Talking about this term might be very difficult (especially for most of the illiterates) since it is relatively new for many of the people in the world. However, the impact of computers, technology use and internet in today’s world has become a key part of every profession, business and families nowadays.  The digitalization has made more efficient and easy to conduct day-to-day business activities because it goes beyond basic computer skills and heads to maximize the investments already made in infrastructure, to ensure productivity and develop participation in the global digital society, protect and advance their interests to benefit from the digital economy. At home on the other hand, computers and technology are redefining lifestyle from music, movies to games, managing finances and using the Internet. Families of the XXI century now have the resources to learn about any topic they want, to communicate with people around the world, to join social networks to express their feelings or interest or to enjoy TV or radio programs from other countries among other advantages produced due to the use of digital technology.
Digital literacy, just as traditional literacy goes beyond comprehension to include the more complex skills of composition and analysis. It has to do with the technical skills and fluency needed to engage with computers and the Internet, including the ability to use computer programs such as word processors, web browsers, email, and other communication tools. It also includes a deeper understanding, knowledge to use as well as the ability to deal with digital tools such as:  
·         Digital media software applications.

·         Hardware devices in a computer.

·         Digital appliances or resources at a workplace.

·         Mobile phones.

·         Internet technology.

·         Digital media content.

Along with these sayings, a digitally literate person has the ability to comprehend, contextualize and evaluate digital media, to understand how digital media content and applications can manipulate our perceptions, beliefs or feelings about the world. And furthermore, a digitally well-educated person has also the ability to create content and effectively communicate using a variety of digital media tools, adapt communication to various contexts and audiences, create and communicate using rich media such as images, video, and sound.
To end up, we can state that the digitally-literated person has the ability to engage with Web 2.0 tool such as blogs and discussion forums, video and photo sharing, social gaming, and other forms of social media. This concept also recognizes that being literate in a digital world entails not just technological proficiency, but also a wide variety of ethical, social, and reflective practices that are embedded in work, learning, leisure, and daily life.

Summed from: http://www.media-awareness.ca/english/corporate/media_kit/digital_literacy_paper_pdf/digitalliteracypaper_part1.pdf and http://www.mass.gov/Elwd/docs/executive_office/Digital_Literacy_Spanish.pdf