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AGILE PHILOSOPHY OF TRANSFORMATION IN UKRAINE: ECONOMY AND IT ENTREPRENEURSHIP DURING THE WAR

 
17.12.2024 23:59
Автор: Ilona Dumanska, Dr of Economics, Professor, Non-residental researcher at French Research Center in Humanities and Social Sciences – Prague ( CEFRES), Prague, Czech Republic, CZ-11000; Professor at the Department of International Economic Relations, Khmelnytskyi National University, Khmelnytskyi, Ukraine, UA-29027-UA
[1. Економічні науки;]


The unexpected factor X for Russia’s military aggression was the transformation of changes in the economy of Ukraine and its active transition to the IT business segment. It was the IT sector that demonstrated a positive rate of export of services in the first year of the war and maintained Ukraine’s status as a key exporter of high-tech goods and services to Europe.

The figures of the IT industry say the following. Every 20 hryvnia in Ukraine's GDP was earned by the IT industry. During the full-scale war, the IT industry paid 68.1 billion hryvnia in taxes, and the revenue of the entire industry is estimated at 14.86 billion dollars, of which 13.61 billion dollars is the volume of IT services exports, and 1.25 billion dollars is the volume of the domestic IT market [1].

Is it possible to hit an IT specialist with a bullet or an explosive drone if the boundaries of virtual reality are blurred? And this is the central fact of the extraordinary drama that the world has been watching since Russia so recklessly invaded Ukraine. Today, military aggression aims to deprive the Ukrainian economy of human resources by the deaths of civilians, to kill business by destroying the power grid and infrastructure of critical industries, to declare invisible slavery to the world by speculating on human needs in conditions of dependence on energy imports. In response, Ukraine appeals to flexibility - shifting priority to the “elusive” IT industry.

We note that the crisis of the Ukrainian economy became the starting point for initiating readiness for change and adaptation in the confrontation. As a result, a new philosophy of transformations was formed, which was not characteristic of previous world wars. This is the triumphant emergence of new professions and the blurring of borders, which leave the opportunity to maintain ties with the homeland during occupation and forced migration. The status of an electronic resident and/or electronic entrepreneur based on a profession in IT with the possibility of preserving Ukrainian citizenship has become a lifeline for Ukrainian migrants in the whirlpool of uncertainty of war and loss of money and work.

IT entrepreneurship as the interaction of a digital person and a digital society has formed a complex social phenomenon - maintaining ties with the homeland and living in another territory. The theory of complexity, which refers to a nonlinear methodology and gives an accurate idea of the direction of development of philosophy in the 21st century, can be applied to the analysis of such a phenomenon. Complexity theory was formed as a challenge to the conditions of globalization, Industry 4.0, technological progress 4.0, digital society, Education 2.0, Agile methodology [2]. According to Jurgen Appelo, it is precisely for these complex conditions that the complexity methodology can be applied, based on a synergistic methodology that makes a great contribution to the sphere of human adaptation to the conditions of existence [3, p. 130].

Complexity theory includes chaos theory, the real breakthrough in the analysis of which occurred back in the 1970s and 1980s. Chaos theory [4] recognizes that even the smallest changes in the initial parameters of the dynamic system of a digital society must cause serious consequences. The inherent unpredictability of dynamic systems, which includes the IT sector, has far-reaching consequences for human existence in the stochastic environment generated by a digital society.

The Russian-Ukrainian war demonstrated that the classical philosophy of industrial society is outdated, it is being replaced by new varieties of theories, ideologies of values, and a culture of behavior that are developing in the context of Agile philosophy or Agile management (management 3.0).

Appelo’s work “Management 3.0. Agile management. Leadership and team management” [3] fills the gap and actually leads to the creation of such a theory of achieving management efficiency in the dimension of uncertainty, information asymmetry, stochasticity. It is these characteristics of the dimension of being that are typical for a population that lives its life in conditions of war.

Agile philosophy includes the most modern ideas in the field of complex adaptive systems, flexible governance and frugal thinking, developing a healthy, reasonable and practical mechanism for effective human existence in a digital society [3]. AGILE philosophy as the basis for the interaction of a digital person and a digital society develops new ideas for promoting flexible approaches in the context of adaptive, creative, flexible adaptation of a person to the conditions of existence of this world, which is implemented in all structures of human life [3, p. 130]. An example of such adaptation is the possibility of adapting remote work in the IT sector to forced migration in wartime conditions and the formation of a new type of employment for self-sufficiency. Figure 1 shows the algorithm of the prerequisites for the digital transformation of the economy and the development of IT entrepreneurship in Ukraine against the background of the emergence of the Agile philosophy.

Agile methodology in solving problems of interaction of digital person and digital society helps a person to overcome chaos, entropy, uncertainty, various bifurcation points and to help find a place in IT against the background of a complex digital society [5]. We state that the formation of this attractor can become the formation of a new form of society on the principles of blurred state borders. Freedom of communication, digital technologies, globalization, technological development of the world and the new industry 4.0 have formed not only a new type of professions and forms of employment, but also rethink the role of state borders.

Thus, the Agile philosophy of transformations in economics initiates a roadmap for solving the problem of interaction of a digital person employed in the IT sphere with the international community in conditions of military conflicts. As a result of the interaction of a digital person and the country of migration, accompanied by uncertainty, stochasticity, and information asymmetry, flexible adaptation and rapid integration into the international economic space arise.




Figure 1 - Algorithm of prerequisites for the transformation of IT entrepreneurship in the economy of Ukraine based on the Agile philosophy

In conclusion, it is worth summarizing some limitations regarding the development of the Agile philosophy of economic transformation and the shift of priorities to IT entrepreneurship in the system of human values. Such generalizations concern the development of digital technologies with which a person interacts and is influenced during contact. In particular, the following beliefs were formed on this account:

1) formation of framework restrictions on the combination of IT professions with the use of technological solutions and products resulting from political and social processes. 

Reason: indirect influence and hybrid speculation on the human mind through the imposition of the formation of digital institutions and the desire to control the expression of people's will through the system of values, goals and beliefs of their creators;

2) demarcation of everyday life and work in IT. 

Reason: technologies change the perception of the surrounding world and communication, making it virtually real, entertainment and recreation, work, human life. This causes negative manifestations of addiction to gadgets, excessive anxiety from restrictions on contact with them and the substitution of reality;

3) the need to form a system of values for adequate behavior in a digital society.

Reason: technologies do not exist by themselves, they are part of a system of digital norms, rules, goals, etc. Accordingly, they define and shape the digital infrastructure and digital resources (including human) necessary for social, political, economic, and cultural digital life in the new virtual reality and real living environment.

References: 

1. IT in War: IT Ukraine Association and Mind Present Unique Study on the Contribution of the IT Industry to the Fight Against Russian Aggression. URL: https://salo.li/49F5451 (accessed on 15.12.2024).

2. Voronkova V. G. Philosophy of the digital person and digital society: theory and practice: monograph. Zaporizhzhia: Helvetika, 2022. 460 p. (In Ukrainian)

3. Appelo Jurgen. Management 3.0. Agile management. Leadership and team management. Kharkiv: Fabula, 2019. 432 p. (In Ukrainian)

4. Vaga Т. Profiting from Chaos. Using Chaos Theory for Market Timing, Stock Selection, and Option Valuation. New York: McGraw-Hill, 2013. 292 p.

5. Wiggins S. Global Bifurcations and Chaos Analitical Methods. Berlin –Heidelberg: Springer, 1988. 698 p.



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