THE IMPACT OF DIGITALIZATION ON THE ORGANIZATIONAL ARCHITECTURE AND FINANCIAL PERFORMANCE OF BUSINESS ENTITIES IN UKRAINE

Abstract

This article examines the impact of digitalization on the organizational architecture and financial performance of business entities in Ukraine under martial law and the need for accelerated adaptation to changing market conditions. It is argued that digital transformation–business process automation, cloud services, CRM, ERP, and big data analytics–is a critical factor in competitiveness: companies that actively invested in digitalization during 2020–2025 demonstrate higher operational efficiency and financial stability. The transformation of corporate organizational architecture is analyzed: the shift from hierarchical to networked and flexible structures, the decentralization of decision-making, the formation of cross-functional teams, and the emergence of new roles–Chief Digital Officer, Data Scientists, DevOps engineers, and cybersecurity specialists. It has been established that digitalization reduces management layers and transforms organizational culture toward openness to innovation, while simultaneously creating challenges related to resistance to change and the retention of human capital. The impact of digital technologies on operational efficiency and cost structure was examined: the automation of routine operations reduces operating costs by 15–30%, while the use of SaaS models shifts the focus from capital expenditures to operating expenses. Positive trends in the financial performance of digitized enterprises were identified–revenue growth of 10–25%, improvements in ROA, ROE, and EBITDA margin, increased investment attractiveness, enhanced cash flow management, and greater financial stability. Key barriers have been identified: a shortage of IT personnel, cyber risks, infrastructure limitations, challenges in integrating legacy systems, insufficient digital literacy among management, and regulatory uncertainty. It is concluded that successful digital transformation requires a comprehensive approach that combines technological innovation, organizational change, and human capital development, and is a necessary condition for the sustainable growth of financial results and the competitiveness of Ukrainian enterprises in the long term.