DIGITAL TRANSFORMATION OF THE ECONOMY: THEORETICAL LIMITS AND PRACTICAL REALITIES
Abstract
The article explores the essence and significance of the digital transformation level indicator as a key metric for assessing a country's readiness for integration into the global digital space. The research outlines both the theoretical limits of this indicator and its practical values specific to the current stage of Ukraine’s economic development. It is emphasized that digital transformation extends far beyond mere technological modernization, encompassing institutional, social, and governance dimensions. The study identifies the upper (theoretical) limit of the indicator, which reflects the strategic target benchmarks to be achieved in the long-term perspective, and the lower (practical) limit, which demonstrates the actual level of the economy’s digital development. In the context of martial law, the importance of accelerating digitalization is highlighted as a crucial tool for ensuring economic resilience, enhancing competitiveness, and adapting to global challenges. The article also introduces the concept of digital strategic navigation of the economy, which implies a structured sequence of actions aimed at aligning national development with global digital transformation trends. This approach integrates key digital performance indicators, including the level of digital transformation of the economy, while recognizing the complexity of determining its optimal upper threshold the target value to be pursued in strategic planning. The research proposes a methodological framework for assessing these limits and determining the realistic and desirable benchmarks of digital transformation. It underscores the necessity of combining quantitative metrics with qualitative analysis to capture the multidimensional nature of digital progress. The findings can be applied to improve public policy in the field of the digital economy, guide investment priorities, and support the formation of effective post-war recovery strategies. Ultimately, this study positions digital transformation not only as a technological necessity but also as a strategic imperative for national economic security and long-term sustainable growth.
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