Specificity of mechanisms for institutional management of digital transformations

Abstract

This article examines the central role of the concept of “institution” in institutional theory, which serves as the basis for understanding the mechanisms of managing economic change. It is emphasized that financial systems are undergoing steady development, while simultaneously being transformed by institutional mechanisms.

The peculiarities and implications of institutional management of digitalization processes have been explored, which include: the rapid dynamics of digital innovation, nonlinearity and complex forecasting, changes in organizational models (transition to edge structures and digital platforms), advancement of technologies based on artificial intelligence and Big Data, deepening the interaction between science and business, expanded financing (crowdfunding) and the global nature of the transformation.

The specifics of changes in the processes and functions of the institutional management system are analyzed: shortening the strategic planning period, digitalization and automation of management processes, their advancement continuity, the formation of new information and analytical subsystems, the introduction of new ways of converting traditional functions and the emergence of new transformational functions.

Respect is given to the structural changes in the system of institutional management, such as an increase in the information sector, deepening integration, and the creation of new boundary forms of business organization, growth in business obligations, and decline in virtualization. The specificity of changes in the core subsystem has been identified, including increasing support for changes, enhancing it to the competence of core workers, the need to create institutions for digital transformation (such as the Ministry of Digital Transformation of Ukraine), and the integration of science and management.

A multi-stage algorithm for institutional management of digital transformations has been proposed, which promotes initiation, preparation, adjustment of strategies, staffing, functional and transformation processes, immediate implementation and stabilization of changes. The need for integration of science, business and government for a successful transition to a new economic model is emphasized.