The Impact of Digital Technologies on Business Strategy and Innovation: A Review
Keywords:
Digital technologies, business strategy, innovation, digital transformation, organizational changeAbstract
Digital technologies have significantly transformed the landscape of modern business by influencing organizational strategies, operational processes, and innovation capabilities. The rapid advancement of technologies such as artificial intelligence, big data analytics, cloud computing, and the Internet of Things (IoT) has enabled organizations to redesign their business models and enhance their competitive positioning. This review article examines the impact of digital technologies on business strategy and innovation. It synthesizes existing literature to explore how digital tools facilitate strategic decision-making, organizational agility, and innovation development. The article also discusses key challenges associated with digital transformation, including technological complexity, skill gaps, and cybersecurity risks. The findings suggest that organizations that successfully integrate digital technologies into their strategic frameworks can enhance innovation capacity, improve operational efficiency, and achieve sustainable competitive advantage. The study highlights the importance of leadership commitment, digital capabilities, and supportive ecosystems in ensuring successful digital adoption.
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Rogers D. The Digital Transformation Playbook. Columbia University Press, 2016.
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