Volume 13 - Issue 74
/ February 2024
201
http:// www.amazoniainvestiga.info ISSN 2322- 6307
DOI: https://doi.org/10.34069/AI/2024.74.02.17
How to Cite:
Melnyk, S., Ravlinko, Z., Shuprudko, N., Pushak, H., & Havrylyshyn, O. (2024). Security aspects of digital transformation and
intellectualization of business. Amazonia Investiga, 13(74), 201-213. https://doi.org/10.34069/AI/2024.74.02.17
Security aspects of digital transformation and intellectualization of
business
Aspectos de seguridad de la transformación digital y la intelectualización de los negocios
Received: December 14, 2023 Accepted: January 28, 2024
Written by:
Stepan Melnyk1
https://orcid.org/0000-0003-3782-5973
Zoryana Ravlinko2
https://orcid.org/0000-0001-8380-6912
Nataliia Shuprudko3
https://orcid.org/0000-0002-5629-0671
Halyna Pushak4
https://orcid.org/0000-0002-2487-8374
Olena Havrylyshyn5
https://orcid.org/0000-0001-7181-4421
Abstract
The main purpose of the article is to determine
the key aspects of security during digital
transformation and intellectualization of business
in the conditions of a changing external
environment. As a result of the literature review,
the team of authors of the article sets themselves
a new scientific task, to form an innovative
approach to assessing security aspects during
digital transformation and intellectualization of
business in modern development conditions. The
research methodology involves the use of the
expert analysis method, the Delphi method, the
even comparison method, and the modeling
method. Thanks to this, the result was a list of the
most significant security aspects affecting the
process of digitalization and intellectualization
of business in the region. An approach to
assessing these aspects has been formed. The
innovativeness of the results obtained is
considered through the prism of the proposed
model for achieving the most important aspects
1
Department of the Finance and Accounting, Lviv State University of Internal Affairs, Lviv, Ukraine. WoS Researcher ID:
AAI-1425-2020
2
Doctoral student, Lviv State University of Internal Affairs, Lviv, Ukraine. WoS Researcher ID: JNH-1737-2023
3
Department of Management, International Economy and Tourism, Chernivtsi Institute of Trade and Economics of Kyiv National
University of Trade and Economics, Chernivtsi, Ukraine. WoS Researcher ID: DRS-2144-2022
4
Department of Theoretical and Applied Economics, Lviv Polytechnic National University, Lviv, Ukraine. WoS Researcher ID:
DMV-6663-2022
5
Faculty of Publishing, Printing and Informational Technologies, Ukrainian Academy of Printing, Lviv, Ukraine. WoS Researcher
ID: CUZ-1998-2022
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of security for effective digitalization and
intellectualization of business in Ukraine. The
study is limited by taking into account the
specifics of the business environment only in
Ukraine. Prospects for further research suggest
expanding the range of modeling; if only the
IDEF0 method was used in the article, then in the
future the possibilities of using IDEF3 should be
considered.
Keywords: business, security, digital
transformation, business environment,
intellectualization.
Introduction
Digital transformation within the framework of
the functioning of each individual enterprise has
become relevant relatively recently, but today it
is already the main condition for maintaining
competitive advantages and creating the
necessary digital foundation for development in
the context of an increasing share of the digital
economy. COVID-19 became an indicator that
determined significant benefits for businesses
that were able to operate online. The post-
pandemic period has not diminished, but
increased, attention to a holistic vision of the
prospects for introducing digital technologies
with a rethinking and restructuring of all business
processes. The difference in the development of
the national economy, manifested in the
readiness of the digital infrastructure for business
activity in matters of digital transformation,
determines different initial positions with the
benefits of enterprises operating in economically
developed countries. Ukraine lags behind its EU
neighbors in economic development, and
military actions have provoked a significant
number of refugees, which has caused personnel
losses that are slowing down the digital
transformation of Ukrainian enterprises. A
thorough study of the best practices of digital
transformation of enterprises in the EU countries
in comparison with the actual circumstances of
such processes in Ukraine creates the necessary
information basis for predicting changes in the
struggle for competitive positions in the domestic
and foreign markets, in particular in terms of
eliminating threats and better using new
opportunities arising through displacement of
significant numbers of highly skilled and
motivated refugee workers.
The passivity of Ukrainian enterprises regarding
digital transformation and intellectualization on
an individual basis is fraught with the loss of
competitive positions due to the inability to meet
consumer needs at a higher technological level,
and within the national economy - a deepening of
the technical and technological gap with an
increased orientation towards raw materials and
labor exports and a decrease in purchases.
Consequently, the issue of digital transformation
and intellectualization of enterprises is especially
acute due to the growing uncertainty of the
external environment, which requires, in order to
maintain competitiveness, the transformation of
activities through the introduction of modern
information technologies and digital
management tools, ensuring digital shifts. If in
economically developed countries this is a matter
of strategic and tactical perspective of operation,
illustrated by the ability to maintain the active
activity of enterprises during restrictions during
the COVID-19 period, then for Ukraine it is a
matter of its own survival, restoration of
macroeconomic balance and laying the resource
foundation for post-war recovery and the ability
to technologically follow for the leading
countries in economic development.
The main purpose of the article is to determine
the key aspects of security during digital
transformation and intellectualization of business
in the conditions of a changing external
environment.
Literature review
The transition to digital platforms and the
intellectualization of business, especially in a
fluctuating external environment, presents
multifaceted challenges and opportunities, as
explored in a range of scholarly works.
Thus, in the study by Javaria et al. (2020) focuses
on identifying and managing the risks consumers
face as e-commerce evolves. In the context of
your topic, this resource provides insights on the
Melnyk, S., Ravlinko, Z., Shuprudko, N., Pushak, H., Havrylyshyn, O. / Volume 13 - Issue 74: 201-213 / February, 2024
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security aspects associated with digital
transformation in e-commerce and points to
strategies that can help mitigate these risks.
Coverage of methods for identifying and
countering potential threats is important to
maintaining consumer safety in a changing
environment. While Javaria et al. (2020) discuss
identifying and managing risks in e-commerce,
they primarily focus on the consumer side of
security. Our article appears to adopt a broader
organizational perspective, emphasizing the
security aspects affecting the overall business
process during digital transformation, rather than
just consumer interaction. Our innovative
assessment model offers a holistic view that
encompasses the entire business environment.
Alazzam et al. (2020) offer insights into the legal
intricacies of electronic commerce, highlighting
the obstacles and solutions within Jordanian and
comparative legislatures, crucial for
understanding the legal framework surrounding
digital business transactions. This is
complemented by Zybareva et al. (2022)
investigation into the management of business
projects, emphasizing the role of international
competitiveness in global sustainability
conditions. Their perspective is crucial in
understanding how businesses can adapt and
thrive in an increasingly interconnected world.
In a study by Kopytko et al. (2023) the authors
propose a methodology for optimizing financial
resources in order to increase the level of
economic security of enterprises in a dynamic
external environment. In the context of our study,
this clearly understands the importance of
financial stability and economic security in the
context of digital transformation and business
intelligence, as well as for developing strategies
to optimize resources. Kopytko et al. (2023)
propose methods for optimizing financial
resources to enhance economic security,
focusing specifically on financial strategies. Our
methodology, which includes expert analysis, the
Delphi method, and even comparison, allows for
a more comprehensive approach to assessing
security in the context of digital transformation,
beyond just economic security.
The development of e-commerce platforms, as
discussed by Alazzam et al. (2023), brings to
light the importance of information models in
modern socio-economic systems. Their research
underscores the need for legal compliance and
global digitalization, providing a framework for
the successful integration of e-commerce in
business operations. Similarly, Lagodiienko et al.
(2022) examine the management of foreign
economic activities in sustainable conditions,
offering insights into how enterprises can
navigate the international market amidst
sustainability challenges.
The work of Fischer et al. (2020) illuminates the
archetypes of digital transformation strategies
using business process management to define
meta-goals. This article can serve as a source of
information about different approaches to digital
transformation and their impact on business
processes. This will provide a better
understanding of how strategic planning and
management can facilitate successful adaptation
to changes in the external environment.
At the same time, Zhou et al. (2021) analyzes the
impact of enterprise intellectualization on its
leadership potential. In the context of your topic,
this resource is important for understanding how
the integration of intelligent systems and
processes can enhance business competitiveness
and leadership in a changing environment. The
importance of an innovative approach to
leadership and strategic development is
highlighted. Zybareva al. (2021) bring attention
to the economic and legal aspects of network
readiness of enterprises in Ukraine, offering a
perspective on how businesses can improve
through digital and network enhancements. This
is particularly relevant in understanding the legal
ramifications and economic strategies needed for
digital transition. Studies like that of Zybareva et
al. (2022) and Lagodiienko et al. (2022) address
global sustainability and international market
navigation, but they might not integrate these
factors with digital transformation security. Our
innovative model could be seen as integrating
these concerns by providing a security
assessment that considers digital transformation
as a factor contributing to international
competitiveness and sustainability.
Kim et al. (2021) explores the essence,
characteristics and consequences of modern
digital transformation. It can provide your
research with a deeper understanding of where
the digital era is heading and the challenges and
opportunities it poses for businesses. Analyzing
the future direction of digital technologies and
their impact on business models, management
and competitiveness is key to adapting to
changing environmental conditions.
The study by Trokhymets (2020) examines the
development of the national economy in the
context of information processes and
digitalization. The author analyzes how digital
technologies and information systems influence
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economic structures and processes at different
levels: global, national and regional. In the
context of our topic, this source can provide
valuable insight into the impact of digital
transformation on the economy, which in turn
highlights the importance of security aspects in
the process of integrating emerging technologies.
A focus on national economic development helps
understand macroeconomic trends and the
challenges businesses face as they adapt to digital
innovation, highlighting the need to ensure
digital security at all levels. In conclusion, Sylkin
et al. (2021) effectively highlight the critical need
for businesses to adapt their economic security
management in response to the rapid digital
transformation and intellectualization of business
practices sparked by the global pandemic. This
work serves as a valuable resource for those
looking to understand the security imperatives in
the digital age, providing both theoretical
insights and practical guidance for navigating the
complex landscape of modern business
operations.
Shtangret., Korogod., Bilous., Hoi, & Ratushniak
(2021) focus on the management of economic
security in the high-tech sector, emphasizing the
necessity of modernizing security practices to
cope with the dynamic threats emerging from
rapid technological advancements. Their study
highlights the urgency of integrating
sophisticated security management tools and
techniques to protect critical infrastructures and
sensitive data against cyber threats exacerbated
by increased digital dependency.Dubyna et al.
(2023) extend this discussion to the trading
sector, analyzing how digitalization serves as
both a tool and a challenge for maintaining
financial and economic security under external
shocks, such as global health crises or economic
instability. Their research underlines the dual
role of digital technologies that offer innovative
solutions for robust security mechanisms while
simultaneously presenting new vulnerabilities
that must be managed carefully. The findings
suggest that proactive management of digital
resources and continuous adaptation of security
strategies are essential to safeguard trading
enterprises from the volatile external
environment.Both studies stress the importance
of a methodological approach to security in the
digital era. Sylkin et al. (2020) contribute to this
body of knowledge by developing a model for
assessing financial security levels that businesses
can use to quantify and manage their security
postures effectively. Their methodology allows
organizations to systematically evaluate their
financial vulnerabilities and prepare more
comprehensive defense mechanisms against
potential threats. This model is particularly
relevant in contexts where businesses are seeking
to balance growth and security in an increasingly
interconnected and digitalized market landscape.
Collectively, these studies provide a multi-
dimensional understanding of the challenges and
strategies in the digital transformation and
intellectualization of businesses, offering
valuable insights into the legal, economic, and
strategic aspects in a rapidly changing external
environment. But along with this there are a
number of gaps in the literature (Table 1).
Table 1.
Key gaps in the literature on the topic of the article
Gaps
Characteristics
The proposed approach
modern methodical approach to security Lack of a
modeling
Consideration of security
In the literature when considering the digitalization of
business, there is no issue of ensuring security
The issue of intellectualization
intellectualization of business is rarely the focus of The
the literature
Source: (formed by authors)
As a result of the literature review, the team of
authors of the article sets themselves a new
scientific task, to form an innovative approach to
assessing security aspects during digital
transformation and intellectualization of business
in modern development conditions.
Methodology
Expert analysis and the Delphi method formed
the cornerstone of your approach, providing a
robust framework for identifying critical security
aspects. By engaging a panel of experts and
employing a systematic, iterative process of
surveys, the study harnessed collective
intelligence and expert insights. This
methodology is particularly effective in reaching
a consensus on complex issues where individual
understanding may be limited or highly variable.
It ensured that the security aspects identified
were not only comprehensive but also reflective
of current industry and academic perspectives.
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To prioritize and compare these identified
security aspects, the pairwise comparison
method was adopted. This method is particularly
useful for its simplicity and effectiveness in
breaking down complex decisions into a series of
simpler comparisons. It enabled a systematic
evaluation of each security aspect against the
others, ensuring that the most critical aspects
were highlighted based on consistent and logical
comparisons. This approach is instrumental in
distilling a range of potential security concerns
down to the most pivotal ones.
30 experts from the leading areas of business
security were involved in order for them to help
establish 5 key aspects of the security of
digitalization and intellectualization of business
in Ukraine. Since there are many experts
themselves, they were forced to use the Delphi
method to organize them. Next, the final list
agreed through mathematical modeling programs
is highlighted, the key results are highlighted.
Following the identification of these critical
aspects through the Delphi method, the study
employed the pairwise comparison method to
prioritize and systematically evaluate these
aspects against each other. This method
simplified the complex decision-making process
by breaking it down into smaller, more
manageable comparisons. Each security aspect
was compared with every other to establish its
relative importance or urgency.
Finally, the IDEF0 method was leveraged for
modeling the effective implementation of these
critical security aspects in Ukrainian businesses.
IDEF0 is a functional modeling methodology
used for the analysis, development,
reengineering, and integration of information
systems, business processes, and software
engineering. This method provided a structured
framework for conceptualizing how the
identified security aspects could be effectively
integrated into business processes. By using
IDEF0, your study not only identified key
security aspects but also mapped out a clear,
actionable path for businesses to enhance their
security in the face of digital transformation and
intellectualization (Fig.1).
Figure 1. The main methods used in the article.
Source: (formed by authors)
The application of IDEF0 began with the
identification and decomposition of primary
business functions into simpler, manageable sub-
functions. This breakdown facilitated a detailed
examination of where and how security
vulnerabilities could arise as businesses
digitalized and intellectualized their operations.
Each sub-function was then assessed to
determine specific security needs, ensuring that
all potential threats were accounted for
systematically.Building on this foundation, the
study used the IDEF0 diagrams to map out the
interactions between these functions and their
respective security requirements, effectively
creating a visual and logical representation of
workflows and data flows.
Together, these methodologies provided a
comprehensive, multi-faceted approach to
understanding and addressing the security
challenges inherent in the digital and intellectual
evolution of businesses in an ever-changing
external environment.
Expert analysis and Delphi
method for determining security
aspects
Paired comparison method for
comparing the security aspects
we have identified with each
other and identifying the most
significant
IDEF0 method for modeling the
effective implementation of the
most significant aspects of
security in Ukrainian business
in order to increase its
intellectualization and
digitalization
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Results and discussion
In the EU countries, three levels of digital
maturity of enterprises can be identified: the first,
where investment is made in individual digital
technologies, the application of which does not
have a significant impact on the overall activity,
but is an embodiment of the desire to follow
competitors in the position that provided certain
competitive advantages; the second – the gained
experience allows forming a portfolio of digital
solutions, within which the necessary investment
volumes, risks, expected effect, and the degree of
impact on the overall financial results of the
activity are assessed; the third – a developed
strategy serves as the basis for systematic
updating of the list of relevant digital
technologies, which ensures strengthening of
competitive positions due to leadership and
maximum readiness to operate in the conditions
of the digital economy.
The necessity to pay due attention to the digital
transformation of enterprises in Ukraine is
conditioned by the business's realization of the
global nature of this issue, which requires
resolution. By 2022, i.e., in a period when
military actions were not the main threat to the
functioning of Ukrainian enterprises, 90% of
enterprises passive to the implementation of
digital technologies felt an increase in
competition from those that had made real steps
in the digitization of business processes. In terms
of digital transformation of enterprises by scale
of activity, the most complex situation was in
large industrial enterprises, 95% of which were
passive to the widespread introduction of digital
technologies, continuing to rely on technological
processes created sometimes 30 years ago for the
production of technologically simple, material-
and energy-intensive products for domestic
consumers. At the same time, the management of
71% of these large enterprises noted an
intensification of competition with a high
probability of losing competitive positions in the
short term.
Information from the survey of management of
Ukrainian enterprises is almost fully confirmed
by analytical data from the State Statistics
Service of Ukraine. Such research has been
conducted since 2018 and actually contains
diverse information due to the constant
clarification of the research object, but despite
this, it provides a general idea of the intensity of
use of digital technologies before and during
military actions. According to these official
statistical data, the share of enterprises that had
access to the Internet virtually did not change
(2018 – 88.0%, 2019 – 86.4%, 2021 – 86.6%,
2022 – 85.1%) and was insufficiently high, as in
the conditions of the digital economy without
information exchange, there is practically no
possibility to conduct business, and here more
than 10% of operating enterprises were deprived
of such an opportunity. Equally interesting are
the details of access to the Internet, as
significantly fewer enterprises had fixed access,
i.e., in 2018 – 62.1%, 2019 – 60.9%, and in 2021
– 61.8%. Another quality indicator – Internet
speed – shows that in 2021, 18.2% of enterprises
used connections with speeds less than 30 Mbps
and another 21.8% – from 30 Mbps to 100 Mbps.
Collectively, such data indicate limitations in
Internet access and low quality of using this data
transmission tool, as well as insufficient
development of digital infrastructure, which has
already been emphasized above.
One of the traditional and most actively used
tools of digital marketing remains the website.
According to analytical data, the share of
Ukrainian enterprises using such a tool was
critically low: 2018 – 35.7%, 2019 – 35.2%, and
2021 – 35.3%." However, anything related to
security must be referred to as "security.
Figure 2. Functional capabilities of the website of enterprises in Ukraine in 2022.
(formed by authors)
0
5
10
15
20
25
30
35 31
10,4
4,5
9,3 9,3
16,9
description of goods or services, price information
online ordering or reservation or booking
possibility for visitors to customise or design
online goods or services
tracking or status of placed orders
personalised content on the website for
regular/recurrent visitors
links or references to the enterprise's social media
profile
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An even more complex situation arose in 2021
regarding: the use of chat services for customer
communication, which was relevant for only
9.1% of enterprises; the purchase of cloud
computing services was applied by 10.2% of
enterprises; additional hiring of IT professionals
was conducted by 22.3% of enterprises; and the
production of products using robotics occurred in
just 2.9% of enterprises. Collectively, these data
indicate both a critically low level of digital
technology usage and the technological
backwardness of Ukrainian enterprises compared
to competitors from economically developed
countries, depriving them of competitive
advantages both in the domestic market and
limiting their effectiveness in global markets.
One of the specific characteristics of digital
transformation in enterprises is the need for
continuous technological updating, which is
possible in the case of improving the digital
competencies of employees. Analytical data
provide a general idea of the intensity of
knowledge improvement by ICT specialists and
other employees involved in enterprises: 3.7%
and 4.1% in 2018; 3.8% and 4.3% in 2019; 4.5%
and 4.4% in 2020. We will further emphasize the
importance of intellectualization, and these data
serve as an informational basis that this issue will
be very acute, as previously necessary attention
was not paid to improving the professional and
digital competencies of employees.
Security aspects of implementing digital
transformation consist not only in the ability to
establish a corresponding list of challenges, risks,
and threats that will be relevant for a particular
enterprise, but also in considering the fact of the
duration, and actually the continuity of changes,
which largely concern management and
personnel. This involves two important points:
firstly, the need to prevent and eliminate internal
corporate resistance; secondly, stimulating the
acquisition of new professional and digital skills.
The first point is related to the typical behavior
of each individual, i.e., the desire to maintain
consistency in the way of life and work activity,
as any change provokes the need for adaptation
and adjustments, which is accompanied by
disturbance, additional psychological and
physical loads, etc. The reluctance to change,
especially in the absence of understanding of the
process and possible consequences, causes
resistance, which can be manifested in the form
of a passive attitude towards the execution of
tasks and participation in digital transformation,
or even deliberate actions with a distinctly hostile
character. Such aspects are real, considering that
in the program of digital transformation of the
enterprise, typical measures include automation
and robotization, which provoke a reduction in
the necessary workforce, and thus pose a threat
of job loss for individual employees, and may
lead to disturbances in the moral-psychological
climate in the collective with an increase in the
number of conflict situations, a decrease in
discipline, an increase in cases of resignations
due to the inability to continue active work
activity, and a decrease in labor productivity.
Countering such a negative course of events,
which threatens both the failure to achieve the
goals of digital transformation and significant
losses due to incurred costs for implementing the
program, requires the activation of security
activities, particularly based on conducting
explanatory work, which should involve
informing every executor of the enterprise's
digital transformation of the justification of the
necessity of changes, his tasks, strategic
guidelines in general, and the advantages that he
will personally receive. The key emphasis should
be on the fact that such changes are made based
on the possibility of joint achievement of the
interests of owners, management, and
employees. Successful practice in reducing
resistance involves engaging all employees,
regardless of their level of participation in the
enterprise's digital transformation process, in
transparent communication, exchange of
opinions, consideration of positions, and
providing the opportunity to show initiative that
corresponds to the content of the planned
measures.
We have 5 key aspects of the security of
digitalization and intellectualization of business
in Ukraine:
A1.Data protection. Ensuring data
confidentiality, integrity and availability is
critical. This includes protection against
unauthorized access, data loss, as well as
ensuring data backup and recovery after possible
incidents.
A2.Cybersecurity. Protection against cyber
threats such as viruses, malware, phishing, and
other types of cyber attacks. It is important to
have modern antivirus solutions, firewalls, and
intrusion detection and prevention systems.
A3. Compliance with regulatory requirements. It
is important to consider local and international
legislation related to digital activities, including
requirements for the protection of personal data.
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A4. Physical security. Ensuring physical
protection of the infrastructure used for
digitalization (servers, network equipment, etc.).
This includes access control, CCTV systems,
anti-terrorism measures, etc.
A5.Education and training of personnel. Raising
awareness and training of employees in the field
of cybersecurity and proper handling of data.
This helps prevent accidental or unintentional
information leaks.
To perform a detailed Analytic Hierarchy
Process (AHP) analysis and create a reachability
and dependency matrix for the five key aspects
of digitalization and intellectualization of
business security in Ukraine, we need to follow
several steps:
1. Create Pairwise Comparison Matrices.
Based on expert opinions, two matrices will
be created. Each aspect will be compared
with every other aspect, and their relative
importance will be assigned values.
2. Calculate Weights and Consistency
Indicators. For each matrix, we'll calculate
the weights (or priorities) of each aspect and
the consistency ratio to ensure the judgments
are reliable.
3. Create Reachability Matrix. This matrix will
identify which aspects can reach or influence
other aspects.
4. Create Dependency Matrix. This matrix will
show how dependent each aspect is on the
others.
Lets creat Pairwise Comparison Matrices (Table
2).
Table 2.
Pairwise Comparison Matrix
A1
A2
A3
A4
A5
A1
1
2
3
4
5
A2
1/2
1
2
3
4
A3
1/3
1/2
1
2
3
A4
1/4
1/3
1/2
1
2
A5
1/5
1/4
1/3
1/2
1
Source: (formed by authors)
Each element in the pairwise comparison matrix
is divided by the sum of its column. This
normalization process turns the original matrix
into a matrix where each column sums up to 1.
The average of each row of the normalized
matrix is calculated. These averages represent the
weights or priorities of each aspect.
Multiply the original matrix by the weights
vector. Divide each element of this product by
the corresponding element in the weights vector.
Calculate the average of these quotients to find
the maximum eigenvalue (λmax).
Let's calculate these values using our matrix. We
will illustrate the calculations for normalizing the
matrix, calculating the weights, and then finding
the maximum eigenvalue, CI, and CR.
Normalized matrix is in Table 3.
Table 3.
Pairwise Comparison Matrix
A1
A2
A3
A4
A5
A1
0.43
0.49
0.43
0.38
0.33
A2
0.21
0.24
0.29
0.28
0.26
A3
0.14
0.12
0.14
0.19
0.2
A4
0.109
0.08
0.07
0.096
0.13
A5
0.088
0.06
0.049
0.04
0.067
Source: (formed by authors)
The weights are calculated as the average of each
row in the normalized matrix.
A1. Data Protection: 0.416
A2. Cybersecurity: 0.262
A3. Regulatory Compliance: 0.161
A4. Physical Security: 0.099
A5. Personnel Education & Training: 0.062.
Calculated as the average of the quotients of the
weighted sum vector by the weights
vector.λmax: 5.0683.
CI: 0.0171.
CR: 0.0153.
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So, its mean that A2 is most value security aspect
for digitalization and intellectualization of
business in Ukraine. Lest buld IDEF0 model to
improve it. To begin with, the node tree of the
model blocks (Fig. 2).
Increasing cyber security in the system of digitization and intellectualization of business
Assessment of Current
Cybersecurity Posture Planning and Strategy
Development Monitoring and Continuous
Improvement
Implementation of Security
Enhancements
IDEF0
IDEF0(A2) IDEF0(A3) IDEF0(A4)
IDEF0(A1)
Figure 3. The node tree of the model blocks.
Source: (formed by authors)
To develop an effective IDEF0 model for
enhancing cybersecurity, we can break down the
process into four main stages:
A1. Assessment of Current Cybersecurity
Posture. Evaluate the current state of
cybersecurity measures in the organization. This
includes assessing existing security policies,
network infrastructure, software, hardware, and
employee awareness levels.
Inputs: Current cybersecurity policies, network
architecture diagrams, software and hardware
inventory, employee survey data.
Outputs: Comprehensive assessment report
detailing vulnerabilities, strengths, and areas for
improvement.
A2. Planning and Strategy Development. Based
on the assessment, develop a strategic plan to
address identified cybersecurity weaknesses.
This includes updating or creating new security
policies, identifying necessary technological
upgrades, and planning training programs for
employees.
Inputs: Assessment report, industry best
practices, budgetary constraints.
Outputs: Cybersecurity improvement plan,
updated security policies, training schedule,
technology upgrade list.
A3.Implementation of Security
Enhancements.Execute the cybersecurity
improvement plan. Implement new security
technologies, update systems, and conduct
employee training sessions. Ensure that all
changes are in compliance with local and
international cybersecurity regulations.
Inputs: Cybersecurity improvement plan,
updated security technologies, training materials.
Outputs: Enhanced cybersecurity infrastructure,
trained workforce, compliance documentation.
A4. Monitoring and Continuous Improvement.
Regularly monitor the cybersecurity measures to
ensure their effectiveness. This includes
continuous threat assessment, periodic reviews
of security policies, and incorporating feedback
from employees. Stay updated with the latest
cybersecurity trends and threats.
Inputs: Security monitoring tools, employee
feedback, industry updates.
Outputs: Monitoring reports, updated security
policies, feedback implementation plan (Fig.3).
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Block A2
progress
information
Block A3
progress
information
Block A4
progress
information
Implementation of
targeted programs
Planning and Strategy
Development
Implementation of
Security Enhancements
Monitoring and
Continuous
Improvement
A1
A2
A3
A4
Matrix
Mechanism
Directives for
executing block A2 Directives for
executing block A3 Directives for
executing block A4
Cybersecurity
improvement plan
Enhanced
cybersecurity
infrastructure
Monitoring reports
Decision-making system
Resource
Improving
cybersecurity
New
programs
Figure 4. The main IDEF0 model to increasing cyber security in the system of digitization and
intellectualization of business.
Source: (formed by authors)
Each of these stages should be detailed in the
IDEF0 model with clear connections, indicating
how the output of one stage becomes the input of
the next. This systematic approach ensures a
comprehensive strategy for enhancing
cybersecurity in the context of business
digitalization and intellectualization in Ukraine.
Discussing the results obtained, it should be
noted that a critical analysis of the conditions and
actual activity of the digital transformation of
enterprises in Ukraine, in particular based on the
significant impact of military operations and the
prospects for post-war economic recovery,
clearly demonstrated the following points:
‒ the processes of digital transformation are
objective, they are occurring and will
continue to occur regardless of the activity
of individual business entities under the
pressure of the changes that are taking place
in the global economy as a whole;
‒ maintaining competitiveness requires
searching for financial resources for
technical and technological renewal and
searching for the optimal option for using
digital technologies;
‒ the process of digital transformation is
indefinite, which provokes systematic
changes with a violation of constancy in
functioning, and therefore the need for
activities and temporary stabilization of the
situation;
‒ the problem of the effectiveness of digital
transformation is determined by the
motivation and intellectual level of
management and employees, which, in the
context of the loss of human resources due
to a significant number of refugees in the EU
countries and internally displaced persons,
requires due attention to issues of
intellectualization;
‒ each enterprise forms and implements its
own digital transformation program, which
must be balanced, take into account the
current state of the enterprise, changes in the
national economy and the expansion of the
boundaries of the digital economy in the
global economic space.
Expanding business access to digital
technologies has become the basis for the
emergence of new business models, when
previously existing forms of business
organization are forced to be modernized in order
to maintain competitive advantages and adapt to
the conditions of increasing the share of the
digital economy within the traditional one. Such
processes exist in every national economy, but
occur with varying intensity due to digital
transformation at the macro level, which is
determined by the level of development of digital
infrastructure. In Ukraine, as a country lagging
behind the EU countries in economic
development, an increase in the share of the
digital economy, on the one hand, increases
threats to enterprises that maintain established
business models and are passive in the
introduction of digital technologies, but on the
other hand, creates new opportunities for
improving competitiveness through the
formation of competitive advantages, which
resonates with consumers. Conventional
digitization cannot ensure the preservation of
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competitive positions, nor can fragmented
investment in digital technologies. The priority is
to rethink holistic guidelines, where digital
technologies act only as tools, the effectiveness
of which depends on the intellectual level of the
performers, that is, management and employees.
The starting point should be an understanding of
the goals that must be achieved based on the
digital transformation of the economy, the
selection of digital technologies that ensure the
achievement of such goals, the creation of a map
for the implementation of transformations in the
key of changing business processes and the
transition to a new business model, while not
leaving without attention issues of financing
innovations, the possible emergence of threats
and the expected effect, that is, a strategy for the
digital transformation of the enterprise must be
developed. The priorities of such a strategy
should be: creativity in contact with consumers,
non-linearity of the management hierarchical
structure, individuality in the production of
products with a reduction in the chains of
intermediaries, high speed of changes in business
processes together form the basis for
implementing digital transformation at the level
of individual enterprises. Security aspects are
important, which lie in the fact that digital
transformation in an enterprise represents a
certain radical technological revolution, when
loss of control threatens the cessation of activity.
That is, in fact, there are two extremes: passivity
- leads to the loss of competitive positions with
subsequent liquidation; digital transformation in
the absence of strategic vision and control over
the process also does not guarantee an
exclusively positive result. Consequently, such
radical changes, driven by an increase in the
share of the digital economy, require a targeted
and balanced approach. Military actions burden
such a process, but also create additional
advantages for those enterprises that are moving
towards the goal, ahead of competitors.
For example, Schwarcz (2023) delves into the
evolving nature of commercial law in the digital
age. Schwarcz's insights into the flexibility and
adaptability required in commercial law offer a
parallel to our study's focus on the dynamic
nature of digital transformation and the need for
innovative security approaches.
A study by Sylkin et al. (2018) focuses on
assessing the financial security of engineering
enterprises, considering it a critical condition for
the application of crisis management. It
emphasizes the practical aspect of identifying
and addressing financial risks to prevent business
crises. Our research, on the other hand, has a
broader focus as it covers digital transformation
and business intelligence, with an emphasis on
security aspects in a dynamic external
environment. Our approach involves developing
an innovative methodology for assessing security
that differs from a direct focus on financial
stability at work.
Ferrari (2022) investigates non-technological
factors in family businesses, highlighting the
importance of considering various elements,
including security aspects, in the digitization of
business processes. This perspective
complements our research by underscoring the
multifaceted nature of digital transformation.
Bazyliuk et al. (2021) propose a methodical
approach to evaluate the efficiency of
transforming business processes in engineering
enterprises. Their focus on security during
transformation processes parallels our study’s
aim of ensuring safe digital transformation.
Also, Fajsi et al. (2022) link project management
maturity with business excellence, suggesting
that structured management approaches can
significantly impact the successful
transformation of businesses, a concept that is
relevant to our research on digital transformation.
Nam et al. (2019) offer a perspective on business
analytics adoption, viewing it through an
innovation diffusion lens. This complements our
research by providing insights into the adoption
process of new technologies and strategies in
business, a key component of digital
transformation.
Baiyere et al. (2020) explore digital
transformation from the perspective of new
business process management logics, focusing
on the strategic and organizational changes it
entails. This work takes a deep dive into how
companies can rethink their processes and
structures to effectively adapt to digital
challenges. In contrast to our study, which
focuses on security assessment in the context of
digital transformation and intelligentization,
Baiyere et al. focus more on change management
and process optimization.
Shtangret et al. (2021) discuss the practical
aspects of anticipative management in ensuring
economic security. Their findings add depth to
our understanding of proactive strategies in
managing security aspects during business
transformations.
Petruk and Shashlo (2022) view digital
transformation as a source of both opportunities
and threats to business models and enterprise
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management systems. Their work includes
analyzing the impact of digitalization on
organizational structure and strategic planning.
While this research highlights the importance of
adapting to digital innovation, your work goes
further by providing a specific methodology for
assessing the security aspects of digital
transformation, allowing for a deeper dive into
addressing specific security challenges.
In conclusion, these comparative studies
collectively underscore the importance of
innovative, flexible, and comprehensive
approaches to managing security aspects in the
rapidly evolving landscape of digital business
transformation. They highlight the need for
continuous adaptation and reassessment of
strategies to effectively navigate the challenges
posed by digitalization and intellectualization in
various business contexts.
Conclusions
The significant outcome of this study is the
identification of key security aspects that
influence the digitalization and
intellectualization of businesses in the region.
More importantly, the research formulated a
unique approach for assessing these aspects,
contributing to the field's body of knowledge.
The innovativeness of the study is highlighted
through the proposed model for achieving
optimal security in digitalization and
intellectualization efforts, specifically within the
Ukrainian business context. However, it's
important to note the study's limitation in
focusing predominantly on the business
environment in Ukraine. This specificity may
affect the generalizability of the findings to other
regions or countries. Looking ahead, the
researchers propose expanding the scope of
modeling in future studies. While the IDEF0
method was primarily used in this research,
exploring the potential of the IDEF3 method
could offer more comprehensive insights and
applications. In conclusion, this article represents
a significant step in understanding and
developing strategies for security in the digital
transformation of business. It opens avenues for
further research, particularly in exploring more
diverse modeling methods and extending the
study to different geographical contexts.
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