Founder and CEO, Global People LLC, USA, Miami
MODEL OF REMOTE MANAGEMENT OF BUSINESS SCALING AND STRATEGIC DEVELOPMENT UNDER CONDITIONS OF DIGITAL TRANSFORMATION
ABSTRACT
The article presents a conceptual model of remote management of business scaling and strategic development under conditions of digital transformation. The definitions of "scaling" and "strategic business development" are clarified, and their interrelation is identified. It is noted that scaling is considered as an instrument for implementing strategic objectives through business expansion, market entry, and the adoption of digital solutions, while not being limited to specific areas or tasks. The key conceptual features of the joint implementation of these processes under digitalization are identified, including dynamic strategy development, automation of business processes, the formation of digital business models, the development of digital communications, the integration of intelligent analytics, and digital personnel management. Based on these provisions, the conceptual foundations of remote business management are theoretically substantiated. Analogous to the levels of digitalization, the article systematizes the levels of remote business management, categorized as initial (partial digitalization), basic (digitalization of departments and functions), and advanced (full automation and integration of intelligent technologies). The author’s model is presented, serving as an aggregated reflection of the conceptual understanding of remote management and its reproduction in the context of business scaling and strategic development within the digital environment.
АННОТАЦИЯ
В статье раскрывается концептуальная модель удаленного управления масштабированием и стратегическим развитием бизнеса в условиях цифровой трансформации. Уточнены понятия «масштабирование» и «стратегическое развитие бизнеса», выявлена их взаимосвязь. Отмечается, что масштабирование рассматривается в качестве инструмент реализации стратегических целей за счет расширения бизнеса, освоения новых рынков и внедрения цифровых решений, при этом не ограничивается по своим областям влияния и специфическим задачам. Определяются основополагающие концептуальные особенности совместной реализации указанных процессов в условиях цифровизации, сводящиеся к динамизму стратегий, автоматизации бизнес-процессов, формированию цифровых бизнес-моделей, развитию цифровых коммуникаций, интеграции интеллектуальной аналитики и цифровому управлению персоналом. На основании приведенных положений теоретически обосновываются концептуальные положения удаленного управления бизнесом. Аналогично уровням цифровизации, систематизированы уровни удаленного управления бизнесом, разделенные на начальный (частичная цифровизация), базовый (цифровизация отделов и функций) и продвинутый (полная автоматизация и интеграция интеллектуальных технологий). Представлена авторская модель, служащая агрегированным отражением концептуальных представлений об удаленном управлении и его воспроизводстве при масштабировании и стратегическом развитии бизнеса в реалиях цифровой среды.
Keywords: remote business management, business scaling in the digital economy, strategic company development in remote format, digital transformation of business systems, digital business models, automation in remote management, levels of remote management.
Ключевые слова: удаленное управление бизнесом, масштабирование бизнеса в цифровой экономике, стратегическое развитие компании в удаленном формате, цифровая трансформация бизнес-системы, цифровые бизнес-модели, автоматизация в удаленном управлении, уровни удаленного управления.
Introduction
In the context of the modern transformational economy, the integration of digital technologies into the operations of business structures is gaining increasing importance. This trend has a natural impact on the state and forms of labor relations, the organizational structure of businesses, and leads to shifts in the preferred methods of strategic management. One manifestation of these processes is remote employment, the emergence of which has necessitated a revision of approaches to personnel management and business development [13]. According to aggregated data, in 2023, over 28% of workers worldwide were actively engaged in remote or hybrid employment; moreover, the annual growth rate of remote workers remained consistently at 1–3% over the past eight years (Figure 1).
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Figure 1. Global remote employment statistics [12]
Particular leadership in the spread of remote work has been demonstrated by the fields of information technology, finance, marketing, and project management, which are rich in successful practices of organizing remote development management due to the lack of dependence on physical assets [12]. At the same time, the structure of remote employment remains uneven; currently, more than 16% of companies operate entirely in a remote format, and 62% of employees aged 22 to 65 have at least some experience with remote work. Since 2009, the growth in remote employment has amounted to 159%, indicating a restructuring of the labor market [9; 12; 13].
For this reason, remote employment is viewed as one of the ways to increase labor efficiency and transition business activities toward strategic development management. The phenomenon of remote employment is emerging and evolving in parallel with the active digitalization of business models and the shift of businesses toward technological work formats. These provide opportunities to elevate a company’s operations to a potentially higher level of controllability through the use of data and information subsystems. The ultimate effects of digital business models are assumed to include increased process execution speed, enhanced data exchange, and cost reduction [3].
At the same time, it is acknowledged that the implementation of remote work formats cannot occur without a revision of current management approaches, as it necessitates simultaneous oversight of distributed teams, optimization of communication, and the maintenance of corporate culture in a digital environment [5].
Thus, the relevance of developing business models capable of functioning effectively in both physical and digital environments, especially when implemented jointly, is becoming increasingly apparent. This corresponds to the transitional format of economic functioning and the ongoing processes of digital transformation. However, questions remain open regarding the development of management models that, in addition to digitalization, ensure the preservation of a company’s competitive advantages when transitioning to a digital format of strategic development and scaling—i.e., in a remote management mode.
The aim of the study is to theoretically substantiate and develop a conceptual model of remote management of business scaling and strategic development under conditions of digital transformation.
The theoretical and methodological foundation of the research consists of publicly available statistical data and academic works in the fields of digital transformation of business models, scaling management, and business development, as well as studies that specify the characteristics of these processes within the context of the digital economy. The study employs bibliographic review, analysis, synthesis, comparative research, and generalization of existing studies, which collectively provide the theoretical basis for developing the model of remote management for business scaling and strategic development in the digital transformation environment.
Before constructing the model, it is important to define the boundaries of the conceptual and categorical framework that determines its specificity and content. Notably, the concepts of business scaling and strategic development are closely interrelated and are often viewed as complementary elements of a unified process of managing company growth.
In the most general sense, business scaling is understood as a directed process of expanding an organization’s activities with the aim of increasing market share, broadening geographic presence, strengthening competitive positions, and optimizing operational costs. However, atypical objectives of scaling can also be identified, which do not exclude the necessity of expanding the scope of activities.
As rightly noted in the work of A.E. Vostroknutov and V.I. Loyko, scaling often implies not merely the quantitative growth of a company, but is accompanied by internal restructuring of the business model. This process involves the revision of operations, changes in organizational structure, and the modernization of methods for interacting with both internal and external stakeholders [2].
At the internal level, the key stakeholders in business scaling are the owners; at the external level — investors, contributors, and partners, who also benefit from the company’s successful operation and development. Moreover, scaling can be viewed both as a strategy and as an end goal of business development.
Strategic business development, on the other hand, is a broader and more comprehensive concept. Strategic development processes are associated with actions aimed at setting long-term goals, determining priority areas of activity, managing investment flows, and implementing innovative initiatives (though not limited to them). As a rule, strategic development is primarily focused on strengthening a company’s market position and enhancing its competitiveness as the overarching objectives.
It is worth noting that the connection between business scaling and strategic development lies in the fact that scaling serves as a tool for implementing growth strategies (Figure 2). Scaling acts as a transformation-triggering mechanism that translates the company’s strategic directives into concrete actions aimed at business expansion. This perspective is supported by the research of G.L. Azoyev, E.V. Sumarokova, and A.N. Kotova, who view scaling as a mechanism for achieving strategic goals through market expansion, customer acquisition, and increased economic returns. The emphasis is placed on guiding the business along a trajectory of managed growth and the application of marketing tools [1].
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Figure 2. Business scaling and strategic development, compiled by the author
Building on the concepts illustrated in Figure 2, it should be noted that under contemporary conditions, the processes of business scaling and strategic development—primarily influenced by digital transformation—acquire characteristics of dynamism, technological sophistication, and complexity in the interrelationships between key elements of business systems. This manifests on multiple levels. For instance, as emphasized by A.N. Makin and A.N. Kislyakov, business scaling and strategic planning in the era of digital transformation necessitate the use of innovative performance evaluation methods based on the systemic integration of big data, intelligent analytics, and factor analysis techniques [8]. Accordingly, strategic business development in the digital economy cannot disregard these considerations, thereby creating the imperative to implement digital tools for modeling various business development scenarios.
An important characteristic vector defining the specifics of business scaling and strategic development under conditions of digital transformation is also the automation and rationalization of business processes. In the works of T.A. Gilyova, A.V. Babkin, and G.A. Gilyov, it is noted that modern strategic development is simply impossible without integrating the business into digital ecosystems, which provide organizations with access to new markets, digital platforms, and integration services [3]. The ecosystem approach is only one of the existing methods of automation and rationalization, as other models for transitioning companies into the digital environment are also distinguished.
Nevertheless, common effects and principles of business scaling and strategic development in the context of digital transformation can be traced, expressed in the necessity of network interaction and continuous revision of business operating models. Predominantly, digital analytics technologies are utilized, which not only enable retrospective data evaluation but also elevate the analysis to a prognostic and decision-support level.
A natural manifestation of the impact of digitalization on business scaling and strategic development under conditions of digital transformation is the transformation of approaches to human resource management. Human resources, together with financial, intangible assets, and information, determine the state and resource potential of modern business. Notably, in this context, A.L. Denisova and A.S. Bunkin emphasize that strategic development of an organization is impossible without the formation of digital competencies among personnel, optimization of HR processes, and the implementation of a project-based management approach. Scaling of HR processes implies the automation of recruitment, remote training, introduction of digital document management, utilization of HR analytics, and other technical and technological solutions [4].
Thus, the specific characteristics of business scaling and strategic development under conditions of digital transformation can be summarized as follows:
– Firstly, the dynamism of the strategic decisions being developed;
– Secondly, the total automation, rationalization, and optimization of business processes;
– Thirdly, the creation of value in the digital environment through gaining advantages derived from its influence (platform and network effects; data collection; expanded presence; digital strategies, etc.);
– Fourthly, the transition to digital (either fully or partially digitized) business models based on scaling through data, intelligent technologies, and online interaction channels;
– Fifthly, the active application of digital technologies for organizing interaction, communication, and remote information exchange, which opens the potential for remote management;
– Sixthly, the development of prospects for intelligent management support, the implementation of predictive analytics, and business intelligence systems, through which delegation of certain authorities to algorithms is achieved, thereby facilitating remote control over the financial and operational activities of the business;
– Seventhly, that business scaling and strategic development can be directly carried out through digitalization by digitizing processes and leveraging the capabilities of digital transformation within the business.
At the intersection of the aforementioned characteristics, the prospects for organizing remote management of business scaling and strategic development under conditions of digital transformation (as a result of digitization) become evident. Nevertheless, the general ideas and conceptual foundations of remote management are predominantly presented in a fragmented manner—there is a lack of both fundamental theoretical and applied frameworks, as well as clear empirical data illustrating the effectiveness of such management. However, certain theoretical conceptions of the processes have already been formed.
For example, as noted by M.N. Poddubnaya and S.A. Kozlenko, the digitalization of the economy transforms the structure of international management methods, which is clearly manifested in the model of remote management. The authors observe that today the main emphasis shifts towards the use of global digital platforms, cloud services, and distributed management systems, which effectively become the infrastructure for autonomous business management from anywhere in the world. Collectively, such infrastructure is necessary to coordinate the activities of geographically dispersed teams; management shifts towards an organization model not bound to physical offices [10].
However, remote management cannot be deployed solely on the basis of digitized business models; besides this circumstance, it is necessary to consider the corresponding risks of remote management. Drawing on the theses of M.V. Khachaturov and E.V. Klicheva, it should be noted that business analytics and visualization tools must become mandatory elements in digital business models, integrated into processes and reflecting their real-time state. The basis of a digital business model may be a platform—an aggregated resource with advanced security, through which digital performance metrics of the company are collected, aggregated, and monitored [14]. Moreover, depending on the industry and business specifics, data collection methods also vary (both strictly digital methods and those related to physical environments—such as sensors, reading devices, tracking systems, etc.—may be used).
When working with physical businesses, the digitalization of internal business processes becomes an equally important element of remote management. For example, in the work of I.V. Logunova and V.V. Chekryzhov, the mechanism of business process transformation in an industrial enterprise is revealed, which is based on automation, the application of BPM systems, and end-to-end digitalization of operations. The authors emphasize that to ensure scalability and strategic development, the integration of systems—a combination of information technologies and technical solutions (including infrastructure)—is necessary; these systems become an integral part of the organizational structure of the enterprise [7]. Extrapolating the authors’ theses, it should be noted that within remote management, these systems ensure transparency, task execution control, and manageability at all levels of the business, thereby acquiring critical importance for the company.
Therefore, when conceptually and theoretically considering the foundations of remote management of business scaling and strategic development under conditions of digital transformation, it can be stated that such management is based on the application of integrated digital systems, platform solutions, and business ecosystems aligned with the physical infrastructure and real processes occurring within the company. Remote management should comply with a set of “recommended,” and ideally mandatory, characteristics:
- Data security and integrity, ensuring correspondence to actual processes;
- Consequently, controllability of the business and all its areas regardless of factors such as remoteness, territorial location, etc.;
- The ability to modify processes remotely during operations, including those involving physical infrastructure (however, management will be organized through cloud-based or platform technologies);
- Strategic development driven by the use of automation and minimization of human involvement, except in critically significant areas.
Among other considerations, the primary necessity remains the preservation of control over actual processes and business operations, as without this, the entire purpose of remote management would be lost. Moreover, strategic development and scaling would become impossible. It is advisable to have backup remote management mechanisms that, in the event of catastrophic failures or deviations, can be activated to drastically influence the situation. At the same time, a digital foundation for remote management is essential, comprising digital systems, integrated technologies, and their incorporation into the business model as an ecosystem.
Based on these premises, three levels of remote management can be distinguished — initial, basic, and advanced. Drawing on contemporary scientific literature, their content can be delineated as follows (Table 1):
Table 1.
Levels of remote business management, compiled by the author based on data from [5; 6; 15]
|
№ |
Level |
Characteristic |
|
1 |
Initial |
Characterized by the selective transfer of individual operations and processes into the digital environment with the possibility of remote influence and monitoring. Companies are limited to basic measures, namely transferring individual employees or small groups to remote work. Remote management at this stage includes partial automation of certain functions (e.g., document flow, reporting) and involves the use of basic online communication tools (email, messengers). There is weak regulation of remote interaction and its principles. Additionally, key challenges at this stage include employees’ difficulties with self-organization, insufficiently developed rules for remote interaction, and a lack of digital skills. |
|
2 |
Basic |
Assumes expanded use of digital tools for managing not individual tasks, but functional areas or departments. The basic level is characterized by the integration of corporate services (such as cloud storage, collaboration platforms), the establishment of remote interaction regulations, initial automation of control and planning processes, as well as the transfer of some HR, project management, and communication functions into the digital environment without the need to work with physical premises. In fact, a system of remote interaction between management and staff is formed, and companies begin to realize the advantages of hybrid employment models. |
|
3 |
Advanced |
Characterized by the full integration of digital technologies into all key company processes. At the advanced level, remote management is possible and encompasses all business processes of the organization, featuring automation of routine tasks, the use of intelligent analytical systems, and platforms supporting managerial decision-making. A mandatory condition is the formation of elements of autonomy (e.g., automated task distribution, predictive control mechanisms), which allow detachment from managerial processes and shift towards “observation from the outside.” A natural consequence of the advanced level of remote management is the gradual restructuring of the business, redistribution of roles, and orientation towards new management methods. However, the need to retain resources remains—business continues to require coordination, management, and periodic human involvement in critical decisions (as well as in crisis situations). |
Thus, it is evident that the levels of remote management directly correspond to the digital maturity of the business, since digital infrastructure serves as the foundation for building remote management models. In relation to business scaling and strategic development, the transition to remote management may become one of the tasks involved in executing these processes during expansion into the digital environment [11].
The following model is developed (Figure 3). This model is intended to facilitate the management of scaling and development under conditions of digital transformation and remote work organization. Within the target block of the model, strategic objectives are outlined, which can generally be summarized as ensuring business growth through organizing the work of key employees in a remote format. The remaining blocks reveal the model’s supporting influence on the business state and reflect the main areas defining the specifics of the company’s remote operations.
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Figure 3. Model of remote management of business scaling and strategic development under conditions of digital transformation, developed by the author
Based on Figure 3, it is also important to pay particular attention to the effectiveness control of the model. Monitoring should be conducted both from the perspective of traditional business performance metrics and by considering factors such as security, dependence on human involvement, and autonomy. Relevant metrics may be introduced depending on the state and activities of the business; however, their definition directly depends on the company’s priorities.
Thus, summarizing the conducted research, the following conclusions can be drawn:
- Remote management of business scaling and strategic development under conditions of digital transformation is a process based on the integration of digital platforms, intelligent analytical systems, ecosystem interactions, and remote control tools, necessary to ensure controlled business expansion and the achievement of strategic objectives regardless of the physical distance between business units and process participants.
- The organization of remote management of business scaling and strategic development in the context of digital transformation is characterized by several features, namely a high degree of process automation and rationalization, integration of digital technologies into strategic planning, a focus on value creation in the digital environment, the necessity of continuous oversight of distributed teams, as well as the implementation of intelligent support and predictive analytics to ensure business manageability.
- Promising approaches to implementing remote management of business scaling and strategic development under digital transformation conditions include phased development of the company’s digital infrastructure, integration of cloud and platform solutions to support all business processes, transition to an advanced level of digital maturity with a high degree of operational autonomy, expanded use of artificial intelligence for decision-making, and the creation of digital systems supporting long-term strategic business development.
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