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Рік заснування видання - 2014

DIGITIZATION OF BUSINESS PROCESSES IN THE TRADE ENTERPRISE

21.11.2024 18:40

[1. Economic sciences]

Author: Tonh Le Diana, 1st year master’s student, educational program “Trade managment”, STATE UNIVERSITY OF TRADE AND ECONOMICS /KYIV NATIONAL UNIVERSITY OF TRADE AND ECONOMICS


In the digital age, the digitization of business processes has become one of the main trends in the development of trade. In trade enterprises, this process has become a key tool for enhancing competitiveness, optimizing operational activities, and quickly responding to changes in market conditions. Digitization refers to the process of converting physical or analog information into a digital format, which allows businesses to automate processes, improve data accessibility, and facilitate communication. For trade enterprises, digitization involves integrating digital technologies into various aspects of their operations: sales, inventory management, customer service, logistics, and marketing. This includes the use of software solutions, cloud services, e-commerce, digital marketing tools, and data analytics to improve business efficiency and make informed decisions.

One of the main aspects of digitization is the development of e-commerce platforms, which allow trade enterprises to expand their markets by offering products and services online. This provides a convenient shopping experience for customers and also allows businesses to track consumer behavior and optimize marketing strategies. Automating order processing, updating stock levels, and customer communication reduces the need for manual intervention and lowers costs. An important part of digitization is digital inventory management, which allows real-time tracking of stock levels, automating ordering processes, and using predictive analytics to optimize warehouse operations. This enables businesses to respond more effectively to demand changes and reduce storage costs [1, p. 20].

Another key component is Customer Relationship Management (CRM) systems, which help businesses collect, analyze, and utilize customer data. CRM systems allow businesses to better understand consumer preferences, tailor marketing campaigns, and provide personalized services. This enhances customer satisfaction and improves customer retention rates. Digitization also impacts supply chains by increasing transparency and efficiency. Technologies such as the Internet of Things (IoT), blockchain, and artificial intelligence (AI) help automate logistics processes, track the movement of goods in real time, and improve collaboration with suppliers, reducing risks and speeding up delivery times.

One of the most important advantages of digitization is the ability to analyze large volumes of data using business analytics tools. This allows businesses to gain valuable insights, identify trends, and make informed decisions. Predictive analytics helps businesses forecast demand, optimize pricing strategies, and improve product offerings, positively impacting financial performance. The impact of digitization on trade enterprises is evident in increased operational efficiency, improved customer experience, informed decision-making, and optimized supply chain management. Automating routine tasks reduces labor costs and minimizes errors, ensuring faster order fulfillment. Digital tools such as mobile apps and online payment systems provide convenient options for customers, improving their experience and enhancing brand loyalty [2, p. 26].

However, digitization also presents several challenges. Firstly, the high cost of implementing digital technologies is a significant barrier, especially for small and medium-sized enterprises. Investments in software, hardware, and employee training require substantial financial resources. Secondly, cybersecurity threats and data protection issues pose serious risks for trade enterprises operating in the digital space. Companies must implement robust security measures to protect customer data and comply with regulations such as GDPR. A third challenge is organizational resistance to change. Many employees may be reluctant to adopt new technologies due to a lack of digital skills or fear of job displacement. Successful digitization requires the implementation of effective change management strategies, employee training, and fostering a culture of innovation [3, p. 50].

Despite these challenges, digitization offers significant growth opportunities for trade enterprises. Expanding into new markets through e-commerce and digital marketing allows businesses to attract new customers and increase sales. Using CRM tools, loyalty programs, and personalized marketing helps build strong customer relationships and enhance brand loyalty. Furthermore, digitization contributes to sustainable business practices, such as reducing paper use and optimizing logistics to lower carbon emissions, positively impacting a company’s reputation.

In conclusion, the digitization of business processes in trade enterprises is a necessary condition for their survival and development in today’s competitive environment. The implementation of digital technologies allows businesses to streamline operations, improve customer service, and make informed decisions. However, achieving success requires careful planning, investment in technology, and overcoming challenges such as high costs and organizational resistance. Ultimately, successful digitization leads to greater efficiency, increased profitability, and sustainable development for trade enterprises.

REFERENCES

1. Alter. Work system theory: Overview of core concepts, extensions, and challenges for the future. Journal of the Association for Information Systems. 2013. 14(2). p.72.

2. Eisenhardt KM, Graebner ME. Theory building from cases: Opportunities and challenges. Academy of Management Journal 2007. 50(1). P. 25–32

3. Wolfswinkel JF, Furtmueller E, Wilderom CPM (2013) Using grounded theory as a method for rigorously reviewing literature. European Journal of Information Systems. 2013. 22(1). P.45–55.

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Науковий керівник:  Іванова Олена Миколаївна, PhD, (економічні науки), доцент

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