Running Title:
Digital Transformation and Business Model Innovation
Abstract
The rapid advancement of digital technologies, artificial intelligence (AI), and automation is transforming the way organizations design their structures, execute processes, and deliver value to customers. This study investigates the relationship between digital transformation and business model innovation, with a focus on how emerging technologies reshape organizational performance, agility, and competitiveness. Using a conceptual research design and secondary data analysis, the study examines cases across multiple industries to assess the impact of AI-driven decision-making, robotic process automation, and digital platforms on traditional organizational structures and processes. Findings suggest that digital transformation facilitates business model innovation by enabling process efficiency, data-driven strategies, enhanced customer engagement, and agile organizational design. However, challenges such as cultural resistance, high investment costs, cybersecurity concerns, and workforce displacement complicate implementation. The study concludes that organizations must balance technological adoption with change management strategies and employee capacity building to realize long-term benefits. The implications highlight the importance of aligning digital strategies with organizational goals, fostering digital skills among employees, and adopting flexible business models to remain competitive in dynamic environments.
Keywords: Digital Transformation, Business Model Innovation, Artificial Intelligence, Automation, Organizational Change, Competitiveness
