jats:sec <jats:title content-type="abstract-subheading">Purpose</jats:title> jats:pThe purpose of this paper is to discuss digital transformation and its four trajectories – digital technology, digital strategy, customer experience and data-driven business models – that could shape the next generation of services. This includes a discussion on whether both the market and organizations are all ready for the digital change and what are the opportunities that will enable firms to create and capture value though new business models.</jats:p> </jats:sec> jats:sec <jats:title content-type="abstract-subheading">Design/methodology/approach</jats:title> jats:pProviding services is a proven and effective way to secure a competitive position, deliver long-term stable revenues and open up new market opportunities. However, it is also clear that some organisations are struggling to digitally transform. Therefore, the commentary provides a brief insight into how firms explore the possibilities of digital transformation and navigate these uncharted waters.</jats:p> </jats:sec> jats:sec <jats:title content-type="abstract-subheading">Findings</jats:title> jats:pToday’s digital technologies affect the organisation outside and in, enabling the creation of new business models and transforming the customer experience. The incumbents are acutely aware that they need to transform strategically – to build new networks and value chains.</jats:p> </jats:sec> jats:sec <jats:title content-type="abstract-subheading">Originality/value</jats:title> jats:pThis commentary extends earlier work exploring the digital disruption within services to highlight a number of connected areas: the challenges and opportunities of digital transformation at a strategic level, as well as understanding and enhancing the customer experience and seeing how new data-driven business models can underpin service transformation.</jats:p> </jats:sec>