Raya Karlibaeva E-mail: r.karlibaeva@tsue.uz Associate Professor,Tashkent State University of Economics Tashkent, Uzbekistan https://orcid.org/0000-0002-8492-9807 Rustam Yakhshiboyev E-mail: r.yaxshiboyev@tsue.uz Senior lecturer, Tashkent State University of Economics Tashkent, Uzbekistan https://orcid.org/0000-0002-2733-9085 Abstract: This article examines the process of digital transformation in business, highlighting key aspects such as strategy development, adoption of innovative solutions, and sustainable development. Success factors include adapting to rapid technological changes, investing in IT infrastructure, and developing employees' digital skills. Innovation is crucial for competitive advantage, enabling the creation of new products, improved processes, and enhanced efficiency through technologies like AI, big data, and IoT. Sustainable development, an integral part of digital transformation, involves economic efficiency, social responsibility, and environmental sustainability. This includes using eco-friendly technologies, reducing carbon footprints, and managing resources responsibly. The analysis emphasizes that successful digital transformation requires a comprehensive approach, including technological adaptation, robust IT infrastructure, employee skill development, and a culture of innovation. Sustainable practices also play a pivotal role, ensuring long-term success and contributing to a more sustainable and inclusive digital economy. Keywords: digital transformation, business strategies, innovation, sustainable development, technological changes, IT infrastructure, competitive advantages, digital skills. JEL classification: O3
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