The definition of smart economy and digital transformation of business in the concepts Industry 4.0 and 5.0

Abstract

The object of the study is the relationship between economic entities in the smart economy and their digital transformation in the conditions of Industry 4.0 and 5.0. One of the most problematic areas is the definition and structuring of the smart economy and establishing the effects of digital business transformations in the conditions of Industry 4.0 and 5.0. The research used methods of grouping, system analysis, historical approaches to scientific research, synthesis and analysis, forecasting, etc. A qualitatively new definition and structuring of the smart economy was obtained, which is connected with the use of new business technologies in the conditions of total digital transformation in the concepts of Industry 4.0 and 5.0. In particular, new classification approaches to the structuring of the smart economy and digital transformation of business in the concept of Industry 4.0 and 5.0 are singled out. The conducted study of the state of the smart economy and digital transformation of business according to the concepts of Industry 4.0 and 5.0 indicate a significant potential for the use of digital technologies in business and a significant economic effect of their use, which requires further improvements. This puts the potential for investment in robotic manufacturing to reach 120.6 billion USD in 2025, followed by autonomous operations and 360-degree customer management at 90.9 and 74.7 billion USD, respectively. The industries that will have the highest spending on digital business transformation in the smart economy throughout the forecast period are discrete and technology manufacturing, followed by professional services and retail. The economic sectors that will experience the fastest growth in spending on digital business transformation in the smart economy, according to the forecast for 2020–2025, are construction (21.0 %), securities and investment services (19.2 %), and banking (19.0 %). Compared to similar well-known developments, all 19 industries considered in the digital transformation of business in the smart economy are predicted to provide double-digit growth over the five-year forecast. This provides significant economic advantages in the adaptation of economic agents to the conditions of introducing digital business transformation in the context of Industry 4.0 and 5.0.