Digital transformation for established firms involves rethinking existing business strategies and the key drivers of success. This chapter provides an understanding of digital transformation strategy and considers a number of key issues including the link with business strategy, the influence of digital technologies on disruption in the business environment, and the importance of digital resources and capabilities. A digital transformation strategy framework is outlined which presents a typology of digital transformation strategies based on the level of disruption in the business environment and the strength of a firm’s digital resources and capabilities. The framework reduces the complexity of issues involved, and at the same time offers managers a practical framework for identifying, analysing and implementing an appropriate digital transformation strategy option.