Digital Leadership: Analysis of Environment and Strategic Impact

This report provides a comprehensive analysis of digital leadership, examining the external environment through a PESTLE analysis and identifying challenges and opportunities for leaders and managers in the face of rapid technological changes. It evaluates the impact of various strategic leadership styles, including autocratic, participative, delegative, and transformational approaches, on enterprise values and goals. The report critically analyzes digital leadership as a modern approach compared to traditional models, highlighting its potential to enhance organizational success. It also offers recommendations on how strategic leadership styles can be effectively implemented to achieve desired business outcomes. The analysis covers challenges due to technological advancements and provides insights into how digital leadership can drive positive change and support organizational objectives. The report emphasizes the importance of adaptability, effective communication, and employee training to navigate the complexities of digital transformation.

DIGITAL LEADERSHIP

INTRODUCTION...........................................................................................................................3
Description on the analysis of environment and identify the challenges and opportunities for
leader and managers....................................................................................................................3
Challenges to leader and manager due to technological changes-...............................................5
Critically evaluation and recommend how strategic leadership styles and approach impact
enterprise values and goals..........................................................................................................6
Critically analysis on digital leadership as newer approach to leadership compares to
traditional model..........................................................................................................................7
Description on how digital leadership can impact organisational success that support the
recommendation..........................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Digital leader requires new technologies to work more effectively, efficiently and optimize
on modern technical advances to create the largest impact on business productivity (Petry and
et.al., 2018). It provides highest quality service. It is defined as plan of action that aids to achieve
business goals. This can be addressed at both enterprise and individual needs. It is a modern
technical advancement and it creates huge affect on business functions.
The present report based on business activities on digital leaders is tech savvy, agile,
innovative that aids to achieve business outcomes. Therefore, analyse the environment,
identification of technological change, evaluation on how strategic leadership styles. Henceforth,
digital leadership can affect organisation success and provide examples support the
recommendation.
Description on the analysis of environment and identify the challenges and opportunities for
leader and managers.
PESTLE analysis can be defined as an extremely effectively tool in business. Therefore,
political, economic, technical, legal and environment analysis (Auvinen and Luoma-aho, 2019).
Thus, elements of macro environment of a business. Hence, it’s defined in following manners-
Political factors- It is actually the degree of legal involvement in the economy. If the legal
authorities interference with economy to degree then these factors become of importance.
Therefore, political components inclusive legal policies, laws, taxation, budgets, international
trade laws and trade restrictions etc. Therefore, leaders needs to deal with political changes so
that better action can be taken Henceforth, managers needs to comply with rules and regulation
set by the working enterprise.
Economic factors- The all changes in technical advancement aids to bring major advantage
to the enterprise. Therefore, prevailing economic conditions of the nation affects the spending
patterns of the citizen. Enhance in interest rates aids to have high level of employment will
depress consumption of non essential goods and services (Auvinen and et.al., 2019). Leaders
need to arrange economical process so that all things can be conducted effectively and efficiently
so that better things can be conducted.
Social factor- It aids to bring changes within the working of an enterprise. Therefore, changes
and preferences support to bring better advancement so that effective action can be taken. In
addition to it, leaders of the entities need to comply with rules and regulations and the choice and

preferences. Therefore, a manager needs to comply changes so that better action can be taken
and effective things can be done.
Technology- Great challenges for many enterprise comes due to impact on corporate
transformation. Thus, greater modification of technical advancement aids to bring smooth
functioning within the enterprise (Wagner, 2018). Higher changes with technological
advancement aids to create innovation in the working enterprise. This aids to bring better
advancement within enterprise so that better business functions can be conducted. Therefore,
higher advancement aids to bring better productivity and profitability. In addition to this, main
driver of this changes aids to rise of internet so that effective actions within the enterprise can be
taken.
Legal- Taxation is one of obvious change in law through legislation. Henceforth, legal action that
aids to build better advancement of technical advancement so that better action can be taken tp
bring out better course of action (Brett, 2019).
Environmental- It is factor that aids have technical advancement that conducts business activities
effectively and efficiently. Therefore, it aids have sustainable growth so that all functions can
conducted. With the use of better technological advancement, the pollution can controlled and
better functions can conducted. It helps to bring systematic functioning within the enterprise.
Challenges and opportunities within technological changes-
Rapid advances and the enhanced reliance on technical advancement aids to conduct the
business practices effectively and efficiently. With the adaption of technical advancement the
innovation in the working of the enterprise can be conducted effectively. Henceforth, the
adoption of technical advancement by the enterprise over the last few decades aids to bring
smooth functioning within the enterprise. In addition to this, technical change can aids to bring
enhanced efficiency, aids to improve quality, helps in to bringing products to market and expand
the skills of an individual.
Therefore, technical adaption aids to leader and manager to have benefits in manner of
improvement in communication, reduction in cost and also helps to have foster new innovations.
In addition to this, it can be stated that new technical innovation assists enterprise to stay more in
touch with customers. Furthermore, this can be stated that a rapid change in the economic
landscape within business environment needs more efforts to meet customer expectation.
Henceforth, better and advanced technical adaption aids to leader and manager to identify the

current trends, wants and need of customers. In addition to this, it can be stated that introducing
changes within the enterprise may cause disruptions in the patterns or behaviours that can arise
issues as loss of continuity, replace customary social structures and bring better familiar
relations. Thus, employees are being familiar with old method of working and this creates
resistance in change and environment of the entity gets majorly affected. In addition toit,
adoption of the new technical advancement may bring change to the job responsibilities, added
work load and additional training to employees.
Challenges to leader and manager due to technological changes-
Changes can be considered as unavoidable phenomenon within the business environment.
In order to remain competitive this is crucial to update their business tool and style of working so
that effective function can be carried out. To have it, leader and manager must make employees
understand that technical advancement will help them to bring systematic and smooth
functioning within the enterprise. Henceforth, innovation is the term that brings productive
function and also aids to conduct things with minimum cost. Therefore, unexpected to the
changes can also be the some common problem that can hamper the working of an enterprise.
In addition to this, managers are in the position and that is uniquely acquired and they must have
idea that changes can bring both positive impacts on the working of an enterprise. Furthermore,
technical changes are also impact the nature and culture of an enterprise. In addition this,
changes has the possibility that can bring unexpected performance in the enterprise. In order to
conduct the each things effectively, the leader and manager needs to provide effective training to
the employees so that better functions by employees can be conducted.
Furthermore, it can be stated that resistance to change is the part of human culture that can be
sometimes inflexible and this can also impact the working of the enterprise in negative manner.
Henceforth, this can be stated that challenge for leadership is to deploy new and innovative
technical advancement and this advancement greatly enhance ability to meet that challenge so
that better things can be conducted.

Critically evaluation and recommend how strategic leadership styles and approach impact
enterprise values and goals.
As per the view of Petry, (2016) stated that Leadership is a process that defined as
influencing and directing the activities of an organised group to accomplish desired goals.
Henceforth, this can be stated that strategic leadership is to develop an environment in which the
employees can forecast the needs of an enterprise in context of strategic leaders. Additionally,
Kreutzer, Neugebauer and Pattloch, (2017) stated that this can be stated that strategic leadership
defined as to show potential to express strategic for the enterprise. Henceforth, strategic leader
can perform their work as to forecast the organisation needs that planning to assist individuals in
realizing the business and goals. Therefore, this can be stated that strategic leaders aid to derive
plan of action so that things can be done effectively. Thus, strategic leadership and its
approaches impacts the workings of the enterprise in following manner are as-
Leadership behaviour and style is the function of leadership that needs to carried out within
better and effective manner and these are as-
Autocratic leadership- As per the view of Zeike, Bradbury and Pfaff, (2019) it can be
stated that authoritarian leaders also defined as to provide clear expectation that how it is needs
to be done and when it should be done. Henceforth, Bolte, Dehmer and NIEMANN, (2018)
stated out that leadership styles must be focused on both term that command by the leader and
control of the followers. It is that term that applied to the situation in which there is short time
for taking for group decision. Thus, it tends to create dysfunctional and even hostile environment
and these often pitting followers the domineering leaders.
Participative leadership- This is also defined as democratic leadership and this is one of the most
effective terms that offer guidance to group members. As per the view of Bolte, Dehmer and
NIEMANN, (2018) stated out that participative leadership is a management style that aids to
invites input from employees on all or most firm decision. In contrary to Dery, Sebastian and
van der Meulen (2017) stated out that staff morale remains at high level due to an appreciation
for the chance to get involve in decision making process. This aid to employee to take good and
effective decision that can aid to bring systematic working within the enterprise. Therefore,
better decision brings more opportunities to enterprise and this also helps to perform functions in
more effective manner.

Delegative leadership- As pr the view of Kane, Palmer and Buckley, (2017) stated that laissez
faire leadership defined as to involves letting subordinates to make their own decision. This is
defined as a leadership style in which leaders make their employees free and also allows group
members to make the better decision. Therefore, Kane, Palmer and Buckley, (2017) it can be
stated that leadership a style helps to lowest the productivity among the group members. One of
the major disadvantages of laissez faire leadership styles is that this involves the group members
are not able to take the knowledgeable and lack experience in making the effective decision. As
per the view of Dery, Sebastian and van der Meulen (2017) it can be stated that lack of guidance
and feedback from the leader affects the Woking of an enterprise. It can lead to inadequate
integration among the teammates.
Transformation leadership- As per the view of Kane, Palmer and Buckley, (2017) it can be stated
that one of the effective leadership is defined as that leaders work with the aim of transforming
the team and organisation. In contrary to Kane, Palmer and Buckley, (2017) state that this
supports to creates the vision for the future so that each individual can work towards to shared
goal and vision. They are the leaders who perform their work as to see authentic, self aware and
empathetic. Additionally, stated out that they are the leaders who have ability to handle the
conflicts among the team members.
Recommendation-
The leadership style aids to have positive impact on the working of the enterprise. Thus, its
defined in following manner are as-
 The entity must have the use participative leadership so that all workers can perform their
activities together and this aids to accomplish the desired objectives within the enterprise.
 Democratic leadership is also an effective term that can be used by an enterprise as it
supports to group member in their decision making. It is very helpful process as these
enhance engagement among the team members and this approach also aids to take best
decision.
Critically analysis on digital leadership as newer approach to leadership compares to traditional
model.
As per the view of Kane, Palmer and Buckley, (2017) it can be stated that effective
leadership is also an extremely crucial in business venture. Henceforth, digital approach aids to
bring more technical advancement. Therefore, a digital leader aids to recognize firm that requires

new technical advancement in work more efficiently. As per the view of Kane, Palmer and
Buckley, (2017) it can be stated out that modern technical advancement helps to create the
largest impact over the business productivity and this also supports to provide highest quality
service. Therefore, digital transformation requires the enterprise to look on the data in differently
way. Also, digitalisation approach also brings more challenges to the leaders. Digital
transformation approach is the kind of transversal process that affects the whole business world.
In order to remain competitive within the ever changing market digital allows creation of digital
enterprise so that all things can be done effectively.
The importance of understanding leadership models and techniques are increasing due to
the diversity, complexities and rapid changes within the enterprise. Therefore, the leader is the
one who work as to select, trains, influence the followers to perform business activities more
effectively and efficiently. Henceforth, the traditional leadership models inclusive of trait model
and behavioural model. Thus, the main feature of the traditional leadership model is to stress on
supervisory control over the employees. Therefore, the trait leadership model defined an great
man theory that aids to understand the personal characteristics of an individual.
As per the view of Dery, Sebastian and van der Meulen (2017) stated that it is crucial to
find out the innate qualities and capabilities of employees. On the other hand the fundamental
principle of trait is to be a good leader that can direct the employee to work as per their
capabilities. On the other hand, behaviour leadership model have three kind of styles and that are
as autocratic, democratic and laissez faire. In addition to it, this is identified that autocratic style
of leadership needs to keep all decision making and other authorities to themselves and followers
just do what they ask to do. On the other hand, democratic style of leadership work as to
encourage people to have group participation and to perform the organisation function within
collaborate manner. Therefore, laissez faire style of leadership allows leader to give maximum
level of authority to the followers and also tends to less involved to the workers. Therefore, it has
been find out the effective leadership approach is of democratic in behaviour style. Moreover,
situation leadership model is another traditional approach that works as to handle the situation so
that all things can be carried out effectively. This allows followers to set the high but attainable
task in relation to good and willingness to accept the responsibility. Henceforth, the emergent
model of the leadership turned up due to the rapid enhancement of complexity, technological
advancement and enhancement in demand for better and flexible firms. It enables leaders to

make more effective decision so that each thing within the enterprise goes with the better and
effective flow.
Thus, digital leadership also plays dynamic role in bringing effective performance of the
leaders. Therefore, the modern workplace is changing as this allows business to have innovative
solution on the factor as challenging economic environment and other factor that bring
complexity in working. Thus, Bolte, Dehmer and NIEMANN, (2018) stated that the number of
entities takes initiatives to try over differed approaches that can help to enhance productivity,
engage workers and allows encouraging growth. Hence, the traditional leadership approaches of
top down management are slowly sifting towards collaborative and digital approaches and this
blurs the line between boss and worker. If the firm more adopt the culture of innovation with
new approach of leadership then workplace can have more positive environment and this can
lead to enhance the productivity and profitability.
Therefore, it can be stated out that leadership is one of the driving force that aids to bring
success to the individuals. Thus, successful digital leader must be clear about the technology so
that all efforts can be taken in the right direction. It is true to stated that leadership today act as
balancing act that requires the unique set of skills that allows driving business successfully.
Henceforth, the digital leadership is very helpful in order to bring effective communication
within the individuals of the workplace. Also, Zeike, Bradbury and Pfaff, (2019) stated that
communication is one of the terms that drivers leadership and also helps management to connect
with employee more effectively. This empowers the staff and learns to stay over the current and
focused issues. Digital leaders work as to unite the enterprise and perform towards to undergo
successful transformation. Therefore, digital transformation helps to bring major changes within
the enterprise. As per the view Brett, (2019) stated out that digital leadership not only gives
leader to have clear vision but it also allows to implement the changes and to perform the all
business functions effectively.
As per the view of Petry, (2016) stated out that key to innovation for leaders is to put
abreast of developments within the digital sphere and also ensures the workforce culture
effectively. It values the innovation and brings better and effective performance within the
enterprise. As per the view of Kreutzer, Neugebauer and Pattloch, (2017) stated out that digital
leaders needs to create harmony between the technology and people in order to make balance so
that business activities can be driven more successfully.

Hence, it can be concluded that digital leadership is far better than the traditional
approaches of leaders as it provides the clear vision and direction to perform the organisational
activities.
For example- Car vendors Tesla have worked hard to build the better price of hardware. In
order to introduce digital leadership, they have built stronger engines, car design and that piled
on comforts. Also, they have integrated software into the fuel sensors, cruise control, back up
collision braking system etc. Henceforth, this is essentially one time innovation that burned into
the car at production time.
Description on how digital leadership can impact organisational success that support the
recommendation.
The digital revolution has widely affected the leadership skills and behaviours in order to carry
out better working performance. This is term that requires to effectively addressing the changes
in organisation structure. Henceforth, the absence of effective leadership can bring the negative
impact on organisation ability and allows retaining top talent. Therefore, it can be stated out that
innovative digital leaders are very challenging and they works as to identify the complexities and
take corrective actions towards it. Therefore, it can be stated that digital transformation is the
process of changing environment that operates consequence of developments in the digital era.
Therefore, this transformation may affect the each part of the firm value chain and business
function. Digital communication makes the simpler to take feedback of the organisation work
quickly (Kane, Palmer and Buckley, 2017). In this, leader has ability to communicate with the
entire organisation and perform the business function more effectively and efficiently. Technical
advancement like enterprise social network makes easier for firm to take better and effective
decision. To bring the innovative approaches within the enterprise this is crucial to be open on
the new ideas and test theories so that it can able to develop relationship with others. Digital
technology derives the changing and exponential innovation across all over the industry. It aids
to bring faster and effective working within the enterprise (Kane, Palmer and Buckley, 2017).
Thus, all process relates to work can be digitalised and it could have better impact on the
working of the enterprise. Technological innovation may bring out the major potential benefits to
the workplace and all things can be carried out in effective manner. To get the continual success
and higher competitive advantage that it is crucial to bring digitalised performance.

Recommendations towards digital leadership are as-
 The entities should have bring digital transformation as it supports enterprise to have
elimination in the bottlenecks that remain within the current process and may also harm
the efficiency to get flexible changes with the changing demand of current environment.
 Digital leadership streamlines the operations of the enterprise and it also bring better and
effective growth to the enterprise.
 Digital transformation aids to enhance customer satisfaction as this provides more better
and effective services to the customer. Therefore, the entity must have adopt digital
leadership strategy so that sustainable growth of the entity remains the same.
 Digitalisation is the approaches that also are beneficial to bring continue improvement in
the performance of the enterprise. This also has one benefited aspect that it aids to have
reduction in the risk and allows firm to perform more better and improved business
functions.
CONCLUSION
From the above report it can be concluded that digital leadership defined as strategic use of
Company that aids to achieve business goals. It addresses the organisation and individual goals.
The present report is based on business activities of digital leadership and how it aids to promote
technological innovation so that all things can conduct effectively.
Therefore, report assignment has covered the various activities as challenges and opportunities to
leader towards adaption of digital leadership. This also has laid focus on traditional leadership
approaches and digital leadership approach so that effective strategy can be taken. Lastly, report
has defined the impact of digital leadership on the success of enterprise.

REFERENCES
Books and Journals
Sheninger, E., 2019. Digital leadership: Changing paradigms for changing times. Corwin Press.
Zeike, S., Bradbury, K and Pfaff, H., 2019. Digital Leadership Skills and Associations with
Psychological Well-Being. International Journal of Environmental Research and Public
Health, 16(14), p.2628.
Petry, T., 2018. Digital leadership. In Knowledge Management in Digital Change (pp. 209-218).
Springer, Cham.
Auvinen, T and Luoma-aho, V., 2019. Evolution of strategy narration and leadership work in the
digital era. Leadership, 15(2), pp.205-225.
Auvinen, T., and et.al., 2019. Evolution of strategy narration and leadership work in the digital
era. Leadership. 15(2). pp.205-225.
Wagner, D.J., 2018. Digital Leadership (pp. 36-47). Wiesbaden: Springer Fachmedien
Wiesbaden.
Brett, J., 2019. The Evolution of Digital Leadership. In Evolving Digital Leadership (pp. 63-74).
Apress, Berkeley, CA.
Petry, T. ed., 2016. Digital Leadership: Erfolgreiches Führen in Zeiten der Digital Economy.
Haufe-Lexware.
Kreutzer, R.T., Neugebauer, T. and Pattloch, A., 2017. Digital business leadership. Digital
Transformation–Geschäftsmodell-Innovation–agile Organisation–Change-Management.
Zeike, S., Bradbury, K., Lindert, L. and Pfaff, H., 2019. Digital Leadership Skills and
Associations with Psychological Well-Being. International Journal of Environmental
Research and Public Health. 16(14). p.2628.
Bolte, S., Dehmer, J. and NIEMANN, J., 2018. DIGITAL LEADERSHIP 4.0. ACTA
TECHNICA NAPOCENSIS-Series: APPLIED MATHEMATICS, MECHANICS, and
ENGINEERING. 61(4).
Dery, K., Sebastian, I.M. and van der Meulen, N., 2017. The Digital Workplace is Key to Digital
Innovation. MIS Quarterly Executive. 16(2).
Kane, G.C., Palmer, D., and Buckley, N., 2017. Achieving digital maturity. MIT Sloan
Management Review. 59(1).
Sheninger, E., 2019. Digital leadership: Changing paradigms for changing times. Corwin Press.
Zeike, S., Bradbury, K and Pfaff, H., 2019. Digital Leadership Skills and Associations with
Psychological Well-Being. International Journal of Environmental Research and Public
Health, 16(14), p.2628.
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