The aim of this paper is to clarify the effects of digital transformation on educational institutions and to outline the challenges that arise and need to be addressed in this context. Teaching and learning processes should be continuously developed due to changes in educational requirements as well as social and technological changes. Therefore, within this paper, these technological changes are described in the first step. In the next step, the challenges facing higher education institutions, as a result of digital transformation are discussed, and strategies for the further development of higher education, regarding digital transformation, are described. In this context, a research study that focuses on the self-assessment of the digital competencies of students is outlined and the results are presented. The first results emphasize the need for further development in technology-supported teaching and learning processes at higher education institutions. The implementation of technology-supported teaching and learning settings and the rethinking of present teaching content is seen as both a challenge and an opportunity for preparing students – as well as lecturers – for digital transformation. With regard to the current COVID-19 situation, this is a challenge that must be met sooner rather than later.