Angela Ahrendts may be CEO of Burberry, but one of her favorite accessories is an Apple iPhone5 that she's used to oversee a mobile makeover at the 150-year-old company best known for trenchcoats and tartan plaids.

"This is the biggest flagship store in the world," Ahrendts says, holding up her iPhone during an interview in Chicago where Burberry just last month opened a new store. The Michigan Avenue site immerses customers in all things digital — from iPads for children to play with to video screens streaming Burberry fashion shows.

Burberry has long stuck to its English roots, giving its look from time to time modern tweaks, but it's been Ahrendts and chief creative officer Christopher Bailey in the past few years who have pushed the brand's digital, and now mobile, boundaries.

"It's very easy to allow an iconic brand to remain true to its heritage and at the same time obsolete itself," says Marshal Cohen, chief retail industry analyst with market research firm The NPD Group. "The hard thing to do is keep the iconic brand relevant. This is about somebody at the helm deciding they're going to find a way to keep the brand relevant for the future."

Burberry has done that by making moves that it says attract a millennial consumer. That includes monthly updates at Burberry.com, where Ahrendts said more people visit every week than walk into all the brand's stores around the world combined.

The company has an internal social network called Burberry chat. And since Ahrendts started in 2006 she started hiring a team of "digital natives" with titles like mobile director and music director. The brand also has a strategic innovation council.

While some efforts were underway when she took the helm, Ahrendts says Burberry was "a manual spreadsheet organization" at the time.

"We just kept evolving the structure," she says. "We always said if we were going to target a millennial consumer then we had to do it in their mother tongue, which is digital."

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