Digital transformation refers to the changes associated with the application of digital technology in all aspects of human society. Digital transformation may be thought as the third stage of embracing digital technologies: digital competence -> digital literacy

Digital literacy

Digital literacy is the ability to locate, organize, understand, evaluate, and analyze information using digital technology. It involves a working knowledge of current high-technology, and an understanding of how it can be used. Further, digital literacy involves a consciousness of the...

 -> digital transformation. The latter stage means that digital usages inherently enable new types of innovation and creativity in a particular domain, rather than simpy enhance and support the traditional methods.

In a narrower sense, "digital transformation" may refer to the concept of "going paperless".

Digital transformation affects both individual businesses and whole segments of the society, such as government, mass communications, art, or medicine.