Significant Financial Changes for Technological Development
In recent months, Poland has seen major changes in financing new initiatives linked to the technological development of enterprises. The promise to carry out reforms aimed at restoring the rule of law and eliminating unconstitutional measures enacted by the previous government has led to a promise from the European Union to launch funds from the National Recovery Plan (KPO). The National Recovery Plan is a substantial fund created by the European Commission to aid in the economic recovery of European economies after the pandemic. Poland faced temporary issues in gaining access to these funds. Hopefully, they will soon be fully operational.
How Much Funding is Allocated for Digitalization in the National Recovery Fund?
Under the National Recovery Fund, Poland will receive 268 billion PLN from the European Union, including 113.28 billion PLN in grants and 154.81 billion PLN in preferential loans. According to EU goals, 46.6% of the funds, amounting to 124.89 billion PLN, must be allocated for climate goals, while another 21.36%, or 57.2 billion PLN, is to be directed towards digital transformation.
The European Commission’s interpretation of digital transformation includes all initiatives that aim, among other things, to remove organizational, legal, and administrative barriers that could potentially hinder investments in high-speed internet and the development of sectors based on online sales and services, i.e., the e-commerce industry. The transformation will also focus on improving infrastructural conditions and cybersecurity in the network.
Investments tied to modernizing Poland’s economy will be a critical part of building a new, digitally modern Poland. Consequently, businesses can expect relatively accessible funding for all kinds of initiatives aimed at increasing competitiveness through creating digital and analytical infrastructure.
Investments in the Digital Development of Enterprises
There are no limitations on developing future investments related to the digitalization of companies. Management teams can submit various types of projects, from simple database restructuring or integration to enhance information flow in sales or production to implementing high-level artificial intelligence solutions in decision-making processes.
Intuitively, we can assume that simple database projects will be relatively easy to implement and execute. The most challenging part will be designing, describing, and implementing projects associated with new technologies in artificial intelligence. The time to spend the KPO funds on digital transformation is limited. The funds must be used by mid-2026. Due to time constraints and limited production resources, most digital transformation projects under KPO will likely focus on creating and integrating database systems.
Database Projects in Digital Transformation
Integrated Financial and Accounting Systems
Today, nearly every company in Poland maintains accounting and oversees warehouse operations, production, or services using integrated accounting systems.
In the early 21st century, each department in a company, such as production, distribution, transportation, human resources, and warehousing, had separate accounting-analytical systems. These systems were unconnected, necessitating financial analysts to manually collect data from different modules and compile it into financial reports. The next development stage introduced integrated systems where all modules were interconnected. Such systems dominate the accounting departments of Polish companies, frequently updated and modernized. However, their fundamental functionality and information processing efficiency haven’t significantly changed in two decades.
Management Accounting
To achieve high analytical capabilities and make informed decisions, management accounting was invented. In addition to the standard accounting accounts mandated by the state for tax calculation, companies introduced additional, twin accounts for more insightful cost qualification.
For instance, in a bread production setup, costs are recorded under various categories like energy, labor, insurance, etc. This type of cost distribution is known as categorical costs. Conversely, revenues from bread sales can be recorded under a single operational sales account.
Without detailed information, it’s impossible to make rational investment decisions related to product production and distribution. Thus, management accounting, developed in the mid-19th century, required accountants to record costs according to specific processes, product types, or locations.
Increasing Analytical Capabilities of Programs
The first financial-accounting systems were digital copies of traditional accounting books. These programs were developed in basic programming languages and operated in a DOS text-based environment.
The rapid economic development necessitated acquiring new information. Over time, financial-accounting systems evolved, utilizing indexes and flags (attributes attached to individual entries) rather than adding more detailed accounts.
Digital Evolution vs. Digital Transformation
All organisms on Earth owe their form to evolution, transforming initially inefficient beings into increasingly refined ones. This analogy fits the digital transformation of businesses. Digital evolution in companies may resemble natural selection, leading to asymmetric growth and imbalances. By contrast, non-evolutionary or technological development introduces entirely new solutions unrelated to previous forms.
External Records
Most companies maintain an integrated financial-accounting system alongside numerous small databases and simple systems for specific tasks. Such external records are common, like customer service logs in Excel for a helpdesk, where call center staff document conversation notes, classify topics, and record customer contact details.
System Must Include All Data
Digital transformation could be as simple as organizing all existing records into a central database system. For example, modern manufacturing companies like Kronospan Poland prohibit using spreadsheets, consolidating all information in the system.
Intellectual Preparation
The task of organizing reports, defining information scopes, and identifying future needs for predictive models and market analyses requires thorough intellectual effort. Before restructuring the system, companies need to assess current information areas, identify external records, and anticipate future data needs.
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