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The Role of Digital Transformation in Enhancing Organizational Agility and Competitive Advantages: A Strategic Perspective
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Abstract
In recent years, the rapid advancement of digital technologies has reshaped how organizations operate, compete, and deliver value. As industries embrace digital tools, companies must adopt strategic approaches to remain agile and competitive in increasingly dynamic markets. This paper explores the strategic role of digital transformation in fostering organizational agility and achieving competitive advantage in the digital age. Drawing from case studies in critical sectors such as retail, financial services, and healthcare, the study examines how integrating digital technologies—including artificial intelligence (AI), data analytics, and the Internet of Things (IoT)—enhances operational efficiency, decision-making, and responsiveness to market changes. Notable examples include Amazon, Ping An Insurance, and Philips, which have leveraged digital tools to streamline operations and improve customer service. This paper also emphasizes the critical importance of aligning digital transformation initiatives with broader corporate strategies, as demonstrated by Tesla’s success in improving production output and supply chain flexibility through AI integration. Furthermore, the research highlights critical challenges to digital transformation, such as organizational resistance, legacy system integration, and the digital skills gap. Ultimately, the study underscores that strategic alignment, cultural adaptability, and investment in digital skills are essential for realizing the full benefits of digital transformation.
Keywords
Digital transformation, Organizational agility, Competitive advantage, Strategic alignment, Digital skills gap
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Cite this article
Shao,W. (2025). The Role of Digital Transformation in Enhancing Organizational Agility and Competitive Advantages: A Strategic Perspective. Advances in Economics, Management and Political Sciences,154,115-120.
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Volume title: Proceedings of the 3rd International Conference on Financial Technology and Business Analysis
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