Digital strategizing of industrial systems based on sustainable eco-innovation and circular business models in the context of the transition to Industry 5.0

Abstract

Aim. The presented study aims to develop a theoretical basis and a conceptual approach to the digital strategizing of industrial systems based on the paradigm of sustainable eco-innovation development, circular business models, and the transformational impact of Industry 5.0 technologies.Tasks. The authors propose a theoretical basis for digital strategizing; formulate definitions of digital strategy and digital strategizing of industrial systems; highlight the conceptual domain of digital strategizing; systematize the tools of digital strategizing based on eco-innovation and circular business models in the context of the transition to Industry 5.0 within the framework of the sustainable development paradigm.Methods. This study uses assessment review to synthesize existing literature on digital transformation and strategy practice based on an eight-step guide for conducting an independent systematic literature review.Results. The theoretical basis of digital strategizing is based on the co-evolution of approaches and schools of strategy. A distinction is drawn between the concepts of information systems strategizing and digital strategizing, digitalization strategies, digital transformation, and digital strategies. Original definitions of digital strategy and digital strategizing of industrial systems are proposed. A multi-perspective conceptual approach to the digital strategizing of industrial systems based on the integration of technologies, people, and various processes is developed. Relevant tools for the digital strategizing of industrial systems are developed.Conclusions. In the context of the transition to Industry 5.0, the introduction of digital technologies in industrial systems is necessary, but it does not seem sufficient for success in the digital environment. Digital strategizing requires changing existing and/or creating new business models based on mindset transformation into a new way of working that would allow industrial systems to innovate using technology. Strategic imperatives that should serve as the basis for new business models for the digital strategizing of industrial systems include eco-innovation and circular business models within the framework of the sustainable development paradigm, as well as business models of Industry 5.0.