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FAT III AW

The literature review by Harshika Jethwani explores the impact of digital transformation on modern business, emphasizing its role in enhancing operational efficiency, customer engagement, and the emergence of new business models. It highlights challenges such as cultural resistance and cybersecurity risks while predicting future trends driven by AI, machine learning, and IoT. The review concludes by underscoring the necessity for businesses to prioritize digital transformation to maintain competitiveness and innovation.

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9 views

FAT III AW

The literature review by Harshika Jethwani explores the impact of digital transformation on modern business, emphasizing its role in enhancing operational efficiency, customer engagement, and the emergence of new business models. It highlights challenges such as cultural resistance and cybersecurity risks while predicting future trends driven by AI, machine learning, and IoT. The review concludes by underscoring the necessity for businesses to prioritize digital transformation to maintain competitiveness and innovation.

Uploaded by

jethwaniharshika
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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LITERATURE REVIEW

NAME: HARSHIKA JETHWANI


PRN: 1062220735
COURSE: TY BBA GM&EM
TOPIC: THE IMPACT OF DIGITAL
TRANSFORMATION ON MODERN BUISNESS
1. Introduction

Overview of Digital Transformation: Provide a brief explanation of


what digital transformation entails, including the integration of digital
technology into all areas of business, resulting in fundamental changes
to how businesses operate and deliver value to customers.
Importance of the Topic: Highlight why digital transformation is
essential in the current business landscape and its relevance to
competitiveness, customer experience, and innovation.
Scope of the Review: Briefly state the scope of the literature review,
including key areas of focus such as operational efficiency, customer
engagement, and business models.

2. Digital Transformation and Operational Efficiency

• Automation and Process Optimization: Discuss how digital


transformation automates repetitive tasks and optimizes
processes. Studies show that businesses adopting technologies
like AI, machine learning, and IoT experience significant gains in
efficiency.
• Example: Research by Deloitte (2020) suggests that organizations
adopting digital tools like robotic process automation (RPA) can
reduce manual errors, accelerate productivity, and lower
operational costs by up to 30%.
• Cloud Computing and Infrastructure: Highlight the role of cloud
computing in enabling businesses to scale rapidly without
investing heavily in physical infrastructure. Cloud platforms offer
flexibility, improved data storage, and access to cutting-edge
computing resources.
• Example: According to a McKinsey study (2021), cloud adoption
reduces IT infrastructure costs by 25-30%, freeing resources for
innovation and enabling businesses to respond more flexibly to
market changes.

3. Enhancing Customer Engagement

• Personalization and Customer Experience: Digital transformation


enhances customer engagement through the use of data analytics,
AI, and machine learning to deliver personalized experiences. This
shift is reshaping industries, from retail to financial services.
• Example: Research by Forrester (2019) found that 77% of
companies that invested in advanced analytics reported better
customer retention and satisfaction. Tailoring experiences based
on customer behavior increases loyalty and lifetime value.
• Omnichannel Engagement: Discuss how digital transformation
enables businesses to engage with customers through multiple
channels, both online and offline, ensuring a seamless customer
experience. Technologies like CRM systems, social media, and
mobile apps allow companies to communicate with customers
more effectively.
• Example: A study by Salesforce (2020) shows that businesses that
adopt omnichannel strategies achieve 91% higher customer
retention rates than those that do not.
4. Impact on Business Models

• Emergence of New Business Models: Digital transformation has


led to the rise of new business models, such as platform-based
models (e.g., Uber, Airbnb), subscription services (e.g., Netflix,
Spotify), and the gig economy. These models leverage technology
to disrupt traditional industries and create new value
propositions.
• Example: The sharing economy, enabled by platforms like Airbnb
and Uber, has disrupted traditional industries by using technology
to match supply and demand more efficiently.
• Digital Products and Services: Traditional businesses are
increasingly shifting towards digital products and services.
Companies in sectors like publishing, music, and banking have had
to reimagine their product offerings in response to consumer
demand for digital access.
• Example: A Harvard Business Review article (2021) notes that
businesses in the publishing industry, such as The New York Times,
have transitioned from print to digital-first strategies, growing
their digital subscriptions by over 50% in the last five years.

5. Challenges in Implementing Digital Transformation

• Cultural Resistance and Change Management: Digital


transformation requires a shift in mindset, which can be
challenging for companies with entrenched processes and legacy
systems. Employees may resist new technologies, and businesses
may struggle with fostering a culture of innovation.
• Example: A study by PwC (2020) found that 67% of business
leaders cite cultural and organizational challenges as the top
barriers to successful digital transformation.
• Cybersecurity and Data Privacy: As businesses move towards
digital platforms, they face heightened risks of cyberattacks and
data breaches. Ensuring the security of digital infrastructure and
maintaining compliance with data privacy regulations like GDPR is
critical.
• Example: A report by IBM (2021) highlights that the average cost
of a data breach for digitally transformed companies is $4.24
million, underscoring the importance of robust cybersecurity
measures in the digital era.

6. Future Trends in Digital Transformation

• Artificial Intelligence and Machine Learning: The future of digital


transformation will be driven by advancements in AI and machine
learning. Businesses are expected to leverage these technologies
for predictive analytics, autonomous decision-making, and
enhanced customer interactions.
• Example: According to Gartner (2023), by 2025, over 75% of
enterprise applications will use AI for real-time decision-making,
transforming industries such as healthcare, finance, and retail.
• 5G and Internet of Things (IoT): The widespread adoption of 5G
networks and IoT devices is set to revolutionize how businesses
collect data and interact with their environments. This will create
new opportunities for automation, smart cities, and connected
devices.
• Example: A McKinsey report (2022) predicts that the global
economic impact of 5G and IoT technologies could reach $11
trillion annually by 2030, with industries such as manufacturing
and logistics benefiting the most.

7. Conclusion

Summary of Key Findings: Reiterate the key findings from the literature
review, emphasizing how digital transformation is reshaping operational
efficiency, customer engagement, and business models.
Significance of Digital Transformation: Highlight the importance of
embracing digital transformation as a strategic priority for businesses to
remain competitive and innovative in an increasingly digital world.
Future Research and Gaps: Suggest areas for future research, such as the
long-term impact of AI on workforce dynamics and the role of
government regulation in guiding digital transformation.

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