Abstract: The potential for computers and information systems to deliver smart organizations has grown exponentially in the last decade. This potential and promise of smart organizations in the has been considered by policy makers for transforming schools into smart digital environments where data is used to make the best decision to improve student performance. Schools globally, just like other organizations are gathering massive amounts of data; although not all this data has been put into meaningful use, efforts have been directed towards dependency on the analysis of data in schools to drive the decision making. The benefits to the schools, brought about by these transformations in relation to their performance in various aspects have continuously magnified the critical importance of depending on data driven decision making for schools. However, challenges have constantly been highlighted by these institutions as they try to make this technological shift. Senior management in educational institutions has been considered an obstacle in accelerating the shift to knowledge driven decision making. This paper highlights the potential of transforming school management and decision making to smart-digital institutions. This is based on a review of existing literature especially in the areas of data capture, knowledge management and data mining in schools.