DIGITAL TRANSFORMATION: THE KEY TO SMART CITIES AND MODERN REGIONAL DEVELOPMENT

Abstract

The process of organizational change through the use of digital technologies and business models to improve economic performance and respond to changing consumer behavior is inevitable for modern organizations. Digital transformation is a comprehensive process of integrating modern digital technologies into economic, social and administrative systems, in order to achieve more effective, adaptive and sustainable forms of management, production and service. It is not limited to the simple implementation of technologies but implies a deep rethinking and reorganization of business models, public policies and social interactions. The significance of digital transformation for the economy is multidimensional. At the macroeconomic level, it accelerates economic growth by increasing productivity, encourages innovation and creates new markets and forms of employment. At the same time, digitalization contributes to greater transparency, flexibility and efficiency in the management of public resources, which in turn improves the investment climate and competitiveness at the regional and national levels. At the macroeconomic level, digital transformation allows enterprises to optimize their processes, personalize the services offered and respond more adequately to the needs of consumers in the conditions of a globalizing and high-tech economy. In addition, it creates prerequisites for digital inclusion and social innovation, which are essential for fair and sustainable economic progress. The aim of this study is to determine to what extent the demand for digital services is developing in Bulgarian regional development and what are the factors that limit this process. The determinants of demand are examined as a function of the interests and attitudes of users of digital services in the public sector.