Ўзбекистон республикaси иқтисодий тaрaқҚиёт

 
FEATURES OF DIGITAL TRANSFORMATION IN THE FOURTH 
INDUSTRIAL REVOLUTION 
Yodgorov S.S. 
–
 Tashkent Institute of finance,
Specialty on Taxes and insurance, 
Babayeva G.Y. 
–
 Senior lecturer of the Department
of Banking accounting and audit, Tashkent Institute of finance 
 
The dynamic change in the economic structure requires constant search for 
innovative solutions and new business models based on digital technologies, as well as 
adaptation of ready-made business solutions to local conditions. 
Industry 4.0 is accompanied by a number of large-scale trends (robotics, modeling 
and forecasting, horizontal and vertical integration, the Internet of things, cyber 
security, cloud computing and data storage, augmented reality, big data and advanced 
Analytics) that have a strong impact on established business models. 
Two trends have become key factors in changing the economy: digitalization and 
digital transformation, which involve a large-scale change in all business processes of 
enterprises.
1
Adaptation of business entities to the new conditions of the digital economy 
becomes possible only through the digital transformation of business. Businesses that 
ignore the current processes of digitalization in the economy lose business efficiency 
or are forced to stop operating due to non-compliance with market demands for new 
products. 
The topic of digital transformation is one of the most controversial at the moment, 
but in fact it has been discussed for several decades. The term «digital transformation» 
refers to the implementation of digital solutions in business processes (from 
management to production), which causes qualitative changes in the company's 
activities. 
1
Makarov I. N., Shirokova O. V., Arutyunyan V. A., Putinseva E. E. Digital transformation of multi-scale enterprises 
involved in the real sector // Economic relations. - 2019. - Vol. 9. No. 1. - P. 313-326. 

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This is the use of breakthrough technologies (block chain, Internet of things, 
artificial intelligence, augmented reality, and more) to deeply transform products and 
businesses. As a result of digital transformation, conceptually new products and 
services are being created. It's not just the use of digital technologies in existing 
products and business processes. Digital transformation involves creating products and 
services with new value. 
Changes in a firm's business model can affect both the internal and external 
environment. Internal digitalization involves the transformation of production, 
management, administrative, and other processes. External digitalization involves the 
transformation of various processes and forms of interaction with customers, partners, 
suppliers, regulators, and so on.
1
All sectors of the economy are involved in the digital transformation process to 
varying degrees. First of all, digital transformation covers the media and 
telecommunications industries. In these industries, strong competition forces a change 
in the business model. In the metallurgy, oil and gas, electric power and mechanical 
engineering sectors, digitalization is mainly aimed at internal improvements in 
companies operations and does not yet affect their external environment.
2
Each enterprise has its own digital transformation process, but you can identify 
key stages that are typical for all organizations: 

creating a plan that takes into account all the business needs of the enterprise; 

training employees to work with new technologies; 

rejection of outdated technologies. 
It is also symbolic that 2020 has been declared the Year of development of 
science, education and the digital economy in our country. This year, a number of large-
scale projects have been implemented in the field of information and communication 
technologies. 
On April 28, 2020, the Presidential decree «On measures for the widespread 
introduction of the digital economy and e-government» was adopted. In accordance 
with the document, the Ministry for the development of information technologies and 
communications has created a comprehensive system for the development of the digital 
economy. 
According to the decree, the issues of e-government development, digitalization 
of economic sectors and agriculture, organization and management of IT parks were 
fully transferred to the Ministry. In 2020-2022 years it is planned to implement a total 
of 268 projects, in particular, in the development of system «Electronic government» 
–
104 project in the real sector of the economy 
–
the 87 projects for the development 
of telecommunications infrastructure 35 projects, agrarian sector 
–
24 project, IT-parks 
–
18 projects. The Ministry for the development of information technologies and 
communications is responsible for classifying the database of government 
departments, connecting them to the interdepartmental integration platform, and 
implementing common technological requirements for electronic cooperation. 
1
Keshelava A.V. Digital transformation of the enterprise. - [Electronic resource]. 
2
Garifullin B. M., Zyabrikov V. V. Digital transformation of business: models and algorithms // KE. - 2018. - no. 9. - P. 
1346. 

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At the same time, in order to ensure accelerated digital development of the 
Republic of Uzbekistan, eliminate the digital divide in the regions, improve the 
efficiency of public administration, and provide convenient public services for 
businesses and the population, the Decree of the President of the Republic of 
Uzbekistan «On approval of the Digital Uzbekistan 
–
2030 Strategy and measures for 
its effective implementation» was adopted (
№ 
PD-6079, 05.10.2020). 
In accordance with the decree, in 2020-2022, during the digital transformation of 
regions and industries, it is planned to increase the level of Internet coverage in 
localities, including increasing the number of installed broadband access ports to 2.5 
million units, laying 20 thousand kilometers of fiber-optic communication cables, and 
increasing the level of mobile broadband coverage to 95 percent through the 
development of mobile communication networks.
1
Currently, the total capacity of the international data network has been increased 
to 1,200 Gbit/s. 
The tariff for the provision of Internet services for operators and providers was 
reduced by 36.1 percent, and today it is 45.0 thousand sums (4.3 dollars) per 1 Mbit/s. 
The number of Internet service users has reached 22.1 million, including 19 
million mobile Internet users. 
2 projects were implemented for the further development of main transport 
telecommunications networks, as a result of which construction and installation works 
were carried out at 237 objects. 
Also, as part of the project for the construction of fiber 
–
optic communication 
lines, 19 thousand kilometers of fiber-optic communication lines were laid, and thus 
their total length was brought to 55.6 thousand kilometers (according to the annual 
plan-10 thousand kilometers). 
In order to develop mobile communication networks, 4.5 thousand mobile base 
stations were built and put into operation during 11 months of this year, and 3 thousand 
were upgraded. As a result, the level of mobile coverage of localities in the Republic 
has reached 97 percent, and the level of mobile broadband coverage has reached 87 
percent. 
In order to increase the level of broadband Internet coverage in the Republic, 1 
million ports were installed, and thus the number of broadband access ports reached 3 
million units. 
A data Center with a capacity of 5 Petabytes was commissioned. 
Also this year, a joint venture for the production of fiber-optic communication 
cables started its work in the free economic zone «Jizzakh». 
Large-scale work is being carried out within the framework of providing high-
speed Internet connection to social facilities. In particular, there are 10,154 General 
education schools, 5,781 pre-school educational institutions and 3,527 health facilities 
in the Republic. As of December 1, this year, about 12,867 kilometers of fiber-optic 
communication lines were laid. As a result, 7,150 schools (70 per cent), 4,581 pre-
1
Decree of the President of the Republic of Uzbekistan «On approval Of the strategy "Digital Uzbekistan-2030" and 
measures for its effective implementation», 
№ 
PD-6079, dated 05.10.2020. 

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school educational institutions (80 per cent) and 2,747 health facilities (78 per cent) are 
provided with high-speed Internet connection.
1
By the end of this year, it is planned to increase the level of high-speed Internet 
coverage of preschool educational institutions and health facilities to 100 percent. In 
addition, 386.5 million dollars of foreign investments are planned for the development 
of the country's telecommunications infrastructure in 2021. Among them, projects 
worth $ 136.9 million will be implemented for the development of mobile 
communication networks. 
The study made it possible to draw the following conclusions: 
1. Digital transformation in organizations is a necessary condition for existence 
in the modern market environment. 
2. Digital transformation is not just about using digital technologies, but about 
creating conceptually new products and services. 
3. There is a low readiness of organizations for digital transformation due to the 
low level of automation of production and administrative processes and insufficient 
investment in digitalization. 
However, digital technologies not only create new problems, but also open up 
new ways to solve them: «smart» (based on block chain) automatically collected taxes, 
«smart» (based on big data analysis) automatically funded expenses and automatically 
issued loans, «smart» based on social ratings, regulation and management, etc.
Thus, the modern digital economy and the underlying digital technologies are 
indeed a very strong, but also very complex tool. To a greater extent, it is the tool, and 
not just the final product. And those countries that learn how to use it correctly today 
will achieve results tomorrow that will enable them to determine trends and guide the 
development of the world economy.