THE IMPACT OF DIGITAL TRANSFORMATION ON THE COMPETITIVE ADVANTAGES OF ELECTRICAL ENGINEERING ENTERPRISES

Abstract

This article explores the impact of digital transformation on the competitive advantages of electrical engineering enterprises in the context of Industry 4.0. The purpose of the article is to provide a theoretical justification and practical analysis of the impact of digital transformation on the formation of competitive advantages of electrical engineering enterprises, taking into account the peculiarities of the industry's functioning in the conditions of a transformational economy. The study highlights the relevance of digitalization as a strategic tool for increasing productivity, reducing costs, enhancing flexibility, and improving customer-centricity in industrial operations. The author provides both theoretical substantiation and practical analysis of digital transformation processes within the electrical engineering sector, emphasizing its role in restructuring traditional business models and enabling adaptive, data-driven production systems. Using examples from international and Ukrainian industrial practices, the paper illustrates the tangible benefits of implementing ERP, MES, IoT, and predictive analytics technologies. Specific attention is given to industry-specific challenges such as limited funding, a shortage of IT personnel, and underdeveloped digital strategies, particularly in the context of the Ukrainian industrial landscape during economic and wartime instability. The article identifies the insufficient adaptation of digital transformation models to the needs of small and medium-sized enterprises and underscores the importance of aligning digital maturity with sustainable competitive positioning. Ultimately, the paper concludes that digital transformation is a critical driver of long-term competitiveness for electrical engineering enterprises. It enables companies to transition from cost-based competition to innovation-based growth models, supported by customer loyalty, smart product integration, and efficient digital ecosystems. The results offer practical implications for industrial strategy and further research in assessing digital readiness and ecological sustainability in the sector.