Digital Transformation in a Modern Organization: Opportunities and Challenges

Abstract

Digital transformation (DT) is a new way for modern organizations to integrate digital technologies into their organizational practices, strategies, and culture. Transformation trends are observable in practices such as the adoption of cloud computing systems, the use of artificial intelligence (AI) across different organizational functions, the Internet of Things (IoT), and the integration of big data analytics, which are used by different types of organizations. All of those practices became critical in organizational development and competitiveness. This research investigates the most current processes and tries to identify opportunities and challenges of DT. The opportunities of DT include enhanced operational efficiency, improved customer experiences, and new business models (Westerman et al., 2014). On the other hand, DT is associated with major challenges, including resistance to change by involved parties, cybersecurity threats, and the need for upskilling existing employees (Bharadwaj et al., 2013). Leadership and top managerial involvement in the process of DT are also important issues; they play a crucial role in guiding organizations through the challenges of digital transformation and ensuring that technology adoption aligns with organizational goals (Jonathan, 2020). The purpose of this paper is to explore opportunities and challenges of digital transformation in modern organizations from a practical perspective and formulate strategic recommendations for successful implementation. The research topic is timely and presents novel findings that add value for both business practitioners and academics in formulating the best strategies to align with successful DT practices, maximize benefits, and handle challenges for the best of organizational performance.