Understanding Digital Transformation in Creative and Cultural Industries: A Review

This chapter offers an in-depth literature review on the definition, evolution, and key attributes of digital transformation within the creative and cultural industries. The author outlines digital transformation as the integration of digital technology into all business areas, which fundamentally changes operations and value delivery. The historical evolution is traced from the early internet era and e-commerce to current advanced technologies like Artificial Intelligence (AI), cloud computing, big data, and Internet of Things (IoT). Key attributes of digital transformation include agility, customer-centricity, data-driven decision-making, and cultivating a digital culture. The chapter also examines the significant impact of digital technologies on business models and value chains in creative industries such as advertising, music, fashion, architecture, and performing arts. Digital transformation has revolutionized customer segmentation, value propositions, distribution channels, customer relationships, revenue streams, key resources, activities, partnerships, and cost structures. The author highlights how digital platforms, data analytics, and personalized experiences enhance customer engagement and market reach while optimizing operations. The chapter addresses challenges including bridging the digital divide, ensuring cybersecurity, integrating legacy systems, managing cultural shifts, and demonstrating acceptable return on investment (ROI). Future trends like AI, edge computing, IoT, blockchain, and sustainability are discussed as drivers of the next phase of digital transformation. The chapter emphasizes the transformative potential and complexities of digital technologies in reshaping the creative and cultural industries.