Digital transformation is no longer news, it's a necessity. Despite the widespread threat of disruption, many large companies in traditional industries have succeeded at digitizing their businesses in truly transformative ways. The New York Times, formerly a bastion of traditional media, has created a thriving digital product behind a carefully designed paywall. Best Buy has transformed its business in the face of Amazon's threat. John Deere has formed a data-analysis arm to complement its farm-equipment business. And Goldman Sachs and many others are using digital technologies to reimagine their businesses. In Driving Digital Strategy, Harvard Business School professor Sunil Gupta provides an actionable framework for following their lead. The second section-comprising chapters 4 through 6-discusses reevaluating your value chain, especially now that new models of R&D and innovation have emerged. Chapter 4 describes why and when open innovation works, how you should design open innovation in your organization, and what prevents organizations from being successful with this new approach.