Dealing with digital transformation has become a strategic imperative for firms across a range of business sectors. This chapter highlights the reality of digital transformation and differentiates between digital technologies and digital transformation. It provides an understanding of common digital technologies associated with digital transformation and how digital technologies drive scale and productivity. It highlights the transformational impact of digital technologies on customer experience, competition, operations and employee roles. An overview of the digital transformation concept is provided along with the challenges including resistance to change, resource constraints, ineffective technology infrastructures and pressures for localisation. The chapter then presents a framework for understanding digital transformation capabilities and outcomes at the process, product and business model levels.