Journal of Applied Business, Economics and Strategic Management ISSN: 3139-1664 (Online)

Authors: Dr. Kavita Menon, Mr. Arjun Sinha

ABSTRACT: Digital transformation has emerged as a defining factor in shaping the economic and strategic directions of businesses worldwide. By integrating digital technologies into operations, marketing, finance, and customer relations, organizations have been able to realign their economic models and strategic priorities. This paper explores how digital transformation influences business economics by reducing costs, improving scalability, and enabling innovation. Furthermore, the study examines its impact on strategic management, highlighting decision-making agility, competitive advantage, and long-term sustainability. Challenges such as cybersecurity threats, cultural resistance, and economic volatility are also discussed. Finally, the paper provides insights into best practices for integrating digital strategies into management frameworks while balancing technological investments with economic viability.

KEYWORDS: Digital Transformation, Business Economics, Strategic Management, Technology Adoption, Competitive Advantage, Innovation