Digitalization of Economics and New Risks in the Leading Industries of FEC

Author Name(s): Vladimir F. Ukolov, Valentin Y. Afanasyev, Victor B. Vorontsov, Oksana V. Baikova, Olga I. Bolshakova
Author Email: ukolovdom@mail.ru

Abstract

This study is due to the need to accelerate the development of digitalization which will increase the competitiveness of corporations in the global energy markets. So far, the issues of digitalization of the economies of many countries, including Russia, are at the stage of accumulating of data and ensuring free access to them, which increases the possibilities of developing its areas, for example, digital power industry [1]. The choice of power industry as a priority object of digitalization in Russia is also due to the fact that in its GDP this industry occupies more than 20% [2]. Meanwhile, this must be done in the way that none of the sectors of the fuel and energy complex (FEC), as part of the system, would begin to dominate the others, eliminating the risks of its “collapse” as a single inter-industry complex of the country [3]. In other countries with a developed fuel and energy complex, the mining and manufacturing industries also lack the expected dynamics of the digital economy. Moreover, in some places there has even been a certain lag in the resolution of this issue, in comparison with the planned progress. Global energy companies, especially in the oil and gas sector, which are lagging behind in digitalization, may begin to lose competitiveness if they do not implement high-tech solutions that allow the fuel and energy sector to enter new markets for integrated systems and services of intellectual energy [4]. The purpose of this study is to develop a series of recommendations for the accelerated development of the digital economy in the fuel and energy sector, aimed at improving the competitiveness of global companies and increasing economic growth rates.

Introduction

The active development of digitalization, due to the technological breakthrough of civilization to virtual technologies of doing business and using new communications opportunities in society, requires the solution of a number of emerging problems. Many of them are being solved successfully, especially in those countries that have become the source of digitalization ideas. However, they and other countries have not yet created a full-fledged digital economy that guarantees success as a result of the use of its inherent, new relations. Until now, problems such as the justification of conditions conducive to the construction of a digital economy management model for the fuel and energy sector have not been adequately addressed. Based on the adoption and implementation of decisions in the context of big data, obtained in real time and accessible to all participants in the process. It is unclear how much the use of this model of management accelerates relations between people, makes their work more productive, and management effective, reduces the cost of value added, improves the quality of the product and the competitiveness of companies. It has not yet been proved whether it is possible for the spatial development of the digital economy to create uniform principles for all participants and the standards for its construction. There is no clear answer to the question in which sectors the development of the digital economy should dominate and whether this will lead to a violation of the integrity and disruptions in the functioning of the entire economic system. Will the system support of such industries from the state be useful and how effective it will be? It is necessary to deal with the issues of protection against the risks of the digital economy, and personnel training in the conditions of total digitalization. Solving these problems is an important task for both individual states and corporations, and for the world community as a whole.

Conclusion

Experts and managers of fuel and energy companies understand that without a digital economy, the use of digital technologies cannot compete successfully in the domestic and foreign markets. The implementation of programs for the digitization of the fuel and energy complex is going well. However, to speed up the process of creating a digital economy and improve its quality parameters, effective solutions must be found in the field of staffing, state support and government regulation, unification of common principles and standards of digitalization. The practical significance of the study lies in the use of article materials in the activities of organizations of the fuel and energy complex in developing and using recommendations for the development of the digital economy. The materials of this article may be useful in the educational process of educational institutions.

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