Business organizations can be observed, among other things, by the time in which they are located, so they can be divided into traditional and modern. Each of these species has different characteristics that make it special. They differ in aspects of relations with employees and customers, management style, business principles, organizational structure et cetera. One of the big differences between them is the application of digital technology. The increasing development of technology has forced business organizations to use it in business to improve business processes, follow trends or achieve a better competitive position. In addition to the fact that the use of technology achieves numerous benefits according to the searched literature and numerous examples, it was found that there are certain shortcomings or challenges during and after the process of digital transformation. Furthermore, there is a difference in the application of digitalization in different parts of the world (EU, USA) and different pace of adjustment of sectors within the economy. Therefore, there are challenges in the slow adaptation of the education system to the needs of the digitalized labor market, the status of women in "new" organizations, insufficient investment of certain sectors in advanced technology et cetera. Also, the position of Croatia in relation to other EU members was determined, and it was determined that according to some criteria it is in the middle, while according to others it is at the very back. In the long run, it has the potential to improve its position and position in relation to other members, and there is a possibility of overcoming the challenges that the economy and companies face in a digital environment.