The impact of digital transformation on the competitiveness of enterprises: the analysis of differences in business strategies

Abstract

The paper explored the theoretical aspects of digital transformation, in particular, explored and compared the definitions of "digitalization", "digital transformation" and digital strategy. It was found that digital transformation, in contrast to digitization, is a broader concept, because it involves not only a technological shift, but also the transformation of the operational process, business models, and the experience of end users. The advantages and disadvantages of digital transformation for enterprises are determined. The main advantages are speeding up processes and reducing the human factor, increasing productivity in quantitative and qualitative terms, reducing current costs. Disadvantages are high risks during implementation and additional costs. The main reasons why businesses seek to invest in new technologies have been explored. It has been proven that such a desire can depend not only on the desire of the company's management to carry out digital transformations, but also on forced reasons. The global rating of digital transformation technologies is characterized and the purpose of the most popular technologies is revealed. It is noted that in addition to the popularity of the technology itself, it is worth considering the feasibility of its implementation in the activities of a specific company. Based on the analysis and combination of information in literary sources with own works, an approach to the step-by-step implementation of a digital strategy was formed. This approach is universal, because it can be adapted for individual companies. Successful and unsuccessful examples of digital strategies implemented by well-known companies are studied. It was found that digital solutions can bring both significant advantages and cause the company to fail at a certain stage or in a certain area.