Virtualization paths entrepreneurial activity in Uzbekistan

Abstract

The article considers the draft concept "Digital Uzbekistan 2030" and describes the basic directions of digital development of Uzbekistan. The author examines the technological and sectoral models of digitalization, proposes a conceptual approach to the virtualization of the activities of enterprises in Uzbekistan based on the model of "digital twins".

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Bobokhujaev Ш. (2023). Virtualization paths entrepreneurial activity in Uzbekistan. in Library, 21(2), 145–151. Retrieved from https://www.inlibrary.uz/index.php/archive/article/view/23134
Shukhrat Bobokhujaev, Branch of the Russian State University Oil and Gas (National Research University) named after I.M. Gubkin in Tashkent city

Shukhrat Ismoilovich Bobokhuzhaev has vast practical experience in various fields (in production, banking and finance, financial and stock market). Since 2012, he has been working in the "Economics of Oil and Gas" department of the Branch of the Russian State University of Oil and Gas (NRU) named after I.M. Gubkin in the city of Tashkent. Also, since January 2019, he has been the head of the sector for organizing research activities for gifted students.

In 2007-2011, a dissertation work was approved for defense on the topic: "The specifics of the organization and management of banks in the securities market of Uzbekistan." However, due to the change in the conditions for awarding academic degrees in the republic, the defense of dissertations was suspended and today preparations are underway for defense.

From 2000 to the present day he has participated in 4 international (Germany, Denmark, Italy, Spain, Russia, Kyrgyzstan, the World Bank) and 2 republican research projects. He has published over 275 scientific papers, including in the USA, Germany, Switzerland, Holland, France, Russia, South Korea, India, Vietnam, Belarus, Kazakhstan, etc.In 2014, a letter of thanks was received from the editor-in-chief of the Russian magazine "Finance" Yu.M. Artyomov, who noted the good quality of the articles, the high creative activity and the contribution of Sh.I. Bobokhuzhaev to the expansion of bilateral contacts in the field of higher education of the Republic of Uzbekistan and the Russian Federation.

Since 2015, he has been an advisor to the International Russian Academy of Natural Sciences on economic issues. In 2016, he was included in the experts of the Group of Experts on Agricultural Trade in Europe and Central Asia (Food and Agriculture Organization of the United Nations (FAO) on support of agricultural enterprises.Since 2016, he is a member of the expert councils of specialized journals of the International Russian Academy of Natural Sciences, a member of the editorial council of the scientific international journal for high school students and teachers "International School Scientific Bulletin".

In 2017 Shukhrat Ismoilovich Bobokhuzhaev was included in the 13th volume of the Encyclopedia "Famous Scientists" (Scientists of Russia).In February 2018, Sh.I. Bobokhuzhaev was awarded the honorary title "Honored Worker of Science and Education".From 2016 to 2023, he was a laureate of the "Gold" medal and certificate of the participant of the world Frankfurt book exhibition "FRANKFURTER BUCHMESSE", the London Book Fair, the international book exhibition BookExpo America (USA), the international book exhibition BUCH WIEN (Austria), the Moscow international book exhibition at VDNKh, Moscow International Education Salon, etc.

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Abstract

The article considers the draft concept "Digital Uzbekistan 2030" and describes the basic directions of digital development of Uzbekistan. The author examines the technological and sectoral models of digitalization, proposes a conceptual approach to the virtualization of the activities of enterprises in Uzbekistan based on the model of "digital twins".


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СЕКЦИЯ

III

ТЕОРИЯ

И

ПРАКТИКА

ИННОВАЦИОННОЙ

ЭКОНОМИКИ

Sh.I. Bobokhujaev

Associate Professor, Department of Oil and gas economics, sector

manager Gubkin Russian State University of Oil and Gas

(National Research University) in Tashkent,

The Republic of Uzbekistan, Tashkent

VIRTUALIZATION PATHS ENTREPRENEURIAL ACTIVITY

IN UZBEKISTAN

The article considers the draft concept "Digital Uzbeki-

stan 2030" and describes the basic directions of digital devel-
opment of Uzbekistan. The author examines the technological
and sectoral models of digitalization, proposes a conceptual
approach to the virtualization of the activities of enterprises in
Uzbekistan based on the model of "digital twins".

Keywords:

digital economy, virtualization models, vir-

tualization, “digital twin” model, e-commerce.


The development of the digital economy (DE) in the countries of

the world takes place according to different models, thus discrepancies
are associated with different development priorities and special na-
tional management methods. Taking into account various features of
development and management methods, we can note the following
models of development: the model of the digital service sector (Great
Britain) and digital production (Germany), the model of predominance
of public (China) or private (USA) management. The main factors of
success in digital transformation in the company's activities include the
level of development of the innovation system (capable to generate
innovations and quickly transfer them to mass production), as well as


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146

the education system (which should provide highly qualified personnel
for DE). The introduction of digital technologies allows businesses to
enhance their potential both organizationally and technologically. En-
terprise virtualization models are associated with the government's
adoption of development programs, models of DE and the directions
of its formation. Taking into account various approaches, experts sug-
gest technological, process, platform, and growth-based approaches to
model formation [1, p. 13].

Problem statement

Currently, the platform approach of the enterprise virtualization

model is used for the development of e-Commerce DE sectors. Today,
financial transactions, especially banking are being digitalized at a sig-
nificant pace. New members such as Alibaba Group with its own
payment system and Amazon.com are entering the financial market.
On the other hand, banks are being to be engaged in new, unusual ac-
tivities. The main components and features of the enterprise virtualiza-
tion model in "Industry 4.0", include the followings [2, p. 283]:

– horizontal integration of business processes and value crea-

tion processes (value networks) - end - to-end processes within a
single information space of the enterprise-with a consumer and
with a supplier;

– vertical integration of the internal production chain of enter-

prises (networked manufacturing) – data collection from Executive
mechanisms up to the planning system (ERP) and advanced control
mechanisms from the ERP level and down;

– end-to-end digital integration of design processes (digital inte-

gration of engineering), continuous design engineering "Industry 4.0"
(the Fourth industrial revolution) is a production organization concept
the value of which is provided by integrating physical objects, proc-
esses, and digital technologies that monitor and create virtual copies of
physical processes in real time, make decentralized decisions and allow
machines to interact with each other and people.


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Most of the research on the impact of digitalization of the econ-

omy is devoted to its impact on economic growth. Moreover, the posi-
tive impact of investments in the high-tech sector on the level of GDP
of the European Union country is revealed [3, p. 1]. It is also clear that
digitalization has a positive impact on GDP per capita, the level of
employment and the growth of the level of employment of the popula-
tion [4, p. 65]. Existing initiatives and current programmes in the range
of development countries highlight the factors influencing on socio-
economic development, namely, a high level of inclusion of digital
services, a sufficient level of investment, adequate income, sufficient
level of digital literacy, high literacy, high level of complexity of in-
volvement of the state in the development of initiatives and pro-
grammes (the state creates a regulatory framework capable of develop-
ing digitalization sectors, to conduct a pilot test of the program, and
then the business scales initiatives and support them).

Research questions

The implementation of the main directions and priorities of the

concept will be carried out through the implementation of activities
defined in national, branch, sectoral plans and strategies of develop-
ment, as well as the inclusion of three

components in the development process:
– businesses that use digital innovations to introduce new busi-

ness models, invest in infrastructure and employees to develop their
digital skills;

– the society that expands opportunities for the use of digital tech-

nologies by creating demand for digital products, increasing the level of
digital literacy and competencies, increasing the income of the business
environment in its composition, or creating new business models;

– the state that supports the entire process of digitalization, pro-

vides education, promotes investment, exports of services and goods,
increases the level of trust of citizens and businesses, and guarantees
flexible legislative regulation. As a result of the implementation of the
concept, consumers are expected to receive high-quality and inexpen-


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148

sive Internet and mobile communications, eliminate digital inequality
between cities and villages, supremacy of the electronic record and
strengthen the confront against corruption. Taking into account the
proposed concept of "Digital Uzbekistan 2030", the author suggests
technological and industry models of virtualization of enterprises in
Uzbekistan, which can be combined into a model of "digital twins".

Figure. The conceptual approach of the virtualization

of enterprises activities in Uzbekistan [7]

The digital twin model proposed for the use of activity virtual-

ization in domestic enterprises is based on numerical modeling,
which allows you to calculate the operational characteristics of the
designed (developed) product and the influence of various factors
[8, p. 8]. Proper use of this model allows you not only to work with
primary sources of information, but also to manage the process of
product development and manufacturing itself, to analyze the current
state, predict the long term state, plan, timely solve problems and
take measures to eliminate them [9, p. 18].

Domestic enterprises, the management of which sets a priority

goal of rapid digitalization of all production processes, have a chance
to become competitive organizations in modern innovative markets.


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Research results

The digital twin model makes it possible to consider a combi-

nation of various factors related to each other, which makes the pro-
duction process more unhindered [10, p. 95]. Among the most im-
portant features of digital twin models are the following:

– the ability to predict and simulate various physical processes,

which is capable of timely elimination of failures;

– the possibility to use new technologies that allow you to proc-

ess (accumulate) large massive data more quickly and efficiently;

– the existence of real parameters of the publication's function-

ing, reflecting the current situation and allowing you to assess the
possibility of an accident (failure) at the current moment;

– models are considered to be stable elements.
The decision-making process is key in the work of industrial

enterprises and structures, so the possibility of speeding up this proc-
ess to account for the introduction of a new model is considered
promising and necessary [11].

Digital twins are not inferior to their real counterparts in qual-

ity, which allows you to get access to the current characteristics of
objects, mitigate risks, and create special conditions for operation
and use. The main advantages of using these models include [12]:

1. In the short term prospects: The ability to monitor assets and

optimizations made with the purpose of using the data usage process
and resource discounts for their use, regardless the professional
sphere. The introduction of technology in the real sector of the econ-
omy in the next two to three years will help to increase labor produc-
tivity by 10–25 % and reduce the costs by 10–20 %.

2. In the medium term prospects: it is necessary to use digital

twin models in industry, as this increases not only management, but
also operational efficiency. It becomes possible to use digital twin
models in old ones, which is associated with the possibility of creat-
ing new products based on them, taking into account the factors of
conditions and opportunities for creation and implementation.

3. In the long term prospects the model of digital twins is imple-

mented as a tool for introducing innovations in the scientific and pro-


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150

duction process, which becomes suitable for the collected and generated
analytical data. Recommendations that are developed based on market
and product analysis make it possible to create new business models.

Conclusion

The digital twin model makes it possible to consider a combina-

tion of various factors related to each other, which makes the produc-
tion process more unhindered [10, p. 95]. Among the most important
features of digital twin models are the following:

– the ability to predict and simulate various physical processes,

which is capable of timely elimination of failures;

– the possibility to use new technologies that allow you to process

(accumulate) large massive data more quickly and efficiently;

– the existence of real parameters of the publication's function-

ing, reflecting the current situation and allowing you to assess the
possibility of an accident (failure) at the current moment;

– models are considered to be stable elements.

References

1. Economic and social problems of Russia: Collection of scien-

tific works/RAS. ISISS. Center of social. scientific-information re-
search. Department of economics; editorial staff: Makasheva N.A., chief
editor and others. – M., 2018. – No. 1: Digital economy: Current state
and development prospects / Comp. no. Polozhikhina M.A. – P. 106.

2. Rajushkin E.S., Kolesnikova V.O., Kulikov S.A., Rajush-

kina A.A. Digital Economy: Future Technologies in the Modern
World // Young Scientist. – 2018. – No. 51. – P. 283–285.

3. Spiridonov V.R. Pot precision farming // Digitization of agri-

culture. – 2017. – No. 2. – P. 1–2.

4. Economic and social problems of Russia: Collection of scien-

tific works / RAS. ISISS. Center of social. scientific-information re-
search. Department of economics; editorial staff: Makasheva N.A., chief
editor and others. – M., 2018. – No. 1: Digital economy: current state
and development prospects / Comp. no. Polozhikhina M.A. – p1 56.


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151

5. Draft Resolution of the President of the Republic of Uzbekistan

“On Approval of the National Strategy Concept “Digital Uzbekistan
2030 ”, ID-10574. Discussion of draft regulatory documents of the Re-
public of Uzbekistan. https://regulation.gov.uz/ru/document/10574.

6. Bobokhujaev Sh. I., Z.M. Otakuziyeva, "Development of digi-

tal economy in Uzbekistan and problems of implementation of ICT in
enterprises," 2019 International Conference on Information Science
and Communications Technologies (ICISCT), Tashkent, Uzbekistan,
2019, pp. 1–3, doi: 10.1109/ICISCT47635.2019.9011848.

7. Designed by author.
8. Gretchenko A.A., Demenko O.G., Gorokhova I.V. Formation

of the digital economy in Russia // Bulletin of the Russian Economic
University named after G.V. Plekhanov. – 2018. – No. 3 (99). – S. 3–11.

9. Gnezdova Yu.V. Development of Russia's digital economy

as a factor in increasing global competitiveness // Intellect. Innova-
tion. Investments. – 2017. – No. 5. – P. 16–19.

10. Governor A.M. Transformation of the glass industry: the

transition from traditional business models to new digital platforms //
Bulletin of the Academy of Knowledge. – 2019. – P. 94–99. https://
cyberleninka.ru/article/n/preobrazovanie-stekolnoy-promyshlennosti-pe-
rehod-ot-traditsionnyh-biznes-modeley-k-novym-tsifrovym-platformam.

11. Keshelava A.V., Budanov V.G., Rumyantsev V.Yu. Introduc-

tion to the “digital” economy. – M.: VNIIGeosystem, 2017. – P. 28.

12. Shpak P.S., Sycheva E.G., Merinskaya E.E. The concept

of digital doubles as a modern trend of digital economy // Bulletin
of the Omsk University. Series "Economics". – 2020. – Р. 57–68.
https://cyberleninka.ru/article/n/kontseptsiya-tsifrovyh-dvoynikov-
kak-sovremennaya-tendentsiy-tsifrovo-ekonomiki.

About the authors

Bobokhujaev

Sh.I.

– Associate Professor, Department of Oil

and gas economics, sector manager Gubkin Russian State University
of Oil and Gas (National Research University) in Tashkent, The Re-
public of Uzbekistan, Tashkent, e-mail: bobshuh@mail.ru.

References

Economic and social problems of Russia: Collection of scien-tific works/RAS. ISISS. Center of social. scientific-information re-search. Department of economics; editorial staff: Makasheva N.A., chief editor and others. – M., 2018. – No. 1: Digital economy: Current state and development prospects / Comp. no. Polozhikhina M.A. – P. 106.

Rajushkin E.S., Kolesnikova V.O., Kulikov S.A., Rajush-kina A.A. Digital Economy: Future Technologies in the Modern World // Young Scientist. – 2018. – No. 51. – P. 283–285.

Spiridonov V.R. Pot precision farming // Digitization of agri-culture. – 2017. – No. 2. – P. 1–2.

Economic and social problems of Russia: Collection of scien-tific works / RAS. ISISS. Center of social. scientific-information re-search. Department of economics; editorial staff: Makasheva N.A., chief editor and others. – M., 2018. – No. 1: Digital economy: current state and development prospects / Comp. no. Polozhikhina M.A. – p1 56.

Draft Resolution of the President of the Republic of Uzbekistan “On Approval of the National Strategy Concept “Digital Uzbekistan 2030 ”, ID-10574. Discussion of draft regulatory documents of the Re-public of Uzbekistan. https://regulation.gov.uz/ru/document/10574.

Bobokhujaev Sh. I., Z.M. Otakuziyeva, "Development of digi-tal economy in Uzbekistan and problems of implementation of ICT in enterprises," 2019 International Conference on Information Science and Communications Technologies (ICISCT), Tashkent, Uzbekistan, 2019, pp. 1–3, doi: 10.1109/ICISCT47635.2019.9011848.

Designed by author.

Gretchenko A.A., Demenko O.G., Gorokhova I.V. Formation of the digital economy in Russia // Bulletin of the Russian Economic University named after G.V. Plekhanov. – 2018. – No. 3 (99). – S. 3–11.

Gnezdova Yu.V. Development of Russia's digital economy as a factor in increasing global competitiveness // Intellect. Innovation. Investments. – 2017. – No. 5. – P. 16–19.

Governor A.M. Transformation of the glass industry: the transition from traditional business models to new digital platforms // Bulletin of the Academy of Knowledge. – 2019. – P. 94–99. https:// cyberleninka.ru/article/n/preobrazovanie-stekolnoy-promyshlennosti-perehod-ot-traditsionnyh-biznes-modeley-k-novym-tsifrovym-platformam.

Keshelava A.V., Budanov V.G., Rumyantsev V.Yu. Introduction to the “digital” economy. – M.: VNIIGeosystem, 2017. – P. 28.

Shpak P.S., Sycheva E.G., Merinskaya E.E. The concept of digital doubles as a modern trend of digital economy // Bulletin of the Omsk University. Series "Economics". – 2020. – Р. 57–68. https://cyberleninka.ru/article/n/kontseptsiya-tsifrovyh-dvoynikov-kak-sovremennaya-tendentsiy-tsifrovo-ekonomiki.