Jiri Hnilica

Given a mismatch between traditional paths and the opportunities resulting from new digital technologies, the aim of this paper is to understand why companies’ digital transformation may fail even before it starts. We analyze interviews with 20[Formula: see text]C-level managers from 15 traditional DAX-listed German companies that face digital transformations. Our objective is to integrate the different areas that have been studied in the field of digital transformation. We offer top management teams standpoints, as they concern how business decisions, including digital-transformation decisions, are made. We review the role of top management in digital business model innovation and identify value creation, leadership challenges, and culture development as the main factors that support or hinder business model innovation in a digital world. We further show that taking outside-in perspectives, implementing cross-sectional strategies, and having transformational capabilities represent important drivers on business model innovation. Employees are the most important factor. They should be brought in and guided by top managers to support the digital transformation. The patterns we identify might provide guidance for top managers engaging in digital business model innovation.