GUEST 2.0: empowering digital transformation strategy and innovation management

Abstract

This paper proposes GUEST 2.0, a unified methodology for articulating sustainability-aligned digital transformation strategies. It addresses the fragmentation between digital transformation and innovation management by identifying the core requirements of strategy formulation and linking them to actionable implementation. The study adopts a Design Science Research methodology, using iterative build–evaluate cycles to refine GUEST 2.0. The framework is derived from an extensive literature synthesis and validated through multiple applications, including a digital social innovation case (SINFONICA). The paper identifies strategic requirements, such as ambidexterity, flexibility, ecosystem value, ethical performance and holistic metrics, and embeds them into a five-step methodology. The case study demonstrates the framework's ability to support inclusive value definition, data-driven decision-making and iterative adaptation in complex digital innovation contexts. The paper offers a practitioner-ready methodology that operationalizes digital transformation strategy across organizational levels while integrating sustainability, uncertainty management and multi-actor collaboration. It advances the digital transformation–innovation management interface by providing theoretically grounded, actionable tools for strategizing while executing. The main contribution is a structured synthesis of the core elements and decision-making processes involved in strategizing digital transformation.