THE IMPACT OF DIGITAL TRANSFORMATION ON BUSINESS STRATEGY

Abstract

In the era of relentless digital transformation, this study delves into the profound impact of digitalization on business strategy within the Madurai district, Tamil Nadu, India. Employing a comprehensive theoretical framework rooted in the Technology-Organization-Environment (TOE) and Resource-Based View (RBV), the research explores how digital transformation influences strategic planning, the role of data-driven decision-making, challenges faced, and opportunities arising. A mix of quantitative and qualitative methods, including regression analysis, chi-square tests, and content analysis, provides a nuanced understanding. Findings indicate a significant positive impact of digital transformation on strategic plans, emphasizing the pivotal role of data-driven decision-makers. Challenges during transformation influence strategic initiatives, while identified opportunities highlight the need for tailored strategies. The study contributes practical insights for organizations navigating the evolving digital landscape. Recommendations include prioritizing data-driven capabilities, proactive challenge management, capitalizing on opportunities, and integrating practical insights into decision-making.