ECONOMIC BELEFITS OF AGRICULTURAL SECTOR DIGITAL TRANSFORMATION: ANALYSIS OF TOOLS AND PRACTICES
Abstract
This article explores the economic advantages of digital transformation in agricultural enterprises through the lens of financial and operational performance indicators. As agriculture faces increasing pressure from climate change, market volatility, and resource scarcity, the integration of digital technologies – such as artificial intelligence (AI), big data analytics, Internet of Things (IoT), and automation – has become a strategic imperative for enhancing productivity, efficiency, and competitiveness. The study analyzes how digital tools impact key economic metrics, including profitability, cost structure, asset utilization, and financial stability. Empirical data from Ukrainian and international agricultural enterprises demonstrate that digitalization leads to measurable improvements in return on assets (ROA), operating margins, and working capital management. Furthermore, digital platforms enable faster and more informed decision-making, reduce operational risks, and open access to new markets. In addition to economic analysis, the article adopts a multidimensional approach to digital transformation, examining technological, institutional, social, managerial, and environmental aspects. It highlights the role of government policy, digital literacy, and infrastructure in facilitating adoption, and emphasizes the importance of inclusive and sustainable innovation. The SWOT analysis of key technologies provides a strategic framework for evaluating their strengths, weaknesses, opportunities, and threats. The article also identifies barriers to digital adoption, such as limited investment capacity, low digital literacy among staff, and insufficient government support. Based on these findings, the paper provides practical recommendations for agricultural enterprises to implement digital solutions effectively, optimize resource allocation, and build resilient business models. This research contributes to the broader understanding of digital economics in agriculture and offers a framework for evaluating the financial and strategic impact of technological innovation in the sector.
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