The development of technology, digitalization and the growth of data is a driving force for businesses to transform. Businesses are facing multiple challenges in adapting their capabilities to better serve the markets. By overcoming these major challenges related to digital transformation and developing a more digitally mature business there is an opportunity to achieve significant competitive advantage.

This thesis approaches challenges that businesses need to overcome from a technological and an organizational point of view. The objective was to highlight key components which influence the success of a holistic digital transformation. For practical conclusions this thesis observes the components through use cases from digital marketing. Digital transformation should flow through the organization and affects all aspects of the business.

The research in this thesis is based on relevant literature, studies from independent and private stakeholders, journalistic publications, industry articles and blogs, empirical observations from a digital industry and Directives from the European Union Commission.

Data has become increasingly accessible, complicated to manage holistically and has changed the way different stakeholders react to propositions in the markets. Technology that enables commercialization of data has developed faster than regulation. The digital ecosystem is not fully aligned with the regulation due to the velocity of emerging technology and complicates strategic decision making for businesses.

The research found that there are tangible actions that businesses can take in order to digitally transform and to improve competitive advantage. Data as the fuel for technology is a significant factor in the transformation and the way businesses approach it defines largely their success in a global competitive market. Businesses should act through leadership in order to adapt to the needs and requirements of modern digital markets.