A digital firm is a company in which almost all significant business relationships with customers, suppliers, and employees are digitally enabled or mediated. This means that all the procedures relating to core business processes are completed through the use of digital networks that cover the organisation as a whole. These networks also link the organisation to other business organisations and ultimately to the whole world.

A company is formally defined as a digital firm when it uses the internet to drive every aspect of its business processes. Through this the corporation achieves a shifting of how it actually does business and opens up for more business opportunities. This is done through the shifting of time and place where the business is conducted to the virtual world where the world is online 24/7.

Today many companies are working hard towards becoming defined as fully digital firms. The changes in the world of information technology have driven this tendency forward. Most of the large multinational companies today work hard towards achieving the level at which they can become fully digital firms. This is being done through close integration of information systems with how business is done with suppliers, clients and employees. Information technology systems, if properly designed to cater to the company’s needs can be the main driver towards establishing the fully digital firm.