Digital Transformation with a purpose: A method for aligning digital transformations with stakeholder values

Abstract

Introduction: As organizations pursue digital transformation (DT) to drive innovation and re- main competitive, many initiatives continue to prioritize technological efficiency over the val- ues of stakeholders. This misalignment often leads to resistance, fragmented implementation and short-term gains at the expense of strategic coherence. Although frameworks for value- based innovation exist, they are often limited in scope and application when applied in practice. There is a clear need for a method that enables the alignment of digital initiatives with stake- holder values to ensure meaningful, sustainable transformation. Methodology: This study adopts Wieringa’s Design Science Research, following a three-phase design cycle. The Problem Investigation phase includes a comprehensive literature review and a series of expert interviews to identify existing gaps in DT practices regarding stakeholder value alignment. The Treatment Design phase applies method engineering to synthesize theo- retical frameworks and empirical insights into a structured methodology. The Treatment Vali- dation phase uses practitioner focus groups to refine the method based on their input. Results: The research reveals that stakeholder values are the most critical and yet underutilized drivers in digital transformation efforts. The resulting methodology addresses this gap through a four-phase process: (1) stakeholder value identification, (2) stakeholder value mapping, (3) stakeholder value prioritization, and (4) stakeholder value implementation. These phases pro- vide a comprehensive and actionable approach for embedding stakeholder values into DT initi- atives, bridging the gap between abstract principles and real-world execution. Conclusion: The proposed value-driven digital transformation method enables organizations to systematically align transformation initiatives with stakeholder values through a structured, four-phase process. By guiding organizations from stakeholder need identification to value- based implementation, the method ensures continuous alignment, strategic coherence and stake- holder legitimacy. The approach supports more participatory, focused, and effective transfor- mation outcomes, delivering both internal alignment and broader societal impact.