Digital transformation affects organizational structures by necessitating a shift toward more agile and flexible frameworks. As companies adopt new technologies, traditional hierarchies dissolve, paving the way for collaborative team structures that enhance communication and innovation. This transformation often leads to the integration of cross-functional teams, where diverse skill sets contribute to projects more fluidly. Consequently, organizations become better equipped to respond to market changes and consumer demands, fostering a culture of continuous improvement and adaptability critical for long-term success.