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Challenges of the Digital Economy: Who Can Overcome Them?

Challenges of the Digital Economy: Who Can Overcome Them?

July 12, 2018

The impact of the Fourth Industrial Revolution, based on digitisation and robotisation, is a topic that has been talked about over the past few years. Numerous new technological solutions have been created. They change not only the manufacturing itself, but also the economy, business models, society and our everyday lives. The big data, internet of things, new technology, such as self-driving cars, 3D printing, virtual reality, etc., have an immense influence on customers' needs; thus, business models have to change to satisfy the needs.

"To remain competitive, businesses have to prepare for the transformation of the economy. They must build up the intellectual, human, knowledge and social capital of companies, that will help to initiate, create and implement the necessary innovations. The Fourth Industrial Revolution is inextricably linked with the digital economy, the knowledge economy and the development of intangible assets," says Assoc. Prof. Dr. Eglė Kazlauskienė from the Department of Economics Engineering at the Faculty of Business Management at Vilnius Gediminas Technical University (VGTU).

According to her, digital economy is the economy based on wide application of information and communication technologies used for the dissemination of information, communication, purchasing of goods and services, and their production. At the times when technologies enter the economy, the question is – who can manage the new challenges? As E. Kazlauskienė says, there is a need for a new generation of professionals – economic engineers.

VGTU's Associate professor emphasises that economic engineering is not a science about economics with a minor in engineering. "It is about design of various economic processes. The science of economics examines the interaction and behaviour of economic units, and economics as a whole. Microeconomics, macroeconomics, econometrics are integral parts of the science of economics. In addition, economic engineering covers the application of information technologies in research, and processing of big data. In other words, the elements without which it is difficult to imagine a modern professional representing the new generation of economists," she highlighted.

Associate professor points out that the digital single market is among the most important the European Commission's priorities to strengthen the role of Europe in the global digital economy. Within this priority, the special emphasis is on the 5G technology, cloud computing, the internet of things, big data technologies and cybersecurity.

Digitalisation of economy is very important, because it affects all sectors of industry and services. "Country's competitiveness and productivity become increasingly dependent on the ability to create, develop digital innovations, and to apply them in all sectors of the economy. According to the European Commission's data, digital economy is growing seven times faster than other sectors of the economy," says E. Kazlauskienė.

With growth in the sector, the need for professionals is also on the rise. According to E. Kazlauskienė, there is also a need for new competences: "Future professionals, who will be working under the conditions of digital economy, must have a wider spectrum of knowledge, especially, on the new areas of economy, international economic relations, the activities of international organisations, and business opportunities in the global market. They should be able to apply innovative tools and methods of research in technical sciences to analyse and design economic processes. They must know foreign languages."

For example, VGTU study programme in Economics Engineering has such courses as programming Python, big data analysis, digital, industrial, and regional (China or Nordic countries) economics. Language courses (for example Chinese or Norwegian) are also part of the study programme. The study programme is given both in Lithuanian and English languages, and is based on application of mathematical (quantitative) methods. In addition, International Economic Relations' specialisation offers double degree opportunity: VGTU and Kyungpook National University, South Korea.

Language learning is very important in this programme, as national frontiers are blurring in business, trade and economy, and we face global processes. "Companies investing in Lithuania are looking for employees who know other languages apart from English. The demand for professionals who speak Norwegian, Swedish or other foreign languages is rising, and companies are ready to invest not only in the development of their employees, but also contribute to the development of students' competences," says E. Kazlauskienė. VGTU's cooperation with the US company Cognizant Technology Solutions is among the notable examples. A Norwegian language course developed by the company's employees is part of the Economics Engineering study programme.

According to the results of the "QS World University Rankings by Subject 2018", VGTU ranks among the world's TOP 201-250 universities in the Economics and Econometrics subject. This is the highest ranking not only in Lithuania, but also in all Baltic States.