Problems and solutions in digitalization of industrial enterprises in
the economy
Farmonova Maftuna
1
, Karimova Aziza
1
1
Tashkent University of Applied Sciences, Gavhar Str. 1, Tashkent 100149, Uzbekistan
https://doi.org/10.5281/zenodo.10467839
Keywords: Digitization; Industry 4.0; Digital transformation; Integration system.
Abstract: Digital economy is a new direction in the world economy. Economically developed countries have made
significant progress in this direction, while others are advancing in this direction. Digitization of all sectors
of the economy is the main condition for integration into the world community, gaining a place in the
world market, economic development, and creating conveniences for the population. There have been
four industrial revolutions in human history. Each revolution is related to the invention of innovative
technologies of that time and its introduction to human activity. As a result, new sectors of the economy
appeared, and the state's economic situation improved. At the heart of the fourth industrial revolution were
smart factories. In such enterprises, production processes of any complexity can be implemented,
minimizing the risk of downtime and ensuring the efficient creation of "smart" products. In this article,
from the point of view of digitization of industrial companies, the relations between these sectors and the
role of digital transformation in the development of industry, problems in this sector and ways to
overcome them are studied.
1.INTRODUCTION
According to the results of analyzes conducted
by reputable international organizations, the digital
economy will increase the gross domestic product by
at least 30%, thus ending the informal economy. The
world leader in terms of the share of the digital
economy in the gross domestic product is Great
Britain - 12.4%. According to a study by analysts of
the International Data Corporation published in 2016,
the global spending of digital transformation
technologies will grow by 16.8% annually and reach
2.1 trillion by 2019. is USD. According to the
forecasts of the Accenture consulting company, the
use of digital technologies in 2020 will be 1.36
trillion. US dollars or 2.3% of GDP in the gross
domestic product of dozens of the world's leading
economies. The GDP of developed countries will
grow by 1.8% due to the "digital economy", and the
GDP of developing countries will grow by 3.4%. [1]
Digital economy makes it possible to increase the
efficiency of large industrial facilities, increase
production, ensure transparency of activity, and
reduce product costs. Digital industrialization has
become the main driving force in the development of
the economy of countries today. In 2019, the
digitization of industry accounted for 84.3% of the
world's digital economy and 35% of the world's GDP.
In developed countries, the digitalization of industry
accounted for 86.3% of the digital economy. In
developing countries, this share was 78.6 percent.
The most powerful representatives of developed
countries in the field of communication and software
are the USA, Germany, Great Britain, South Korea,
Russia, and Japan, which were the first countries to
engage in e-commerce and advanced manufacturing.
is included. Digital industrialization can be divided
into sectors and divided into primary, secondary and
tertiary categories. According to the type of activity,
we can divide them into agriculture, production and
service sectors
.
[1]
2. Materials and Methods
Digital economy makes it possible to increase
the efficiency of large industrial facilities, increase
production, ensure transparency of activity, and
reduce product costs. Digital industrialization has
become the main driving force in the development of
the economy of countries today. In 2019, the
digitization of industry accounted for 84.3% of the
world's digital economy and 35% of the world's GDP.
In developed countries, the digitalization of industry
accounted for 86.3% of the digital economy. In
developing countries, this share was 78.6 percent.
The most powerful representatives of developed
countries in the field of communication and software
are the USA, Germany, Great Britain, South Korea,
Russia, and Japan, which were the first countries to
engage in e-commerce and advanced manufacturing.
is included. Digital industrialization can be divided
into sectors and divided into primary, secondary and
tertiary categories. According to the type of activity,
we can divide them into agriculture, production and
service sectors. Globally, digital transformation in the
service sector is occurring at a faster pace than the
other
two
sectors
(Figure1).
It mainly depends
on the specific
characteristics of each sector. Digital transformation
in the service sector is easier to implement than in
manufacturing, because the service sector has lower
fixed costs and higher transaction costs. There are
more obstacles to digital transformation in
agriculture, because production in this sector is highly
dependent on the influence of environmental and
natural factors.
Source: China Academy of Information and
Communication Technology
Figure 1. Digital transformation in economic sectors
In 2017, the role of the digital economy in
agriculture in %.
In 2018, the role of the digital economy in
agriculture in %.
The share of the digital economy in the
industry in 2017 in %
The share of the digital economy in the
industry in 2018 in %
In 2017, the role of the digital economy in
service provision is calculated in %
In 2018, the role of the digital economy in
service provision is calculated in %
There are two big problems in the field of
industrial
digitization:
telecommunication
infrastructure and lack of specialists. This can
seriously hinder the transformation of the industrial
economy of our Republic into a digital industrial
economy and, as a result, slow down the digital
economy. On the creation of additional conditions for
the development of the digital economy, as well as
five priority measures for the development of the
Republic of Uzbekistan in 2017-2021, measures for
the development of the digital economy in the
Republic of Uzbekistan" dated July 3, 2018 PQ - No.
3832 Decree. • Resolution of the President of the
Republic of Uzbekistan "On measures to further
modernize the digital infrastructure for the
development of the digital economy" dated
November 21, 2018 PQ - 4022. • PQ-3832 of the
President of the Republic of Uzbekistan dated
07.03.03 "On measures to develop the digital
economy in the Republic of Uzbekistan" and
blockchain technologies with practical skills using
modern information and communication technologies
In accordance with the objectives of the Strategy of
Actions in the direction of training qualified
personnel in their development and use, the following
was adopted: [2]
• It has become clear that without the training
of skilled personnel to succeed in transforming a
traditional industrial economy into a digital industrial
economy, it is problematic. Therefore, at the initiative
of the President of the Republic of Uzbekistan Sh.M.
On the basis of Mirziyoyev's Decision No. PQ-3832
of July 3, 2018, a faculty of digital economy was
opened at the Tashkent State University of
Economics for the preparation of bachelors, and a
master's degree was opened for the training of
qualified personnel in the field of digital economy on
the basis of the faculty of economics and business of
the Samarkand State University.
The Fourth Industrial Revolution will
transform society and the economy by merging the
physical, digital and biological worlds, resulting in a
number of intelligent systems with artificial
intelligence capable of making fundamental changes
in society. The Fourth Industrial Revolution based on
smart factories. In such enterprises, production
processes of any complexity can be implemented,
minimizing the risk of downtime and ensuring the
efficient creation of "smart" products. One of the
important components of these areas is wireless
networks, which cover all processes, machines,
resources and workers, and also allow the exchange
of information between companies. The conditional
model of the future intellectual enterprise is presented
in Figure 2 [3]
Figure 2. Conditional model of a smart enterprise
All objects included in the public network can
exchange data, initiate certain actions and control
each other. It simplifies the modernization of
production processes, design, supply chain, material
use and life cycle management. In addition, Industry
4.0 provides an opportunity to improve the quality,
flexibility and reliability of the entire enterprise. The
basic technological concept of forming the basis of
the fourth industrial revolution and obtaining profit
for enterprises - the main nine components of a high-
tech product manufacturer are presented in Figure 3.
Figure 3.The main components of industry 4
• Modeling;
• Big Data;
•
Artificial intelligence, mechanical
engineering and robotics;
• Integration system;
• Internet of Things;
• Cyber security;
• Cloud computing;
• 3D printing (additional technology);
• Virtual system.
Digital modeling Currently, 3D modeling of
objects, materials and production processes is widely
used at the stage of new product development. In the
future, this technology will be widely used in the
production process, which will allow to reflect the
physical world in real time from the relevant data in
the form of a virtual model that includes equipment,
products in production and employees of the
enterprise. Big Data (Big Data and Business
Intelligence) Analysis based on working with a large
amount of data recently presented in the field of
industrial production allows to optimize product
quality, save energy and increase the efficiency of
equipment.
Artificial
intelligence,
mechanical
engineering and robotics Industrial robots have long
been used to perform complex tasks in large
enterprises in various industries. But today's robots
are becoming more independent, flexible and
controllable than ever before.[4]
Conclusions: The future development of the
digital economy will depend on the success of a
number of advanced technologies. Five such
technologies can be distinguished: • 5G -
communication; • 3D - printing; • blockchain; •
artificial intelligence (AI); • virtual reality. The listed
technologies are one of the most important directions
of development defined in the strategic documents of
developed countries. The indicated technologies are
at the stage of rapid development, they are improving
year by year. Each technology can fundamentally
affect a number of traditional industries of the
economy and business in general. Let's consider the
perspectives of selected advanced technologies. 5G -
communication - (from English. fifth generation).
The fifth generation mobile communication standard
(5G) is a new stage in the development of technology,
which is designed to expand Internet access through
radio access networks.
According to the research of the analysts of
"ERGO Research and Advisory" consulting service,
the main problem preventing the introduction of ICT
in economic sectors until 2020 is the poor
telecommunication
infrastructure
and
communication. As a result of low investment, the
density of ICT base communication stations was low,
which caused the internet and mobile services to not
work well. As a result, the growth of the digital
economy and its critical infrastructure has reduced
industrial growth and created digital disruption.[5]
From January 1, 2020, the tariff for Internet
services for operators and providers was reduced by
34% compared to the same period last year, and
amounted to 56,000 soums per 1 Mbit/s. The number
of Internet service users increased from 22 million, of
which the number of mobile Internet users was 19
million. In 237 objects across the republic, trunk
telecommunication
networks
were
expanded,
telecommunication equipment was modernized, and
the transmission capacity of trunk telecommunication
networks was increased to 200 Gbit/s at the inter-
provincial level, and 40 Gbit/s at the inter-district
level.[6]
Digitization of economic sectors in our
country is the demand of today's era. In the table
below, we can see the changes in the number of
enterprises and organizations connected to the
Internet in the regions of the republic over the years.
(Table 1)[11]
In Surkhandarya region, the number of
enterprises and organizations connected to the
Internet was 17.7% in 2015, in 2018 this figure was
16.9%, and by 2020 it was 8.5%. The number of
enterprises and organizations connected to the
Internet in Tashkent is 37.7% in 2015, 44.5% in 2017,
and 30.7% in 2020. There are changes in this area, but
not enough.
Table 1.
The share of enterprises and organizations with
access to the Internet, at the end of the year, as a
percentage
Territories
2015
201
6
2017
2018
2019
2020
Republic
of
Uzbekista
n
21,6
25,9
27,2
27,5
26,2
21,1
Republic
of
Karakalpa
kistan
22,2
23,9
25,0
24,9
24,7
19,7
Andijan
11,0
12,8
18,4
18,1
21,5
16,1
Bukhara
26,1
30,7
30,0
29,7
27,5
21,7
Jizzakh
19,2
23,0
20,8
19,2
19,2
15,1
Kashkadar
ya
13,1
20,1
20,5
20,1
18,7
14,9
Navoi
30,7
34,1
33,0
42,5
35,3
31,9
Namanga
n
12,3
17,9
19,0
23,2
23,3
20,0
Samarkan
d
16,2
21,7
22,3
22,3
20,8
17,9
Surkhanda
rya
17,7
17,9
17,2
16,9
13,3
8,5
Syrdarya
17,7
19,6
20,2
19,8
19,7
19,1
Tashkent
18,9
24,2
25,4
25,8
25,4
19,4
Ferghana
17,4
21,8
20,6
20,8
19,2
16,5
Khorezm
20,5
23,8
25,5
27,2
27,4
24,9
Tashkent
city
37,7
42,8
44,5
43,2
39,5
30,7
Digital transformation is the process of using
digital technologies to improve existing business
models and increase operational efficiency through it.
This process will lead to full-fledged digital
transformation of the entire economy, considering the
implementation of innovative technologies on a
permanent basis. Digital transformation is a long-
term process with five stages: pilot, local expansion,
replication, operations management, optimization
and innovation. More than 70 percent of all
enterprises that have started digital transformation are
currently in the "local expansion" and "replication"
phase, while only 3.9 percent of enterprises have
reached the "optimization and innovation" phase. It
will take at least 10 years to achieve full digitization
in large enterprises. The implementation of the digital
transformation strategy required changes in five
areas:
1. Awareness: How we work is determined by
two factors: business and technology. We need to
focus on business needs, sense those needs in real-
time, and take appropriate action accordingly to
create value for our customers and users.
2. Culture: creating platforms and sharing
resources is a key path to digital transformation, so
adapting the culture to support change is critical.
3. Organization: Integrated teams must bring
together business and IT staff to implement
digitization programs based on a single digital
platform.
4. Methodology: in order to lay a solid
foundation on the way to digitalization, it is necessary
to move to digital objects, processes and rules, and to
continue enriching and alternativeizing options for
use, solutions.
5.
Model:
business,
operational
and
management models need to be adapted to
digitization goals.
Discussion:
As Huawei advances its digital
transformation strategy and works to create a fully
networked, intelligent Huawei, it focuses on three key
areas. Success in this area leads to greater customer
satisfaction and increased company efficiency and
productivity. The company explains its strategy as
follows:
• Focus on users and communicate their
experience to six types of users: customers,
consumers, partners, developers, suppliers and
employees.
• Business focus – we empower business and
IT departments by developing applications and tools
that can support complex business architectures
(spanning business groups, functional units and
cross-departmental interactions) in over 200 different
scenarios we help to combine.
• We are using the Intelligent Twins
architecture to build an internal digital platform.
Huawei cloud services serve as the basis of this
platform based on innovative software and hardware
products.
The
platform
supports
digital
transformation by expanding the overall capabilities
of enterprises and organizations and by flexibly using
and sharing resources in different scenarios.
All digital transformation programs should
have the same goal: to support the success of
enterprises' core business by providing better
experiences, higher efficiency and new models for
business growth.
In terms of user experience, Huawei's
intelligent customer support services have achieved
excellent results. Our system can process up to 4,000
customer calls every minute and handle more than 6
million user inquiries every month. 92.8 percent of
requests are processed by robots. Huawei can also
manage contracts intelligently. The systems help you
draft alternative contracts in a minute, analyze more
than 90 types of contract clauses for more than 140
countries worldwide, and provide intelligent
reminders about more than 50,000 commercial risks.
says Huawei. This is one of the practical examples of
industrial digitization that can be used and
implemented on a large scale.
Integrating multiple enterprises into a
common network is associated with Industry 4.0
applications such as network manufacturing, self-
organizing flexible logistics, and a unified machine-
building client. With the implementation of these
measures, it will be possible to solve problems related
to financing, development, reliability, responsibility
and protection of IP addresses. Detailed monitoring
and documentation of all stages of business processes
is provided in real time to control compliance with
contractual and regulatory legal conditions. In the
provision of individual services, it is also required to
comply with the guaranteed and licensed service
period and to ensure optimal working conditions for
attracting new partners, especially small and medium-
sized businesses. These features of new business
models cause unpredictable changes in the world
economy and change the market at high speed. New
technologies can have a devastating impact on legal
issues (such as important corporate information and
its protection, liability, trade restrictions, etc.). In
addition, the protection of network nodes and general
security will also play an important role in Industry
4.0, which will not be enough to provide only at the
level of individual components.
In order to implement Industry 4.0 step by
step, it is necessary to take the following measures: •
In order to work on the basis of real-time CPS -
platforms, it is necessary to provide affordable
services in the network infrastructure. Strengthening
them with international standards and policies both
nationally and globally. • Outdated systems should be
replaced with new ones designed to work and serve
in real time. • Creating fast-growing new business
models such as the Internet of Things. • Involvement
of employees from the beginning of modernization
processes, improving their skills and technical
development. • In the transition to Industry 4.0, it
must work closely with factory supply systems,
which have a longer innovation cycle than ICT
networks.
In conclusion
,
the development of the
digital industry is one of the main tools that serve to
build an economically-socially, politically strong,
democratic state in which the laws of the market
economy are fully applicable, as well as to improve
the business environment in the country, to facilitate
the business activity and simplify its management,
and to realize new innovative ideas. is of particular
importance.
Also,
the
process
of
digital
transformation of the service sector in the world is
rapidly developing, on the one hand, the role and
importance of the public service sector is increasing,
which has a significant impact on the quality of life
of the population. On the other hand, digitalization of
certain sectors and activities aimed at providing
services to the population affects the loyalty of
consumers, saves time, fully satisfies their needs, that
is, helps to increase the quality of life of the
population. Further development of the digital
transformation of the service sector requires
clarification of the methodology for assessing the
impact of this process on the quality of life of the
population.
REFERENCES
[1]
Decree No. PF-6079 of the President of the
Republic of Uzbekistan dated October 5, 2020 "On
approval of the Digital Uzbekistan - 2030 strategy and
measures for its effective implementation"
[2]
International Scientific And Practical Online
Conference On Human Resources: Problems,
Solution, Perspectives. February 11-12, 2021
IMPROVING THE LIVING STANDARDS OF THE
POPULATION BY MEASURING THE DIGITAL
TRANSFORMATION IN SERVICES Mansurova
Nargiza Shamsidinovna Assistant of the Department
of
Human
Resources
Management,
SamSU,Abduvohidova Mohinur Akmalovna SamSU
student of the faculty "Human Resource Management"
[3]
R.H. Ayupov, G.R. Boltaboeva Raqamli Iqtisodiyot
Asoslari Darslik Toshkent – 2020
[4]
Samarqand Davlat Universiteti G‘.M. Porsaev, B.Sh.
Safarov, D.Q. Usmanova Raqamli Iqtisodiyot Asoslari
(Darslik) TOSHKENT – 2020
[5]
Advantages, Disadvantages And Situation Of The
Digital Economy In Uzbekistan Pulatov Ghiyos
Gofurjonovich. Son OF Ganiyev Sanjarbek Fazliddin,
Tatu Fergana BRANCH ASSISTANT. Student OF
Tatu Fergana Branchconference Paper ·
[6]
The Role Of Information Technologies In The
Development Of The Digital Economy Mulaydinov
Farkhod Murotivich (Head OF THE Department OF
Business, Ko'kan University)
[7]
