:: ECONOMY :: THE ECONOMIC ESSENCE AND ROLE OF DIGITAL COMMUNICATIONS – IMPACT ON THE FORMATION OF ADDED VALUE, PROFITABILITY AND COMPETITIVENESS OF ENTERPRISES :: ECONOMY :: THE ECONOMIC ESSENCE AND ROLE OF DIGITAL COMMUNICATIONS – IMPACT ON THE FORMATION OF ADDED VALUE, PROFITABILITY AND COMPETITIVENESS OF ENTERPRISES
:: ECONOMY :: THE ECONOMIC ESSENCE AND ROLE OF DIGITAL COMMUNICATIONS – IMPACT ON THE FORMATION OF ADDED VALUE, PROFITABILITY AND COMPETITIVENESS OF ENTERPRISES
 
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THE ECONOMIC ESSENCE AND ROLE OF DIGITAL COMMUNICATIONS – IMPACT ON THE FORMATION OF ADDED VALUE, PROFITABILITY AND COMPETITIVENESS OF ENTERPRISES

 
17.11.2025 20:21
Автор: Maksym Olehoviсh Shevchenko, PhD student, Bohdan Khmelnytsky National University of Cherkasy
[1. Економічні науки;]


In the modern conditions of information technology development, digital communications are becoming a key tool for the economic activity of enterprises. They not only provide rapid exchange of information between market participants, partners and consumers, but also significantly affect the formation of added value of products and services, increase profitability and strengthen competitiveness. Thanks to digital communications, enterprises are able to quickly respond to changes in the market situation, optimize internal processes and interact with customers more effectively, which makes them a strategically important element of the modern economy.

Digital communications are a set of tools, channels and technologies that ensure the transfer of information, interaction with customers, partners, internal divisions of the enterprise through digital platforms (e-mail, messengers, social networks, platform solutions, etc.). In the economic sense, they act as a tool that increases the efficiency of information exchange, reduces barriers to market access, speeds up decision-making – all this contributes to the formation of added value. According to the Eurostat report, in 2024. 24% of enterprises in the EU made sales through digital channels ("e-sales"), while in 2014. – only 17% [1]. Added value is not only the production of a physical product, but also its coverage of new channels, fast communication, improving the quality of service, which enhances the final value for customers.

The State of Digital Communications 2025 report shows that the digital communications market in Europe (telecom services, equipment, content) was worth around €1 trillion in 2023, which corresponds to ≈4.7% of the continent’s GDP [2]. This shows that digital communications is not a marginal part, but a significant economic sector that generates a significant part of economic activity.

Digital communications thus allow businesses to optimise costs, increase efficiency and create added value. Below are statistics illustrating the scale and economic impact of digitalisation on businesses in the EU and in a global context.

Table 1. Key statistics [1]




Digital communications can also significantly impact a company’s profitability through several channels: cost optimization, productivity gains, market expansion, and improved customer engagement. For example, the scientific review “How does digitalization shape the business financial performance…” [3] states that digitalization has a positive impact on financial performance, including profitability, by optimizing resource utilization, increasing customer engagement, and retaining customers.

Another study showed a correlation: digital transformation processes in a company have a correlation of 0.756 with profitability, indicating a strong impact [4]. This means that companies that implement digital communications solutions are more likely to improve profitability.

In addition, in statistics on the communications industry: global telecommunications revenues in 2022 were approximately $ 1.7 trillion. US [5]. Although this applies to the entire industry, it gives context to the size of the market in which digital communications operate.

Thus, a company using digital communication channels (e.g., customer messengers, digital marketing, online service, multi-channel communications) can gain: a reduction in unit costs per customer/transaction; an increase in average sales value through cross-channel communications; better customer retention, leading to a longer customer lifecycle. So, profitability through digital communications increases.

The competitiveness of an enterprise is determined by its ability to compete effectively in the market, maintain or increase market share, respond quickly to changes and offer unique value, and in this context, digital communications play a key role, significantly contributing to the achievement of these goals. The study “Digitalization, entrepreneurship and competitiveness” [6], which covered 19 European countries, demonstrates that digital technologies stimulate the development of entrepreneurship and increase the level of competitiveness of enterprises, while separate studies devoted to digital advertising strategies for SMEs in Saudi Arabia found that digital communication strategies have a statistically significant average impact on competitive advantage (f²≈0.302) [7]. Ukrainian studies also emphasize that digital business models are an important factor in ensuring the competitiveness of enterprises, and in addition, the analysis of SMEs showed that increasing digital maturity has a positive effect on labor productivity, which is one of the components of competitiveness [8]. Enterprises that actively implement digital communications gain a competitive advantage through faster communication with the external environment, more effective online customer outreach and segmentation, the ability to form new business models through digital services, online channels and platforms, as well as increased productivity and adaptability to market changes, which as a result significantly increases their competitiveness and resilience to external challenges [9].

Thus, digital communications are not just a communication channel, but a strategic resource for the enterprise, ensuring the creation of added value through speed, quality, wider coverage and implementation of new business models, increasing profitability through cost optimization and efficiency gains, as well as strengthening competitiveness through adaptability, innovation and better interaction with the market; in today's digital environment, ignoring their role threatens with loss of market share, reduced productivity and reduced viability of the enterprise, therefore it is important not only to implement technologies, but also to integrate them into communication strategies, business models and interaction with customers.

References:

1. Digitalisation in Europe – 2025 edition. URL: https://ec.europa.eu/eurostat/web/interactive-publications/digitalisation-2025?utm_source

2. State of Digital Communications 2025. URL: https://connecteurope.org/insights/reports/state-digital-communications-2025?utm_source

3. How does digitalization shape the business financial performance: a systematic review. URL: https://fbj.springeropen.com/articles/10.1186/s43093-025-00659-8?utm_source

4. Digital Transformation Process in the Profitability of a Medicine Distribution Company, Trujillo – 2024. URL: Digital+transformation+process+in+the+profitability+of+a+medicine+distribution+company.pdf

5. Communication Industry Statistics. URL: https://zipdo.co/communication-industry-statistics/?utm_source

6. Digitalization, entrepreneurship and competitiveness: an analysis from 19 European countries. URL: https://link.springer.com/article/10.1007/s11846-023-00640-1?utm_source

7. Impact of Digital Advertising Strategies on the Competitive Advantage of SMEs in KSA. URL: https://ejbmr.org/index.php/ejbmr/article/view/2285?utm_source

8. Digital business models as a factor in ensuring the competitiveness of enterprises. URL: https://strategic-economic.com.ua/en/journals/t-25-3-2024/tsifrovi-biznes-modeli-yak-chinnik-zabezpechennya-konkurentospromozhnosti-pidpriyemstv?utm_source

9. How digital technologies enhance competitiveness in manufacturing SMEs. URL: https://innovation-entrepreneurship.springeropen.com/articles/10.1186/s13731-025-00576-8?utm_source



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