The danger of the digital vortex lurking in the shadows for traditional businesses

According to Khatam University’s public relations and website department, the second day of the Fourth National Digital Transformation Conference continued on Tuesday, August 12, featuring experts and researchers in the field, alongside senior officials, organizational leaders, and passionate attendees. The day included several keynote speeches and two specialized panel sessions.

On the second day of the event—held at the university’s amphitheater with support from the Iran Management Association and in collaboration with Khatam University—a specialized session titled “Designing a Resilient Digital Architecture on the Path to Sustainable Development” took place. The panel featured Dr. Ali Abdollahi, faculty member at Shahid Beheshti University; Dr. Mehdi Mohammadi, professor at the University of Tehran and president of the Iran Management, Technology and Innovation Association; and Engineer Mehrdad Haddad, director of new technologies and head of the digital banking division at Bank Pasargad.

Dr. Azar Saemian, the scientific secretary of the conference and chair of the panel, opened with a clarification of the conceptual and functional distinctions between digitization, digitalization, and digital transformation. She explained: “Digitization refers to converting documents into digital formats. Digitalization involves restructuring processes, methods, and systems using digital technologies. Digital transformation, however, goes a step further—it creates new value through emerging technologies, guided by principles of sustainability and foresight.”

Continuing the discussion, Dr. Abdollahi reflected on the aftermath of the Industrial Revolution and the solutions proposed by Baldwin in his influential 1966 article. He remarked, “Humanity gradually came to recognize the environmental, social, and cultural damage caused by the revolution, prompting widespread global dialogue aimed at overcoming its consequences.”

In response to a question about the concept of resilient digital architecture and its role in sustainability, he outlined its key characteristics: “A resilient digital architecture should be modular, supported by rapid response teams, economically robust, resistant to financial shocks, adaptable to emerging ecosystems, and powered by renewable energy.”

In his speech on digital transformation, Dr. Mohammadi emphasized that societal trends should reflect how we respond to challenges that impact our survival. He noted, “In this context, sustainability represents a powerful trend across all sectors—from the steel industry to banking.”

He also highlighted the importance of inclusiveness in digital architecture, stressing that services must be designed to accommodate diverse user groups. “In banking, for instance, just as we must provide suitable services for an 80-year-old customer, we must also meet the expectations of the Alpha generation. They are customers and stakeholders too—and if their needs aren’t met, they’ll walk away. Neobanks emerged as a response to this demand.”

Engineer Mehrdad Haddad, in his remarks on sustainability, emphasized that an organization should not be evaluated solely based on short-term economic gains, but rather on its approach to environmental responsibility, social impact, and cultural alignment. He stated, “If we fail to recognize this connection, we cannot realistically envision the long-term survival of our organization. Cultural considerations must also be prioritized. In my view, digital architecture within an organization consists of four key layers.”

Explaining the function of each layer, he stated: “Mindset, meaning, decision-making, and the ecosystem link between the organization and its environment will form the foundation of digital architecture. The closer these layers are aligned, the more participatory the decision-making becomes—and the more sustainable the changes we’ll see as we move toward a resilient digital economy.”

Continuing the second day of the Digital Transformation Conference, Dr. Seyed Mehdi Hosseini, Senior Director of Smart Industry at FANAP Infrastructure, delivered a keynote titled “Dimensions and Components of Designing a Digital Transformation Roadmap with an Ecosystem-Wide Stakeholder Participation Approach.” He emphasized that embarking on digital transformation without a clear roadmap is like setting out on a costly, risky, and ultimately fruitless journey. According to Dr. Hosseini, digital transformation represents a fundamental shift in business models, operational processes, stakeholder engagement, and the adoption of emerging technologies.

Citing statistics that show nearly 70% of digital transformation initiatives end in failure, he stressed: “This highlights that merely adopting a digital transformation mindset is not enough to ensure success. The reasons are many—from the absence of a coherent strategy and roadmap, to cultural resistance within organizations; from failing to identify key stakeholders, to poor communication; from a lack of digital competencies—both soft and technical—to insufficient engagement and commitment from senior leadership and staff; and finally, from budget constraints to misallocation of resources and infrastructure challenges.”

Also speaking at the conference, Dr. Amirhossein Roshan Zamir, visiting professor and digital transformation researcher at Amirkabir University of Technology, delivered a talk titled “Digital Transformation and Digital Disruption: Two Sides of the Same Coin in Launching Native Technology-Based Startups.” He introduced the concept of the “digital vortex,” first conceptualized in 2015 through joint research by IMD Business School and Cisco. According to Dr. Roshan Zamir, the digital vortex refers to the powerful force pulling all businesses toward digitalization, compelling them to rapidly redefine their products, services, and value creation strategies.

He explained: “Digital disruption is essentially the same vortex force—often driven by emerging startups—that penetrates traditional industries and, in many cases, pushes them to the brink of bankruptcy. If these legacy businesses fail to adapt, they risk being replaced and eliminated by more agile, tech-driven competitors. This is precisely where digital transformation becomes critical—it’s the tool that can help prevent collapse and ensure survival.”

In another presentation, Mahboobeh Kamali Dolatabadi, a PhD candidate in accounting at Islamic Azad University, South Tehran Branch, shared findings from her joint research with Dr. Ali Asghar Anvari Rostami. Their paper, titled “Feasibility of Producing a Convincing Research Paper in the Field of Accounting Using Artificial Intelligence,” explored the role of AI in academic research. According to their findings, AI usage is significantly higher in postgraduate education (master’s and doctoral levels), and its application is notably more prevalent in fields like management and the humanities compared to technical disciplines such as medicine and mathematics.

Following the reading of the conference’s final statement, delivered by Dr. Azar Saemian, the event’s scientific secretary, the authors of the top three papers presented at the Fourth National Digital Transformation Conference were formally recognized. The statement, structured in ten key paragraphs, summarized the conference’s major themes and outcomes.

The awards were presented as follows:

• First Place: Mahboobeh Kamali Dolatabadi and Dr. Ali Asghar Anvari Rostami
• Second Place: Hossein Enayati
• Third Place: Salar Keshavarz Hedayati and Shideh Sadat Hashemi