DIGITALIZATION AND DIGITAL TRANSFORMATION AS DISTINCT LEVELS OF MANAGERIAL CHANGE

Abstract

This study is devoted to a comprehensive and systematic analysis of three fundamental concepts of modern management science, which are often confused: digitization, digitalization and digital transformation. In the conditions of the global digital economy, terminological uncertainty is not just a semantic problem, but a strategic risk, leading to ineffective management decisions, misallocation of investment resources and loss of sustainable competitive advantages. Based on a rigorous analysis of recent academic literature and empirical business data, this study differentiates these concepts: «digitization» as the technical conversion of data; «digitalization» as the optimization of processes through digital tools; and «digital transformation» as a strategic paradigm shift in business models and organizational culture. The research explores the evolution of digital strategies, emphasizing that technology should be viewed as a driver of new business value rather than just a support function. Special attention is focused on the critical role of organizational culture, proactive change management (using Kotter’s 8-step model to build a coalition of change agents), and leadership in overcoming internal resistance to change. The empirical part of the study includes a detailed comparative analysis of global and local case studies. In the retail sector, the divergence between Walmart’s successful supply chain innovation and Sears’ failure to adapt illustrates the consequences of strategic inertia. In the financial sector, the agility of the «born-digital» neo-bank Monobank is contrasted with the digital adaptation strategies of traditional institutions like JPMorgan. Additionally, the report analyzes the «Diia» ecosystem in Ukraine as a leading example of GovTech transformation, demonstrating how the «State as a Service» concept is implemented in practice to ensure institutional resilience during martial law. The conclusions offer a set of strategic imperatives for modern managers to navigate the complexities of the digital age, highlighting the need for a holistic approach that integrates technology, people, and strategy.