Abstract: Digital technology has become a key factor in enhancing efficiency and productivity across various industrial sectors. The implementation of technologies such as automation, artificial intelligence, and the Internet of Things (IoT) has enabled companies to optimize operational processes, reduce production costs, and improve product quality. This study aims to analyze the positive impacts and challenges of digital technology implementation in the manufacturing and service industries. Using a qualitative approach through literature studies and secondary data analysis, the findings indicate that digitalization can increase efficiency by up to 30% and accelerate production time by up to 40%. However, challenges such as high initial investment costs, the need for workforce training, and data security risks remain significant barriers to digital technology adoption. Therefore, companies must develop appropriate strategies for technology implementation to ensure sustainability and business competitiveness in the digital era. The results of this study are expected to serve as a reference for stakeholders in designing policies that support digital transformation in the industrial sector.

Keywords: Digital technology, efficiency, productivity, industry, digital transformation.