Glenn Engler, EY-Parthenon Global Digital Leader and EY Americas Strategy and Transactions Digital Strategy Leader discusses how and where digital competence can be incorporated into the diligence process and manifested in a PE firm or portfolio company’s business strategy. Visit ey.com to read our latest private equity perspectives. The word “digital” can be interpreted in a multitude of ways, but it’s important for PE firms and CEOs to start with a broad view regardless of industry or competency in the context of a deal. Because digital impacts every aspect of a business, digital strategy should be owned by the CEO, not siloed into individual functional areas such as marketing or technology. PE firms, whether considering investment decisions, operational improvements or driving growth, must inject digital competence throughout the diligence process and business strategy to fully understand the value in both the target landscape and company DNA.     Key takeaways Digital touches every aspect of a PE firm or portfolio company, so the CEO should own a digital strategy inspired by the needs of the business and customer. Digital competence is critical in understanding a target’s value and must be woven throughout the diligence process. PE firms must look holistically and more upstream where PE, VC and corporate dollars flow to understand where value is created in the target landscape. PE firms can explore digital in driving operational expertise and growth in portfolio companies with intelligent automation, digitizing supply chains, cloud, omnichannel/ecommerce, "frictionless" customer experience and new revenue models.