The world is moving rapidly to a digital edge just within last three decades. Hence manufacturing and service industries have evolved from craftmanship to mass production and now cloud based industry. Lean philosophy was a western concept from Japanese automotive manufacturing process. In Japan it was called Toyota Production System and later was introduced as lean manufacturing to the western world. This research was to identify digitalization waste or “muda” that will be embedded in a digitalized business. The research was conducted by interviewing digital transformation employees in service and technology based companies in Malaysia. Twenty five digital transformation executives were interviewed by an open ended questions and the answers where coded into categories of traditional lean waste. It presented those data as digitalization waste that need to be addressed in any business transformation from classic business to digital business model. The author maintains the traditional Taichii Ohno seven waste as a framework for digital waste. This lean in digital will be a basic tool to ensure that all non value adding or non value creating activities will be eliminated or minimized. Thus, able to digitalize a business services with value for the customer, streamline value stream, seamless flow, only with customer pulled demand and continuously towards perfection.