Digital transformation is widely affecting various industries particularly healthcare, telecommunications, automotive, banking and manufacturing sectors. It enables innovation practices, improved designs, and new business models, and shapes how organizations create value on the Internet [9]. Companies can leverage robust customer relationships and increase cross selling opportunities through successful digital transformation [26], [28]. Digital transformation is not solely about acquiring and deploying the fit for purpose technologies; rather it is a significant approach in tackling managerial issues such as human resources, business efficiency, and business process redesign [17]. According to Hess [11], digital transformation has become a high priority on the leadership agenda of many organizations. Almost 70% of reported organizational transformation practices fail to meet organizations ambitions, the timeline for the transformation, or both [13], emphasizing the importance of the need for more research in this field. However, while the term digital transformation is increasingly being used in the electronic commerce research and practice, it has rarely been defined in the extant literature and professional articles. Thus, the first objective of this study is to review current understanding of this notion in the extant literature, and to explore what digital transformation entails.