The speed of digital transformation and disruptive technologies influence a company's competitive edge. The fourth industrial revolution and digitalization have the potential to touch all areas of an organisation at the same time. This creates a conflict between digitalizing an existing, successful business and creating new, fully digitalized enterprises. The aim of the study is to determine the risks and uncertainties of digital transformation in the European Union and the Indian industry. The literature review provides insight into the concept of digital transformation in businesses. This study developed a digital strategy model and a digital transformation risks and uncertainties framework. Secondary data and statistics on business digitization in the European Union and Indian industries are presented. This chapter focuses on mitigating risks and uncertainties associated with the digital transformation of the European Union and Indian industry as a whole, including research that provides the direction for digitalization in all businesses.
Top1. Introduction
Technological innovation is rapidly changing the world. The industrial revolution paved the way for globalisation, connection, and the foundations of modern society and wealth. Digital transformation is the process of integrating new digital technologies into all business sectors, resulting in a dramatic shift in how the firm functions. Digital disruption raises the emergence of new competitors or new entrants who have mastered digital business skillsets and have developed solutions, business models, and approaches that have a significant impact on customer behaviour and market context, forcing existing players to change their strategies as a result. The solution had the biggest market share based on a component, while the services had the fastest growth rate. Digital technologies and approaches are penetrating every aspect of business. The internet of things, ubiquitous connectivity, big data and analytic capabilities, cloud computing, blockchain, artificial intelligence, and robotics are significantly changing nearly all industries. Corporate governance and business models have all been affected as a result of digitization. Improvements in infrastructure and analytical skills in information technologies (IT) during the last decade have spurred new business model innovations at all levels. This has given corporations an advantage in nearly every economic sector (Grover and Kohli, 2013; Bleicher and Stanley, 2016).
Digital transformation is accelerating on a large scale that has never been seen before, introducing new risks and uncertainties. People, businesses, and governments planning for the future can no longer rely on the idea that the future will be much like the present. Instead, they must plan for a wide range of possible futures as well as the new possibilities and challenges that may arise. A strategy and policy framework formed today can withstand and adapt to the changes brought about by digital transformation and the direction, pace, and extent of those changes if they are developed using this approach. This way, they can be resilient and adaptable (OECD, 2020). Transformational changes within a company are in high demand in order to expand the business and compete in today's changing business environment. Enhancing the customer experience, operational agility, and the integration of digital technologies are all part of the transformative process as a whole. In countries like Europe and India, cloud computing and big data analytics are two digital transformation solutions that have contributed significantly to the rapid growth of the digital transformation market.
The European Union's institutions, as well as its capacity for cross-border collaboration, are crucial for both supporting and implementing the digital economy. To ensure that this collaboration is operative and produces the desired outcomes, it must be customised to the characteristics and diversity of particular European Union member states. Indian institutions have made real progress in integrating new technology into numerous sectors, and a number of industries are undergoing digital transformation. Alternatively, the level of penetration varies according to the requirements of different industries. The Indian business environment is being reshaped by megatrends such as technology, globalisation, exponential technology usage, and demographic changes, among other things. The concept of Industry 4.0 and digitalization processes are receiving more attention in academic research (Osterrieder, 2020; Nick G, 2020; Castro HF, 2020; Basl, 2017; Castelo-Branco, 2019; Moeuf et al., 2017; Hofmann, 2017; Santos et al., 2017; Smit, 2016). Only the most relevant articles on the subject were included in this study. The purpose of this review was to familiarise authors with studies that examined the digitalization, robotics, and automation processes of businesses, sectors, and countries, as well as the evaluation methods applied so far to assess these developments.