Given the noticeable and quick progress of digitalization it is well accepted that digital practices are changing business landscapes. However, while this concept is being labelled in the literature it is also often used indistinctively. To avoid misconceptions, we propose to clarify the concept by providing an overview of the existing theory. This research is one of the first attempts to define the “digitalization” term, and to make a distinction between similar ones. The authors have conducted a systematic review of the existing literature, by identifying and synthesizing the existing body of knowledge. While going digital, firms are expecting to enhance their competitive advantage by offering services throughout virtual channels and operationalize its operations management. Furthermore, the literature suggested the development of new digital technologies along with automation and artificial intelligence is enabling a new wave of smart companies, a topic that deserves to be studied in the future.