DIGITALIZATION AND DIGITAL TRANSFORMATION OF BUSINESS: MODERN CHALLENGES AND TRENDS

Abstract

The article is devoted to the analysis of modern trends in digitalization and digital transformation of business. Digitization of economic activity has now become one of the key trends in the development of domestic business. Digital solutions have a significant impact on business processes and models, and their application is due to the changes in consumer behavior, the availability of technology and a positive economic effect. The Covid-19 pandemic has contributed to the fact that business began to rapidly learn digital tools in the organization of commercial activities, which contributes to the dynamic digital transformation of business. The authors emphasize the distinctive features of digitalization of business and its digital transformation; they consider Russia's position in international ratings of digital economy development, and analyze the achieved level of digitalization of domestic entrepreneurship on the basis of indices and official data of state statistics. It is noted that digital transformation affects the activities of many entrepreneurial structures, regardless of the size of business. At the same time, entrepreneurs face not only the positive sides of digitalization, but also have to solve new problems, overcoming the influence of new risks and threats.The authors identified the key challenges of digitalization of entrepreneurship in the modern economy, which are in particular related to information security; insufficient level of development of digital competencies among enterprise staff; the difficulty of moving to new business models; financial constraints.