An Analytical Framework for Digital Strategy Focusing on Innovation and Digital Value Creation

Abstract

As a result of the Covid pandemic, many organizations realized they needed to create or update their digital strategies. However, it was not clear what they needed to include. This article examines how digital strategy can be analyzed and what a digital strategy could contain.Literature was reviewed to examine articles on digital strategy and the related topics digital business strategy, digital transformation strategy, and digitalization strategy. It was considered how the articles relate to these topics and some inconsistencies were observed.The results of the literature review contribute to an analytical framework useful for evaluating digital strategies. It can also be used as a map for organizations in the process of developing digital strategies.An evaluation is made on the role of technology in the resulting framework. Specifically, the areas innovation and digital value creation are discussed. An extension to the analytical framework is presented that covers these areas with more detail. Four types of digital value creation mechanisms, and four types of innovation, are introduced to facilitate the evaluation.