Economic Analysis: Theory and Practice
 

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Digital potential of the enterprise

Vol. 18, Iss. 12, DECEMBER 2019

Received: 22 July 2019

Received in revised form: 30 August 2019

Accepted: 11 November 2019

Available online: 25 December 2019

Subject Heading: BUSINESS PERFORMANCE

JEL Classification: O12, O14

Pages: 2223–2236

https://doi.org/10.24891/ea.18.12.2223

Popov E.V. Institute of Economics, Ural Branch of Russian Academy of Sciences, Yekaterinburg, Russian Federation
epopov@mail.ru

https://orcid.org/0000-0002-5513-5020

Semyachkov K.A. Institute of Economics, Ural Branch of Russian Academy of Sciences, Yekaterinburg, Russian Federation
k.semyachkov@mail.ru

https://orcid.org/0000-0003-0998-0183

Moskalenko Yu.A. Ural Federal University named after the First President of Russia B.N. Yeltsin, Yekaterinburg, Russian Federation
justinfx@yandex.ru

ORCID id: not available

Subject Digitalization of economy necessitates new models for assessing the capabilities of enterprises to use advanced information and communication technologies. Therefore, it is important to scrutinize economic relations between business entities in terms of applying digital technologies within the activities of individual enterprises.
Objectives Our purpose is to introduce the concept of digital potential of the enterprise and develop possible methods for its quantification.
Methods The study employs general scientific methods of research.
Results We present our own methodology for assessing the digital potential of an enterprise based on the adaptation of the Networked Readiness Index and the global ICT Development Index for mini-economic level of management. The paper includes methods to measure the indicators of enterprise digital capacity as a percentage of the maximum level and methods to measure the parameters of these indicators on a percentage basis and in binary units. We considered a large holding company operating in the distribution system and made an empirical assessment of its level of digital potential application.
Conclusions Introducing the concept of enterprise digital potential and a methodology for its measurement will provide the management of enterprises with effective tools enabling to analyze and develop the use of advanced information and communication technologies.

Keywords: digital economy, digital potential, Networked Readiness Index, mini-economy

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