Why every company needs a Digital Transformation Strategy (DTS)

From individual measures to strategic management of change

In recent years, digital transformation has evolved from a stimulus for innovation to a business necessity. New technologies, changing customer expectations, regulatory requirements, and global crises are creating an environment in which the ability to act and the speed of adaptation are critical to success.

But digitalization without a strategic framework remains piecemeal. Many organizations invest in individual solutions—such as CRM systems, automation, or new communication platforms—without considering their long-term impact, scalability, or compatibility with their business model and corporate strategy.

A Digital Transformation Strategy (DTS) closes this gap. It's not an additional expense, but rather a central management task. And it's essential for companies of all industries and sizes.

Why a digital strategy is essential – seven key arguments

1.

Transformation needs direction

Without a strategic vision, there's a risk of pursuing digitalization in a purely reactive manner—driven by technology updates, market pressure, or stand-alone solutions. A DTS creates a shared understanding of where the company should develop and how digital transformation contributes to achieving these goals.

“A vision without a strategy remains an illusion.” – Lee Bolman & Terrence Deal

2.

Efficiency gains require systematic approach

Digital efficiency improvements—such as automation, self-service portals, or paperless processes—can only fully realize their potential when embedded in a comprehensive transformation plan . DTS prevents redundant investments and promotes synergy effects between projects.

3.

Customer behavior is changing radically

Today's customers expect consistent, intuitive, and personalized interactions across all channels. A DTS combines customer experience management, data analytics, and digital services into an integrated value creation system that opens up new customer channels and strengthens loyalty.

4.

Data becomes a strategic asset

Organizations are collecting more data than ever before – but often only use a fraction of it meaningfully. A Data Transformation Services (DTS) creates the organizational, technical, and legal prerequisites for using data strategically – for innovation, process optimization, and better decision-making.

5.

Organization and culture must grow

Digitalization is not only changing technology, but also the way we work. A DTS considers change management, skill development, leadership development, and cultural dynamics – thus placing people at the heart of the transformation .

6.

Security, governance and compliance are non-negotiable

Regulatory requirements (e.g., GDPR, NIS2, CSRD) and growing threats from cyberattacks require a strategic approach to IT security, data protection, and information security . DTS integrates these aspects from the outset—not just during implementation.

7.

Transformation is a permanent state – not a project

Digital transformation doesn't end with the go-live of a system. It's a continuous change process that requires strategic management, feedback loops, monitoring, and agile adaptation. A DTS ensures that this process remains structured, measurable, and effective.

Lack of digital strategy: The costs of inaction

A missing or weak digital strategy leads to numerous risks:

• Project islands without networking

• Technological wild growth

• Lost investments

• Missed scaling effects

• Unclear responsibilities

• Overburdening employees

• Reputational risks due to data protection or security incidents

Studies show that companies with a clear digital strategy are more successful than average in digital markets (see Kane et al., 2015; Westerman et al., 2014).

The role of the CIO in strategic change

This is a special responsibility for CIOs – and at the same time an opportunity to position themselves on an equal footing with management:

• From IT manager to transformation architect

• From cost manager to value creation partner

• From technology implementer to strategic sparring partner

A sound DTS is the central control tool with which CIOs can convince and lead internal and external stakeholders alike.

Conclusion: DTS as a strategic necessity

The question is no longer whether companies will digitally transform—but how strategically they design this process . A digital transformation strategy is not a "nice to have," but an essential management tool that creates clarity, sets priorities, and enables the future.

Those who only act operationally with digital technology lose. Those who transform strategically gain relevance, resilience, and impact.

References

• Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading Digital: Turning Technology into Business Transformation . Harvard Business Review Press.

• Kane, G.C., Palmer, D., Nguyen Phillips, A., Kiron, D., & Buckley, N. (2015). Strategy, Not Technology, Drives Digital Transformation . MIT Sloan Management Review.

• Hess, T., Matt, C., Benlian, A., & Wiesböck, F. (2016). Options for formulating a digital transformation strategy . MIS Quarterly Executive, 15(2), 123-139.

• Weill, P., & Woerner, S.L. (2018). What's Your Digital Business Model? Harvard Business Review Press.

• Capgemini Research Institute (2021). The Digital Strategy Gap: Executive Perspectives on Digital Transformation .