Organizational support for the digital transformation of cooperation networks and the implementation of cyber+social systems

Digital economy: theory and practice

The implementation of the industrial cooperative networks based on cyber-social systems means a new stage of the digital transformation within the Industry 4.0. The core of such networks are the cyber-physical systems of manufacturing firms. However, the cyber-social systems represent systems of increased complexity relative to cyber-physical systems. They provide interaction between machines, human-machine interaction, interaction between independent business entities, as well as that of producers and consumers. The complexity of cyber-social systems requires the development of the new decision-making support. The article defines the directions of organizational and managerial innovations for the digital transformation of these complex industrial cooperative networks. The first one includes innovations that deepen the division of labor, mainly, the coopetition as an opportunity that is provided by the rise of information society. The second direction is related to the stimulation of organizational innovation designed to combine the physical and intellectual capital through the application of digital technologies. The criterion for success of innovation designed for the digital transformation of the cooperative network through the introduction of a cyber-social system is to achieve a synergistic effect on the resource flows. The article contributes to the methodology of analysis of the network as a resource allocation mechanism. It develops the conceptual model of interfirm network organization, according to which the cyber-physical system of industrial firms, machinery and equipment of which are connected via the Industrial Internet, maintains the movement of fixed capital flow. Then, this flow brings about the flow of working capital, which circulates in the wider Internet of things, via the interaction between producers and consumers of industrial goods and services. The model also accounts for the flows of intangible resources that enables these physical flows i.e. information, trust, intellectual and human capital flows. The proposed approach assumes the integration of big data generated by the digitalization of the production business processes, big data on consumer preferences, as well as quantitative and qualitative information extracted from the data stream on the consumption of industrial goods and services. Thus, the article outlines an organizational approach that allows to coordinate supply and demand for industrial goods and services by the mean of cyber-social network.