law on the regulation of digital markets was published in December last year. The draft puts forward ideas about the need for the formation of norms in terms of antimonopoly regulation. At the same time, the main market participants are digital platforms. They have to meet the established requirements and will receive a special status of “gatekeepers” [3]. The application of the designated draft law is focused on companies that are Internet giants (Google, Amazon, Facebook, Apple, Microsoft), and it is suggested to establish quantitative criteria for this status, as well as requirements that they have to fulfill. The main idea of the document is the development of fair competition in the markets. A different approach is demonstrated by the United Kingdom, which presented its own approach to regulating digital markets. In accordance with this approach, the British Competition and Markets Authority announced its proposals for regulating digital markets in the same period. Thus, it is proposed to create a special division for digital markets, which will introduce a new “strategic market status regime” for its major participants. The British approach differs from the European one in that it does not have quantitative thresholds and criteria that determine this strategic status. The assignment of such a status is based on certain facts that determine the company as a leader in at least one digital activity. A company that meets this strategic status will have to comply with a set of rules established in the future, taking into account its specifics. Such rules are aimed at three important goals: freedom of choice, fair trade, trust and transparency (consumer protection). Then these rules will be specified to the activity and potential risks (“harm that needs to be prevented”). Russian law in relation to the processes of digitalization of the financial market is also emerging. Within the framework of this law, the possibilities and limitations of the activities of financial platforms, as well as the requirements for their registration and current activities, including risk management, are defined. According to official data at the beginning of February 2021, 3 financial platforms were registered in Russia. Paying attention to the scheme of the sequence of actions of the client with the financial platform (Fig. 1), it can be noted that different stages and an unlimited number of participants can carry uncertainty factors of the external and internal environment, which will generate various risks. Thus, one of their most important methodological tools is the legal support of a specific activity, in addition, the riskiness of this activity and related areas significantly depends on the legal regulation, its completeness and clarity. Identification and risk assessment are the most important stages in the risk management complex, which currently should be not only a mandatory organizational element of the internal control system of any financial organization, but also part of the corporate governance ideology.
Development of Risk Passport for Digital Financial Product
Client enters the site-reader
Platform enviroment
Platform enviroment
Platform enviroment
Compares and chooses financial product
Passes identification on a platform
Confirms the agreement cobdition
Gets a notofocation from RFT
Reader N
Platform N
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Fig. 1. The sequence of actions of the client with the financial platform (Source: authors).
Thus, risk management, as a systematic approach, appeared in 1955 in the field of insurance. Nowadays, it should be noted that there are professional standards in the field of risk management.
3 Results Risk management of any company is focused on protecting its values and positions, and will have a positive effect if it is competently integrated into its organizational structure. The main goal of risk management is to ensure business continuity. It should be noted that 3 financial platforms are PJSC Moscow Exchange, JSC VTB Registrar and JSC “Specialized Depository “INFINITUM”, that is, these organizations are participants of the national payment system, for which the issues of risk management of continuity and uninterrupted functioning were worked out in sufficient detail and functionality. At the same time, the use of digital financial technologies is a known fact. Such technologies can be the basis of quite different financial products: from direct lending between individuals to the use of big data and robotics. The comparison of the possibility of using the digital technologies indicated above in various directions/aspects of financial activity was considered by the authors earlier [10]. It is worth noting that some digital technologies are more widely used in financial products, while others remain limited. However, all of them can have a significant impact on the quality of financial services and markets. For the purposes of this study, we will indicate that financial products using digital technologies are digital financial products. Developing the legal regulation of digital financial products, it is advisable, but in our opinion, to choose a direction similar to the approach of the UK. It is possible to create a “passport” of a digital financial product with a certain individual set of associated risks. The designated set can be implemented in the form of a “map” of risks. An example is the following analysis conducted by the authors on payment products implemented on the basis of modern digital technologies. In recent years, alternative payment systems, including peer-to-peer payment systems and payment service platforms for mobile operator subscribers, became increasingly
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popular. The possibility of the existence of modern alternative payment systems is also due to the development of technologies and the evolution of the system of interbank settlements, which are the basis of traditional payment systems. The construction of alternative payment systems appears in connection with the modification of payments and settlements, which stops to be a purely banking function. Currently, there is already such a possibility and practice of organizing electronic settlement and payment systems built on the basis of blockchain technology using a decentralized non-state approach. Alternative payment systems, in fact, perform the same function as traditional ones based on the banking sector, but the number of intermediaries is much smaller, and intermediaries may not be banks, there is also no single issuing center and regulator. Thus, modern payment systems are subject to the trend of disintermediation (getting rid of intermediaries) and the requirements for them are not imposed by system operators and participants, but primarily by their users – economic entities. We will compare the risks that may be inherent in the main digital payment instruments: for centralized systems – fiat electronic money (money transfers and payment by QR code), for alternative payment systems - payments in digital currencies. Thus, the risks for the financial platform are presented in Table 1. Table 1. Risks inherent in financial platforms Financial digital product
Risk Credit risk
Stock risk
Interest rate risk
Currency risk
Commodity risk
Risk of liquidity loss
Operational risk
Country risk
Reputational risk About
Payments in digital fiat currencies
About
+
+
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+
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+
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+
Using cryptocurrencies
About
+
+ - the main risk. o - the associated risk. Source: authors.
We will rank the identified risks in terms of the probability of their occurrence and potential losses of the digital platform and display them on the risk map (Fig. 2). Operational risk: this type of risk is quite significant, since there is a strong technical dependence for all participants. A failure in the system is possible, and we also include all types of fraud here. It is necessary to constantly update the technology, as well as the costs of improving the system and preventing violations of its integrity. The probability of currency risk is quite high for alternative payment systems, since the quotes of digital currencies change constantly and can have both positive and negative dynamics. A change in the exchange rate can lead to significant losses. The risk of loss of liquidity. The risk of non-fulfillment of its obligations on time depends on various factors, including the financial condition and the introduction of
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The amount of losses Catastrophic Critical
Reputational risk
Average
Country risk
Operational risk
Risk of liquidity loss
Currency risk
Acceptable Minimum Probability of risk
Credit risk 5%
10%
50%
75%
95%
Fig. 2. The risks map of the financial platform when making payments using digital technologies (Source: authors).
operational factors. Therefore, we set this risk at the level of 50%, the level of losses is average. Country risk. The risk of sanctions, war, disaster may arise if there are foreign participants in the payments chain. The probability of a country risk is set at 50%, while losses are at a critical level. Credit risk: in centralized payment services, it is practically absent due to strict standards on regulating the activities of participants and managing their risks (for example, the creation of a guarantee fund). While there are no such requirements in alternative systems, and the payment movement may be interrupted at a certain stage due to the default of a participant. However, its value is low, since modern technologies allow to make fairly fast transfers in terms of time. Reputational risk: clients of financial organizations may conduct illegal payment transactions, exposing themselves and financial organizations to the risk of loss of business reputation. Thus, the materiality of the risks (the risks of the dark gray zone) makes it necessary to take active actions to minimize them. In this case, it is advisable to transfer the risk to third parties – insurance, outsourcing and hedging. Thus, for operational risks, it is possible to insure and transfer technical devices and components to maintenance, and currency risks have to be managed by hedging. For the risks of the light gray zone, the recommended management methods are internal management measures – the creation of reserves and funds, limiting and diversification. Thus, for the risks of loss of liquidity and country risks, internal reserves, priority control and payment limitation are most appropriate. Reputational risks in payment transactions are also highly possible, they are managed by internal administrative methods: customer identification, authorization of transactions, clear regulations and compliance with internal control rules.
4 Discussion The topic of research on the risks of the digital economy is quite popular. So, Kuznetsov et al. highlight key trends in the development of the financial system caused by the digital
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economy [8]. Attrey et al. consider the stress points caused by digital transformation for politics in various spheres [1]. As new risks associated with the practical application of digital technologies, Khalin, Chernova note the risks of imperfection, unpreparedness of the regulatory framework, the risks of abuse of technologies and new opportunities, with unauthorized use of other people’s information or resources [6]. Eskindarov, Maslennikov, Maslennikov formulates the following risks: the dependence of economic agents on the Internet, the displacement of live labor, the lag of the education system from the needs of the digital economy, digital inequality, oligopolization in the information market, reduced opportunities for state control over the digital economy, companies gaining significant advantages over consumers through the use of modern big data analysis technologies, the supranational nature of the digital economy and the formation of a networked global market for goods and services, reduced opportunities for implementing protectionist measures to protect national producers and import substitution, the growth of cybercrime [5]. Koval, Kuzmenkov note the risks of using electronic money for laundering money obtained by criminal means and financing terrorism, and also suggest measures to improve legislation in order to minimize these risks [7]. Dörr et al. analyze the problems of regulating the cryptocurrency market in various countries, as well as the concern of regulators about preventing the risks of financial losses for consumers [4]. Belykh, Egorova consider the problems of legal regulation of cryptocurrency and analyze the risks of using blockchain technology from the point of view of antimonopoly legislation and competition law [2]. The risks and opportunities of the cryptocurrency market were considered by Meleshenko, Tarasova [11]. Mikhaylov. notes that in the digital format of the economy, cash can actually disappear, and payments can be concentrated around social and economic platforms [12]. Larina, Akimov\conducted a study on the identification and analysis of risks inherent in digital money [9].
5 Conclusion Risks identification is one of the integral stages of the risk management process. This stage, as well as the tools for collecting and processing information for further analysis, are sufficiently fully reflected in the existing risks management standards. At the same time, there is a specificity of specific types of activities, in connection with which a certain unique set of inherent risks is formed. In the last decade, digital technologies in financial markets have been actively used and developed all over the world, which forms new products and makes it possible to apply existing approaches in risk management to the designated innovation area. Many developed countries are improving their legal and legislative framework in order to form a fair and effective digital market. This trend is also observed in Russia. The approaches to risk identification proposed by the authors in this paper can be used as recommendations for the development of Russian regulation. Acknowledgments. The authors express gratitude to the Russian Foundation of Basic Studies for the support of project No.20–010-00346 on the topic “Research of the impact of modern digital technologies on the institutional development of the financial market and a systematic analysis of the consequences of digitalization of the financial market”.
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References 1. Attrey, A., et al.: Vectors of digital transformation. Int. Organ. Res. J. 15(3), 7–50 (2020). https://doi.org/10.17323/1996-7845-2020-03-01 2. Belykh, V.S., Egorova, M.A.: Cryptocurrency as a means of payment: new approaches and legal regulation. Courier Kutafin Moscow State Law Univ. (MSAL) 2, 139–146 (2019). https:// doi.org/10.17803/2311-5998.2019.54.2.139-146 3. Caffarra, C., Morton, F.S.: The European Commission Digital Markets Act (2021). https:// voxeu.org/article/european-commission-digital-markets-act-translation. Accessed 06 Aug 2021 4. Dörr, J., Kowalski, O., Nevskiy, S.I.: Digitalization and monetary order: problems and prospects of cryptocurrency market regulation. Terra Econ. 17(4), 6–22 (2019). https://doi. org/10.23683/2073-6606-2019-17-4-6-22 5. Eskindarov, M.A., Maslennikov, V.V., Maslennikov, O.V.: Risks and chances of the digital economy in Russia. Finan. Theor. Pract. 23(5), 6–17 (2019). https://doi.org/10.26794/25875671-2019-23-5-6-17 6. Khalin, V.G., Chernova, G.V.: Digitalization and its influence on the Russian economy and society: advantages, challenges, threats and risks. Manage. Consultancy 10(118), 46–63 (2018) 7. Koval, A.A., Kuzmenkov, M.: E-money: opportunities for quick payments and risks of their use for illegal purposes. Vestn. Plekhanov Russ. Univ. Econ. 5, 69–75 (2018). https://doi.org/ 10.21686/2413-2829-2018-5-69-75 8. Kuznetsov, N.V., Ekimova, K.V., Larina, O.I., Lizyaeva, V.V.: Financial systems development in a digital economy. In: Popkova, E.G., Sergi, B.S. (eds.) ISC 2020. LNNS, vol. 155, pp. 1248– 1255. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-59126-7_136 9. Larina, O.I., Akimov, O.M.: Digital money at the present stage: key risks and development direction. Finan. Theor. Pract. 24(4), 18–30 (2020). https://doi.org/10.26794/2587-56712020-24-4-18-30 10. Larina, O.I., Morzhenkova, N.V.: Risk management of digitalization of financial markets. Banking 4, 20–25 (2021) 11. Meleshenko, S.S., Tarasova, S.F.: Cryptocurrency exchange market: risks and new opportunities. Bull. Econ. Law Soc. 1, 230–235 (2018) 12. Mikhaylov, A.: Development of Friedrich von Hayek’s theory of private money and economic implications for digital currencies. Terra Econ. 19(1), 53–62 (2021). https://doi.org/10.18522/ 2073-6606-2021-19-1-53-62
Energy Efficiency of the Warehouse Complex V. B. Vorontsov(B) , I. A. Puzanova, and B. A. Anikin State University of Management, Moscow, Russia
Abstract. The contribution discusses the issues of decarbonization of warehouse activities in Russia to ensure its environmental efficiency. The authors note the need for the transition of the Russian economy to carbon-neutral production to ensure the development of international economic cooperation in the context of a large-scale environmental reconstruction of the European economy. During the study, it was determined that warehouse complexes should be not only energy efficient, but also energy active. Within the framework of this study, the successful experience of decarbonization in the EU countries was analyzed, on the basis of which directions of action were proposed to increase the motivation of Russian business to invest in green technologies, namely: 1) the introduction of a targeted lending system for the program to improve the energy efficiency of operating activities; 2) setting standards for the construction of warehouse facilities based on energy efficient and energy active technologies; 3) establishment of norms for the use of energy resources to provide engineering systems for warehouse complexes; 4) optimization of energy sources; 5) ensuring the carbon neutrality of the logistics infrastructure; 6) creation of automated systems for accounting and control over energy consumption and monitoring of environmental impact. Keywords: Carbon neutral production · Decarbonization · Energy activity · Energy efficiency · Green technologies
1 Introduction In the last decade, there was a steady trend of transferring the issues of countering climate change from the category of “widely discussed” to the practice of making everyday economic decisions. There is no doubt that the main driver of the development of the world economy at the present stage is the climate agenda. The decarbonization policy proclaimed by the world community is aimed at changing the technological structure of the world economic system, in order to reduce the level of greenhouse gas emissions into the atmosphere, as a decisive factor in countering the processes of global climate change. The issues of improving business efficiency go to the second position. A number of major powers declare the goals of switching to a carbon-neutral basis of their economies in the next two or three decades. At the same time, it is a mistake to assume that decarbonization issues relate exclusively to energy and industry, as the main environmental pollutants. The term “carbon footprint” is applicable to almost all spheres of economic activity. In the field of logistics and supply chain management, the concept of GSCM (Green Supply Chain Management) is becoming increasingly important, © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 422–429, 2022. https://doi.org/10.1007/978-3-030-94873-3_53
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the main point of which is to manage supply chains in order to achieve environmental efficiency by reducing the harmful impact on the environment. In accordance with this concept, organizations should not only comply with environmental standards, but also mitigate the impact of operating activities on the environment and participate in solving environmental problems of customers [9].
2 Methodology The European Union declares the transition to a carbon-neutral economy no later than 2050. At the same time, the main financial burden from the implementation of a largescale environmental agenda falls on European business. A large-scale reconstruction of all spheres of the European economy is expected. The main risks in this case are a decrease in production efficiency and, as a result, a decrease in the level of competitiveness of European goods on the world (and European) market. To reduce these risks, the EU is supposed to introduce a system of measures called “cross-border carbon regulation” [4]. A special carbon tax is supposed to be introduced as one of the elements of this system. This tool is planned to be applied to exporters of products and services to European markets, which will allow, on the one hand, to somehow compensate for the costs of European countries for the development of expensive green technologies, on the other hand, it gives preferences to European companies in the market. Thus, according to a number of estimates, only Russian business will have to contribute from 3 to 5 billion dollars annually for the right of accessing European markets [6]. The lack of calculation methods accepted by the parties and the desire to get preferences for their own business will lead to a spiral of tax claims. Thus, one of the consequences of the competition of various transport corridors for the supply of goods to the EU was the suggestions to impose additional duties on goods transported by Russian railways (RZD). The motive is a large share of coal in the structure of Russian Railways cargo. It is obvious that the study of the carbon footprint in order to achieve purely economic goals in the near future will become a very relevant and profitable business. It is obvious that the Russian economy needs to be prepared for the development of the situation in this area of international economic cooperation. Thus, out of the eight main exporters of goods to European markets, only two (including Russia) do not have a legally formalized system for regulating greenhouse gases [10]. The Russian side has a large number of complaints about such payment methods, but this will not stop the EU from wanting to be engaged in cross-border regulation and get preferences for European business, bypassing the existing rules of international trade. According to a number of experts, such duties may be introduced in the foreseeable future (2022–2023). Since logistics processes cover all aspects of the functioning of the national and world economy, it would be strange to assume that the issues of decarbonization do not concern this area of activity. According to a number of analysts, the main areas of combating carbon pollution are: improving the energy efficiency of energy consumption processes; electrification of industry, transport and households; introduction of digital technologies for accounting
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for energy consumption and assessing their impact on the environment; transition to renewable (green) energy technologies; development of environmentally friendly energy storage technologies on an industrial scale [6]. Almost all of these technologies can be implemented in various aspects of logistics activities. However, if the issues of decarbonization of cargo transportation processes were considered for a long time and their relevance is beyond doubt, then the issues of reducing the carbon footprint in the field of warehouse activity are not given enough attention both in theoretical and practical aspects.
3 Results It should be noted that in 2020–2021, almost all countries of the world have a significant increase in the warehouse business [5, 7]. Both the areas of warehouse premises and operations that are atypical for warehouses are growing. The reasons for this are related to the processes launched by the COVID-2019 pandemic. The restrictions that emerged during the pandemic limited the traditional channels of distribution of material resources, but at the same time gave rise to completely new channels and forms. There is a sharp increase in e-commerce, contactless delivery of goods directly to the consumer. Thus, in 2020, there was a fourteen-fold increase in the number of orders in the SberMarket company, which gave an 11-fold increase in the company’s turnover. All this led to an increase in storage capacities, especially in large metropolitan areas. According to the international consulting company Knight Frank, the growth of transactions for the rental and sale of logistics real estate in Russia amounted to about 45% [2]. The reason is the growth of operations in the field of e-commerce and grocery retail. The need to abandon traditional trading platforms led to the transfer of a number of their functions (production of semi-finished products, pre-sale preparation, packaging, order formation) to the field of warehouse work [7]. All this, in addition to the growth of storage facilities, led to an increase in energy consumption in the field of warehouse management. Given that e-commerce is often cross-border in nature, a good environmental reputation of the company, as well as the products and services it offers, becomes a factor of its competitiveness. Therefore, to improve environmental performance, many companies are successfully implementing “green” technologies in the organization of warehouse activities. One of the directions of creating a “green” image of the company is the justification of clean energy sources to ensure its normal functioning. This includes the purchase of “green” bonds (documents confirming the volumes of investments in renewable energy), and the conclusion of contracts with energy companies for the purchase of environmentally friendly energy. Thus, Delo Group signed a deal with a division of the Russian Nuclear Corporation Atomenergoprom to supply logistics terminals with electricity from green energy generators. This deal becomes very relevant in the light of the recent (April 2021) recognition of nuclear energy by the EU as “green”. An agreement was signed on the supply of electricity from wind turbines to the Novorossiysk logistics terminals NUTEP (container) and KSK (grain). Every year, an increasing number of Russian companies are beginning to consider decarbonization measures as an important part of their operational activities. Nevertheless, the number of warehouses certified according to the “green” BREEAM, LEED and
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DGNB LEED standards in Russia does not exceed 30 objects. Although it should be noted that according to analysts of the international consulting company Knight Frank, the share of “green” buildings is growing every year [2]. Such a low share of certified warehouse facilities can be explained by the fact that, as a rule, new facilities that are put into operation, designed with high energy efficiency and built using environmentally friendly, natural resources, are subject to certification. For earlier buildings, in order to ensure the efficient use of resources: electricity, water, thermal energy, “green” technologies are used, that is, a set of technological and organizational solutions aimed at improving the energy efficiency of the object, its environmental safety and ensuring a favorable working environment. “Green” warehousing implies the introduction of the following technologies: 1. Energy-saving lighting technologies. 50% of the total energy costs are accounted for by lighting the warehouse. Warehouses need round-the-clock lighting, including for security purposes, which leads to significant electricity costs. In addition, the high ceilings of the premises require the installation of powerful light sources to ensure the required level of visibility. Thus, the lighting in the warehouse should, on the one hand, provide low power consumption, and, on the other hand, be uninterrupted, meet the quality indicators and lighting standards, and should also be completely safe. Today, these requirements are met by the use of LED lamps that are a) resistant to voltage and temperature fluctuations, b) have maximum light output, c) durable (5000–100000 h of operation), d) meet the requirements of explosion and fire safety, and e) provide low energy consumption. Light control technologies (“smart lighting”), including devices such as dimmers, motion sensors and presence sensors, allow to increase the energy efficiency of the warehouse due to the competent distribution of energy, providing a high degree of illumination where it is necessary at the right time. 2. The technology of “cold” roofs is a source that provides an increase in the energy efficiency of the warehouse by saving thermal energy. This technology has two fundamental qualities: a) reflectivity (that is, the roof is able to attract less solar energy), b) a high coefficient of thermal radiation (that is, a significant part of the thermal energy is reflected from the surface back into the atmosphere). It should be noted that the use of this technology is justified in the warm regions of Russia and it allows to reduce costs in “cold” warehouses. 3. Technologies of heat distribution in the building that contribute to improving energy efficiency and comfort of the environment. Generally accepted methods of heat distribution include air heating systems of the technological zone and water heating of the administrative part of the warehouse. The use of an air distribution system of the coolant seems unjustified for storage rooms due to the large volume, while the temperature regime must be observed at a height of 2 m from the floor. The use of underfloor heating is now considered as one of the most effective heat distribution strategies for storage facilities. Experts note that the typical energy saving for such systems reaches 40%. In the world practice of energy saving, large-sized and low-speed fans are widely used, which are able to carry large volumes of air at low speed, thereby regulating the
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temperature regime in the room. The use of this type of equipment allows reducing the cost of heating and cooling by up to 50% [1]. Technologies that allow the use of renewable energy sources (for example, photovoltaic systems, wind generators). These types of energy sources do not need any fuel, they are characterized by extremely low operating costs, but effective power generation with their help is possible under certain weather conditions. It should be noted that today these systems are being developed and supplemented with specialized functions. For example, solar panels equipped with sun tracking devices allow generating power corresponding to the average electricity demand of a warehouse complex. “Smart” building is a building automation system (BAS). The authors note that the best way to reduce the consumption of energy resources is to manage it [8]. Energy management systems independently control all utilities that the warehouse complex uses, without special human intervention. Thanks to the integration of timers, thermostats and sensors for all types of electricity, heat and water, the smart building system allows controlling and economically use resources for the maintenance of the warehouse complex. This is a fundamental component of environmentally friendly systems, as it helps enterprises to reduce the use of renewable resources, as well as to minimize operating costs. Lifting and transport equipment with electric motors, the use of which is environmentally friendly, since this type of storage equipment eliminates the need for gas and oil. In particular, for more efficient operation of lifting and transport equipment, “green” warehousing involves optimization of storage and selection locations, planning of dual tasks, which leads to optimization of routes and increased productivity of intra-warehouse transport. Technologies for processing. For example, at the warehouse terminals of the company LLC “YurFinConsult”, known under the trademark Tablogix, in order to protect the environment, technologies are used to purify water that enters a special pool, and then is reused for technical needs. A good practice is the approach of warehouses to the transfer of a) for the processing of packaging materials, b) for the disposal of waste, c) for the processing of scrap metal and broken equipment, as well as the use of reusable containers in the technological process.
4 Discussion One of the most promising areas of development of “green” technologies, which practically did not find application in warehouse activities, is the creation of energy-active warehouse buildings. Indeed, a warehouse complex is primarily a building. Technologies that minimize the consumption of all types of energy resources by the warehouse complex through the use of progressive construction technologies and progressive engineering solutions are called energy-efficient. Unlike them, energy-active buildings are not only able to minimize the consumption of energy resources, but are also capable of effectively using the energy potential of the environment in order to partially or completely meet their energy needs [3]. The most interesting energy-active technological solutions for warehouse complexes, taking into account the requirements for decarbonization, are
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technologies for using solar (based on the photovoltaic effect) panels, wind power plants and heating systems based on the heat pump effect. The use of solar power plants requires the alienation of a significant area of land, which is not always possible and economically feasible in a megalopolis. One of the standard solutions in this area is the location of solar panels on the roofs of buildings. The experience of Germany is interesting, when local municipalities dated part of the amount for roof repairs in the case of a household installing a solar panel on the roof of a building. Having large roof areas, warehouse complexes become the optimal object for the location of these mini-electric power plants. A solar power plant does not require much effort to maintain. Almost any electrician can cope with its operation. Due to their noisy nature, wind power plants cannot be located in the immediate vicinity of residential buildings, but they can easily fit into the landscape of a warehouse complex. It should be noted that these two technologies have a certain unpredictability in the volumes of electric energy generation, therefore they will require additional costs for the creation of energy storage devices (battery station). The heat pump technology (based on the Carnot cycle) uses natural (lowtemperature) heat of the earth or a reservoir to accumulate it (with subsequent condensation of the coolant) directly in the room. These technologies are quite widely represented on the Russian market of energy technologies. Thus, the Russian company “Hevel” provides a full range of services for the production of equipment, design and construction of solar energy facilities. Despite the availability of such energy-active technologies on the domestic market, it is worth noting their rather high cost. Image preferences do not always outweigh quite real additional infrastructure costs. The possible introduction of a European carbon tax in the near future may provide a basis for revising the economic assessments of these technologies. Currently, the development of renewable energy technologies in most countries of the world is due to state support. In Russia, there is a mechanism for guaranteed return on investments in the construction of renewable energy generating facilities. Obviously, it is necessary to study the German experience of extending such state support to energy-active buildings using similar (primarily domestic) technologies.
5 Conclusion Carbon-neutral production, efficient use of energy, including renewable energy, operation of environmentally friendly buildings, reduction of air pollution and noise, reduction of carbon emissions, use of more electrified vehicles, storage and optimization of storage sites, optimization of the movement of lifting and transport equipment, waste management and the use of eco-friendly packaging are the requirements of modern reality, which allow not only to minimize harm to the environment, but also to increase the efficiency of the company by significantly reducing operating costs. Experts note that the cost of the project to create a “green” warehouse is 10– 20% higher, and the payback period for investments is from 3 to 7 years. In Russia, entrepreneurs try to refrain from significant investments with a long payback period due to the instability of the economic situation in the country. Therefore, we can identify
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the following areas of actions to increase the motivation of business to invest in “green” technologies: 1. Implementation of the target lending system of the program to improve the energy efficiency of operating activities. 2. Setting standards for the construction of warehouse facilities based on energyefficient and energy-active technologies. 3. Establishment of norms for the use of energy resources to ensure the engineering systems of warehouse complexes. 4. Optimization of energy sources. 5. Ensuring the carbon neutrality of the logistics infrastructure. 6. Creation of automated systems for accounting and control of energy consumption and monitoring of environmental impact.
Acknowledgements. The study was carried out with the financial support of the RFBR and the Vietnamese Academy of the Social Sciences in the framework of the scientific project No. 20–510-92005.
References 1. Facchini, F., Boenzi, F., Digiesi, S., Mummolo, G.: Greening activities in warehouses: Model for identifying sustainable strategies in material handing. In: Katalinic, B. (ed.), Proceedings of the 26th DAAAM International Symposium on Intelligent Manufacturing and Automation, pp. 0980–0988. DAAAM International, Vienna (2015) 2. Knight Frank: Warehouse Real Estate Market: Key events of 2020 and trends of 2021–2022 (2020). https://new-retail.ru/business/rynok_skladskoy_nedvizhimosti_klyuche vye_sobytiya_2020_goda_i_tendentsii_2021_2022_godov8314/. Accessed 10 Mar 2021 3. Kosy, B.: Smart power supply: buildings with zero energy consumption control engineering of Russia 5(89), 16–21 (2020) 4. Lukin, V.: On approaches and consequences of the introduction of cross-border carbon regulation in the European Union (2021). aebrus.ru/upload/iblock/bc9/20210319_Lukin.pdf. Accessed 27 Mar 2021 5. Lunkova, V.: Analysts announced a six-fold increase in the number of “green” projects in Russia (2019). https://realty.rbc.ru/news/5dcd18859a794730ae566f4b. Accessed 02 Mar 2021 6. Makarov, A.A., Mitrova, T.A., Kulagina, V.A. (eds.): Forecast of world and Russian energy development 2019. ERI RAS, Moscow School of Management Skolkovo, Moscow (2019) 7. Puzanova, I.A., Klimina, Y.G., Makhlychev, R.V.: Smart warehouse – tomorrow of supply chain. In: Popkova, E.G., Sergi, B.S. (eds.) ISC 2019. LNNS, vol. 198, pp. 1645–1653. Springer, Cham (2019). https://doi.org/10.1007/978-3-030-69415-9_181 8. Tan, K.S., Ahmed, M.D, Sundaram, D.: Sustainable warehouse management. In Barjis, J. (Ed.), Proceedings of the International Workshop on Enterprises & Organizational Modeling and Simulation. ACM, New York (2009)
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9. Vertakova, Y., Kazantseva, A., Plotnikov, V.: Green supply chain management as a tool for transforming the economy in the transition to the sustainable development concept. Agric. Resour. Econ. 6(2), 37–56 (2020) 10. Zubkov, I.: BCG estimated the carbon tax burden for Russia at 3–4.8 billion dollars (2020). rg.ru/2020/07/28/bcg-ocenila-bremia-uglerodnogo-naloga-dlia-rossii-v-3-48mlrd-dollarov.html. Accessed 28 Feb 2021
Management Consulting in Digital Era I. A. Mamedova1(B) , V. Savchenko-Belsky2 , and Serge Velesco3 1 Russian University of Transport, Moscow, Russia 2 State University of Management, Moscow, Russia 3 Higher School of Applied Sciences Mittweida, Mittweida, Germany
[email protected]
Abstract. The paper looks into the consequences of the pandemic for the transformation of delivery of the management consulting services. Traditionally, being a face-to-face service, and relying quite a lot on personal contacts and connections, management consulting appeared to be threatened by the digital transformation and technological advancement as well as extended accessibility of data and analytical tools to the clients. The aim of the paper is to find out what made management consulting especially vulnerable in the pandemic, and how the consulting services companies adapted to the changed context. The author starts with description of the consulting management industry, highlighting the key financial indicators and peculiarities of organizing delivery of services in face-to-face format. Then the author proceeds with outlining key challenges associated with digitizing in the management consulting and relevant solutions. The paper concludes that digital transformation of the management consulting has its benefits and drawbacks both for clients and consultancies, and that digital consulting requires better standardization and regulation. Keywords: Business economics · Consulting services · COVID-19 · Digital transformation · Digitization of the management · Management consulting
1 Introduction As with any other business, the consulting firms need to know their external environment pretty well. But unlike other business fields, consulting companies can thrive even on negative factors. A crisis leads to a transformation, and transformation requires knowledge and expertise for its implementation, and it is where consultants are needed. The pandemic of 2020 and the imposed lockdown regime sped up the digital transformation of businesses of all kinds. Digital transformation turned to be a key product offered by management consulting, as this type of change became a must for businesses in a digitalized world. Thus, management consultants entered this field, since ultimately digital transition is more related to management than to technology [10]. Digitization of management consulting services have already started before the COVID-19 pandemic in 2020, but the scope of this transformation was still limited. Previous year, however, pushed the consulting industry as any other business which aimed at surviving, to speeding up digital transformation and reviewing the service delivery approach. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 430–437, 2022. https://doi.org/10.1007/978-3-030-94873-3_54
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2 Methodology The leading direction in the field of consulting: digital-consulting, which appeared in the conditions of transformation of the traditional economy into a digital one, has been considered. An attempt has been made to determine the essence of digital consulting, to identify priority areas for the development of consulting companies in the era of digitalization, which was the purpose of the work. The main stages of the formation and changes in the field of consulting considering trends in the global economy have been noted. This paper relies on the analysis of the available literature and analysis of the open access data. The authors start with a description of the consulting management industry highlighting the key financial indicators and peculiarities of organizing delivery of services in face-to-face format. After that, the authors outline key challenges faced by the consultancies in relation to digital transformation of the business because of the pandemic, and provides several illustrations of the digitization of the management consulting services. The reasons, why consulting service is appreciated, are defined. The analytical research representing the rating of the consulting companies according to their revenues in 2019–2020 was conducted. The paper presents a closer look at what makes big consulting firms successful and how they develop a productive relationship with their clients. Current information about digitization of intellectual property and delivery is presented. The research results can be used to expand and systematize scientific knowledge in the field of digital consulting, as well as to determine strategic guidelines for the development of consulting organizations in the context of digitalization.
3 Results 3.1 Management Consulting in Pre-digital Era Association of Management Consulting Firms defines management consulting as services targeted at providing solutions for managerial, economic, operational and other types of challenges faced by the institutions in order to maximize their benefits. The origins of the consulting industry are traced back to the 19th century when consulting ceased being limited to only engineering and finances and started taking the present form. In the 1930s business representatives started being more interested in the organization theories and science, when many reforms, as, for instance, the famous Glass-Steagall Act of 1933 for the banking world urged companies to embrace change with the help of studies, research and experiments. At this point, the golden age of the consulting industry started and key players emerged there -- McKinsey & Company, Boston Consulting Group, Booz Allen Hamilton and others. In the 1930s, the number of consulting companies grew by 15% (in the USA) [11]. In the second half of the 20th century, American business models started to be transferred to European countries, while the economies were reconstructed after the devastation of the war. For the consulting companies that meant revenue growth by approximately 300% from the 1960s till the beginning of the 21st century, and the headcount in the biggest consulting companies increased by roughly 2.000%. The consulting industry falls into six major domains (Fig. 1). The upper one – Strategy, also known as Management consulting – is the most prestigious and the
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biggest (in terms of revenue) cluster. It is followed by the operations consulting including HR consulting. Consultancy can be provided by freelancers and small enterprises, but the leaders are the Big Four companies, among which Accenture is a global leader, recognized as most valuable and strongest IT services brand in the world, boosting the brand value of US $26.0 billion with the top Brand Strength Index (BSI) score of 85.6 out of 100 in 2021 [14].
Professional services Accounting
Public relations
Advertising Scientific Research
Architecture
Marker Research
Public relations
$300 billion
Engineering Market size
Legal Consulting Notary Research
Other Business Services Market structure in consulting 2% - Large firms
$100 billion
Segments
8% - Small firms
Management 5% - Mid-sized firms
85% - Freelancers
Operations
Human Resources
Financial Advisory Technology
Fig. 1. Consulting industry structure (Source: authors).
Consulting industry leaders can be defined based on various criteria. These criteria include economic performance indicators, such as revenue of the companies (the most often used criterion), turnover, number of employees, capitalization, stock market prices
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(if applicable). Other criteria concern the number of clients, number of projects, average project value, etc. Combination of these indicators is also used as a measure, e.g. revenue per employee. Consulting is a very profitable. The revenue of many consulting companies exceeds that of some countries (Table 1). Table 1. Revenue of consulting companies compared with selected countries Rank Company name
Revenue
Country *1
Revenue
HR*2
1
Deloitte
US $46.200.000.000 Slovakia
US $43.113.000.000 54
2
Accenture PLC
US $44.327.000.000 Pakistan
US $42.951.000.000 55
3
PwC
US $43.000.000.000 Algeria
US $41.474.000.000 56
4
Ernst & Young
US $37.200.000.000 Peru
US $35.869.000.000 57
5
KPMG
US $29.220.000.000 Luxembourg US $27.600.000.000 63
6
McKinsey & Co US $10.500.000.000 Latvia
US $10.130.000.000 85
7
BCG
US $8.500.000.000
Guatemala
US $8.335.000.000
94
8
Bain & Co
US $4.300.000.000
Malta
US $4.295.000.000
111
* 1 – countries which place a company could theoretically take, global rating has a total of 228
countries. *2 – HR – hypothetical rating – place in the global ranking which a company could take Source: authors based on [8].
The consulting industry has remained unchanged in the last century. Partially, such reluctance can be explained by the fact that the traditional consulting model is mainly based on relationships and the expert advice of the consultants to the clients delivered face-to-face. Additionally, consultants are skeptical about the adoption of the technology because they are unwilling to lose that personal touch of the services. Finally, traditions play a significant role in the industry. However, when the pandemic stroke, consultants felt obliged to follow the same route of digital transformation as other businesses, although their business did not suffer from disruption as every other industry. The consultants are still needed: any business at any time will have some problems to be solved. Ultimately, some consultancies found it quite easy working in spreadsheets and storing client data on hard drives [1]. Thus, consulting is one of the last industries to go digital, but consultants had to face customer expectations and act accordingly. Companies had to revise the entire workflow to ensure that they can satisfy the needs of their clients [1]. Meanwhile, digital transformation turned to be challenging to consulting firms because of the peculiarities of their traditional approach to service delivery. 3.2 Digital Consulting Challenges and Solutions To be able to advise on effective digital transformation of operations, the consultancies should be digitally savvy themselves. Digitization extends far beyond simply applying the advanced technology; it requires an absolutely new mindset that would penetrate
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and impact each and every element of an organization. Digitization in the management consulting implies enhancing digital capabilities at every stage of engagement, starting from the creation of IP before an engagement starts to creating follow-up business opportunities when it is over. On the whole, the process of digitization of the management consulting can be considered across four key dimensions: 1) intellectual property; 2) data collection and analysis; 3) delivery; 4) clients’ data protection [2]. 1. Digitization of Intellectual Property. Intellectual property in management consulting consists of the frameworks used by consultants to solve distinct problems and propose solutions for their clients. A well-known trick of the consulting companies is that they rarely reinvent the wheel, meaning that they do not create complex alternative models for business very often. Because of the lack of time and a big number of clients, they usually sell customizable ready-to-use methodologies considering the demand, market environment and the goals of the clients. The 4-fields matrix invented by the Boston Consulting Group caused a revolution in the consulting – before that, consulting models looked too complicated, and the managers were astonished by the simplicity and practicability of the new model presented as a set of comprehensible charts and graphs. The efficiency growth curve created the same effect [7]. Such companies as BCG, Bain & Co., Braxton Associates and some others left the expansionary work approach they had used and moved on with the new “user-friendly” ideas. In response to these massive changes in the industry, McKinsey obliged their newly hired employees to be proficient in many basic analytical structures (the “tree” of stock returns, industry cost curves, customer value delivery systems, and others). Decades pass but the consultants continue using the same schemes breaking the client’s business into parts and studying them from a fresh perspective and perfecting this analytical skill [5]. Thus, a great number of consulting firms, especially the larger, more established companies, have been using standard frameworks repeatedly. To go digital, these firms would need to store their frameworks on a digital platform, which also allows for deploying frequently without any difficulty. Additionally, consultants could share the digitized frameworks more easily, while ensuring the consistent output thanks to the repeated use of standardized approaches [2]. 2. Digitization of data collection and analysis. The consultant’s role is heavily determined by data. Consultants are data-driven [6]. Businesses hire consultants for expertise which cannot be obtained in-house [10], although there is reportedly a trend for internal consulting [1]. But data collection is not everything. Consultants need to know not only what is happening in an organization, but also why it is happening. Therefore, they should know how to extract the maximum analytical output from the data. When digitization of data collection is concerned, a few issues are to be considered. Remote methods of data collection have been long available via survey platforms. However, most survey platforms are helpful only with collecting basic data, not segmented, so that additional effort is required to make sense of it. The consultants would need to filter the data through their own frameworks themselves, because few survey platforms have automated analytics. As a possible solution, consultants could join efforts with data scientists: ‘the benefits of management consultants, such as business intuition, decision-making
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abilities and the sense for detecting the right questions to ask, may be combined with the technical expertise of the data scientists [10]. 3. Digitization of delivery. Traditional face-to-face meetings are a valuable instrument for establishing a strong bond of trust between the consultant and clients. In the pandemic, physical consulting meetings are suspended, but the clients are not less demanding in terms of the quality of the consultancy services [3]. In other words, there is a certain risk that the reduced direct client-consultant interaction will lead to miscommunication, and a lack of personal touch in the client-advisor relationship. Normally, consultants present the results of their work as a PowerPoint presentation that explains the findings and recommendations. Rarely, they would show the raw data used to reach the conclusions, but when they do, it is a hardly digestible Excel document. Clients today demand deeper involvement in understanding and interpreting their data. Digitization of the delivery would allow clients to access their own data on a digital platform. Ultimately, such an approach would mean that consultants can skip creating a PowerPoint, but give their clients a much clearer view into their data instead [2]. 4. Digitization of the client data. What makes the consulting services so appreciated is the personal connections, or, in other words, “It is about who you know”, and the biggest consulting companies know everybody. People with connections are very influential [12]. Leading consulting firms, such as the Big Three, have a decade-long relationship with the Fortune 500 companies and the Fortune 100 companies’ executives [13]. “We, not me” is a very important principle adopted by many consulting companies. There are no former employees, alumni of big consulting firms often head well-known businesses and other institutions, thus replicating the values and culture gained while serving the consulting giants. Digital transformation provides a different approach to ensure the sustainability of these relations. Digitization contributes to better security of the clients’ data. Traditional way of storing the client data on individual hard drives and spreadsheets implied that one responsible person exists there. However, it is not safe enough. Clients’ presentations can get deleted or misplaced, when employees leave or systems get updated. Therefore, consulting companies could benefit from developing a reliable system of clients’ data storage, which would be secure, look impressive, and helpful for the identification of the employees working on the respective projects. Other advantages to digitizing client data are not that obvious. Having access to the digital data platform consultants can learn from the data and improve their practices. It is possible to apply benchmarking technique to keep track of client data over time and transfer this knowledge to their clients showing how they improve over time. In other words, it would open new business opportunities, increase client return ratio and bring more revenue. Consultants can also learn more about their clients’ industries, as they can easily compare one client’s data to another to discover new interrelations in the data and better understand the problems facing the business world [2].
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4 Discussion Nowadays we observe a paradigmatic shift which brought radical changes in the market. Digital consulting is on the rise, benefitting from unlimited technical possibilities and quick and easy availability thereof in classic corporate processes. Cloud solutions provide information regardless of time and location of the end device, and the artificial intelligence uses algorithms to create knowledge on demand from high data volumes [4]. While digitization of management consulting seems to be a smooth process, a few issues are still to be settled and properly addressed. For example, digitalization and automation of operations put consulting services at risk of cyberattacks and fraud. Data needs to be handled responsibly and the relevant infrastructure should yield high stability, to ensure successful digitization of consulting services. Consultancies should be able to guarantee the protection of personal data and business data [15]. In brief, when creating solutions relying on digital technology, consultants have to uphold the clients’ trust and offering legally valid data security [10]. Another important concern is the current disparity between existing standards and practices used in digital solutions and in consultancies. Therefore, it would make sense to develop and approve international and national standards for the digital consulting services. One advantage of doing it would be to make future consulting practices more compatible with preexisting consulting practices. For this purpose, the ISO 20700:2017 Guidelines for management consultancy services could be used [9]. This document provides guidelines for people or organizations for the effective management of management consulting services. These guidelines could be easily updated to include a set of recognized standards related to digital consulting. In longer-term, it would strengthen and increase trust for and acceptance of the digital consulting services.
5 Conclusion The COVID-19 pandemic created a demand for digital transformation, implying a new business model, i.e. a digitized business model. Management consultants’ role is to assist businesses in designing and adjusting everyday working patterns in accordance with new technologies. While new technologies are key elements of digital transformation, it will not work for the benefit without relevant management principles. Therefore, digitization is rather a combination of new technologies and new management practice, which enables organizations to function in a digitalized world. Consulting companies, too, undergo digital transformation of their operations to keep pace with today’s technology-driven business world [2]. Just as traditional face-to-face consulting, digital consulting provides for close interactions with clients, while at the same time scaling activities, and reducing redundancy and waste. Consulting firms occupy a unique position in the business world, and many of them were reluctant to move towards digital transformation. One general explanation is that traditions play an important role in the industry, and traditionally, consultants used to have a really close relationship with their clients, providing services face-to-face. Nonetheless, consulting companies have found their benefits in digitization, pushed by
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clients demand and the historical necessity. Ultimately, the demand for consulting services did not disappear, and only grows stronger as more businesses require a reliable guidance on digital transformation.
References 1. 9lenses: The digitization of the consulting: Practice what you consult (2020). http://offers.9le nses.com/digital-consulting-ebook. Accessed 11 Aug 2021 2. Blacklock, Ch.: 5 ways consultants can embrace digitization (2016). https://www.9lenses. com/5-ways-consultants-can-embrace-digitization/?s. Accessed 01 Feb 2021 3. Bryder, K., Malmborg, A., Söderlind, E.: Virtual Business Models: Entrepreneurial Risks and Rewards. Woodhead Publishing, Cambridge (2016) 4. Cosmoconsult: Digital Business Consulting (2020). https://www.cosmoconsult.com/bus iness-and-it-consulting/digital-business-consulting/. Accessed 28 Feb 2021 5. Crainer, S.: The Tom Peters Phenomenon: Corporate man to Corporate Skunk. Capstone, Oxford (2001) 6. Curuksu, J.D.: Data driven: An Introduction to Management Consulting in the 21st Century. Springer, Cham (2018). https://doi.org/10.1007/978-3-319-70229-2 7. Fink, T., Ghemawat, P., Reeves, M.: Searching for great strategies. Strategy Sci. 2(4), 272–281 (2017). https://doi.org/10.1287/stsc.2017.0052 8. International Monetary Fund: World economic outlook database (2021). https://www.imf. org/en/Publications/WEO/weo-database/2020/October/. Accessed 12 Feb 2021 9. International Standard Organization: ISO 20700:2017. Guidelines for management consultancy services (2017). https://www.iso.org/standard/63501.html. Accessed 04 Mar 2021 10. Larsson, A., Teigland, R. (eds.): The Digital Transformation of Labor: Automation, the Gig Economy and Welfare. Routledge, London (2020). https://doi.org/10.4324/9780429317866 11. McKenna, C.D.: The World’s Newest Profession: Management Consulting in the Twentieth Century. Cambridge University Press, New York (2010) 12. Pfeffer, J.: Power: Why Some People have it – And others don’t. Harper Business, New York (2010) 13. Posner, M.: How McKinsey & Co. fails as a global leader (2018). https://www.forbes. com/sites/michaelposner/2018/12/18/how-mckinsey-co-fails-as-a-global-leader/?sh=f03e7a d376d1. Accessed 28 Feb 2021 14. Poulfelt, F., Olson, T.H.: Management Consulting Today and Tomorrow: Perspectives and Advice from Leading Experts. Routledge, Abingdon (2018)
Optimization of Software System Models M. Sergievskiy1 , A. Vinokur2,3(B) , and M. Shevchenko3 1 National Research Nuclear University MEPhI, Moscow, Russia 2 Moscow Polytechnic University, Moscow, Russia 3 State University of Management, Moscow, Russia
[email protected]
Abstract. Most object-oriented development technologies are based on the use of the universal modeling language; class diagrams are especially widely used in the design process, which serve to build a model of a software system. Modern CASE-tools, which are basic object-oriented project instruments, do not have tools for optimizing UML diagrams. This contribution shows how you can use design patterns to validate and optimize class diagrams. It is shown that some transformations can be carried out automatically; in other cases, the designer will be pointed out to the potential inefficiency of the model and will be offered recommendations on how to correct it. It is proposed to extend the modern CASE-tool Rational Software Architect Designer from IBM with the capabilities of validation and optimization of class diagrams. For this purpose, a plugin has been developed that parses an XMI file containing a description of class diagrams. Since the class diagram view in Rational Software Architect Designer contains redundant information, a more optimal view was chosen to make it easier to implement algorithms for finding erroneous and sub-optimal class diagram fragments. Keywords: Case-tool · Class diagram · Design patterns · Rational Software Architect Designer · UML · XMI
1 Introduction As you know, UML is the standard tool used in the development of object-oriented information systems [6]. And at the design stage, the most popular UML instrument is class diagrams. It should be emphasized that if errors are made at the design stage, they will spread to subsequent stages, and either additional debugging will be required, or, in the worst case, you must resort to correcting the prototype. The wide choice of UML constructs negatively affects the ability to automatically check whether the diagram contains structural errors, incompatible or redundant components [7]. It takes it also important to be able to assess the optimality of the diagrams for subsequent code generation. You often have to deal with diagrams that need to be adjusted. Some of the changes can be made manually in graphical form. But many adjustments can also be made automatically with the help of specialized tools that have additional functions for checking the correctness of diagrams. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 438–444, 2022. https://doi.org/10.1007/978-3-030-94873-3_55
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As shown in [7], to do this, you need to be able to analyze the description of class diagrams and identify structural problems and errors. In addition, it is useful to have a set of rules for transforming diagrams according to certain design patterns that should help optimize the model.
2 Methodology We will indicate the formal models that are usually used to describe class diagrams; significant part of them use the object constraint language and description logic [1, 2, 4, 7, 8, 10–13]. Verification, which gives practically significant results, is only partially possible for these models. As you know, certain combinations of elements in UML class diagrams are not allowed. For example, it is usually unacceptable to have association and inheritance relationships between classes, it is not recommended to use n-ary associations, and so on. Formal models describing these constraints are complex. To identify errors of this kind, additional analysis procedures may be proposed. First of all, this is the optimization of class diagrams, that is, the replacement of some constructions with other, more optimal ones. Which class diagram is more optimal is not an easy question. For example, the use of many standard design patterns leads to an increase in the number of elements of class diagrams, but improves their quality in terms of subsequent code generation [13]. The optimization problem is related to the search for inefficient fragments of class diagrams. The essence of this approach is that if an inefficient fragment is found in the class diagram, the designer is provided with information about the essence of the problem and is invited to make changes to the class diagram [13]. But it is not enough just to postulate theoretically the possibility of optimizing class diagrams at the design stage. It is necessary to develop the principles of effective implementation of algorithms for optimizing diagrams. In addition, it is desirable to expand the capabilities of existing design tools of information system, rather than create new tools that are unfamiliar to users.
3 Results The following is a set of frequently occurring class diagram fragments that have a more optimal representation form or have errors (Table1). Table 1. Examples of typical unoptimized fragments of class diagrams №
Name of a fragment
Criticality
Reaction
1
Loop (Inheritance of classes)
High
Error
2
Loop (Inheritance of interfaces)
High
Error
3
Loop (Aggregation)
High
Error
4
Presence of two relations between classes: generalization and association
Medium
Error (continued)
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№
Name of a fragment
Criticality
Reaction
5
Autonomous class
Medium
Error
6
Multiple inheritance of classes
Medium
Warning
7
Multiple aggregation
High
Error
8
Loop (Association)
Low
Warning
Duplicate attribute values
Low
Warning
10
9
Pattern, lowering the arity of the association relation
Low
Recommendations for correction
11
Class and association class have the same attributes
High
Error
12
The method code is too long
Low
Recommendations for correction
Source: authors
Let’s look at some examples of typical fragments [3, 5, 9, 11]. The presence of generalization and association relations between the two classes. In principle, there can be two relationships between classes: generalization and association. The fact that there is an association relationship immediately means that objects of the parent class will be created. And the objects of the descendant class will necessarily be associated with the objects of the parent (it all depends on the multiplicity). Then it makes no sense to use a generalization relation at all, so as not to duplicate the attributes of the objects of the descendant and its potential parent. Missing attributes an object that is potentially a child borrows from its previous parent, with which it will only be associated with an association relationship (Fig. 1).
Fig. 1. Presence of generalization and association relations between classes (Source: authors).
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A pattern for lowering the arity of an association. If an n-ary association has a class with multiplicity (1), then the n-ary association can be replaced by a combination of an (n-1)-ary association and an association class. Class diagrams illustrating this situation using the example of a ternary association are shown in Fig. 2 and 3.
Fig. 2. n-ary association (n = 3) Source: authors.
Fig. 3. Decreasing the arity of an association (Source: authors).
Here the example is taken from the sports sphere. It’s about teams, players, and game seasons. It is considered that during the season the player must remain in one club, and can change the club only in the off-season. Then the multiplicity of the ternary association ratio on the part of the club will always be equal to 1. In this case, it is possible to replace the ternary association with a binary plus class association. Consider the followed example. Let’s assume that the subject area includes data about literary works and books as material objects. A literary work as a class is characterized by the following attributes: name, years of writing, table of contents, volume in characters. A book, as a class of material objects, can have the following attributes: number of pages, binding, state, and identification number. Obviously, the attributes of a work are also the
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attributes of a book. You can consider a work as a meta-class consisting of classes-specific works, and books - as instances of specific works. But it is more reasonable to abandon the concept of a meta-class, and consider only two ordinary classes and link them not by a generalization relation, but by an association relation, so as not to duplicate the values of attributes related to a literary work in book objects. The domain model that describes this representation is shown in Fig. 4. Note that the class diagram introduces another intermediate additional class Circulation, which is necessary to avoid duplicating the same values of the Number of Pages and Publisher attributes in the objects of the Book class.
Fig. 4. Introduction of an additional class (Source: authors).
4 Discussion A lot of class diagram optimization tools CASE tools usually have simplified controls that capture only blunders, and no optimization tools at all. The latter is understandable, since there are no generally accepted rules for optimizing class diagrams. But this does not prevent the use of existing methods for describing class diagrams, on the one hand, and a set of optimization rules (of course, not complete), on the other. To extend the CASE tools with the ability to control and optimize class diagrams, you need to do the following: – develop a method for finding non-optimal fragments of class diagrams using available design patterns;
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– to suggest, in some cases, ways to automatically replace the found fragments with more optimal ones. The Rational Software Architect Designer package from IBM is considered as a basic CASE tool. It supports all the major elements of class diagrams. It should be noted that Rational Software Architect is easily extensible with plugins. To find erroneous and suboptimal fragments, you need to know the internal representation of class diagrams for the CASE tool. To store UML class diagrams, RSAD uses the XMI format [3], which is most often used for exchanging UML diagrams between different applications. It stores information about charts in XML format. The redundant form of storage in the form of an XML document is inefficient for implementation algorithms of searching for various fragments of diagrams. For this reason, it is suggested to use another form of storage, focused on a faster search for all the necessary elements of class diagrams. In this case, the diagrams can be presented as a set of directed unweighted graphs for all types of relationships, which are conveniently presented in the form of lists. For detecting errors such as cyclic inheritance, multiple inheritance, or aggregation, as well as fragment disjointness, this form seems to be the most efficient [13]. There are quite a few algorithms that convert from XML format to the system of multi-level linked lists. The problem of finding erroneous and suboptimal fragments in this form of representation is easily solved by iterating through a small number of diagram elements.
5 Conclusion It is concluded that the optimization of information system models should begin at the design stage. The task is to find erroneous and suboptimal fragments of class diagrams from the point of view of subsequent implementation. To do this, we suggest using design patterns. Information notifications about detected errors and inaccuracies in fragments are generated by the system. Then they are analyzed by the analyst, who decides whether the model needs to be modified. The relevance of the method lies in the fact that the optimization of the model is carried out before the programming stage. The implementation of a tool for monitoring and optimizing class diagrams for the Rational Software Architect Designer package from IBM is proposed. As the description of diagrams in Rational Software Architect Designer is presented in the standard XMI format, the developed optimization tool can be used for other software supported this format. The implementation of the algorithms is based on finding typical fragments of class diagrams. The implementation of the algorithms is based on finding typical fragments of class diagrams. To do this, it is proposed to use a system of interconnected lists, rather than a form of storage as XML documents.
References 1. Berardi, D., Calvanese, D., Giacomo, G.D.: Reasoning on UML class diagram. Artif. Intell. 168, 70–118 (2005) 2. Brown, W., Malveau, R., McCormick III, H., Mowbray, T.: AntiPatterns. Refactoring Software, Architectures, and Projects in Crisis. Wiley, New Jersey (1998)
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3. Cali, A., Clavanese, D., Giacomo, G.D., Lcnzerini, M.: A formal framework for reasoning on UML class diagram. In: Hacid, M.-S., Ras, Z.W., Zighed, D.A., Kodratoff, Y. (eds.). In Foundations of Intelligent Systems. Lecture Notes in Artificial Intelligence, vol. 2366, pp. 503–513. Springer, Berlin (2002). https://doi.org/10.1007/3-540-48050-1_54 4. Gamma, E., Johnson, R., Helm, R., Vlissides, J.: Design Patterns. Elements of Reusable Object-Oriented Software. Addison-Wesley, Boston (2001) 5. OMG: XML metadata interchange (2005). http://www.omg.org/spec/XMI/2.1. Accessed 09 Jul 2021 6. Rumbaugh, J., Jacobson, I., Booch, G.: The Unified Modeling Language Reference Manual. Addison-Wesley, Boston (1998) 7. Sergievskiy, M., Kirpichnikova, K.: Optimizing UML class diagrams. In: Nikulchev, E., Bubnov, G. (eds.), Proceedings of the 7th Seminar on Industrial Control Systems: Analysis, Modeling and Computing (ICS 2018), ITM Web of Conferences, vol. 18, p. 03003, EDP Science, Les Ulis (2018) 8. Sergievskiy, M., Konkin, A.: Optimization of UML class diagrams via description logic. Cloud Sci. 4(3), 465–479 (2017) 9. Sergievskiy, M.: Description logic application for UML class diagrams optimization. Int. J. Adv. Comput. Sci. Appl. 8(1), 268–272 (2017) 10. Sergievskiy, M.: Modeling unified language templates for designing information systems. Autom. Documentation Math. Linguist. 54(1), 26–35 (2020) 11. Sergievskiy, M.: N-ary relations of association in class diagrams: design patterns. Int. J. Adv. Comput. Sci. Appl. 7(2), 265–268 (2016) 12. Sergievskiy, M.: Templates of the unified modeling language for designing software systems. Sci. Tech. Inf. Ser 2. Inf. Process. Syst. 1, 19–27 (2020) 13. Sergievsky, M.V., Kirpichnikova, K.K.: Validation and optimization of class diagrams UML. Cloud Sci. 5(2), 367–378 (2018)
Online Management Technologies and Organization of Management Activities M. B. Zhernakova, T. Yu. Krotenko(B) , and I. A. Rumyantseva State University of Management, Moscow, Russia
Abstract. The purpose of the study is to analyze the impact of online management technologies on the possibility of applying classical principles, methods and ways of organizing management activities in modern conditions. The contribution deals with the problems of organizing management in remote forms of its implementation, including issues of business communications, remote solution of current management issues, transformations in the motivation of employees, changes in the efficiency of their work. In the questionnaire survey using the author’s methodology, problems and attitudes to online management of respondents working in the online environment were identified. The methodological basis for the analysis, generalization and conclusions based on the results of the study was the work of foreign and domestic scientists and practitioners concerning the theory and organization of management. Also in the work were used the materials of the official websites of research and educational institutions of the world, which have in the title of the materials the terms “digitalization”, “online management”, “online solutions”. As a result of the research, answers were given to the questions: should the organization of the management process change; what aspects of the activity are affected by the change; what are the prospects for online management. Keywords: Digitalization of management · Management methods · Management principles · Management technology · Online management solutions · Online management technology
1 Introduction Currently, there is an accelerated introduction of online management technologies into the practice of managing organizations. This is due to the increasing use of fully or partially remote, remote work of employees. Control technology, in the general sense of this word, is a system of actions performed in a certain sequence using the necessary methods and technical means. Technology reflects the content of the organization’s management. It is characterized by the processes of movement and processing of information, determined by the composition and procedure for performing management work, during which this information is transformed and affects the controlled object. Hence follows the goal and the main purpose of management technology - the establishment of a rational scheme of interaction between structural units and individual performers in management processes. Based on the given general understanding of management © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 445–452, 2022. https://doi.org/10.1007/978-3-030-94873-3_56
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technology, it can be assumed that the term “online management technology” reflects a certain form of implementation of management actions and applied technical ones. At the same time, the composition and sequence of operations that form the management process, the methods used for decision-making and personnel management should still be determined by how to ensure optimal conditions for the flow of all processes in the organization and ensure the transfer of the control system object from the initial state to the desired one. In 2020, the coronavirus pandemic and the accompanying economic situation led to an increase in interest in online business management and the accelerated development of online management systems [10]. Reengineering and accelerated automation trends are based on the methodology of using the Business Process Management System (BPMS). With the help of notations and business process modeling, for example, transport and logistics companies regulate and analyze the processes for handling parcels and goods, the processes of interaction with customers and partners. The introduction of a business process management system is due to an increase in the quality of their execution and control efficiency, with a one-time reduction in operating costs and time costs. The business process management system acts as the basis for the implementation of a unified corporate system for managing the company’s business processes, as well as related functional information subsystems [6]. In modern conditions, the procedure for introducing new business process management systems occurs in conjunction with general automation and digitalization of business. 47% of Russian companies have elements of the company’s internal infrastructure connected and integrated with each other. At the same time, only 5% of companies are at the upper levels of the hierarchy, reflecting the degree of integration and digitalization of business processes - they have an open system of digitized business processes that can be managed using a corporate information system. We must pay tribute: the modern market of software products and solutions provides companies with complex products for managing both internal and external processes [2]. When implementing an online business process management system in different companies, similar trends can be identified. The first is system integration. It manifests itself in the need to coordinate the corporate system with the functional subsystems of the company or its partners. The second trend in the development of a digital approach to business processes is the popularization of the use of innovative technologies and algorithms. It includes such areas as: automation and robotization of data processing, the use of voice assistants and pick-by-voice technology, augmented reality (AR) systems, for example, in warehouses and distribution centers, the use of online solutions and Internet technology things (IoT) for monitoring and control of the delivery processes of parcels and goods, KPI indicators of the work of couriers. Within the framework of the third trend, one can observe the focus of business process management on the use of online solutions. In 2020, the transfer of most management processes to the online format was provided by VPN technologies, which formed the basis for organizing remote access to the server - company employees were able to work via a remote desktop, carrying out their duties in an online format. An important factor
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in this was the development of digital culture in the company, the development of new services and programs, and the adoption of new models of work. Thus, it should be noted that the basis for the modern development of online management is not just business digitalization, but high-quality integration of the business process management system, corporate system and functional subsystems, as well as innovative technologies and services for automating business processes. For most companies, the use of online management systems has become an integral part of both internal business processes and processes of interaction with customers and partners [8].
2 Methodology The questions that practice today puts before the theory of management are fundamental and relate to many aspects of the activities of organizations. Among them: Should the organization of the management process change? What exactly are the changes in work related to remote control of organizations? What are the prospects for online management? How quickly do you need to react to changes? Are these changes temporary or not? In this study, we considered the issues of organizing management in the context of remote forms of its implementation, including issues of business communications, remote solution of current management issues, changes in the motivation of employees, changes in the efficiency of their work. In the course of the study, a survey was conducted among business representatives, state enterprises, and representatives of science in order to identify problems and attitudes of workers towards online management. Among the respondents, 25% were managers of different levels, 27% were specialists of various professions working in different organizations, 35% were representatives of science, 13% were students of higher education institutions. All respondents at the time of the survey had experience working in the online environment. The text of the questionnaire for respondents included 37 questions concerning the employee’s capabilities and his comfort in switching to remote work; the quality of online communication and its performance; working time costs; establishing mutual understanding among employees in the context of online communication, difficulties in perceiving information; the effectiveness of solving current management issues; evaluating the effectiveness of online work; control over the work of employees working remotely; skills to maintain self-discipline of employees. The methodological basis for the analysis, generalization and conclusions based on the results of the study was the work of foreign and domestic scientists and practitioners concerning the theory and organization of management. Also in the work were used the materials of the official websites of research and educational institutions of the world, which have in the title of the materials the terms “digitalization”, “online management”, “online management systems”, “online solutions”.
3 Results The study analyzed the changes in the organization of management associated with the transition of enterprises to a predominantly remote form of management. Attention
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was focused on the issues of the effectiveness of business communications, the perception by employees of a remote form of interaction, the effectiveness of interaction and cooperation in conditions of remote control, and the effectiveness of work.Employees’ perception of teleworking can be assessed as positive. Thus, 17% of the respondents noted that they rate the remote work format as unambiguously convenient and 50% as rather convenient. At the same time, about 6% of the respondents considered this form of work inconvenient, but rather uncomfortable—about 12%. Thus, employees are emotionally ready to accept telecommuting. However, even with a positive emotional state of mind of the majority of workers, about 33% of them experienced stress when switching to online work. The implementation of management communications in the context of remote control faces a number of problems. Some of them are fundamentally new, that is, those that employees have not had to deal with in a normal management environment. For example, our study, conducted in April 2020, showed that at the first stage of a sharp increase in the volume of remote work, the greatest difficulties were caused by the issues of ensuring mutual understanding and cooperation. Thus, 67% of the respondents noted that the quality of understanding by interlocutors of transmitted messages via remote communication channels is worse than when employees communicate face-to-face. Misunderstanding occurs 25% more often. 43% of respondents noted that more time is spent on online communications. At the same time, 20% estimated that this online communication itself, for various reasons, is implemented more slowly. One of the reasons can be considered that in conditions of online communication one has to devote time to monitoring the passage and perception of information. For example, 25% of respondents said that they have to ask the interlocutors more often if they understood the message. Another 40% noted this need “in some cases”. 30% of employees rated the understanding of the transmitted information through channels of exclusively online communication during remote control and other channels traditionally used in control systems in the same way. Preparing for telecommuting requires much more effort on the part of employees. The results of the survey showed that 25% of respondents estimate that it takes more time just to prepare for online communication than before. This also includes 23% of respondents who noted that more time is required in some cases. Further, it seems logical that when asked about the time spent on doing work, 60% of the study participants answered that when they switched to remote work, they had less free time. Since communications are the daily work of a manager, on which the success and effectiveness of the work of the entire organization and its divisions depend, then, in our opinion, it is necessary to pay attention to the fact that the work of the manager is becoming even more intense. It requires additional effort and the acquisition of new skills. These skills are no less important for performers, since at least two parties are always involved in communications - both the leader and the performer. Additional stress is created by the fact that in conditions of remote work, more effort is required to create a working mood in the interlocutor. This is evidenced by the fact that 55% of the respondents answered that it is more difficult to create a constructive attitude and bring the interlocutor into working condition during online communication. That is, even before the start of business communication, before the transfer of the semantic part of the information, additional efforts are required to prepare the interlocutor for its
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perception. At the same time, in the opinion of 12% of respondents, workers cannot cope with this task. It is obvious that in the future this is reflected in the effectiveness of communications. In the course of the research, the difficulties encountered in solving issues related to the relationship of people in the process of work were also identified. These issues include resolving conflicts, motivating employees, full control of results, resolving issues that are characterized by uncertainty and require creative efforts to resolve. The reason for the difficulties, in our opinion, is that mutual understanding between people is more difficult in a remote format. 73% of respondents believe that it is difficult or completely impossible to understand employee behavior in online communication. 40% of respondents believe that the interlocutors in online communication perceive each other inadequately. 37% believe that the quality of feedback is definitely deteriorating. Hence the difficulties in solving problems that require human communication, and not just the implementation of bureaucratic procedures. According to the study, 30% of respondents note a clear decline in the performance of subordinates working online. Another 53% of those surveyed believe that only a few people have a decline in performance. 20% of respondents note a decrease in the motivation of employees. In addition, another 53% of respondents believe that motivation is declining among some employees. That is, there is a problem of maintaining the activity and desire of workers to do work in new conditions. In part, this problem will be solved by getting used to the new conditions, but, in our opinion, attention should be paid to this problem, since ineffective employees can cause serious harm to the organization in the long term.
4 Discussion In the context of the transformation of the economy in the digital era, information is the main production resource, on a par with energy, materials, and finance. Communication and information technologies are now developing in all areas. Organization management is no exception. Currently, a large number of online systems have been developed to solve the key problems of the organization. These systems cover all levels of enterprise management - operational, tactical and strategic [4]. At this stage, CRM technologies are well established. The definition of CRM stands for Customer Relationship Management, which means “customer relationship management” and refers to all the strategies, methods, tools and technologies that a business uses to develop, retain and attract customers. CRM - the system is suitable for companies of any size and any industry - banks, real estate agencies, large manufacturing enterprises, government agencies, telecommunications companies and many others. Therefore, many companies use such systems to manage their organizations. The use of such systems expands the possibilities of managing an organization, allows planning organizational changes, and more effectively managing current activities [7]. Based on the reports of consulting companies researching the topic of digital transformation of enterprises, it can be concluded that no more than a third of organizations are involved in digitalization and the direct implementation of the digital transformation
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strategy [3]. The crisis caused by the pandemic has intensified the activities of many companies on the implementation of online company management systems, since it was necessary to transfer employees to a remote work format, while ensuring the quality of remote processes, including electronic document management [9]. But only half of the companies considered the crisis a new reason for improving the management system and further automating business processes. For 30% of companies, the market position has deteriorated. The authors of the study point out that this happened not only because of objective external difficulties, but also because of the imperfection of the management system in these organizations. The experience of companies applying modern technologies in management shows the transformation of the nature of management due to the growth of horizontal communications, the increasing spread of adaptive principles, and the introduction of the concept of a self-learning organization. Greater flexibility in management is associated with the impact of technological advances on changing the nature of competition, which is increasingly fierce and cannot be ignored. Company executives must respond in a timely manner to exceptional circumstances identified by intelligent algorithms and do things that machines cannot do [5]. On the other hand, technology is seen as a powerful driver of organizational change. It affects the activities of the entire enterprise: organizational results, management structure, work schedule, information flows, decision-making, individual productivity and company efficiency.
5 Conclusion Thus, online technologies create a certain form of governance. At the same time, the question arises: does this new form affect the possibilities of using classical management theory - principles, management methods, certain leadership styles, forms of communication, methods and methods of decision-making? This issue is extremely relevant today, since the introduction of remote technologies into the practice of control, which previously moved slowly, has recently received rapid development. In the practice of managing organizations, many new problems have appeared that require their understanding and solution. Today, the prospects for the widespread introduction of online management technologies seem quite real. It would hardly be correct to evaluate the practice of remote control as a temporary phenomenon, since this form has its positive aspects. And, consequently, management theory needs to respond quickly to changes in practice in order to analyze the validity of the known theoretical provisions and assess the possibility of their application in the practice of organizations in the changed conditions [1]. The modern business environment is characterized by extreme mobility associated with the processes taking place in the global economy, including the crisis phenomena that inevitably leave an imprint on business. At the same time, the conditions for managing organizations are changing, which sometimes leads to a certain slowdown in management processes. This is inevitable, since the transition, for example, to remote control requires a restructuring of both the management processes themselves and the thinking of employees. In this situation, the speed of introducing new processes, mastering the operations of their components, depends on the ability of managers to quickly
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change the methods of organizing, controlling, coordinating the activities of employees. This, as a rule, is determined by the personal qualities of the leader - the ability to analyze the situation, organizational skills, the ability to communicate effectively, etc. That is, each leader, acting in a situation of uncertainty, intuitively finds his own way to solve the problem and does not think about theoretical questions. In our opinion, the main changes required by the remote control relate to three main aspects. – organization of the activities of employees, including the establishment of interaction and cooperation in conditions of almost contactless work, which is not always and not comfortable for all employees. The technology of their work can change significantly, and sometimes changes also affect the content of the actions performed; – information and technical support of management processes. Moreover, this concept can be included as the provision of employees with all the necessary for work technical means and office equipment, software, the necessary level of information competence; – organization of managerial communications, which in the conditions of online management acquire even greater importance and require special attention, since the necessary exchange of information cannot be provided without the purposeful work of managers and specialists. The directions of changes listed above in the process of using online management technologies, in our opinion, will continue to rely on the classical principles of management. The form of management activity does not abolish its basic principles, but it can make changes to particular principles concerning the organization of joint work and communications. Over time, the number of these changes will increase, as there will be changes in the methods of management. And in this case, too, we are not talking about basic, classical groups of management methods, but rather about private methods, for example, decision-making, methods of motivating employees, methods of control, etc. Changes in management, which have recently been forced for many organizations, can remain in practice forever, since many leaders and performers have realized both the convenience and their economic benefits.
References 1. Gureev, P.M., Degtyareva, V.V., Prokhorova, I.S.: National features of forming a digital economy in Russia. In: Popkova, E., Sergi, B. (eds.), Artificial Intelligence: Anthropogenic Nature vs. Social Origin. ISC Conference - Volgograd 2020. Advances in Intelligent Systems and Computing, vol. 1100, pp. 13–20. Springer, Cham (2020). https://doi.org/10.1007/978-3-03039319-9_2 2. Kurbonzoda, M.R., Gibadullin, A.A., Morkovkin, D.E., Nesterenko, J.N.: Assessment of factors hindering innovative development. J. Phys. Conf. Ser. 1679(3), 32065 (2020) 3. Kuzmina, E.Y., Alibekova, A.B., Soklakova, I.V.: Implementation of electronic document turnover as a factor of increasing the management effectiveness in the digital economy. In: Popkova, E.G., Ostrovskaya, V.N., Bogoviz, A.V. (eds.) Socio-economic Systems: Paradigms for the Future. SSDC, vol. 314, pp. 1553–1563. Springer, Cham (2021). https://doi.org/10. 1007/978-3-030-56433-9_161
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Configurations and Dominants Management Organization Interaction A. V. Raichenko1(B) , G. V. Avetisyan1 , and V. V. Maslennikov2 1 State University of Management, Moscow, Russia
[email protected] 2 Plekhanov State University of Economics, Moscow, Russian Federation
Abstract. The research presented by the publication substantiates, defines and positions constructive configurations and priority dominants, analyzing them as key tools for modeling the management of the organization of interaction. For a reasonable setting and adequate achievement of the formulated goal, the study adapts and applies a wide range of modifications of the process approach, providing an integrated presentation and holistic construction of the developments carried out. In modern conditions of interactively expanding communication of market participants, it is the organization of interaction that becomes a key resource, targeted mobilization and effective management, which can ensure sustainable and progressive socio-economic development. Keywords: Dominant configuration · Interaction · Management · Organization
1 Introduction Purposeful expansion of opportunities and assistance to the interactive development of communications of market participants actualizes the tasks of ensuring the formation of new solutions for building the organization of interaction and managing these processes. The global digitalization program had a powerful modulating effect on the strengthening of such trends, opening up fundamentally new prospects for substantiating, building and modernizing modern market communication [8]. In solving these problems, the development, testing and adaptation of combinations of adequate configurations and key dominants of the construction and implementation of processes and management systems for organizing interaction, substantiated by the materials and results of the research presented in this publication, acquire a very special, constructively decisive importance. Interaction, as an object of targeted influence, is traditionally considered by a number of studies from various angles and positions, demonstrating a fairly diverse concept, understanding and application [11]. This is due to the consistent increase in the decisive importance of ensuring constructive communication in the construction and implementation of a constantly expanding spectrum of the most diverse interactive contacts of a modern organization. Definition, introduction into circulation and applied use by an © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 453–461, 2022. https://doi.org/10.1007/978-3-030-94873-3_57
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increasingly wide range of researchers and practitioners of the word combination “interaction management” [10]. Makes it necessary to analyze the validity of its formulation and application, which led to the study presented in this publication. If several independent actors participate in the real processes of establishing communication and organizing interaction, the formulation and application of the concept of controlling one of them by the actions of another can hardly be fundamentally justified. It is more appropriate to determine the need for and the possibility of participation of each of the subjects in the management of the organization of their own actions to establish and improve effective interaction. The construction of communications, planning and implementation of constructive configurations organized on their basis with the establishment and development of key dominants of their implementation determines the organization of interaction as an object of control. All this was the basis for the formulation and conduct of research and development, the materials and results of which are presented in this publication.
2 Methodology The initially distinguished process format for determining and studying the genesis of the organization of interaction necessitates the formulation of an appropriate methodology for their implementation. The rationale and positioning of the management of the organization of interaction as the subject of analysis, development and recommendations determined the choice of the process approach with the adaptation of its formulation and application as a methodological basis, presented in this publication of research. Such a choice is not only justified and conditioned, but also necessary since it is the processes that represent all these three components: management, organization and interaction, which are objectively considered, both separately and in aggregations of the concepts they define. A wide range of the most diverse manifestations of the organization of management and interaction processes is most constructively and adequately represented by the configurations of their construction and implementation. Identification, study and presentation of configurations, defined in the encyclopedic interpretation, as: “mutual arrangement” [7] allows you to establish, explore and use the most constructive constructions of the organization of interaction as a direct object of targeted influence of subjects participating in communication. The key dominant of its emphasis, which forms the priority of the subject orientation of the adaptable configuration, is encyclopedically interpreted as: “dominant position” [7], purposefully ensures the achievement of the key goal of a specific stage of managing the organization of interaction. In applied application, the dominant emphasizes the emphasis on the organization of interaction on such priorities as: establishment, build-up, optimization, ensuring appropriate adaptation [6]. This understanding determines the selection and aggregation of tools for the formulation and application of the process approach in the study presented in this publication. As not only adapted, but purposefully oriented and substantively “sharpened” toolkit of the process approach to the study of management of the organization of interaction, a range of combination of tools and methods of their application was used, the most significant of which are represented by such modifications as:
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– identification, definition and positioning of stable configurations of the organization of interaction, as a subject of research and the impact of control subjects, through the use of retrospective search, analysis and classification; – definition, determination and specialization of the formulation of tasks for managing the organization of interaction with their purposeful cooperation for programming digital procedures for the construction and development of communications; – comparison, identification and positioning of priority trends and constructive methods of managing the organization of interaction by consistently studying and evaluating their processes and results; – sampling, research and description of the most demanded configurations, dominants and their combinations for substantiation, testing, adaptation and rationalization of interaction management algorithms; – establishment and qualification of the composition and content of participants and communications of the organization of interaction by logical decomposition of examples of effective combinations of configurations and dominants of their implementation; – forecasting promising structures and modernization of interaction based on modeling a combination of configurations and dominants of managing the organization of communications and their use. In real conditions, the presented toolkit defines and proposes for use not only individual positions, but to an even greater extent their various aggregations most adapted to specific parameters of use [3]. So, modeling a combination of configurations and dominants of managing the organization of interaction requires a comparison of trends, forming a constructive a programming platform for digital procedures for establishing and using communications. In practice, the use of such aggregations is constructively complemented by the mobilization and use of tools of such classical approaches as: systemic, structural, complex [1].
3 Results The analysis of the rationales and positions of the correlation between the need and the possibility of managing the organization of interaction demonstrates the increasing demand for the research presented in this publication. It is clear that the introduction into practice of the proposals developed in this regard will require their deeper approbation and adaptation to real conditions and established trends in the construction and improvement of communications. At the same time, the already given in this publication and other well-known examples of successful management of the organization of constructive interaction confirm the necessity and possibility of formulating and implementing the presented concept with the following results: 1. Functionally meaningful research has identified, identified and positioned a wide range of manifestation, implementation and establishment of opportunities for managing the organization of interaction. On this basis, the concept of combining configurations and dominants of managing the organization of interaction was developed,
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considering, as a basic condition, the preservation of the independence of the participants and the independence of their influences. The basis of this concept was the variable positioning of the combination of configurations and the dominants of their formation, which ensures the approbation, adaptation, and modernization of the organization’s management interaction, through the development and implementation of an independent targeted impact by each interested participant. As the first, not only by the importance and relevance of use, but also by the logic of establishment, universality of adaptation, continuity of application and development, a backward-forward configuration is positioned, which is indicatively called “shuttle”. Using the most simple, understandable and demanded two-way communication, carried out in the format of establishing direct interaction between two stakeholders, it allows you to quickly clarify, agree and resolve a wide range of issues of organizing constructive interaction. The versatility of this configuration allows an unlimited increase in the number and variety of both participants and the actual interactions, becoming the primary link in the management of most of the more complex structures. The most demanded is the centralized-beam configuration, which ensures the development of direct communications of the key subject in an unrestrictedly growing sphere interested in the direct interaction of the parties. Such an organization builds a stable interaction of the manufacturer of goods and services with regular customers, buyers, consumers, figuratively represented by the “star” configuration. The stability of this structure is confirmed by the efficiency of the functioning and development of many natural organizations, ergonomically ensuring the relative independence of the center from changes in the composition of beam communications, up to maintaining the regeneration of the most demanded positions. Ring configurations, built, for example, according to the technological cycles of production cooperation, become much more dependent on the preservation of the stability of the composition and, first of all, on the derivative-successive sequence of the organization of interaction. In them, the logically conditioned, stable interest of the participants in technologically fixed and well-programmed interactions becomes the main optimization loop. Replication of the configuration of the cyclical organization of interaction becomes not only a factor ensuring the stability of its functioning, but also a powerful innovative resource for building up additional communications. A vivid model for the implementation of these trends is the packaging of cycles on the basis that acts as a dominant in the construction of a common axis, positioning them in a spherical “3D” format of the combination and interaction of more and more new structures, completing the harmony of integral constructions. By breaking the chain of successive, meaningful interactions of technologically interested participants in a periodically repeating cycle, the inevitable modernization of procedures gives rise to the formation of a linear variation of this configuration. Historically called “conveyor belt” it is being used more and more widely in external aggregating interactions of production, logistics, retail, providing not only direct promotion, but also reverse information and analytical contours for assessing the demand along the trajectory used configuration. Logistic “aggregators” for the provision of transport services have become a vivid example of the formulation and application of this construction in different legal and socio-economic conditions of
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the countries of the location. The accumulated paradoxes of using this configuration demonstrate the growth of a number that do not yet have a constructive solution to the problems of aggregation, which actualize the relevant studies of managing the organization of interaction. In a really developing market environment, it is considered completely natural that not all interactions are not only available, but also initially focused on the organization and, moreover, its management. Understanding of this comes with the immersion of research in the formulation and application of, for example, real market pricing mechanisms, in which attempts to manage the organization of interaction are made as persistently as they are not very effective. This is due to the probabilistic nature, which leaves enough degrees of freedom for organizing interaction in conditions of high turbulence and limited predictability of changes and the consequences of market transformations. At the same time, constructive attempts to formalize these and similar effects on the organization of interaction, developed on the basis of innovative digital technologies, convince of the need to justify both the corresponding configuration, figuratively called “turbulent”, and the priorities it demanded. Dominants: «establishing», «building», «optimizing», as established and maintained priorities for managing the organization of interaction and ensure the construction of a holistic model, the adaptation and application of which forms the necessary conditions for its positioning and use. As such, combinations of configurations and dominants of optimization of management of the organization of interaction are distinguished in accordance with the chosen strategy. Establishment of constructive interaction, defined as the most difficult task, is carried out in an evolutionary and purposeful manner, which determined its characteristic with an appropriate combination of configurations and dominants. The purposefulness and constructiveness of the participants’ actions generated and carried out on this basis makes it possible to qualify these processes as managing the organization of interaction. For only established interactions, the dominant feature is the construction of the primary configuration of their formation, the most constructive basis of which is the traditional vector positioning for understanding the mechanism. Combinations with configurations that are installed, adaptable and built up on the common axis of the organization of interaction create constructive conditions for a targeted management impact on their construction and use. This makes it possible to stabilize the combination and application of an adaptable configuration for managing the organization of interaction as an object of targeted impact. The most vivid example of the formulation and application of the dominant of the axial construction was the packaging of standard solutions of parent companies for the selection and adaptation of replicated configurations under “franchising” agreements. The management of the organization of interaction, applied by any subjects, needs permanent modernization, which ensures the harmonious development of relations between the participants and communications. The constructive solution of these tasks ensures the achievement of the most perfect models of management of the organization of interaction, reflected by the dominant of its optimization. With an understandable, comprehensive assessment of the importance of such an achievement in managing the organization of interaction, it also provides a preventive resolution or relief of most of the inevitably arising contradictions. This emphasis on
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managing the organization of interaction emphasizes the complexity of constructing the main results of the research and development carried out.
4 Discussion The key problem of formulating and conducting research on managing the organization of interaction is manifested in challenging the very possibility of such, dividing researchers and practitioners into two opposing camps. Supporters of mobilizing resources for managing the organization of interaction not only admit, but methodologically substantiate the necessity and possibility of developing and applying certain forms of constructive resolution of this most important communication problem [3]. Skeptically evaluating such approaches, as noted above in this publication, in principle, do not admit the possibility of using any management tools in solving problems of constructive communication on the grounds that there are initially no hierarchical relations between the participants in the established interactions [9] Naturally, that such significant contradictions require a substantive study and a reasonable solution of problems that determine the relevance and prospects of scientific research and constructive development, represented by this publication of the concept. The constructive resolution of these contradictions is based on the formulation and application of a process approach to the organization of interaction, which is admitted by the majority of researchers and practitioners of both camps in the format of the regular functioning of the control mechanism. The adaptation and use of its tools, presented earlier in this publication, allow us to define as a direct object not the interaction itself, but precisely its organization, as a set of purposeful actions to streamline constructive communications, oriented by the dominants of their application. This also makes it possible to coordinate the corresponding actions of interested management entities to ensure a targeted combination of selected configurations and accepted dominants in the process of participating in the organization of interaction of each interested party. Based on the results of a retrospective analysis, the developments showed that as a significant contradiction in the formulation and resolution of management tasks for the organization of constructive interaction, purposefully formed or indirectly emerging attitudes of the participants towards dominance appear. In turbulently developing market communications, some of them, this intention manifests itself in the format of consolidating the status, which must ensure recognition of significance, obtaining preferences, and promoting goods and services. Meanwhile, a really constructive and sustainable interaction, as evidenced by current research [11], based on equality of opportunity, parity cooperation, mutually beneficial development. It is these principles, their modifications and adaptations that underlie the formulation and application of the results and conclusions of the study presented in this publication. The most interesting and indicative illustration of the management of the organization of interaction of an exceptionally wide range of producers, translators and consumers of energy resources was the introduction of differentiation of daily tariffication. Resolving the key contradiction of overloading capacities and networks, self-regulating configurations of interaction based on the dominance of tariff differentiation ensured the “smoothing” of the schedule of daily consumption and production, respectively [2].
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The use of process tools here ensured the management of the organization of interaction in the mutual interests of all participants, reducing the load of critical capacities, on the one hand, and the cost of paying for consumed resources, on the other. The versatility of such a combination of configuration and dominant management of the organization of interaction is used in the Moscow Metro [4], which has established preferential tariffs at congested stations during unloaded periods. The use of similar combinations demonstrates the effectiveness of managing the organization of interaction between PJSC Russian Railways, retail corporations, and other formations [1], which directly and indirectly commute with an almost unlimited number and variety of counterparties. The results of this application confirm the possibilities of effective management of the organization of interaction based on a combination of accepted configurations and selected dominants, without violating independence, departmental, subordination and other hierarchies and communications. Skeptics argue that, in fact, the organization of such interactions is provided by centralized influences of a higher level, administratively subordinating the reaction of all participants to agreement [5]. Such assumptions can even theoretically be allowed only in the alignment of the sectoral hierarchy, which really allow regulating the establishment of interactions, but only exclusively in an intra-sectoral format. In self-regulatory relations, sectoral departments do not extend their powers to counterparties of consumption or use of other industries, sectors, regions. This was clearly manifested in experiments on the organization of intersectoral interaction, which for a long time did not find constructive permission on an administrative basis: economic councils, territorial production complexes, industrial centers [1]. The transition to market relations of independent subjects provided the possibility of managing the organization of fast, effective, sustainable interaction, established and developing by harmonizing the interests of the participants. This does not mean that the state is completely eliminated from the influence on ensuring the clarification of the problems of effective interaction between the participants of the free market, the development and implementation of appropriate solutions. Its main task is to provide conditions for constructive organization of interdepartmental, interregional, inter-level interaction. It is solved, for example, by the system of interdepartmental electronic interaction on the platform of “State Services of Electronic Government”, developed within the framework of the administrative reform launched at the end of 2020 [3]. Maintaining and improving the constructive conditions for organizing interaction becomes the main task of the participation of state bodies in resolving this problem. Recently, the tendencies of increasing external destructive influence on the organization and the implementation of effective interaction of the parties not directly participating in it have become more and more clearly manifested. They are manifested, for example, in hypocritical interference in the organization of constructive interaction between the Russian company Nord Stream 2 AG, the French ENGIE, the Austrian OMV, the Anglo-Dutch Royal Dutch Shell, the German Uniper and Wintershall.2 through US sanctions [12]. Implemented in the interests of third-party actors, such tendencies become the consequences of attempts to disorganize the constructive interaction of specific participants in positions of interest to them. This confirms the growing importance of the organization of interaction, which must be ensured by management, not only by the
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actually built combinations of configurations and dominants, but also by maintaining their stability in the face of open or latent destructive influence of “stakeholders” [12].
5 Conclusions The materials presented in this publication and the results of the studies carried out confirmed the relevance, possibility and prospects of substantiating and developing a combination of configurations and dominants for managing the organization of interaction as follows: 1. A wide range of studies, the diversity of identification and the complexity of the analysis of real structures and tested structures allows to substantiate the composition and content of the presented developments. Approbation and application of the findings of the study confirm its novelty, significance and relevance to science and management practice. 2. The combination of configurations and dominants of managing the organization of interaction in a market environment is characterized by the complexity of definition, presentation and use. Even more questions are raised by the formulation and application of developments in planning and forecasting the development of interactions and reactions to their changes, requiring special management. 3. Lack of predictability, variability of the external environment have a significant, and, in emergency situations, the impact that determines the organization. Its influence can be so great that it allows the cancellation of the achieved combination of configuration and dominant management of the organization of interaction, for example, “… in circumstances of force majeure”, which will require operational impact. 4. The adopted legislation and, to an even greater extent, the content of bylaws are more and more actively revealing the forms and content of the organization of legitimate interactions, emphasizing their importance in the progressive socio-economic development. This creates the necessary conditions for the construction of constructive combinations of configurations and dominants of management of the organization of interaction, ensuring the improvement of the legal basis for its construction. 5. The results obtained are of particular importance in connection with digitalization, which opens up new possibilities for managing the organization of interaction with information support for the combination of configurations and the dominants of its implementation. Fundamental and applied research and development of this promising area are becoming one of the defining trends in the innovative development of managing the organization of interaction of almost all stakeholders. Conclusions that are consistently revealed by the conducted studies of managing the organization of interaction confirm the need and demand for their promotion and development.
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References 1. Antonov, V.G., Raychenko, A.V., Latfullin, G.R.: Modern Approaches to the Organization of Management. GUU, Moscow (2021) 2. Avetisian, G.: Energy models used in managing the interaction of organizations, and their varieties. Sodruzhestvo 7, 55–58 (2017) 3. EOS: Public services and document management of authorities in electronic form (2021). https://eos.ru/eos_products/solution/gosudarstvennyy_sektor/. Accessed 04 Apr 2021 4. Federal Agency for Railway Transport: Documents (2021). http://www.rlw.gov.ru/doc uments. Accessed 04 Apr 2021 5. Ganga, I.: Organization of interaction between the state and business. Omni Scriptum Publishing, Saarbrucken (2021) 6. Makoveeva, V.V.: Networking is a key factor in the development of integration of education, science and business. Bull. Tomsk State Univ. 354, 163–166 (2012) 7. Ministry of Culture of the Russian Federation: BRE big Russian encyclopedia (2021). https:// bigenc.ru/ Accessed 04 Apr 2021 8. Raichenko, A.V., Gromova, O.N., Sundukova, G.M.: Creation and use of management resources based on corporate digital platform. In: Popkova, E.G., Ostrovskaya, V.N., Bogoviz, A.V. (eds.), Socio-economic Systems: Paradigms for the Future. Studies in Systems, Decision and Control, vol. 314, pp. 1221–1229. Springer, Cham (2021). https://doi.org/10.1007/9783-030-56433-9_128 9. Silenko, O.: Organization of interaction between systems of the enterprise and production management level. Rational Enterp. Manage. 1, 4–6 (2012) 10. Suzdaleva, G.: The interaction of organizational management levels as a factor in increasing innovative activity. Vestnik Univ. 9, 2528–2534 (2014) 11. Varvarin, A.: Corporate practices for organizing interaction. Bus. Soc. Power 27, 136–141 (2018) 12. Vedomosti: The operator has assessed the readiness of Nord Stream 2 (2021). https://www. vedomosti.ru/business/news/2021/02/22/858903-nord-stream-2/. Accessed 04 Apr 2021
Value Management Platform in the Digital Environment G. V. Serebryakova(B) , I. V. Nezamaykin, and T. B. Shramchenko State University of Management, Moscow, Russia
Abstract. This contribution analyzes the management development in the digital economy. The purpose of the work is to prove the change in the essence of management as a process of interaction between various participants, and to substantiate the value basis of relationships. The prerequisites for the transformation of management processes were identified. Based on the theory of value management, the authors substantiate the value character of the interaction processes, the quality of which directly depends on the level of value correspondence of the participants’ behavior models. The main result of the research is the proof of the development of the value management paradigm in a digital society. The stability of the functioning of any socio-economic system depends on the level of value consistency of the behavior of its external and internal stakeholders. Building interaction on the basis of jointly accepted values becomes the key to the success of the further functioning of organizations. The novelty of the material presented here lies in the justification of the transition to the value basis of management, where the subject of management is a coordinated system of values. Keywords: Interaction · Value correspondence · Values · Value management · Value platform
1 Introduction The modern world has been characterized for several decades through the concept of the VUCA environment: volatile, uncertain, complex and ambiguous, but only the changes caused by the spread of the pandemic made us think about the true meaning of the ambiguity of the business environment. It is necessary to learn not only to live with uncertainty, but also to extract opportunities from it – there will be no other reality anymore. The pandemic has proved that now we will have to live in conditions of unpredictability with a high rate of variability of operating conditions. Facing a new threat, humanity realized the need to strengthen ties between various participants in the business landscape. The socio-economic system alone will not be able to survive. The unpredictability of the state of the business environment, a huge number of information links between participants, leads to the transformation of the management object, turning it from a socio-economic system into a network of interacting participants [10], the strength and stability of their interaction determines the duration of the life cycle and the success of the functioning of any organization. Management should focus on the regulation of relations arising © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 462–467, 2022. https://doi.org/10.1007/978-3-030-94873-3_58
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in the process of participants’ interaction [2]. Organizations face new goals: to learn how to interact with other actors of the business landscape, to find areas of common interests and always turn conflicts into mutually beneficial situations for all participants of the interaction. The goals of organizations should be based on taking into account the interests of various participants who form a kind of “informal coalition” [4] without which the process of creating value becomes impossible. A paradoxical situation arises: the faster digital technologies develop, the more the need for the development of management increases not so much as a process of influence, but as a process of interaction between various participants. A new value is the understanding that management itself is a process of constant learning and development, both of the interacting participants [6], of the socio-economic system itself, and of each of its elements. Organizations should learn how to manage interaction, monitor their state, design possible “gaps” and their consequences. All participants of the business space are forced to realize that the management technologies that were used earlier are becoming irrelevant. We need a new understanding of the implementation of management processes, without which it is not something to develop, it is not possible to survive in the VUCA environment.
2 Methodology All these factors are proof of the need to change the mechanisms and technologies of management. The further development of both individual organizations, industries, and entire economies of countries depends on the ability to go beyond the usual framework of managerial thinking to find new approaches to solving emerging problems. Changing the conditions of functioning of socio-economic systems is a determining condition for the transformation of management concepts [1]. The emergence and constant increase in the number of information links shifts attention in management to the concepts of “value” and “relationship”, their essence and nature are changing. The emphasis in the activities of organizations is moving from defensive strategies to partnership and cooperation strategies aimed at taking into account the interests of all participants in interaction. Competition, as a struggle of one company over others in the traditional form, doesn’t exists any more. The success and viability of each participant in the business space depends on the results of the functioning of others. Building management as a process of increasing interaction is a critical resource for the existence and development of socio-economic systems. The platform of such management is the value attitudes that ensure successful interaction between the participants. The transition to the value paradigm changes the understanding of the essence of the socio-economic system, which is now identified as an active participant in the business space, whose existence is impossible without a constant process of interaction. One of the factors of ensuring the negative entropy of the organization is the ability to maintain and develop relationships with various participants in the business space. The ability to create and expand a network of participants in relationships plays a key role in the formation of competitive advantages. The ability to increase the value of relationships becomes an important competence of the socioeconomic system, and the stability of relationships increases the competitiveness of all interaction partners.
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In the context of the development of the digital environment, the basis of interaction is not bureaucratic procedures, but trusting relationships of compatibility of goals formulated on agreed values [5]. Management in modern conditions is not a bureaucratic process built on formalized procedures, the creation of values shared by partners, focused on obtaining mutually beneficial results, becomes a priority. The increase in the number of information links between socio-economic systems brings to the fore the research of the value basis for their establishment, the most important in the conditions of the unpredictability of the external environment is the definition of the basic principles of partners’ behavior that allow predicting their possible actions in the process of interactions. Based on the essence of interaction, as the establishment of a certain type of relationship between the participants, we consider it most correct to be based on the value concept of management. The proof of this statement, in our opinion, is the fact that the establishment of any links, relations is based on a value platform. Relations develop between the participants of the business space only when they are significant for any of them, i.e. the value of the relationship can be transformed into an additional economic value, building the potential of socio-economic systems. The results of the study of Dolan & Garcia [3] revealed the value dimensions of interactions: – economic, which is expressed in increasing efficiency by increasing the value of interaction; – social, which manifests itself in increasing the coordination of the value basis of interactions between participants; – emotional and cognitive, forming new conditions for joint activities on the basis of trusting relationships. This proves that in modern conditions, the success of the organization’s activities depends on the development of creativity in establishing relationships, trust, partnership, and participation. In order to ensure that these values are accepted and followed in behavioral models, the organization should build a process of value-based interaction management, which includes: – value monitoring of participants’ behavior patterns in the interaction processes which were carried out earlier; – value screening aimed at anticipating the identification of value distortion of participants’ behavior caused by a change in the organization’s policy, deterioration of its financial condition, etc.; – value design of the implementation of interaction processes in the future; – formation of a coordinated value system for the implementation of joint actions of participants. If the organization demonstrates consistency in the applied methods, socially responsible behavior, honesty and conscientiousness in the implementation of the assumed obligations, then the partners decide to increase the number of relations, if the occurrence of a value distortion in the partner’s behavior is predicted during the research, then
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the participants in the interaction can decide in advance to adjust the communication system in order to neutralize negative consequences.
3 Results The further functioning of socio-economic systems in the digital environment is possible only on the basis of establishing stable ties with external and internal participants of interactions. In modern realities, the purpose of the functioning of socio-economic systems is the creation of value, the level of which directly depends on the consistency of the value attitudes of the participants in the interactions. The economic factors of development are almost exhausted. Therefore, organizations need to realize that the key factors of successful development lie in the value component of the organization’s potential. The process of interaction has moved to the value plane of building relationships, now the effectiveness of any company’s activities directly depends on the ability to achieve value consolidation of participants. The unidirectionality of the reactions of the participants in the process of relationships can be ensured only on the basis of uniform principles for the implementation of actions. If one of the participants begins to neglect the interests of others, acts to their detriment, violates the principles of partnership and cooperation, not only the destruction of trusting relationships occurs, but also the destruction of the value created by all participants in the interaction. The speed of information dissemination in the digital environment is the most important factor in the appearance of reputational risks [7]. Information about the “destroyer of business ties” almost instantly becomes the property of all members of the business community. That is why an organization should be able to monitor the value landscape of the business environment, aimed at identifying value requests and claims to it from society and other participants in the environment. An important characteristic of socio-economic systems in the conditions of transition to a value-based management platform is the value consistency [8], which can be assessed through the level of social morality of the organization, i.e. following the accepted system of values that the object is guided by when organizing interaction with other participants in the business environment. In our opinion, cooperation, trust, and partnership are the main principles on which relationships should be built [9]. Therefore, before entering into interaction with other socio-economic systems, it is necessary to conduct a selfassessment of the value consistency and diagnosis of this parameter in the interaction partners. The higher the level of this indicator in the socio-economic system is, the more attractive it is for establishing and maintaining stable relationships with it. The level of value consistency is the basis for strengthening trusting relationships between interaction partners.
4 Discussion In modern conditions, the result of the activity of any organization is the creation of value, and not just the release of a product or the provision of a service to meet needs. The process of establishing and maintaining stable ties between participants becomes a priority in the interaction system, which increases the role of the emotional, behavioral
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and spiritual components of the organization’s functioning. Management moves to the plane of planning, organizing, coordinating, controlling and motivating interaction on a value basis. It becomes possible to obtain an increment of value only as a result of ensuring productive interaction, based on agreed value settings. In the context of the development of the digital environment, management is changing its content, now in order to obtain economic results, it is necessary to transform the social environment, not only within the organization, but also to rebuild the system of its relationships in the business environment on a new coordinated system of values. The management is moving to a value platform that allows building competent interaction with partners, increasing the economic potential for all participants of interaction. The forms of relations, their reliability, identification of the uniqueness and significance of the contribution of each of the participants in the interaction are the most important factors of value creation, each element of the business environment should realize that the level of value created on the basis of the general principles of the organization of relations is much greater than the sum of values created by disparate participants. Management in modern conditions is focused on the creation of relational capital, [9] providing a synergy effect.
5 Conclusions The conducted research confirmed the authors’ hypothesis that the further development of organizations in the digital environment is value-oriented. Interaction between participants in modern conditions should be based on a value platform. The transition to a value-based management platform requires the transformation of methodological approaches focused on the study of socio-psychological aspects of the interaction of socio-economic systems. Any interaction is the realization of the value-activity aspect of the organization’s functioning. Organizational innovations in the digital environment are based on the value basis of interaction, since an increase in the number of information relations leads to a shift in the focus of management on the socio-psychological nature of the organization. There is a transition from considering the organization as a hierarchical system to studying it as a set of relations between a large number of external and internal participants. Building management on a value platform will reduce the level of unpredictability of the external environment, due to the value prediction of the behavior of the interaction participants, the development of joint actions to overcome the negative impact of the business environment, will strengthen the adaptability and speed of response of the participants in the relationship. The novelty of this study lies in the proof of the transition from the construction of management as a process of influence to the process of building interactions based on agreed value attitudes. Acknowledgments. The materials presented in the contribution are the result of research conducted with the support of the State University of Management. The university’s assistance contributed to the organization of a broad discussion of the problems posed in the scientific environment. The authors thank the publishing house for the opportunity to publish research materials for the wide scientific community to get acquainted with them and expand the scientific discussion on the issues of value management.
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References 1. Aptekman, A., Kalabin, V., Klintsov, V., Kuznetsova, E., Kulagin, V., Yasenovets, I.: Digital Russia: the new reality of “Electronic resource” (2017). https://www.mckinsey.com/ru/ ~/media/mckinsey/locations/europe%20and%20middle%20east/russia/our%20insights/dig ital%20russia/digital-russia-report.pdf. Accessed 11 Apr 2021 2. Degtyareva, V.V., Bakhtina, S.S., Tatenko, G.I.: Stakeholder engagement in the management of innovative territorial development: a platform approach. In: Popkova, E.G., Sergi, B.S. (eds.) ISC 2020. LNNS, vol. 155, pp. 1563–1572. Springer, Cham (2021). https://doi.org/10. 1007/978-3-030-59126-7_171 3. Dolan, S., Garcia, S.: Value-based management. Corporate survival guide. Successful life and the ability to make money in the 21st century. Pretext, Moscow (2018) 4. Frooman, J.: Socially irresponsible and illegal behavior and shareholder wealth: a metaanalysis of event studies. Bus. Soc. 35(3), 221–249 (1997) 5. Gummesson, E.: Total Relationship Marketing: Rethinking Marketing Management from 4Ps to 30Rs. Butterworth-Heinemann, Oxford (1999) 6. Popov, E.V.: Network Economic Interactions. Yuright, Moscow (2019) 7. Rybakov, O.J., Gavrilova, J.A., Kalashnikova, N.A., Falaleeva, I.N.: Algorithms of human activity in the digital age: the problem of preserving traditional values. In: Popkova, E.G., Sergi, B.S. (eds.) ISC 2020. LNNS, vol. 155, pp. 558–566. Springer, Cham (2021). https:// doi.org/10.1007/978-3-030-59126-7_63 8. Serebryakova, G.V., Musaelyan, I.K., Nezamaykin, I.V.: Methodology for the Development of Value Management of Socio-Economic systems. CRNS, Novosibirsk (2015) 9. Serebryakova, G.V., Nezamaykin, I.V., Shramchenko, T.B.: Social aspects of eco-systems development in the digital economy. In: Popkova, E.G., Sergi, B.S. (eds.) ISC 2020. LNNS, vol. 155, pp. 490–498. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-591267_55 10. Tuguskina, G.N., Rozhkova, L.V., Taktarova, S.V., Salnikova, O.V.: The role of human capital in the digital economy. In: Mantulenko, V.V. (ed.), Proceedings of the International Scientific Conference “Global Challenges and Prospects of the Modern Economic Development”. The European Proceedings of Social and Behavioural Sciences, vol. 57, pp. 953–959. European Publishing, London (2019)
Comparative Analysis of the Product Management Application in Startups of Different Types B. E. Tokarev(B) State University of Management, Moscow, Russia
Abstract. The contribution presents the materials of the analysis of the modern understanding of the place and purpose of product management. General and specific tasks are defined from the positions of marketing and product management. The regularities of the work organization of product management in companies of different shapes and sizes are studied. The article shows the fundamental differences in the formulation of product management for startups in different types of companies, including: companies that develop new technologies, in large corporations, in small and medium-sized businesses and in entrepreneurship. The key criteria for comparing the organization and implementation of startups in such structures are defined as incentives for the introduction of new products, the priority of the impact on the market of the implemented innovations, as well as an attitude to the associated risks. The priorities, the impact on growth and the problems of implementing product management in such companies are analyzed. Based on the results of the study, conclusions are drawn about the fundamental differences in the formulation of product management in different types of companies when preparing and launching innovative startups. Keywords: Innovation; Product management · Startup · Technology
1 Introduction There are still ongoing discussions about the supremacy of marketing management over product management and project management. The “classical” approaches to the division of powers and responsibilities of these positions change their priorities [5]. But the disputes do not stop, and every year they penetrate deeper and deeper everywhere and introduce certain differences in understanding the purpose and features of the powers of marketing management and product management (PM). The relevance of product management is becoming particularly important due to the growth of startups in recent years. The problem of the state and use of PM in the activities of companies is relevant at the current stage. It is discussed from different points of view and applied to companies operating in different markets. The topic is considered in the works [2, 3, 9, 11]. The © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 468–475, 2022. https://doi.org/10.1007/978-3-030-94873-3_59
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purpose of product management and its place in the development and introduction of innovative products to the market were raised in the works [8, 17]. The modern trend of deepening specializations finds its manifestation in marketing. Marketing departments expand the range of job positions by introducing: marketing manager, brand manager, advertising manager, research manager, analyst, regional and category managers, and others, including product manager. Naturally, the decision to introduce new positions is based on new goals and tasks that arise in front of the marketing [2, 11]. One of the important management decisions is to adopt the concept of implementing product management in the development of innovative products. Since the stage of product development that the consumer needs requires special competencies from the developer company, it is difficult to overestimate the critical impact of such work on the implementation of a startup.
2 Methodology The methodology of this study is based on the analysis of the accumulated experience of companies in various markets, both in our country and abroad. The analysis shows that in practice there is a well-established idea of the purpose of product management. It consists in the fact that the product manager is fully responsible for the state and market prospects of the product, being a “consumer advocate” [8]. The product manager has two main responsibilities: to evaluate the product and market capabilities and to understand which product needs to be developed [4]. An important problem is to determine the degree of participation and the depth of immersion of the product manager in the process of developing an innovative product at the initial stages of a startup. His most important responsibility is to bring the idea to practical implementation in a product that may interest the consumer. The idea of what consumer qualities can be realized by technical capabilities and what their limitations are is a prerequisite for the success of a startup, but, unfortunately, it is insufficient. The question is to what extent the manager should understand the technical and technological aspects of development. Thus, combining the competencies of a strategist, a “technician” and a marketer, complicated by the need to possess teamwork skills, understanding financial issues and production organization, the basics of design and ergonomics, impose additional requirements to the professional requirements of the PM. Let’s note that the functional responsibilities of product managers in different companies may differ significantly. Currently, it is accepted that the purpose of a PM is to create, develop and promote a certain product or product line [10]. In some cases, when a PM starts working with a product from the stage of its development, he participates in the process, starting with discussing the idea of the product, understanding its future consumers, learning the issues of production, marketing in general and promotion in particular, as well as sales in target markets. He is responsible for ensuring that the consumer qualities of the product meet the requirements of consumers. This position is often figuratively called “consumer advocate”, meaning that the consumer is the central link of all his work. His responsibilities include understanding
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the technologies for creating and applying a product, its development and improvement, studying and analyzing competition in the market, market positioning, a promotion package, as well as developing and implementing marketing plans with subsequent monitoring of results. In addition to the presented range of responsibilities, the PM manages the startup team [2]. This position is managerial and very responsible, since, as the analysis shows, it is possible to identify three main areas of his activity: – technical and technological development of the product; – strategic product development; – marketing support of the product. The PM’s competencies can be defined as interdisciplinary, since they require the skills and abilities in technical areas of knowledge necessary for understanding the processes of product development, having experience in marketing and sales, as well as, which is probably the most important, managerial skills in determining the goal, evaluating and determining the means of its achievability, creating a team and managing it. Given the complexity of the organization of product management, the need to hire an employee with a special set of knowledge, skills and abilities from different areas, including management, teamwork, technical and technological training, marketing, sales, leads to the need for a very rational implementation and use of PM. However, the prioritization of products is related both to the current state of the market, where the product is the main source of income for the company, and to the development of new products, which in the future can become an important driver of the company’s growth. An innovative startup has some special problems. It has a lot in common with the organization of project work, in which certain start and end dates are set. The development and launch of sales of an innovative product of a startup is a project. However, the project lives until the goal is achieved, and the startup’s lifetime is not defined. All this required combining the development and marketing processes under a single start and introducing the position of product manager for the development of an innovative product startup. The problems of the product manager’s participation in the development of innovative products and in general in a startup can contribute either to the success or failure of new products. There are serious contradictions between the development and marketing departments. Schneider notes the existence of fundamental contradictions between the technical and commercial divisions of companies, including: weak communication; poor interaction; lack of mutual respect and mutual trust [16]. These contradictions particularly appear in the relations between the development (R&D) and marketing departments. Thus, the introduction of product management in such companies is designed to strengthen the role of marketing and through it actively influence the development of “correct” products on the “correct” markets.
3 Results We analyzed the state and prospects of product management in new developments, including high-tech ones. In the course of the study, the main problems of product
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management in companies leading innovative developments and their implementation in market products were identified. The main problems are appeared in the following aspects: 1. The tasks of company divisions are defined and formulated in different ways, in different formats and metrics, often in terms that are not clear to representatives of other divisions, and even to various middle and senior managers. For innovative products, this reaches a high degree of criticality. 2. The way of thinking of a marketer and an engineer differ, although both are engaged in the search for non-obvious solutions. But the search areas and the principles do not coincide. The result is expressed by indicators that are not always consistent with each other, sometimes contradicting each other. 3. Evaluation of the results of the work of developers and marketers differ. If the former should show that “it works”, the latter determine where in the market it is possible to get money for the company’s products. Thus, the results of the developers’ work can be evaluated using strict objective criteria, for example, reducing the weight of the product by 10%, or increasing the speed by 15%, or ensuring reliable communication in high-altitude conditions. And the main performance indicators of a marketing manager, despite a large number of methodological manuals, are not easy to formulate for an innovative project. How to estimate the volumes of possible sales of a future product that does not even exist on paper yet? 4. There is a terminological or language barrier when communicating between developers and marketers [2]. Both of them believe that their partners speak the “bird” language. Therefore, it takes time to adapt some to others. 5. PM is a team activity. This means that someone in this team should be in charge of it. This also introduces additional contradictions into the work, since personal ambitions do not always contribute to achieving a good result. The split between marketing and product management is still felt in many technology companies, where both departments are confident that they know the customer and their market better than others. In some cases, the product manager is granted some, up to the specified limits, right of independence, and even direct accountability to the head of the company. 6. Until recently, product management was considered a function of marketers and engineers. The product manager reported to the heads of these departments and, of course, was considered to belong to both, and because-of this uncertainty, he was inevitably involved in the conflict of priorities and the activities of other departments [3]. 7. The PM is directly connected with the director and maintains communication between the stages of preparing the concept of the future product, its development and implementation. This is extremely important, because when the product team is fully aware of the concept and goals of the business, the leader becomes both an internal and external preacher of this concept. 8. It is not always the employees of the company working in a particular department who represent in which direction the company is developing. The third most important responsibility of a product manager, which many people consider the most difficult, is a deep knowledge of its own business and how it works, as well as the role of the product in the success of the business as a whole [4].
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Let’s ask the question: “Are there any fundamental differences in the organization of works on product management in companies with different forms of ownership and different business sizes that introduce product innovations?”. We say yes. Our conclusion is that there are fundamental differences in the organization and implementation of product management in different forms of innovative business.
4 Discussion During the study, we compared four types of businesses that differ fundamentally in the availability and diversity of available resources, the willingness to bear the risks of introducing innovative startups, the availability and relevance of incentives for new developments, as well as the formulation of marketing work. These types of businesses are as follows: – technology companies engaged in the development of new technologies and their implementation; – corporations that are expanding their business areas; – small and medium-sized companies that seek to diversify their business by introducing technological innovations; – entrepreneurs, private individuals, often alone developing and bringing new products to the market. The main problem of implementing product management in different companies is the challenges caused by the lack of readiness of employees to perform the necessary marketing work. With an understanding of the possibilities of new technologies in such companies, everything is not bad. The bad thing is that developers do not always consider their product from the point of view of its perception by future consumers. If such a question about consumers arises, it is not always raised and solved. Developers intuitively postpone it “for later”, commenting: “If there is a product, there will be consumers.“ But this is a serious misconception, since the product is made for a specific consumer and the opinion of the latter is the key. The consumer should participate at the development stage, and the result of such co-creation should be a clear definition of the expected properties of the product. Since the business of technology companies consists in the development and subsequent sale or introduction of innovations, it is necessary to combine the general strategy of research activities with business goals and, to a large extent, with the strategy of commercialization of the developed product. If such an organization does not have the necessary competencies and the management does not take responsibility for such risks, then the development is “put under the cloth” or the development team leaves the organization and starts working independently. A company with a technological orientation focuses its efforts on R&D and pays little attention to creating value for customers [7]. The stories of startups from technology companies show that they “appoint” marketers and products from their teams. Since technocrats have good analytical thinking, they eventually fully master the basics of marketing, finance, economic analysis and
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other required work skills [6]. The problem is how quickly this kind of rebirth will happen, it is quite possible that it is too late. But their resources are limited, so decisions are difficult to make [13]. The bureaucratic structure of corporations does not contribute to the development of innovative startups. In them, communications at the horizontal level are usually maintained at a fairly good level, and vertical ones leave much to be desired. Hierarchical subordination prevents the product manager from solving problems quickly and without unnecessary delays. In a large company, there are various groups pursuing their own interests, so they often use a system of pushing solutions. Such companies assemble cross-functional teams, which provide a full range of required professional expertise [1]. A feature of innovative start-ups of corporations is that a lawyer is included in the team. This is due to the special sensitivity of corporations to public opinion, which can worsen if someone disputes the actions of the development team. It is possible that now one of the simplest and most effective solutions was found, namely: to provide autonomy to such teams working on an innovative product, leaving them in the structure of the corporation. On the one hand, they have little impact on the main business. But they can be much closer to consumers, and having a high degree of independence, reporting directly to the head of the corporation or his closest deputies, they can use all the advantages of an entrepreneurial approach and quite reasonable aspirations for professional advancement. The forms of small and medium-sized enterprises (SMEs) do not imply the presence of either large financial or human resources [14]. In such companies, a marketer is appointed as a product manager, who has to combine duties [15]. This fact complicates the work, since such a person in the company is usually the only one responsible for marketing. So, as management often believes, this person should be a product manager. The latter can make requests for help to the authorities, who, as far as possible, satisfies such requests, but they are not always able to provide significant support. One of these common requests is to get someone from the staff to help. Even with all the desire, the management does not always have the opportunity to allocate an assistant. SMEs are much more likely to implement a startup in the field of improving existing market products, which allows preparing and launching a startup in a short time. At the same time, it is quite rare for them to radically diversify their products. This means that companies profitably use their acquired competencies in the development of new products. The responsibility of the PM is high, so the motivational attitude of such managers is high [9]. The founders-entrepreneurs of innovative startups bear the entire burden of responsibility for the business they have started. An entrepreneur should be multi-faceted: he is a leader guiding partners and a team, he should understand the principles of management and finance, be able to learn how to communicate with many people and organizations, understand what is the main point of marketing and how to apply it. These are all universal problems inherent in any entrepreneurial project. The easiest way to start a new business is in a clear and “transparent” market, about which there is a lot of information
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and there are available sources. In an innovative entrepreneurial startup, the overwhelming number of entrepreneurs has almost nothing but an idea, ambition and a passionate desire to achieve success. This is the segment of the startup ecosystem in which it is more difficult to develop an innovative product than any other [12]. The entrepreneur is forced to take on other responsibilities in addition to the development of the project.
5 Conclusion The analysis shows that the objective need for the introduction of product management in an innovative business that develops and launches startups has significant prospects. Product management of startups is designed to reduce the risks of launching a product. He is also required to ensure the market prospects of the startup. PM is being implemented in startups relatively recently, but the experience of well-known cases shows its effectiveness. The official position of the PM does not duplicate the duties and powers of specialists working in the marketing department. More precisely, it is possible to determine that the PM expands the marketing opportunities. Our research shows that, depending on the size of the company, the setting of the PM has significant features. However, the existing fundamental differences in the formulation of product management in companies of different sizes entail different decisions on the search, appointment and empowerment of such specialists. Product management of startups, including innovative ones, is actively implemented in companies of various forms and types. The paper shows significant differences in the setting of PM in innovation development companies, large corporations, medium-sized companies and entrepreneurial startups. The main problems of setting up and implementing the work of product management of startups were shown. The main contradictions in the interaction of divisions of companies in which product management functions are identified. Universal restrictions for all forms of business are shown, as well as private ones that companies of different forms may face. This fact requires special attention of the company’s management when organizing work with an innovative product being developed, preparing for the start of sales.
References 1. Allen, M.R., Adomdza, G.K., Meyer, M.H.: Managing for innovation: Managerial control and employee level outcomes. J. Bus. Res. 68(2), 371–379 (2015) 2. Austin, J.: What it takes to become a great product manager (2017). https://hbr.org/2017/12/ what-it-takes-to-become-a-great-product-manager. Accessed 22 Mar 2021 3. Banfield, R., Eriksson, M., Walkingshaw, N.: Product Leadership: How Top Product Managers Launch Awesome Products and Build Successful Teams. O‘Reilly Media, Sebestopol (2017) 4. Cagan, M.: Inspired: How to Create Tech Products Customers Love (Silicon Valley Product Group). Wiley, Hoboken (2014) 5. Capon, N., Kolchanov, V., Hulbert, J.M.: Marketing Management. Peter, St. Petersburg (2010) 6. Chlebovský, V., Schüller, D., Škapa, S.: Are product innovation-oriented firms prepared for effective product customization? Sci. Pap. Univ. Pardubice Ser. D Fac. Econ. Adm. 44(2018), 77–89 (2018)
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7. Durmu¸so˘glu, S.S.: The role of top management team’s information technology (IT) infrastructure view on new product development: conceptualizing IT infrastructure capability as a mediator. Eur. J. Innov. Manage. 12(3), 364–385 (2009). https://doi.org/10.1108/146010609 10974237 8. Komissarova, T.A., Tokarev, B.E.: Product management of technological innovation: technomarketing model. Manage. Russ. Abroad 5, 25–32 (2014) 9. Laptev, G.D., Shaytan, D.K.: Managing product development in the era of digital transformation. Manage. Sci. 8(4), 67–76 (2019). https://doi.org/10.26794/2304-022X-2018-8-467-76 10. Lehmann, D.R., Winner, R.S.: Product Management. McGraw-Hill, New York (2006) 11. Maclean, A.: Management development for scientists and technologists – opening address. R&D Manage. 17(2), 81–86 (1987). https://doi.org/10.1111/j.1467-9310.1987.tb01182.x 12. Manchulyantsev, O.: Business. The Beginning: From the Idea to the First Billion. Alpina Publisher, Moscow (2012) 13. Norton, K.: How to hire a product manager. The classic essay that defined the product manager role (2021). https://www.bringthedonuts.com/essays/productmanager.html. Accessed 22 Mar 2021 14. Pitta, D.A.: Product innovation and management in a small enterprise. J. Prod. Brand Manage. 17(6), 416–419 (2008). https://doi.org/10.1108/10610420810904167 15. Roach, D.C.: The impact of product management on SME firm performance. J. Res. Mark. Entrep. 13(1), 85–104 (2011). https://doi.org/10.1108/14715201111147969 16. Schneider, D.: Technology Marketing. Janus-K, Moscow (2003) 17. Tokarev, B.: Modern trends in technology innovative product management. Naukovedenie 1, 16EVN114 (2014)
Forecasting Innovations on the Example of Low-Price Copters E. Yu. Kamchatova1(B) , I. S. Vladimirov2 , and V. S. Kempa2 1 State University of Management, Moscow, Russia 2 All-Russian Research Institute “Center”, Moscow, Russia
Abstract. The purpose of the work is to develop a methodology for identifying promising areas of innovative development of the samples of technics (copters). The objectives of the work are to describe the existing methodological groundwork in scientific and technological forecasting, to present the developed methodology and the results of its testing. The main methods used in the study are the observation of the development of innovations in specific samples of equipment, their comparison with consumer expectations, abstraction from secondary predictive information and modeling of a sample of equipment of the future (copter of the future).The main result of the work is the identification of promising areas of innovative development of the samples of technics (copters), testing of the methodological apparatus of technological forecasting of innovations and the forecast of the future state of the conceptual core. Keywords: Innovation · Methodology · Scientific and technological forecasting
1
Introduction
One of the most important issues for an entrepreneur is the search for the most popular innovations in the market, and therefore he seeks to apply new analytical methods to achieve this goal. In the context of economy 4.0, innovative development is closely related to information technologies. It is thanks to digitalization that it becomes possible to identify hidden and implicit ways of innovative development [1, 2, 7]. The article by Grebenshchikova “Double dynamics of innovations and new approaches in scientific and technological forecasting” describes the phenomenon of “anticipation”, in which not the future is determined by the present, but the present – by the future, or rather by expectations from this future. Special attention is paid to social expectations, which, if not met, can lead to the loss of trust not only in a particular organization, but even in an entire scientific field [3]. The situation is also complicated by the fact that expectations from the introduction of new technologies can be artificially fueled by both PR departments of companies and the press, which complicates the process of managing these expectations. It is noted that disappointment can be considered as an impulse for the emergence of new expectations, © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 476–484, 2022. https://doi.org/10.1007/978-3-030-94873-3_60
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so they can also be considered as “advanced” information in scientific and technological forecasting. The author draws a conclusion about the emergence of a new type of management – reflexive management (management based on expectations). In the article Sushkova and Tkach, one of the disadvantages of the road map method is its focus on current innovations, and not on future ones [8]. Hence, we can conclude that the identification of promising directions for the development of innovations is impossible without analyzing consumer expectations and comparing them with the image of the future that is formed in the consumer’s mind. The mind of the consumer thinks for the future and is always partly focused on the desire for what does not yet exist in reality. An important question is how to identify and describe such an image of a product or service as the consumer generally expects to see it in the future, and to focus innovative development on achieving this image. Thus, the product produced at the design stage will not meet the current needs of the consumer – but the future ones.
2 Methodology The conceptual core (CC) is a set of technical solutions used to create a samples of technics. In the first block of the methodology, the identification and analysis of the CC is carried out in three stages. At the first stage, the time periods for which samples of technics will be taken are determined. After the periods have been determined, several samples of technics (at least five) are taken for each of them and a table is created with the following columns: “serial number”, “model”, “period/year/half-year/month”, “country/company”, “characteristic”. Characteristics can be represented by both numerical values and verbal values. In the first case, the value is specified, and in the second, the presence/absence indicator (for example, “+” - present, “–” - absent). For clarity, color differentiation can be applied (the cell with “+” is green, the cell with “–” is red). Samples of technics in the table should be located from the “oldest” to the newest from top to bottom. If the number of green cells increases as you go down the rows of the table, you can conclude that this technical direction is evolving, if on the contrary – it is degraded (or optimized for certain purposes). At the second stage, graphs are constructed that reflect the frequency of occurrence of each innovation by year. The frequency (or the value in the case of a numerical indicator) is plotted along the ordinate axis, and the time intervals are plotted along the abscissa axis. At the third stage, generalizing graphs are constructed for the time periods of interest. The names of elements and functions (from the most common to rare) of the equipment sample are placed on the abscissa axis, and the frequency is placed on the ordinate axis. The characteristics located on the plateau are ubiquitous and are the CC of the samples of technics, followed by less common ones that form secondary and tertiary groups of elements and functions. “Nuclear” elements and functions are the basis in the concept of a sample of technology and are very likely to be repeated in the concepts of future samples. The secondary ones can either disappear or enter the “core”, the prevalence graph for each of them will allow you to determine this.
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Thus, the collected statistics will allow us to draw unambiguous conclusions about the future state of the CC of the sample technique, which will be the result of the application of the second block of the methodology. The second block of the methodology is the final block and contains operations for the study of the “supply-demand” system. To determine consumer expectations from the future samples of technics, it is necessary to collect statistics on the frequency of occurrence of certain characteristics of the samples of technics in reports and user reviews. The characteristics specified by users are generalized in several areas that directly depend on them, for example: – reliability; – design; – easy to manage. Characteristics that can not be grouped are separated into separate concepts – for example, the weight of the product, the range of control. For each group, statistics are collected on the interest of users in a particular characteristic. Next, a graph is drawn, along the abscissa axis of which the logarithmic ordinal numbers of each characteristic are plotted, and along the ordinate axis – the logarithmic frequency of occurrence. From here we get, similarly with the second block – “nuclear expectations” of the consumer, and secondary ones. The identified CC of the future samples of technics in block 2 is superimposed on the nuclear expectations of consumers and compared for each item, on the basis of which a conclusion is made about the further direction of development of each applied innovation. Thus, the result of the application of the third block of the methodology is the generation of conclusions (which can be made in an automated mode, due to the lack of expert methods in the methodology) regarding each innovation separately and the creation of a concept of future technology that will meet the expectations of the consumer.
3 Results Below is a classification of the design parameters of the appearance of copters, described verbally and determining the following characteristics: strength, handling, quality of Table 1. Copter models and their characteristics (fragment) Company
Model
WLToys
V999
82
–
2013
≤ 65$
WLToys
V202 Scorpion
38
–
2013
≤ 65$
Hubsan
X4 Camera H107C High
51
1280 × 720
2013
≤ 65$
Syma
X5C
108
1280 × 720
2014
25$
…
…
…
…
…
…
Source: authors.
Weight (grams)
Camera
Year
Price
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shooting, design, functionality. The object of the study will be 35 models of boats worth up to $ 65 (5,000 rubles at the Central Bank exchange rate from March 2020.), for the 2013–2019 years of production (Table 1 and 2). Table 2. Copter models and their characteristics (fragment)
Company Model
Syma Eachine SG SG SG …
X26 E38 901 907 700 D …
flight time, min 6 12 18 18 17 …
Gyrosco pe, type
6-axis 6-axis 6-axis 6-axis 6-axis …
Height, Char m ging time 30 60 100 500 120 …
90 90 240 240 80 …
Function Aut h. flip + + + …
…
Autoreturn
Trac king
+ + + + …
+ + + + …
Way poin t + + + + …
…
… … … … … …
Source: authors.
Table 3 shows the frequency of occurrence of certain features of the copter, for example, “protection of the screws” and “automatic landing”. Thus, we will see how the CC of the copter changed. If in 2013 the copter was a device with several screws (most often four) on radio control, then in 2019 the copter includes many times more functions and features. Table 3. Frequency of occurrence of functions in models of quadrocopters (maximum-5 (found everywhere), minimum-0 (not found) №
Characteristic
2013
2014
2015
2016
2017
2018
2019
1
Auth. Flip
5
4
3
5
4
4
3
2
Battery
5
5
5
5
5
5
5
3
RTF
5
5
5
5
5
5
5
4
Radio channel
5
5
5
5
5
5
5
5
Accumulator
5
5
5
5
5
5
5
6
Screw protection
2
5
4
3
2
2
4
7
Accelerometer
1
1
1
1
0
1
2
8
Auto-return
0
1
2
1
3
1
4
9
Tracking
0
0
0
0
0
1
4
10
Waypoint
0
0
0
0
3
1
4
11
Hovering
0
0
0
0
5
4
1 (continued)
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№
Characteristic
2013
2014
2015
2016
2017
2018
2019
12
Automatic landing
0
0
0
0
4
3
4
13
Headless Mod
0
3
3
4
5
3
5
14
Gesture
0
0
0
0
0
0
3
15
Management for beginners
0
2
5
4
4
5
5
16
GPS
0
0
0
0
0
0
1
17
Barometer
0
0
0
1
4
3
5
18
FPV
0
0
1
3
5
4
4
Source: authors.
The following table shows the change in the average value of numerical indicators: weight, range/altitude, charging time, flight time, the average number of gyroscope axes (Table 4). Table 4. Average value of numerical characteristics by year
№ 1 2 3 4 5
Characteristics Flight time, min Gyroscope, number of axes Height, m Charging time, min Weight, gram
2013 9
2014 7,6
2015 8,2
2016 6,7
2017 7,2
2018 7,6
2019 14,2
4,8
6
6
6
6
6
6
120 50 55,4
96 72 81,4
106 102 217,75
110 94 80,8
68 104 95
45 68 47
162 148 186,6
Source: authors.
Further, based on the information displayed in the tables, you can build a graph showing the copter’s CC in 2019 (Fig. 1). Based on it, you can conclude about changes in the copter’s SCTK (a set of verbal and nonverbal characteristics) over time, and based on it, you can conclude about the future states of the “core”. In the framework of this work, we propose to study the expectations of consumers from products, and identify the group of characteristics that change for the worse will cause the greatest damage to sales. Within the framework of the work, such requirements are called “nuclear”. They will be identified by the example of classic quadrocopters in the lowest price category (up to 5000 rubles) (such as “Syma X5C” and “Syma X5SW”) [5, 6]. At the first stage, 60 reviews were analyzed (on the site otzovik.ru) according to the data of the quadrocopters and the selection of the most significant parameters that consumers most often pay attention to (whether in a positive or negative way). In this case, it is the frequency with which consumers note certain qualities of the product that is important. As a result, the following table was obtained (Table 5):
Forecasting Innovations on the Example of Low-Price Copters
Fig. 1. CC of the 2019 Copter. ( Source: authors). Table 5. Frequency of occurrence of characteristics in reviews Indicator
Frequency (h)
№
Ln(№)
Ln(h)
Price
32
1
0
3,465736
Reliability
31
2
0,693147
3,433987
Battery capacity
27
3
1,098612
3,295837
Manageability
27
4
1,386294
3,295837
Shooting quality
24
5
1,609438
3,178054
Design
9
6
1,791759
2,197225
Range
9
7
1,94591
2,197225
Light weight
8
8
2,079442
2,079442
Size
3
9
2,197225
1,098612
Functionality
3
10
2,302585
1,098612
Source: authors
Fig. 2. “Nuclear” consumer requirements. ( Source: authors).
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Based on the data, the following graph was then built (Fig. 2): Based on the graph, we can conclude that with the same (or better) state of such indicators as price, reliability, battery capacity, controllability and quality of shooting, the innovation will be in demand by consumers. In order to make a comparison, it is necessary to reconcile data on innovation, and data on consumer expectations.
4 Discussion The concept of the “copter of the future” will include a number of elements and functions that will describe its CC: 1. 2. 3.
The copter control panel will still be charged by the battery, as the presence of a large capacity battery will lead to an increase in the price. The cheap low-capacity battery in the body of the copter will remain in future models. The protection of the screws will “return” as an integral function of the copter of the budget segment, but if it was previously built into the body, then in modern and future models it is optional (removable), which will: – facilitate the design of the device; – reduce its dimensions.
4.
The copter of the future is able to return to the pilot in automatic mode, monitor the target, fly at specified points and perform an automatic landing. All these features (including the Headless Mod) will greatly facilitate the management of the copter and expand the boundaries of its use for professional tasks. 5. The copter of the future will support a new type of control – gesture control, which in the future may reduce the importance of the control panel functionality, since it will be assigned fewer tasks. 6. The introduction and widespread use of the GPS position monitoring function will minimize the possibility of losing the device in poor visibility conditions or if it falls into the tall grass. 7. The copter’s performance of the above functions is often impossible without a built-in barometer, and therefore this design element will also be ubiquitous. 8. The presence of FPV and hover functions will be less and less reflected in the product description, since almost all copters already have them at the moment. 9. Management for beginners, which is essentially a set of functions, will be present in the future in all copters of the budget segment, because thanks to its presence, it is possible to train inexperienced pilots. 10. The automatic flip function can completely disappear from the copters and gradually become a distinctive feature of micro-copters whose task is entertainment.
5 Conclusion Based on the results of testing the methodology, it can be concluded that it is applicable to solving problems of forecasting innovations, but the need for partial application of
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expert methods does not allow for its full automation, which will be the topic of further work. In accordance with the data obtained, we can conclude that the innovations used in copters are highly consistent with consumer needs. Promising areas of improvement of the copter are: – weight limit of 249 g, which will not lead to the need to register the aircraft in the Rostransport; – reducing the size of the copter to increase wind resistance; – reduce the battery charge time of the copter; – abandoning the PU and replacing it with “ gesture control»; – the return of “screw protection” as a mandatory element of the design. The weight of the future copter will not exceed 249 g, provided that new or old regulations limiting the weight of the device are not adopted or canceled. The publication of such laws indicates that the copter has become a fairly complex and multifunctional technique, and allows it to be used in carrying out terrorist acts or intelligence. For example, many scientific papers have repeatedly emphasized the possibility of using copters in the production and detection of coal combustion foci [9, 10]. In conclusion, it is worth noting that the described methodology can be supplemented by another block – the block of semantic analysis of the truth kernel, which will allow you to exclude terminological inaccuracies in the object of research without using expert methods. The block is described in detail in the article “The concept of forecasting based on semantic analysis of verbal information” [4].
References 1. Burlakov, V.V., Dzyurdzya, O.A., Fedotova, G.V., Alieva, A.H., Kravchenko, E.N.: The modern trends of development of AI technologies. In: Popkova, E., Sergi, B. (eds.), Artificial Intelligence: Anthropogenic Nature vs. Social Origin. ISC Conference - Volgograd 2020. Advances in Intelligent Systems and Computing, vol. 1100, pp. 374–383. Springer, Cham (2020). https://doi.org/10.1007/978-3-030-39319-9_43 2. Burlakov, V.V., Dzyurdzya, O.A., Gudkova, O.E., Fedotova, G.V., Sokolov, A.A.: Smart Solutions for Intellectual capital commercialized in industry 4.0. In: Popkova, E.G., Sergi, B.S. (eds.) ISC 2020. LNNS, vol. 155, pp. 1159–1166. Springer, Cham (2021). https://doi. org/10.1007/978-3-030-59126-7_126 3. Grebenshchikova, E.G.: Double dynamics of innovations and new approaches in scientific and technological forecasting. Proc. Southwestern State Univ. Ser. Econ. Soc. Manage. 6(35), 221–226 (2019) 4. Ivanus, A.I., Nevezhin, V.P., Pustynkin, A.A., Vladimirov, I.S., Chernova, E.I.: The concept of forecasting based on semantic analysis of text information. J. Phys. Conf. Ser. 1703(1), 012044 (2020) 5. Otzovik: Syma X5C RC Quadcopter – reviews (2021). https://otzovik.com/reviews/radiou pravlyaemiy_kvadrokopter_syma_x5c/. Accessed 08 Mar 2021 6. Otzovik: Syma X5SW RC Quadcopter – reviews (2021). https://otzovik.com/reviews/kvadro kopter_syma_x5sw/. Accessed 08 Mar 2021
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7. Sekerin, V.D., Burlakov, V.V., Gorokhova, A.E., Dzyurdzya, O.A.: Innovations latency sources. Espacios 38(62), 26 (2017) 8. Sushkova, O.V., Tkach, O.A.: Forecasting the potential innovation activity in high-tech industries when entering into mergers and acquisitions: questions of theory and practice. Bull. South Ural State Univ. Ser. Law 20(3), 95–102 (2020) 9. Tikhonov, A.A., Akmatov, D.Zh.: Time to use multicopters in industry. Mining information and analytical bulletin. Sci. Tech. J. 1, 55–62 (2019) 10. Zavertkin, S.A.: Attention - Air! UAV use for thermal imaging monitoring of coal spontaneous combustion areas. Ugol 6(1095), 28–30 (2017)
Digital Technologies at the Production Enterprises of the Elevator Industry E. A. Vikhodtseva1 , N. A. Kobyzeva1(B) , and Z. M. Galperina2 1 State University of Management, Moscow, Russia
[email protected]
2 Russian Energy Agency, Moscow, Russia
[email protected]
Abstract. The development of digitalization processes contributes to the formation of new trajectories for the application of scientific achievements, as well as methods of effective management in modern economic conditions. Digital technologies can be considered as an alternative source of optimization of production processes. The main objective of this contribution is to consider prospects for the development of industrial enterprises in the elevator industry due to the production digitalization, the expansion of the application area of the digital space. The intensive development of the industry allows building free market relations between its participants, actively implementing the results of the digital transformation of our society. This trend has a positive impact on the development of the industry, maintaining its relevance and competitiveness. The main empirical and theoretical research methods, due to which it is possible to present a general picture of modern information technologies within the industry, make it possible to summarize the existing achievements of production processes digitalization at the enterprises of the elevator industry. Keywords: Elevator · Digital technologies · Production
1 Introduction In modern conditions, the active application of digital technologies at manufacturing enterprises is considered as the main production resource that determines the growth of the enterprise’s well-being. Enterprises of the real sector of the economy, actively using the results of its digitalization in their activities, increase the efficiency level of the functioning of all their systems. The rapid development of digital technologies over the past 10 years has contributed to their penetration into all spheres of human activity. The transition of the economic system to a new technological structure allows updating the modernization processes of domestic production systems. In the elevator industry, the use of digital technologies can raise the processes of development, manufacture, installation and operation of elevator equipment to a new level. To achieve high results, you need to be ready to increase the responsiveness to changing consumer requests, increase the level of digital intellectualization. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 485–492, 2022. https://doi.org/10.1007/978-3-030-94873-3_61
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The elevator industry, as a type of economic activity, is primarily aimed at ensuring a comfortable and safe life of the passenger, creating favorable conditions for living and movement in buildings and structures. The elevator industry carries out activities for the operation of elevator equipment, including economic activities, works and services to maintain optimal equipment criteria throughout its life cycle. The industry also ensures the functioning of other processes: maintenance, repair, installation, dismantling, modernization, inspection and replacement, as well as conformity assessment and certification of equipment, components and parts. Manufacturing enterprises form the process basis for creating the necessary elevator equipment to support the industry. Organizational and production systems and processes of enterprises are aimed at improving the quality of manufactured products. Examples of the use of digital technologies at industrial enterprises of the elevator industry are reflected in this article.
2 Methodology The processes associated with the formation of a positive attitude to the introduction of digital technologies at the production enterprises of the elevator industry are described in this contribution taking into account the main methods of theoretical and empirical research. The authors describe some options for the practical usage of digital applications as one of the elements of the information space organization at enterprises, analyze the optimization processes of logistics chains for the enterprises of the industry. The study of the issues of the elevator industry digitalization was carried out taking into account the tasks of forecasting, systematization, ranking of possible optimal results, as well as analysis of the influence of external factors. The authors consider statistical data and results of practical activities of industrial enterprises of the elevator industry. A research was conducted on the generalization of information on the use of modern information technologies and conclusions were drawn about the state of digitalization of Russian elevator manufacturing enterprises as one of the mandatory conditions for the application of digital technologies in the territory of the Russian Federation. The possible advantages and risks of the main digital technologies are also systematized, the factors leading to the inhibition of digital activities of domestic manufacturing enterprises of the elevator industry are updated [2, 5]. The development of digital technologies will also contribute to the acquisition of new professional skills and knowledge, the creation and improvement of communication systems to obtain the necessary competencies. The transition to digital technologies should be gradual so that the production and resource system of the enterprise can adapt to the new conditions. That is why it is so important to study the main aspects of the formation of digital production and technologies. Digitalization of production should take place in the context of digital business transformation [9].
3 Results There are currently more than 30 elevator-building enterprises of various scales operating on the territory of the Russian Federation. According to the latest data, the market of elevator equipment in our country is represented by domestic manufacturers for 70% of the
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total volume of elevators produced on the territory of the Russian Federation. A stable model of elevator production has been formed by small and medium-sized elevatorbuilding regional enterprises over the past 5 years. A number of state programs had a positive impact on the development of this model: “Programs for replacing elevators in apartment buildings for the period 2020–2025”, the state program “Affordable Environment”, the national project “Housing and urban Environment”, the program for ensuring import substitution of the Russian industry, etc. These programs contributed to the development of free competition within the industry, as well as the quality improvement of provided services and goods. Even in these conditions, not all production enterprises are fully loaded, which results in the lack of funds for technical re-equipment of production lines. With the introduction of new technologies at enterprises, business processes, technological maps of interaction with stakeholders have changed significantly, and the resource market has been transformed. Trends in the development of digital technologies and information systems already dictate to market leaders the main elements of control and communication: robotics, machine learning, the Internet of Things, virtual and augmented reality, wireless communications, Big Data technologies. Some of the industrial enterprises of the elevator industry implement its main provisions, taking into account this strategy when setting goals. Thus, the large-scale transfer of domestic enterprises to the format of digital models of the production process management requires from the elevator industry to minimize the gap and lag behind the world’s leading manufacturers as much as possible, taking into account the production peculiarities. The main characteristic of the transformation of digital technologies at manufacturing enterprises is the minimization of people’s participation in production processes and the transition to management using databases. The enterprise resource planning system (ERP) has been widely implemented throughout the elevator industry, combining the main milestones of the company’s process activity. Thus, within the framework of a single digital platform, the ERP system allows you to combine and standardize the business processes of the enterprise system, improve the quality of planning, coordination of production processes, control and work of both the entire department and each employee individually. The result of ERP is the prompt receipt of comprehensive up-to-date information about the company’s activities, as well as the adoption of effective management decisions based on the obtained data [1]. It will be advisable to implement an ERP system at large enterprises that have a complex production process and a large range of products. Implementing an ERP system is an expensive and complex process. Thus, the ERP system has shown itself on the positive side at such enterprises of the elevator industry as JSC “Shcherbinsky Elevator-Building Plant” (SchLZ), Moscow, PJSC “Karacharovsky Mechanical Plant” (KMZ), Moscow, LLC “OTIS Elevator”, St. Petersburg. Also, technologies that contribute to the transformation of traditional production into information production and are characterized by the digital integration of production, logistics and communication chains are being actively introduced at all production enterprises of the elevator industry. Optimization of processes and solving logistics chain issues in factories and warehouses is another application area of digital technologies. Logistics systems constantly
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require modernization, reducing the supply cycle and the level of product stocks, reducing working hours, making production timely through the correct distribution of tasks. The level and area of logistics planning are comprehensive compared to traditional logistics management. Loading and unloading operations and internal logistics between production sites are among the most suitable objects for the application of digital technologies (with the expectation of a significant positive effect). A special feature of the elevator equipment production are non-serial elements of the production process: individual selection of materials, components, products to ensure safety and comfort, the pricing policy of suppliers and individual customer requests. The elevator is manufactured for each specific mine to a pre-specified address, similar construction projects in production are combined into programs that, after reconfiguring equipment and logistics, go on in a continuous stream. These flows can be divided into weeks, months, or quarters within the same calendar year. In the intervals between these programs, another reconfiguration of equipment for individual production of elevators occurs which cannot be combined into programs: during this period, individual elements can be performed according to individual technologies, and logistics chains within production must provide a high-quality complete set of this elevator, combining the needs of each of the production sites. The digital technology used in this case is based on adaptability, cooperation, communication, integration, autonomous control and improvement of the cognitive processes of the chain participants. These tools allow us to reproduce integrated planning and execution systems, make logistics transparent and autonomous, develop intelligent procurement and warehousing, improve the processes of intra-logistics and analytics. Intra-logistics is a branch of logistics that deals with issues on the optimization of information and material flows within the production process Intra-logistic operations have the property of adaptivity, which allows information and production flows to change their elements and their relationship over time due to the influence of events outside the system boundaries on them. The development of digital technologies has contributed to the emergence of an intelligent logistics system: a system that is able to increase and improve flexible processes of adaptation to market changes and customer requirements. The main information elements of intelligent logistics will be: – intelligent and information systems for warehouse management, the structure of warehouse operations; – pilot and unmanned transport management models, mobile applications and digital space that provide a transparent supply chain using IoT technology (Internet of Things), which allows you to remotely control various autonomous devices that have an Internet connection); – independent intelligent transport systems, the area of interaction of which extends to the external environment of the enterprise: transport, operations for controlling various information flows, the infrastructure of the territory, the general methodology of control and the policy of interaction with other intelligent transport systems; – information security. In order to ensure the functionality of small logistics chains within the framework of the application of digital technologies, various changes can be made in the processes
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of loading and unloading operations due to new materials, robotics, cloud technologies, RFID technology that allows identifying physical objects using special tags-microchips [8]. The process of introducing digital technologies into production has a number of positive and negative aspects. Digital technologies and new scientific inventions used in the industry and at manufacturing enterprises, among others, provide certain advantages to manufacturing enterprises. We will formulate the main ones: 1. Production processes become adaptive, acquire flexibility. Using a single information space, the processes of adjustment, reconfiguration and interaction of equipment, it becomes possible to carry out dynamic changes in the parameters of the production process. 2. The construction of a digital path of the life cycle of the manufactured equipment, from its design to the disposal of waste and scrap, allows you to identify ways to optimize the production process, ensure constant quality control of manufactured products, supplied resources, identify possible failures and deviations in the machine park of production sites. 3. The level of noise immunity of information systems becomes higher and restoring the signal (when it is lost) is easier than for analog ones. The negative impact of digital technologies is an increase in the dependence degree of the production process on them: automation and robotization of production have led to a decrease in the possibilities of personnel influence on the production process. Thus, if there are violations in the operation of new technologies, the damage may be higher than in similar situations in the traditional production management model. As a result, there are increased requirements for ensuring the reliability and stability of information systems implemented in the production. The ability of large industrial enterprises of the elevator industry to introduce specialized information programs into their management structure has led to the heterogeneity of the effect of digital technologies. Digital technologies for the domestic elevator business are a source of strengthening their positions in the market and forming new strategic trajectories in the long term. At the same time, the main volume of investments by the heads of enterprises is directed to the purchase of specialized software of foreign production, which is due to the lack of specialized domestic equipment and digital platforms [10]. For example, the share of elevators, frequency converters and elevator equipment control systems with a speed of more than 2 m/s in the domestic market is almost 100%, while by 2024 it is planned to reduce it to the level of 85–70% [7]. PJSC “Karacharovsky Mechanical Plant”, founded in 1950 in Moscow, is one of the oldest and largest among all elevator plants on the territory of the Russian Federation. At the moment, the company actively uses a number of modern information systems and technologies in the design of elevator equipment and production management: the Solid Edge hybrid 3D modeling system, automated CNC machine lines, computer-aided design (CAD) systems, production management systems (ERP) and business processes (CRM, SEM) [4]. The process of transition from a standard production enterprise to a digital one can be represented by integration processes of information exchange and cooperation
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between different levels of the hierarchy (management, corporate and production planning) within the enterprise. The functionality of this integration is provided by a high level of availability of effective sensor networks (RFID, radio frequency identification). Sensor networks enable to provide communication between various machines, robots, machines, working resources, application systems in real time due to the formation of information or intelligent objects and devices. New technological models are the basis for the application of modern production processes of the digital space and business models of “intelligent factories”.
4 Discussion Currently, according to experts of the elevator industry, it is necessary to show more extensive interest in the introduction and use of modern digital technologies. The elevator industry is a type of economic activity that prioritizes providing comfort and improving the quality of living conditions of passengers. It is necessary to conduct a thorough analysis of each stage of the production process, to consider the issues of modernization of the outdated equipment, to improve the qualification level of specialists involved in the processes of creating and implementing finished products in the industry. The digital space can be represented in the format of an enterprise’s economic activity, where the processing of a large amount of data and operational analysis are carried out using special equipment and intellectual labor tools. In these conditions, a highly qualified specialist who has sufficient knowledge and skills to quickly analyze the obtained data and competently distribute the production load between production sites comes to the fore. This procedure will be relevant at the initial stages of the introduction of the digital space not to overload the production areas. The integrated information system will also cover the machine park: automated paint lines, laser machines, multi-axis punching complexes, milling equipment, as well as other types of CNC machines. Thus, the speed, accuracy and quality of manufactured products will increase. The participation of industrial enterprises in national programs will allow revising approaches to financing and redistribution of cash flows [6]. There is a need for effective cooperation and partnership among the industrial enterprises of this branch, development of plans for the implementation of priority national projects. The elevator industry of the Russian Federation has a high level of threshold barriers when entering the national market, which contributes to the low rate of emergence of new competitors. Thus, through the joint efforts of the heads of production enterprises, it is possible to develop programs and projects for knowledge management in the field of the digital space of the industry.
5 Conclusion Having conducted a study of the possible application of digital technologies at industrial enterprises of the elevator industry, we can draw the following conclusion: as a new stage in the development of digital production of the elevator industry in Russia, we can name the expansion of the boundaries of national programs and projects, the implementation of which will require the industry to actively create digital space at enterprises [3]. It is also
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necessary to consider the possibilities of cooperation between the state and representatives of the elevator industry, a new approach to the management and implementation of information technologies, as well as increasing the responsibility of enterprise managers to ensure the information security of production and new developments. Positive trends in the development of new technologies and the expansion of the influence boundaries of the digital space will allow representatives of business and the state on the territory of the Russian Federation to build a trajectory for the development of the elevator industry. This trajectory could ensure the competitiveness of products on the national and global market. When providing conditions for the production of products in the information space, its consumer will strive to individualize the purchased product, thereby influencing the formation of the value chain of the goods. Individualization in the context of digital transformation is becoming more real. The modern concept of individualization will allow manufacturing enterprises to ensure their competitiveness. It is necessary to ensure the positive dynamics of the development of the industry’s potential through the introduction of digital technologies at manufacturing enterprises. The formation of a single virtual environment will allow optimizing management processes, reducing the influence of the “human factor” on production processes. The digital spaces of our society, production and politics are closely connected with each other. The development of one industry cannot be considered in the format of an ideal independent process. In the modern dynamics of digital transformation, the idea of creating a “smart production” can be realized only in the conditions of an integrated approach, taking into account the external and internal factors of the elevator industry.
References 1. Avdeeva, I., Polyanin, A.V., Golovina, T.A.: Digitalization of industrial economic systems: problems and consequences of modern technologies. Econ. Manage. Right 19(3), 238–245 (2019). Izvestia Saratov University. A New Series 2. Babina, S.I.: Digital and information technologies in enterprise management: reality and a look into the future. Creative Econ. 13(4), 723–741 (2019) 3. Khalimon, E., Brikoshina, I., Guseva, M., Kogotkova, I., Nikitin, S.: National projects as a way to solve the problems of economic and digital disparities in different areas and regions. In: Obradovi´c, V., Todorovi´c, M. (eds.) Proceedings of the 5th IPMA SENET Project Management Conference, SENET 2019. Advances in Economics, Business and Management Research, vol. 108, pp. 105–111. Atantis Press, Paris (2019) 4. KMZ: Manufacture (2021). https://www.kmzlift.ru/company/manufacture/. Accessed 24 Mar 2021 5. Kogotkova, I.Z., Soroko, G.Y., Guseva, M.N.: Smart department: designing digital applications for smart organizations. In: Popkova, E.G., Ostrovskaya, V.N., Bogoviz, A.V. (eds.) Socio-economic Systems: Paradigms for the Future. SSDC, vol. 314, pp. 1483–1493. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-56433-9_154 6. Lyalin, A., Zozulya, A., Eremina, T., Zozulya, P., Malyshkin, N.: Efficiency issues for managing priority national projects. In Karabulatova, I.S. (ed.) Proceedings of the International Conference on Man-Power-Law-Governance: Interdisciplinary Approaches, vol. 374, pp. 420–425. Atlantis Press, Paris (2019) 7. Order “On approval of the action plan for import substitution in the heavy machinery industry of the Russian Federation” dated July 22, 2019 No. 2646. Ministry of Industry and Trade
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of the Russian Federation. https://rulaws.ru/acts/Prikaz-Minpromtorga-Rossii-ot-22.07.2019N-2646/. Accessed 24 Mar 2021 8. Orestis, KE., Stavros, T.: Ponis current status of industry 4.0 in material handling automation and in-house logistics. Int. J. Ind. Manuf. Eng. 13(10), 1370–1374 (2019) 9. Rodina, L., Nazarov, S.: Systematization of the activity digitalization risks: economic, cultural, political, and international aspects. In: Veber, J., Guzivkoa, L. (eds.) Proceedings of the New Silk Road: Business Cooperation and Prospective of Economic Development, NSRBCPED 2019. Advances in Economics, Business and Management Research, vol. 131, pp. 697–701. Atlantis Press, Paris (2020) 10. Turovets, Y., Vishnevsky, K.O.: Standardization of digital production: opportunities for Russia and the EAEU. Inf. Syst. Technol. Bus. 13(3), 78–96 (2019)
Conceptual Model Change of Territorial Administration as Response to Digital Economy Challenge V. I. Tinyakova1(B) , N. I. Morozova2 , and E. V. Potekhina3 1 State University of Management, Moscow, Russia
[email protected]
2 Volgograd Cooperative Institute (branch) of the Russian University of Cooperation,
Volgograd, Russia 3 Russian State Social University, Moscow, Russia
Abstract. The use of information technologies in the management of spatial development will make the process of state and municipal management more transparent and less resource-intensive. The research novelty is to propose a conceptual model of managing socio-economic development in the form of a digital ecosystem, which, unlike the traditional one, will be aimed at creating a single information field and a new form of constructive cooperation and coordination between participants in the virtual space, characterized simultaneously by relations of cooperation and competition. The creation of such an ecosystem under the auspices of the state will allow implementing a mechanism of reasonable digital protectionism which protects the interests of users and owners of digital platforms in the cyberspace. The digital ecosystem, which consolidates the efforts of public authorities, economic entities and consumers, will act as a more authentic environment that forms the design of a new compliance market by involving more actual or potential participants in the process and ensuring them equal rights in the competition for the implementation of investment projects aimed at developing the territory and improving the quality of life of the population. Keywords: Digital economy · Digital ecosystem · Information technologies · National security · Territorial administration
1 Introduction Today, the world is on the verge of a radical transformation, the depth of which we have to assess. Information and telecommunications technologies are widely used in the field of business, state and municipal administration, in everyday human life [1, 2]. Such technologies as “smart cities”, “smart enterprise”, “smart homes”, “smart information and analytics”, “smart medicine”, “safe city”, “e-government” and a number of others are becoming familiar and usual. Widespread digitalization destroys the traditional technological processes of creating goods and services. To convert resources into finished © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 493–499, 2022. https://doi.org/10.1007/978-3-030-94873-3_62
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products, additive manufacturing or 3D printing technologies are used, with the help of which it is possible to print not only the necessary part, but also houses, and even human organs. IT technologies will lead to a change in the employment structure and the emergence of previously unknown professions and specialties. New requirements will be imposed on the education system [9]. The development of digital technologies erases temporal and spatial boundaries, which leads to the need to search for new tools for territorial management and district planning which determines rational schemes of territorial and economic structure. The creation of a new system of spatial development of the territory is the only opportunity to preserve the spatial integrity of the territory and ensure its sustainable socio-economic development in the conditions of mass digitalization.
2 Methodology For the formation of a scientific hypothesis and the choice of a theoretical and methodological basis for research in the field of a new model of territorial management, fundamental works of domestic and foreign scientists in the field of informatization of modern society, the development of network and virtual forms of management are of great interest. We emphasize that effective management will be only when it is considered as a well-organized information process. Just as matter and energy are substances of the physical world, information is the basis for effective management and making informed management decisions. The study of general patterns of obtaining, storing, analyzing and transmitting information in complex systems for managing and regulating the processes occurring in them is engaged in such a science as cybernetics. It is fueled by other sciences and tends to selfdevelopment. In the study of control systems, the general methods used in cybernetics are “system analysis”, “operations research”, etc. The territory as an object of socio-economic management should be considered from the point of view of a systematic approach which is based on the consideration of the object as a system: an integral complex of interrelated elements; a set of interacting objects; a set of entities and relationships. From the point of view of the system approach, the territory should be analyzed as an open complex-dynamic system developing in an uncertain socio-economic environment. Management of socio-economic processes in such a system is, as a rule, a resource-intensive and expensive process. To make decisions, public authorities often have to take into account a huge number of different factors that have a multidirectional impact on the considered system, develop various scenarios for the development of events and choose from them the option that will ensure the balanced development of the leading sectors of the economy. It is difficult to formalize the task of taking into account and evaluating the influence of feedback on the state of a complex system which is the territory. All this makes it necessary to develop simulation models and integrate them with databases. The tools and methods of simulation modeling allow us to transfer the collected information from the category of inert material into the evaluation process, thereby increasing the efficiency and validity of managerial decision-making. The collected information is usually of a quantitative and qualitative nature, that complicates the process of its analysis and evaluation. In this regard, optimization-qualimetric control models will have a
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certain interest. The effectiveness of their use is in the possibility of variable management in conditions of uncertainty and in assessing the quality of strategic decisions that are made before their practical implementation. Thus, the new virtual model of socio-economic development management, based on optimization and qualimetric modeling, will increase the flexibility and efficiency of the management process, move away from hierarchical management systems and form a horizontally connected network environment for the free flow of technologies and innovations between sectors and territories.
3 Results Today, the main challenge for the development of the economy and ensuring national security is the digitalization of all aspects of public life. Traditional operations and communication formats are becoming a thing of the past. Instead of visiting shopping centers, there are online shopping and delivery, secure payment via applications, communication via chats, messengers, various platforms for holding online video conferences. Information and innovative technologies become the key factor of production. Conservative hierarchical structures in the business sphere are being replaced by flexible network forms of management that disperse value chains in the space, thereby leaving organizational associations outside the national economy [8]. Such organizational structures modernize and complicate the process of international division of labor and rational interaction of economic entities horizontally and vertically. This process contributes to the growth of the territories interdependence and accelerates the globalization processes. Network business communities do not know not only geographical boundaries, but also have no existence terms, their functioning is determined by the terms of implementation of the project plan and the total costs of creating the final product. The lower the costs are, the higher the added value is. This situation is the most preferable for a business structure. But it leads to the fact that the issues of ensuring the economic security of the country and sustainable development of economic entities on its territory are becoming more acute. In the new conditions, the competitiveness of national economies depends not only and not so much on themselves, but on the efficiency of activities and strategic development priorities of partners in the business chain. This was mentioned in a World Bank report in 2010, where it was emphasized that today the production of the final product is divided into a large number of business tasks, the implementation of which takes place in different countries around the world, as global value chains [10]. Such a configuration can be figuratively represented as the central nervous system of the world economy. Any changes in the market situation, legal framework or other factor in a particular national state lead to transformational changes in the configuration of the global value chain. And this means closing production in those countries where conditions become unprofitable from the point of view of costs, and transferring the production process to countries that are ready to provide more preferences. This issue today is a kind of challenge for all countries of the world economy. The authorities of the national state fall into a certain dependence on the international business community. They need to compete with other national states in all spheres and at all government levels to attract investors and large network structures.
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To use not administrative, but economic methods of influence that have proven their effectiveness at the level of an individual enterprise, to adapt them to the conditions of managing a complex socio-economic system, which is the territory – all this will help business to effectively compete for customers (residents, investors, etc.) with other territories and states. The following goal will be crucial here: creating a favorable social, economic and environmental climate for people to live and attract investors. In order to achieve this goal, it is necessary to develop infrastructure, provide a flexible system of benefits and preferences for national and local taxes, create conditions for attracting qualified labor, etc. The lack of flexibility in the management of public authorities can have not only economic consequences: the closure of production facilities, an increase in unemployment and a drop in the quality of life of the population in this territory, but also political ones: the need to preserve the integrity of the country and protect its national security. For making managerial decisions, the state and its subjects not only receive information, but also provide it to the information environment. In the field of public administration, work is carried out with Big Data – geoinformation, spatial data models, and “cloud technologies” are also used. There is a so-called formation of “digital twins” of the territory, when data on the industrial potential and strategic vectors of socio-economic development of the territory are accumulated in the virtual space. Relying on spatial analytics, the authorities can get answers to questions about the real state of affairs in a particular territory, about the possible vector of changes associated with the turbulence of the external environment, obtaining this data on the basis of modeling and forecasting [7]. Without the development of digital technologies, the collection, processing and analysis of spatial data takes a long period of time and is associated with large errors. Information technologies will allow public authorities, economic entities and citizens to get free access to spatial data which will ensure transparency and efficiency of management. An experiment on the provision of state and municipal services in a digital format has already proved its success in a number of foreign countries. Of course, this format of communication will not replace the actual authorities, it is a kind of electronic shell that helps to optimize the communication process of state authorities, local selfgovernment, the business community and the population on the basis of information and communication technologies. Mass digitalization leads to the fact that a person will need to log in to various digital platforms, provide their personal data and transfer certain rights to their support in various life situations. Thus, a person has a “digital twin” and new forms of citizenship – digital or virtual. Naturally, the question arises about the protection of our personal data in cyberspace, the legal consolidation of the rights and responsibilities of the owners of digital platforms that collect personal information. As answers to these questions, we need legal acts that institutionalize the rules of behavior of agents in the virtual space. In addition, not all the data accumulated by public authorities can be open, some information will have the status of confidential, intended only for the heads of the executive power making managerial decisions. The leakage of this kind of information can cause a
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public authorities
economic entities
blockchainbased digital ecosystem
public associations
citizens
Information systems and telecommunications facilities
Fig. 1. A model of interaction in the digital ecosystem of the state (Source: authors).
significant blow to the national security of the country. To solve this problem, it is necessary to implement reasonable digital protectionism that regulates the norms of behavior and protects the interests of users and owners of digital platforms in the virtual space. In this regard, there is a need to propose a new conceptual model for managing socioeconomic development in the form of a digital ecosystem, which, unlike the traditional one, will be aimed at creating a single information field and a new form of constructive cooperation and coordination between participants in the virtual space, characterized simultaneously by relations of cooperation and competition (Fig. 1). The creation of such an ecosystem under the auspices of the state will allow implementing a mechanism of reasonable digital protectionism, which will protect the interests of users and owners of digital platforms in the cyberspace. The digital ecosystem should be implemented using blockchain technology, or as it is sometimes called the “Internet of values”, which, unlike the existing ones, already has security and high reliability at the database level, which is especially important for the effective work of public authorities accumulating and exchanging confidential information. A digital ecosystem based on blockchain technology will allow to harmonize and integrate various databases, cadastres, registers which are developed by various public authorities, thereby launching the implementation of the concept of cross-chain interaction. The creation of such a system will reduce the time and financial costs of collecting, processing and transmitting information necessary for public authorities to implement their functions in interaction with citizens and economic entities.
4 Discussion The mass distribution of information and telecommunications technologies finds its application in the field of business, state and municipal administration, in the daily life
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of a person [4]. The issues of digital transformation and the future of the world order are becoming the topic of discussion at global economic platforms: the UN Conference on Trade and Development (UNCTAD) [5, 6], the World Economic Forum in Davos [11]. Such close attention to the problem is not accidental. Humanity is on the threshold of a new economy based on the global analysis of information and the intensive development of telecommunications technologies. As you know, information has always been of key importance for the development of our society. However, today the process of obtaining and processing it is turning into a strategic resource for the development of socioeconomic systems of various complexity levels. To describe the processes taking place in the society, Nicholas Negroponte proposed a new term “digital economy” in 1995. The view that the world is moving into a new phase of breakthrough development is shared by Schwab, President of the World Economic Forum in Davos. He emphasizes that we are at the origins of a revolution that will fundamentally change our lives, our work and our communication. In terms of scale, scope and complexity, this phenomenon, which Schwab considers as the fourth industrial revolution, has no analogues in all the previous experience of mankind. “We have yet to grasp fully the speed and breadth of this new revolution” [3, p. 9]. Already today, IT technologies are literally revolutionizing traditional production sectors dramatically increasing the labor productivity and reducing transaction costs by automating routine operations, using robotics, and developing digital channels of interaction with the external and internal environment. Digitalization removes spatial and temporal restrictions when making commercial transactions, increases the availability of services provided by public authorities and commercial structures, forms new management models of economic entities. In this regard, there is a need to form a new model of managing the socio-economic development of the territory, which would stimulate the development of information technologies and create effective mechanisms for monitoring information exchange in cyberspace. This will create conditions for the harmonious integration of the national economy into the global world information network. The new paradigm should unite the economic, political, social and scientific life of the state and its subjects for further growth of the level and quality of life of the population in the conditions of the digital economy development.
5 Conclusion The expediency of creating a virtual model for managing socio-economic development in the form of a digital ecosystem will make it possible to show with less cost and more clearly how the interaction of a real object and the external environment occurs, as well as to identify factors and conditions under which this interaction will be optimal. Unlike traditional modeling, virtual geoinformation modeling will allow you to link to the terrain and identify spatial objects, as well as visualize spatial data using various IT tools. All this will allow us to consider various ways of developing the territory, placing productive forces, district planning, reconstruction and development of individual parts of the territory without significant costs. Using virtual models, it is possible to identify shortcomings in the design and possible consequences of the decisions made for the ecology and development of the social sphere of the territory at an early stage. Working with virtual and augmented reality opens up opportunities for the emergence
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of new forms and ways of distributing innovative products. Without such a system, socio-economic development will occur spontaneously, which, ultimately, will lead to fundamental changes in the geopolitical sphere and will threaten national interests and security.
References 1. Gureev, P.M., Degtyareva, V.V., Prokhorova, I.S.: National features of forming a digital economy in Russia. In: Popkova, E.G., Sergi, B.S. (eds.) ISC Conference - Volgograd 2020. AISC, vol. 1100, pp. 13–20. Springer, Cham (2020). https://doi.org/10.1007/978-3-030-39319-9_2 2. Kolesnikov, A.V., Zernova, L.E., Degtyareva, V.V., Panko, Y., Sigidov, Y.: Global trends of the digital economy development. Opcion 36(S26), 523–540 (2020) 3. Schwab, K.: Technologies of the Fourth Industrial Revolution. Eksmo, Moscow (2019) 4. Schwab, K. (ed.): The global competitiveness report (2018). http://www3.weforum.org/docs/ GCR2018/05FullReport/TheGlobalCompetitivenessReport2018.pdf. Accessed 2 Apr 2021 5. The United Nations Conference on Trade and Development: Digital economy report 2019. Value creation and capture: Implications for developing countries, September 2019 (2019). https://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=2466. Accessed 2 Apr 2021 6. The United Nations Conference on Trade and Development: Trade and development report 2019: Financing a global green new deal, September 2019 (2019). https://unctad.org/en/pages/ PublicationWebflyer.aspx?publicationid=2526. Accessed 2 Apr 2021 7. Tinyakova, V.I., Morozova, N.I.: Digital technologies in the field of public and territorial administration: new challenges and global trends. In: Vaganova, O.V., Solovjeva, N.E., Tinyakova, V. (eds.), Proceedings of the 8th International Conference on Contemporary Problems in the Development of Economic, Financial and Credit Systems, DEFCS 2020. Advances in Economics, Business and Management Research, vol. 157, pp. 183–188. Atlantis Press, Paris (2020) 8. Tinyakova, V.I., Morozova, N.I., Gunin, V.K., Kireeva, O.I.: Revival of the system of consumer cooperation in Russia; sustainable development of the territory and growth of quality life. Amazonia Investiga 8(18), 351–358 (2019) 9. Tinyakova, V.I., Morozova, N.I., Ziroyan, M.A., Falkovich, E.B.: Monitoring of human resources and a new educational structure for training specialists as key factors to reactivate the system of consumer cooperation in Russia. Amazonia Investiga 7(17), 353–359 (2018) 10. World Bank: The World Bank Annual Report 2010: Year in Review (2010). https://openkn owledge.worldbank.org/handle/10986/5906. Accessed 2 Apr 2021 11. World Economic Forum in collaboration with McKinsey & Company: Fourth industrial revolution beacons of technology and innovation in manufacturing, January 2019 (2019). http://www3.weforum.org/docs/WEF_4IR_Beacons_of_Technology_and_Inn ovation_in_Manufacturing_report_2019.pdf. Accessed 2 Apr 2021
Criteria for the Effectiveness of Corporate Social Responsibility A. V. Malkova(B) and Ya. S. Ignatova State University of Management, Moscow, Russia [email protected]
Abstract. In the modern world, close attention is paid to such social sciences as psychology, ethics, quality management and corporate social responsibility. These sciences study people’s relationships, person’s worldview, etc. They are of particular importance in the field of organization and implementation of the workflow. This contribution focuses directly on the sphere of influence of corporate social responsibility, its methods and tools, as well as on the practical effectiveness of its implementation in the company’s business processes. The purpose of this work is to study possibilities of applying corporate social responsibility methods to improve the psychological climate and working conditions for employees. The research tasks include: the study of the theoretical aspect, the identification of relevant and useful information, the analysis and forecasting of potential results of the application of the methodology in the organization. Based on the results of the study, it is planned to create a list of possible application areas for the methodology of corporate social responsibility, as well as to formulate the practical effectiveness of the application of the studied methods. Keywords: Benefits of implementing CSR in organizations · Corporate Social Responsibility (CSR) · CSR methods and tools · Human resources · Internal CSR · Turquoise companies
1 Introduction The trend of the new day in the field of personnel potential management and workflow organization is Corporate Social Responsibility (hereinafter referred to as CSR). However, this technique cannot be called a novelty. The term corporate social responsibility or its synonyms, such as responsible business or corporate social opportunities, has been known since the mid-1970s. The emergence of this methodology is due to the separation of business ethics into an independent science, which was engaged at that time and continues to be engaged at the moment in the study, analysis and search for solutions to ethical and moral problems that arise during the implementation of the business process [7]. At first, the CSR methodology was an applied tool of business ethics and dealt exclusively with internal issues of the company. With the passage of time and the emergence © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 500–505, 2022. https://doi.org/10.1007/978-3-030-94873-3_63
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of radically new problems, the area of responsibility of CSR began to increase, and the methodology itself began to develop. Thus, corporate social responsibility has acquired its current form. So, today the term “corporate social responsibility” is interpreted as follows: corporate social responsibility is a concept in which companies voluntarily integrate social and environmental policies, business operations and relationships with the entire range of parties related to the company [8]. Based on the definition of the term, we can assume several possible reasons why the CSR methodology has become popular in our time. First, the science of CSR is directly related to people, whether they are employees or customers. In the modern world, more and more branches of life and business are coming to the simple idea that the main thing is not profit, and not automation, but people, just like a few decades ago. Without a person, there will be no onventions, without a person there will be no customers, without a person there will be no new ideas and progress. The second reason for the popularity and demand for this technique is the relevance of environmental problems, as well as the need to find solutions to them. The dynamics of environmental indicators in the future depends entirely on the quality and efficiency of decisions taken today. Therefore, attracting business to the problems of modern ecology, as well as conducting a certain educational program in the field of ecological footprint and environmental responsibility will play an important role in improving the overall situation in this area.
2 Methodology As a methodological and informational base in the process of research, the authors selected theoretical lecture materials on the discipline “Corporate Social Responsibility”, as well as public information about the practical application of this methodology, the results and effectiveness of its implementation. In addition, during the study, the principles of modern methods in the field of reorganization of the workflow and personnel policy of companies called “turquoise companies” were studied and analyzed [2]. The authors used the following methods to conduct the study: 1. Collection of secondary information on the subject of corporate social responsibility, methods, tools and tactics used during its implementation. 2. Study and analysis of theoretical information about the typology of the term “corporate social responsibility”, as well as the content of methods, principles and tools of this methodology. 3. Sorting of general information and isolation of relevant and useful information from the total volume, as well as its analysis and formulation of possible results from the application of the studied methodology. 4. Collection of secondary information on the practical application of the “corporate social responsibility” methodology and the results of its implementation. 5. Analysis of the received information for actual examples confirming the author’s hypotheses about the results of the method application.
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3 Results According to the CSR model, an employee is not just a tool for implementing a business process, but an irreplaceable and unique part of the team, on which the success of the entire organization depends. Therefore, by implementing CSR in its activities, the company ceases to be an ordinary organization for the sale of products or the provision of services, it becomes a single organism, the elements of which must work in harmony and interaction. And just as a person most often has one set of organs from the beginning to the end of life, so the company’s body tries to preserve the original composition of employees. After all, replacing one element leads to forced downtime due to the need for training and adaptation of a new team member. Accordingly, it is more profitable to develop your employee, rather than look for a new one. In addition, the internal CSR system helps the company to attract the best specialists in the market to positions, because, as a rule, employees who know and adequately assess their abilities are looking for a job not only according to the criterion of a high salary, but also according to working conditions, for example, the arrangement of a workplace, the presence of a recreation area in the company building, providing employees with various training programs, training and retraining of personnel, organizing field events, etc. [1]. Training and advanced training of personnel on the basis of the company plays an important role for the development of not only the employee, but also the entire organization, since the developed courses taking into account the needs of a particular company are narrower and are aimed at teaching a person the skills and knowledge that will be directly needed when working in this company. However, there are also disadvantages. If for any reason an employee trained in this system leaves and moves to another company that is a direct or potential competitor for the first one, he will take with him this individual and specific knowledge and experience, thereby organizing an information leak [11]. In this case, there are two ways to solve the problem: either each employee signs a non-disclosure agreement on training methods in the case of a transfer to another organization, which from a psychological point of view undermines the employee’s trust in his management and the company as a whole, or the company, listening to the needs of its employees, using various methods, including CSR, creates comfortable and cozy working conditions, starting with material remuneration for the work done and ending with a convenient workplace for a particular employee. This approach creates a feeling among employees that they are not just hired personnel performing their functions to increase the company’s profit, but part of a cohesive unified team that works and develops as a whole, and each element of this team is important and takes its place in the process of achieving the goal [3]. A sense of involvement in the development of the company and the opportunity to observe the benefits of their work are highly effective tools for motivating employees to continue their business and stay in the company. In addition, the use of methods and tools of this technology in the company serves as a certain type of advertising of the company’s products or services. The tool for spreading information in this case is the so-called “word of mouth”, which is expressed in the fact that employees, if we are talking about internal CSR, and customers, if we are talking about external CSR, begin to tell their friends or post on social networks certain ways
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of manifesting the CSR methodology. Thanks to this, people who did not know about the company and its activities earlier automatically become potential customers of this organization. A similar way of advertising is to cover the company’s activities in the field of corporate social responsibility in various media. Whether it is a news video on television or a post on a social network aimed at telling about the company’s activities, one way or another it will act as an advertisement among viewers or subscribers of these media. With the help of the media, a company can not only declare its existence, but also form a positive image in society or raise its reputation, thereby attracting new potential customers and partners [9, 10]. In addition to the advertising aspect, the contribution to the further positive development of the organization in the long term can be considered as the motive for the introduction of this methodology into the life of the company. The fact is that corporate social responsibility is the foundation of favorable relations between employees, as well as a guarantee of the staff’s trust in their superiors. In turn, the absence of conflicts in the team minimizes various risks that threaten the well-being of the company, and contributes to increasing staff confidence in the “future”. In addition, from a material point of view, corporate social responsibility helps to attract investment capital to the company, and also guarantees tax benefits to employees. The company can use the funds received for deeper implementation of CSR in the future, thereby determining the movement direction and value guidelines. However, corporate social responsibility is not a panacea for all the problems of the company. CSR is one of the many methods of planning and organizing the company’s activities in relation to itself and to its customers. It follows from this that this technique has both advantages, which are not few, but also disadvantages that can become an obstacle to the successful implementation of its tools. CSR is called responsibility for a reason. The method itself will not work. The implemented changes begin to benefit and contribute to the development of the company, if the management and all employees of the organization comply with the rules prescribed by this methodology, as well as fulfill their duties and take responsibility for the results of their actions, and especially failures. Only when performers and managers stop turning a blind eye to “unsolvable” problems and begin to admit their mistakes, the CSR methodology will be relevant and appropriate for implementation. At the planning stage of the CSR use in the organization’s activities, managers need to understand that corporate social responsibility requires from the organization not only to comply with the rules and instructions, but also financial investments, as a rule, in non-core areas of the company’s activities. Without a well-thought-out allocation of funds, the CSR methodology can cause more harm than good. In other words, developing non-core activity areas, the company may not notice the threats and risks in the main activities which will lead to loss of profit or bankruptcy of the company. In addition to financial risks, the problem of implementing CSR is that there is no clear framework regulating this area in our state. Corporate social responsibility is regulated only by the rules and norms of morality whose distinctive feature is the lack of a firm framework and clear boundaries. Therefore, it is impossible to clearly say what exactly is included in the concept of corporate social responsibility, and what is
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beyond it. Each manager independently determines the implementation area and impact of CSR, and therefore fully assumes responsibility for the adequacy and acceptability of the implemented methods.
4 Discussion Using various methods and techniques, with the help of corporate social responsibility, you can radically change the company, its image and reputation, and most importantly, increase the benefits brought to the surrounding world. As already mentioned, the immediate purpose of this work is to study possibilities of applying corporate social responsibility methods to improve the psychological climate and working conditions for employees. But first it is necessary to study the theoretical part of the problem under consideration. CSR includes two areas of activity: internal and external. External corporate social responsibility is engaged in the formation of the company’s reputation through participation in charity, assistance in emergency situations, as well as assistance to organizations engaged in environmental protection [8]. In addition, external CSR is responsible not only for the company’s reputation in the society, but also for its image among direct customers and buyers. In other words, external CSR includes responsibility to consumers. This responsibility includes ensuring an appropriate level of quality of the sold products or the provided services, as well as providing the client with post-sale interaction [1]. In turn, the internal corporate social responsibility regulates and provides comfortable working conditions for the company’s employees. Its area of responsibility includes the payment of a stable salary and maintaining its socially significant level, ensuring labor safety, voluntary medical and social insurance of employees, the development of human resources through training programs, providing assistance to employees in critical situations [8]. So, if the main task of external CSR is mostly the formation of a positive image of the company for the outside world, as well as increasing the customer loyalty, then the goal of internal CSR is to create comfortable working conditions for employees. Studies have proved that a favorable climate in the workplace increases the motivation and efficiency of personnel, and therefore contributes to improving the overall efficiency of the workflow [3]. Considering the internal CSR, we can talk about the motives for implementing the methodology. Firstly, this area of the studied methodology is an excellent tool for combating staff turnover. This is due to the fact that favorable and attractive working conditions are created in the company, and the employee himself strives to become part of the working process and the team on a voluntary basis, thereby satisfying his need to belong to a social group [4].
5 Conclusion Summing up, we can say that corporate social responsibility is a powerful sociopsychological technique aimed at the development of the company by establishing relationships with the client, as well as awareness of the value of its employees. With the
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proper use of its tools, the manager can build a so-called “turquoise company”, which is based on the principles of CSR. Turquoise companies are built on three key rules: self-organization, integrity and an evolutionary goal. The term self-organization hides the rejection of the stereotype “initiative is punishable” and encourages employees to express their ideas and participate in the life of the company [6]. The principle of integrity is responsible for the attitude and behavior of employees and superiors of the company. This principle is based on the acceptance of the employee and the manager not only as a labor resource, but as people with feelings and emotions, thanks to which they perform their functions and bring something new to the company’s activities. An evolutionary goal means preferring the social significance of a project to making a profit from it. In other words, in turquoise companies, the meaning and essence of the project is more important, its benefits for the community and the surrounding world, and not the amount of profit that it will bring to the company. Many new studies confirm the effectiveness and relevance of turquoise companies in the modern world. Scientists explain this by the wave of popularity of psychology and similar sciences today. Therefore, it can be concluded that the earlier companies switch to new standards, the easier it will be for them to adapt to innovations in the future, since having mastered the basic principles of the methodology, it is easier to understand the meaning of the built-in innovations [5].
References 1. Antonov, V.G., Korotkov, E.M., Zhernaovsky, M.B.: Management. Knorus, Moscow (2020) 2. Borisova, V.V.: Methods of Decision-Making. SUM, Moscow (1998) 3. Borshcheva, A., Kuzmina, E., Soklakova, I.: The role of personnel assessment in the process of human resource management. Vestnik Universiteta 11, 5–10 (2018) 4. Bukeykanov, N.R., Gvozdkova, S.I., Nikishechkin, A.P.: Maslows hierarchy of needs and the need for management. Russ. Reg. Look Fut. 4(4), 15–28 (2017) 5. Butov, A.V.: Home and overseas experience in developing turquoise organization. Bull. Plekhanov Russ. Univ. Econ. 2(104), 153–162 (2019) 6. Deryugina, O.: Why is everyone talking about turquoise organizations and what is it all about? (2019). https://zen.yandex.ru/media/zehmedia/pochemu-vse-govoriat-o-biriuzovyhorganizaciiah-i-chto-eto-voobsce-takoe-5d7f8e24fc69ab00ae2455c3. Accessed 19 Apr 2021 7. Gridneva, O.V.: The history of development and the concept of corporate social responsibility. Legal J. 2, 234–236 (2017) 8. Korotkov, E.M. (ed.): Corporate Social Responsibility. Urait, Moscow (2019) 9. Kuzmina, E., Soklakova, I.V.: Stages of the company’s business reputation management: practice and problems of formation. Sci. Notes IMEI 6(4), 74–81 (2016) 10. Kuzmina, E.: The role of creativity in key competences of a manager. Upravlenets 6(58), 10–17 (2015) 11. Ogorodnikova, N.L.: Tools of the mechanism for stimulating corporate social responsibility in the enterprise activity management system. Bull. Econ. Sci. Ukraine 21(1), 114–117 (2012)
“Digital Economy” Concept in the Russian and Kazakh Media Sphere O. A. Popovich1 , N. F. Krylova2(B) , and D. S. Tashimkhanova3 1 Pavlodarskiy Gosudarstvennyy Universitet Imeni S. Toraygyrova, Pavlodar, Kazakhstan 2 State University of Management, Moscow, Russia 3 L.N. Gumilyov, Eurasian National University, Astana, Kazakhstan
Abstract. The contribution discusses some ways of representing the concept of “digital economy” in the Russian and Kazakh popular media discourse, which most clearly reflects the socio-economic processes taking place in the modern world. On the basis of media texts, an up-to-date dictionary of the digital economy is compiled, and its semantic core is revealed, which determines the functional weight of nominations in the language of society. The paper analyzes the polypropositional nature of the concept, identifies the main structural components of its proposition, represented in the Russian and Kazakh mass media. Special attention is focused on the semantic components related to various blocks of the propositional structure involved in the formation of the concept of “digital economy”. Keywords: Concept · Digital economy · Digitalization · Media discourse
1 Introduction Socio-economic processes influence the process of forming key concepts of the mental world of society. Today, the digital economy is one of the most actively analyzed and discussed aspects of the global socio-economic process. The main activity areas in the field of digitalization are reflected in state documents. In Russia and Kazakhstan, the corresponding programs were adopted – “Digital Economy of the Russian Federation” [10] and “Digital Kazakhstan” [13]. The term “digital economy” has been used since the end of the XX century and is associated with the name of the American computer scientist Nicholas Negroponte. The main features of the concept formulated by the scientist are largely reflected in the definition, which is legally fixed in the Russian Federation [7]. In the Strategy for the Development of the Information Society in the Russian Federation for 2017–2030, the digital economy is defined as an economic activity in which the key factor of production is digital data, the processing of large volumes and the use of the analysis results of such data, compared with traditional forms of management, can significantly increase the efficiency of various types of production, technologies, equipment, storage, sale, delivery of goods and services [6]. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 506–512, 2022. https://doi.org/10.1007/978-3-030-94873-3_64
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It should be noted that in the scientific literature, the concept of “digital economy” has a number of definitions, which is due to the complexity of this concept. First, the concept is located at the intersection of two concepts – economy and digitalization. The initial concepts, “economy” (the economic activity of a society, a set of relations that develop in the process of this activity) and “digital” (a type of data formats that use discrete states), have a fairly wide extensionality. Combining these concepts led to a certain concretization and narrowing of the basic concept, on the one hand, and to the actualization of its peripheral features, on the other hand. Secondly, the concept of “digital economy” is a polypropositional one, i.e. it reflects whole situations, dynamic fragments of the world. The propositional nature of the concept implies a certain type of its structuring, the presence of certain types of components. In our work, we tried to analyze the concept of “digital economy” by isolating the components of this concept that are actualized in the Russian and Kazakh sociospatial space. The material of the study was texts that cover issues of the digital economy, Russian and Kazakh popular media discourse, most clearly reflecting the socio-economic processes taking place in the modern world.
2 Methodology Empirical and theoretical methods were used in the research process. We used general scientific methods of analysis, synthesis, comparison, and modeling. Linguistic methods and techniques were used: methods of conceptual analysis and cognitive modeling, content analysis, discourse analysis. The study was conducted within the framework of a systematic approach, which is the methodological basis of modern science. The methodological basis of the study was made up of works on cognitive linguistics by Popova, Sternin [11], Stepanov [12], Kubryakova [8]. It should be noted that the cognitive approach is currently actively used in socio-humanitarian knowledge [4]. We also relied on research in the field of digital economy. Dissertations and scientific articles on the problems of the digital economy were analyzed.
3 Results In the Russian and Kazakh media discourses, the concept of “digital economy” is represented by a fairly wide set of nominative units, which can be conditionally called the contemporary dictionary of the digital economy (CDDE). To determine the CDDE, we conducted a semantic analysis of texts using the Advego seo-analysis program (https:// advego.com/text/seo/), which made it possible to identify the most frequent representative words of the concept “digital economy”. The results of this analysis are shown in Table 1. The frequency of use of a nominative unit is a reflection of its functional weight in the language of society, an indicator of the relevance of the meanings expressed by it. The listed nominative units with the highest frequency index are included in the nuclear zone of the concept “Digital Economy”. The analysis of media texts showed that the structure of the concept “Digital Economy” includes a number of semantically interrelated certain thematic fields (which are represented in the texts by nominative units): digitalization,
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Phrase/word
Frequency, % Russia
Kazakhstan
Digital
8.73
10.71
Digitalization
8.12
7.14
Electronic
1.06
5.19
Digital Kazakhstan
4.55/9.09
Artificial intelligence
4.22/8.44
Informational
1.75
3.90
Digital technology
2.91/5.82
3.90/7.79
Digital competences
0.79/1.59
Digital transformation
2.38/4.76
Digital tools
0.53/1.59
Figure
1.06
Digital literacy
0.53/2.12
Technology
2.91
3.90
Information systems
1.06/2.12
2.92/5.84
Information security
1.06/2.12
Information modeling
0.79/1.59
Digital government
2.27/4.55
Economya
1.06
1.95
Digital economy
1.32/2. 65
1.95/3.90
Digital solutions
1.06/2.12
Automation
0.53
1.30
Big Data technology
0.79/2.38
1.30/3.90
Transformation of the digital economy
0.53/1.59
Communication platforms
0.53/1.06
Source: authors.
automation, technologization, IT, informatization, internetization, artificial intelligence, platforms, modernization, VR, cybersecurity, startups, innovations, integration, smart, remote format. The information provided by the media about the digital economy can be divided into a number of semantic blocks. Both Russian and Kazakh media texts devoted to the problems of the digital economy indicate: – – – – –
industries, areas in which the processes of digitalization are discussed; aspects, areas considered within the industry, etc.; documents regulating activities in the field of digitalization; institutions related to this activity; platforms, projects that are the result of activities and serve to achieve new results;
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– events held to discuss current problems in the field of the digital economy; – personalities, project managers, institutions responsible for various types of activities; – planned results of activities in the field of digitalization. The semantic components related to the above blocks are more or less involved in the formation of the concept “digital economy”, and their information density is an indicator of the relevance of certain aspects of digitalization processes for the analyzed media space. 1. Areas of activity. In 2020, both in the Russian and in the Kazakh media discourse, the processes of digitalization were most actively discussed in the following areas (in some texts, a number of issues related to different spheres were touched upon): public administration, information and communication technologies and the Internet of Things (the Smart City project, which is becoming increasingly relevant in the context of urbanization [1]), the banking system, education, healthcare, integration (economic integration, integration of information systems, including the EAEU), cybersecurity, the armed forces, sustainable development of regions, digital literacy of the population, development of IT technologies, internetization, construction, agricultural industry, assessment of digitalization processes, financing of the Digital Kazakhstan program (Kazakh mass media). 2. Aspects of the activity. Digitalization of public administration has become the most discussed area in 2020. In the field of public administration, the media most often touched upon the issues of introducing electronic public services, including using an electronic digital signature, reducing paper document circulation, problems of creating and developing information systems and technologies of electronic government, creating a unified monitoring system that unites all state agencies, general issues of implementing the Digital Economy program (Russian media) and Digital Kazakhstan (Kazakh media). Within the framework of the smart city concept, issues of creating reference standards for “smart” cities of the Russian Federation and the Republic of Kazakhstan were discussed, a number of articles are devoted to the creation of intelligent transport systems and traffic control centers. In the field of the banking system, the topics of non-cash economy, non-cash payments, online currency conversion through Internet banking or mobile applications of banks are relevant. The number one issue in the field of education is distance learning, the creation of online schools; the development of educational projects, the creation of student startup projects is being updated. The topic of training specialists in IT fields is particularly highlighted. In the field of healthcare, the issues of switching to paperless healthcare, the introduction of information systems, including third-party products, electronic health passports, the work of services on the e-government portal, the collection of an array of health data are discussed. In the Russian and Kazakh mass media, attention is focused on the problems of economic and information integration: the integration of databases (ministries, state bodies), the creation of a single digital platform, and Eurasian integration. The active introduction of information technologies has led to the actualization of cybersecurity issues. The media, on the one hand, discuss the need to take effective measures to ensure cybersecurity, and on the other – the problems of state inspection of personal information of citizens. The issue of installing the Qaznet Trust Network
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security certificate is quite acute (Kazakh media), the contradictions that arise between the special services of different states are also indicated, in particular, the violation by Western countries of the sovereign right of the Republic of Kazakhstan to install its own security certificate on its territory (Kazakh media). A number of texts of the Kazakh media discourse address the problems of digital modernization of the army: automation of resource management systems of the armed forces of the Republic of Kazakhstan, the introduction of the posts of officers for automation and digitalization into the structure of the departments of the commanders-in-chief of the types and branches of the armed forces, the reduction of the management cycle due to the introduced technologies, the implementation of the project “Digital local military management body”. The sustainable development of the regions became the main topic of the international forum (Kazakh mass media). The speeches of the participants of the event were devoted to the use of artificial intelligence, discussion of the economic effect of its application. An exhibition of IT solutions was also held within the framework of the forum. It has been repeatedly noted in the Kazakh mass media that the problem of computer literacy of the population has worsened in the conditions of quarantine. There is an increase in digital literacy of the population (82.1% in 2020), a target indicator is provided to increase this indicator (to 83% by 2020). Most of the articles of both Russian and Kazakh mass media devoted to IT spheres, as a rule, touch on the most general issues of the development of information technologies. Against their background, there are materials discussing the development and implementation of remote biometric identification, ensuring the security of the use of biometric data of citizens. In the context of the transition of schoolchildren and students to distance learning during the quarantine period, as well as part of the population to a remote form of work, the issue of the availability of broadband Internet has become particularly acute, which is also reflected in the authors’ publications. In the construction sector, the issues of using digital technologies are discussed in order to strengthen the control of construction works, improve their quality, and ensure the transparency of the construction process. The information system “E-Kurylys” has been developed and implemented in Kazakhstan, it is planned to create a single database of developed construction projects. The journalists emphasize that the processes of digitalization in the field of agriculture affect the overall development of the agro-industrial complex, which should ensure the country’s food security. It is also noted that the introduction of digital technologies (forecasting weather conditions, the introduction of precision farming technologies, control of the seed fund, etc.) can contribute to a significant increase in yield. The media also discuss issues of financing the digital economy (Russia) and Digital Kazakhstan programs, a number of articles talk about the spread of false information on social networks about excessive spending of budget funds on the implementation of such programs. 3. Projects, platforms. the following projects and platforms are the most discussed in the Russian media discourse: – “My Documents Online” is a mobile application that provides data exchange with various information systems of the MFC (multifunctional centres); – the project “Smart City-2030” (Moscow) - the use of digital technologies for centralized management of the urban environment and improving the lives of citizens;
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– the project “Active Citizen” - a system of electronic surveys to obtain the opinions of citizens on topical issues of Moscow’s development; – “Mobile Engineer” (UNIT-ORG) - an application for ensuring the work of service engineers for the maintenance of office equipment in offices; – the Digital Agriculture project, aimed at ensuring digital transformation and development of the agro-industrial complex through the introduction of digital technologies and platform solutions. The most discussed projects and platforms from the position of the Kazakh media discourse are: – eGov – the portal of the electronic government of the Republic of Kazakhstan; today, almost 90 types of services can be obtained through the mGov application; – the Smart City project (Smart Astana, Smart Almaty, Smart Taraz) is a project aimed at integrating a number of information and communication technologies in the field of urban infrastructure; – Smart Bridge is a single platform aimed at simplifying the processes of interaction between public authorities and the private sector; – Smart Data Ukimet – a single data warehouse, a tool for collecting, analyzing information, monitoring economic growth; – E-Kurylys is a single digital platform for all construction participants with the possibility of connecting various interested bodies to it.
4 Discussion The digital economy issues are considered from different aspects and within the framework of various scientific directions. In recent years, a number of studies have appeared in the field of economics, defining the digital economy as a new socio-economic structure formed as a result of the emergence of new technologies, devoted to the construction of theoretical concepts of the country’s and region’s development that meet the technological and socio-cultural challenges of the XXI century. The scientific works consider integration processes of the digital economy with other activity spheres, problems of managing the innovation environment, the formation and accumulation of knowledge, the development of human capital in the digital economy. The digitalization processes in the field of agriculture, education, healthcare, banking, etc. are analyzed; the possibility of building an ecosystem of the digital industry is presented [2]; the key directions of the impact of digitalization processes on the functioning models of the economy and society are highlighted [3]; new opportunities in the social and labor sphere caused by the digital transformation are identified [9], specific features of the implementation of digital technologies in the financial management of economic activity are considered [5]. There were also works devoted to the understanding of the concept of “digital economy” [7]. Our research is interdisciplinary in its nature, the methods of cognitive linguistics and discourse analysis are used to describe the concept of the digital economy. This approach, in our opinion, allowed us to consider the most relevant components of the concept of “digital economy” in the sociospatial space.
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5 Conclusion One of the competitiveness factors of states is currently the introduction of advanced digital innovations, which make significant changes in the socio-economic, production processes of the country. The problems of the digital economy are considered from different aspects and within the framework of various scientific directions. Within the framework of this contribution, an attempt is made to analyze the conceptual component of the digital economy. Based on the texts of popular Russian and Kazakh mass media, a dictionary of the digital economy was compiled that is relevant for the media discourse, and its semantic core was revealed, which determines the functional weight of nominations in the contemporary language. In the course of the analysis, the propositional components of the concept (that are relevant for the media discourse) were identified, the semantic components involved in the formation of the digital economy concept were described.
References 1. Akaev, A.A., Desyatko, D.N., Petryakov, A.A., Sarygulov, A.L.: Regional development and the education system in the context of digital transformation. Econ. Reg. 16(4), 1031–1045 (2020) 2. Akatkin, Y., Karpov, O.E., Konyavskiy, V.A., Yasinovskaya, E.D.: Digital economy: conceptual architecture of a digital economic sector ecosystem. Bus. Inform. 4(42), 17–28 (2017) 3. Attrey, A., et al.: Vectors of digital transformation. Int. Organ. Res. J. 15(3), 7–50 (2020). https://doi.org/10.17323/1996-7845-2020-03-01 4. Boldyrev, N.N.: Cognitive approach in linguistics and related areas of research. All Russ. Acad. J. Issues Cogn. Linguist. 2, 5–25 (2020). https://doi.org/10.20916/1812-3228-2020-25-25 5. Chernov, V.A.: Implementation of digital technologies in financial management. Econ. Reg. 16(1), 283–297 (2020). https://doi.org/10.17059/2020-1-21 6. Decree of the President of the Russian Federation No. 203 from 09.05.2017 “On the Strategy for the development of the Information Society in the Russian Federation for 2017–2030” (2017). http://kremlin.ru/acts/bank/41919. Accessed 7 Feb 2019 7. Denisov, Y., Ionina, M.B.: Digital economy: concept and essence of the phenomenon. Context Reflect. Philos. World Hum. Being 8(1A), 199–206 (2019) 8. Kubryakova, E.S.: About the place of cognitive linguistics among other sciences of the cognitive cycle and about its role in the study of the processes of categorization and conceptualization of the world. Cogn. Lang. Stud. Types Categ. Lang. 7, 13–18 (2010) 9. Lebedeva, L.: Digital transformation in the socio-labor sphere: new challenges and opportunities. Mirovaya Ekonomika i Mezhdunarodnye Otnosheniya 63(12), 42–49 (2019). https:// doi.org/10.20542/0131-2227-2019-63-12-42-49 10. Program “Digital Economy of the Russian Federation” from 28.06. 2017. №1632-r (2017). http://government.ru/docs/28653/. Accessed 11 Aug 2021 11. Popova, Z.D., Sternin, I.A.: Cognitive linguistics. AST, Vostok-Zapad, Moscow (2007) 12. Stepanov, Yu.S.: Concepts. The thin film of civilization. Languages of Slavic Culture, Moscow (2007) 13. The state program “Digital Kazakhstan” from 12.12.2017. № 827 (2017). http://adilet.zan. kz/rus/docs/P1700000827. Accessed 10 Apr 2021
Research on The Use of Logistics Efficiency Improvement Tools by Russian Companies E. V. Tsenina1 , K. V. Erygin1 , and E. S. Kurbatova2(B) 1 Plekhanov Russian University of Economics, Moscow, Russia
{Tsenina.EV,Erygin.KV}@rea.ru
2 State University of Management, Moscow, Russia
[email protected]
Abstract. The contribution considers the concept of logistics efficiency and offers tools related to the implementation of management decisions to improve it: smart manufacturing, IoT (Internet of Things), RFID technologies, e-procurement, ABC-XYZ analysis, cross-docking, JIT (just-in-time), EDI (electronic data interchange) and others. The key results of the study show how domestic companies apply these tools in their business practices. The peculiarities of using tools for implementing management decisions depending on the activity field of companies are analyzed. The change in the impact of supply chain risks in the five-year perspective is highlighted in a multidimensional manner. In addition, the current state of the structure of logistics outsourcing, the use of logistics tools and technologies is determined. The study of the practical experience of using various tools to improve the efficiency of logistics activities has shown the importance of studying them, especially because the proposed tools are associated with strategic guidelines for the logistics development. Keywords: Logistics · Logistics efficiency · Outsourcing · Resilience · Supply chain management · Tools for improving logistics efficiency
1 Introduction In the conditions of the changeable external environment, ensuring the resilient functioning of supply chains is of particular importance and complexity. Current risks, new goals, as well as the requirements of various stakeholders make it necessary to evaluate and compare the experience, characteristics and business practices in the field of logistics activities. The key points in this regard, in addition to monitoring the dynamics of the impact of the risk consequences in supply chains, are monitoring the practice of using various tools and technologies to improve the efficiency of logistics activities, as well as building processes in accordance with the requirements of sustainable development. A wide range of functions, tasks and areas of logistics complicates the definition of criteria for the efficiency of logistics activities, as well as the choice of specific measures and methods to achieve it. At the same time, the formation of logistics strategies depends on the determination of the efficiency of logistics activities. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 513–522, 2022. https://doi.org/10.1007/978-3-030-94873-3_65
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There are various reasons for improving and reorganizing the logistics system: this can be both the development of something new (new markets, the launch of a new brand, the expansion of the assortment, etc.) and the leveling of existing shortcomings of work (a drop in the inventory turnover, an increase in the number of complaints, an increase in logistics costs, etc.). An important role in the development of the logistics system is played by those practices and tools for improving the efficiency of activities that are integrated or will be integrated into internal business processes. In this regard, these tools and practices act as supporting elements of the logistics strategy which in turn is formulated based on the general corporate strategy. Taking into account logistics aspects within the framework of a general corporate strategy is the basis for improving the logistics system as a whole, as well as integrating relevant business practices and tools for improving business efficiency in particular. Thus, the researchers note the dependence of the possibility of evaluating the efficiency of logistics activities on the level of integration of logistics into the corporate strategy of the company [10]. The risks faced by companies and the constant work in conditions of uncertainty can also encourage companies to master new methods of increasing resilience and competitiveness [6, 9, 15], which makes the issue of studying corporate approaches to logistics activities even more relevant.
2 Methodology The researchers agree that talking about performance it is crucial to bear in mind both economy-oriented (aimed at reducing costs) aspect and goal-oriented (aimed at achieving planned results for a specific management object) one representing efficiency and effectiveness correspondingly [13, 14]. At the same time, the content part of the concept of logistics activity efficiency is expressed by the ratio of the quality level of the logistics system functioning and the level of resources spent on its provision [2]. The factors influencing the efficiency of logistics activities are proposed to be divided into controlled (logistics goals, tasks, time of logistics operations, quality of services, level of logistics costs) and uncontrolled (consumers, competitors, level of technological development, level of information development, economic and political situations) [8], that in our opinion is not entirely legitimate. But since, by competently building its logistics strategy (adapting to the changing requirements of consumers, taking into account the new approaches of competitors, developing its technological potential, etc.), the company can reduce the impact of external factors on its activities, from our point of view, it would be more correct to divide them into internal and external in relation to the focus company. At the same time, it is possible to mitigate the impact of external factors on the company’s business processes by using various tools (information technologies, methods of consumers classification, etc.). The result of comparing the composition of factors, sources of risks, should be the formation of a comprehensive system of indicators for evaluating the efficiency and effectiveness of logistics activities [8]. For a more accurate assessment of the relationship of these indicators with the composition of factors and risks, it is advisable to use mathematical models of the mechanism for managing factors of logistics activities (for example, correlation and regression analysis, which makes it possible to identify the nature of the influence of various causes on the results of the simulated processes).
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In the scientific environment, the issues of the efficiency of logistics activities, the analysis of factors, the development and systematization of its criteria are widely covered [4, 11, 12]. In addition, there are many studies of the introduction and application of individual efficiency improvement tools for solving specific practical tasks at a particular enterprise, for example, the experience of reengineering business processes based on a specific enterprise [7], the introduction of Kanban boards or automated workstations, the use of ABC-XYZ analysis for implementing the concept of lean production at an industrial enterprise. In our opinion, the problem of selecting specific measures and tools for implementing management decisions aimed at improving performance indicators requires further research. It is also necessary to systematize existing tools and identify areas for more active use of new and not very common tools. We conducted a study of the practice of using the most popular efficiency improvement tools at Russian enterprises (6 sigma, smart manufacturing, IoT (Internet of Things), RFID, e-procurement, ABC-XYZ analysis, ECR, cross-docking, JIT (Just-in-time), VMI (vendor-managed inventory), EDI (electronic data interchange) and analyzed specific features of their use depending on the activity field (trade, production or services). In our opinion, the motivation for the introduction of innovative solutions (new methods or tools) is largely determined by the desire to reduce the risks of logistics activities, which in turn are the cause of bottlenecks. Since any failure or conflict in the company’s activities can be considered as a realized risk, we paid special attention to the perception of risks. In autumn of 2020, a study was conducted by interviewing specialists in the field of supply chain management working in companies of different industries. As a result of the study, data were obtained from 44 respondents of large, medium and small organizations in Moscow and the Moscow region. The questionnaire included 14 questions, 4 of which are open. The purpose of this study was to identify the key features of the practice of organizing logistics activities by domestic companies, as well as to identify the presence of trends in this area. The relevance of such a study is caused by the fragmentarity of existing publications on this topic. Thus, studies of the practice of using logistics tools and technologies by domestic companies are practically not represented in the scientific discourse, and the predictive structure of logistics outsourcing requires empirical verification.
3 Results As a result of the conducted research, it was found that over the past 5 years, 47% of companies have felt the increasing impact of risks, about 40% have not felt strong changes in the business environment in terms of threats and increased uncertainty, and for a small proportion, 13%, the impact of the consequences of risks on business has even decreased (Fig. 1). This means that despite the changing external circumstances, the resilience of the company depends on its flexibility and adaptability.
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40
40
38
35 30 25 20 15
13 9
10 5 0 a slight decrease
no changes
small growth
significant growth
Fig. 1. Dynamics of the consequences of the impact of supply chain risks that organizations have begun to face over the past 5 years (Source: authors).
Many companies noted the impact of COVID-19 on business in the form of uneven demand, reduced customer solvency, lack of qualified personnel, instability of cargo flows, non-fulfillment of contract terms by suppliers, etc. This new risk factor could be the reason that a number of companies with relatively less adaptive capabilities noted an increase in the consequences of the risk impact on supply chain. It should be noted that trade organizations felt more threats (Fig. 2). This may be caused by the fact that, due to the specifics of their activities, these companies felt more strongly the change in demand because of the pandemic, as well as changes in the formats of end-user purchases (switching to online, etc.). The increase in the impact of different intensity from risks was noted by 51% of logistics companies (Fig. 3), which by their nature are quite sensitive to increased, especially over the past year, gaps and disruptions in supply chains. In order to better perform their key functions, companies often outsource non-key functions. Our research has shown that in the vast majority of logistics companies, transportation is transferred. This is probably related to the fact that the concept of logistics is often equated in the business community with transportation (Fig. 4).
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60 52
50
50 40 31
31
33
34
31
30 20 10
8
5
10
7
8
0 a slight decrease
no changes
Manufacturing enterprises
small growth
Commercial enterprises
significant growth
Service sector enterprises
Fig. 2. Dynamics of the consequences of the impact of supply chain risks that organizations of various industries have begun to face over the past 5 years (Source: authors).
50 43
45 39
40
39
38
35 30 25 20 15 15 10
13 7
6
5 0 a slight decrease
no changes
Non-logistics companies
small growth
significant growth
Logistics companies
Fig. 3. Dynamics of the consequences of the impact of supply chain risks that logistics and non-logistics organizations have begun to face over the past 5 years (Source: authors).
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6.20% 9.40%
Transportation Warehousing Supply chain management
84.40%
Fig. 4. Structure of logistics outsourcing (Source: authors).
In addition, a high share of the basic transportation service can be associated with the lack of development of the logistics outsourcing market, the actual characteristics of which do not reach the values of expert forecasts [3, 5]. In 2015, the share of transportation in the structure of the global logistics services market was 54%, which generally indicates a relatively higher level of interaction between organizations in the field of logistics when comparing with the obtained results. However, in comparison with this indicator value of 88% for 2015 in Russia, there is a positive trend in this area [1]. For greater information content, the questions asked on the company’s corporate strategy and indicators for evaluating the efficiency of logistics activities were open. According to the results of the study, it turned out that, as a rule, companies are aimed at profit and increasing the level of customer satisfaction, which, from the point of view of efficiency indicators, is mostly expressed in the assessment of logistics costs, the service level and the duration of logistics cycles. In order to increase the efficiency of their work, increase competitiveness, and sometimes to retain partners and meet their requirements, companies use various technologies and tools. Some have been known for a long time, and some have been actively developing in recent years. The study showed that the following tools are most often used: electronic data interchange, ABC analysis/XYZ analysis, JIT (just in time) and e-procurement (Fig. 5). Indeed, these tools do not require serious financial investments, and, although some of them require time, they significantly streamline the activities of companies and simplify relationships with partners if they are implemented by several or all participants in the supply chain.
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The introduction of the ECR concept is most in demand in business, and naturally more at commercial enterprises (Fig. 6). Using the JIT (just-in-time) approach is more typical for production companies. The concepts of Quick Response (QR) and JIT (especially typical for the automotive industry) preceded the ECR approach, but somehow all three of them are demand-oriented in supply chain management. Interestingly, according to the study, many logistics companies use the JIT approach, apparently implying the fulfillment of the criterion of timely delivery (Fig. 7). This criterion is the most important along with the cost and safety of transportation. EDI (electronic data interchange) 70 6 sigma
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EDM (electronic document management) in Russia is usually understood as an electronic exchange of legally significant documents, that is, documents with a qualified electronic signature. For EDM, there are strict rules on the part of the law. Despite the fact that the regulation level of the use of electronic data interchange (EDI) is much lower, the active implementation of this tool for more effective interaction of supply chain participants is indirectly influenced by the development of the legislative framework in the field of digitalization of the economy as a whole. Recently, the technical base of EDI platforms has expanded, the interface has become more convenient, in addition, companies do not need to install programs on their computers, the Internet access is enough. ABC-analysis/XYZ-analysis greatly facilitates the management of the company’s inventory, and it can be carried out even in Microsoft Excel. As for e-procurement, for many companies, specialized electronic procurement systems (developed by SAP, Ironside Technologies, Commerce One, etc.) are a convenient and relatively inexpensive tool for automating business processes related to procurement, which can be integrated with an ERP system. An additional effect from the automation of procurement activities can be brought by the use of specialized industry electronic platforms, connection to which allows to implement the principle of JIT (just-in-time) delivery of products – to the conveyor or to the time of loading. It should be understood that the popular JIT (just-in-time) approach is not implemented by itself, it requires certain organizational and infrastructural support. The implementation of JIT is supported by such tools as EDI, RFID, VMI and e-procurement, and the demand for the latter two is growing with the increase in the number of suppliers. In addition, many companies in the answers to the question “What causes the greatest difficulties in the logistics and supply chain management processes?” noted the difficulties of working with suppliers, sometimes linking these difficulties with COVID-19. Since it is more difficult to track the effectiveness of their work with the growing number of suppliers, along with the automation of processes, almost 70% of companies, according
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to our research, use supplier rating in order to check their work with a certain frequency and prioritize the best partners.
4 Discussion The value of the logistics contribution to the company’s activities is most often determined through the analysis of total logistics costs and the level of customer satisfaction. At the same time, it should be understood that reducing the costs of individual logistics operations can often lead to an increase in the total volume of logistics costs due to the fact that reducing the costs of one type of operating activity can lead to an increase in the costs of another. That is why it is important to remember about the cost-service balance when making management decisions. To understand the direction of business development, a corporate strategy is first selected (for example, market expansion, cost reduction, etc.), depending on it, it is necessary to formulate a logistics strategy (reduction of logistics costs, etc.). Next, it is necessary to form a comprehensive system of performance evaluation indicators within the chosen logistics strategy, analyze the causes of gaps in indicators, analyze bottlenecks, create a risk profile, etc. and select appropriate tools for improving the efficiency. In practice, an adequate assessment of the impact of logistics on business efficiency in general is often hindered by the lack of a system of reliable indicators and calculation methods. From this point of view, it is advisable to implement a system of balanced indicators for the entire company as a whole. A clear formulation of the tasks will allow to determine the methods for achieving the targets. The presented results can become the basis for further research. So, possible directions can be: – study of barriers to the integration of tools for improving the efficiency of logistics activities into the business processes of Russian companies; – analysis of the relationship between the use of tools and performance indicators in practice (since in this study many companies did not disclose the essence of performance indicators, limiting themselves to specifying “KPIs”, that is, confirming that some indicators are used); – assessment of the structure of logistics outsourcing with more detail and/or in the regional aspect.
5 Conclusion The study of current industry practices and tools for improving the efficiency of logistics activities is an important research area that allows both individual organizations in particular and the market as a whole to develop and improve. As a result of the conducted research, the authors were able to identify 11 most popular tools (methods) for improving the efficiency of logistics activities and key features of its organization practice. The results of the study give an idea of the transfer nature of advanced approaches to the organization of logistics processes, which can also be used by relevant departments in projects of developing the state policy in relation to logistics and the development of the national logistics system. However, today there is a lack of research in this area. Our research has shown that in the areas of production, trade and services, trade organizations have felt more threats over the past 5 years. In addition, it is important to conclude that more than half of logistics companies noted an increase in the impact of
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different intensity from risks. Logistics companies are sensitive to gaps and disruptions in supply chains, which have increased notably over the past year, especially if we take into account that according to our research, the most popular thing outsourced to logistics companies is transportation. Despite the potential limitation of the conducted research depth by the existence of know-how and commercial secrets, for each time period it is possible to form a certain list of relevant industry solutions aimed at improving the efficiency of logistics activities, which can be used for this kind of research in the future. The conducted research has shown that today the most frequently used tools that do not require serious financial investments, but significantly streamline the activities of companies and simplify relationships with partners are: electronic data interchange, ABC analysis/XYZ analysis, JIT (just in time), ECR and e-procurement. According to the answers of companies to open questions, these tools are important elements of management processes aimed at increasing profits and increasing the level of customer satisfaction.
References 1. Azimov, P.K.: The state of the objects of the world transport and logistics infrastructure and transport and logistic services market. Proc. Ural State Univ. Econ. 6(74), 52–63 (2017) 2. Bai, Q., Chen, M., Nikolaidis, Y., Xu, J.: Improving sustainability and social responsibility of a two-tier supply chain investing in emission reduction technology. Appl. Math. Model. 95, 688–714 (2021) 3. BCG: Logistics in Russia: New ways to unlock potential (2014). https://image-src.bcg.com/ Images/Logistics-in-Russia_tcm9-166353.pdf. Accessed 07 Feb 2021 4. Dai, B., Nu, Y., Xie, X., Li, J.: Interactions of traceability and reliability optimization in a competitive supply chain with product recall. Eur. J. Oper. Res. 290(1), 116–131 (2021) 5. Dikinov, A., Honchukaeva, L.V.: Problems of development of logistics outsourcing of the transport sector of the Russian Federation. Bull. Mordovian Univ. 4, 94–102 (2014) 6. Erygin, K.V.: Comprehensive analysis of the supply chain functioning resilience. Logistics 6, 44–48 (2020) 7. Esmaeili-Najafabadi, E., Azad, N., Nezhad, M.S.F.: Risk-averse supplier selection and order allocation in the centralized supply chains under disruption risks. Exp. Syst. Appl. 175, 114691 (2021) 8. Gladkiy, V.R., Shulzhenko, T.G.: Methodological approach to the formation of a system of factors for improving the efficiency of a transport and logistics company. Proc. St. Petersburg State Univ. Econ. 2(122), 92–97 (2020) 9. Khan, R.S.: On the issue of evaluating the effectiveness of the logistics activity of the enterprise. Eng. Bull. Don 38(4–1), 104 (2015) 10. Krivyakin, K.S.: The mechanism for improving the efficiency of the organization of logistics activities of the enterprise. Prod. Organ. 26(4), 77–89 (2018) 11. Mehrjerdi, Y.Z., Shafiee, M.: A resilient and sustainable closed-loop supply chain using multiple sourcing and information sharing strategies. J. Cleaner Prod. 289, 125141 (2021) 12. Pereira, M.M., Frazzon, E.M.: A data-driven approach to adaptive synchronization of demand and supply in omni-channel retail supply chains. Int. J. Inf. Manage. 57, 102165 (2021) 13. Rykalina, O.V., Sharova, I.V.: An entrepreneurial approach to assessing the economic efficiency of regional logistics clusters. Russ. Entrep. 18(3), 347–355 (2017) 14. Skorobogatova, T.N.: On the use of estimated performance indicators of the enterprise in the service sector: logistics aspect. Izvestia Saratov Univ. A New Ser. Econ. Manage. Right 17(1), 56–60 (2017) 15. Tsenina, E.V.: The study of the development of risk management in Russian companies as a tool to strengthen their competitiveness. Econ. Entrep. Law 11(2), 349–362 (2021)
Information Protection in a Commercial Bank M. N. Oreshina(B) and A. V. Badyina State University of Management, Moscow, Russia
Abstract. This work considers types of information systems that are used by commercial banks to carry out their activities, considers the functionality of information systems, information vulnerabilities of banking information systems, which include the misuse of confidential information, the impact on information systems of malicious insiders, information leaks and the use of malicious software. The types of forecasting threats to information security by developing mathematical models using probabilistic methods are considered, threats can be assessed as highly probable, probable and unlikely. The paper analyzes measures to protect the bank’s information, such as encoding information, blocking the transfer of confidential information to third parties, the use of digital signatures and binary fingerprints, the use of modern antivirus programs. Keywords: Antivirus software · Confidential information · Forecasting methods · Hacker attacks · Information protection · Vulnerabilities of information systems
1 Introduction In the digitalization era, the creation of optimal conditions for meeting the information and legal needs of organizations and citizens in the banking sector is possible through the timely integration of legal documents into the information systems of banks. At the same time, the content of banking information systems should take into account the ways to solve the legal relations between the bank’s customers and the organization, contain antivirus programs that can reliably protect data on both deposits and depositors, meet the requirements for the performance of operations. Also, when developing banking systems, blocks-subprograms should be used that are responsible for developing management decisions and information exchange between the bank and controlling organizations. However, at the same time, a number of difficulties can be identified in introducing digitalization into the banking system, especially commercial banks: – the inability of flexible adaptation of banking systems to rapidly changing socioeconomic conditions; – low financial and legal literacy of the population, showing the reluctance of citizens to use modern mobile applications and new information developments offered by banks;
© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 523–528, 2022. https://doi.org/10.1007/978-3-030-94873-3_66
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– the reluctance of citizens, especially the elderly category, to use modern digital devices with a high protection level of information resources; – the complexities of information exchange between different banks. The relevance of protecting the information resources of a commercial bank is determined by the fact that all information related to the bank’s assets, customers, deposits, and transactions is in digital form, while the banking information systems themselves have partial openness due to the requirements for servicing the bank’s customers, which is also carried out through open communication channels of CRM systems, while improving information protection systems leads to the emergence of new technologies of hacker attacks by intruders.
2 Methodology The methodology of scientific cognition is considered as research methods, means of conducting scientific study, methods of modeling both objects and research processes. Methodology is defined as a set of methods aimed at building a scientific theory, solving tasks, and developing a research structure. Scientific research is usually divided into theoretical and experimental parts. The theoretical part includes the definition of research goals and objectives, the analysis of the subject area, the consideration of literary sources. The analysis of literary sources provides prerequisites for the development of theoretical concepts, hypotheses, modeling of the objects under consideration and research processes. In order to verify the truth of the developed theoretical constructions, a full-scale experiment is conducted by comparing the results of theoretical and experimental research. In this case, the discrepancy between the results should not be more than 5%. Based on the synthesis of the results of scientific research, a conclusion is made about the depth and completeness of the study of this topic, about the consideration of all the identified issues in goals and objectives. Based on the conducted research, devices are developed, methods of implementing processes are proposed, computer programs are written. Within the framework of this study, the methods of system analysis were used in the development of structured schemes of information systems in banks, depending on the functional purpose. The organization structure of bank processes is considered, the functional of processes is determined by dividing the processes into separate operations. When considering the theoretical material on information protection, when describing threats to the security of information resources and methods of their prevention, a subject-oriented approach was used. When predicting threats to information security, mathematical methods of probability theory, methods of differential calculus, and regression methods were applied.
3 Results The analysis of literature sources on the introduction of information systems in the banking sector has shown that the use of digital technologies in the banking sector reduces the time for conducting operations, while two important factors such as distance and time
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are losing their importance, transactions and the execution of various requests can be performed without reference to a specific geographical parameter and time. The use of Big Date technologies increases the speed of operations and the number of performed requests. The bank’s interaction with depositors using CRM modules, especially mobile applications, ensures the convenience of performing banking operations and improves the quality of customer service [6–8]. However, banks’ digital assets are often attacked by malicious insiders seeking to hack access to information resources. Under the threats to the security of banking systems, we consider attempts to intercept the password to the personal accounts of customers in the bank’s mobile application, attempts to illegally debit funds from bank cards, the acquisition of confidential information related to personal data of customers, hacking and destruction of banking systems, violation of interaction with bank’s cloud servers. The actions of hacker attacks violate the management modes of banking systems and lead to a violation of the confidentiality of banking information. Countering information threats is aimed at reducing the moral damage caused by illegal access to information or material, which entailed the transfer of funds from the bank’s or depositors’ accounts. At the same time, the amount of damage can be assessed as marginal (leading to the bankruptcy of the bank), significant (because of financial losses), and insignificant (which the organization can compensate depositors independently). When predicting threats to the information security by developing mathematical models with probabilistic methods, threats can be assessed as highly probable, probable and unlikely. Threats to information security can also be classified by the nature of their occurrence. Taking into account this qualified feature, natural disasters and threats of deliberate actions are distinguished [1–7]. The banking information system (BIS) includes information stored in databases of information systems, information technologies, such as ERP systems, CRM systems, analytical applications of consolidated financial statements and a set of technical means that ensure functioning of information technologies within the organization’s local networks. BIS can be represented as a set of specific functional modules on a single hardware and software platform, connected to the system core by common technological tasks. The core of the system is responsible for the integration of all banking tasks, the interaction and functioning of all blocks as part of a single system. The main tasks solved with the information system (IS) should include working with clients related to opening and closing accounts, issuing certificates on current banking transactions, issuing certificates on bank accounts, archiving data and protecting information resources. Functions of the information banking systems include performing settlement and cash operations, conducting electronic document management both within the bank and with external organizations, performing operations to familiarize customers with new banking services and the capabilities of information applications that allow conducting currency transactions, mutual settlements between other banks. As part of the BIS, information technologies are divided into operational, documentary, and object-based on a functional basis. Operational technologies provide an algorithm for performing operations on modules, taking into account their functional relationships. Documentary technologies, in essence, are the organization of electronic document
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management in a company, document processing, conducting accounting transactions, creating templates for banking and accounting documents, creating a document based on an earlier version, etc. Banking information technologies are management IS of the type of analytical applications, including: – BPM systems (business performance management systems), represented by blocks of planning, control, accounting and regulation of the organization’s functions; – CRM systems (systems of interaction with customers), the functions of which are opening and maintaining settlement accounts, conducting settlement operations, servicing bank cards, functioning of applications “Client-bank”, “Internet banking”, “WAP-banking”, performing operations on lending to customers, performing currency operations and operations with securities, etc. The main means of protecting information resources in the bank include: – means of information protection, which include various mechanical, automated, electronic-mechanical, optical devices or a set of devices that can create an obstacle on the way of an attacker to information, for example, turnstiles, complex locking devices for safes and doors; – hardware security tools that ensure the security of information resources in digital form, which include code and password generators, special secrecy bits; – software protection tools which include a variety of antivirus programs and programs for solving information security problems; – mathematical (cryptographic) security methods that serve to create various ciphers as a sequence of certain combinations of signed characters [1, 3, 6, 9]. Physical and hardware means of information protection are used to control and protect the territory of the organization, and by monitoring it with video recording methods and transmitting data to the IS operator, protecting internal premises and equipment, provide limited access to the premises of a certain circle of people to work with confidential information, contribute to the exclusion of electromagnetic radiation interception when working with confidential information [2, 4, 5]. To ensure the information security of a bank, a special information protection unit is being created that reports directly to the head of the bank, whose tasks include forecasting security threats, developing job regulations and instructions, carrying out activities related to familiarizing employees with new anti-virus programs and measures to combat information privacy violators. Seminars are also held at which the bank’s employees are introduced to new security systems, developments in the field of information protection based on the use of electromagnetic pulses, resonant devices, vision systems, etc. Measures to protect the bank’s information resources also include the implementation of measures to prevent information leaks and unauthorized access to it with methods based on the use of electromagnetic radiation and blocking signals. Blocking unauthorized access to information includes protection using technical means against copying, videography, photographing, listening and interception of information. Software tools for information protection
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include both the use of purchased ready-made antivirus software, and the development of new antivirus programs for specific software by the bank’s programmers. The emergence of new hardware based on developments in the field of nanotechnology, the creation of integrated circuits that host the largest possible number of transistors and other microelectronic devices make it possible to create more productive banking systems with a high level of reliability and information security. The use of modern banking systems will improve the level of customer service, quickly respond to their requests, complaints and suggestions, increase the productivity of banking operations, which will reduce the time of customer service. Creating secure software requires increased attention at all levels and stages, secure programming methodologies are used in the development process, test systems and source code analysis are used, which allows you to identify and eliminate all vulnerabilities and errors. Code analysis is an expensive way to detect vulnerabilities, so for the cost and time of code analysis, various analyzers are used that provide static and dynamic analysis of software code vulnerabilities.
4 Discussion Nowadays, there is a huge number of static and dynamic analyzers for diagnosing information systems, from which it is impossible to single out a leader in finding vulnerabilities, undocumented features and errors, since most of them are aimed at solving a specific problem. On the territory of the Russian Federation, the certified AKVS studio code analysis tool is widely used, which has a wide range of searching for various types of vulnerabilities, based on statistical, dynamic and heuristic analysis of vulnerabilities of information system codes. Static analysis includes signature analysis to find particularly vulnerable code constructs. Dynamic analysis allows you to track the work of the program in real time and, when an active vulnerability appears, reports it to the expert. Dynamic analysis uses heuristic methods to track the operation of the program to find undocumented features, as well as to build a function call tree which is an integral part of code analysis and case studies. Using these methods, as well as analyzing the code for vulnerabilities and predicting undocumented code hacking opportunities, significantly simplifies the development of antivirus software.
5 Conclusion The development of information protection methods in the banking sector ensures the safety of deposits and the reliability of banking systems. The analysis of the considered information vulnerabilities of banking information systems, such as the misuse of confidential information, the impact of malicious insiders on the information systems, information leaks showed that it is necessary to develop constantly updated information protection measures which include information encoding, blocking when transferring confidential information to third parties, the use of digital signatures and binary fingerprints when storing and processing documentation, the use of signature analysis elements, use and development of antivirus systems. These measures and methods of information protection ensure the reliable safety of the information resources of a commercial bank.
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References 1. Eremenko, V.T., Fisun, A.P., Makarov, V.F.: Mathematical foundations of information security. OrelGU, RGGU, Orel (2016) 2. Eremenko, V.T., Oreshina, M.N., Penkov, M.G.: Mathematical foundations of information security. State University-UNPK, Orel (2015) 3. Eremenko, V.T., Rytov, M.Yu., Oreshina, M.N., Leksikov, E.V.: Information and analytical activities to ensure computer security. Oryol State University named after I.S. Turgenev, Orel (2016) 4. Kuzichin, O.R., Grecheneva, A.V.: Approach to the choice of modernization directions for the system of geodynamic monitoring in cases of using components intensity uncertainty. Indones. J. Electr. Eng. Comput. Sci. 17(3), 1239–1248 (2019) 5. Kuzichin, O.R., Grecheneva, A.V.: Uncertainty of the implementation time of geodynamic monitoring system in multi-criteria ranking of alternatives Indonesian. J. Electr. Eng. Comput. Sci. 17(3), 1249–1257 (2019) 6. Minaev, V.A., et al.: Computer hardware. OrelGU, RGGU, Orel (2016) 7. Oreshina, M., Badina, A., Belousova, M.: Information technologies in the management of technical processes of agricultural enterprises. In: Popkova, E.G., Sergi, B.S. (eds.) ISC Conference - Volgograd 2020. AISC, vol. 1100, pp. 829–834. Springer, Cham (2020). https://doi. org/10.1007/978-3-030-39319-9_91 8. Oreshina, M.N., Badina, A.V., Dashkov, A.A.: Protection of information resources in industrial enterprises. In: Popkova, E.G., Sergi, B.S. (eds.) ISC 2020. LNNS, vol. 155, pp. 1451–1460. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-59126-7_159 9. Rytov, M., Eremenko, V.T.: A way to ensure the reliability of information portals of regional executive authorities. Int. J. Innov. Technol. Explor. Eng. 8(6), 614–616 (2019) 10. Skodorova, L.K., Lyakhu, A.A., Eremenko, V.T., Rytov, M.Yu., Oreshina, M.N., Korlyuga, B.K.: Methods of information protection in computer networks. Tiraspol: Pridnestrovian University Press, Orel (2016)
Workplace Well-Being in Employee Estimates A. Fedorova1(B) , Z. Dvorakova2 , and H. Atas3 1 Ural Federal University, Yekaterinburg, Russia
[email protected]
2 University of Chemistry and Technology, Prague, Czech Republic
[email protected]
3 Adiyaman University, Adıyaman, Turkey
[email protected]
Abstract. The contribution examines well-being in the workplace from the point of view of the concept of social pollution from the economic activity of companies. The partial results of the long-term monitoring study, annually conducted by the international research team in the countries of Eastern Europe and Asia, obtained through a sociological survey of hired workers in different economy sectors in January–February 2021 are presented. Collecting of empirical data was carried out using a questionnaire that was partially modified from taking into account the new conditions of economic activity arising from the Covid-19 pandemic. The general sample of respondents, numbering 1131 people, was formed by the attracting employees from Russia, the Czech Republic, Turkey and Kazakhstan to the online survey. The analysis of the survey results was carried out using the author’s model of multivariate processing of empirical data, including, among other things, methods of cluster analysis and determinative analysis, two-dimensional projection for qualitative variables. The parameter “personnel category” was used as the base variable for the analysis of individual flows of two-dimensional distributions. The approbation of the model proved its applicability to study the causal relationships between the factors of social pollution of the labour sphere and the employees’ well-being. Keywords: Cross-country study · Comparative analysis · Employee well-being · Employee health · Social pollution factors · Two-dimensional projection
1 Introduction Concern about well-being in the workplace has intensified in the face of the Covid-19 pandemic as the link between employee well-being and business results has become particularly prominent. Experts state that the restrictive lockdown measures and the transfer of personnel to a remote work provoked an increase in diseases such as depression or post-traumatic stress disorder. However, even before the pandemic, it became clear that preventing employees’ well-being problems, such as burnout, stress or illness, was more beneficial for an organization than responding to all these problems after. In particular, the sedentary lifestyle of employees increases the likelihood of diabetes, high blood pressure and other illnesses. Employees in a state of professional burnout are much more © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 529–540, 2022. https://doi.org/10.1007/978-3-030-94873-3_67
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likely to take sick leave. Hence, the well-being of personnel is directly related to their value to employers. Today the categorical apparatus of the workplace well-being phenomenon includes many terms that are widely used by specialists in the field of human resource management: health and well-being of personnel, happiness of workers, loyalty and involvement of employees, job satisfaction. In practice, these terms are often used interchangeably. A review of the literature shows that until now scientists have not come to a consensus on the “well-being” definition. Nevertheless, it can be argued that well-being is habitually viewed in terms of positive emotions and moods (contentment, happiness), the absence of negative emotions (depression, anxiety), and satisfaction with life. Researchers from different fields of science highlight aspects of well-being: physical, economic, social, emotional, psychological well-being, life satisfaction, fascinating activity and work.
2 Literature Review The International Labour Organization (ILO) notes that workplace well-being refers to all aspects of working life, from the quality and safety of the physical environment to how employees relate to their work, the socio-psychological climate in the organization and working conditions [10]. Rahman describes five main groups of sources of employees’ well-being: organizational, individual, collective, systemic and situational [9]. Much research has focused on various factors in the health and well-being of workers. For example, Lee’s work is devoted to the social and emotional resources, providing psychological safety and organizational support for various working groups in an organization [8]. The author argues that emotions such as anxiety, stress, injustice, inferiority, and vulnerability are triggered by perceived injustice and comparison with management decisions (emotion of social upward comparison). On the other hand, emotions of pride, empathy, shared goals, and support are generated by caring, collective interest, and comparison with colleagues and subordinates (the emotion of downward social comparison). Management decisions and leadership style are key factors in ensuring healthy emotions and psychological safety in employees. Management styles such as micromanagement and oversight do not appeal to employees, but autonomy, trust, and empathy resonate with employees. The psychological consequences of individual economic vulnerability, as well as the impact of low individual labour income and perceived financial stress on mental well-being are the subject of research by Klug et al. [7]. According to Huang et al., drawing support from family, as well as the moderating effect of religion is critical to maintaining the employees’ well-being [5]. Hayat and Afshari revealed that perceived organizational support plays a mitigating role in losing cognitive resources by employees at work [4]. A complex of unfavourable factors for employees is considered by Fedorova et al. as a phenomenon of social pollution of the internal organizational environment. As part of a theoretical study, the authors analysed modern concepts of health and well-being in the workplace, proposed a theoretical model and methodological approaches to assessing the health and well-being of employees. The authors show that the economic benefits of work digitalization, the introduction of new forms of labour relations are often associated with deterioration in the quality of working life, as well as a decrease in their welfare and well-being [3].
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At the stage of Industry 4.0, human participation is minimized in the automation of production processes. The preconditions for Industry 5.0 are indicative of a reverse trend: the goal is to achieve a balance where the interaction between machine and human is most beneficial. At the stage of Industry 5.0, standards of high quality of life and products are prioritized. While Industry 4.0 is oriented to mass production, Industry 5.0 focuses on a sustainable and human-centred economy [1]. In accordance with the definition of the European Commission, Industry 5.0 is characterized by going beyond the production of goods and services for profit; employees’ well-being is at the centre of the production process, and new technologies are used to provide jobs, development and prosperity while maintaining environmental sustainability [6]. Thus, in the foreseeable horizon, the attention of professionals to issues of workplace well-being will increase. Since the understanding of well-being is subjective, its level is usually measured using self-assessment [2]. The use of self-assessments is fundamentally different from the use of objective measures (e.g., household income, unemployment rate), it is often used to measure well-being. Numerous studies have examined the relationship between the determinants of individual and national levels of well-being, using different indicators and methods. This study examines workplace well-being in the context of the concept of social pollution from the economic activity of business entities.
3 Methodology The results of a long-term monitoring study presented in the article, annually conducted by the international research team since 2013 in the countries of Eastern Europe and Asia, were obtained by conducting a sociological survey of hired workers in different economy sectors in January–February 2021. The collection of empirical data was carried out using a questionnaire, which has been partially modified to reflect the new economic conditions arising from the Covid-19 pandemic. The general population of respondents was formed by attracting employees from Russia, the Czech Republic, Turkey and Kazakhstan to the online survey and amounted to 1,131 people, of which the majority are those working: at Russian enterprises – 537 people (47.5%), 203 people (17.9%) – in the Czech Republic, 166 people (14.6%) – Turkish and 225 people (20%) – Kazakh workers. Due to the limited resources required for conducting a sociological survey, a spontaneous sample was obtained in each of these countries, implying a survey on the principle of “any available respondent”. The disadvantage of spontaneous sampling is weak representativeness due to the discrepancy between some of the characteristics of the sample population and the characteristics of the general population. Therefore, this study is complemented by methods of qualitative analysis. For example, in 2020, the authors tested the algorithm and procedures for multivariate analysis in order to identify the features and the most significant social pollution factors of labour relations in the countries under study. The general population of respondents in 2021 includes employees, most of whom have an indefinite employment contract (53.3%): 62.7% in Russian, 47.8% in Czech, 42.2% in Turkish and 27% in Kazakh samples. The level of remuneration of the majority of respondents is higher or corresponds to the average salary of the territory of residence (34.5% and 45%, respectively): in Russia – 29.0% and 49.2%, in the Czech Republic – 66.0% and 31%, in Turkey – 31.9% and 46.4% and in Kazakhstan – 19.8% and 46.0%.
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About two thirds of the respondents did not encounter infringements of agreements by employers (61%), while this indicator in Russia was 63%, in the Czech Republic – 64.5%, in Turkey – 53.6% and in Kazakhstan – 50.1%. The salary of the respondents is the only source of income (68.6%): among the Russian respondents – 72.6%, Czech – 56.6%, Turkish – 83.1% and 53.3% – of the surveyed workers in Kazakhstan. The sociological data were processed using the Vortex program. This article presents an analysis of individual flows of two-dimensional distributions, where the category of personnel is used as the base variable: manual workers – 30.4%, trainee – 2.2%, specialists – 44.2%, operating personnel – 9%, middle managers – 9.9% and top-managers – 4.2%. The analysis focuses on the factors of social pollution of labour relations, which have a negative impact on the level of physical and psychosocial well-being of employees.
4 Results To get an idea of the impact of the pandemic on the sustainability of organizations in which the workers involved in the study are employed, as part of the sociological survey, respondents were asked, among other things, to indicate what changes have occurred in the personnel policy of their organizations over the past year (Table 1). Table 1. Responses given to the question: “What changes in the personnel policy of your organization have occurred over the last year?”, January–February 2021, %. Response options Mass reduction in the number of employees
Russian Federation Czech Republic Turkey Kazakhstan Total** 10.71
0.49
8.43
14.57
8.58
Reduction of a part of employees due to the transfer of part of the work to outsourcing
9.40
33.50
4.82
12.58
13.00
Constant reduction of employees every 3–6 months
6.02
17.24
5.42
12.58
8.84
Transfer of employees part beyond the staff
9.02
26.60
3.01
9.93
10.96
37.41
55.67
30.12
28.48
38.55
Transfer of employees part to remote work
(continued)
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Table 1. (continued) Response options Use of temporary and/or seasonal workers provided by other companies
Russian Federation Czech Republic Turkey Kazakhstan Total** 6.39
43.84
3.01
10.60
13.17
Hiring new employees for a short period
17.29
1.97
5.42
13.25
11.32
No changes/Another
35.15
11.82
54.82
39.08
35.89
131.39
191.13
115.06
141.06
140.32
Total*
* Since each interviewee could have given several answers at the same time, the total value exceeds 100%. ** Based on the aggregate sample of respondents from the surveyed countries. Source: authors.
It becomes obvious that the main change in the personnel policy of organizations is in the field of transferring personnel to remote work. At the same time, the largest share of answers here falls on the aggregate of Czech respondents (55.7%), who also point to the hiring of temporary and/or seasonal workers (43.8%) and staff reduction due to outsourcing of part of the work (33.5%). Approximately every fifth Russian respondent notes the hiring of new employees on a short-term employment contract (17.3%). Personnel reductions for various reasons are most often evidenced by survey participants in Kazakhstan. At the same time, about half of the respondents in Turkey and a third of those surveyed in Russia and Kazakhstan claims that there have been no changes. It should be emphasized that the changes affected most of the respondents in the Czech Republic, where the staff was mainly taken to remote work, as well as in Kazakhstan, where staff reductions were most often observed. The turbulence of the external and internal environment of the organization in the first year of the pandemic leads to a decrease in the level of well-being of employees. In order to identify the significance of unfavourable factors for employees, the respondents were asked to indicate what they see as threats to their professional future (Table 2). Table 2. Responses given to the question: “What threats to your future exist at your current job?”, January–February 2021,%. Response options Job loss due to economic crisis Job loss due to digitalization/automation/robotization
Russian Czech Turkey Kazakhstan Total** Federation Republic 12.59
31.03
23.49
27.15
20.16
5.83
26.60
12.05
10.60
10.88 (continued)
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A. Fedorova et al. Table 2. (continued)
Response options
Russian Czech Turkey Kazakhstan Total** Federation Republic
Job loss due to high competition among colleagues
6.95
17.24
7.23
7.28
8.84
Deterioration of working conditions due to the transition to a remote work
5.83
11.82
23.49
17.22
12.11
Deterioration of working conditions due to changes in the labour relations form with the employer
4.51
21.18
10.84
9.93
9.11
Decrease in the amount of monetary remuneration
18.98
44.83
13.25
12.58
21.93
Loss of psychological balance due to uncertainty about the future
13.53
51.23
24.10
16.56
23.87
Deterioration of physical health in the workplace
19.55
19.21
13.25
13.91
18.48
Reducing the job satisfaction
26.13
4.93
17.47
13.25
19.81
25.3
31.79
33.96
170.48 160.26
179.13
No threats/Another Total*
40.22
26.60
154.14
254.68
* Since each interviewee could have given several answers at the same time, the total value exceeds 100%. ** Based on the aggregate sample of respondents from the surveyed countries. Source: authors.
A comparative analysis of the answers of respondents from different countries shows both similarities and differences in assessments. Russian respondents are less afraid of losing their jobs, but one in four of the surveyed workers fear a decrease in the level of satisfaction with their work, and one in five fears deterioration in physical health at work and the amount of monetary remuneration. More than half of Czech respondents are worried about the loss of psychological balance due to lack of confidence in the future, and slightly less than half are worried about a decrease in the level of their wages. A distinctive feature of the Czech respondents is the presence of a pronounced fear of losing their jobs due to the economic crisis, digitalization and increased competition in the domestic labour market. Every fifth employee surveyed fears deterioration in working conditions due to a change in the form of labour relations with the employer. Among the threats to the future at work, Turkish respondents most often note the loss of psychological balance, loss of job due to the crisis and a decrease in the level of job satisfaction. The main difference between the interviewed workers of Turkish organizations is the fact that almost every fourth is worried about the deterioration of working conditions at remote work. The same problem, but a little less often, is indicated by the respondents of Kazakhstan, who are most afraid of losing their jobs due to the economic crisis. It should be noted that, in general, for the total sample of respondents, the interviewed workers are least of all concerned about the labour digitalization, increased competition among
Workplace Well-Being in Employee Estimates
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colleagues, the quality of remote work and the change in the form of labour relations with the employer. To assess the manifestation frequency of a certain factor of decrease in workplace well-being, a number of questions in the questionnaire contain a scale “never – rarely – often – constantly”. For the purposes of our analysis, estimates within the “often – constantly” range are critical, as long-term exposure to negative factors can negatively affect the employees well-being. In this case, a two-dimensional projection of answer options is of particular interest, where the basis variable is the personnel category (Table 3). Table 3. The two-dimensional projection of responses given to the question: “What is the source of your anxiety and negative emotions at your current job?”, January–February 2021,% (base variable: personnel category) Response options
Manual workers
Specialists
Operating personnel
Managers
Total*
The absence or lack of employer cares about employees Often
17,67
12.97
13.73
3.77
13.35
Constantly
4,14
3.59
4.90
3.14
3.91
Negative (destructive) character traits of a leader Often
12.03
7.20
5.88
7.55
9.18
Constantly
3.38
2.20
0.98
2.52
2.50
Professional incompetence of a manager Often
12.83
7.60
2.94
8.23
9.82
Constantly
3.02
1.60
0.98
2.53
2.32
Lack or poor interaction with the manager Often
13.58
5.60
4.90
5.66
8.83
Constantly
2.26
2.00
1.96
1.89
2.14
High level of stress in the workplace Often
24.06
17.76
9.80
13.84
18.59
Constantly
4.51
5.59
1.96
5.66
5.52
Unstable, often changing labour collective Often
15.15
5.21
3.92
5.66
8.23
Constantly
2.65
1.80
1.96
1.89
2.24
Excessive competition between employees Often
14.77
6.00
4.90
8.81
9.29
Constantly
1.52
0.80
0.00
0.63
0.98
Uncomfortable working conditions Often
13.21
8.58
0.00
9.43
9.92
Constantly
4.53
2.40
0.00
1.89
2.95 (continued)
536
A. Fedorova et al. Table 3. (continued)
Response options
Manual workers
Specialists
Operating personnel
Managers
Total*
Psychological pressure from the head Often
12.12
8.60
4.90
11.32
10.28
Constantly
2.65
2.20
0.98
2.52
2.77
Difficulty reconciling work and personal life Often
18.49
17.23
5.88
11.32
16.44
Constantly
5.66
4.01
1.96
7.55
4.92
Excessive work tension Often
23.31
21.20
5.88
20.75
20.48
Constantly
6.02
7.60
0.98
8.18
6.77
The need to be constantly in touch with the head/colleagues Often
13.21
16.03
9.80
19.50
16.09
Constantly
3.77
6.81
3.92
9.43
6.61
The absence of a personal workplace in the office Often
12.12
11.02
8.82
12.74
11.94
Constantly
4.92
4.41
2.94
1.91
3.86
The need to work remotely Often
6.79
17.64
25.49
20.13
16.00
Constantly
3.77
6.81
4.90
1.89
5.45
* Based on the aggregate sample of respondents from the surveyed countries. Source: authors.
A comparative analysis of the survey results shows the difference in the assessments of different categories of the interviewed employees. Obviously, the first place in the rating of sources of negative emotions belongs to excessive work intensity (27.2%) for all personnel categories, with the exception of representatives of operating personnel. Every fourth respondent (24.1%) suffers from a high level of stress at work, but manual workers and specialists point to this problem more often than managers (28.6%, 23.3% and 19.5%, respectively). A fifth part of the respondents (21.4%) complain about the difficulty in work-life balance, and manual workers and specialists are more likely than managers. Another ratio of answers is observed regarding the need to be constantly in touch with the manager and colleagues: this factor is more often noted by managers (28.9%) than by specialists (22.8%) and manual workers (17%). Also, the interviewed executives are more often frustrated by the need to work remotely (21.4%) in comparison with specialists (24.45%) and manual workers (10.6%), with the exception of operating personnel, whose representatives chose this answer most often (30.4%). It should also be noted that the absence or lack of the employer care for employees makes manual workers (11.8%), specialists (16.6%) and operating personnel (18.6%) much more worried than managers (6.9%). Thus, it can be argued that for manual workers and specialists, the
Workplace Well-Being in Employee Estimates
537
most significant factors that have a negative impact on well-being at work are high levels of tension and stress, difficulty in maintaining a work-life balance and lack of employer care. In addition, experts often note factors such as the need to work remotely and be constantly in touch. Remote work and a lack of employer care most often cause negative emotions among operating personnel. The interviewed managers most often suffer from high work stress, the need to work remotely in constant access mode to resolve work issues. The results of respondents’ self-assessment of the causal relationship between certain factors and changes in their physical and psychological health at the workplace are presented in Table 4. Table 4. The two-dimensional projection of responses given to the question: “How your work affects your physical and psychological health?”, Jan.–Feb. 2021,% (base variable: personnel category) Response options
Manual workers
Specialists
Operating personnel
Managers
Total*
My health is deteriorating due to stress in the workplace Often
13.53
17.00
8.82
11.32
15.12
Constantly
6.39
5.00
1.96
4.40
4.80
My health deteriorates due to high work intensity Often
18.87
15.74
6.86
15.72
16.01
Constantly
5.28
4.58
1.96
2.52
4.18
My health always gets worse in the workplace Often
8.30
7.00
3.92
4.40
7.05
Constantly
3.02
1.40
0.00
1.26
1.78
I suffer from sleep disturbance/insomnia due to problems at work Often
15.41
9.80
5.88
11.95
12.01
Constantly
6.02
3.60
0.98
3.77
4.00
Problems at work are the cause of my overeating/obesity Often
7.92
8.80
5.88
6.92
8.39
Constantly
6.04
2.80
0.00
4.40
3.57
Problems at work led to weight loss Often
9.06
4.21
0.00
0.00
4.91
Constantly
2.26
0.60
2.94
3.77
1.70
I suffer from headaches due to problems at work Often
11.32
10.40
6.93
11.32
10.97
Constantly
5.66
3.60
0.00
1.26
3.75
At the workplace, I feel tired and fatigued Often
14.72
10.18
5.88
13.84
12.28
Constantly
4.53
4.79
0.98
2.52
4.18 (continued)
538
A. Fedorova et al. Table 4. (continued)
Response options
Manual workers
Specialists
Operating personnel
Managers
Total*
My job is the cause of my depression Often
10.19
5.20
1.96
6.92
6.78
Constantly
4.53
4.00
0.98
2.52
3.57
I think I’m in a state of professional burnout Often
11.94
10.00
6.93
9.43
11.04
Constantly
5.60
3.40
0.00
2.52
3.65
My job causes back problems Often
21.97
15.43
5.88
17.61
16.71
Constantly
8.71
5.61
7.84
3.14
6.17
I have to go to work even if I feel sick Often
19.39
11.65
6.86
16.98
14.78
Constantly
7.60
4.62
4.90
3.77
5.38
* Based on the aggregate sample of respondents from the surveyed countries. Source: authors.
One fifth of the general population of respondents points to the fact that work is the cause of back problems (22.9%), and among manual workers the frequency of this answer is 30.7%, and among specialists and managers – 21.0% and 20.8% respectively. Particularly noteworthy is the indicator of presenteeism – a phenomenon associated with the presence of staff at the workplace in a state of poor health and low productivity. Every fifth respondent (20.2%) admits that he goes to work sick: more often workers (27%) and managers (20.7%) indicate this, less often – specialists (16.3%) and operating personnel (11.8%). 16.5% of respondents in the surveyed countries feel exhaustion and fatigue, while manual workers (19.25%) and managers (16.4%) suffer more often compared to specialists (15%) and operating personnel (6.9%). There is also a professional burnout, as reported by 14.7% of respondents. The problem is equally relevant for all personnel categories, with the exception of operating personnel. In general, a comparative analysis of the results of a two-dimensional projection showed no noticeable differences in the assessments of manual workers, specialists and managers, in addition to the fact that specialists more often than others suffer from high levels of stress.
5 Conclusion The authors used the procedure “Description of the group – distinctive features”, describing the peculiarities of labour relations within a particular country. As a result, it was established that the group of Russian respondents differs from the interviewed employees in other studied countries in the following characteristics: more often they have
Workplace Well-Being in Employee Estimates
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an indefinite employment contract and, less often, an employment agreement for parttime work; more often they complain about the restructuring of the department or the enterprise as a whole, excessive work intensity, irregular working hours, deterioration of physical health at work, and less often – about the absence or lack of employer care for employees; in personnel policy, they are more often faced with a constant layoff of personnel every 3–6 months and less often with the hiring of new employees only for a short period (from 1 to 6 months) or the use of temporary and/or seasonal workers provided by other companies. Compared to other surveyed countries, the group of interviewed Turkish employees: more often worried about the possible loss of a job due to the crisis, complain about the absence or lack of employer care for personnel and less often talk about excessive work tension and the difficulty of combining work and personal life; less likely to face temporary and/or seasonal workers provided by other companies. The group of Czech respondents differs from the interviewed workers of other studied countries in the following characteristics: they more often have a fixed-term employment contract for 1–4 years and less often they are formalized with an employment contract with an employer who is an individual entrepreneur; more often they complain about uncomfortable conditions at the workplace, the absence or lack of employer care for employees, professional incompetence of managers, and less often – about the deterioration of physical health at work, fatigue and loss of energy in the workplace; more often they face such changes in the personnel policy of their organization as the use of temporary and/or seasonal workers provided by other companies, the reduction of part of the employees due to the transfer of the work part to outsourcing. In comparison to the respondents from other surveyed countries, the interviewed Kazakh employees: more often work on the basis of an oral agreement with the employer or have an employment contract for work with an employer – an individual entrepreneur, but less often – have an indefinite employment agreement; more often they receive cash wages, complain about the forced reduction in hours of work, lack of professional development, the difficulty of combining work and personal life, employment of new employees only for a short period, and less often – about the absence or lack of employer care for employees, loss of a job due to economic crisis, uncomfortable working conditions and restructuring of a department or enterprise as a whole. The results obtained indicate that the author’s model of multidimensional processing of empirical data, including methods of cluster analysis and determinative analysis, two-dimensional projection for qualitative variables, is applicable to study the causal relationships between factors of social pollution of the labour sphere and the workplace well-being. Acknowledgements. This work was supported by Russian Foundation for Basic Research (RFBR) under Grant № 19-010-00705 ‘Development of tools for assessing the impact of social pollution of labour relations on the employees’ wellbeing in a digital economy’.
References 1. Demir, K.A., Ciciba¸s, H.: The next industrial revolution: Industry 5.0 and discussions on Industry 4.0. In: Gülseçen, S., Reis, Z.A., Gezer, M., Erol, Ç. (eds.) Industry 4.0 from the MIS PerspectivePeter Lang GmbH. Internationaler Verlag der Wissenschaften, Bern (2019)
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2. Eid, M., Larsen, R.J. (eds.): The Science of Subjective Well-Being. Guildford Press, New York (2008) 3. Fedorova, A., Dvorakova, Z., Kacane, I., Khan, H., Badambaeva, V.: Factors in health and well-being in the workplace: a comparative analysis of employee survey results. In Soliman, K.S. (ed.) Proceedings of the 34th IBIMA Conference, 13–14 November 2019, Madrid, Spain. VISION 2025: Education Excellence and Management of Innovations through Sustainable Economic Competitive Advantage, pp. 3429–3439. International Business Information Management Association, IBIMA, Granada (2019) 4. Hayat, A., Afshari, L.: Supportive organizational climate: a moderated mediation model of workplace bullying and employee well-being. Pers. Rev. 50, 1685–1704 (2020). https://doi. org/10.1108/PR-06-2020-0407 5. Huang, I.-C., Du, P.-L., Lin, L.-S., Lin, T.-F., Kuo, S.C.: Factors beyond workplace matter: the effect of family support and religious attendance on sustaining well-being of high-technology employees. Healthcare 9(5), 602 (2021) 6. Industry 5.0. European Commission. https://ec.europa.eu/info/research-and-innovation/res earch-area/industrial-research-and-innovation/industry-50_en. Accessed 21 May 2021 7. Klug, K., Selenko, E., Gerlitz, J.-Y.: Working, but not for a living: a longitudinal study on the psychological consequences of economic vulnerability among German employees. Eur. J. Work Organ. Psychol. 30(6), 790–807 (2021). https://doi.org/10.1080/1359432X.2020.184 3533 8. Lee, H.: Changes in workplace practices during the COVID-19 pandemic: the roles of emotion, psychological safety and organisation support. J. Organ. Effectiveness 8(1), 97–128 (2021) 9. Rahman, A.: Sources and categories of well-being: a systematic review and research agenda. J. Serv. Theor. Pract. 31(1), 1–33 (2021) 10. Workplace wellbeing. ILO. https://www.ilo.org/safework/areasofwork/workplace-health-pro motion-and-well-being/WCMS_118396/lang--en/index.htm
Modernization of the Tax Sphere in the Digital Economy O. L. Mikhaleva(B) Samara State University of Economics, Samara, Russia
Abstract. In the conditions of the digital economy, large-scale changes are taking place in all spheres of activity. The tax sphere is no exception. A few years ago, the active digitalization of tax authorities began. The study examines the prerequisites that provide the basis for further change in the tax system and the consequences for the economy are presented. The introduction of digital technologies can bring economic and social benefits for the state and society. Under the influence of digitalization, new formats of interaction between subjects of economic relations are being introduced. The current state of digitalization of tax authorities is analyzed. The central issue is the digitalization of tax control processes and the need for its development. An information system for digitalization of tax administration is being actively created. Combining all information sources into a single information system makes it possible to analyze large amounts of data based on modern digital technologies. Recently, modern digital technologies have been consistently introduced into the practice of tax administration. Special attention is paid to possible risks in the digitization of the tax sphere. Keywords: Digital economy · Digital technologies · Tax administration · Tax risks
1 Introduction Lately, there have been significant changes in society under the influence of digital transformation. The digitalization of the economy poses new challenges for the state. The introduction of digital technologies imposes new requirements for the development and implementation of national strategies aimed at achieving established results and solving a number of problems. The priority direction in the activities of tax authorities is the modernization of tax administration in connection with the introduction of new technologies. The ongoing processes allow the tax authorities to switch to the contactless principle of servicing taxpayers, to apply innovative tax control tools. This improves the processes of interaction in the tax administration system, which contributes to improving the efficiency of the activities of tax authorities and ensures a high quality of taxpayers service. Thus, the study of the process of modernization of tax administration in the digital economy is relevant.
© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 541–546, 2022. https://doi.org/10.1007/978-3-030-94873-3_68
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2 Methodology In the course of the research, certain types of economic methods were used. The material is based on the assessment of foreign experience in the development of the digital economy. The data concerning the development of the tax sphere in the digital economy are considered. For this purpose, the following methods were used: observation and fact gathering. The impact of digitalization on tax administration is presented using methods such as analysis and synthesis. The spreadsheets present the information collected and systematized by the graphical method. Using the method of comparative analysis of statistical information, the effectiveness of tax audits in the Russian Federation is considered.
3 Literature Review The development of the digital economy is one of the priorities of most of the leading countries of the world. In the OECD countries, the digital economy accounts for about 6% of GDP due to a significant competitive advantage in digital services and digital economy growth platforms [2]. In most developed countries, the size of the digital sector averaged 6–9% of GDP (for example, France - 5.7%, Germany - 6.3%, the United States - 7.4%, Sweden - 8.6%) [7]. In the Russian economy, the contribution of the digital sector by the end of 2020 amounted to 3.1% of GDP (in 2019 - 2.9%). By 2025 Russia’s GDP may increase by 4.1–8.9 trillion rubles due to further digitalization of the economy [11]. It is quite difficult to measure the scale of the digital economy due to difficulties in determining its boundaries, the availability of sufficient reliable data, emerging pricing problems and the “invisibility” of digital economic activity [1]. The digital economy should be considered not just digitalization, and different authors have their own approach to this concept. Thus, the digital economy, according to Kosolapova and Svobodin, is a model reflection of economic relations in production, distribution, exchange and consumption based on information and communication technologies [9]. Turko considers the digital economy from two sides: in a narrow sense - as a type of commercial activity in the electronic space, and in a broad sense – as a transformation of the entire society against the background of the use of information and communication technologies [13]. There are authors who represent the digital economy as a share of the total economic output in all sectors obtained from the consumption of digital resources, such as digital skills and equipment (hardware, software and communication equipment), as well as, respectively, digital goods and services that are used in the production of added value [8]. The digital economy, as “an economic activity in which the key factor of production is digital data, the processing of large volumes and the use of the results of analysis of which, in comparison with traditional forms of management, can significantly increase the efficiency of various types of production, technologies, equipment, storage, sale, delivery of goods and services” is defined in the Strategy for the development of the information society in the Russian Federation for 2017–2030 [3]. Various approaches to its definition allow to consider the digital economy as a system of economic, social and cultural relations, which is based on the use of digital technologies.
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Based on this, there is a need for periodic updating of the policy related to technologies. Policy development should be carried out in such ways as to keep up with innovations based on information and communication technologies and at the same time provide for the creation of economic opportunities for those industries that plan to use these breakthrough technologies [10]. The Internet environment, doing business through a remote format of work causes a certain financial and administrative benefit due to the lack of rental spaces, remuneration for the company’s staff (it can be not many people), but at the same time, transparency of operations is increased and control over the quality of the functions assigned to employees is facilitated [12]. The impact of the digital economy on the tax sphere can be characterized by such factors as: – digital public services are provided by tax authorities; – the automated tax control system is actively used and is constantly being improved; – with the development of digital technologies, new tax administration tools are emerging. The digital transformation of the economy poses new challenges for the tax authorities, which in response strive not only to respond to such challenges, but also to adapt to the digital environment.
4 Results The digital economy is causing global changes in the field of taxation. The active introduction of automation of the tax sphere is aimed at solving a complex of interrelated tasks that are associated with the collection, storage and distribution of a large array of various information. The tax authorities use this data when carrying out their activities. The development of information technologies is changing the needs of taxpayers in obtaining services in a fast, affordable and high-quality way. Tax authorities have to process large amounts of data and maintain contact with taxpayers not only for the purpose of control measures, but also for the provision of services. The accumulation of big data by tax authorities allows them to integrate two main areas of their work on the basis of a digital platform: control and service. As a result, taxpayers get the opportunity to use a wide range of services in electronic form. At the moment, the activity of the Federal Tax Service from the point of view of the introduction of digital technologies is one of the most developed among public authorities. On the official website of the Federal Tax Service, various electronic services are available to taxpayers. Successfully functioning electronic services allow receiving the necessary information in electronic form or transferring it, as well as fill out various documents. As an example, we can cite the following services: the taxpayer’s personal account, business risks, checks control, reporting in electronic form and other information. It should be noted that in the process of improving the provision of public services to taxpayers, there are changes in the tools of tax control. To conduct tax audits, the
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automated information system “Tax” is constantly being modernized, and with the help of another VAT refund control system, it is possible to automatically monitor the entire value-added chain. Not only the analysis of the submitted tax returns is carried out, but also illegal VAT deductions and the amounts of tax receivable, as well as tax risks of taxpayers are determined. The introduction of new forms of control changes the format of information interaction between participants in tax relations. The development of the tax monitoring system as one of the forms of tax control allows to check in advance the correctness and timeliness of funds that are to be transferred to the budget. A special feature of tax monitoring in Russia is the possibility of switching to online interaction with taxpayers. As a result, a better level of implementation of tax control is provided, which is aimed at establishing new relations between taxpayers and tax authorities. With the introduction of digital tax control tools, the quality of tax administration is improving. An active role in this is played by the use of CRE (cash register equipment) with the transmission of information online. Online cash registers are used by entrepreneurs who conduct cash transactions in such areas as trade, services and catering. The devices allow to transmit data on completed transactions to the tax authorities in real time. Thus, tax authorities receive the data online. The system excludes manual data processing and provides an automatic assessment of possible risks. The developed project for the self-employed - the mobile application “My Tax”, allowed declaring 20 billion rubles of income and more than 20 million checks in 2019 [4]. The applied system of calculating the tax on professional income, in which the calculation of the tax amount, the sending of tax notifications and the control of payment is carried out without the participation of a person. During the COVID-19 pandemic, the Federal Tax Service launched a blockchain platform that helps to provide preferential loans to representatives of small and medium-sized businesses. With the help of distributed registry technology, banks can now automatically check whether a borrower meets the conditions for granting preferential loans for salary payments: assess the size of the business, the availability and number of employees, belonging to the affected sectors of the economy and other factors. Using the platform, you can monitor representatives of small and medium-sized businesses who received a loan and analyze different areas of their activities. In the near future, an experiment will be conducted aimed at tracking goods and services on the territory of the Russian Federation. For a number of goods that are imported into the territory of the Russian Federation according to the established list, their traceability is introduced. For the product tracking system, a distinctive feature will be the document flow of invoices exclusively in electronic form. We plan to fully digitize all operations with goods and services. It will be possible to control financial relations between individuals by requesting information on accounts from banks. The monitoring of these relations will be solely for the purpose of identifying illegal business activities. The results of the work carried out should be a further increase in payments to budgets of all levels, the whitewashing of the relevant sectors of the economy. The purpose of the Federal Tax Service is to ensure almost automatic fulfillment of all tax obligations. This will be possible by using a digital platform that works online
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and processes different data sources. For this purpose, the improvement of information technologies of tax administration will continue. It is planned to completely transfer taxpayers to mandatory electronic document flow, so that the exchange of documents with counterparties, internal documents are presented in electronic format. As a result, the amount of time and money for exchanging, storing and searching of documents will be reduced. With the help of the introduction of modern digital technologies, various schemes are identified by which taxpayers evade paying taxes, tax flows of taxpayers are tracked, their tax burden is monitored, etc. Despite the active development of the digital economy, there are certain problems in creating a digital tax administration. Digitalization affects such fundamentally new issues related to the protection of privacy, cybersecurity, the market power of digital platforms, access to data, the reliability of information, ethics in the use of new technologies, and at the same time it is necessary to ensure that people and companies can develop their work simultaneously with this transformation [5]. Solving these problems will allow the tax administration system to rise to a completely new level of development.
5 Conclusion The launched national project “Digital Economy” should simplify many processes in the life of society and the state, as well as contribute to the transition to a new stage of development of the country’s economy. The digitalization of the economy should be considered not as a technology, but as a new format of interaction between the state and taxpayers, through information technologies. Tax authorities acting as an element of control in the economic sphere should correspond to the level of such relations. The creation of modern effective models for managing technological processes and large amounts of data can be considered as the main condition for the successful development of the digital economy [6]. Digitalization in the tax sphere will facilitate the electronic coordination and comparison of data, through the transmission in electronic format for the purpose of monitoring and subsequent assessment by the tax authorities of data on the obligations of the taxpayer. The transition of tax authorities to a digital format of work will allow to withdraw taxpayers from the shadow environment. This will lead to an increase in the level of tax collection rate and the budget replenishment. The state will be able to allocate more funds for the development of the economy and the creation of new digital technologies.
References 1. Bukht, R., Heeks, R.: Defining, conceptualising and measuring the digital economy. Int. Organ. Res. J. 13, 143–172 (2018) 2. Burden, A.: Accenture named a leader in digital process automation by independent research firm. Accenture (NYSE: ACN), New York (2018) 3. Decree of the President of the Russian Federation No. 203 dated 09.05.2017 “On the Strategy for the Development of the Information Society in the Russian Federation for 2017– 2030 (2017). http://publication.pravo.gov.ru/Document/View/0001201705100002. Accessed 13 Aug 2021
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4. Federal Tax Service: The future of tax administration – Contactless technologies (2019). https://www.nalog.ru/rn77/news/activities_fts/9034201/. Accessed 13 Aug 2021 5. Government of the Netherlands: Dutch digitalisation strategy (2018). http://www.government. nl/documents/reports/2018/06/01/dutch-digitalisation-strategy. Accessed 13 Aug 2021 6. Gretchenko, A.A.: The essence of the digital economy, the genesis of the concept “digital economy” and the preconditions for its formation in Russia. Sci. Pract. Plekhanov Russ. Univ. Econ. 10(3), 23–37 (2018) 7. HSE: Indicators of the Digital economy: 2018. International comparisons (2018). https:// www.hse.ru/data/2017/08/03/1173503112/IIO%202017.%2014.%20Mezhdunarodnye%20s opostavlenija.pdf. Accessed 03 Jul 2021 8. Knicrehm, M., Berthon, B., Daugherty, P.: Digital disruption: the growth multiplier (2016). https://www.anupartha.com/resources/reports/digital-disruption-the-growthmultiplier/. Accessed 30 Jul 2021 9. Kosolapova, M.V., Svobodin, V.A.: Methodological issues of the system-digital economy – the interaction between the system and the digital economy. Soft Meas. Comput. 6, 13–16 (2019) 10. Leschenko, Y.: Innovative vector in the system of economic security of Russia. Russ. J. Innov. Econ. 9(2), 306 (2019) 11. Li, I.: The digital economy will increase Russia’s GDP by 8.9 trillion rubles by 2025 (2017). https://www.rbc.ru/technology_and_media/05/07/2017/595cbefa9a7947374f f375d4. Accessed 03 Jul 2021 12. Sannikova, T.D., Bogmolova, A.V., Zhigalova, V.N.: Foreign models of digital transformation and prospects of their use in the Russian practice. J. Int. Econ. Aff. 9(2), 481–494 (2019) 13. Turko, L.V.: The essence of the phenomenon of digital economy, overview definition of digital economy. Russ. Econ. Online J. 2, 88 (2019)
Choosing a Hybrid Work Model and New Challenges V. G. Konovalova1(B) , B. V. Petrenko1 , and R. V. Aghgashyan2 1 State University of Management, Moscow, Russian Federation 2 National Polytechnic University of Armenia, Yerevan, Armenia
Abstract. The contribution examines the accumulated experience of remote work in order to identify development prospects for hybrid work models in various activity fields, opportunities and risks arising in this regard. The Covid-19 pandemic has shown that although modern IT infrastructure, including in Russia, is often able to provide remote work, however, assessments of its advantages and problems, the impact on labor efficiency and employee motivation are ambiguous. The problems of switching to a hybrid model can be caused by both the risk of ensuring information security, and insufficient preparation of employees for self-organization, building a work and rest schedule and maintaining the effectiveness of communications and work, cramped conditions and distractions when working from home. As potential risks of hybrid work, the authors identified problems of socialization and increased emotional burnout, an increase in the gap between members of the hybrid team working in different formats (from the office/remotely), the threat of an increase in the gender gap. Recommendations on the organization of work and maintenance of virtual cooperation when implementing a hybrid model are proposed and justified. Keywords: Burnout · Corporate culture · Hybrid work model · Productivity · Remote work · Workplace democratization
1 Introduction The workplace has been slowly changing over the past decades, but the COVID-19 pandemic has accelerated the transition to the next phase – a hybrid model of work and workspace, involving an increase in the proportion of employees working fully or partially remotely. The trend of transferring personnel to remote work has been clearly manifested in recent years: even before the outbreak of the pandemic, it was predicted that by 2025, 70% of the workforce around the world will work remotely for at least five days a month [9, 11]. Currently, a small part of the labor force in developed economies (from 5 to 7%) regularly works at home. 71% of remote jobs are provided by companies based in English-speaking countries, but even in the most closed regions of the world (for example, Asia and South America account for only 1% of remote jobs), about 9% of the total number of companies do not allow employees to use a remote format. The © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 547–554, 2022. https://doi.org/10.1007/978-3-030-94873-3_69
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number of remote jobs increases annually by 30%, and if a few years ago most of them were related to IT, now employers see the possibility of transferring representatives of an increasing number of professions to remote work. The expansion of the use of the hybrid work model, in turn, implies a more complex organization of work, requires changes in the corporate culture, engagement management tools, workflows and workspace.
2 Methodology The purpose of the study is to analyze the accumulated experience of remote and hybrid work models (when some employees work in the office, and others work remotely, including from home) in various fields of activity. The currently available data allow us to identify the main advantages of remote work for both employers and employees [13, 14]. Among the advantages that employers receive are flexibility in the use of human resources, expanding access to new talent pools, democratizing workplaces, saving on expensive office maintenance costs. For employees, including people with disabilities, remote/hybrid work opens up prospects for working where and when they are most productive, demonstrating their strengths and increasing productivity. At the same time, remote/hybrid work is associated with noteworthy problems and risks. In this regard, the paper summarizes the materials of a number of global and national studies on the problem of remote and hybrid work. During the research, both qualitative and quantitative methods were used to collect data - surveys, interviews, focus groups, telemetry data. During the analysis, the main problems of remote/hybrid work were identified: the relationship of employees and employers to remote work, employee productivity, cooperation and interaction, well-being, mental health and emotional burnout, information security, engagement and corporate culture. Special attention is paid to the problems of remote/hybrid work in Russia, where during the COVID-19 pandemic a significant part of the staff began working in this format for the first time. The analysis of empirical data allows us to identify the main factors that reduce the effectiveness of remote work, as well as to justify recommendations for preventing and overcoming problems and their consequences, to determine the prospects for the development of a hybrid model.
3 Results According to surveys of managers and employees of various fields of activity conducted by PWC in the USA [10], there has been a noticeable shift in attitude to remote work over the past six months: at the time, 83% of managers assess the transition to remote work as successful, only one from five managers would like to return to the traditional format of work, 13% of managers are ready to completely switch to remote work, and the rest expect to expand its scale. At the same time, the opinions of managers and employees differ in assessing the optimal ratio of working time at home and in the office. More than half (55%) of employees would prefer to work remotely three days a week, and according to 68% of managers, employees should spend at least three days in the office - a longer absence will negatively affect the state of corporate culture and engagement.
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87% of employees also note that staying in the office is important for cooperation with team members and building relationships. According to a survey of managers provided by Gartner [4], 82% of respondents intend to allow remote work as employees return to the workplace, almost half (47%) said they are ready to allow employees to work remotely full-time, 43% are ready to provide flexible days, and 42% - flexible hours. Companies such as Deutsche Bank, Infosys, Nationwide Insurance, Nielsen, Siemens, Starbucks, Twitter and many others are striving to switch to a hybrid format of work. According to a study conducted by Capgemini [1], remote work is becoming the new norm: 75% of companies expect that at least 30% of employees will work remotely, and more than 30% expect that at least 70% can switch to remote work, noting increased productivity and cost savings (up to 24%). The attitude of employees to the prospects of switching to a hybrid work model is determined by a number of factors. According to PwC, respondents with less than 5 years of professional experience (aged 18 to 24 years) are most likely to want to visit the office more often: in this group, not 30% would prefer to work remotely no more than one day a week (on average, 20% of respondents would choose this option) [10]. The least experienced employees are also more likely to feel less productive when working remotely (34% vs 23%), and they are more likely to need contacts with managers. Women are slightly more likely to prefer three or more days of remote work than men (58% vs 51%). According to PwC [10], there is a positive trend in estimates of the productivity of remote/hybrid work: as employees gained experience of remote work during the pandemic, their confidence in their productivity grew. In December 2020, compared to a similar survey conducted in June, more employees noted that they are more productive than before the pandemic (34% vs 28%), and more than half of managers (52% vs 44%) claim that the average productivity of employees has improved. At the same time, contrary to expectations, representatives of Generation Z faced significant problems when working remotely: in the United States, 43% of workers aged 18 to 24 years noted that their productivity has decreased since they started working remotely. Remote work has negatively affected the interaction, creativity and innovation of some employees. In addition, if some employees have become more productive by getting rid of distractions in the workplace, commuting to work, many others are more likely to be forced to be more productive in the face of mass layoffs, and this effect is likely to be short-lived. In Russia, where before the pandemic, the majority (84%) worked mainly from the office/at the enterprise, the attitude to remote work is ambiguous. According to the AllRussian Center for the Study of Public Opinion VCIOM [16], more than half of working Russians find it convenient to work remotely (64% vs 29% who reported the opposite). It is convenient to work remotely more often for women (70% vs 60% of men), residents of Moscow and St. Petersburg (75%). The estimates of the pros and cons of remote/hybrid work were distributed as follows: every second Russian (52%) working in this format believes that the pros and cons in this format of work are approximately equal; every fourth (25%) sees more pros, and every fifth (20%) sees more cons (20%); women are more likely than men to see advantages in a remote/hybrid work model (30% vs 22%). At the same time, more than half of working Russians (65%) would prefer to continue
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working in an office/enterprise (aged 45 to 59 years - 71%), 8% of respondents would prefer to work remotely (aged 18 to 24 years - 33%) and in a hybrid format - 23% (most often, aged 18 to 44 years). According to the research “Organization of remote work in a large Russian business. Results 2020” [2], which was attended by 102 enterprises from the RBC 500 rating, 84% of Russian respondents see certain advantages for business in remote work: attracting or retaining employees with a flexible schedule of office visits (40% of respondents), the possibility of hiring staff from the regions (35%), reducing office rental costs (31%). More than half of the respondents expect to use a hybrid work model in the future (7% - remote mode for all employees, 41% - for some employees, and 44% - flexible schedule), and only 17% of companies are ready to return to remote work only in case of a quarantine. As recent experience has shown, the main problems for companies when switching to a remote/hybrid format of work can be: a high load on IT personnel (52% of respondents), a shortage of laptops (35%), the emergence of new information security risks (29%). Most of all, employees suffer from the following factors when working remotely/hybrid [7, 12]: inability to quickly switch from home mode to work mode; irregular working days; feeling of loneliness and isolation from the outside world; emotional depression because of the lack or incompleteness of communication with colleagues; distractions, role conflict (“employee “vs” family member”); cramped home conditions; increased control by the employer. Getting experience in the remote work mode, not all employees were prepared for self-organization, building a work and rest schedule and maintaining work efficiency. Most of the problems arose among employees who interact with colleagues for more than 65% of their working time, people who communicate mainly within the team/team. One of the problems of the hybrid model may be socialization and the formation of strong relationships – an important aspect of corporate life, which can be largely or completely deprived of employees working remotely. At the same time, attempts to increase attention to socialization in such conditions can cause additional tension, be perceived by employees as a pressure factor. The transition to remote work had an ambiguous effect on the problem of emotional burnout of employees: on the one hand, there were additional opportunities to devote more time to family, sports or hobbies, including through the use of time spent on the way to work, to optimize work & life balance, at the same time, additional reasons for burnout were the loss of a sense of team, incorrect interpretation of messages and intonations in a remote format. The desire to strengthen control over the activities of employees who are out of the office has led to the emergence of new bizarre micromanagement mechanisms: additional reporting documentation, an increase in the number of meetings, the need to constantly be online (45% of managers are worried that their employees will not be able to focus on their tasks while working remotely, 19% believe that a remote employee should inform his supervisor exactly where he works, etc.). There are grounds for concern that a hybrid work model may deepen the gap between those who work in the office and those who are at home, up to the formation of a counterculture “we are against them” (similar to the confrontation between the auxiliary office
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and the head office), as well as create conditions under which employees working in the office, which means that they interact more often with higher managers and demonstrate the results of their work, can receive additional preferences compared to employees working remotely [3, 5]. Another hidden threat is the possibility of increasing the gender gap, since the female workforce in many countries is more concentrated in professional clusters that have relatively low potential for remote work (such as healthcare, food services and customer service).
4 Discussion Summarizing the research on the experience of remote/hybrid work, it is important to emphasize that the possibility and feasibility of switching to this model is determined by a number of factors. A study by the McKinsey Global Institute [8], which covered more than 2000 types of activities in more than 800 professions, confirmed that highly qualified and highly educated employees in several industries, professions and geographical regions have the greatest potential for expanding the scale of remote work, and more than 20% of employees in such activities as collecting and processing information, communicating with other people, training and consulting, as well as data coding can work remotely from three to five days a week as efficiently as in the office. In countries with developed market economies, employees could devote 28–30% of their working time to remote work without losing their productivity. In emerging market economies, where employment is shifted towards professions that require physical work in agriculture and manufacturing, the potential for remote work is 12–26% of working time. For most employees, some activities during a normal working day are suitable for remote work, while other tasks require their physical presence in the office. Thus, according to Mckinsey [8], in the United States, only 22% of the workforce can work remotely from three to five days a week without reducing productivity (while in India only 5% can do this), 61% can work no more than a few hours a week remotely, the remaining 17% could work partially remotely, from one to three days a week. The possibility of remote work also depends on the need to use specialized equipment, and also, even for the same type of activity, the context is important in which the work is performed. The effectiveness of the hybrid model is determined by a wellthought-out program of actions taken by the company to organize work, investments in digital infrastructure and support for virtual cooperation [6, 15]. In addition to solving technological problems (the introduction of digital platforms for collaboration, providing employees with the necessary IT solutions and the ability to access the Internet from home), it is necessary to define guidelines and expectations for a hybrid work model, covering such aspects as: – – – –
evaluation of the employees’ performance based on the results of their activities; maintaining the corporate culture; managing employee’s well-being and maintaining their mental health; procedures and etiquette for conducting online meetings and personal meetings in the office;
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– optimization of communication channels; – changing the design and equipment of workplaces so that they become more flexible and adapted for the team cooperation and become a social center. Taking into account the already accumulated experience, more than 60% of managers consider it necessary to increase spending on virtual collaboration tools (including IT infrastructure to ensure a secure virtual connection) and training for managers to lead teams in hybrid work, more than 80% of managers emphasize the importance of expanding child care benefits. Hybrid work models require clarity about job roles: it is necessary to decide which tasks are best suited for the home (for example, writing a report), which ones are best suited for the office (brainstorming). It’s not enough to rely only on tools for tracking work tasks, you need to create a digital community for employees in a hybrid workspace that will help you bridge the gap between internal team members and remote workers (for example, Slack or group chats to promote non-work-related topics). It is also advisable to use an asynchronous form of communication, in which the members of the hybrid team are provided with all the necessary information, with which they will continue to work, make the necessary requests, update the status, but it does not require the connection of all users 24/7. This form of communication will allow members of the hybrid team to work continuously without stress/worry about the need to stay connected all the time. Important conditions for effective remote/hybrid work can also include assistance to employees in managing workload/scheduling working hours and ensuring that employees are trained in the skills necessary to work in a remote environment, having clear rules setting the time when employees should be available/flexibility of the worker to perform household duties. Having lost to some extent the traditional tools for maintaining corporate culture with an increase in the scale of remote work, companies realized the need to use additional measures aimed at preserving key values and norms, for example, transferring some team-building events to an online format (NHCI Alibaba), encouraging employees to self-organize, helping colleagues by their care of elderly relatives, children (IBM), training employees to use self-organization and collaboration tools (Rosatom), transferring events to an online format for the adaptation of new employees, including discussion of values and norms of corporate culture in interactive sessions with leaders and colleagues, expanding opportunities to ask employees questions to the management (Slack), holding virtual team sessions. However, the problem of maintaining a unified corporate culture will increase with the transition to a hybrid model on an ongoing basis: firstly, because some of the staff in a distributed team will be outside the company for a considerable time, and secondly, because employees may come from different cultural and geographical areas and are less likely to have common values and experience.
5 Conclusion Summing up the results of the study, it is important to emphasize that the hybrid work model provides companies with greater flexibility, opening access to new pools of talent that can work in different time zones, without restrictions on location, and contributing
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to the democratization of workplaces. At the same time, companies get the opportunity to save on expensive office maintenance costs. Employees, including people with disabilities, can work where and when they are most productive, revealing their strengths and increasing productivity. But at the same time, remote employees of hybrid teams may feel isolated and deprived in terms of social interaction. Communication requires additional skills and effort. As a result, the study showed that companies can involve employees in a hybrid work model as long as their desires and needs for flexibility are balanced by efforts to effectively lead and develop cultural cohesion.
References 1. Capgemini: The future of work: from remote to hybrid (2020). https://www.capgemini.com/ research/the-future-of-work/. Accessed 30 Mar 2021 2. Jet Information Systems: Organization of remote work in a large Russian business. Results of 2020 (2020). https://jet.su/remote/. Accessed 10 Mar 2021 3. Delanoeije, J., Verbruggen, M., Germeys, L.: Boundary role transitions: a day-to-day approach to explain the effects of home-based telework on work-to-home conflict and home-to-work conflict. Hum. Relat. 72(12), 1843–1868 (2019) 4. Gartner: Gartner survey reveals 82% of company leaders plan to allow employees to work remotely some of the time (2020). https://www.gartner.com/en/newsroom/press-releases/ 2020-07-14-gartner-survey-reveals-82-percent-of-company-leaders-plan-to-allow-employ ees-to-work-remotely-some-of-the-time. Accessed 26 Mar 2021 5. Golden, T.D., Eddleston, K.A.: Is there a price telecommuters pay? Examining the relationship between telecommuting and objective career success. J. Vocat. Behav. 116(1), 103348 (2019) 6. Grattan, L.: Four principles to ensure hybrid work is productive work (2020). https://sloanr eview.mit.edu/article/four-principles-to-ensure-hybrid-work-is-productive-work/. Accessed 10 Aug 2021 7. Golden, T.D., Gajendran, R.S.: Unpacking the role of a telecommuter’s job in their performance: examining job complexity, problem solving, interdependence, and social support. J. Bus. Psychol. 34(1), 55–69 (2019) 8. Mckinsey&Company: What’s next for remote work: an analysis of 2,000 tasks, 800 jobs, and nine countries (2020). https://www.mckinsey.com/featured-insights/future-of-work/whatsnext-for-remote-work-an-analysis-of-2000-tasks-800-jobs-and-nine-countries. Accessed 19 Mar 2021 9. Molla, R.: How remote work is quietly remaking our lives (2019). https://www.vox.com/ recode/2019/10/9/20885699/remote-work-from-anywhere-change-coworking-office-realestate. Accessed 19 Mar 2021 10. PwC: It’s time to reimagine where and how work will get done (2021). https://www.pwc. com/us/en/library/covid-19/us-remote-work-survey.html. Accessed 26 Mar 2021 11. Raghuram, S., Hill, N.S., Gibbs, J.L., Maruping, L.M.: Virtual work: bridging research clusters. Acad. Manag. Ann. 13(1), 308–341 (2019) 12. Ralph, P., et al.: Pandemic programming. Empir. Softw. Eng. 25(6), 4927–4961 (2020). https:// doi.org/10.1007/s10664-020-09875-y 13. Schur, L.A., Ameri, M., Kruse, D.: Telework after COVID: a “silver lining” for workers with disabilities? J. Occup. Rehabil. 30(4), 521–536 (2020). https://doi.org/10.1007/s10926-02009936-5 14. Teevan, J., Hecht, B.: How research can enable more effective remote work. Microsoft Research (2020). https://www.microsoft.com/en-us/research/blog/how-research-can-enablemore-effective-remote-work/. Accessed 10 Mar 2021
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15. Tikhonov, A.I.: Corporate training programs in Russian and foreign companies: impact on staff and time challenges. Int. J. High. Educ. 9(3), 183–189 (2020). https://doi.org/10.5430/ ijhe.v9n3p183 16. VCIOM (Russian Public Opinion Research Center): Remote work in the Russian style: pros and cons. https://wciom.com/index.php?id=61&uid=1823. Accessed 10 Aug 2021
Author Index
A Aghgashyan, R. V., 547 Alpatova, M. V., 248 Anikin, B. A., 422 Antonov, V. G., 310 Apukhtin, M. P., 219 Arkhipova, N. I., 402 Astafyeva, O. E., 379 Atas, H., 529 Avetisyan, G. V., 453 Azoev, G. L., 285
Dyakonova, M. A., 303 Dzhioeva, I. K., 17
B Badyina, A. V., 523 Balashova, T. N., 204 Baziyan, Zh. K., 316 Belousov, V. A., 386 Bochkov, A. A., 74 Bochkova, G. Sh., 163 Bogdanova, M. V., 409 Botasheva, A. K., 303 Bukhtoyarova, M. V., 395 Butkovskaya, G. V., 297
G Galperina, Z. M., 485 Glazkov, A. V., 248 Gurschenkov, P. V., 74
C Cherepov, V. M., 360 D Denisova, A. I., 17 Derevyagina, L. N., 324 Domnina, S. V., 187 Dunenkova, E. N., 331 Dvorakova, Z., 529
E Efimova, V. V., 138 Elkina, D. A., 339 Erygin, K. V., 513 F Fedorova, A., 529 Filindash, L., 277
I Ignatova, Ya. S., 500 Ivanov, I. N., 179 Ivanov, S. I., 179 Ivashkevich, E. F., 163 K Kakaeva, E. A., 331 Kamchatova, E. Yu., 476 Kardanova, M. L., 303 Karsanova, E. S., 354 Kempa, V. S., 476 Khalimon, E. A., 110 Khisamova, Z. I., 239 Khokhlov, D. A., 285 Khvostenko, O. A., 227 Kobyzeva, N. A., 485
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 S. I. Ashmarina et al. (Eds.): Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy”, LNNS 397, pp. 555–557, 2022. https://doi.org/10.1007/978-3-030-94873-3
556 Kogotkova, I. Z., 147 Kolobkova, V. A., 154 Konovalova, V. G., 547 Konstantinova, L. A., 25 Kornilovich, V. A., 65 Kozlovsky, A. V., 379 Kramarenko, I. V., 25 Krasnov, E. V., 297 Krotenko, T. Yu., 445 Krylova, N. F., 506 Kulikova, O. A., 65 Kurasova, O. V., 58 Kurbatova, E. S., 513 L Larina, O. I., 415 Latfullin, G. R., 316 Lipchanskaya, M. A., 204
Author Index Petrenko, B. V., 547 Petrenko, Y. S., 310 Petrunina, I. V., 360 Pisareva, O. M., 17 Popov, V. V., 81 Popovich, O. A., 506 Potekhina, E. V., 493 Puzanova, I. A., 422 R Raichenko, A. V., 453 Romanov, A. A., 154 Rouiller, N. B., 213 Rudyak, Yu. V., 248 Rumyantseva, I. A., 445
O Obradovi´c, V., 110 Oreshina, M. N., 523 Orlova, L. V., 179 Onishchenko, S. I., 331
S Salynina, S. U., 187 Samosudov, M. V., 346 Savchenko-Belsky, V., 430 Savoskina, E. V., 187 Sedova, O. L., 402 Serebryakova, G. V., 462 Sergievskiy, M., 438 Shagieva, R. V., 163 Shevchenko, M., 438 Shishkova, A., 43 Shramchenko, T. B., 462 Shustova, L. I., 386 Sibiryaev, A. S., 170 Sidorenko, E. L., 3, 239 Silaev, A. A., 130 Sirotin, A. A., 386 Slatov, D. G., 99 Smirnova, V. G., 316 Smotrova, I. V., 219 Sobolevskaya, O. V., 360 Sokolov, N., 89 Solovova, N. V., 99 Soroko, G. Ya., 147 Sozaeva, D. A., 33 Strelnikova, I., 89 Strigunova, D. P., 81 Sukhankina, N. V., 99 Suvalov, O. S., 10 Suvalova, T. V., 10 Suyazova, S. A., 33 Sycheva, S. M., 110
P Parshikova, G. YU., 130 Parshintsev, A. A., 409 Paudal, N., 277 Perfiliev, A. A., 130 Peshkova, O. A., 368
T Talalova, L. N., 50 Tashimkhanova, D. S., 506 Tian, J., 50 Tinyakova, V. I., 493 Titor, S. E., 196
M Makarenko, A. E., 262 Malanicheva, N., 89 Malkova, A. V., 500 Mamedova, I. A., 430 Maslennikov, V. V., 453 Maslennikova, E. V., 204 Mayorova, E. I., 196 Mikhaleva, O. L., 541 Mishin, A. Yu., 118 Mishin, Yu. V., 118 Moiseenko, N. A., 379 Morozova, N. I., 493 Moryzhenkova, N. V., 415 Movsisyan, A. T., 213 Mushko, F. G., 213 Myshko, Yu. A., 74 N Nazaikinsky, S. V., 402 Nezamaykin, I. V., 462 Nikitin, S. A., 339 Nikitina, E. V., 339
Author Index Tokarev, B. E., 468 Tokmakov, M. A., 219 Tokmurzin, T. M., 170 Tsenina, E. V., 513 Tuktarova, L. R., 270 V Vasilenko, V. I., 65 Vasilyeva, O. A., 58 Velesco, Serge, 430 Vikhodtseva, E. A., 485 Vinokur, A., 438 Vladimirov, I. S., 476
557 Volgin, O. S., 354 Volkov, V. R., 3 Vorontsov, V. B., 422 Z Zakharov, M., 43 Zaytsev, A. V., 255 Zhernakova, M. B., 445 Zhukova, M. A., 10 Znamenski, D. Yu., 170 Zozulya, A. V., 324 Zozulya, P. V., 324