Digital Transformation in Business: Challenges and Opportunities for Sustainable Management

Review Article

Abstract

Digital transformation has emerged as a defining force in contemporary business, reshaping organizational strategies, operations, and stakeholder engagement through the integration of advanced digital technologies. Beyond the adoption of tools such as artificial intelligence, big data analytics, cloud computing, and the Internet of Things, digital transformation represents a paradigm shift in how businesses create value, foster innovation, and pursue sustainability. For organizations, this transformation offers significant opportunities, including enhanced operational efficiency, improved decision-making, stronger customer experiences, and the ability to align business objectives with environmental and social responsibility. In particular, digital technologies can optimize resource utilization, reduce carbon footprints, and support circular economy practices, thereby contributing to sustainable management and long-term competitiveness. However, the journey is fraught with challenges. Firms often encounter financial and infrastructural constraints, cybersecurity risks, skill gaps, regulatory complexities, and cultural resistance to change. These obstacles not only slow the pace of digital adoption but can also compromise its intended benefits. This paper critically examines both the opportunities and challenges associated with digital transformation, emphasizing its role in advancing sustainable management. By providing a balanced analysis, the study highlights strategic pathways for businesses to leverage digital tools effectively, mitigate risks, and ensure resilience in a dynamic global environment.