CHALLENGES OF BUSINESS MANAGEMENT TRANSFORMATION IN THE DIGITAL ECONOMY

Abstract

Davit Katamadze E-mail: qatamadze.davit@bsu.edu.ge Associated Professor,Batumi Shota Rustaveli state University Batumi, Georgia https://orcid.org/0000-0003-2992-9326 Abstract: In the conditions of globalization and globalization of the modern world economy, rapid changes in consumer tastes, business management environment, acceleration of digital transformation have brought revolutionary changes in the business activities of companies. New forms of digital interaction and information exchange pose various challenges to businesses and push them to adopt digital solutions. The ongoing hostilities between Russia and Ukraine in the Middle East and the resulting economic uncertainty have prompted companies to radically review the value chain in their business strategy. The purpose of the research is to determine the challenges in the transformation of business management in the conditions of digital business in order to avoid delays in the creation of the value chain of the business strategy of Georgian firms and to meet the rapidly changing needs of consumers. In the paper, the methods of gathering, grouping, analysis and synthesis of materials were used to reveal the problems of digital transformation of modern business management. The method of gathering materials was used to evaluate the possibility of transformation of business management, and the method of observation was used to reveal the potential of digital transformation of business management. On the basis of which the potential of digital transformation of business management was identified and the possibilities of its implementation were analyzed. As a result of the research, the factors hindering the digital transformation of business management were identified, the elimination of which will contribute to increasing the competitiveness of the companies operating in Georgia and raising the qualification level of the personnel employed in them. In order to eliminate the problems arising during the digital transformation of modern business management, we have developed recommendations, the consideration of which will significantly increase the level of competitiveness and management of companies operating in modern Georgia.. Keywords: Business management, digitization, business-wide transformation, creating more value in new business. JEL classification: M11: M15: IT, M2