Digital transformation challenges traditional business models by introducing new technologies and consumer expectations that require adaptability and innovation. Companies must rethink their operational structures, often shifting towards agile methodologies to respond effectively to market changes. This transformation may involve adopting advanced technologies like AI, cloud computing, and IoT, fundamentally altering how products and services are delivered. Businesses that fail to embrace digital transformation risk obsolescence, while those that adapt can enhance efficiency, increase customer engagement, and gain a competitive edge in the evolving marketplace.