Prospects for digital transformation in Russian machine building industry

Abstract

Introduction: the article analyzes the opportunities and challenges faced by the Russian machine building industry in the context of the global digital transformation, which impacts markets, business models and production processes, this impact being a significant factor of the recent COVID-19 pandemic. Objectives: the research question is to assess the readiness of domestic machine building to develop in line with the global digitalization trends. Methods: a comparative analysis of statistical data as well as a meta-analysis of primary case studies of Russian engineering companies. Results: it is noted that the modern landscape of the machine building industry, mainly determined by the ideology developed in the era of the USSR, is characterized by the dominance of the state and substantially depends on state funding. The need to adapt to the new challenges of the digital era presents engineering with a choice: strengthening of state control in the industry versus building a competitive environment that reflects global trends in digital transformation. Conclusions: it is concluded that the industry needs a new “conversion” program, creating the new competencies focused on working on the open market, including the global value chains in the full cycle “development – production – service” that becomes essential in the context of the current COVID-19 pandemic. This approach requires a massive cultural and organizational change.

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