DIGITAL INNOVATIONS AND THEIR ROLE IN THE DEVELOPMENT OF MODERN BUSINESS

Abstract

The article presents a comprehensive study of the role of digital innovations in ensuring the development of modern business in the context of increasing globalization processes, digital transformation of the economy and increasing uncertainty of the external environment. It is substantiated that digitalization is an objective necessity and a strategic direction of enterprise development, which determines their ability to achieve long-term growth, increase the efficiency of economic activity and form sustainable competitive advantages. The paper summarizes theoretical approaches to determining the essence of digital innovations and reveals their significance in the context of organizational and economic development of business. It is established that the introduction of digital technologies contributes to the transformation of traditional business models, improvement of management systems, increased transparency of business processes and optimization of resource use. Considerable attention is paid to the analysis of the impact of digital innovations on key functional areas of enterprise activity, in particular marketing, logistics, customer communications and personnel management, which allows to increase business flexibility and speed of management decision-making. It is proven that the use of digital marketing tools, e-commerce and digital platforms is an important factor in increasing the economic efficiency and anti-crisis resilience of enterprises, especially during the period of economic shocks caused by the COVID-19 pandemic. The current state of business digitalization in Ukraine is assessed and the main barriers to its development are identified, including the insufficient level of investment in digital technologies, limited digital competences of personnel and the fragmentation of the implementation of digital solutions. It is proven that the active use of digital innovations creates the prerequisites for the formation of new business models, increasing the innovative activity of enterprises and strengthening their integration into the global digital space. It is substantiated that overcoming these problems creates the prerequisites for the intensification of innovative activity, increasing the competitiveness of enterprises and their integration into the global digital space. The practical significance of the results lies in the possibility of their use in the formation of strategies for the digital development of enterprises and improving mechanisms for state support for business digitalization processes.