Influence of digitalization upon formation of corporate strategy and new business models of modern organizations

Abstract

This paper asserts that the issue of change of power in a corporate management configuration is quite urgent; it emphasizes that corporate management should identify the right combination of social interests and corporate business interests within the context of social, economic, and political processes currently taking place in Russia. The pandemic and digitalization exert a profound influence upon those processes; the paper states the fact that the Russian practice of corporate management – how decisions are made and how their execution is controlled – is characterized with a low quality, owing to the practice of “manual management” that prevails at all the hierarchical levels. The main idea of this article is that Russian managers should gradually substitute the traditional hierarchy with a “natural” one, when one’s authority depends not on their official position, but on their contribution to work, when special emphasis is placed on self- control, on establishment of a horizontal control system based on the Agile approach. Managers ought to realize that they should adopt new business models by integrating cutting-edge technologies (digitalization and other forms of work) in all the aspects of their corporate business activities.