Influence of Digital Transformation on Strategic Management and Financial Decision-Making

Abstract

In recent years, digital transformation has become a significant factor for business development. It changes how the company makes financial and strategic decisions. This study discovers how digitalization influences financial decision-making and strategic management by reviewing recent academic research and real-world examples. The results show that digital transformation improves financial decision-making by enhancing data quality, analysis speed, and risk control. It allows managers to move from intuition-based choices to data-driven strategies, which boost investment efficiency and financial accuracy. In strategic management, digitalization encourages organizational flexibility, increases collaboration, and fosters innovation by reworking operations and human resource systems. However, research has also pointed out challenges like high implementation costs, employee resistance, and regulatory pressures. Overall, the findings indicate that while digital transformation greatly enhances efficiency, innovation, and competitiveness, companies need to create effective strategies and strong governance systems to manage its risks. This study helps clarify how digital technologies are changing corporate finance and management practices in the modern economy.