Abstract: McKinsey research shows that established companies win by addressing digital strategy’s dual imperatives: building new digital businesses while digitizing legacy operations. Balancing the dual imperatives of digital can be difficult but exceptionally rewarding. According to respondents to a McKinsey survey on digital strategy, digitised incumbents—companies that are more than 20 percent digital and are launching new digital businesses while transforming the core—are twice as likely as traditional incumbents to experience organic revenue growth of 25 percent or higher (see sidebar, “The digital landscape”).