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<article xmlns:xlink="http://www.w3.org/1999/xlink">
  <front>
    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>Ensuring the sustainable development of the aviation enterprise in the context of forming innovative potential using digital technologies</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>Serhii Smerichevskyi</string-name>
          <email>serhii.smerichevskyi@npp.nau.edu.ua</email>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Zarina Poberezhna</string-name>
          <email>zarina_www@ukr.net</email>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Oleksii Mykhalchenko</string-name>
          <email>oleksii_mykhalchenko@npp.nau.edu.ua</email>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Yuliia Petrova</string-name>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Vitalii Smilyanets</string-name>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <aff id="aff0">
          <label>0</label>
          <institution>National Aviation University</institution>
          ,
          <addr-line>Liubomyra Huzara Ave., 1, Kyiv, 03058</addr-line>
          ,
          <country country="UA">Ukraine</country>
        </aff>
      </contrib-group>
      <abstract>
        <p>The paper research issues related to the description of innovative activities of aviation enterprises to ensure the sustainable development in the context with the use of intelligence technologies. We proved that the innovative activities are considered as a set of resources, tools and technologies, market opportunities for effective innovative activities, securing a competitive position on the market, implementing innovations. Digital technologies contribute to the formation of the innovative potential of the aviation enterprises, and are directly related to the sustainable development of its functioning, in particular with respect to aspects such as safety, decreasing the drawbacks and impact on the environment, and the introduction of modern Industry 4.0 technologies. The paper deals with new methodology of innovation potential level estimation for the aviation enterprise taking into account integral indicators and components of innovation potential, as well as choosing a strategy for further development depending on the existing level of innovation potential. The obtained results show the importance of increasing the level of innovative potential of aviation enterprises, which will ensure the sustainable development of its functioning. The considered methodology of innovative potential level estimation takes into account the ability of aviation enterprises to generate innovative ideas and form the innovative value of the offer on the air transportation market, to ensure the process of developing an innovative offer, to effectively implement innovative offers on the air transportation market.</p>
      </abstract>
      <kwd-group>
        <kwd>eol&gt;aviation enterprise</kwd>
        <kwd>innovative potential</kwd>
        <kwd>digital technologies</kwd>
        <kwd>sustainable development</kwd>
        <kwd>information technologies1</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>1. Introduction</title>
      <p>The current market conditions lead enterprises to the widespread implementation of the
concept of sustainable development using digital technologies. The use of digital
technologies encourages the emergence of new business models, forming a modern view
of the functioning of enterprises.</p>
      <p>The aviation market is no exception, as it tends to globalize and integrate, and is one of
the backbone elements of the global economy, providing fast and comfortable
transportation of passengers and various types of cargo. Increased integration of the
global economy and the need for transport interaction between certain regions has led to
significant economic growth in international air transportation. To operate successfully,
aviation enterprises are forced to apply new management methods using innovative
digital technologies. The process of digitalization of an aviation enterprise contributes to
the formation of its innovative potential, which will improve the quality of service
provided to passengers, develop customer focus, which will subsequently increase its
competitiveness in general and ensure sustainable development of its operations.</p>
      <p>The level of competition in the aviation sector forces aviation enterprises to constantly
adapt their innovative value propositions to the needs of customers, improve them,
monitor changes in customer demands, market conditions, current and potential
situations, and be able to effectively manage dynamic decision-making processes in
response to such changes. For aviation companies, the formation of innovation potential is
the main prerequisite for effective market functioning, and determines their market
position and competitive status.</p>
      <p>Digital technologies contribute to the formation of the innovative potential of an
aviation enterprise and are directly related to the sustainable development of its
operation, in particular with regard to such aspects as safety, minimization of negative
impact on the environment, and the introduction of modern Industry 4.0 technologies.
Thus, the formation of the innovative potential of aviation enterprises using digital
technologies is based on a systematic description of the impact of internal (production,
financial, investment, corporate, sales, scientific and technological) and external
(institutional, socio-cultural, information and digital, resource, sectoral and market)
factors. This makes it possible to formulate the main directions and targets for intensifying
the development of the innovative potential of an aviation enterprise in order to ensure a
sustainable environment for its operation.</p>
    </sec>
    <sec id="sec-2">
      <title>2. State of the art for the problem of research</title>
      <p>In recent decades, the air transportation market has been actively involved in the
development of innovation potential in various areas - from innovations in services,
pricing to innovations that meet the paradigm of sustainable development –
environmental and safety technologies. Periods of macroeconomic instability,
transformation of markets and market factors, development of scientific and technological
progress, and the emergence of new digital technologies contribute to the search for
innovative solutions for aviation enterprises that can ensure their adaptation to a
changing environment.</p>
      <p>Digital transformation differs from traditional forms of strategic change in that digital
technologies accelerate the pace of change in the context of ensuring a sustainable
development for the operation of aviation enterprises. It should be noted that sustainable
development is aimed at solving environmental, cultural, and socio-economic problems in
the long term.</p>
      <p>
        Scientific research devoted to the theoretical and methodological foundations of the
development of the innovative potential of the enterprise is considered by domestic and
foreign scientists. Thus, in the paper [
        <xref ref-type="bibr" rid="ref1">1</xref>
        ], the author describes the innovation potential as a
set of tangible and intangible assets involved in innovation activities. Such an
interpretation allows applying a cost approach to assessing the value of innovation
potential, but does not reveal its change under the influence of market factors and its
effectiveness. According to the authors of [
        <xref ref-type="bibr" rid="ref2">2</xref>
        ], the innovative potential of an enterprise
should be positioned as a strategic ability to realize the accumulated innovative resources.
      </p>
      <p>
        The problems of innovative development of aviation enterprises are highlighted in [
        <xref ref-type="bibr" rid="ref3">3</xref>
        ],
the author of which notes that the formation of the foundations of business modeling of
aviation enterprises will play the greatest role in the value proposition, customers and
customer focus, interaction with stakeholders, and profitability of the model.
      </p>
      <p>
        The paper [
        <xref ref-type="bibr" rid="ref4">4</xref>
        ] emphasizes the importance of using innovative technologies to ensure
the sustainability and competitiveness of transport enterprises.
      </p>
      <p>
        It is possible to note the importance of using innovations in the aviation industry,
which are presented in [
        <xref ref-type="bibr" rid="ref5">5</xref>
        ], namely, the system of indicators of efficiency and determinism
of innovations in the development processes of aviation enterprises has been improved.
      </p>
      <p>Despite the large number of scientific papers on the research and development of the
innovative potential of aviation enterprises, the issues of ensuring a sustainable
development of an aviation enterprise in the context of developing innovative potential
using digital technologies remain unaddressed, and this is of particular relevance.</p>
      <p>Therefore, this paper examines the task of ensuring the sustainable development of an
aviation enterprise using digital technologies. The main attention is paid to new
mathematical ratios for evaluating the innovative potential of the aviation enterprises and
choosing priority strategies.</p>
    </sec>
    <sec id="sec-3">
      <title>3. Materials and methods</title>
      <p>Aviation is a complex and dynamically developing industry with diverse stakeholders and
high stakes in flight safety. That is why aviation companies are always interested in
implementing innovations, making a significant contribution to the global development of
trade and the economy [6].</p>
      <p>That is why the development of the innovation potential of aviation enterprises can
contribute not only to their economic growth, but also to the overall economy of the
country and global international cooperation. Aviation enterprises that constantly
introduce new technologies and innovations will allow them to occupy one of the leading
places in the world in terms of innovative development in the future [7].</p>
      <p>The new goals for aviation enterprises in the implementation of innovations and which
in the future provide for the formation of innovative potential are:
–
–
–
personalized in-flight service and entertainment (marketing performance and
relevance indicators);
formation of customer value and convenience of service for the customer;
multifunctionality and differentiation of services [8, 9].</p>
      <p>It is worth noting that in order to form the innovative potential of aviation enterprises,
there is a need of factors identification that directly affect it:
–
–
–
–
–
–
financial and investment (the cost and availability of investments forms the cost of
innovation potential, as well as the profitability of innovative products in the
market);
regulatory and institutional (the legal framework for managing innovation
potential that meets the principles in the existing markets or states);
organizational and managerial (acting as mechanisms of innovative search,
diffusion of innovations, adaptation of the enterprise to new technologies);
factors of social responsibility (include social and environmental conditions and
requirements that project economic consequences and impacts of innovation
potential on the environment);
technical and technological;
information and digital (implementation of digital technologies to promote
innovation, as well as requests for strategic guidelines).</p>
      <p>Thus, the formation of the innovative potential of an aviation enterprise is considered
as a set of resources, tools and technologies, market opportunities for effective innovation,
ensuring a competitive position in the innovative market environment, implementing
innovations through market communications and forming consumer values of innovation.</p>
      <p>Based on modern approaches to typologizing the innovation potential of aviation
enterprises, the following types can be distinguished [10]:
1. Product innovation potential (opportunities to activate and modernize the
production and marketing systems of an aviation enterprise to create a new
product and form a new market niche).
2. Innovative potential of technological modernization (by means of technological
innovations, the aviation enterprise gains access to new scientific research or to
the creation of new technologies that are more resource efficient, energy efficient,
environmentally friendly, etc.).
3. Market innovation potential (the potential for developing and applying new sales
and supply methods, creating value and loyalty to services).
4. Innovative potential of the staff (corporate policy and branding of the aviation
enterprise, staff loyalty and image, communication with consumers at their
request).
5. Innovative potential of financing and resource supply (by means of branding, the
aviation enterprise increases its market value and investment attractiveness. This
allows attracting investment funds, if necessary, and implementing a financial
strategy).
6. Innovative potential of business processes (modernization of internal business
processes and communication with the external environment, implementation of
institutional regulators of market standards and innovative technologies for
organizing business processes).</p>
      <p>For aviation companies, the use of digital technologies plays a crucial role in the
following aspects:
–
–
–
digital applications are being actively implemented (for in-flight entertainment,
games and movies, as well as for passenger information and service);
there is a growing trend in the air transportation services industry to integrate
sensor and biosensor technologies, which makes it possible to offer more
interactive and attractive content for passengers during flights;
beacon technology upon arrival at the airport and updating important flight details.</p>
      <p>The main strategies for applying digital technologies in the formation of the innovative
potential of an aviation enterprise are the creation of data-driven platforms, such as data
management platforms (DMP), customer data platforms (CDP). The integration of digital
solutions with corporate systems and the provision of data to resource innovation is done
through CRM platforms. In general, commonly used tools of Data-driven marketing (based
on the analysis of big data about consumers and their online queries) and Database
marketing (creation, maintenance and use of consumer databases to maintain regular
contact with them) allow creating targeted content, communicating with customers, and
forming a marketing strategy based on analytical reports.</p>
      <p>In particular, data-driven marketing is necessary for understanding consumer
preferences and matching offers with their expectations. The advantages of using it are:
–
–
–
–
increased value for stakeholders;
increasing the level of customer satisfaction;
assessment of new market opportunities and market growth;
competitive advantages on a global scale by developing new products and services,
offering personalized solutions through big data marketing [11].</p>
      <p>Another type of marketing proposed to be used in the formation of innovation potential
is Growth-Hacking marketing, which has become widespread over the past decade and
focuses on identifying opportunities for company growth through new products.</p>
      <p>The stage of generating an innovative idea in Growth-Hacking marketing is aimed at
finding answers to customer requests. The following tools are used for this purpose:
–
–
warm maps to understand user interaction with the website;
competitor analysis for company positioning;
–</p>
      <p>conversion analysis from tests.</p>
      <p>Digital technologies also enable the aviation enterprise to shape the pricing and
revenue management process by analyzing and forecasting demand and costs for each
flight. This process results in actual price adjustments in real time – continuous pricing
that mitigates the risk of over – or underbooking, optimizes revenues, and generally
improves resource management and competitiveness. Companies can benefit from
offering new services or improving existing business processes. Business processes are
considered as activities aimed at creating a product [12].</p>
      <p>It has been established that business processes at an enterprise can increase the
efficiency and effectiveness of the enterprise by improving and implementing innovations
[13]. Technology has a significant impact on product development in terms of customer
feedback and market preferences [14].</p>
      <p>The introduction of digital technologies and the automation of business processes by
aviation enterprises increase material efficiency and provide better customer service, as
well as ensure the sustainable development of the aviation enterprise's operations. The
main types of digital technologies implemented by aviation enterprises are: Internet of
People (IoP), Internet of Services (IoS), Internet of Data (IoD), blockchain technologies,
and others.</p>
      <p>The use of digital technologies by aviation enterprises allows them to offer and develop
automation of their core and additional business processes.</p>
      <p>The main purpose of using the above digital technologies is to ensure both physical
processing of material and related information flow in a sustainable development of the
aviation enterprise.</p>
      <p>Intelligence technologies such as the Internet of Things (IoT), big data (BIG DATA),
artificial intelligence (AI), machine learning (ML), virtual and augmented reality (AR/VR),
and BIM technologies are also very important, and therefore, the overall planning and
design of an aviation enterprise's activities is a prerequisite for ensuring its sustainable
development in the market.</p>
      <p>Therefore, the use of these new digital technologies can be the cause of increase in the
aviation enterprise's profitability, improved customer service, equipment modernization,
as well as environmental friendliness, optimization of CO2 emissions, as well as internal
corporate management and search for energy efficiency.</p>
      <p>The increasing adoption and use of digital technologies to build innovation capacity is
one of the most important indicators of a sustainable development for an aviation
enterprise. In this regard, the use of Industry 4.0 principles will lead to the replacement of
manual labor and increase labor productivity, as well as unprecedented transparency of
production processes, which has a positive impact on the level of professionalism of the
staff.</p>
      <p>Blockchain technologies are being used to distribute data and improve the security of
passenger services. These technologies can be used to track sustainability-related
indicators of an aviation enterprise, such as resource allocation, and provide them to
stakeholders and decision makers. Blockchain also offers the creation of a digital contract
that is protected from deletion and tampering and maintains transparency for public
access [15].</p>
      <p>Thus, the use of digital technologies by aviation enterprises ensures their sustainable
development, both in the environmental and social dimensions. We can note the benefits
of introducing digital technologies in customer interaction to ensure a customer-centered
approach and improve the quality of service:
–
–
–
–
–
creating advantages for customer retention;
isolation from the influence of competitors;
reduction of costs for order placement/processing and personnel;
increased recommendations and reduced costs of attracting new customers;
development of customer loyalty.</p>
      <p>Thus, for aviation enterprises, the formation of an effective business model for
development is greatly influenced by four main components: value proposition, market
segmentation, value chain, and profit structure [16].</p>
      <p>The authors propose a methodology for assessing the level of innovative potential of
aviation enterprises, taking into account mandatory indicators and components of
innovative potential, as well as choosing a strategy for further development in accordance
with the level of existing innovative potential. We suggest evaluating the innovation
potential of an aviation enterprise by allocating its three components – production
potential ( ), market potential ( ), and managerial potential ( ).</p>
      <p>The level of innovation potential ( ) of an aviation enterprise is defined as the sum of
the integral indicators of its component potentials:</p>
      <p>=   +   +   .</p>
      <p>The methodology of innovation potential level estimation of the aviation enterprise
consists of the following stages:</p>
      <p>Stage 1. It is proposed to allocate components for each of the blocks of innovation
potential.</p>
      <p>1. Production potential ( ), which includes the following components:  1 – human
resources component;  2 – material and technical component;  3 – financial component;
 4 – resource component.</p>
      <p>2. Market potential ( ), which includes the following components:  1 – organizational
component;  2 – marketing component;  3 – investment component, level of investment;
 4 – market component, market share.</p>
      <p>3. Managerial potential (A), which includes the following components:  1 – information
component;  2 – innovation component, structure of innovations and digital technologies;
 3 – level of competitiveness of products (services);  4 – intellectual component.</p>
      <p>Stage 2. Comparison of the values of each indicator of the aviation enterprise for each
type of potential (production, market, management) with the benchmark:
 1 =  1 ;  2 =  2 ; … . ,   =   .</p>
      <p>1 =</p>
      <p>1 ;  2 =</p>
      <p>2 ; … . ,   =</p>
      <p>.</p>
      <p>where   ,   ,   are the indicators for each type of potential compared to its reference
value;   ,   ,   are the values of the indicator of potentials for each component  ;  
,</p>
      <p>, zmax are the values of the reference indicator.</p>
      <p>Stage 3. Calculation of the integral indicator by types of innovation potential of the
enterprise (production, market, management):

1

∑   2 ,
 =1

 = √

 = √

1

∑  2 ,
 =1
  = √

1

∑  2.
 =1
where   ,   ,   are the integral indicators of the components of innovation potential;   ,
  ,   are the indicators for each type of potential compared to its reference value;  is the
number of indicators.</p>
      <p>Stage 4. Calculating the level of innovation potential of the aviation enterprise and
determining its level depending on the obtained indicator. The scale for assessing the level
of innovation potential of the aviation enterprise and choosing the further optimal
development strategy is given in Table 1.</p>
      <p>Scale for assessing the level of innovation potential of an aviation enterprise and its
for   , the average value is 0.53, with a standard deviation of  
for   the mean value was 0.48, with a standard deviation of  
for   , the average value is 0.49, with a standard deviation of  

 = 0.15;</p>
      <p>= 0.17;
 = 0.16.</p>
      <p>Based on the industry average, we first calculated the confidence interval for the
average level of innovation potential:
 { ∈ [  . ;  
.</p>
    </sec>
    <sec id="sec-4">
      <title>4. Results and discussions</title>
      <p>Nineteen airlines were analyzed to assess the impact of market space on the formation of
innovation potential: Air Canada, AirAsia, Alaska Airlines, American Airlines, British
Airways, Cathay Pacific Airways, Delta Air Lines, EasyJet, Emirates, jetBlue Airways,
Korean Air, Lufthansa, Norwegian, Qantas Airways, Qatar Airways, Ryanair, Singapore
Airlines, United Airlines, and Wizz Air.</p>
      <p>The results of the calculations in Table 2 show that almost all airlines prioritize the
implementation of the innovation generator strategy, with the exception of Ryanair and
Norwegian, for which the imitator strategy is a priority.</p>
      <p>The obtained results give possibility to formulate strategic guidelines for further
development for each aviation enterprise, depending on the level of innovation potential
and strategy, which are presented in Table 3.</p>
      <sec id="sec-4-1">
        <title>Air Canada, Generator</title>
        <p>AirAsia, Alaska strategy –
Airlines, American maximize the
Airlines, British motivation for
Airways, Cathay innovation
Pacific Airways, generation in all
Delta Air Lines, blocks of the
Emirates, jetBlue functional model
Airways, Korean (S1)
Air, Lufthansa,
Qatar Airways,
Singapore
Airlines, United
Airlines, Wizz Air</p>
      </sec>
      <sec id="sec-4-2">
        <title>EasyJet and Qantas Airways</title>
      </sec>
      <sec id="sec-4-3">
        <title>Norwegian and Ryanair</title>
        <p>– develop a big data system for marketing
analysis and innovation planning capabilities;
– automation of information systems;
– development of digital technologies for
analyzing customer identity, their segmentation
to ensure accurate transmission of information
about requests for products and services;
– research and development of creative
innovative products and services to meet
customer needs;
– focus on customer segmentation;
– actively promoting knowledge exchange with
business partners developing innovations,
cooperation with international and government
agencies to develop the generation of
innovations.</p>
        <p>Innovator's – analysis of strengths, weaknesses,
strategy – creating opportunities, and threats to improve innovation
new knowledge, strategies;
increasing the – research and development of innovative
level of innovation products and services to meet customer needs;
activity, technical – focus on customer segmentation, increasing
capital of the sensitivity to customer needs through social
airline (S2) media platforms;
– strategic partnership with business partners
who develop innovations.</p>
        <p>Imitator strategy – – development of marketing strategies for
focused on imitation of innovations suitable for a changing
imitation of economic environment;
existing – analyzing competitors' innovative products
innovations in and services that better meet the needs and
case of acquisition preferences of consumers and acquiring relevant
of patents, patents and licenses for their implementation;
licenses (S3) – cooperation with business partners to assess
competitors and study the strategies and
technologies used by competitors;
– exchange and joint use of resources and
capabilities with business partners to enhance
competitiveness;
– establishing a service culture policy.</p>
        <p>The suggested methodology of innovation potential level estimation is based on
prioritizing the strategies: generator of innovations, innovator and imitator of innovations
in the air transportation market. The implementation of the methodical approach is based
on the formation of components of innovation potential and their evaluation.</p>
      </sec>
    </sec>
    <sec id="sec-5">
      <title>5. Conclusions</title>
      <p>The obtained results show the importance of increasing the level of innovation potential of
aviation enterprises, which will ensure the sustainable development of its functioning. In
today's global economy with a high level of competition, the introduction of digital
technologies in the management of innovation potential is becoming a decisive factor in
ensuring competitive advantage. The suggested methodology of innovation potential level
estimation takes into account the ability of aviation enterprises to generate innovative
ideas and form the innovative value of the offer in the air transportation market, ensure
the process of developing an innovative offer, and effectively implement innovative offers
in the air transportation market.</p>
      <p>Solving the problems of ensuring a sustainable development for the operation of an
aviation enterprise is impossible without the use of digital technologies in the context of
building innovation potential. The formation of the innovative potential of the aviation
enterprise provides more opportunities for making management decisions, increases the
efficiency of activities, and ensures the increase of staff intellectualization in achieving the
strategic sustainability of aviation enterprises. It is important to establish the nature and
objectives of the goals that will allow the management of the aviation enterprise to make
decisions on the introduction of innovations and digitalization of business processes
aimed at implementing programs for the development of its activities.
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