Government organisations worldwide are adopting digital strategies to enhance service delivery, gain efficiencies and meet the evolving and growing expectations of business and society in a digital world. Yet, current academic literature fails to provide a framework for digital government strategy derivation to harness the benefits of recent digital advances. We employed the case study methodology to examine the way two government organisations approached digital strategy derivation. We propose an adapted, design-led innovation (DLI) framework to aid digital government strategy derivation, and explore its applicability by retrospectively mapping the activities undertaken by the case organisations in deriving a digital strategy to the adapted framework. Our study finds that public organisations may iterate through the quadrants in the adapted DLI framework to formulate a digital strategy, underpinned by a clear value proposition that is identified through reframing situations. This research will enrich e-government literature, and guide digital government strategy derivation.