Digital Transformation" is shapeshifting the business world but there are a couple of questions, not the least, what the term exactly stands for and what it implies for companies. How can SMEs, representing almost 49% of revenues and 44% of gross value added in Austria, benefit from it? While large companies have the resources to invest, and small startups are positioned at the heart of digital transformation, SMEs seem to lack both: They have neither the financial and personal resources, nor the agility, to assess the chances and the necessities of digitalization. In this thesis, a common framework is established for Small and Medium Sized Enterprises to provide them with a way to strategically deal with the challenges of digitalization. The digital strategy framework presented is particularly suitable for SMEs. It addresses specifically the question of what a process needs to include to enable the implementation of the strategy afterwards. The framework describes the three-step process (digital reality, digital ambition, digital roadmap) along six relevant dimensions of digitalization. For each step, the relevant actions and results are described. The strategy framework also lists the relevant output of the process. It stresses the importance of easily understandable, visual aids (“digital roadmap”) to communicate the strategy (vision, goal, projects). The process and the related elements, as well as the relevant dimensions, where extracted and synthesized from existing frameworks and verified in expert interviews. The expert interviews give insights to questions not answered from the existing frameworks, in particular addressing the results of the strategy process in the form of defined projects and timelines. The digital strategy framework was then presented to four SMEs to validate its usefulness. The framework is of high practical value for any company that starts a digital transformation or needs to coordinate its digitalization initiatives. It is helpful for both SMEs and consultants as a guide in the strategy development.