ABSTRACT

Considering the fact that the digitalization and its environment are comprised of two fundamental sub-system – social and technical, we can identify two competing forces acting in opposite directions. Internally, the technical sub-system drives the expansion of digitalization by optimization of the performance of the essential components, as well as by optimizing effectiveness and efficiency of the communication links between them.

However, the social sub-system restricts the expansion of digitalization driven by technical sub-system. Externally, the social sub-system of the environment drives the expansion of digitalization by providing an inviting target for more information channels. The technological sub-system restricts the expansion of digitalization driven by “pull” demand of social sub-system of the environment. However, it is the absence of the well-developed and pervasive technical infrastructure, caused by such temporary limitations as the cost of technology and spatial-temporal restrictions, that slows the expansion of digitalization into its environment.