Optimizing the business value of digital transformation by aligning technology with strategy, work practices and stakeholder interests

Digitalization remains an emerging area of business with many uncertainties of how to make it work. Many research gaps exist in analyzing how companies create coherence among many different facets of the business. Creating coherence is important as it adequately prepares an organization to better create business value in spite of industry disruptions that emerge from digital trends. In this theoretical paper, we present a conceptual model to analyze the connections of concepts and theories at the intersection of digital technology, business value, business strategy, work practices and stakeholder interests. The model also looks at the role of alignment in leveraging digital transformation initiatives. The aim of the model is to help determine how these interactions influence the value of digital transformation by measuring if the present business strategies are creating business value, if they help manage work practices. The model also reviews the extent to which the expectations of the stakeholders are realized. We propose business use design science to develop a technology-enabled digital tool that assesses and provides insight into the alignment of work practices, business strategy and stakeholder interests. This will provide a stepwise process to show how organizations can create coherence and leverage their digital capabilities.