Prepared by: Asst. Lecturer Najlaa Abduljalil Al-Maamouri Over the past two decades, the world has witnessed a massive boom in information and communication technologies, leading to the emergence of what is known as digital transformation, which has fundamentally changed the nature of organizations and their modes of operation. Digital transformation is more than merely adopting modern technologies; it represents an organizational shock that requires a reassessment of structures, processes, and organizational culture. While some organizations succeed in adapting and innovating, others face the risk of collapse due to their inability to respond to the demands of the digital era. This article examines digital transformation as an organizational shock, focusing on the factors that determine whether organizations adapt or collapse. The Nature of Digital Transformation as an Organizational Shock Digital transformation does not only involve adopting new tools; it includes reengineering processes, modifying power structures, and transforming organizational culture. This organizational shock may lead to tensions between employees and management, resistance to change, and an urgent need to develop digital skills. Understanding digital transformation as a shock explains why some organizations fail to cope with it despite having technological resources. Factors of Adaptation to Digital Transformation Studies indicate that organizations’ ability to adapt to digital transformation depends on several key factors: • Strategic Leadership: Leaders who embrace a clear digital vision and motivate their teams significantly increase the chances of successful transformation. • Organizational Flexibility: Flexible work structures and the ability to rapidly adjust processes help organizations absorb digital changes. • Organizational Culture: A culture that encourages continuous learning and innovation is a decisive factor in reducing resistance to change. • Investment in Digital Capabilities: Developing employees’ skills and providing continuous training enhances an organization’s capacity to adapt. Indicators of Organizational Collapse in the Face of Digital Transformation Conversely, organizations that suffer from structural rigidity, weak leadership, resistance to change, or a lack of digital skills often fail to respond effectively to digital shocks. Such organizations may experience performance decline, customer loss, and reduced competitiveness, which can ultimately lead to partial or complete collapse. Digital transformation can be viewed as a test of organizations’ ability to adapt to profound changes in the business environment. Organizations that are flexible and capable of learning and innovation will find in digital transformation an opportunity for growth and distinction, while those lacking vision and an appropriate organizational culture may face the risk of collapse. Therefore, the fundamental question facing contemporary management is not whether digital transformation is possible, but whether the organization is truly prepared to adapt to it effectively.