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The article examines the innovative development of an enterprise as a key factor in its long-term success and competitiveness in the context of digitalization and dynamic market changes. It identifies that modern trends in technological progress, globalization, increasing competition, and changes in the regulatory environment create new challenges and opportunities for businesses. A comprehensive adaptive approach to innovative development is proposed, based on the analysis of the interaction between external and internal factors, including the digitalization of internal processes and adaptation to external digital transitions. The study highlights major external factors such as economic conditions, technological changes, regulatory and legal constraints, sociocultural aspects, and the competitive environment, which are beyond the direct control of the enterprise but have a significant impact on its activities. Internal factors such as organizational culture, financial resources, intellectual capital, technological base, and management structure are identified as shaping the enterprise's potential for innovation. Among the external factors, economic conditions, technological changes, regulatory environment, sociocultural influences and competitive dynamics are allocated. Internal factors include organizational culture, financial resources, intellectual capital, managerial structure and technological base. Emphasis is placed on the need to develop effective mechanisms for monitoring the external environment, establishing strategic partnerships, and implementing innovative solutions to adapt to changes and enhance the enterprise's flexibility. A schematic model of interaction is presented, illustrating management mechanisms that enable effective responses to changing market conditions and support innovative activity. The article also emphasizes the importance of monitoring the external environment, forming strategic partnerships, and developing internal potential to ensure the competitiveness of the enterprise. Particular attention is paid to the integration of digital innovations at all levels of management to ensure the balanced development of the enterprise's functional areas. The role of motivational systems in supporting an innovative culture, staff development, and the implementation of technological innovations that enhance the enterprise's competitiveness is highlighted. The article underscores the significance of a comprehensive approach that combines external influences and internal capabilities to create conditions for sustainable growth and effective business process management.
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