Digital technology is any technology that stores, transmits or processes information as numbers. Those numbers are composed of Binary values (bits) to represent the information be it numbers, words, images, sound, or logic. Essentially the 'analog' data is captured as input from a key board, scanner, microphone, camera, etc. The captured data is broken down (encoded) into tiny pieces and each piece is assigned numbers that represent the properties of that piece and its relation to the other pieces. The numbers are stored or transmitted to other devices. Other devices read the numbers and reconstruct the whole. What gets reconstructed is an exact replica of the original encoding. 

All modern computer processors are digital. They are used in hundreds of devices that require precise control of function and behavior, automation or data storage: Computers, Cell Phones, Cameras, Cars, household appliances.

Digital technology can be very simple and need not be electronic. An indicator light: On means one thing, off means something else. This is binary digital computer with a storage of one bit. But mostly we consider technology to be digital when a computer processor is involved.
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