The model of state management of economy on the basis of the internet of things

Abstract

Purpose: The purpose of the article is to substantiate the advantages and to develop recommendations for optimizing the state management of economy on the basis of the Internet of Things and to model this process by the example of modern Russia. Methodology: The method of modeling of socio-economic processes and systems, the method of classification and systematization, and the method of graphic representation of authors' conclusions and recommendations are used Results: The model of state management of economy on the basis of the Internet of Things is used-it showed advantages of solving the current problems of this managerial practice with the help of its digital modernization. This will allow ensuring systemic transition to Industry 4.0 in economy and optimizing the process of state management of economy due to increase of transparency and controllability of economy, reduction of expenditures for state management, and making of more rational state decisions. Advantages for economic subjects are related to automatic adaptation to changes in law and increase of accessibility of state services. Recommendations: In view of the determined barriers (necessity for social adaptation, deficit of financial resources, and insufficient technological readiness) and risks (risk of provision of security, risk of unprofitability of investments, and risk of unstable works of the Internet of Things), a perspective algorithm of implementation of the Internet of Things in the practice of state management of economy is offered, which reflects the logic of this process and could be a tool of its crisis management.