Digital Transformation and Organizational Governance: Opportunities, Challenges, and Strategic Implications

Abstract

Digital transformation has become a major driver of change in modern organizations, characterized by the increasing use of technologies such as big data analytics, artificial intelligence, and integrated digital systems. This research aims to comprehensively analyze the dynamics of digital transformation through a literature study approach to academic literature and international reports published in the last five years. The results of the study show that digital transformation has the potential to improve operational efficiency, service quality, and organizational ability to make data-based decisions. However, this process is also faced with various challenges, such as limited infrastructure, cybersecurity risks, digital literacy gaps, and algorithmic ethical issues. Research confirms that the success of digital transformation is highly dependent on alignment between technology investment, human resource capacity, adaptive regulation, and strong data governance. In addition to economic growth opportunities, digital transformation also opens up space for new business models, service innovation, and cross-sector collaboration. These findings emphasize the need for an integrative strategy so that the implementation of digitalization can be inclusive, sustainable, and provide added value for organizations and the wider community.