Digital transformation strategy making in pre-digital organizations: The case of a financial services provider 
Journal of Strategic Information Systems
, 28
(1) , 17-33. 2019.
Author(s): Simon Chanias. Michael D. Myers. Thomas Hess.
Topics: Information systems strategy Digital transformation Digital leadership
Industry: Finance
Objective and main results
This article reports on a study of the processes of dynamic and emergent strategy making related to formulating and implementing a digital transformation strategy in a pre-digital financial services organization. A digital transformation strategy concerns the development and implementation of an organizational strategy that is formulated and executed by leveraging digital resources to create differential value.
Main findings:
- A digital transformation strategy is always in the making and needs to be continually revised and reworked by incorporating new learnings and insights from ongoing implementation efforts
- The development of a digital transformation strategy requires a mix of top-down and bottom-up strategizing. However, the results show that that bottom-up (i.e. informal) strategizing was a more productive source of digital transformation.
- New forms of governance are required for digital transformation
Summary of practical implications
Crafting of a digital transformation strategy is a highly dynamic process involving iterating between learning and doing. The authors therefore argue that an agile development approach building on “trial and error” is better than an analytical upfront planning process.
Digital transformation needs to be envisioned, championed, and guided from the top management. However, they must not be in full control in every respect. Top management needs to allow and encourage emergent bottom-up strategizing activities.
Digital transformation efforts can be hindered by internal politics if the work is based on existing organizational silos. To reduce such risks, organizations may need to implement new governance structures (units, roles and activities) that ensure both top management anchoring and support, and horizontal coordination across the business. A digital transformation strategy is business-oriented, customer-centric and involves the entire organization, and the authors therefore argue that the IT department, although being an essential stakeholder, not necessarily should take the leading role.