Managers struggle to understand what digital transformation actually means for them in terms of which opportunities to pursue and which initiatives to prioritize. It’s not surprising that many of them expect it to involve a radical disruption of the business, huge new investments in technology, a complete switch from physical to virtual channels, and the acquisition of tech start-ups. To be sure, in some cases such a paradigm shift is involved. But the authors’ research and work suggest that wholesale disruption is often quite unnecessary. Some companies have successfully responded to the digital challenge by making major changes to their manufacturing processes, distribution channels, or business models, but many others have fared equally well using a more incremental approach that leaves the core value proposition and supply chain essentially unchanged.