DT enables firms to reshape customer value propositions and create new forms of value creation and capture . The incumbent firms are able to digitalize products , and alter products architecture to introduce new, smart, connected products. Others argue that disruptive technologies (e.g., Internet of things) open the opportunities of generation new connected products and services; and offer new possibilities for everything from predictive maintenance to new services and business models.

Using analytical tools to engage with customers across all digital touchpoints allows a company to focus on end-to-end commerce and mass customisation, increasing customer centricity. It contributes to increased client pleasure and experience, as well as improved service quality. Firms use the analytical results of acquired data and information from digital touchpoints to produce new products and services that best meet the expectations of their customers. Furthermore, incumbents can use social effects to affect client purchasing behavior and experience. Finally, it helps organizations improve their financial performance and reputation by improving the consumer experience. Previous research confirms that DT enables enterprises to increase revenue through improved customer experience and by increasing attention on digital customer experience, dynamic digital ecosystem, and value co-creation.

Incumbents continuously use digital technologies and software for performing tasks to improve process efficiencies. It enables firms to adapt to a higher degree of automation in processes, which results in the reduction of errors, and cost reduction. Others report that firms are able to improve operational efficiencies by using new digital technologies. Additionally, DT also results in financial performance.  Other scholars argue that digital transformation is associated with the financial aspects of firms.

Firms are using digital technologies to closely engage with customers throughout touchpoints, which helps firms collect data and information (e.g., comments, feedback, product evaluations). The results of this data analytics by leveraging digital technologies help firms improve processes, and process visualization. It is beneficial to speed up the process of decision-making internally and externally.

DT can bring about changes to a company’s business model that result in changes in products, organizational structure, or automation process. Other studies affirm that DT enable firms to renovate, modify business model or create of new business model for value creation and capture.  Additionally, incumbents need to redesign organizational structure to adapt with rapid changes of digitalization. The existing high hierarchical organization schemes with multiple layers of management, strong top-down approach may not be effective in digital environment. Rather, the agility is required to make the organization more flexibility to quickly respond to digital customer behavior and to enable effective organization communication.

Organizational culture is also effective by DT to reflect the way people’s thinking about and react to the transformation initiatives. To be a successful DT, firms need to have the visible digital metrics and goals to communicate to employees so that they can perceive the same shared values and beliefs to understanding what organization wants to be to reach the digital goal. Others affirm that DT and organizational culture are interdepended. Therefore, culture is most effective when incumbents adopt new digital technologies and transform the organization in digital era.

DT also impacts higher levels, including industry, and society. Previous studies argue that digital technologies are able to make a change and improve the quality of life in healthcare. Others affirm that DT allows patients operating within a thorough multi-channel environment that gives access to medical information, education and control of the health status with the aid of artificial intelligence. Patients will be able to choose their specialists according to own preferences and communicate through mobile platforms that will constitute the core interfaces. 

Sharing economics is a result of impact of DT in which firms create new business model for value creation and capture. It is a rising pattern in consumption behavior that is based on accessing and reusing products to utilize idle capacity, presents both tremendous possibilities and significant threats for emerging as well as incumbent businesses. Others examinate why the sharing economy has the potential to produce a long-term transformation in consumption behavior which followed by a consideration of how this change might affect companies’ business models.

DT also produces some potential issues regarding privacy and security. Firms use digital technologies to improve engagement with customers at all digital touchpoints to gather customer’s comments, feedback, information for business purposes. Applying digital analytical tools to analyze collected data for algorithmic decision-making arises the potential issues associated with security, privacy, control and dependence, suggesting that social and ethical concerns.