Digitizing your business strategy is a multiyear, multidimensional challenge. Traditionally, firms approach such a wholesale change as a big-bang transformation program, but the reality is that too many of these large-scale change programs fail. Digital business executives must champion a new tactic — one that delivers an adaptable, iterative approach to transformational change that can flex to accommodate the ever-shifting customer and competitive landscape. This document outlines the major phases of digital transformation. This is an update of a previously published report; Forrester reviews and updates it periodically for continued relevance and accuracy.