There has been a sea change in industrial operations since the advent of the “smart factory” and “Industry 4.0.” To describe the “integration of digital technologies into business processes,” a term known as “digitalization” is employed. To take advantage of digitization, they need to digitally alter their current business models. To make digital transformation possible, digital technologies are being applied across functional, organizational, and geographical boundaries. The objective of this chapter is to establish a business model framework for firms who want to digitally transform their businesses, as well as the theories of digitization, digitalization, digital transformation, and business model innovation. This study will aid in developing new tools to assist companies in digitally transforming current elements of their business models.