=Paper=
{{Paper
|id=Vol-2763/CPT2020_paper_s3-2
|storemode=property
|title=Socioeconomic technologies - development trends in the age of digitalization
|pdfUrl=https://ceur-ws.org/Vol-2763/CPT2020_paper_s3-2.pdf
|volume=Vol-2763
|authors=L.A. Reingold,A.V. Solovyev,E.A. Reingold
}}
==Socioeconomic technologies - development trends in the age of digitalization ==
https://ceur-ws.org/Vol-2763/CPT2020_paper_s3-2.pdf
Socioeconomic technologies – development trends in the age of
digitalization
L.A. Reingold1, A.V. Solovyev2, E.A. Reingold3
leonidrein@gmail.com | soloviev@isa.ru | l_r@mail.ru
1
LLC DIAVER Moscow, Russia
2
Federal Research Center “Computer Science and Control” of Russian Academy of Sciences, Moscow, Russia
3
LLC MCD PARTNERS Saint Petersburg, Russia
Dramatical changes in society’s infrastructure require new conceptual approaches towards the research of socioeconomic
phenomena. Nowadays, environment surrounding people experience qualitative changes; it has become possible to use full information
on the history of objects. It is essential to develop a conceptual framework enabling to thoroughly describe the interaction of an
individual and a socioeconomic environment that is changed by digital technologies. In this article, it is suggested to use the concept of
socioeconomic technology in the context of exploration of digitalization processes. These include the Internet of things, big data
processing, widespread implementation of personal tools to process and share information etc. The concept of socioeconomic technology
allows tying up new technologies with the needs of an individual and society as well as with phenomena emerging in socioeconomic
infrastructure. The suggested approach may be used at the development and implementation of the Internet of things, of global
communication infrastructure, of technologies for processing and storage of data, and for the research of other aspects of society’s
digitalization. Today it is possible to research different directions for the development of consumption sphere and technologies taking
into account the emergence of virtual properties of objects. Virtual properties result for example in multiple ways to implement things,
in the possibility to store and use the full history of major objects surrounding an individual. Conceptual framework suggested in this
article allows holistically addressing the issues of commercial efficiency and socioeconomic management in the age of digitalization.
Keywords: digitalization, socioeconomic technology, the Internet of things, virtual properties of an object, big data, digital
technologies.
infrastructure even more user-friendly [2]. It is needed to
1. Introduction analyze conceptual issues, socioeconomic consequences
Digitalization and a widespread implementation of arising out of the implementation of digital technologies.
digital technologies result in the fundamental changes of Before digitalization, the methods of manufacturing
the socioeconomic infrastructure of modern society. and consumption of objects surrounding individuals did
Providing this, there is a high demand for the tools not change much. At present, the integration of virtual
allowing studying and assessing the consequences of the properties into objects, the development of information
implementation of digital technologies. It is required to processing and communication systems made the structure
study thoroughly the needs specific to the current of social interaction changeable. There is a need for
socioeconomic system emerging due to the development conceptual and technological solutions covering the whole
of new methods and technologies to satisfy them. life cycle of objects surrounding individuals and allowing
The use of digital technologies provokes virtualization detecting and addressing challenges arising on the way.
and complication of socioeconomic mechanisms on For example, there are new issues in the sphere of state
different levels of society. Things obtain new implicit administration and legal regulation. The necessity to
properties due to the availability of imbedded data address these issues is recognized by the society, which is
processing tools, management and communication supported by management principles and statutory
instruments. These enable new ways to satisfy individual’s framework in use, including in Russia [3, 4].
needs. These phenomena must be taken into account at the It is crucial to conceptualize the changes at the mass
development of digital and social infrastructures of the implementation of end-to-end digital technologies: big
modern society. data, virtual and augmented reality technologies,
Nowadays, new consumer goods are emerging quite distributed ledger systems etc. [5]. Digital ecosystems that
fast, existing goods are modified due to the application of connect people, things and virtual objects for co-use of
digital technologies for the design and manufacture; digital platforms are being developed [6]. The
interaction with environment is being automated. The implementation of such systems considerably change
emergence of new properties in objects is a source of new society’s major life spheres – manufacture, consumption,
challenges for both society in general and an individual management systems on all levels. The changes affect all
personally. For example, the implementation of new spheres of life – career, lifestyle, leisure, communication
infrastructure is complicated by privacy issues, personal with other individuals etc.
and financial security challenges etc. Digital technologies generate huge data volumes,
There are different approaches towards the enable its long-term storage and real-time usage. Interests
development of digital infrastructure so that it is more of all involved users should be considered when using this
user-friendly. One of the approaches enabling faster data; all encountered complications should be dealt with
adaptation to new conditions is the implementation of new proactively.
features by nature-like methods, i.e. by familiar and The majority of new methods to satisfy the needs
understandable methods [1]. The use of artificial appear due to the emergence of new features enabled by
intelligence technologies, robotic engineering that the implementation of digital technologies. To address
considers the peculiarities of human brain can make digital arising scientific and practical tasks is it needed to take
Copyright © 2020 for this paper by its authors. Use permitted under Creative Commons License Attribution 4.0 International (CC BY
4.0)
into consideration variability and multilevel structure of information is concerned, digital technologies allow
changes in manufacturing and consumption patterns providing a new quality level of situational awareness of a
occurring in the society in general and in the life of every user. Traditional mail successfully coexist with digital
individual. Tools allowing exploring emerging communication technologies although it is gradually
opportunities and defining their usage terms and forced out by other means of communication because the
applicability limits are in demand. Some approaches use of technical means is not always supported by
towards development of such tools are described herein. regulatory procedures and instruments.
SET is evolving technologically – technologies and
2. Socioeconomic technology processes behind them, regulatory support is changing.
Technologies are intended for the satisfaction of needs New SET allow meeting new needs and requirements. The
of an individual, a social group or society in general. The progress of modern society is largely the result of
needs are defined by human body characteristics, social advancement of existing and development of new SET
group activities, society’s requirements, manufacturing enabling the evolution of manufacturing and consumption
capabilities etc. We can consume natural and artificial processes.
objects. The integration of digital technologies enables to Fig. 1 illustrates the concept of socioeconomic
satisfy needs on a new qualitative level, by methods that technology. In the left part of the scheme, there are
are more convenient. technologies enabling technological means for the
Nowadays, the consumption process is defined in the implementation of SET. In the right part of the scheme,
context of manufacturing capability and existing demand there are needs and requirements of a certain type of
- any opportunity to meet the demand is fulfilled. individuals. At the intersection of technologies and needs
However, in the age of digitalization this approach is not there are SET. New SET are emerging as a combination of
enough. A comprehensive analysis of consequences after available technologies and existing needs. A SET should
the implementation of digital technologies should be done be sought-after and its implementation should be possible
because the changes it provokes are variable, deep and with the use of available technologies. Efforts to satisfy
controversial. the needs are based on a certain business model that
Using terminology of databases developers, the guarantees profitability if they are designed for
correlation between technologies and needs can be commercial use. Besides, SET can serve as a tool of
described as many-to-many – one technology can be used socioeconomic management supporting, for example, the
to satisfy many needs, while one need can be satisfied by implementation of regulatory documentation.
several technologies [7]. To describe this correlation we SET system that uses digital infrastructure operates
suggest the concept of socioeconomic technology automatically. Human involvement into SET tends to
(hereinafter SET) [8]. The correlation between decrease due to the automatization of business processes
technologies and needs is not conceptually developed and that in its turn is provoked by algorithmization,
thought over. implementation of artificial intelligence and robotization.
The SET concept is not well-defined and is usually The architecture of enterprises in digital environment
used in economic, sociological and philosophical spheres. changes, which is reflected in corresponding standards [9].
However, this concept can be effectively applied to the The use of SET concept allows exploring the system to
research of digital transformation processes. satisfy the needs in connection with new technologies, to
Under SET we mean the satisfaction of a certain need examine consumption mechanisms in their entirety.
with the use of a certain technology. For example, people In literature, the expression “socioeconomic”
always wanted to exchange messages. In the course of characterizes a certain technology either in social or
time, more advanced and convenient technologies were economic context. The concept suggested in this article is
used to meet this need: from birch-bark manuscripts and more defined and allows applying a new method to
letters mailed by postal service to emails and SMS and explore ongoing changes.
other messengers. Appeal of this type of SET to consumers A new type of objects – SET – is introduced; it links
improves when digital technologies are applied. Quality the need with the technology used to meet it. This link is
parameters for this type of SET include message transfer named, it can have identification and other attributes, it can
rate, price of delivery, size and length of the messages, be researched along with other similar objects. Such
possibility to communicate in dialog, group approach enables a thorough detailed analyses and process
communication etc. modeling of digital transformation. It is possible to
It could take months to deliver a letter while in digital develop methods to build new SET or analyze consumer
environment information travels instantly. Messages can behavior in new conditions.
include audio and video data. Thus, SET is always Consumption process is usually divided in time. New
changing according to the users’ needs and requirements. technologies are not implemented instantly – their
Technologies implemented in the course of development, implementation and regulatory support of
digitalization do not always substitute previously used their application take time. Implementation of new SET
technologies. Quite often, they are used to modify existing compared to existing ones as a rule requires investments
ways to meet the needs. SET of the same application that and a certain additional knowledge. Providing this, the
emerged in different time and that are based on different usage of new SET is low at the beginning but it grows with
technologies can coexist for a long time and serve a the course of time and availability. The use of digital
particular niche of users satisfying their needs. As far as technologies increases attainable level of consumption –
the speed of needs satisfaction is growing, participation of
other individuals to meet the need is not required more technologies and existing needs that does not go beyond
often than not, the costs are decreasing etc. Thus, the the limits of common sense forms an admissible set of
development of modern society is substantially defined by SET.
digital technologies. It is known that classifications can be
SET can be analyzed on different levels of monohierarchical and polyhierarchical [10, p.17].
generalization. Both technologies and needs can be Polyhierarchical classifications permit multiple
demonstrated in the form of multilevel classification. inheritance, i.e. they allow demonstrating that SET may be
Providing this, SET is a derivative classification whose based on several technologies and several needs from
every element is defined by corresponding elements from different levels of their classification. This is
technologies and needs classifications. schematically demonstrated on figure 1. The use of this
In the example with messages above, two classification approach allows presenting a formalized SET description
options are possible – on the one hand, a classification of on different levels of generalization. Classifications of
messaging technologies, on the other, a classification of needs and technologies applied for the certain object
needs for sharing information. A combination of applied domain form the basis for such SET classification.
Fig.1. Socioeconomic technologies. A scheme
Thus, the emergence of navigation services for
3. Socioeconomic digital technologies vehicles on the one hand allows saving time and resources
The implementation of digital technologies increases of a certain individual, on the other hand it helps to
the number of SET variants – new virtual or virtualized improve the performance of the transportation system in
(having explicit virtual properties) objects emerge; the general. Such technologies make it possible to meet the
infrastructure of society is interconnected by a general existing needs on a different level and at the same time
communication system. There were no previous analogues they are the basis for the development of new needs and
to some of the technologies, their capabilities result in the requirements and their further addressing with new SET.
emergence of new needs. A digital ecosystem is formed around such technologies;
The examples of such previously non-existent it allows developing SET with new functional capabilities
technologies are geolocation and automatic objects using emergent features of such a system.
recognition. People, vehicles and other objects of natural The examples of digital technologies that form the
and created environment are the SET objects based on basis for the emergence of new methods to satisfy
these technologies. With the use of these SET the scope of communication needs include new generation
activities and object’s location can be stored and later used communication technologies such as 5G for establishing
to meet the needs of individuals or improve the connectivity between devices on large territories (a city, a
performance of socioeconomic system in general. state, the planet in general) [11]; WiFi 6 enabling data
exchange within buildings and confined spaces [12];
Bluetooth 5.1 enabling to connect devices of an individual
taking into account their location [13]. SET created on the − A need does not depend on the existence of a SET that
basis of these technologies will be able to meet can meet it. A need can be first conceived and later
individuals’ communication needs and support the the technology and SET to satisfy it will be suggested.
performance of the emerging infrastructure of the Internet For instance, the desire to fly emerged by far earlier
of things in future. than the possibility to do so.
A modern individual expects that the performance of Understanding of the need allows formulating the
digital objects will be programmable and intellectual. The requirements towards SET and finding the methods to
needs of individuals may be classified by different satisfy it among available technologies. The research of
parameters. For example, we can define the following needs as one of the main conditions for the development
basic groups of needs – nutrition, household, and lifestyle; of SET is growing considerably in the age of digitalization
communication between themselves and with surrounding due to the growing flexibility of infrastructure. The reason
automated devices; entertainment and leisure; assistance for the that is that it is much easier to implement digital
in performing job functions etc. properties with the use of digital technologies built into
SET can be different even when the same technologies things than their development by traditional ”mechanical”
are used to satisfy the same needs because SET or “electrical” methods.
performance can be implemented differently from Flexibility of functionality specific to things,
technological and managerial point of view. For example, emergence of elements of intelligent behavior and mutual
different business models or conceptual solutions may be communication result in additional challenges. Legally-
used at the different levels of applied technological stack. binding agreements that are automatically generated,
Data storage may be implemented using different smart contracts regulating concerted behavior of such
approaches towards data storage, different data base things should be developed [14].
management systems, different data access methods etc. Providing the above, it should be noted that the planing
Let us discuss the structure of SET considering of needs is more important than their spontaneous
peculiarities of digital technologies used in it. SET development. Traditional marketing may provoke system
consists of the following elements – technological stack, problems. One of the examples of problematic
the description of a need SET meets, parameters spontaneous development of digital technologies is the use
specifying the SET in general. These elements include: of new communication features of social networks in order
− Specifics and functional features of the used to support illegal activities.
technologies in general and of the digital technologies The use of SET concept to explain digitalization
stack applied at the implementation of SET. processes allows implementing a new approach towards
− Description of a need satisfied by SET and SET users’ detailed description of consumption system in the age of
characteristics. digitalization. It allows developing the means of
− Parameters defining SET in general. These are the automation for the exploration of consumption system and
parameters describing the main functional, technical avoid a number of problems in the course of
and economic features of SET as a universal system implementation of new technologies. Let us discuss
and distinctive features of SET. specifics and challenges related to the application in SET
Development and implementation of SET require of some popular digital technologies, namely the Internet
resources, namely – design of digital devices, analyses of of things, big data and individual communication devices
consumers’ needs, implementation of digital of citizens.
infrastructure. Training of users and marketing of new
SET is also needed. Development and operation of a 4. The specifics of socioeconomic
socially valuable SET is covered from the state’s budget, technologies usage in digital environment
while the use of a commercial SET for the provision of Digital technologies have certain specific features
goods and services is paid for. In many cases, the result of people were unaware of previously. These include data
digital SET application is information. Thus, SET supplier processing methods in digital environment and approaches
often gets the payment for the use of SET not in monetary towards addressing challenges related to them.
form, but in the form of access to the information about The important features of digital infrastructure are the
service users; besides, the suppler can show advertising ability to store and process data, informative interaction of
messages to users. infrastructure’s elements, a possibility to store the history
Let us define certain specifics of SET application that of previous parameters for all significant objects. At the
are important for the correct usage of this concept: same time, these features cause problems. For example,
− As a rule, SET can be considered on different levels there are certain issues when data is stored for a long time,
of generalization. For example, messaging technology when it is collapsed or when it is needed to guarantee its
can be considered in general or we can discuss certain integrity because information has become a crucial
messaging technologies – a letter, an email, an SMS resource for the functioning of modern society on all levels
etc. [15-19]. To avoid problems at the storage and processing
− A need can be satisfied by different SET, there are of data the following aspects should be taken into account:
always several variants, and individuals can choose − Data format compatibility should be implemented on
the means to meet their need. For example, one can both technical and semantic levels.
send a letter over a regular mail or electronically – by − Data immutability is guaranteed. This applies to the
email, a social network or any messenger service. preservation of semantics of regulatory and reference
information in all collaborating systems and to the Acknowledgements
provision of immutability of values for the stored
This article is prepared with a partial financial support
properties of objects.
of RFBR under the scientific project № 18-29-03070.
− The information should be correctly collapsed when
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About the authors
Reingold Leonid A., consultant, LLC DIAVER, Candidate
of Technical Sciences. E-mail: leonidrein@gmail.com.
Solovyev Alexander V., Chief Researcher, Department 94
ISA FRC CSC RAS. Doctor of Technical Sciences. E-mail:
soloviev@isa.ru.
Reingold Elena A., lead consultant, LLC MCD PARTNERS,
PhD in Economics, docent. E-mail: l_r@mail.ru.