Russian companies will lose out to competition without digital innovation

8 october 2018 | Prime

If Russia is to remain competitive and not be left behind in the digital transformation, the country's companies need to change their strategies, they need to learn to use data and introduce cross-cutting technologies in a variety of industries; that's according to Vladimir Mesropyan, Head of the Analytical Center's Project Management Office for the Digital Economy program.

Vladimir Mesropyan
Vladimir Mesropyan
Project Management Office for Implementing the Digital Economy of the Russian Federation Program

"The world is undergoing some serious changes. We are living in an era of digital change. The pace of technological innovations are increasing, production, logistics and consumption are undergoing major restructuring. As the so called fourth industrial revolution is spreading, we are seeing technologies and business models change almost every year in the traditional industries," the expert told AEI Prime.

For example, in the relatively recent 2005, when most payments were made in cash, few people could have anticipated that in less than a decade we would see the development and mass adoption of contactless payment technologies. With the new solutions available today, we can find out if a patient is predisposed to cancer in seconds. Digital technologies have also drastically reduced the costs of the oil production sector.

"New technologies, the Internet of things, cloud technologies, distributed ledger technologies, artificial intelligence, big data, all of them are radically changing business and management processes," Mr. Mesropyan notes. What changes first is the speed of the decision making process.

If Russian private and public companies want to remain competitive in the domestic and global markets, they need to seriously revise their management systems and train their staff in new competencies, while simultaneously expanding investments in innovations.

"An important aspect of supporting the domestic energy sector is investments in cross-cutting technologies." "Unless we see such technologies as big data, industrial internet, wireless communications, artificial intelligence, quantum technologies, distributed ledger, robotics and sensory capabilities introduced in the energy sector, it will soon be rendered unable to compete," Mr. Mesropyan said.

For this reason, the new version of the Digital Technologies program calls for measures to support projects to transform the priority industries of the economy and social sectors using domestically sourced products, services and platform solutions developed using cross-cutting digital technologies.

According to the expert, a big problem of the traditional companies is the use and analysis of data.

"The digital transformation is a new reality in which an important part is played by digital data. Data in digital form are becoming a production factor", notes the expert, adding, that an ability to work with big data brings the company, industry and the country as a whole to a whole new level.

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