Title: Digital business strategy - The driver for change in internal and external business environment Authors: Sumera Magsi and Sarah Shaaban Advisor: Andrea Fried Master thesis, 30 credits Background:The effects resulting from a more intense use of digital technologies in companies is visible in the integration between business and IT strategies which creates an urge for digital business strategies to emerge. Thesis aim: The aim is to investigate the current state of digital business strategies which includes highlighting benefits and challenges. By doing that we also are aiming towards answering, in what way ITBA can be questioned due to DBS. Methodology: A qualitative research based on a multiple case study by conducting semi- structured interviews. All the selected case companies are using digital business strategies as a part of their internal and external business environment (IEBE). The respondents have a role in the chosen case companies of being responsible for the implementation and use of strategies, digital business strategies and digital technologies. Findings: This study identifies that their exits a linkage between business strategy and ITBA. The main finding about the current state of DBS involves both internal and external DBS activities. Further findings show that benefit of digital business strategy to be the opportunity to levering costumers and challenges to be connected to the different IT maturity levels of the employees. The way that digital business strategy can question ITBA is based on that it is the driver for change for the case companies.