STRATEGIES OF BUSINESS PROCESS DIGITALIZATION IN LOCAL GOVERNMENT INSTITUTIONS

Abstract

The article is devoted to the development of strategies of business process digitalization in local government institutions. The author proves that the model of business based on the network of interaction, the domain of the digital platform, is absolutely efficient in the digital economy and provides its companies with an inapplicable competitive advantage. Progressive companies of traditional business, whose business model cannot be transformed, seeking to maintain their business and acquire competitive advantages in the digital environment, found an outlet in a hybrid approach that suggests the unification of several types of business models. Digital technologies have a significant impact on the possible kinds of digital business models. New business models define new operating models, so prioritizing the latest inhibits the digital transformation of the company: the integration of digital technologies into existing operating models can increase the efficiency of business, but will not lead to a breakthrough increase in income. New business models based on digital technologies and, among other things, on digital platforms provide companies with unique competitive advantages in the transforming economy and have only limited success in traditional business.