Digital business transformation involves incorporating various digital tools into an organization's processes to add value. In line with this article's objectives, key aspects of digital leadership and transformation include strategic approaches, challenges, and success factors. This article comprises a systematic review of 64 peer-reviewed articles, empirical articles, and seminal papers published over the last 20 years. The findings highlight digital leaders' lack of critical competencies, the centrality of data-driven decision-making, and the ethical issues surrounding digital change. Real-life examples from different fields illustrate good practices, organizational change management, and effective strategies, showing that approaches can vary while remaining innovative. Finally, the paper provides a detailed list of research implications and practical recommendations for applying the developed theory in various organizational settings.