Hi Linda,
I have been in the embroidery business since 1995. Digitizing to me is the art of taking a graphic and turning it into stitches. I have taken photographs and created embroidery designs, so yes it can be done. There are several ways of accomplishing this: There is automatic digitizing and some programs have it. To do this you bring in the graphic. It can be a drawing, photograph, etc. By clicking on the graphic, your program creates an embroidery design. The program determines the type of stitch, for instance fill, satin, running, etc. It also determines the density (how thick the stitches are), the direction, etc. In some programs you can go into the design and make changes with your mouse, and it some programs you can't.
Another way to digitize is to use a program that allows you to make all the decisions on how your design is going to look. You choose the type of stitch, the fill, the density, the order in which it runs, etc. These objects are created using your mouse or similar device. This is what I use. I have had great success digitizing my own designs. I use a commercial program called WINGS eXPerience. It is commercially priced. But I am fairly certain, home embroidery machines have programs that are affordable. Try Bernina, Viking, Brother, etc.
Good luck,
Mona