Productivity in Digital Transformation

The Digital Transformation process leads to an important consequence, which is a dramatic acceleration of productivity
Regarding the vital importance of labor productivity, VI Lenin wrote: “In the end, labor productivity is the most important thing, the most important thing for the victory of the new regime.”

In other words, one regime can only win over another if there is higher labor productivity. The 2008 Nobel Prize-winning American economist Paul Krugman said: “Productivity is not everything, but, in the long run, productivity is almost everything. Whether a country can improve its quality of life depends almost entirely on whether it can raise output per worker.” Nobel Prize-winning economist Paul Krugman commented on the importance of labor productivity The Digital Transformation process leads to an important consequence, which is a dramatic acceleration of productivity through: 1) Maximum support of digital technologies and data; 2) The transformation of the organizational model; and 3) Changes in the structure and nature of economic activities. The increase in efficiency of economic activities based on technology and digital data creates innovative breakthroughs in providing new ways to increase productivity and create value, while helping to The digital economy has become a major component of the economy. Robert C. Lieberman (2012) wrote: “Changes in technology, especially the information revolution, have transformed the economy, making workers more productive and gaining important positions for the workforce. mental labor rather than manual labor. At the same time, the emergence of global markets, which itself has been accelerated by information technology, has dented the once dominant US manufacturing sector, and reoriented the US economy. to the service area. The service economy also rewards educated people with high-paying professional jobs in finance, healthcare and information technology.” This has suggested important implications for examining the dialectical relationship between productivity and digital transformation in the current context and its role in increasing the share of the digital economy in the economy. To evaluate productivity, we can rely on four important components: One is n platform of productivity is the creation of value and thus the value created determines the measures of productivity. A person who works hard for 8 hours a day only creates a value of 10 dong, will not be able to have a high labor productivity as a person who also works 8 hours a day but creates a value of 50 dong. Therefore, it is necessary to understand that the increase in productivity is not more labor effort, better skills, but the most important thing is to grasp how to create new value in the modern era. The present is how to be able to catch up, adapt and find ways to create those values. Digital transformation is not basically the application of digital technology and data to help “work more” or “work better”, but the most important thing in Digital Transformation, which is towards a new form of social organization to create a new source of capital, data capital, which helps to create a breakthrough in value, allowing a breakthrough in adding value to labor. Monday, S The change of economic/business model has an important significance in increasing productivity. In innovation, the value of innovation, that is, building on the foundation of existing models and innovating to increase efficiency will always be of critical value and can only increase at a finite rate. and tends to slow down. Thus, increasing productivity solely on the basis of the old model will not allow to expand the value – the basis of productivity, and thus also limit the possibility of increasing productivity. Converting numbers starting with requires a creation overate ( disruptive innovation ) , in which the transformation of the economic/business model is an indispensable, first and conditional requirement for the real Digital Transformation to take place. Tuesday , The transformation of the way we organize, operate and create value mechanism as a result of changing economic/business models. Digital transformation will create platforms, networks and communities/social-ecosystems as new ways to organize economic/economic activity. business, how these organizations connect to each other, and how these organizations converge. This will allow a change in the way productivity is conceived, from being based primarily on the capabilities that a single individual/organization can create through its efforts to create efficiency, to synergies. between individuals/organizations through interconnection into a platform, into networks and into social communities/ecosystems. This allows to create new productivity values ​​that go beyond individual capacity, increasing productivity based on the size, spread and resonance of the network connections that individuals/organizations have. This can be connected. Wednesday, c technology and digital data, which are popular with AI, Bigdata, IoT and Clouds technologies enabling humans to increase computing power and efficiency for better, more efficient, faster and more multifaceted data-driven decision making. It is this that allows people to get help to overcome biological, physical and space-time limitations to increase their results. Therefore, the increase in productivity is also extended to the ability to effectively apply and apply technologies to work and daily life. Accordingly, from analyzing the consequences of increasing productivity thanks to the Digital Transformation process, we can also establish the bases that help shape the digital economy and the proportion of the digital economy in the economy: The change in the way new value is created and valued based on the application of technology and digital data will make the economy play a particularly important role in the process of transforming traditional economic activities. system in a new way that creates faster, higher value-added and widens value frontiers. The change in the economic/business model through disruptive innovation will help break down the existing value creation structures, open up new value creation platforms, and enable the digital economy to open up. completely new economic/business activities in the digital era, contributing to increasing the development and affirming the position of the digital economy. An important new feature of the digital economy in the digital era is the change in the way society is organized to help create value synergies through platforms, networks and networks. community/social-ecosystem. This allows for increased growth when measured in space-time dimensions. Digital economy applies advanced technologies and digital data to create new means, tools and methods to increase the efficiency of human labor activities, contribute to creating value, open expanding consumption and creating new ways of doing business/economic activity, allowing new platforms for growth and development to be created.