Digital transformation is progressing unevenly across industries, with varying levels of success influenced by organizational and sector-specific factors. Understanding where to focus investments and what type of transformation to adopt has become a crucial challenge for companies seeking competitiveness and market relevance in the digital era. This paper aims to analyze companies’ strategic decision making to foster digital transformation, conducting a literature review, and proposing a conceptual framework for digital transformation of business models. The study identifies key drivers of successful digital transformation, including digital strategy, human capital, scalability, customer focus, security and risk management. Integrating these factors, the proposed model emphasizes the strategic alignment of digital initiatives with organizational goals, fostering a culture of continuous innovation and adaptability. The findings contribute to a deeper understanding of the mechanisms and prerequisites for effective digital transformation, offering insights for organizations navigating the shift toward Industry 5.0. ©The authors ©Springer.