Enterprise Development Management: Problematic Issues of Strategic, Operational, and Risk Management in the Context of Digitalization

Abstract

Abstract: The purpose of the study was to form a multi-vector management system for enterprise development, which functions under conditions of uncertainty and the realities of wartime, aimed at the primary resolution of problematic issues in strategic, operational, and risk management exacerbated by the phenomenon of the digitalization of economic processes. To achieve this goal, empirical research methods, content analysis, synthesis, and generalization were used. As a result of the study, the directions of enterprise development management under the influence of digitalization were specified and integrated into a three-vector digital development model. This model is built upon the guidelines of strategic digital management, operational digital management of enterprise production activities, and the utilization of digital risk management capabilities. The authors summarized the list of main digital risks for enterprise development management and grouped them into two lists: risks for operational production management: (cyber risks, digital industrial espionage, errors in the use of digital tools, the risk of production staff resistance to digital changes, reduction of jobs, increased qualification requirements for employees, fragmented integration of digital technologies into production processes, the risk of a "technological bubble," the risk of additional costs for production modernization) and risks for strategic enterprise management: (such as obsolescence of goals and loss of their relevance, the risk of "digital lag," reputational risks from data loss, managerial staff resistance to digital changes, risks of ethical and honest use of AI, the risk of additional costs for updating digital products and services, the risk of the enterprise losing its individuality and unique strategic advantages). In conclusion, the expediency of initiating the practice of developing digital development strategies for enterprises was argued. These strategies would specify how the approach to the digitalization of their financial, economic, and production activities should change and be updated annually (over a 3–5 year interval). The proposed approach will allow for the timely identification of digital risks and the planning of resources necessary to counteract them over a long-term time horizon, as well as the automation of certain stages of the risk management process to save time and react promptly to the volatility of the external and internal business development environments. Keywords: enterprise development management, strategic management, operational management, risk management, digitalization, digital transformation, management effectiveness, business processes.