BUSINESS MANAGEMENT BASED ON INNOVATION AND DIGITALIZATION AS A FACTOR OF SUSTAINABLE DEVELOPMENT: STRATEGIZATION, PLANNING AND ORGANIZATION

Abstract

The article substantiates the role of digitalization and innovation-based business management as a systemic factor of sustainable development in modern economic conditions. Digital transformation is considered not merely as a technological tool, but as a strategic mechanism that integrates economic efficiency, environmental responsibility and social inclusion into enterprise development models. The study analyzes the impact of advanced digital technologies – artificial intelligence, big data analytics, cloud computing, the Internet of Things and digital twins – on business productivity, resource optimization, decision-making quality and resilience to crisis challenges.

Particular attention is paid to the comparative analysis of investment trends in digital transformation in the European Union and Ukraine. It is proved that while the EU focuses on large-scale infrastructure and green digital investments, Ukraine demonstrates high adaptability through the development of human capital, digital public services and the IT sector, which creates a unique basis for post-war recovery on sustainable principles. Statistical data confirm the growing role of digital tools in maintaining business continuity, expanding e-commerce, enabling remote management and increasing innovation activity even under wartime conditions.

The research identifies the key economic effects of digitalization, including productivity growth, cost reduction, new digital business models and enhanced competitiveness. Social outcomes are associated with the transformation of employment structures, the spread of flexible and remote work, the development of digital skills and increased labor market inclusiveness. Environmental benefits are manifested through energy efficiency, smart resource management, logistics optimization and the implementation of circular economy principles.

At the same time, the study outlines the main risks of digital transformation: cybersecurity threats, dependence on digital infrastructure, high investment costs and the shortage of qualified personnel. It is argued that fragmented digitalization does not ensure sustainable results. Only a systemic approach that combines digital strategy integration, personnel competence development, data ethics and information security can provide long-term sustainability and competitiveness of business structures.

Digitalization is thus interpreted as a fundamental driver of the transition from a “profit-cost” model to a “value-responsibility” paradigm, ensuring balanced economic, social and environmental outcomes.