The influence of basic economic concepts on the assessment of the conformity of the price and quality of products and services in the context of digitalization of technological processes

UDC 658.562
Publication date: 04.11.2020
International Journal of Professional Science №11-2020

The influence of basic economic concepts on the assessment of the conformity of the price and quality of products and services in the context of digitalization of technological processes

Smetanina T.V.
Candidate of Economic Sciences, Associate Professor
of St. Petersburg State University of Industrial Technologies,
St. Petersburg, RF
Abstract: Despite the development of technology, the emergence of digital products, the displacement of a significant number of products and services into an intangible form, the level of assessment, measurement, quality control, as well as compliance with its price, it relies on the methods and concepts of the late 19th and early 20th centuries. The digitalization of the economy only increases the role of the basic theoretical schools of management. The reason lies in the paramount importance of labor resources in the total set of scarce resources used in the production process. Comparing the experience of leading specialists in the field of management and economics with the organization of modern economic processes, one can draw conclusions about the value of basic concepts that can characterize products and services in the digital economy and give recommendations for their key understanding.
Keywords: Digitalization, smart business, exchange value, cyclicality, process, quality, price, product, service, item value.

This research topic is relevant. This is especially evident in the context of a sharp increase in the development of digital technologies and their participation in economic processes. Correspondence of price and quality, measurability of quality is what is argued over and what is actively discussed in scientific circles.

To determine the role of the basic concepts of utility, exchange value, labor in modern economic processes, based on the opinions of well-known theorists, is the purpose of this study.

All labor is, on the one hand, the expenditure of human labor power in the physiological sense — and in this quality of its identical, or abstractly human, labor forms the value of commodities. Any labor is, on the other hand, the expenditure of human labor power in a special expedient form, and in this quality of its concrete useful labor it creates use values ​​[1].

Labor in the same period of time can create different masses of use values. The masses of use values ​​depend on changes in the productive force and on the productivity of labor.

That is, you can spend an equal amount of labor, but get different masses of use values.

Simple average labor is used to evaluate complex labor. It is the expenditure of simple labor, which, on average, is possessed by the bodily organism of every ordinary person who does not differ in special development [1]. Labor is the father of wealth, land is its mother [2].

In the context of digitalization, the quality of the mass of use values ​​is changing. The expediency of labor prevails. Labor is discharged into non-material resulting forms. Physiological effort comes down to mental expenditure. Labor is becoming more intellectual. The physical component of labor is decreasing. This happened at the stage of industrialization of the economy. Currently taking place at the digitalization stage. Moreover, not only heavy machines are now involved in this process, but also digital means of communication, which are the result of the algorithmicization of processes taking place in society.

According to David Ricardo, «the value of an object, or the amount of any other object for which it is exchanged, depends on the comparative amount of labor required for its production, and not on the greater or lesser remuneration received for this labor. [3]»

Labor efforts prevail over material incentives. A person who produces labor is sometimes even more interested in his own realization than in the amount of remuneration received for him.

Adam Smith noted that “the word value is used in two different meanings and sometimes expresses the usefulness of an object, sometimes the purchase power relative to other objects, which is provided by the possession of it. The first can be called the value of consumption, the second — the exchange value ”[3]. Exchange value determines the amount that are willing to pay for the result of labor in order to have a definite consumer value. Under the conditions of a change in the nature of the result of labor, exchange value and consumer value are dominant in the production process.

If an object has no use value at all, in other words, if we cannot derive either pleasure or benefit from it for ourselves, then it will have no exchange value, despite its rarity and the amount of labor required to produce it. …

Utility items derive their exchange value from two sources: rarity and the amount of labor required to obtain them.

There are some items whose value is determined solely by their rarity. No labor is able to increase the number of such items, and therefore their value cannot be diminished by an increase in supply. Some rare paintings and statues, rare books and coins, wines of special quality, obtained from grapes growing on a specific soil, the space of which is very limited, belong to this category. Their value does not in the least depend on the labor required for their initial production, and fluctuates, depending on the change in the wealth and inclinations of those who want to possess them. Consider at the present time the work of the service personnel and the work of the teacher. They can be compared in terms of the amount of effort invested in achieving exchange value. For the labor of service personnel, the exchange value is higher, since the result is the value of consumption we get immediately. A teacher who has invested more preparatory effort in the result of labor receives a lower exchange value, since the result of the value of consumption is deferred. In addition, there is one more feature. This is a rare labor. Failure to comply with copyright protection for intellectual work leads to a decrease in its value. And hence the fall in its exchange value. Considering the work of a teacher as a result of intellectual work, it is possible to compare its exchange value with the value of a product produced in the digital economy, where software products, as well as secret formulas and algorithms are the basis.

“The real cost of every thing,” says Hell. Smith, — that every thing really costs a person who wants to acquire it, this is the labor and effort of acquiring it. That each thing is really worth to the person who acquired it and who wishes to dispose of it, or exchange it for something else, is labor and effort that can be saved for him and which he can impose on other persons. Labor was the first price, the original coin that was paid for everything. «

If, in relation to the labor of service personnel, the acquisition efforts for the person who is the final consumer are insignificant. Then, in relation to the educational process, a person must spend considerable effort to understand the value of the product. Hence there is a decrease in the exchange value of the teacher’s commodity.

In the context of digitalization of technological processes, exchange value falls even more. It becomes even more difficult to consume a product characterized by digital technological processes. It is necessary to understand the consumption process. A person, that is, the final consumer, must be ready to purchase a product with such reinforcement [4].

Such a significant increase in the amount of work that can be performed by the same number of workers as a result of the division of labor depends on three different conditions: first, on the increase in the dexterity of each individual worker; secondly, from saving time, which is usually wasted in the transition from one type of labor to another; and, finally, from the invention of a large number of machines that facilitate and reduce labor and allow one person to perform the work of several [5].

In the book Drury K. defines the importance of organizational work for the successful functioning of firms. In the context of digitalization of technological processes, this is an important aspect. It is necessary to clearly understand the distribution of powers, lines of authority and reporting [6]. This is the only way to start digitizing processes. The digitalization of processes is directly related to the services provided by IT specialists. The quality of the service must be continually assessed. The service provider must control the degree to which the customer’s needs are met. If the needs are not fully met, the price of the service should be revised [7].

Quality is a set of characteristics of a product or service that form the ability of a product to satisfy formed and implied needs [8].

The concept of «reasonable price» should be associated with the degree to which the customer’s needs are satisfied. Quality and reasonable price must be proportionate.

The quality of a service is made up of the quality of the processes it consists of. This is very important to understand when digitalizing technological processes.

Quality assurance is determined by Shewhart-Deming cycles.

The issue of quality began to rise from ancient times, namely from the period when a person took a stone in his hands. That is, the simplest means of production appeared. And then the need for quality control arose. But to be aware of this process from a period of 1,000,000 years ago to 5,000 years ago. This process was associated with the development of human community and the beginning of quality control was associated with the construction of the pyramids in ancient Egypt [9].

From 1787 to 1924 the turning point in the development of quality control begins.

This process was due to a change in the quality of the means of production.

The digitalization of technological processes, spurred on by the crisis in society, has led to a new leap forward development of quality control.

Providing quality digital services requires the organizational maturity of the service providers themselves.

As a result of the digitalization of services, the quality of products and services began to be assessed more individually. Large companies that are accustomed to living in the old way have sharply reduced their life cycle. However, there were also leaders who were able to quickly respond to ongoing processes. These companies include Adobe, Amazon, Apple, Facebook, Google, and Netflix [10]

The digital process society relies on new technologies. New directions appear that can explain the processes of digitalization of the economy. So a product manager is a role that has elements of engineering, marketing, research and project management, and this role is key to creating outstanding products. It requires continuous attention to the integrity of the product, integrating under a single vision how a product is designed, created, named, branded and marketed. Combining these functions, it is possible to regulate the exchange value of a product in the context of digitalization. This is the direction of movement towards smart business, which involves the development of quality management of products and services in modern business conditions [11].

Much attention is paid to the response to innovation, functionality and audits. Statistical analysis allows you to visually integrate into modern processes in the economy. Compared to the basic concepts of exchange value, the modern price of products and services depends on a much larger number of factors that are needed

When the question of price arises, you need to focus on the concept of the average check. If the assortment offers positions with a fairly high price, then they generally determine the overall result of the received proceeds from sales. The high price pulls up the general indicators of the economic activity of the organization. Due to this approach, it is possible to project the consumer value and utility of the product, services offered for sale. By implicitly buying the result of labor at a lower cost, the buyer will still subconsciously overpay for the quality associated with the high price level of certain assortment items. According to Dan Ariely, people make decisions based on comparison. This is the predictable irrationality of their decisions [12].

Despite the development of digitalization, the influence of the school of scientific management on management processes in modern society has in no way decreased. Four basic rules of management

1 Find the right people.

2 Give them the job they are best suited for.

3 Don’t forget about motivation.

4 Help them unite into one team and work like this


(Everything else is administrative nonsense.) These are the basics, which at one time were promoted by F. Taylor, G. Gant, F. and L. Gilbrets, D. Emerson. The significance of these teachings does not diminish in the modern world. The reason for this is the primacy of a scarce resource — labor, in all processes resulting in the creation of added value.

It is also important to meet the basic needs of a person as a producing system. If a person is safe, then he is engaged in the implementation of the tasks assigned to him with greater responsibility and diligence. This was determined by the behavioral school, including A. Maslow [13].

Information technology is characterized by value in relation to the customer, the costs of information technology are rational and controlled. The risks associated with the production of information technology are commensurate with the level of their usefulness.

The effectiveness of information technology is spelled out in standards and bodies of knowledge that offer process models (COBIT, ITIL®, ISO / IEC 20000). The purpose of the process defines what the process should provide in a certain fixed period of time. The goals must meet the SMART criteria (specific, measurable, achievable, relevant, time-bound).

For the assessment, it is necessary to rely on the Shewhart-Deming cycle, as well as to be aware of the exchange value of digital goods [14].

The standardization process was formulated by G. Ford. Who was also a representative of the School of Scientific Management. It is impossible to match the price and quality without it. Therefore, abandoning standards in favor of those that are not introduced and do not correspond to supporting processes is impossible [15].


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