Investment Management of Business Digital Innovations

Iryna Sotnyk1, Kostiantyn Zavrazhnyi1, Volodymyr Kasianenko1, Hynek Roubík2, Oleksandr Sidorov3
1. Sumy State University (Ukraine)
2. Czech University of Life Sciences Prague (Czechia)
3. INGENUM (Spain)
95 - 109
Cite as:
Sotnyk, I., Zavrazhnyi, K., Kasianenko, V., Roubík H. & Sidorov O. (2020). Investment Management of Business Digital Innovations. Marketing and Management of Innovations, 1, 95-109.


This paper considers the issue of investment management of digital innovations in modern business. The main purpose of the research is the development of approaches to the investment management of the innovative digitalisation processes of the enterprises and justification of the economic efficiency of investment projects on innovative information technologies use in the context of their relationship with existing information solutions for enterprise management. The relevance of the research is the necessity to change the methods of doing and managing the modern business, taking into account the achievements of the Third and Fourth Industrial Revolutions, which form innovative business philosophy based on informatisation and digitalisation of manufacturing and delivery processes. The implementation of innovative digital technology in business processes requires significant costs and it raises the issue on their minimization. Systematization of literary sources and approaches for the investment management of industrial digitalisation indicates the absence of complex solutions for this problem. In this regard, based on a comparative analysis, the authors have revealed the features of business development in the conditions of the Fourth Industrial Revolution and justified the need for modern information systems integration for enterprise management on the platform of business processes digitalisation. In order to create the road map of business digital innovations, it is suggested that the Theory of Constraints should be used to determine which of the operating information systems of the enterprise (Business intelligence – BI; Enterprise Resource Planning – ERP; Manufacturing Execution System – MES; Industrial Internet of Things – IIoT) is to begin the digital transformation with. The stages of the project development for the digital transformation of an enterprise are designed based on the structural approach. The economic justification for the selection of alternative digitalisation projects is based on an assessment of the labour costs for implementing two variants of digital innovation of a business entity: a complex automation project with up-front modelling and an integration automation project with the gradual implementation of a new information system. The assessment results have shown the economic benefits of implementing the integration project as it provides 1.58 times fewer labour costs and can be realized by use of universal package solutions such as Business Automaton Software (BAS). The analysis of the results of the implemented business digitalisation projects in Ukraine and the world as well as the potential of planned ones has allowed generalising the effects of their implementation and confirmed the need for further development of the mechanisms for the investment management of business digital innovations.

automation, business, digitalisation, efficiency, greening, ERP, information technology, innovation, investment management, project.

  1. Apal'kova, V. V. (2015). Concept of the digital economy development in the European Union and prospects for Ukraine. Bulletin of Dnipropetrovsk University. Series «Innovation Management»,4, 9–18. 
  2. BAS (2019). BAS solutions. Retrieved from:
  3. Bilan, Y., Streimikiene, D., Vasylieva, T., Lyulyov, O., Pimonenko, T., & Pavlyk, A. (2019). Linking between renewable energy, CO2 emissions, and economic growth: Challenges for candidates and potential candidates for the EU membership. Sustainability,11(6), 1528. [Google Scholar] [CrossRef]
  4. Blix, M. (2015). The economy and digitalisation – opportunities and challenges. Retrieved from:
  5. Brettel, M., Friederichsen, N., Keller, M., & Rosenberg, M. (2014). How virtualization, decentralization and network building change the manufacturing landscape. An Industry 4.0 Perspective. International journal of mechanical, industrial science and engineering, 8 (1), 37–44. [Google Scholar] [CrossRef]
  6. Deutsche Welle (2019). Again Made in Germany: industrial production returns to Germany. Retrieved from:
  7. DTEK (2019). DTEK will spend UAH 350 million on digital transformation. Where will the money go? Retrieved from:
  8. Gartner (2019). IT Glossary. Retrieved from:
  9. Sotnyk I. M., & Goncharenko O. S. (2015). Formation of ecology and economic mechanism of dematerialization at the enterprise. Marketing and innovation management, 2, 258–266. [Google Scholar]
  10. Gupta, Ch. (2018). What does IIoT mean for MES? Automation World, 8.01. Retrieved from:
  11. Hewlett Packard Enterprise (2019). What is digital transformation? Retrieved from:
  12. Hounshell, L. (2018). The Industrial Internet of Things, digitalisation and the future of business. Retrieved from:
  13. Ibragimov, Z., Lyeonov, S., & Pimonenko, T. (2019). Green investing for SDGS: EU experience for developing countries. Economic and Social Development: Book of Proceedings, 867–876.[Google Scholar]
  14. Ibragimov, Z., Vasylieva, T., & Lyulyov, O. (2019a). The national economy competitiveness: effect of macroeconomic stability, renewable energy on economic growth. Economic and Social Development: Book of Proceedings, 877–886. [Google Scholar]
  15. IT-Enterprise (2019). Retrieved from:
  16. Karcheva, G. T., Ogorodnya, D. V., & Open'ka, V. A. (2017). The digital economy and its impact on the development of national and international economics. Finansovyy prostir, 3, 13–21.
  17. Kolyadenko, S. V. (2016). Digital economy: preconditions and stages of formation in Ukraine and in the world. Ekonomika. Finansy. Menedzhment: aktyalni pytannia nauky I praktyky, 6, 105–112.
  18. Kraus, N. M., Goloborod'ko, O. P., & Kraus, K. M. (2018). Digital economy: trends and prospects for the avant-garde nature of development. Efektyvna ekonomika, 1. Retrieved from:
  19. Kroll, H., Horvat, D., & Jager, A. (2018). Effects of automatisation and digitalisation on manufacturing companies' production efficiency and innovation performance (No. 58). Fraunhofer ISI Discussion Papers – Innovation Systems and Policy Analysis. [Google Scholar]
  20. Lavi, Y. (2017). Industry 4.0: Harnessing the power of ERP and MES integration Industry Week, 20.07. Retrieved from:
  21. Melnyk, L. H., Dehtiarova, I. B., Horobchenko, D. V. & Matsenko, O. M. (2017). Innovations in the context of modern economic transformation processes of enterprise, region, country: the EU experience. Marketing and management of Innovations, (4), 260-271. [Google Scholar] [CrossRef]
  22. Hakobyan, N., Khachatryan, A., Vardanyan, N., Chortok, Y., & Starchenko, L. (2019). The implementation of Corporate Social and Environmental Responsibility practices into competitive strategy of the company. Marketing and Management of Innovations, 2, 42-51. [CrossRef]
  23. Panorama Consulting Solutions (2016). Business intelligence: the missing link to your ERP strategy? Retrieved from:
  24. Posada, J., Toro, C., Barandiaran, I., Oyarzun, D., Stricker, D., de Amicis, R., & Vallarino, I. (2015). Visual computing as a key enabling technology for Industry 4.0 and industrial internet. IEEE computer graphics and applications, 35 (2), 26–40. [Google Scholar] [CrossRef]
  25. Prokopenko, O. V., Biloshkurska, N. V., Biloshkurskyi, M. V., & Omelyanenko, V. A. (2019). The role of banks in national innovation system: general strategical analytics. Financial and credit activity: problems of theory and practice, 3(30), 26–35. [Google Scholar] [CrossRef]
  26. Raymond, L., Croteau, A. M., & Bergeron, F. (2009, May). The integrative role of IT in product and process innovation: growth and productivity outcomes for manufacturing. In International Conference on Enterprise Information Systems. (pp. 27-39). Springer, Berlin, Heidelberg. [Google Scholar] [CrossRef]
  27. Rubanov, P., Vasylieva, T., Lyeonov, S., & Pokhylko, S. (2019). Cluster analysis of development of alternative finance models depending on the regional affiliation of countries. Business and Economic Horizons (BEH), 15(1232-2019-892), 90–106. [Google Scholar]
  28. Rudenko, M. V. (2018). Digitalisation of economy: new opportunities and perspectives. Economy and state, 11. Retrieved from:[CrossRef]
  29. Samuels, M. (2018). What is a chief digital officer? Everything you need to know about the CDO explained. Retrieved from:
  30. Schwab, K. (2016). The Fourth Industrial Revolution: what it means, how to respond. World Economic Forum. Retrieved from:
  31. Sotnyk, I.М., Volk, О.М., & Chortok Yu.V. (2013). Increase of ecological-economic efficiency of ICT as a resource saving innovative direction. Actual Problems of Economics, 9, 229-235.  
  32. Theory of Constraints (2019). Lean Production. Retrieved from:
  33. Tokmakova, I. V., Shatokhina, D. A., & Melnik, S. V. (2018). Strategic management of the enterprises’ development in the conditions of economy’s digitalisation. Bulletin of the Economy of Transport and Industry, 64, 283–291.
  34. Veretyuk, S. М., & Pilinsky, V. V. (2016). Determination of the priority directions for digital economy’s development in Ukraine. Scientific notes of the Ukrainian Research Institute of Communication, 2, 51–58. 
  35. Zielinski, M. (2019). Digitalise or cease to exist. Economic truth. Retrieved from: