Title:
Digital Transformation and Its Impact on Business Models

Authors:
Rev. Ukeyima Adams, USA

Abstract:

Digital transformation involves the integration of digital technologies into all facets of business operations, significantly altering traditional business models. This transformation reshapes value creation and delivery, moving from product-based models to service-oriented and data-driven approaches (Verhoef et al., 2021). Key technological advancements such as artificial intelligence (AI), big data, and cloud computing enable businesses to optimize operations and offer personalized customer experiences. Digital transformation fosters new revenue streams, particularly through subscription models, which have gained prominence in industries like entertainment (Li et al., 2017). Data analytics plays a critical role, enabling companies to leverage customer and operational data for more informed decision-making, boosting efficiency and innovation (Agarwal et al., 2020). However, challenges like high implementation costs, cultural barriers, and cybersecurity risks persist, making successful digital transformation complex yet essential for maintaining competitive advantage (Brown & Sikes, 2012). Despite these challenges, businesses that embrace digital transformation are better positioned for sustained innovation and long-term success.

DOI: https://doi.org/10.51505/IJEBMR.2025.9212