DIGITAL TRANSFORMATION: IMPACTS, CHALLENGES, AND ORGANIZATIONAL ADAPTATION STRATEGIES IN THE DIGITAL ECONOMY ERA

Abstract

Digital transformation has become a key catalyst for organizational change in the era of the digital economy. This study aims to systematically examine the impacts, challenges, adaptation strategies, and implementation of digital transformation across several strategic sectors. The research employs a Systematic Literature Review (SLR) approach, guided by the PRISMA 2020 framework. Relevant literature was collected from Scopus, Web of Science, and Google Scholar databases, covering the publication period 2014–2024. From an initial pool of 1,245 documents, after deduplication, screening, and full-text assessment, 34 core studies were identified and analyzed using thematic coding and narrative-descriptive synthesis. The findings reveal that digital transformation delivers positive outcomes in the form of enhanced operational efficiency, accelerated innovation, and cultural shifts toward more adaptive organizational models. However, digitalization also presents significant challenges, including data security and privacy risks, digital divides, and workforce disruption due to automation. Relevant adaptation strategies include strengthening digital literacy, adopting data-driven business models, developing digital leadership, and fostering multi-sector collaboration. Case studies in the banking, e-commerce, education, and healthcare sectors highlight distinct patterns and challenges of implementation, yet collectively indicate that digitalization supports the creation of more inclusive, efficient, and high-quality services. In conclusion, digital transformation is not merely a temporary trend but a strategic agenda that shapes organizational competitiveness and sustainability, while offering Indonesia the opportunity to strengthen its position in the global digital economy.