Many researchers, managers, and companies are currently dealing with digital transformation. Yet, there exists a research gap on the exact meaning and scope of this transformation. In this paper, an in-depth literature study was performed and synthesized to inductively construct a conceptual framework that reconciles the distinct definitions and aspects of digital transformation. From the framework, we derived a novel and comprehensive definition of digital transformation which was validated against the literature and shown to be exhaustive. Furthermore, our definition explicitly explains why digital transformation is happening and accelerating. Researchers and practitioners can use the framework to position their work and to gain a better understanding of its wide scope and impacts. This work can be among the first steps towards a unified understanding of digital transformation.