Abstract

To master the challenges of a digital transformation and to systematically address IT’s multifaceted transformative impacts on an organization’s inner and outer environments, top management is increasingly formulating and implementing a digital transformation strategy (DTS). To date, there have been few details of DTS formation concerning its underlying processes and activities. In this study, an interpretive case study approach is employed and DTS formation is investigated from a process/activity perspective. By using an activity-based process model that builds on IS strategizing, an in-depth case study at a large financial services provider was conducted. The results show that this DTS was predominantly shaped by a diversity of emergent strategizing activities through a bottom-up process and prior to the introduction of a holistic approach by top management. Top management then sought to formalize emergent strategy contents by formulating and implementing a DTS that comprised a shared target picture, distinct digital transformation governance, and measures to increase the share of deliberate strategy contents. Besides providing practical implications for DTS formulation and implementation, this study contributes to the literature on digital transformation, IS strategy, and IS strategizing.

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