Digital Transformation of the Economy: Dividends and Threats

Abstract

The purpose of this article is to analyze the key conditions for the transition to a fundamentally new technological and socio-economic structure. Despite the intensive discussion that has been going on for more than a decade, the debate about what the digital economy is and what consequences society will face during digital transformation do not subside. Questions are raised about what benefits digital transformation will bring for all economic actors and why, despite the obvious technological, financial and social benefits created by the digital transformation of the economy, threats arise. The authors distinguish that there is no single definition of “digital economy”, since it is impossible to determine the scale, benefits and risks, as well as the ultimate goal of building a digital economy. Based on the literature review held by authors some rules are proposed. The consequences of digital transformations affecting each economic agent in the system are systematized, in various planes of social life, bringing in economic, social, technological, political and other effects for each of the subject: companies, state and society. As now there is no single definition of “digital economy” the comprehensive analysis of this term held by authors can shed light on this topic.