DIGITAL TRANSFORMATION AND INCREASING MOLDOVA INDUSTRY SWOT ANALYSIS

Abstract

The digital transformation is now a reality in Moldova, as Moldova has begun to transfer social, legal, and civil service delivery online. Sped-up digitalization can be expected to create new business models and opportunities for digital jumping in traditional industries. The Coronavirus crisis has highlighted the need for support and investments in digital transformation and effective digital governance, especially to guarantee the continuity and delivery of core government functions. The digital transformation is changing not just business models but the methods of production and distribution and the industry's competitiveness. The country's competitiveness is directly proportional to the country's level of economic development. According to SWOT analysis, general strengths on which Moldovan industry digitalisation will rely can be distinguished. It rely on the fact that manufacturing sector output is increasing – the contribution of the manufacturing sector to national GDP is around 12%, however it is on the lower side compared to other EU countries. Despite that, recent years indicate the rise of the output of this industry segment and industry digitisation will further encourage this process. Secondly, public and private IRT infrastructure is well-developed – is consistently updated, provides world-class internet access, and allows faster digitization. Thirdly, the growing capacity of digitization solutions providers - supply a wide range of services by participating in local and global value chains. The interview with experts who work closely in digitalization or competitiveness was done, and the SWOT analysis was done. Based on the research made, the recommendations for Moldova were prepared and presented in this article.