=Paper=
{{Paper
|id=Vol-3039/short33
|storemode=property
|title=The Digital Business Transformation Index Determining and Monitoring: Development of a National Online Platform
|pdfUrl=https://ceur-ws.org/Vol-3039/short33.pdf
|volume=Vol-3039
|authors=Iryna Strutynska,Lesia Dmytrotsa,Halyna Kozbur,Liliya Melnyk
|dblpUrl=https://dblp.org/rec/conf/ittap/StrutynskaDKM21
}}
==The Digital Business Transformation Index Determining and Monitoring: Development of a National Online Platform==
https://ceur-ws.org/Vol-3039/short33.pdf
The Digital Business Transformation Index Determining and
Monitoring: Development of a National Online Platform
Iryna Strutynskaa, Lesia Dmytrotsaa, Halyna Kozbura and Liliya Melnyka
a
Ternopil Ivan Puluj National Technical University, Ruska str., 56, Ternopil, 46001, Ukraine
Abstract
The concept of the digital economy has become the ideology of the 21st century in developed
countries. In Ukraine, the implementation of the transition to the digital economy at the level
of small and medium-sized enterprises (SMEs) is rather difficult and time-consuming, since
decision-makers do not have sufficient digital literacy and consider digital transformation as
an incomprehensible and complex phenomenon, not seeing the place, role and advantages for
their business. The introduction of information technology allows any company to flexibly
change its own business model, ensure innovative development, achieve a competitive
position, and quickly and efficiently integrate into the global digital market. Realizing the
need to move to a new management concept, many small and medium-sized enterprises do
not possess modern tools and capabilities of digital transformation in practice. The pace of
innovation in Ukrainian entrepreneurship is slowing down due to the lack of understandable
and accessible sources of information, services, platforms, applications or portals for digital
transformation. In turn, this complicates the work of domestic business in the international
economic arena. The purpose of the article, namely the development of a digital platform for
small and medium-sized businesses, which would automatically determine the Digital
Transformation Index and provide an individual "roadmap" for improving the digital
development of an enterprise, is determined by the analysis of the identified problems.
Keywords 1
Digital Transformation, Digital Platforms, Index of Digital Transformation of Business
Structures, DESI, Digital Instruments, Digital Transformation Roadmaps
1. Introduction
The use of digital technologies provides significant benefits in all spheres of life. The companies
increase productivity and competitiveness, people acquire new knowledge and skills, receive job
opportunities, governments improve the quality of public services for citizens and organizations.
The following digital initiatives (strategies and programs) have been supported and realized – in
European Union «Digital Europe 2020» (2010 р.), in Germany «Industry 4.0.» (2011 р.), in China
«Internet+» (2015 р.) and many others – there are more than 86 of them overall. There are more than
15 programs in the digital economy in foreign countries (including Germany, China, Japan, Brazil,
USA, UK, Estonia, Nether-lands, Ireland, Sweden, Singapore, Philippines, Malaysia). Also, large
industrial companies in the world implement development strategies in the concept of "Industry 4.0",
"Internet +" (for example, Siemens, General Electric, SAP, Intel).
The European Union adopted the Digital Europe 2020 initiative in 2010, which is the first of seven
most important initiatives under the Europe 2020 Strategy. Its aim is to develop an online economy to
support economic growth in Europe and help European citizens and businesses to obtain maximum
return from digital technologies. It is expected that the implementation of this initiative will lead to an
increase in European GDP by 5%, or € 1,500 per capita.
ITTAP’2021: 1nd International Workshop on Information Technologies: Theoretical and Applied Problems, November 16–18, 2021,
Ternopil, Ukraine
EMAIL: strutynskairy@gmail.com; dmytrotsa.lesya@gmail.com; kozbur.galina@gmail.com; liliana.mel0512@gmail.com
ORCID: 0000-0001-5667-6569; 0000-0003-2583-3271; 0000-0003-3297-0776; 0000-0001-8844-5490
2021 Copyright for this paper by its authors.
Use permitted under Creative Commons License Attribution 4.0 International (CC BY 4.0).
CEUR Workshop Proceedings (CEUR-WS.org)
Thus, foreign countries and major leading companies in the world have already responded to the
challenges of the "Fourth Industrial Revolution" and approved appropriate strategies and action plans
for the digitalization of economic activity. That is why Ukraine should intensify the use of digital
technologies in order not to stay away from scientific and technological progress and gain additional
benefits from the implementation of digital development strategies of the national economy. The
purpose of the software is to increase the transformation of small and medium-sized businesses in
Ukraine.
Currently, there are many ways for determining the level of digital potential:
WEF Global Competitiveness Index [1];
WEF Networked Readiness Index [2];
WEF Technological Readiness Index [3];
The UN Global E-Government Development Index [4];
Digital Economy and Society Index [5];
ICT Development Index according to the report of the International Telecommunication
Union [6];
The Web Index according to the data of International organization World Wide Web
Foundation [7];
Internet penetration rate according to the International Telecommunication Union and the
World Bank [8].
Most of these methods are not adapted to Ukrainian realities and cannot reflect the current picture
of the penetration of digital technologies in small and medium-sized businesses.
Aspects of the formation and development of the digital economy are covered in the works of such
foreign researchers as W. Isaacson, B. Larralde, А. Toffler, H. Tof-fler, R. Hagen, A. Schwienbacher,
Т. Scholz. Ukrainian specialists, such as Yu. M. Bazhal, K. Yu. Kononova, N. M. Kraus, have also
contributed to the grounding the concepts of digital economy.
The purpose of the study is to substantiate the need to design and develop a digital platform that
would automate the process of data collection, processing and automatic determination of the Index of
digital transformation of business structures and obtain specific recommendations (road maps) to
increase the Index.
2. Research Methodology. Results
AD (Rapid Application Development) has been chosen as the underlying methodology. It uses
object-oriented methods to describe the subject area.
In the context of the global digital transformation, it is impossible to avoid its impact – whether
you are an ordinary citizen, business owner or civil servant [9].
Adaptation and transformation of business with the help of digital technologies is one of the main
ways to increase the efficiency of business’ activities and innovation. Digital tools, previously used
only by large companies, are now available to small and medium-sized businesses. To calculate the
Index of digital transformation of business, an innovative method for determining the Index of digital
transformation of business structures was developed in previous research [10, 11].
In order to obtain up-to-date data and test the calculation methodology, an innovative
questionnaire on the level of digital business transformation was designed [12].
To effectively collect and process survey data, we consider it necessary to develop a digital
platform with signs of cyber-physical system (such as data flow, cybernetic processing, decision
making [13, 14]) for automatic determination of the Index of digital trans-formation of business
structures.
The main condition for the proper functioning of the platform, and therefore the automatic
calculation of the Index and the display of individual recommendations for businesses is the need to
comply with certain technical parameters.
First of all, all questions of the questionnaire were divided into 4 logical sections:
First section, «Information» – does not affect the result of the Index, however, the data are
collected for statistics and in-depth analysis, to improve the performance of the platform algorithm in
the future.
Second section, «Digital Infrastructure «T» (equipment, technologies) – questions related to the
technical support of employees and the quality of the Internet.
Third section, «Digital tools «І» – 19 questions about the most common digital tools for doing
business, from simple to specially designed software solutions.
Fourth section, «Digital literacy «Н» – level of digital technology ownership of the organization’s
human capital.
Each question of the second, third and fourth sections has a certain value depending on the chosen
answer. In addition, the sections differ in the coefficients of influence on the final result. Based on the
answers received from the user, the Index of digital transformation of the business structure in the
range from 0 to 1 is calculated and individual recommendations are provided to improve the level of
the Index.
In order for the platform to function effectively, it is necessary to adhere to the basic user
requirements:
1. A possibility to use the service without the need to install special software on your device,
just go to the platform address [6];
2. The duration of the session, including creating an account and doing the survey, should not
exceed 10 minutes;
3. The user must have access to his/her personal recommendations at all times.
From the perspective of a business, the system should:
ensure the reliability of storage of personal data of users;
relevance of personalized recommendations for each area of activity;
constant access to the history of the results of previous surveys;
provide comparative statistics for individual regions;
the opportunity for each user to take regular surveys, but not more often than once every 30
days;
be able to enter new questions and recommendations into the system with the help of the
administrator's office.
It was decided to use modern language technologies to design this digital platform and namely the
language of JavaScript. React, an open JavaScript library for creating user interfaces, was designed to
solve the problems of partial updating of web page content encountered in the development of one-
page applications.
React allows to create large web applications that use data that changes over time without
reloading the page. Its goal is to be fast, simple, scalable. In addition, several assistive technologies
and libraries were used:
Firebase – to access the database;
Chartist – to display graphics;
Formic – to create forms;
React-router – to navigate the website;
Yup – to validate.
A database with four tables was created to implement the main functionality (see Figure 1).
Figure 1: Visualization of the created database*.
*Source: author’s own development
Tables ‘database’ and ‘indicator’ are services and available in the reading mode, in case of need of
changes in the specified tables, editing occurs through an office of the administrator, or directly,
database tools. Table ‘users’ stores information about registered users of the system. Table ‘answers’
contains the results of all surveys ever done and a detailed history of answers.
When creating a user account (business organization) in the system, all data will be displayed and
stored in the table ‘users’ as a complex object (see Figure 2) which contains the following fields:
1. ‘all_index’ – a collection of all indexes assigned to the user;
2. ‘all_times’ – collection with information about the time of all surveys;
3. ‘cwed’ – collection of Classification of Types of Economic Activity of the business entity;
4. ‘kilkist’ – number of employees;
5. ‘last_index’ – the last assigned index;
6. ‘last_poll’ – the last poll/survey done;
7. ‘login’ – the user's login, and therefore his/her e-mail;
8. ‘name’ – user’s name;
9. ‘number’ – user’s number;
10. ‘oblast’ – the region where the business entity operates;
11. ‘org_form’ – organizational form of business entity registration;
12. ‘password’ – user’s password.
Figure 2: Visualization of database storage in table ‘users’*
*Source: author’s own development
After the survey is conducted by the business entity, a new record is created in the ‘answers’ table
(see Figure 3).
Figure 3: Visualization of database storage in table ‘answers’*
*Source: author’s own development
Objects consist of 4 sections:
1. ‘answers’ – answers collection;
2. ‘data’ – date of doing a survey;
3. ‘index’ – calculated Index at the time of the survey;
4. ‘user’ – user’s login.
In general, the digital platform should be user-friendly and easy to use, i.e. with an appropriate
interface.
By interface we mean a set of agreements on the forms, methods, processes, rules of user
interaction with the software. The interface should:
Be compatible with user’s needs and capabilities.
Ensure the transition from one function to another.
Provide a user with a high level of guidance on his/her possible actions, as well as generate
appropriate feedback on his/her requests.
Provide a user with different, complementary forms of presentation of results de-pending on
the type of request or the nature of the decision.
Take into account the characteristics of users of different levels.
Acceptable user requests must be clear and unambiguous for users at all levels.
The system’s response to all types of requests should also be unambiguous and clear and, if
possible, simple.
The interface should not be overloaded with details about the solution of the problem.
It should not contain unnecessary decorative details that distract from the main task.
The interface must be consistent, i.e. based on the use of known, generally accepted methods
and means of presenting information [15].
Here is a short description regarding the interface design of this digital platform. The design in the
style of minimalism and the color scheme in the same style with the existing state web resources in
Ukraine and similar platforms in the EU were chosen (see Figure 4). The list of controls and
individual system modules is standard for modern web services.
Figure 4: The main page of the digital platform for determining and monitoring the Index of Digital
Transformation of Business Structures *
*Source: author’s own development
The main page has navigation elements that allow you to quickly access any functionality of the
page.
Logo;
Side menu of navigation;
Drop-down lists with available categories of information to display;
Graphics with visualization;
Interactive map for selecting a region;
Diversified chart switches;
Top navigation items.
The developed web service is as easy as possible to use, no additional software is required to get
started.
After creating an account one can log in, using password (see Figure 5).
Figure 5: Visualization of the process of entering the office on a digital platform*
*Source: author’s own development
When a user logs in under their login, taking the survey becomes available. In the navigation
menu, click ‘Take Poll’ (see Figure 6).
Figure 6: Visualization of the process of starting the survey*
*Source: author’s own development
After answering 31 questions, the respondent receives the calculated Digital Trans-formation
Index and a link to the cabinet with individual recommendations (see Figure 7).
Figure 7: Visualization of the process of starting the survey *
*Source: author’s own development
To view the recommendations, follow the ‘cabinet’ link on the survey page or through the top
navigation bar.
3. Conclusions and Prospects
The developed digital platform for determining and monitoring the Digital Business
Transformation Index will be useful for all market stakeholders and there different ways to benefit
from it:
1. For entrepreneurs there will be an opportunity, without creating an account, to gain access to
general, non-personalized statistics for different regions and the prevalence of certain tools;
2. Opportunity to become a user of the system and receive personal recommendations based on
the calculated Digital Transformation Index;
3. For government officials, the system (platform) allows to collect detailed and accurate data on
the development of small and medium-sized businesses, statistics on the level of development of
various sectors of the economy both in the region and in the country overall. The platform
provides a realistic, generalized picture of the digital maturity of the business entity and digital
literacy.
4. For educational organizations there will be an opportunity to know the problems of business
and, thus, to structure the relevant courses and provide a high level of educational services;
5. For sponsors and partners, the platform provides an opportunity to place highly effective
targeted advertising in the block of personal recommendations, with the ability to specify a certain
course, desired field of activity or region.
In the future, research will be targeted towards collecting and analyzing real statistics of digital
transformation of business structures for a particular region and the development of specific
recommendations (road maps) to increase the level of the index. The introduction of appropriate
roadmaps will help increase the index of digital transformation and increase the competitiveness of
business. The results of this research will help to create an appropriate eco-culture for determining
digital maturity, which will create healthy competition between respondents to compare the results of
the index. This research is also trying to help increase digital literacy of business owners and,
consequently, human resources of organizations.
4. References
[1] WEF Global Competitiveness Index, 2019. URL:
http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf.
[2] Networked Readiness Index, URL: https://en.wikipedia.org/wiki/Networked_Readiness_Index.
[3] WEF Technological Readiness Index, 2016. URL:
https://www.weforum.org/agenda/2016/07/what-is-networked-readiness-and-why-does-it-
matter/.
[4] The UN Global E-Government Development Index, 2019. URL:
https://digital.gov.ru/en/activity/statistic/rating/index-razvitiya-elektronnogo-
pravitelstva/#tabs|Compare:Place.
[5] Digital Economy and Society Index, URL: https://ec.europa.eu/digital-single-market/en/desi.
[6] ICT Development Index 2020: A proposal, 2020. URL: https://www.itu.int/en/ITU-
D/Statistics/Documents/events/egti2020/IDI2020_BackgroundDocument_20200903.pdf.
[7] The Web Index, URL: https://thewebindex.org/.
[8] Individuals using the Internet rate according to the International Telecommunication Union and
the World Bank (% of population), URL: https://data.worldbank.org/indicator/IT.NET.USER.ZS.
[9] Digital of Ukraine vision 2025, URL: https://businessviews.com.ua/ru/get_file/id/digital-
transformation-2019.pdf.
[10] I. Strutynska, H. Kozbur, L. Dmytrotsa, I. Bodnarchuk, O. Hlado, Small and Medium Business
Structures Clustering Method Based on Their Digital Maturity, International Scientific-Practical
Conference Problems of Infocommunications. Science and Technology. October 10–11, 2019,
pp. 278-282. URL: http://www.dut.edu.ua/uploads/n_7589_67076384.pdf (2019).
[11] I. Strutynska, L. Dmytrotsa, H. Kozbur, The main barriers and drivers of the digital
transformation of Ukraine business structures. In: Ermolayev, V., Mallet, F., Yakovyna, V.,
Mayr, H., and Spivakovsky, A. (Eds.): 15 th Int. Conference on ICT in Education, Research and
Industrial Applica-tions. Integration, Harmonization and Knowledge Transfer. Vol. I, Ukraine,
June 12-15, 2019, CEURWS.org, Volume 2387, pp.50-64 (2019).
[12] Google Forms, URL: https://www.google.com/intl/uk_ua/forms.
[13] J. Zhou, Y. Zhou, B. Wang, J. Zang, Human–Cyber–Physical Systems (HCPSs) in the Context of
New-Generation Intelligent Manufacturing, Engineering, Volume 5, Issue 4, 2019, pp. 624-636.
https://doi.org/10.1016/j.eng.2019.07.015.
[14] F. Tonelli, M. Demartini, M. Pacella, R. Lala, Cyber-physical systems (CPS) in supply chain
management: from foundations to practical implementation, Procedia CIRP, Volume 99, 2021,
pp. 598-603. https://doi.org/10.1016/j.procir.2021.03.080.
[15] I. Strutynska, L. Dmytrotsa, H. Kozbur, R. Zozulya, O. Hlado, Certificate of copyright for the
computer program "Digital Transformation of Business Structures" Ministry of Economic
Development, Trade and Agriculture of Ukraine. Certificate of copyright registration for the
work № 98279 dated 23.06.2020.