Applied Research of Digital Readiness of Retails
NATALIIA SAVYTSKA1a, OLENA ZHEHUS1b, HANNA CHMIL1c, NATALIIA UCHAKOVA2d,
TETIANA ANDROSOVA2e, OLHA PRIADKO1f
1Department of Marketing, Reputation Management and Customer Experience
State Biotechnological University,
44 Alchevsky street, Kharkiv
UKRAINE
2Department of Economics and Business
State Biotechnological University,
44 Alchevsky street, Kharkiv
UKRAINE
aORCID: http://orcid.org/0000-0001-6569-6772, bORCID: https://orcid.org/0000-0003-3318-4646,
cORCID: https://orcid.org/0000-0002-3703-9940, dORCID: https://orcid.org/0000-0002-6442-4828,
eORCID: https://orcid.org/0000-0002-8855-4168, fORCID: https://orcid.org/0000-0002-1065-5567
Abstract: The paper contains a proposed methodology for determining the digital readiness of retail, which,
unlike the known ones, allows managing the internal capabilities of digital transformation of enterprises in the
FMCG retail segment. This technique has a number of advantages: data availability; ease of calculation;
sufficiency and non-overloading of the attributes of the resulting feature; the possibility of using both in the
process of primary self-diagnosis and at the control stage to determine the effectiveness of changes in the
implementation of digital projects in retail. The proposed methodology involves the calculation of the integral
index of digital readiness of retail enterprises, which is an indicator. It is based on morphological analysis and a
formalized system of scoring share indices according to the selected components of internal capabilities for the
digital transformation of an enterprise. The internal possibilities of digital transformation of retail are
investigated in the context of management and support subsystems. The managerial subsystem of the digital
readiness of the organization is formed by two groups of digitalization factors: the aspiration of the
management staff and the presence of a digital strategy of the enterprise. The following factors are referred to
the supporting subsystem: digital potential and digital culture of the enterprise. The parameters and attributes
that characterize the internal capabilities of an enterprise in digital transformation in the context of the selected
factors and subsystems are determined. A scale for interpreting the assessment of the level of internal digital
capabilities for adapting an enterprise to the conditions of business digitalization is substantiated. The proposed
methodology was tested on a representative quota sample of network FMCG segment objects, which included
the largest retail operators in the region under study in terms of retail turnover. The results obtained made it
possible to identify gaps in the management and support subsystems of the digital transformation of retail and
offer a solution for managing the internal digital capabilities of the enterprises under study. It has been
established that the main reason for the inhibition of digitalization processes is the weak will of managers and
the lack of formation of digital thinking, lack of experience in developing and implementing a digital
development strategy, limited financial resources, a weak level of digital skills of employees, as well as a lack
of methods for assessing and managing digital transformation processes. The results obtained form the basis for
discussions on industry-specific factors of business readiness for digital transformation. As well as the
prerequisite for determining the directions of digital activity of network retailers, developing scenarios for
digital business transformation.
Key-Words: Retail Business; digitalization of the economy; enterprise digital capabilities; digital strategy of the
enterprise, digital business readiness.
Received: July 14, 2021. Revised: May 10, 2022. Accepted: May 29, 2022. Published: June 21, 2022.
1 Introduction
Spreading global trends in digitalization,
intellectualization and servicing of production,
distribution, exchange and consumption have
changed the paradigm of business management.
The COVID-19 pandemic has exacerbated retailers'
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Nataliia Savytska, Olena Zhehus,
Hanna Chmil, Nataliia Uchakova,
Tetiana Androsova, Olha Priadko
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problems with declining offline store traffic,
disrupted logistics flows, and accelerated
digitization throughout the value chain. Digital
technologies have become drivers of product,
organizational, marketing, logistics innovations,
changed the methods of working with staff,
customers and partners. Analysts at Boston
Consulting Group (BCG) identify the positive
impact of digitalization on the development of the
labour market, health care, education [1].
Digitalization improves the existing processes in
the organization, and digital transformation, in its
turn, radically changes, reorganizes business
processes, transforms or creates new qualities,
properties of processes on the principle of "less
money – more money – new money".
Digitization has become synonymous with the
competitiveness of the subject no matter what
market, whether the labour market (employee) or
the consumer market (household, manufacturer,
retailer) is meant. However, the digital economy is
just emerging and has an uneven development.
Regional, national economies and individual
industries differ significantly in the level of
digitalization and the depth of the digital divide in
all aspects of its manifestation - geographical,
technological, social, cognitive, and so on. Retail
digitization took place in the second wave of the
digital revolution after the IT sector, media market
and banking. Traditionally, the retail sectors of the
B2C (business-to-customer) sector show a higher
level of digital maturity when compared to B2B
(business-to-business). However, for the Ukrainian
economy, the slowness of the digital transformation
process is explained by a number of inhibitory
factors. a number of external inhibitory factors. For
example, the lack of high-speed Internet coverage,
the high price of cloud computing services. Retail
enterprises can only adapt to them, since they are
unmanageable from the position of the subject.
Therefore, the focus of this study is to identify
manageable levers for managing the internal factors
of digital readiness of retailers. Identifying digital
readiness factors for the retail sector is the focus of
this study.
2 Problem Formulation
The issues of digital transformation are
interdisciplinary in nature and are the subject of
research in various fields of science. The issues of
conceptualization of the principles of digital
transformation of the economy have been studied
Van Veldhoven, Z. & Vanthienen [2]; Pizhuk [3];
Tsenzharik [4]; Veldhoven et al [5]; Little [6],
which extensively presents the scientific discourse
on the relationship between digitalization, digital
transformation. The penetration of digital
technologies in certain areas of activity is the
subject of the following research: digitization of
communication policy, omnichannel marketing
Kannan et al [7]; Villanova [8]; trade marketing
and organization of omnichannel sales, e-
commerce (Zhehus [9]; Babenko et al [10];
Davydova et al [11]; management in the conditions
of formation of Industry 4.0 (Nambisan et al [12];
Babenko [13]); the practice of organizational
behaviour for sustainable development (Savytska et
al [14]; Pyroh et al [15); e-commerce, supply
chains (Ilchenko et al [16]; other areas of economic
activity [17].
Consulting companies and leading economic
schools have made a significant contribution to the
methodology for assessing the readiness of the
economy for digital transformation. Among the
most well-known indicators of digital
transformation there are the following: Global
Competitiveness Index [18]; Global Innovation
Index (GII) [19]; Networked Readiness Index
(NRI) (World Economic Forum) [20]; Digital
Access Index (DAI) [21]; Broadband Penetration
Index (ITU) [22]; World Digital Competitiveness
(WDC) ranking [23]; Digital Economy and Society
Index (DESI) [24]. These approaches are based on
the index method; their use allows for comparative
analysis.
The transition of business to digital technologies is
assessed according to the KPMG (consulting
agency) methodology as a model for assessing
digital business aptitude (DBA). It is used to
determine a company's readiness for digital
transformation based on the evaluation of criteria
defined by five components of digitalization:
campaign strategy, information technology
professionals, digitalization of internal processes,
infrastructure and supply flexibility, target
management [25].
Due to the implementation of this approach, the
company's overall strategy is described in the
context of seeing the role and benefits of digital
technologies. A separate area evaluates and
analyzes the existing approaches to the formation
of personnel policy, in particular regarding the
search, selection, maintenance, training and
retraining of specialists in the field of digital
technologies. Evaluating the digitization of internal
processes, criteria are used that characterize the
level of use of customer experience to create a
product. Also, the use of optimized platforms that
allow for 24/7 service from any device anywhere;
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the state of development and flexibility of
processes, as well as the presence of constant
measurements and analytics. The criteria for
assessing the flexibility of infrastructure and supply
determine the level of response of the enterprise
and its structures to digital technologies, readiness
to take swift action in response to constant change.
Evaluation of the criteria of target management
enables to identify the level and compliance with
the challenges of the measures taken in the
direction of restructuring management at the
corporate level in order to focus on support.
An alternative to the DBA (digital business
aptitude) is the benchmark model for determining
digital maturity Forrester 4.0. It is more general and
provides an opportunity to assess the level of
readiness of the enterprise for digital
transformation on the basis of general criteria
specific to any enterprise, different industries,
sizes, scales of activity [26]. The model includes a
set of criteria: the level of use of digital
technologies to increase competitiveness, ensuring
the operation of the enterprise based on customer
experience and creating flexibility of the enterprise.
Unlike the DBA (digital business aptitude) model
in the Forrester 4.0 model not only the directions
which should be adapted to requirements of the
digital enterprise are allocated, but also the levels
(stages of maturity) are defined. These stages have
certain characteristics regarding the success of
using the benefits of digitization. The results of the
assessment determine the relevant conditions in the
following areas: culture, organization, technology,
analytics. According to the scale of assessing the
level of digital maturity, the company can be
defined as an innovator, advanced, follower,
sceptic. Accordingly, the highest level of digital
maturity is inherent in innovative enterprises, and
the lowest - in sceptics.
Acatech has developed an Industry Maturity Index
of 4.0. [27]. The concept of Industry 4.0 maturity
index model lies in the fact that each stage is based
on the previous one and describes the
characteristics needed to achieve it, as well as the
potential benefits for the company. Cultural and
organizational change is closely linked to
technological components, enabling flexibility,
which is a key feature of transformation. The
authors propose a six-stage model of digital
maturity, which analyzes the characteristics of such
areas as resources, information systems, culture and
structure. According to the main ideas of gradual
digital development, it is important to go forward.
The path of development begins with digitalization,
which provides the basic requirements for the
implementation of Industry 4.0 - these are
informatization and connectivity. Then the
following steps required for Industry 4.0 are clarity,
permeability, predictability, self-correction.
Determination of Industry Maturity Index 4.0.
occurs within certain functional areas:
development, production, logistics, service,
marketing and sales. For each functional area, a
concept is presented that illustrates the features that
characterize flexible, adaptive companies that are
constantly evolving.
In the process of determining the maturity index of
Industry 4.0. structural areas, functional areas and
stages of development are combined to determine
the overall maturity of the production company and
the maturity of individual functional areas. After
establishing the current stage of maturity of the
company, an action plan for digital transformation
is developed, which describes specific measures in
a certain sequence for both functional and
structural areas. A characteristic difference of this
model is its focus on the formation of the
company's ability to constantly develop, flexibly,
quickly and continuously adapt to change,
including taking into account changes in customer
needs.
A well-known model for assessing digital maturity
is a model of radar based on the Digital
Transformation Index, developed by the analytical
agency Arthur D. Little Digital Transformation [6].
Evaluation is carried out in the following areas:
Strategy & Governance; Products & Services;
Customer Management; Operations & Supply
Chain; Corporate Services & Control; Information
Technology; Workplace & Culture. In contrast to
previous researchers, the manifestations of
digitalization in products and services offered for
the market are analyzed.
The model of digital maturity assessment of
S. Savchuk [28] deserves attention. The author
determines the level of digital maturity in 6 areas of
enterprise activity: strategy, personnel, structure,
technologies, marketing, organizational culture, for
each of which attributes are defined. Collection of
information involves the development of a
questionnaire with a list of relevant questions for
each of the 6 identified activities of the enterprise.
In total, the questionnaire includes 61 questions,
the answers to which provide for evaluation on a 5-
point scale, which allows based on the calculations
to quantify the state of digital maturity of the
enterprise for each component. However, this
approach does not provide a formalized scale for
identifying states to determine a specific
assessment for each attribute, which complicates
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the assessment process and increases the
subjectivity of assessment. I. Strutynska proposed
a different scientific and methodological approach
to determining the index of digital transformation
of business structures. Its essence lies in the
polystructural combination of 4 groups of
indicators: informative data; digital literacy of
human capital; digital tools to support business
processes; digital infrastructure [29]. This method
allows you to determine the potential of digital
maturity and the readiness of a business to
introduce digital technologies into practice.
According to O. Pizhuk's methodology [3], digital
transformation assessment is based on three key
aspects of digital transformation: the presence of
prerequisites for digital transformation (readiness),
the level of integration of digital technologies into
key areas of activity and the effectiveness of digital
transformation (economic, social consequences).
Approbation of this methodology was based on an
analytical assessment of statistics and expert
surveys conducted by international organizations
[30].
The developed methodological tools are aimed
mainly at determining the digital maturity of the
organization in order to identify its current state
and determine the priorities of digital
transformation.
3 Problem Solution
3.1 Research Methodology
In order to determine the internal opportunities for
digital transformation at the level of organizations,
a methodology for studying the digital readiness of
retail chains is proposed. It provides for the
calculation of an integrated index of readiness for
digital transformation of the retail enterprise, taking
into account the available internal digital
capabilities. Based on the content analysis of
methods for assessing digital maturity, the key
components that characterize the company's
readiness for digital transformation and form
internal digital capabilities are identified: the desire
of management, digital potential, digital culture and
digital strategy, which together characterize the
digital capabilities and aspirations of the enterprise
to the introduction and development of digital
technologies (Fig. 1).
The method of morphological analysis for each
component is used. The parameters and attributes
that characterize them are determined (Table 1).
For high digital readiness, it is important that the
parameters have the maximum value, so the
mathematical model of digital readiness has the
form:
(1)
where DR is digital readiness indicator;
DM – digital intentions of the enterprise
management;
DP – digital potential of the enterprise;
DC – digital culture of the enterprise;
DS – digital strategy of the enterprise.
The digital intentions of the top management and
digital strategy form the management subsystem of
digital transformation, and the digital potential and
digital culture – the providing one.
A 5-point scale was used to assess the company's
readiness for digital transformation. The data were
obtained by interviewing managers, as well as by
observation. An index method was used to process
the results. In order to formalize the qualitative
assessments developed a scale given in Table 1.
Table 1. Formalization of the scale of scoring on the attributes of digital readiness of the enterprise
Partial
indexes min
Parameters
Attributes
Conventi
onal sign
Formalization of score
min (1 score)
max (5 score)
1
2
3
4
5
6
Intentions of
top
management
(DM)
Digital vision of
top management
Digital thinking of the
top management
dm1
Lack of
understanding of the
need, benefits,
opportunities of
digital technologies
Absolute
understanding of
the need,
benefits,
opportunities of
digital
technologies
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1
2
3
4
5
6
Initiation of digital
changes
dm2
Lack of initiatives
for the introduction
and development of
digital technologies
Adequacy of
initiatives for
the introduction
and
development of
digital
technologies
Recognition of priority /
perceptiveness /
necessity / flexibility
dm3
Misunderstanding of
priority / prospects /
necessity
Absolute
recognition of
priority /
perspective
Digital
culture
(DC)
Digital values in
the organization
Training and promotion
of digital transformation
in the internal
environment of the
organization
dc1
Low level of
education and
promotion of digital
transformation
High level of
education and
promotion of
digital
transformation
Digital thinking of
employees
dc2
Absolutely not
formed digital
thinking of
employees
Digital thinking
formed at a high
level
Employee involvement
in digital transformation
and their cohesion
dc3
Low level of
involvement and
cohesion of
employees
High level of
involvement and
cohesion of
employees
Implementing flexible
digital communications
in working groups
dc4
Lack of flexibility
Sufficient
flexibility
Digital
potential
(DP)
staff
Availability of
specialists in modern
ICT
dp1
Absence of
specialists in modern
ICT
Availability of
specialists in
modern ICT
Sufficiency of specialists
in modern ICT
dp2
Lack of specialists in
modern ICT
Sufficiency of
specialists in
modern ICT
Qualification of
specialists in modern
ICT
dp3
Low, does not meet
the needs
High, meets the
needs
Digital skills of
employees in other fields
/ professions
dp4
Unformed digital
skills of employees
in other fields /
professions
Sufficiently
formed digital
skills of
employees in
other fields /
professions
funding
Adequacy of financing
digital transformation
dp5
Insufficient funding
for digital
transformation
Funding at the
appropriate level
according to
needs
Opportunities for
financing digital
transformation
dp6
Limited financial
resources for digital
transformation
Sufficient
financial
opportunities for
digital
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1
2
3
4
5
6
transformation
digital
infrastructure
The level of material
ensuring digital
transformation
dp7
Low level of
material ensuring
digital
transformation
High level of
material
ensuring digital
transformation
Possibilities of digital
transformation with the
available material and
technical base (MTB)
dp8
Low possibilities of
digital
transformation with
the available
material and
technical base
Sufficient
possibilities of
digital
transformation
with the
available
material and
technical base
digital awareness
Use of verified, correct
data in real time
dp9
Lack of real-time
data collection and
processing tools
Adequacy of
real-time data
collection and
processing tools
Monitoring and analysis
of digitalization trends
dp10
Not held at all
Are held
regularly
Digital
strategy
(DS)
Digital positioning
in the market
Availability of a digital
transformation plan
ds1
Lack of a digital
transformation plan
The digital
transformation
plan is
developed,
adjusted and
implemented
Digital density of
formation of consumer
value of the retailer
brand
ds2
An outsider in terms
of digital density
A leader in
digital density
Speed of response to
changing digital
capabilities
ds3
Passive character
Active character
Source: developed by the authors
Given the multicomponent nature of the digital readiness indicator, partial indices of aspiration of management
staff, digital potential, digital culture and digital strategy and an integrated readiness index are proposed
(Fig. 1).
Fig. 1: Index system for determining the digital readiness of the organization
Source: developed by the authors
IDR
iDM
Intentions of
top
management
iDP
Sufficiency of
staff
Sufficient
funding
Developed
infrastructure
Digital
awareness
iDC
Digital values
in the
organization
iDS
Digital
positioning
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Partial indices for each component are calculated as
follows:
, (2)
where iDM is the partial index of the intentions of
top management;
bdmі is the score evaluation of the i-th attribute of
the parameter of the intentions of top management;
n=3 is the number of attributes of the DM
parameter.
, (3)
where iDP is the partial index of digital potential;
bdpі is the score evaluation of the i-th attribute of
digital potential;
n=10 is the number of attributes of the DP
parameter.
, (4)
where iDC is the partial index of digital culture;
bdcі is the score evaluation of the i-th attribute of
digital culture; n=4 is the number of attributes of
the DC parameter.
, (5)
where iDS is the partial index of the intentions of top
management;
bdsі is the score evaluation of the i-th attribute of the
parameter of the intentions of top management;
n=3 is the the number of attributes of the DS
parameter.
To determine the integrated index of readiness of
the enterprise for digital transformation, it is
recommended to use the geometric mean:
, (6)
where IDR is the integrated index of enterprise
readiness for digital transformation;
iDM, iDP, iDC, iDS are partial indices of the relevant
components.
To determine the level of readiness of retail
enterprises for digital transformation, an
interpretation scale is proposed, given in table 2.
Table 2. Scale of interpretation of values of partial
and integral indices of readiness of the retailer for
digital transformation
Values of partial
and integral index
Level of
readiness for
digital
transformation
Internal
digital
capabilities
0,01 ІDR0,25
Zero
Absent
0,25 ІDR0,5
Low
Limited
0,50 ІDR 0,75
Medium
Insufficientl
y formed
0,75ІDR1
High
Powerful
Source: developed by the authors
3.2 The research Results
Internal digital opportunities for adaptive digital
behaviour are determined depending on the level of
readiness of the enterprise for digital
transformation. The study of readiness for digital
transformation of retail enterprises in the FMCG
(Fast Moving Consumer Goods) sector was
conducted in February-March 2021. The sample
included 175 objects of network retail. All of them
are market leaders in the FMCG sector of the
Kharkiv region: «Sil'po», «ATB», «CHudo
Market», «Rost», «Klass», «Posad», «Tavriya B»,
«Vostorg», «SPAR», «VelMart». Based on the
results of the expansion, the profit margin of these
operators in the market will become more than 80%
in the retail turnover of the FMCG sector in
Ukraine (Kharkiv region). The method of online
survey of employees of the retail network
management staff was chosen for the research. The
reliability of the results obtained is confirmed by
the representativeness of the quota sample with a
high density of homogeneity of the objects of study
in accordance with the objectives of the study,
which ensured a sufficient level of reliability (0.95)
of the results.
Using the proposed methodology, the readiness of
retail networks of the sample for digital
transformation was assessed. The results of the
calculations are presented in Fig. 2-5, table 3.
Fig. 2: Profile of the partial index of desire of the
management apparatus (iDM) by sample (n=175
objects)
Source: according to the results of studies of the
sample
On average, in the sample of enterprises, all partial
indices and the integrated index correspond to the
average level. This means that the available digital
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capabilities of retailers need resources to bring
them to a level adequate to the needs for further
digital transformation.
Fig. 3: Profile of the partial index of digital
potential by the sample (n=175 objects)
Source: according to the results of studies of the
sample
It should be noted that partial indices of digital
potential (Fig. 3) and digital strategy (Fig. 6) have
higher values compared to partial indices of
aspiration of the leadership (Fig. 2) and digital
culture (Fig. 4).
Fig. 4: Profile of the partial index of digital culture
in the sample (n=175 objects)
Source: according to the results of studies of the
sample
The study identified the need for additional efforts
to form a digital culture, the partial index of this
parameter is the smallest and is on the border of
medium and low level.
Fig. 5: Profile of the partial index of the digital
strategy for the sample (n=175 objects)
Source: according to the results of studies of the
sample
Among the studied supermarket chains, the group
with a high level of digital readiness included the
networks «ATB», «Sil’po», «Klass», which
accounted for 30% of the sample, the integrated
index of digital readiness of which was 0.809-0.852
(Table 3). According to the proposed scale of
interpretation, their digital readiness is determined
to be quite high.
Table 3. Characteristics of the level of digital readiness of samplers
Supermarket chains
Integrated index of
digital readiness
(ІІDR)
Digital
readiness level
Internal digital capabilities available
ATB
0.852
High,
30% of the
sample
Internal digital capabilities are powerful. Allow to
accelerate the processes of digital transformation,
increase the level of digital technology, strengthen
digital leadership in the regional market
Sil’po
0.834
Klass
0.809
Rost
0.693
Medium, 50%
of the sample
Internal digital capabilities are formed, need further
efforts to strengthen them to accelerate the process
VelMart
0.665
0,44
0,92 0,9
0,72
0,94
0,2
0,6 0,72 0,74
0,6
0,678
0
0,2
0,4
0,6
0,8
1
(iDP) medium
0,4
0,65 0,65 0,6
0,75
0,2
0,4
0,45
0,6
0,55
0,525
0
0,1
0,2
0,3
0,4
0,5
0,6
0,7
0,8
(iDC) medium
0,4
0,933 1
0,8
0,933
0,2
0,6
0,7330,733
0,667
0,7
0
0,2
0,4
0,6
0,8
1
1,2
(iDS) medium
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Supermarket chains
Integrated index of
digital readiness
(ІІDR)
Digital
readiness level
Internal digital capabilities available
Tavriya V
0.646
of mastering digital technologies
CHudo Market
0.585
POSAD
0.542
Vostorg
0.465
Low, 10% of
the sample
Internal digital opportunities for adaptive digital
behavior in the context of digital transformation are
limited and hinder the further development of digital
technologies, require radical decisions to find ways
to increase them
SPAR
0.2
Zero, 10% of
the sample
Internal digital opportunities for adaptive digital
behavior in the context of digital transformation are
absent, make it impossible to master digital
technologies, require radical solutions to enhance
adaptive digital behavior
On average
0.632
The internal digital capabilities of these networks
are characterized as powerful. This level allows to
accelerate the processes of digital transformation,
increase the level of development of digital
technologies, to introduce innovative digital
technologies. Such a trajectory of development
belongs to digital leadership in the regional market.
These networks have the highest partial index of
digital potential, which exceeds 0.8. They are
sufficiently equipped with qualified IT specialists,
have the appropriate material and technical base,
sufficient financial opportunities for the introduction
and development of digital technologies.
However, for further digital transformation with a
focus on innovative digital technologies, it is
necessary to strengthen the digital potential of all
components, especially financial and human. The
digital readiness of supermarket chains «ATB»,
«Sil’po», «Klass» is significantly enhanced by the
presence of a digital strategy, which was noted by
representatives of the management staff. However,
assessments of the level of digital technology
development show certain problems in its
implementation, which highlights the need to
develop and implement a new strategy of digital
adaptive behavior, taking into account the existing
internal digital and external digital capabilities.
The group of chains retail with a medium level of
digital readiness includes «Rost», «VelMart»,
«Tavriya B», «Chudo Market», «POSAD», and the
integrated index of their digital readiness fluctuates
at the level of 0.542-0.693. Their internal digital
capabilities are limited and require significant
efforts to adjust them to all components of the
digital readiness model (1). To accelerate the digital
transformation of the studied networks, catch up
with digital leaders, it is necessary to: form digital
thinking and management initiatives for the
development and implementation of strategy,
development of digital skills and employee
involvement; strengthening digital capacity,
development and implementation of digital strategy.
The results of the analysis revealed a low level of
digital readiness in the chain «Vostorg», the
integrated index was 0.465. Internal digital
capabilities are almost non-existent and hinder the
achievement of the appropriate level of digital
technology development. Therefore, quick and
radical solutions are needed to increase digital
readiness to intensify digitalization processes and
overcome the digital gap.
A situation that requires radical changes is observed
in the «SPAR» chain. The digital readiness index
was only 0.2, i.e. the retailer is at zero level of
digital transformation. Internal digital capabilities
are not disclosed and make it impossible to master
digital technologies. Under such conditions, radical
decisions are needed to build digital capabilities and
increase digital readiness to overcome the digital
failure.
The development of innovative digital technologies
creates new digital opportunities, the use of which
requires a review of business models and business
processes. Improving them through the introduction
and development of digital technologies will
provide competitive advantages, increase efficiency,
productivity and productivity of market participants.
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2022.18.75
Nataliia Savytska, Olena Zhehus,
Hanna Chmil, Nataliia Uchakova,
Tetiana Androsova, Olha Priadko
E-ISSN: 2224-3496
806
Volume 18, 2022
4 Conclusion
As a result of the content analysis of the existing
methodological support for assessing the digital
maturity of organizations, the gained world
experience is generalized and the following
conclusions are made. The analysis of digital
maturity is carried out in order to diagnose problems
and find recommendations for their solution.
Among the known methods, the vast majority is
based on methods of scoring the results of a survey
of managers / employees of enterprises.
Differentiation of complexity of methodologies is
caused by a variety of quantity and structure of the
estimated attributes.
In order to improve the diagnostics of digital
readiness assessment, a methodology for an
integrated index of digital readiness in the field of
retail has been developed. This technique has a
number of advantages: 1) is based on observable
elements that characterize the key factors affecting
the ability and readiness of retail for digital
transformation; 2) these factors are grouped into 2
manageable subsystems: management, which
includes the desire of management personnel to
digitalize the business and the presence of an
adequate digital strategy. And also providing,
including the existing digital potential and digital
culture of the organization. This technique has a
number of advantages and includes key components
that characterize the ability and readiness of retail
for digital transformation: the desire of
management, digital potential, digital culture and
digital strategy.
The method is based on a formalized scoring
system, which determines the ease of use. The index
method used is publicly available. Information is
collected by interviewing employees of the
management and surveillance staff, desk research.
Allows you to identify bottlenecks in shaping the
readiness of an enterprise for digital business
transformation, both in terms of certain parameters
of the management and support subsystems, and in
terms of selected attributes of business
digitalization. This allows you to manage internal
capabilities to maximize your business's digital
readiness level. The methodology can be used in the
process of primary self-diagnosis and later - at the
control stage to determine the effectiveness of
changes in the implementation of digital projects.
According to the results of the research, digital
opportunities and factors inhibiting the digital
transformation of retail operators have been
identified. It is established that the main reason for
slowing down digitalization processes is the weak
will of managers and the lack of digital thinking,
lack of experience in developing and implementing
digital development strategies, limited financial
resources, weak digital skills of employees, and lack
of evaluation and management of digital
transformation.
The results obtained form the basis for discussions
on industry-specific factors of business readiness for
digital transformation. They can also become the
basis for determining the directions of digital
activity of network retailers, developing scenarios
for digital business transformation.
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Hanna Chmil, Nataliia Uchakova,
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Nataliia Savytska, Olena Zhehus,
Hanna Chmil, Nataliia Uchakova,
Tetiana Androsova, Olha Priadko
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39
Contribution of Individual Authors to the
Creation of a Scientific Article (Ghostwriting
Policy)
-Nataliia SAVYTSKA has idea conceptualization
and design of methodology.
-Olena ZHEHUS has created models.
-Hanna CHMIL has formal data analysis and
validation of results
-Nataliia UCHAKOVA has carried out the
modelling.
-Tetiana ANDROSOVA has implemented the
model on statistical data.
-Olha PRIADKO has implemented the model on
statistical data.
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
https://creativecommons.org/licenses/by/4.0/deed.en
_US
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2022.18.75
Nataliia Savytska, Olena Zhehus,
Hanna Chmil, Nataliia Uchakova,
Tetiana Androsova, Olha Priadko
E-ISSN: 2224-3496
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Volume 18, 2022
