IT-experienced executives and digital-physical integration: An internal capabilities perspective

ABSTRACT: Digital transformation (DT) is the use and integration of digital technologies in all areas of an organization, leading to profound changes in its activities, operations and value creation for customers. It has become a matter of survival for organizations across all sectors, geographies and sizes. Despite its widespread adoption, DT success is not achieved by investing in technology alone; it is necessary to analyze the factors that influence success and understand why some companies gain a competitive advantage while others fail. This study examines three key factors of DT: business model innovation, digital technology integration and digital talent management, and their relationship to performance. In addition, we examine the environment in which each organization operates, considering the technological intensity of the sector as a potential moderating factor between these factors and performance. The study focuses on Spanish manufacturing companies, using data from the ESEE. By analyzing a panel data set of 9215 observations between 2011 and 2017, we provide evidence that the technological intensity of the sector significantly affects the relationship between business model innovation, digital technology integration, the development of new competencies and performance. The study shows that companies in medium- and low-tech sectors can benefit more quickly from investments aimed at business model innovation, digital technology integration and the development of new competencies, and achieve better short-term results compared to companies in high-tech sectors. These results suggest that, despite their limited investment in R&D, companies in medium- and low-tech sectors have resources and capabilities that compensate for their innovation activities.ABSTRACT: Digital transformation (DT) is the use and integration of digital technologies in all areas of an organization, leading to profound changes in its activities, operations and value creation for customers. It has become a matter of survival for organizations across all sectors, geographies and sizes. Despite its widespread adoption, DT success is not achieved by investing in technology alone; it is necessary to analyze the factors that influence success and understand why some companies gain a competitive advantage while others fail. This study examines three key factors of DT: business model innovation, digital technology integration and digital talent management, and their relationship to performance. In addition, we examine the environment in which each organization operates, considering the technological intensity of the sector as a potential moderating factor between these factors and performance. The study focuses on Spanish manufacturing companies, using data from the ESEE. By analyzing a panel data set of 9215 observations between 2011 and 2017, we provide evidence that the technological intensity of the sector significantly affects the relationship between business model innovation, digital technology integration, the development of new competencies and performance. The study shows that companies in medium- and low-tech sectors can benefit more quickly from investments aimed at business model innovation, digital technology integration and the development of new competencies, and achieve better short-term results compared to companies in high-tech sectors. These results suggest that, despite their limited investment in R&D, companies in medium- and low-tech sectors have resources and capabilities that compensate for their innovation activities. Keywords: Digital transformation; performance of Spanish manufacturing firms; business model innovation; digital technology integration; digital talent management; industry’s technological intensity. Keywords: Digital transformation; performance of Spanish manufacturing firms; business model innovation; digital technology integration; digital talent management; industry’s technological intensity.

The study investigated teacher preparedness and integration of digital technologies among foundation phase teachers in Kenya. The Ex post facto research design was adopted. The target population for the study was 345 teachers consisting of 225 grade 1-3 teachers and 90 foundation phase teachers. The sample size for the study consisted of 263 foundation phase teachers. Reliability of the questionnaires was ascertained by Cronbach’s alpha method and α of 0.7 to 0.8 were reported. Pearson correlation and linear regression were used to analyze data. The findings indicated a significant highly positive correlation (n=202; r =.711; p < 0.05)between status of digital literacy and integration of digital technologies; a low positive correlation (n=202; r =.292; p <.05) between relevancy and adequacy of teachers training and integration of digital technologies; a weak (n=202; r =.332; p<.05), positive correlation between teachers’ ICT advancement and integration of digital technologies; and, a statistically significant (n=202; r =.384; p < 0.05) positive correlation between teachers’ perception and integration of digital technologies. The teacher’s status of digital literacy had the highest impact on enhancing Integration of Digital Technology. The study recommends that the Ministry of Education Science and Technology should enhance more structured training on literacy for teachers.

Digital transformation reshapes firms into more digital, data-driven, and customer-centric organizations. Because it often supports innovation, firms are widely expected to benefit from higher performance and productivity. However, it remains unclear whether higher national levels of digital integration translate into higher aggregate enterprise productivity. This study adopts a socio-technical and ecosystem perspective to examine the relationship between digital technology integration and enterprise labor productivity across the 27 EU member states, while also considering the role of key ecosystem enablers. A balanced country-year panel of data (N = 162) was constructed from Eurostat Structural Business Statistics on the apparent labor productivity of total enterprises, together with Digital Economy and Society Index (DESI) indicators on the integration of digital technology, human capital, connectivity, and Gross Domestic Product (GDP) per capita, covering the period from 2017 to 2022. To this end, fixed-effects regression models were estimated using robust standard errors clustered by country and combined with correlated random effects (CRE/Mundlak) decomposition. This methodological approach was adopted to distinguish short-run within-country dynamics from persistent between-country differences. The study contributes to ecosystem-level DESI research by using this distinction to assess how country-level digital integration is associated with enterprise productivity. The fixed-effects results provide no evidence that year-to-year changes in digital technology integration, on their own, are associated with higher enterprise productivity. Additionally, no statistically significant interaction effect was observed with either human capital or digital connectivity. By contrast, GDP per capita was found to be a robust positive predictor of enterprise productivity. The CRE/Mundlak results indicate that the majority of between-country productivity differences are attributable to differences in economic development. Furthermore, there is evidence of a positive association between the average level of digital technology integration and human capital. Taken together, these findings suggest that national digital technology integration reflects business environment conditions at the ecosystem level. While it may create opportunities for enterprise business model innovation, its productivity implications are more likely to emerge gradually through stronger absorptive capacity and complementary capabilities. Consequently, the study suggests that enterprise digital transformation policies should be aligned with investments in digital skills and broadband infrastructure. These policies should also support process redesign, greater interoperability, and the implementation of AI-enabled technologies.

The article aims to investigate the impact of digital technologies on increasing energy efficiency and reducing carbon emissions in modern conditions. The scientific novelty of the article lies in the identification and quantitative analysis of the relationship between the level of digitalization and indicators of energy efficiency and decarbonization. For the first time, the DESI index has been used for a comprehensive assessment of digitalization in the context of energy security and sustainable development, establishing a statistically significant correlation between digital transformations and energy efficiency indicators. Additionally, recommendations have been proposed for adapting the international digitalization experience in the energy sector to Ukraine’s national conditions, which is crucial for transitioning to a carbon-neutral economy. The article employs the following scientific methods: data analysis – to examine trends in digitalization and energy efficiency; cluster analysis – to systematize and classify information sources; correlation-regression analysis – to evaluate the relationship between the DESI (Digital Economy and Society Index) and WETI (World Energy Trilemma Index); synthesis and generalization of international experience – to develop recommendations for adapting leading international digitalization practices in the energy sector to the national conditions of Ukraine. The article analyzes the impact of digital technologies on increasing energy efficiency and reducing carbon emissions in the modern world. For this, the Google Trends tool was used, which made it possible to analyze the popularity of queries related to digitization and digital transformation over the past five years. Based on data from Scopus® and VOSviewer, the study identified five key clusters: decarbonization and digitalization, energy, energy efficiency, energy investment, and sustainable development. Correlation-regression analysis between digitalization and decarbonization was carried out. For this, the Digital Economy and Society Index (DESI) was chosen, which allows a comprehensive assessment of the digitalization process in different countries through such indicators as the level of Internet connection, digital skills of the population, the integration of digital technologies in business and the development of electronic services. The study results indicate a moderate correlation between the DESI and the World Energy Trilemma Index (WETI), which assesses energy security, equity, and environmental sustainability. A statistically significant positive relationship between these indices was also established, which indicates the relationship between the level of digitalization and energy efficiency indicators. The practical significance of the article lies in developing recommendations for implementing digital technologies to increase energy efficiency and reduce carbon emissions at the national level. The proposed strategies can be used to improve energy system management, integrate renewable energy sources, reduce costs, and enhance the resilience of energy systems to external threats, including cybersecurity. This article can be helpful for scientists, students, politicians, representatives of government organizations, and enterprises working in the field of energy and ecology. It will be a valuable source of information for those interested in sustainable development, the digitalization of energy systems, and the implementation of innovative technologies to improve energy efficiency.

Purpose The research provides new strategies for enhancing resilience in pharmaceutical manufacturing by addressing the dynamic nature of digital technology within the challenging framework of a VUCA (volatility, uncertainty, complexity and ambiguity) world, focusing on the concept of digital twins (DTs). This paper aims to emphasize the pivotal role of resilience in navigating disruptions and propose future research directions to contribute to the industry’s effective adaptation to uncertainties and dynamic challenges. Design/methodology/approach This research uses a qualitative approach, drawing insights from an extensive literature review on pharmaceutical manufacturing resilience and the integration of digital technologies. Methodologically, it synthesizes information from scholarly articles, empirical studies and industry reports to construct a comprehensive understanding. This design facilitates a thorough examination of the subject, providing valuable insights for practitioners, researchers and policymakers in the pharmaceutical industry. Findings This paper illustrates the practical application of DTs in vaccine production, emphasizing their critical role in ensuring quality, safety and adaptability. It adopts the “seizing, sensing and transforming” framework, showcasing the strategic integration of Industry 4.0 technologies to address dynamic challenges. Key insights include the significance of human elements alongside technological advancements, the need for real-time monitoring using Internet of Things (IoT) and artificial intelligence (AI) and the transformative potential of sustainability practices, diversified supply chains and collaborative ecosystems. Research limitations/implications This paper highlights the integration of human and digital elements, emphasizing IoT, AI and DTs for resilience. It underscores sustainable practices, supply chain diversification and collaboration as key strategies for addressing pharmaceutical industry challenges. Practical implications This paper offers practical insights for pharmaceutical manufacturing, emphasizing the need for robust cybersecurity measures, strategic investments in digital technologies and proactive regulatory compliance. Managers are encouraged to allocate budgets for digital integration, prioritize change management for technology adoption and invest in a skilled workforce. The adoption and management of DTs are highlighted to enhance resilience. Overall, the paper guides pharmaceutical organizations in navigating the complexities of the VUCA environment, ensuring the quality and safety of products through a multifaceted approach that combines advanced technologies with sustainability practices, supply chain diversification and collaborative ecosystems. Social implications The research addresses VUCA challenges, including volatility, uncertainty, complexity and ambiguity in pharmaceutical manufacturing. It emphasizes societal benefits such as uninterrupted drug supply, environmental responsibility through sustainable practices and enhanced collaboration among stakeholders. By leveraging digital technologies and resilience strategies, the study highlights the pharmaceutical sector’s pivotal role in managing health crises and ensuring patient safety. Originality/value This paper offers substantial originality and value by presenting a comprehensive framework for bolstering resilience in pharmaceutical manufacturing within the VUCA environment. The integration of advanced digital technologies, notably DTs, is explored in-depth, providing novel insights into their practical application. The “seizing, sensing and transforming” concept contributes a nuanced approach, considering both technological and human dimensions. This paper addresses the gaps in current literature by combining diverse elements such as Industry 4.0, risk assessment, sustainability practices and collaborative ecosystems. Its practical implications for managers and detailed exploration of research directions add tangible value, guiding future endeavors in enhancing pharmaceutical industry resilience.

In recent years, firms in almost all industries have conducted a number of initiatives to explore new digital technologies and to exploit their benefits. This frequently involves transformations of key business operations and affects products and processes, as well as organizational structures and management concepts. Companies need to establish management practices to govern these complex transformations. An important approach is to formulate a digital transformation strategy that serves as a central concept to integrate the entire coordination, prioritization, and implementation of digital transformations within a firm. The exploitation and integration of digital technologies often affect large parts of companies and even go beyond their borders, by impacting products, business processes, sales channels, and supply chains. Potential benefits of digitization are manifold and include increases in sales or productivity, innovations in value creation, as well as novel forms of interaction with customers, among others. As a result, entire business models can be reshaped or replaced (Downes and Nunes 2013). Owing to this wide scope and the far-reaching consequences, digital transformation strategies seek to coordinate and prioritize the many independent threads of digital transformation. To account for their company-spanning characteristics, digital transformation strategies cut across other business strategies and should be aligned with them (Fig. 1). While there are various concepts of IT strategies (Teubner 2013), these mostly define the current and the future operational activities, the necessary application systems and infrastructures, and the adequate organizational and financial framework for providing IT to carry out business operations within a company. Hence, IT strategies usually focus on the management of the IT infrastructure within a firm, with rather limited impact on driving innovations in business development. To some degree, this restricts the product-centric and customer-centric opportunities that arise from new digital technologies, which often cross firms’ borders. Further, IT strategies present systemcentric road maps to the future uses of technologies in a firm, but they do not necessarily account for the transformation of products, processes, and structural aspects that go along with the integration of technologies. Digital transformation strategies take on a different perspective and pursue different goals. Coming from a business-centric perspective, these strategies focus on the transformation of products, processes, and organizational aspects owing to new technologies. Their scope is more broadly designed and explicitly includes digital activities at the interface with or fully on the side of customers, such as Accepted after one revision by Prof. Dr. Sinz.

In the context of the ongoing digital transformation of education in various countries, China is actively integrating modern information technologies into the system for training specialists in the fields of art and design. This article examines the process of forming digital competence among students of art and design programs in Chinese universities, as well as the impact of digital technologies on the educational process. Digital competence is seen as a key factor for the successful professional socialization of future designers, encompassing not only technical skills in working with software but also abilities in creative self-expression, visual communication, and design using digital tools. The article provides a detailed analysis of the theoretical foundations of digital competence within the Chinese context, as well as the pedagogical conditions required for its development, such as the integration of digital technologies into the curriculum, project-based approaches, and the development of a digital culture through teaching ethics and intellectual property rights. Special attention is given to the use of advanced technologies such as virtual and augmented reality, 3D modeling, neural network tools, and online platforms for collaborative work. The article also discusses the prospects of developing digital workshops and virtual design labs, as well as the integration of artificial intelligence into the educational process. Research findings indicate that the integration of digital technologies into the curriculum contributes to increased student motivation, the development of their creative and analytical skills, and the enhancement of the quality of their final projects. In conclusion, the study emphasizes that successful digital transformation in education in China requires a comprehensive approach, including infrastructure development, teacher training, and the fostering of a critical attitude towards digital content among students.

Digital transformation in the energy and oil & gas sector is increasingly pivotal for optimizing operations, enhancing efficiency, and ensuring alignment with industry standards. This abstract explores how the integration of digital technologies—such as real-time data analytics, cloud-based systems, and automation—can revolutionize energy and oil & gas operations. By leveraging real-time data analytics, companies can monitor and adjust production processes with precision, leading to reduced operational downtime and optimized resource management. Cloud-based systems provide a scalable platform for storing and processing large volumes of data, facilitating better decision-making through enhanced collaboration and access to insights across multiple sites. Automation technologies streamline repetitive tasks, improving operational safety and minimizing human error, which contributes to cost savings and increased productivity. This study presents a conceptual framework for deploying digital tools to achieve operational excellence in the sector. The framework emphasizes aligning digital initiatives with core operational goals, ensuring compliance with industry standards, and fostering a data-driven culture to support continuous improvement. Additionally, it highlights the role of predictive maintenance in reducing equipment failures by analyzing historical data, thereby preventing costly unplanned downtimes. The paper also addresses the importance of cybersecurity measures in safeguarding digital infrastructure, given the increased exposure to cyber threats in a more interconnected operational environment. Ultimately, the integration of these digital technologies not only enhances efficiency but also supports sustainability efforts by optimizing energy use, reducing emissions, and advancing the shift towards greener energy solutions. By examining case studies and best practices, this abstract underscores the transformative potential of digitalization in driving long-term success and competitive advantage for energy and oil & gas companies.

This study investigates the effect of the Technology-Enhanced Learning (TeL) module on the digital transformation of course design for lecturers participating in the program. With higher education shifting towards digital transformation, professional development programmes aim to equip lecturers with the necessary skills for a digitally transformed curriculum. These skills promote student-centredness, engagement, inclusivity, and innovation. The study examines how the TeL module is utilized as an academic development intervention to foster digital pedagogy, reflective practice, and curriculum transformation. It assesses the impact of participation in the TeL module on lecturers’ integration of digital technologies into their teaching practices. Using the Substitution–Augmentation–Modification–Redefinition (SAMR) model as the sole analytical framework, the research examines the extent to which lecturers progress through the model’s four levels, Substitution, Augmentation, Modification, and Redefinition, during and after their engagement with the module. Studies show that TeL offers a systematic approach to integrating technology into teaching and encourages lecturers to move from using technology as a mere substitution to innovative approaches that enhance teaching and learning, promoting inclusivity and collaboration. Findings demonstrate that the TeL module provides a structured pathway for lecturers to move from adopting basic technology to transformative pedagogical practices. The study highlights key shifts in course design, including enhanced interactivity, increased learner engagement, and the creation of new learning experiences that were previously inconceivable without digital tools.,

This study determined the motivation, barriers, and self-efficacy on digital technology of the nurse educators in the selected HEIs in CALABARZON, Philippines. Varied aspects of socio-cultural, training and professional development, attitude, leadership and administration, and pedagogy influenced the motivation in digital technology among nurse educators. On the other hand, lack of internet service, requiring more time to fully integrate technology in teaching, lack of adequate and necessary training, unclear implication of technology in professional practice, and lack of competence in adopting technology hindered their digital technology integration. Self-efficacy is facilitated by easy access to resources from the online library, the capability to meet deadlines, the capacity to efficiently learn to use a new type of digital technology, and being able to carry out their ethico-legal responsibilities regarding their role as teachers. Motivation and barriers are interrelated variables that influence digital technology use and integration among nurse educators. Barriers and self-efficacy have a high positive relationship that when self-efficacy is low, a reduction of barriers is also noted. Thus, nurse educators must be provided with continued support and training as they adapt to the education landscape and as they embrace the instructional challenges brought about by digital technology in the 21st century classroom.

The article explores the role of knowledge management technologies in the digital transformation of quality management systems in food industry enterprises. It substantiates that knowledge has become a key strategic resource ensuring competitiveness, innovativeness, and sustainability of production in the context of globalization and the digital economy. The study demonstrates that an effective quality management system cannot function without integrating knowledge-based technologies that form the foundation of corporate memory, promote staff learning, experience exchange, and support informed managerial decision-making. Based on the analysis of classical theoretical approaches (Nonaka, Davenport, Probst), the essence of knowledge management is defined as a continuous cycle of creating, sharing, and applying knowledge within the production environment. International standards ISO 9001:2015, HACCP, IFS, and BRC are considered as institutional frameworks that regulate the processes of formalizing, preserving, and exchanging organizational knowledge. The paper identifies the key tools of knowledge management, including ERP systems, CRM platforms, data warehouses, expert systems, and AI/ML technologies. It is proven that their implementation enhances process transparency, reduces error risks, and enables the creation of intelligent quality management systems (Quality 4.0). The experience of leading global companies such as Nestlé, Danone, Unilever, and Cargill, as well as Ukrainian enterprises such as MHP, Halychyna, and Kernel, is analyzed to demonstrate practical realization of knowledge-oriented digital strategies in production processes. The research highlights that the integration of digital technologies and systematic knowledge management forms a dynamic development ecosystem where information is transformed into knowledge, and knowledge – into strategic decisions. Future research directions include developing methodologies for assessing the efficiency of knowledge-based technologies and creating maturity models for evaluating the digital transformation level of food industry enterprises.

The investigation into the evolution of the digital economy has yielded profound insights into its fundamental nature, the pivotal drivers guiding its advancement, as well as the trajectories characterizing the metamorphosis of economic operations within organizations. The outcomes of this inquiry are primed to underpin the effectiveness, calibre, and dependability of information-driven and analytical underpinnings, indispensable for informed managerial judgments geared towards nurturing the inventive potential inherent in the digital economy. Furthermore, these findings aim to address the impediments that curtail seamless digital transformation. Among the preeminent findings engendering novelty in this research, the subsequent elements stand out: the formulation of a comprehensive framework for the delineation and taxonomy of economic activities within the digital economy domain, encompassing both a classification schema for economic pursuits intrinsic to the digital sector and another for economic endeavours facilitated by the integration of digital technologies. A comprehensive array of metrics has been systematically devised to assess the evolution of the digital economy. This framework encompasses a gamut of indicators derived from information and communication technology (ICT) statistics, national economic accounts, fixed asset investments, and foreign trade, as well as indicators custom-developed in consonance with the proposed taxonomy of economic pursuits within the digital economy. This classification system comprises five distinct blocks, each comprising discrete sets of indicators: those pertaining to the ICT sector, the digital sector, organizational outlays on digital technologies, digital proficiency of the workforce, and a holistic gauge of the digital economy. An intricate methodology has been formulated to quantitatively evaluate the state, progression, and competitive standing of the ICT sector. This methodological construct encompasses algorithms for the computation of physical quantities of gross value added and fixed capital investment segregated by the nature of economic undertakings associated with the production of ICT goods and provisioning of ICT services. Also included are computations for the index of fixed capital formation rate, alongside indicators appraising the extent of the economy's engagement with international trade concerning diverse digital products.

Introduction. The formation of competitive advantages of business entities under modern conditions takes place in an environment of high economic uncertainty caused by global instability, the transformation of the world economic order, intensified globalization, digitalization, and digital transformation. The erosion of traditional market mechanisms and business models necessitates the search for new tools to ensure enterprise competitiveness. In this context, the development of entrepreneurial ecosystems is considered one of the key components of a contemporary economic model and an effective response to current challenges. Methods. The study applies a combination of general scientific and special research methods, including analysis and synthesis, induction and deduction, systemic and structural-logical approaches, as well as comparison, grouping, and generalization methods. The information base of the research consists of scientific works of domestic and foreign scholars, analytical reports of international organizations, statistical data, global innovation and entrepreneurial ecosystem rankings, and open-source materials. Results. The article examines the role of entrepreneurial ecosystems in the formation of competitive advantages of business entities. Key mechanisms through which ecosystems enhance enterprise competitiveness are identified, including the consolidation of financial, technological, and informational resources, knowledge exchange, integration of digital technologies, reduction of innovation risks, and acceleration of innovation implementation processes. The positions of national enterprises and the state in international ecosystem development rankings are analyzed, which makes it possible to objectively assess the current state of their functioning and identify major development constraints. Discussion. The obtained results have practical significance for developing enterprise strategies aimed at ensuring sustainable competitive advantages through participation in entrepreneurial ecosystems and serve as a theoretical basis for further research in the field of digital and innovation-driven economics. Keywords: competitive advantages, competitiveness, entrepreneurial ecosystems, economic entity, contemporary economic model, digitalization, globalization.

Purpose – The advancement of digital technology has significantly transformed the field of education, including Islamic Religious Education (PAI) learning. In Indonesia, the increasing number of internet users and the adoption of technological devices reflect a broad digital transformation. The Merdeka Belajar program demonstrates the government's commitment to digitizing education, including PAI. However, in rural areas such as Gunungkidul Regency, integrating technology into PAI learning still faces challenges, such as limited infrastructure readiness and teachers’ digital competence. Therefore, this study aims to identify the level of digital technology utilization in PAI learning, evaluate teachers’ digital competence, analyze the impact of technology integration on learning effectiveness, and develop a digital technology integration model relevant to the local context. Design/methods/approach – This study employs a qualitative approach with a descriptive method. Data were collected through observation, in-depth interviews, documentation, and surveys involving 30 PAI teachers from 19 senior high schools (SMA) in Gunungkidul Regency, selected using a purposive sampling technique. The analysis is based on the Technology Acceptance Model (TAM) and Technological, Pedagogical, and Content Knowledge (TPACK) frameworks to understand technology acceptance and teachers’ digital competence. Findings – The findings indicate that the utilization of digital technology in PAI learning is relatively widespread, with platforms such as Google Classroom, Moodle, and Edmodo being used. However, there are still gaps in infrastructure and teachers’ digital competence, particularly in creating interactive digital content. Most teachers still rely on simple presentation media and have not fully optimized technology for innovative learning. The integration of technology has been proven to enhance accessibility and interactivity in learning; however, it also poses challenges such as students’ dependency on technology and the limited training opportunities for teachers. To address these challenges, this study proposes a technology integration model that focuses on improving teachers’ digital competence, ensuring equitable infrastructure distribution, developing digital content, and implementing a hybrid learning model. Research implications – The findings provide recommendations for teachers, policymakers, and educational institutions to enhance the effectiveness of digital-based PAI learning. Several strategic steps are proposed, including intensive training for teachers in digital content creation, equalizing access to technology in remote areas, and implementing a hybrid learning model that combines conventional methods with digital technology. Furthermore, improving students’ digital literacy is also a crucial step to ensure that the integration of technology in PAI learning goes beyond mere accessibility and fosters a deeper understanding of Islamic values.

This paper elaborates on the role of higher education in knowledge management in the conditions of the digital economy, considers challenges and prospects connected with the digital transformation of economy and society and the necessity for the formation of new competencies with employees, analyses the trends of development of the digital economy in the Russian Federation and the level of digital literacy of the population and the state of personnel training for the digital sector, substantiates the importance of adapting the system of higher education to new realities through the integration of digital technologies into the educational process and development of digital competencies of students and teachers, and emphasizes the necessity for the system approach to the development of the digital economy in the Russian Federation, in particular, in the context of import substitution, investments in science and education, and commercialisation of R&D. The research methodology is founded on theoretical approaches to the educational process and its transformation under the influence of modern digitalisation trends. It covers the provisions of connectivism, constructivism, and the theory of active training and socio-cultural theory. These theoretical concepts are analysed in the context of Industry 4.0 and University 4.0, which involves a close integration of digital technologies into production and educational systems. General scientific methods of analysis, synthesis, observation, literature review, graphical method, etc. are used to formulate theoretical conclusions. The main value of the paper lies in substantiation of the necessity to create an adaptive organisational model of knowledge management, which combines academic traditions and values with the flexibility of information systems and the potential of digital technologies, as well as the generalisation of the adaptive measures of the higher education system, which are a reaction to current trends inherent to the educational environment.