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During comprehensive digital transformation processes, companies initiate digital innovation projects (DIPs) to realize substantial changes to their value creation. These DIPs require dedicated practices to evaluate their effective value contribution. However, established evaluation methods often do not meet the specific requirements of DIPs and suitable, adapted methods are not yet available. This leads to a lack of transparency, the risk of realizing the wrong DIPs, and a loss of effective control options. To tackle this issue, we develop a method for evaluating DIPs in the context of an automotive manufacturer's information technology (IT) innovation unit by following the design science research methodology. We contribute to information systems (IS) research by demonstrating how one can design evaluation practices for DIPs and how one can assess diverse value contributions of these projects. Furthermore, we offer an adaptable method to practitioners who face the challenge of evaluating DIPs in their organization.



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