IMACT OF DIGITALIZATION ON KEY ASPECTS OF BUSINESS IN THE EUROPEAN UNION

Abstract

The article is devoted to topical issues of the transformation in the structure of doing business in the European Union as a result of changes caused by global digitalization. Article identified the role of digitalization as a key factor in economic transformation and sustainable development. The effectiveness of management and organizational processes in enterprises and other business entities was examined. The strategy of the European Union for digitalization and its impact on the stable development of member states, as well as statistics on e-commerce, were analyzed. Conclusions were drawn regarding indicators related to the research topic, in particular about the level of digitalization in EU countries. Main trends in transformation in member states were outlined against the backdrop of the digital development of the economic component of the national and general economies. Moreover, article analyzed main features and determinants of the impact on key aspects of business activity in the European Union. This research is aimed at revealing how widespread usage of online communication channels and innovative tools influence the way modern EU companies operate nowadays. Digital transformation already shifted management strategies towards the data-driven decision-making, therefore is important to define core aspects of business operations and customer interactions with the worldwide reorganization of the enterprise models and strategic priorities. Companies’ reliance on artificial intelligence and machine-driven algorithms grows daily which leads to the extension of the digitalization far beyond the adoption of new technological tools. The innovative technologies rapidly create plenty of new opportunities for entering international markets and expanding customer bases which might be seen both as a great way for the development and growth or as a potential hazard that should be evaluated carefully. For many countries of the European Union the rise of the digitalization significantly transformed the way business activity is conducted therefore the examination of the organization models and competitive dynamics is a key for the further creation of the network-based enterprise ecosystems and general adaptation to the current conditions of the digital transformation.