Abstract
This research aims to assess the impact of digitization on management efficiency and strategic decision-making, a pivotal aspect in the contemporary business world. By integrating digital technologies with traditional mathematical models and analyzing survey data from 250 management professionals, the study provides a comprehensive understanding of the multifaceted effects of digitization.The principal outcomes from the mathematical analyses, including Marginal Cost Analysis, Break-Even Analysis, and Linear Programming, indicate substantial improvements in operational efficiency following digitization. Specifically, Marginal Cost Analysis shows a significant decrease in the cost of production, and Break-Even Analysis reveals a reduction in the break-even point by approximately 15%, underscoring enhanced cost-effectiveness. Linear Programming results demonstrate a 20% improvement in resource allocation efficiency. The survey analysis complements these findings, revealing a positive perception of digitization in enhancing managerial adaptability, efficiency, and decision-making effectiveness, with average rating improvements of 0.3, 0.4, and 0.5 points, respectively, on a 5-point scale. Regression analysis further highlights the positive influence of technological affinity on decision-making effectiveness. However, ANOVA results suggest variability in the impact of digitization across different industry sectors, necessitating sector-specific digital strategies.Digitization significantly elevates management efficiency and strategic decision-making capabilities. The integration of digital tools with traditional management techniques results in more informed, efficient, and strategic business decisions. However, the varied impact across sectors and the rapid pace of technological advancement calls for continuous adaptation and sector-specific strategies. These findings provide vital insights for businesses navigating the digital era, emphasizing the strategic integration of digital tools in management practices for sustained success and competitiveness.
Reference37 articles.
1. Belli, L., Davoli, L., Medioli, A., Marchini, P. L., & Ferrari, G. (2019). Toward Industry 4.0 with IoT: Optimizing business processes in an evolving manufacturing factory. Frontiers in ICT, 6, Article 17. https://doi.org/10.3389/fict.2019.00017
2. Bharadiya, J. P. (2022). Driving business growth with artificial intelligence and business intelligence. International Journal Of Computer Science And Technology, 6(4), 28–44. https://www.ijcst.com.pk/index.php/IJCST/article/view/232
3. Blažič, B. J., & Blažič, A. J. (2020). Overcoming the digital divide with a modern approach to learning digital skills for elderly adults. Education and Information Technologies, 25, 259–279. https://doi.org/10.1007/s10639-019-09961-9
4. Brynjolfsson, E., & McAfee, A. (2014). The second machine age: Work, progress, and prosperity in a time of brilliant technologies. W W Norton & Company. https://psycnet.apa.org/record/2014-07087-000
5. Brynjolfsson, E., & Mcafee, A. (2017). Artificial intelligence, for real. Harvard Business Review, 1, 1-31. https://starlab-alliance.com/wp-content/uploads/2017/09/AI-Article.pdf