Background: As the world is moving from an industrial to a digital one an increasingly important factor for companies has become their digital transformation. This, Industry 4.0, has brought forward a new set of challenges but conventional strategy-making has not been able to keep up with them, whilst considering that change, in practice, is difficult to implement. The strategy execution for digital transformation has therefore become increasingly important but the challenges faced has not been researched to a sufficient degree.

Research question: What are the main challenges with strategy execution during a digital transformation process and how can they be managed?

Purpose: The purpose of this thesis is to find and describe the main challenges with strategy execution for digital transformation that has been experienced and or perceived by practitioners working in companies that are a part of a concern. These findings will be conceptualised out of which guiding principles will be created and presented.   

Method: In this study a qualitative method has been used together with an abductive approach to reasoning. Semi-structured interviews have been performed with eight respondents chosen by a strategic selection for their knowledge about the studied field.

Theoretical frame of reference: Theories about strategy execution, change-management, what a digital transformation is, and how it evolves as well as the activity-based process model have been put forward. Within digital transformation some earlier seen challenges that has been a basis for this research are discussed.

Conclusions: An overall conclusion that can be drawn from the analysis is that the primary areas that have been looked at, i.e. strategy development; strategy execution and digital transformation, in themselves create challenges. Whether they are correlated with each other or would exist no matter the other factors cannot be discerned from the findings of this thesis, resulting in the fact that the results of the analysis while able to give a foundation and interpretive thoughts, are, in their nature, uncertain. This would mean that albeit an answer to the research question can be presented by the conceptualisation and guiding principles they should not be seen as general for any given population but rather as a description and analysis of the studied population.