Developing a digital strategy is a high-level activity focused on setting the organization's direction, vision, and approach to leveraging digital technology. It involves analyzing the environment, identifying opportunities, and assessing associated risks. While the strategy will guide technology choices, defining the specific systems that will form a technology programme is a more tactical activity. This detailed planning occurs during portfolio and programme management, which are the vehicles for executing the strategy, not developing it. The strategy defines the 'what' and 'why', while the programme defines the 'how' and 'with what'.

B. Understanding emerging technologies that could affect the organization: This is incorrect because environmental scanning, including analyzing technology trends, is a fundamental input for creating a relevant and forward-looking digital strategy.

C. Understanding how to identify potential opportunities: This is incorrect because the core purpose of a strategy is to identify and select the best opportunities to pursue to achieve the organization's vision and goals.

D. Understanding the risks involved with digital opportunities: This is incorrect because a sound strategy must include a thorough assessment of risks to ensure that the chosen path is viable and that potential negative impacts are managed.

1. AXELOS, ITIL® 4: Digital and IT Strategy (2020), Section 3.2.2, The strategy planning process: This section outlines the process of creating a strategy, which includes defining a vision, assessing the current state, and defining the target state. It states, "The strategy should be translated into a set of initiatives, which are managed as a portfolio." This confirms that defining specific systems for a programme (an initiative) is a post-strategy activity.

2. AXELOS, ITIL® 4: Digital and IT Strategy (2020), Section 2.3.2, The drivers of digital transformation: This section explicitly lists "New technology" as a key driver that must be understood when formulating a strategy, making option B an essential consideration.

3. AXELOS, ITIL® 4: Digital and IT Strategy (2020), Section 3.4.3, Managing risks in a digital organization: This section states, "A key part of any strategy is to understand and manage the risks that are associated with it." This directly supports the necessity of considering risks (option D) during strategy development.

4. AXELOS, ITIL® 4: Digital and IT Strategy (2020), Section 2.2.1, What is strategy?: This section defines strategy as a plan that involves "choosing what to do and what not to do," which inherently requires the identification and evaluation of opportunities (option C).